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Globe and Mail
6 days ago
- Business
- Globe and Mail
Medexus Announces Fiscal Q1 2026 Results, Including Positive Results from US Launch of GRAFAPEX (treosulfan) for Injection
Fiscal Q1 2026 net revenue of $24.6 million, net income of $0.5 million, operating income of $0.9 million, and Adjusted EBITDA* of $3.4 million $3.0 million of product-level net revenue from GRAFAPEX in fiscal Q1 2026, relative to $3.0 million of personnel and infrastructure investments, further supporting Medexus's confidence in the product's potential Management to host conference call at 8:00 AM Eastern time on Wednesday, August 13, 2025 Toronto, Ontario and Chicago, Illinois--(Newsfile Corp. - August 12, 2025) - Medexus Pharmaceuticals (TSX: MDP) (OTCQX: MEDXF) today announced its operating and financial results and provided a business update for the company's first fiscal quarter ended June 30, 2025 (the company's fiscal Q1 2026). All dollar amounts in this press release are in United States dollars unless specified otherwise. Key business update Medexus is currently focused on delivering strong performance from GRAFAPEX. March 2025 was the first full month, and fiscal Q1 2026 was the first full fiscal quarter, in which Medexus recognized product-level net revenue from GRAFAPEX, which totaled $3.0 million for fiscal Q1 2026, relative to $3.0 million of GRAFAPEX personnel and infrastructure investments. Medexus also remains focused on delivering strong overall performance across the company's portfolio of products in both the United States and Canada. Medexus has seen a positive market response to GRAFAPEX to date, with progress consistent with Company expectations: As of June 30, 2025, nine large commercial payers, together covering an estimated 48 million patient lives, and 14 individual healthcare institutions, representing 8% of the 180 transplant centers in the United States, have made positive formulary inclusion determinations, a promising indicator of the product's commercial potential. An additional 29 commercial payers have added GRAFAPEX on their "prior authorization" lists. Wholesaler data as of June 30, 2025 shows that 36 of the 180 transplant centers, representing an estimated 24% of total allo-HSCT procedures performed in the United States annually (Source: Allogeneic HSCT in HRSA 2016-2020; Health Resources and Services Administration), have already ordered GRAFAPEX for procedures in their institutions. Medexus expects that product-level net revenue from GRAFAPEX in fiscal Q2 2026 will be $3.0 million to $3.5 million, taking into account the wholesaler purchasing patterns observed to date and expected seasonality attributable to a lower frequency of procedures scheduled during summer months. Based on product-level performance to date, Medexus expects that GRAFAPEX will be accretive to quarterly operating cash flows by fiscal Q3 2026 (calendar Q4 2025). Medexus also continues to expect that the annual product-level Adjusted Gross Margin* of GRAFAPEX will ultimately be approximately 80%, although, as demonstrated by product-level Adjusted Gross Margin* for fiscal Q1 2026, product level Adjusted Gross Margin* will be slightly higher in the initial months or quarters after commercial launch primarily due to the evolving reimbursement and tariff dynamics for the product (including as discussed below). "The strong initial performance of GRAFAPEX™ is particularly important as other products in our portfolio shift to the later stages of their product life cycle," commented Ken d'Entremont, Chief Executive Officer of Medexus. "For instance, Rupall's revenues have experienced erosion after the loss of its exclusivity period in January 2025. Over time, we expect product-level performance of GRAFAPEX™ to significantly outweigh the relatively smaller impact of this decline in Rupall product-level performance in this transitional period. We design this portfolio approach to stay agile, resilient, and ultimately successful over the long term." Medexus views product performance to date, and the response from the market and the attention to treosulfan from the medical and scientific community, as consistent with the Company's confidence that GRAFAPEX will make a substantial contribution to allo-HSCT in the United States, and also solidify Medexus's leadership position in this therapeutic field. Financial highlights Key financial highlights for fiscal Q1 2026 include the following: Net revenue of $24.6 million, a decrease of $2.7 million, or 9.9%, compared to $27.3 million for fiscal Q1 2025. The $2.7 million year-over-year net revenue decrease was primarily due to reduced net sales of Rupall (due to significant generic competition, resulting in lower unit demand, and the effects of the resulting effective unit-level price reductions) and Gleolan in the United States (due to the March 2025 termination of the US Gleolan Agreement), partially offset by $3.0 million of product-level net revenue from GRAFAPEX in fiscal Q1 2026. Adjusted EBITDA* of $3.4 million, a decrease of $2.7 million, or 44.3%, compared to $6.1 million for fiscal Q1 2025. The $2.7 million year-over-year Adjusted