Taylor Devices Inc (TAYD) Q2 2025 Earnings Report

Revenue and profitability
- Revenue: $3,886,100 for QQ2 2025, YoY change: -62.4%, QoQ change: -66.6%.
- Gross Profit: $3,886,100; Gross Margin: 100.00% (note: cost of revenue data is not provided, so margin interpretation is provisional).
- Operating Income: $944,185; Operating Margin: 24.30% (ratio based on reported figures).
- EBITDA: $944,185; EBITDA Margin: 24.30%.
- Total Other Income/Expenses: $307,871; Income Before Tax: $1,252,056; Income Tax Expense: $195,896; Net Income: $1,056,160; Net Margin: 27.18%; EPS: $0.34.
- YoY and QoQ momentum: Net income YoY -46.69%, QoQ -60.39%; EPS YoY -47.69%, QoQ -60.00%.

Liquidity and cash flow
- Operating Cash Flow: $3,589,497; Free Cash Flow: $3,836,459; Capex: $246,962.
- Change in Working Capital: $6,641,886; Accounts Receivables: -$1,468,126; Inventory: -$600,741; Accounts Payables: -$990,571; Other Working Capital: $9,701,324; Other Non-Cash Items: -$4,556,214.
- Net Cash Provided by Operating Activities: $3,589,497; Net Cash Used for Investing Activities: $1,459; Net Cash Used Provided by Financing Activities: $87,259; Net Change in Cash: $191,837.
- Cash and Equivalents at End of Period: $2,355,333; Beginning Cash: $2,163,496; Net Debt: -$2,355,333 (net cash position).

Balance sheet health
- Total Assets: $60,908,041; Total Current Assets: $48,577,323; Total Current Liabilities: $7,062,755; Total Liabilities: $5,109,064; Total Stockholders’ Equity: $55,798,977; No long-term debt reported.
- Liquidity ratios: Current 6.88x; Quick 5.66x; Cash Ratio 0.33x.
- Capital structure: Debt to equity and debt to capitalization are effectively zero; company appears financially net cash positive.
- Activity metrics: DSO 260.9 days; Inventory Days 0 (data limitation); Receivables Turnover 0.345x; Asset Turnover 0.064; ROE 1.89%; ROA 1.73%; Payout ratio 0%.

Valuation and market context
- Price-to-book 2.68x; Price-to-sales 38.43x; Price-to-earnings 35.35x; Enterprise value multiple 155.69x (based on available peer data and reported metrics). These multiples reflect a market with either limited public comparables or a premium for Taylor’s niche capabilities in seismic dampers, shock absorption, and defense applications, but given the top-line decline the current multiples warrant scrutiny until revenue stabilization occurs.

No earnings call transcript was provided in the supplied data; therefore, management quotes and theme-based highlights are not available. If a transcript is provided, we will categorize quotes by themes (strategy, operations, market conditions) and annotate their significance with contextual rationale.

Quantitatively, QQ2 2025 shows a sharp top-line decline but with meaningful cash generation and a net cash position that provides a cushion for near-term strategic moves. The absence of clear gross margin data clouds profitability assessment, though operating cash flow remains healthy. Qualitatively, the company is positioned to exploit its niche capabilities in seismic dampers, shock absorbers, and defense-related components if demand stabilizes. The investment case rests on (1) a reversal or stabilization of the revenue decline, (2) resolution of gross margin visibility to confirm sustainable profitability, and (3) prudent deployment of liquidity toward growth initiatives or selective acquisitions that fit the company’s core product slate. Investors should monitor backlog, order intake trends, and any changes in customer composition, especially within aerospace/defense programs, as key indicators of sustainable upside or continued volatility. In the near term, the stock may appeal to investors prioritizing liquidity and optionality in a niche industrials subgroup, provided revenue stabilization becomes evident over subsequent quarters.