Gencor Industries (GENC) investor relations material

Executive summary

• Net revenue for the quarter ended June 30, 2025 increased 5.6% year-over-year to $26.99 million, driven by higher equipment and parts sales and increased freight revenues.

• Gross profit margin rose to 26.5% from 23.9% year-over-year, reflecting improved profitability on contract sales and higher-margin parts sales.

• Operating income for the quarter was $3.14 million, up from $1.99 million in the prior year quarter, due to higher revenue and improved margins.

• Net income for the quarter was $3.83 million ($0.26 per share), compared to $2.56 million ($0.17 per share) in the prior year quarter.

• Advanced research and development pipeline with key program updates expected in 2H 2025.

Financial highlights

• Nine-month net revenue increased 4.7% year-over-year to $96.61 million, primarily from equipment sales recognized over time.

• Cash and cash equivalents were $721.5M as of June 30, 2025, down from $879.5M at December 31, 2024.

• R&D expenses rose to $71.0M for Q2 2025 from $40.1M in Q2 2024, mainly due to zelenectide pevedotin development.

• Net loss was $79.0M ($1.14 per share) for Q2 2025, compared to $39.8M ($0.77 per share) in Q2 2024.

• Operational savings of 30% expected to extend financial runway into 2028.

Outlook and guidance

• Management expects capital resources from operations and investments to satisfy liquidity needs in both the short and long term.

• Financial runway expected to extend into 2028 following cost realignment.

• Update on dose selection from Duravelo-2 trial and accelerated approval pathway for zelenectide pevedotin in mUC anticipated after FDA meeting in 4Q 2025.

• The company’s backlog was $26.2 million at June 30, 2025, down from $46.6 million a year earlier.

• The business remains subject to seasonality, with lower sales and operating results expected in the first and fourth fiscal quarters.