EBITDA* decrease was primarily due to the effect of significant generic competition on Rupall. Operating income of $0.9 million, a decrease of $3.1 million, or 77.5%, compared to $4.0 million for fiscal Q1 2025. Net income of $0.5 million, a decrease of $1.5 million compared to net income of $2.0 million for fiscal Q1 2025. Available liquidity of $9.3 million (June 30, 2025), consisting of cash and cash equivalents, compared to $24.0 million (March 31, 2025). The primary factor in this net decrease in cash was a payment of $15.5 million that Medexus made in June 2025 under the terms of a June 2025 amendment to the Company's credit agreement. Cash provided by operating activities of $3.9 million, a decrease of $4.3 million compared to $8.2 million for fiscal Q1 2025. * Refer to "Non-GAAP measures" at the end of this press release for information about non-GAAP measures and related items, including Adjusted EBITDA and Adjusted Gross Margin. "We are very pleased with the successful launch of GRAFAPEX™ in the United States," commented Ken d'Entremont, Chief Executive Officer of Medexus. "We believe this sequential quarter-over-quarter momentum we have seen will continue to build as GRAFAPEX™ is added to the formularies of additional key institutions and insurers, expanding patient access and driving further adoption. The positive initial response we have seen to date, including full results from the first full fiscal quarter of GRAFAPEX™ commercial availability, supports our expectation that GRAFAPEX™ will be accretive to quarterly operating cash flows by calendar Q4 2025, which is our fiscal Q3 2026." Brendon Buschman, Chief Financial Officer of Medexus, added: "In addition to the successful progress on GRAFAPEX™ commercialization, we achieved $0.5 million of positive net income for fiscal Q1 2026, and a healthy $3.4 million of Adjusted EBITDA* from $24.6 million of net revenue. We realized gross margin of 56.0% and Adjusted Gross Margin* of 65.5% for fiscal Q1 2026, compared to last year's 54.4% and 59.3%, respectively, demonstrating meaningful year-over-year improvement relative to steady gross profits of $13.8 million and $14.8 million and Adjusted Gross Profits* of $16.1 million and 16.2 million, respectively. These strong results provided $3.9 million in cash flow from operating activities, which we have used in part to continue to repay principal and interest under our term loan, substantially reducing total debt under our credit facilities by $15.5 million in fiscal Q1 2026 - meaning that total debt now sits at a combined $22.0 million as of June 30, 2025, with remaining scheduled principal payments of $1.1 million in each of September and December 2025." Mr Buschman concluded: "We have entered fiscal year 2026 with strong momentum and expect continued quarter-over-quarter performance as our commercialization efforts for GRAFAPEX™ advance. Overall, we continue to execute with discipline and focus as we position Medexus for the opportunities ahead." Operational highlights Leading products Hematology and hemato-oncology GRAFAPEX (US): Medexus has seen a positive market response to GRAFAPEX since the US commercial launch of the product in February 2025. Based on internal estimates and research, and the preliminary market response to GRAFAPEX, Medexus continues to expect that annual product-level net revenue from GRAFAPEX will exceed US$100 million within five years after commercial launch, with the specific nature and level of success of Medexus's commercialization initiatives in support of GRAFAPEX, among other factors, determining the extent to which the Company realizes this potential. In August 2025, the US Centers for Medicare & Medicaid Services (CMS) approved New Technology Add-On Payment (NTAP) reimbursement for eligible cases involving the use of GRAFAPEX for CMS's fiscal year 2026, which runs from October 1, 2025 to September 30, 2026. The NTAP program is designed to provide temporary supplemental reimbursement to institutions that use designated new higher-cost medical technologies in the first few years after introduction to the market. To receive NTAP approval, designated technologies must demonstrate substantial clinical improvement in the diagnosis or treatment of Medicare beneficiaries compared to existing alternatives. Starting October 1, 2025, eligible procedures involving the use of GRAFAPEX™ will be eligible for additional reimbursement through the NTAP program. Cases involving the use of GRAFAPEX™ that are eligible for NTAP will be identified by ICD-10-PCS codes XW03388 or XW04388 and will benefit from a maximum NTAP of $21,411 for CMS's fiscal year 2026. The GRAFAPEX™ approval was one of only five approvals for CMS's fiscal year 2026 under the new technology add-on payment traditional pathway, out of the 13 applications considered by CMS. Medexus achieved $3.0 million of product-level net revenue from GRAFAPEX in fiscal Q1 2026, including a $1.0 million benefit from end-of-quarter wholesaler purchases in anticipation of future hospital demand, relative to the $3.0 million of GRAFAPEX personnel and infrastructure investments discussed below. Medexus expects that product-level net revenue from GRAFAPEX