We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Taylor Devices Q2 Earnings Soar Y/Y on Aerospace Demand
Read MoreHide Full Article
Shares of Taylor Devices, Inc. (TAYD - Free Report) have gained 7.2% since the company reported its earnings for the quarter ended Nov. 30, 2025. This compares to the S&P 500 index’s 0.5% growth over the same time frame. Over the past month, the stock has increased 39.3% compared with the S&P 500’s 0.2% growth, reflecting significant investor optimism and outperformance against the broader market.
For the fiscal second quarter, Taylor Devices reported earnings of 64 cents per share compared to 34 cents per share in the prior-year quarter.
Net sales of $11.6 million represented a 36% increase over the $8.5 million posted in the year-ago period.
Net income nearly doubled, rising 90% to $2 million from $1.1 million. Gross profit for the quarter reached $5.5 million, up from $3.9 million a year earlier, as gross margin expanded to 47% from 45%.
Taylor Devices, Inc. Price, Consensus and EPS Surprise
The sharp rise in quarterly revenues was primarily driven by a significant increase in short-duration, non-long-term projects, which recorded a 91% year-over-year revenue boost. Long-term project revenues also rose, albeit more modestly, by 7%. The company managed 25 long-term projects during the quarter, up from 22 in the prior-year period. Geographically, domestic sales surged 45%, while international sales declined 30%, a shift management attributes to normal fluctuations in structural project activity. Sector performance showed strength in aerospace/defense, where sales jumped 58%, and in industrial customers, where sales rose 29%.
Customer composition shifted further toward aerospace/defense, which accounted for 69% of sales in the quarter, up from 59% a year ago. Structural sales comprised 21%, while industrial customers made up the remaining 10%. The timing of backlog conversion to revenue played a critical role in driving quarterly performance. Total backlog at the end of the quarter was $25.1 million across 134 open sales orders, down from $34.5 million a year earlier.
Expense Trends and Operating Performance
Research and development (R&D) spending rose sharply in the quarter, totaling $0.2 million, up 108% from $0.1 million a year ago. This increase brought R&D expenses to 1.8% of quarterly net revenues compared to 1.2% in the prior-year quarter.
Selling, general and administrative (SG&A) expenses for the quarter amounted to $3 million, a 6% increase year over year. Despite the dollar increase, SG&A expenses declined as a percentage of revenue to 26%, from 33% in the year-ago quarter, reflecting improved operating leverage. Stock-based compensation costs contributed to the increase, with $0.8 million in recognized expense for 47,850 options granted, compared to $0.7 million for 46,800 options granted in the prior-year period.
Operating income doubled to $2.2 million, up from $0.9 million in the same period a year ago. The increase was driven by higher revenue and improved gross margins. Other income also contributed positively, rising 38% year over year to $0.4 million, mainly due to interest income on short-term investments. The company’s effective tax provision for the quarter increased to $0.6 million, reflecting higher pre-tax income.
Management Commentary
Management highlighted that the quarterly gains stemmed from a favorable conversion of backlog into revenues, particularly for short-term projects. While the company benefited from increased sales across most customer segments, the decline in international sales underscores the natural variability in demand across regions. Management noted that fluctuations in backlog, revenue, and income are typical and not necessarily indicative of future performance.
The company continues to invest in its operations, as evidenced by $1.5 million in capital expenditures during the six-month period. Looking ahead, Taylor Devices has committed to an additional $1.7 million in capital expenditures over the next twelve months, which management views as part of its broader strategy to expand manufacturing capacity.
Factors Impacting Financial Results
Several dynamics influenced the company’s headline numbers. The growth in short-duration project revenues provided a temporary lift, while the mix of customer segments tilted more heavily toward aerospace/defense. Gross margins benefited from this mix shift and stronger domestic sales, while SG&A efficiencies also contributed to improved profitability. The backlog declined, reflecting the company’s successful conversion of projects, but may require replenishment to sustain growth. The number of average days’ sales outstanding in accounts receivable rose from 32 to 40 days, suggesting a modest lengthening of the cash conversion cycle.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Taylor Devices Q2 Earnings Soar Y/Y on Aerospace Demand
Shares of Taylor Devices, Inc. (TAYD - Free Report) have gained 7.2% since the company reported its earnings for the quarter ended Nov. 30, 2025. This compares to the S&P 500 index’s 0.5% growth over the same time frame. Over the past month, the stock has increased 39.3% compared with the S&P 500’s 0.2% growth, reflecting significant investor optimism and outperformance against the broader market.
