Taylor Devices Reports Strong Q3 Earnings Growth Amidst Significant Backlog Decline
TAYD has more than doubled off its 52-week low of $29.5 on elevated volume (2.1× avg).
Summary
Taylor Devices reported strong Q3 net income and EPS growth, alongside improved liquidity and increased capital expenditures, but faces a significant 37.5% decline in its sales backlog.
Key Events · Earnings and Guidance · TAYD
-
Strong Net Income and EPS Growth
Net income increased by 17% to $6.70 million for the nine months and by 25% to $2.50 million for the three months ended February 28, 2026. Basic and diluted EPS rose 16% to $2.12 for the nine months and 23% to $0.79 for the three months.
-
Modest Revenue Growth
Net revenue grew by 6% to $32.70 million for the nine months and by 6% to $11.17 million for the three months, primarily driven by a 35% increase in other-than long-term projects.
-
Significant Backlog Decline
The company's sales backlog decreased substantially by 37.5% to $20.8 million as of February 28, 2026, down from $33.3 million in the prior year, indicating potential future revenue headwinds.
-
Improved Liquidity and Cash Flow
Cash and cash equivalents increased to $2.53 million from $1.19 million (May 31, 2025), and short-term investments grew to $39.18 million. Net cash from operating activities for the nine months increased to $7.13 million from $5.54 million.
Analysis · TAYD · Technology
Taylor Devices, Inc. delivered robust financial results for the third fiscal quarter and nine months ended February 28, 2026, with double-digit growth in net income and EPS, driven by modest revenue increases and reduced operating expenses. The company also significantly strengthened its cash position and liquidity, while increasing capital expenditures for capacity expansion. However, a substantial 37.5% reduction in backlog to $20.8 million from $33.3 million a year ago presents a notable concern for future revenue generation. Investors should monitor the company's ability to replenish its backlog and sustain growth in upcoming periods, especially given the shift in sales concentration towards aerospace/defense customers.
At the time of this filing, TAYD was trading at $74.06 on NASDAQ in the Technology sector, with a market capitalization of approximately $227.3M. The 52-week trading range was $29.50 to $90.37. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.