in fiscal Q2 2026 will be $3.0 million to $3.5 million, taking into account the wholesaler purchasing patterns observed to date and expected seasonality attributable to a lower frequency of procedures scheduled during summer months. Based on product-level performance to date, Medexus expects that GRAFAPEX will be accretive to quarterly operating cash flows by fiscal Q3 2026 (calendar Q4 2025). In July 2025, the current US administration announced a 15% tariff on imports of pharmaceutical products from the EU (July 2025 pharmaceutical tariffs). Based on the Company's preliminary assessment, which remains ongoing, the July 2025 pharmaceutical tariffs will apply to the Company's imports of GRAFAPEX at the announced rate of 15%. Medexus does not currently expect the impact of these tariffs on product-level performance to be material. Trecondyv (Canada): Unit demand for Trecondyv remained strong during the 12-month period ended June 30, 2025, which is reflected in the unit demand growth of 38% over the trailing 12-month period ended June 30, 2025. (Source: Hospitals Direct Sales Data, MAT June 2025.) This strong performance reflects successful execution of the Company's initiatives since its September 2021 commercial launch, but does not yet include the full effect of the successful November 2024 completion of the negotiation process with the pan-Canadian Pharmaceutical Alliance seeking to make Trecondyv accessible to publicly funded drug programs and patients in Canada and any subsequent decisions by participating government organizations on public reimbursement of Trecondyv for their regions and jurisdictions. For example, Medexus completed listing agreements for public reimbursement of Trecondyv with the provincial governments of Ontario and British Columbia in fiscal Q4 2025 and with the provincial governments of Quebec and Manitoba in fiscal Q1 2026. Medexus sees these developments in the Canadian market as important indicators of the product's prospects and potential in both the Canadian and US markets. IXINITY (US): Unit demand in the United States decreased by 1% over the trailing 12-month period ended June 30, 2025. (Source: customer-reported dispensing data.) Medexus expects that 12-month trailing unit demand will remain relatively stable, with only slight continuing decreases, in the near term. See also "Selected Financial Information-Note regarding period-to-period variations" and "Discussion of Operations-Net revenue". This performance reflects the success of the Company's efforts to maintain existing demand, despite a reduced allocation of sales force resources to IXINITY since January 2024. Medexus's investments in its IXINITY manufacturing process improvement initiative have generally had a positive impact on batch yield and manufacturing costs over fiscal years 2024 and 2025 and now continuing into fiscal year 2026. Allergy, dermatology, and rheumatology Rupall (Canada): Rupall's market exclusivity, granted by Health Canada, expired in January 2025 and Rupall now faces generic competition in Canada. As a result, unit demand over the six-month period ended June 30, 2025 has decreased 29% when compared to the corresponding prior year period. (Source: IQVIA TSA units - MAT June 2025.) Generic competition will continue to have an adverse impact on net sales of Rupall. Medexus initiated unit-level pricing strategies that resulted in effective unit-level price reductions in fiscal Q4 2025, which are expected to continue through fiscal year 2026 and thereafter. Rasuvo (US): Unit demand for Rasuvo decreased by 5% over the trailing 12-month period ended June 30, 2025. (Source: IQVIA MAT June 2025.) Sustained competition in the US branded methotrexate autoinjector market, among other factors, have and will continue to adversely affect total product-level net revenue. See also "Selected Financial Information-Note regarding period-to-period variations" and "Discussion of Operations-Net revenue". Based on the Company's preliminary assessment, which remains ongoing, the July 2025 pharmaceutical tariffs will apply to the Company's imports of Rasuvo at the announced rate of 15%. Medexus does not currently expect the impact of these tariffs on product-level performance to be material. Metoject (Canada): Unit demand for Metoject decreased by 5% over the trailing 12-month period ended June 30, 2025. (Source: IQVIA - TSA database.) Medexus attributes this decrease in unit demand, which has corresponded with an adverse impact on product-level net revenue, to the continued effects of generic competition, in particular the launch of a second generic product in March 2024. Medexus implemented additional unit-level pricing strategies in April 2024 that resulted in effective unit-level price reductions to defend the product's strong market position, which has contributed to the adverse impact on product-level net revenue. Additional information Medexus's financial statements and management's discussion and analysis for fiscal Q1 2026 are available on Medexus's corporate website at and in the company's corporate filings on SEDAR+ at Conference call details Medexus will host a conference call at 8:00 am Eastern Time on Wednesday, August 