Shares of Taylor Devices, Inc. TAYD have gained 4.7% since the company reported its earnings for the quarter ended May 31, 2025. This compares favorably to the S&P 500 index, which has declined 1.2% in the same time frame. However, over the past month, Taylor Devices’ stock has declined 5.8%, underperforming the S&P 500’s 0.7% growth. This divergence suggests that while the immediate post-earnings reaction was positive, broader market factors or company-specific concerns may have weighed on the shares more recently.
In its fourth-quarter fiscal 2025 results, Taylor Devices reported earnings per share of $1.17, up from 80 cents in the prior-year quarter.
Sales of $15.6 million reflected a rise of 29% from $12.1 million in the year-ago quarter. Net earnings for the quarter stood at $3.7 million compared with $2.5 million a year earlier, marking a 49% increase.
Taylor Devices, Inc. Price, Consensus and EPS Surprise
Taylor Devices, Inc. price-consensus-eps-surprise-chart | Taylor Devices, Inc. Quote
Full-Year Update
For the full fiscal year 2025, sales reached a record $46.3 million, up 4% from $44.6 million in fiscal 2024, while net income climbed to $9.4 million versus $9 million last year, a 5% improvement. Full-year earnings per share rose to $3.01 from $2.68.
Other Key Business Metrics
Taylor Devices ended fiscal 2025 with a firm order backlog of $27.1 million as it entered fiscal 2026. This backlog underscores continued customer demand, providing visibility into near-term revenues. Notably, the company highlighted that all three customer-facing product groups — Aerospace/Defense, Structural, and Industrial — contributed positively to the results. Aerospace/Defense and Industrial markets in particular showed strong momentum, which more than offset the challenges in Structural markets where higher interest rates and unfavorable foreign exchange rates pressured performance.
Management Commentary
Chief executive officer Tim Sopko emphasized that both the fourth quarter and the full fiscal year marked record highs for sales and profitability. He noted that net income of $9.4 million equated to 20.3% of sales, slightly higher than last year’s 20.2% ratio, indicating steady margins despite macroeconomic headwinds. Management attributed the performance to diligent execution of profitable growth strategies and continued investments in people, technology, processes and facilities. Sopko stressed that these investments are intended to sustain momentum into fiscal 2026 and beyond.
Factors Influencing Headline Numbers
The company’s performance benefited from robust Aerospace/Defense and Industrial demand, which mitigated the ongoing weakness in Structural markets. Elevated interest rates dampened construction-related demand in structural products, while foreign exchange volatility created further headwinds for international sales. Despite these challenges, operating leverage from higher volumes and cost discipline supported both top-line expansion and earnings growth.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios – for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
Taylor Devices, Inc. (TAYD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).