Taylor Devices, Inc. reported third‑quarter 2026 financial results for the period ending February 28, 2026. Revenue reached $11.17 million, up 6.5 % from $10.56 million a year earlier, while net income rose 24.5 % to $2.50 million. Earnings per share were $0.79, a $0.02 beat over the consensus estimate of $0.77.
The EPS beat was driven by disciplined cost management and a shift toward higher‑margin defense‑aerospace contracts, which offset a modest decline in revenue from the company’s legacy structural and industrial segments. Revenue, however, fell short of the $13.18 million consensus by $2.00 million, reflecting weaker demand in those legacy markets and the impact of a six‑plus‑week U.S. government shutdown that delayed contract awards.
Gross margin for the quarter was 44 %, a slight compression from 45 % a year earlier, as the cost of goods sold increased faster than revenue. The favorable product mix—larger shares of defense‑aerospace sales—helped maintain profitability, but the overall margin decline signals rising input costs and pricing pressure in the lower‑margin segments.
Firm order backlog declined to $20.8 million from $27.1 million at the start of the fiscal year, a drop attributed to the government shutdown and headwinds in the structural and industrial markets. Management noted that the backlog reduction is a short‑term effect and that the company remains focused on securing new defense contracts.
CEO Tim Sopko said, "While our FY26 3rd quarter and 1st nine‑month sales both finished ahead of last year’s levels respectively, the $32.7 million also establishes a new high record for sales in the 1st nine‑months of a fiscal year for our company, improving upon the prior record of $32.5 million set in Q3 of our FY24." He added, "Net earnings for the 3rd quarter and 1st nine months also finished better than last year’s levels due to both higher sales volume and favorable sales mix." He also highlighted the backlog impact: "The six plus week US Government shutdown that occurred last fall and the resulting delays in contract awards continues to impact us as can be seen in our firm order backlog of $20.8 million which is down from the $27.1 million we had at the start of this fiscal year." Finally, Sopko emphasized future focus: "As we enter the 4th and final quarter of our FY26, we will continue to focus on our growth strategies supported by our continued investments in our team, technologies (R&D) and facilities which we expect will continue to support our profitable growth going forward."
Investors have historically reacted negatively to earnings releases from Taylor Devices, often focusing on the decline in order backlog and the revenue miss, even when earnings beat expectations. The company’s guidance for the final quarter remains unchanged, underscoring management’s confidence in maintaining profitability amid the current headwinds.
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