EPS of $0.70 increased by 18.6% from previous year
Net income of 2.19M
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Taylor Devices Inc (TAYD) QQ1 2026 Results Analysis — Industrial Machinery Leader with Solid Liquidity and Profitability
Executive Summary
Taylor Devices Inc (TAYD) reported QQ1 2026 results with notable profitability and a strong liquidity position, underpinned by a net cash balance and substantial short-term investments. Net income of $2.19 million and EBITDA of $2.25 million were achieved against a backdrop of incomplete revenue disclosure for the quarter. Management delivered a sizable gross profit of $4.44 million, supported by disciplined operating expenses (R&D $80.8k; SG&A $2.11 million; total operating expenses $2.19 million) and a positive contribution from other income of $383.8k, culminating in pre-tax income of $2.63 million and after-tax net income of $2.19 million (EPS $0.70). YoY comparisons in the included earnings metrics indicate a decline in gross profit (-24.65% YoY) and a softer operating profit (-10.65% YoY), while net income fell modestly (-11.43% YoY) but showed QoQ improvements (+9.38% QoQ) and EPS rose (+18.64% YoY; +9.37% QoQ). The balance sheet demonstrates a robust position: total assets of $68.53 million, equity of $64.25 million, and net cash of approximately $2.15 million, supported by cash and short-term investments totaling about $36.30 million. The company ended the period with strong liquidity (current ratio and quick ratio both exceptionally high given disclosed current assets of ~$55.63 million against current liabilities of ~$6.04 million). The absence of disclosed revenue for the quarter constrains margin interpretation, but the reported EBITDA and net income indicate solid earnings quality on a cash-generative basis. Investors should watch for revenue growth momentum, margin trajectory, and any explicit guidance from management in subsequent filings or calls. USD is the reporting currency for all figures.
Key Performance Indicators
Operating Income
2.25M
QoQ: 11.17% | YoY:-10.65%
Net Income
2.19M
QoQ: 9.38% | YoY:-11.43%
EPS
0.70
QoQ: 9.37% | YoY:18.64%
Revenue Trend
Margin Analysis
Key Insights
Gross Profit: 4.438
R&D Expenses: 0.081
SG&A / Selling, General & Administrative: 2.112
Operating Expenses: 2.193
EBITDA: 2.245
Financial Highlights
Key QQ1 2026 metrics and directional impressions (USD, in millions unless noted):
- Gross Profit: 4.438
- R&D Expenses: 0.081
- SG&A / Selling, General & Administrative: 2.112
- Operating Expenses: 2.193
- EBITDA: 2.245
- Operating Income: 2.245
- Total Other Income/Expenses Net: 0.384
- Income Before Tax: 2.630
- Income Tax Expense: 0.439
- Net Income: 2.190
- EPS: 0.70
- Cash and Cash Equivalents at period end: 2.153
- Short-Term Investments: 34.151
- Total Cash & Short-Term Investments: 36.304
- Total Assets: 68.532
- Total Liabilities: 4.281
- Total Stockholders’ Equity: 64.253
- Net Cash Position (Net Debt): -2.153 (net cash)
YoY and QoQ performance (where data available, USD):
- Gross Profit: YoY -24.65%; QoQ -1.99% (declining gross profitability vs prior year and sequentially)
- Operating Income: YoY -10.65%; QoQ +11.17%
- Net Income: YoY -11.43%; QoQ +9.38%
- EPS: YoY +18.64%; QoQ +9.37%
Notes: Revenue for QQ1 2026 is not disclosed in the provided data, limiting margin-based comparisons to gross profit and expense structure.
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
4.44M
-24.65%
-1.99%
Operating Income
2.25M
-10.65%
11.17%
Net Income
2.19M
-11.43%
9.38%
EPS
0.70
18.64%
9.37%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights could not be compiled from the provided data. The earnings transcript array is empty, and no quotes or themes were supplied. As a result, management strategy, operational updates, or market commentary from the QQ1 2026 call are not captured in this report. If a transcript or quotes are provided, a thematically grouped transcriptHighlights section (strategy, operations, market conditions) with direct quotes and context will be added.
