TAYLOR DEVICES, INC.
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Taylor Devices reported a 26% YoY decline in net sales and a 79% drop in net income for the quarter ended August 31, 2026, driven by lower long-term project revenue (-33%) and reduced structural/aerospace sales. Gross margin compressed sharply from 45% to 30%, and operating income nearly evaporated ($38K vs $2.2M prior year), though the balance sheet remains strong with cash and short-term investments growing to over $49M combined.
Red Flags Detected (5)
Net income declined 79% YoY despite only a 26% sales decline, indicating significant operating leverage deterioration
Gross margin fell 15 percentage points (45% to 30%), attributed to sales mix shift and lower absorption of fixed costs
Construction/bridges segment sales dropped 49% YoY, a major demand weakness
2 more red flags detected
Key Takeaways
Sales declined across both long-term (-33%) and other-than-long-term (-18%) project categories
U.S. sales down 20%, Asia sales down 31%, reflecting broad-based geographic weakness
3 more takeaways
Filing Overview
What This Means
Deteriorating Trend: Conditions are worsening compared to previous filings. This may create opportunities for service providers.
Quarterly Report: Interim filing with unaudited financial data for the quarter.