For the fiscal second quarter, Taylor Devices reported earnings of 64 cents per share compared to 34 cents per share in the prior-year quarter.
Net sales of $11.6 million represented a 36% increase over the $8.5 million posted in the year-ago period.
Net income nearly doubled, rising 90% to $2 million from $1.1 million. Gross profit for the quarter reached $5.5 million, up from $3.9 million a year earlier, as gross margin expanded to 47% from 45%.
Taylor Devices, Inc. Price, Consensus and EPS Surprise
Taylor Devices, Inc. price-consensus-eps-surprise-chart | Taylor Devices, Inc. Quote
Revenue Drivers and Customer Segments
The sharp rise in quarterly revenues was primarily driven by a significant increase in short-duration, non-long-term projects, which recorded a 91% year-over-year revenue boost. Long-term project revenues also rose, albeit more modestly, by 7%. The company managed 25 long-term projects during the quarter, up from 22 in the prior-year period. Geographically, domestic sales surged 45%, while international sales declined 30%, a shift management attributes to normal fluctuations in structural project activity. Sector performance showed strength in aerospace/defense, where sales jumped 58%, and in industrial customers, where sales rose 29%.
Customer composition shifted further toward aerospace/defense, which accounted for 69% of sales in the quarter, up from 59% a year ago. Structural sales comprised 21%, while industrial customers made up the remaining 10%. The timing of backlog conversion to revenue played a critical role in driving quarterly performance. Total backlog at the end of the quarter was $25.1 million across 134 open sales orders, down from $34.5 million a year earlier.
Expense Trends and Operating Performance
Research and development (R&D) spending rose sharply in the quarter, totaling $0.2 million, up 108% from $0.1 million a year ago. This increase brought R&D expenses to 1.8% of quarterly net revenues compared to 1.2% in the prior-year quarter.
Selling, general and administrative (SG&A) expenses for the quarter amounted to $3 million, a 6% increase year over year. Despite the dollar increase, SG&A expenses declined as a percentage of revenue to 26%, from 33% in the year-ago quarter, reflecting improved operating leverage. Stock-based compensation costs contributed to the increase, with $0.8 million in recognized expense for 47,850 options granted, compared to $0.7 million for 46,800 options granted in the prior-year period.
Operating income doubled to $2.2 million, up from $0.9 million in the same period a year ago. The increase was driven by higher revenue and improved gross margins. Other income also contributed positively, rising 38% year over year to $0.4 million, mainly due to interest income on short-term investments. The company’s effective tax provision for the quarter increased to $0.6 million, reflecting higher pre-tax income.
Management Commentary
Management highlighted that the quarterly gains stemmed from a favorable conversion of backlog into revenues, particularly for short-term projects. While the company benefited from increased sales across most customer segments, the decline in international sales underscores the natural variability in demand across regions. Management noted that fluctuations in backlog, revenue, and income are typical and not necessarily indicative of future performance.
The company continues to invest in its operations, as evidenced by $1.5 million in capital expenditures during the six-month period. Looking ahead, Taylor Devices has committed to an additional $1.7 million in capital expenditures over the next twelve months, which management views as part of its broader strategy to expand manufacturing capacity.
Factors Impacting Financial Results
Several dynamics influenced the company’s headline numbers. The growth in short-duration project revenues provided a temporary lift, while the mix of customer segments tilted more heavily toward aerospace/defense. Gross margins benefited from this mix shift and stronger domestic sales, while SG&A efficiencies also contributed to improved profitability. The backlog declined, reflecting the company’s successful conversion of projects, but may require replenishment to sustain growth. The number of average days’ sales outstanding in accounts receivable rose from 32 to 40 days, suggesting a modest lengthening of the cash conversion cycle.