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what it is
Gencor makes asphalt plants, combustion systems, and heat transfer equipment for road builders.
how it gets paid
Last year Gencor Industries made $115M in revenue. Hot mix asphalt plants was the main engine at about $65M, or ~56% of sales.
why it's growing
Full-year revenue grew about 2.0% to ~$115M. The latest quarter fell about 25% vs. prior year to ~$24M — that is the demand signal, not a second full year.
what just happened
Q1 revenue fell to $24M, but gross margin held at 28.7%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
11.7x trailing p/e — the market's not buying it — or you found a deal
7.4% return on capital — nothing to write home about
$1.07 fy2025 eps est
xvary composite: 56/100 — below average
What they do
Gencor makes asphalt plants, combustion systems, and heat transfer equipment for road builders.
Gencor had $136.3M in cash and marketable securities at Sept. 30, 2025. The market cap was about $215M. Cash covered 63% of the stock's value. Backlog, or signed orders waiting to ship, was $23.6M at Dec. 1, 2025. That gives you a business with a real factory and a cash pile that does a lot of the heavy lifting.
How they make money
$115M
annual revenue · their business grew +2.0% last year
Hot mix asphalt plants
$65M
Combustion systems
$0.028B
Fluid heat transfer systems
$0.022B
The products that matter
manufactures road-building equipment
Asphalt Plants
core demand driver
this is the center of the story. with $115M in annual revenue and ~$23.6M of backlog (Dec. 2025), shipment timing here will decide whether weak demand was temporary or the new baseline.
backlog-sensitive
industrial heat transfer systems
Hy-Way Thermal Systems
margin support
this line matters because gross margin held at 28.7% even with revenue down 25% in the latest quarter. when sales wobble, product mix starts doing the talking.
28.7% margin
environmental cleanup equipment
Soil Remediation Plants
second end market
it gives you exposure beyond paving. that matters when quarterly revenue is only ~$24M and every order has outsized weight.
diversification
Key numbers
$136.3M
cash
Cash was 63% of the $215M market cap. You are paying for a factory, not a balance sheet headache.
11.7x
trailing P/E
P/E means price divided by earnings. At 11.7x, the stock is not priced for much growth.
28.7%
gross margin
Gross margin means sales left after direct costs. More than a quarter stayed on the table.
7.4%
return on capital
Return on capital means profit per dollar tied up in the business. 7.4% is decent, not heroic.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for GENC right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Q1 revenue fell to $24M, but gross margin held at 28.7%.
Revenue was down 25% vs. prior year. Gross margin, or sales left after direct costs, stayed at 28.7%, so the profit line did not fall apart.
$24.0M
revenue (q)
$0.23
eps (q)
28.7%
gross margin (q)
revenue
Revenue dropped 25% to $24M. That is the number that says demand slowed.
source: company earnings report, 2026
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What could go wrong
the whole near-term case rests on one thing: backlog turning into shipped equipment before demand softens again.
high
Backlog conversion risk
the ~$23.6M backlog is future work, not cash. at a recent quarterly revenue pace of ~$24M, you need those orders to ship. if customers delay or cancel, the rebound thesis breaks fast.
exposes more than two quarters of recent revenue
high
Infrastructure spending and order timing
gencor sells machines tied to paving and remediation budgets. the latest quarter already showed the pain: revenue fell 25%. when customers pause spending, a small-cap manufacturer feels it immediately.
direct hit to the whole $115M annual revenue base
med
Margin snapback
the latest quarter looked better because gross margin improved to 28.7% even as revenue dropped. if that margin gives back while sales stay weak, the stock loses the one quality signal investors just rewarded.
pressures EPS more than the headline revenue line suggests
low
Leadership transition
executive chairman EJ Elliott retired in december 2025. for a $215M company, that matters. you are relying on a new operating rhythm during a period where execution is the story.
execution risk rises when the backlog matters most
if the ~$23.6M backlog shrinks without quarterly revenue recovering from the ~$24M prints, the stock stops looking cheap and starts looking like a low-quality cyclical.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
backlog versus revenue
the simple test: backlog needs to convert into reported sales. if the ~$23.6M order book falls without a revenue rebound, the thesis is wrong.
trend
gross margin after the bounce
28.7% was the reason the market forgave the revenue decline. if margin slips while sales stay soft, you lose the cleanest positive number on the page.
calendar
annual shareholder meeting
april 3, 2026. you want direct commentary on order flow, shipment timing, and whether management still sounds confident about the backlog.
risk
next quarter's revenue line
q2 fy26 is due around may 2026. one weak quarter is noise. two weak quarters after a 25% drop starts to look like demand, not timing.
Analyst rankings
earnings predictability
35 / 100
earnings predictability measures how steady the business has been. in human-speak: expect lumpy quarters, not a straight line.
risk rank
3
risk rank of 3 means it sits around the market middle on safety. safer than a distressed small cap, nowhere near a defensive compounder.
source: institutional data
Institutional activity
institutional ownership data for GENC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$13
current price
n/a
target midpoint · n/a from current
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