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Forward Guidance
No explicit forward guidance for QQ2 2026 or beyond is included in the provided filing. Given the strong liquidity and cash generation shown in QQ1 2026, Taylor Devices could pursue several paths to sustain growth: (1) capex to expand manufacturing capacity or tooling for seismic dampers and Fluidicshoks to meet potential aerospace/defense backlog; (2) selective acquisitions or partnerships to broaden product offerings and geographic reach; (3) opportunistic share repurchases if accretive, given the net cash position. Key factors to monitor include: order intake and backlog evolution, defense/aerospace budget cycles, pricing and mix effects on gross profit, supply chain costs, and any formal guidance issued by management in subsequent filings or calls.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
SXI
41.10%
14.10%
2.77%
29.60%
THR
40.90%
14.00%
1.79%
29.49%
NPO
43.30%
15.30%
1.68%
34.67%
GHM
23.90%
6.19%
2.74%
26.19%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Taylor Devices demonstrates solid profitability and a healthy balance sheet with meaningful liquidity. The QQ1 2026 results indicate earnings quality, supported by a positive net income and EBITDA amidst incomplete revenue disclosure. The absence of explicit forward guidance and revenue visibility warrants a cautious stance until top-line trends are clarified. If management commits to revenue growth and margin expansion, supported by capex or strategic acquisitions, the stock could benefit from multiple expansion given the company’s net cash position and relatively conservative leverage. Investors should monitor quarterly order intake, backlog development, product mix shifts, and any guidance on margin trajectory, as well as macro trends in aerospace/defense and seismic damping applications that could drive durable demand.
Key Investment Factors
Growth Potential
Strong cash position and operating profitability suggest potential for value-enhancing deployment of capital (capex, M&A, or selective buybacks). The company’s niche products in seismic dampers, shock absorbers, and crane buffers position it to benefit from aerospace/defense and industrial instrumentation cycles, subject to order flow and margin discipline.
Profitability Risk
Revenue and margin visibility are limited in the QQ1 2026 data due to missing revenue figures; the confidence in sustained gross margin depends on product mix and pricing. The company operates in a niche market with exposure to defense/aerospace spend, infrastructure cycles, and commodity costs. Non-cash items in cash flow (noted as other non-cash adjustments) could mask operating cash dynamics in some periods. Regulatory, export controls, and international sales exposure add additional risk layers.
Financial Position
Very solid liquidity with net cash of approximately $2.15 million and total cash & short-term investments around $36.3 million. The balance sheet shows modest current liabilities (~$6.04 million) and substantial equity (~$64.25 million), supporting financial flexibility. The cash-heavy balance sheet provides a cushion against cyclicality and enables strategic deployment of capital.
SWOT Analysis
Strengths
Robust liquidity and a net cash position (net debt negative) around $2.15 million
Strong balance sheet with total current assets ~ $55.63 million and current liabilities ~ $6.04 million, implying ample operating flexibility
Disciplined cost structure with operating income and EBITDA in the QQ1 2026 quarter
Diversified product portfolio in shock absorption, dampers, energy storage components, and aerospace/defense applications
Weaknesses
Revenue for QQ1 2026 is not disclosed, hindering margin transparency and top-line trend assessment
Limited visibility into gross margin due to missing revenue data and mix information
Reliance on niche end-markets may heighten cyclicality and exposure to defense/aerospace budget cycles
Opportunities
Growing demand in defense/aerospace for vibration and shock control solutions
Opportunity to deploy excess liquidity into capacity expansion, R&D, or selective acquisitions
Potential for geographic expansion and deeper penetration in seismic damping and industrial buffers
Threats
Cyclical demand in industrial machinery and defense spending could impact order flow
Pricing pressure and competition within specialized industrial components could compress margins
Global supply chain volatility and commodity cost fluctuations may affect input costs and delivery timelines