13, 2025 to discuss Medexus's results for fiscal Q1 2026. To participate in the call, please dial the following numbers: 888-506-0062 (toll-free) for Canadian and U.S. callers +1 973-528-0011 for international callers Access code: 284388 A live webcast of the call will be available on the Investors section of Medexus's corporate website or at the following link: A replay of the call will be available approximately one hour following the end of the call through Wednesday, August 20, 2025. To access the replay, please dial the following numbers - 877-481-4010 for Canadian and U.S. callers +1 919-882-2331 for international callers Conference ID: 52801 A replay of the webcast will be available on the Investors section of Medexus's corporate website until Thursday, August 13, 2026. About Medexus Medexus is a leading specialty pharmaceutical company with a strong North American commercial platform and a growing portfolio of innovative and rare disease treatment solutions. Medexus's current focus is on the therapeutic areas of hematology-oncology and allergy, dermatology, and rheumatology. For more information about Medexus and its product portfolio, please see the company's corporate website at and its filings on SEDAR+ at Preliminary estimates The expected results discussed in this news release (which are distinct from the historical results included in Medexus's financial statements and discussed in this news release) are preliminary estimates only and have not been reviewed or audited by the Company's auditors. Expected results discussed in this news release include preliminary estimates of product-level net revenue generated from GRAFAPEX in fiscal Q2 2026. All such figures are based on information currently available to Medexus management and are subject to change and adjustment as Medexus's financial results for fiscal Q2 2026 are finalized. Accordingly, final reported results may differ, and may differ materially, from these preliminary estimates, and investors therefore should not place undue reliance on any such preliminary estimates. All such preliminary estimates constitute forward-looking information within the meaning of applicable securities laws, are based on a number of assumptions, and are subject to a number of risks and uncertainties. For more information, see "Forward-looking statements". Forward-looking statements Certain statements in this news release contain forward-looking information within the meaning of applicable securities laws, also known and/or referred to as "forward-looking information" or "forward-looking statements". The words "anticipates", "believes", "budget", "potential", "targets", "could", "estimates", "expects", "forecasts", "goals", "intends", "may", "might", "objective", "outlook", "plans", "projects", "schedule", "should", "will", "would", "prospects", and "vision", or similar words, phrases, or expressions, are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words, phrases, or expressions. Specific forward-looking statements in this news release include, but are not limited to, information contained in statements regarding any of the following: Medexus's business strategy, outlook, and other expectations and plans regarding financial or operational performance, including those specific to GRAFAPEX™ (treosulfan) for Injection, in particular in light of investments in the recent commercial launch of GRAFAPEX; future growth, revenues, and expenses, including in respect of the commercialization of GRAFAPEX and Medexus's other leading products, and including product-level performance in respect of same, and including, among others, the potential impact of the July 2025 tariff on imports of pharmaceutical products from the EU announced by the current US administration; the expected benefit to Trecondyv® (treosulfan for injection) of the listing agreements for public reimbursement with provincial health services, including in respect of product-level net revenue, and anticipated effects of Medexus's unit-level pricing strategies. The forward-looking statements and information included in this news release are based on Medexus's current expectations and assumptions, including factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, and including assumptions based on regulatory guidelines, historical trends, current conditions, and expected future developments. In particular, and without limiting the generality of the foregoing, Medexus's estimate of product-level net revenue from commercialization of GRAFAPEX is based on a number of such factors and assumptions as most recently described in Medexus's most recent management's discussion and analysis, and including the Company's planned commercial, market access, and medical strategies, the success of which will depend in part on the US regulatory landscape and related dynamics, including potential future changes to each, and can introduce and affect exposure to commercial, legal, and regulatory risk. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. Medexus cautions that, although the assumptions are believed to be reasonable in the circumstances, these risks and uncertainties mean that actual results could differ, and could differ materially, from the expectations contemplated by the forward-looking statements. Material risk factors include, but are not limited to, those set out in Medexus's materials filed with the Canadian securities regulatory authorities from time to time, including Medexus's most recent annual information form and management's discussion and analysis. Accordingly, undue reliance should not be placed on these forward-looking statements, which are made only as of the date of this news release. Other than as specifically required by law, Medexus undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise. Protected names and marks This news release contains references to trademarks and other protected names and marks, including those belonging to other companies, persons, or entities. Solely for convenience, trademarks and other protected names and marks referred to in this news release may appear without the "®", "™", or other similar symbols. Each such reference should be read as though it appears with the relevant symbol. Any such references are not intended to indicate, in any way, that the holder or holders will not assert those rights to the fullest extent under applicable law. Non-GAAP measures Company management uses, and this news release refers to, financial measures that are not recognized under IFRS and do not have a standard meaning prescribed by generally accepted accounting principles (GAAP) in accordance with IFRS or other financial or accounting authorities (non-GAAP measures). These non-GAAP measures may include "non-GAAP financial measures", "non-GAAP ratios", and "supplementary financial measures" (each defined in National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure). Medexus's method for calculating these measures may differ from methods used by other companies and therefore these measures are unlikely to be comparable to similarly-designated measures used or presented by other companies. In particular, management uses Adjusted EBITDA, Adjusted EBITDA Margin (Adjusted EBITDA divided by net revenue, expressed as a percentage), Adjusted Gross Profit (Loss) (gross profit (loss) before amortization of intangible assets), product-level Adjusted Gross Profit (Loss), Adjusted Gross Margin (Adjusted Gross Profit (Loss) divided by net revenue, expressed as a percentage), product-level Adjusted Gross Margin, and product-level net revenue as measures of Medexus's performance. EBITDA (earnings before interest, taxes, depreciation, and amortization), Adjusted EBITDA, Adjusted Gross Profit (Loss), and product-level Adjusted Gross Profit (Loss) are non-GAAP financial measures; Adjusted EBITDA Margin, Adjusted Gross Margin, and product-level Adjusted Gross Margin are non-GAAP ratios; and product-level net revenue and gross margin (gross profit (loss) divided by net revenue, expressed as a percentage) are supplementary financial measures. An explanation and discussion of each of these non-GAAP measures, including their limitations, is set out under the heading "Preliminary Notes-Non-GAAP measures" in Medexus's most recent management's discussion and analysis, and is hereby incorporated by reference. A reconciliation of Adjusted EBITDA to the most directly comparable IFRS measure can be found under the heading "Reconciliation of Adjusted EBITDA to Net Income (Loss)" below. A reconciliation of Adjusted Gross Margin and product-level Adjusted Gross Margin to the most directly comparable IFRS measure can be found under the heading "Reconciliation of Adjusted Gross Profit (Loss) and Adjusted Gross Margin" below. The following tables are derived from and should be read together with Medexus's consolidated financial statements for the three-month period ended June 30, 2025. The supplementary disclosure is intended to more fully explain disclosures related to Adjusted EBITDA, Adjusted Gross Margin, and product-level Adjusted Gross Margin, and provides additional information related to Medexus's operating performance. However, Medexus's non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of Medexus's financial information as reported under IFRS. Reconciliation of Adjusted EBITDA to Net Income (Loss) Three-month periods ended June 30, (Amounts in $ '000s except percentages) 2025 2024 Net income $ 516 $ 1,957 Add back: Depreciation and amortization (property, equipment, product licenses) 2,426 1,410 Financing costs 1,406 2,031 Income tax expense (recovery) 99 (57) EBITDA 4,447 5,341 Add back: Share-based compensation 167 362 Termination benefits - 356 Business combinations payable - unrealized gain on change in fair value (182) - Foreign exchange (gain) loss (581) 43 Gain on disposal of assets (408) - Adjusted EBITDA 3,443 6,102 Adjusted EBITDA Margin 14.0% 22.4% Reconciliation of Adjusted Gross Profit (Loss) and Adjusted Gross Margin Company Three-month periods ended June 30, (Amounts in $ '000s except percentages) 2025 2024 Net revenue 24,615 27,283 Cost of sales 10,841 12,448 Gross profit 13,774 14,835 Gross margin 56.0% 54.4% Add back: Amortization of product licenses 2,356 1,351 Adjusted Gross Profit 16,130 16,186 Adjusted Gross Margin 65.5% 59.3% GRAFAPEX Three-month periods ended June 30, (Amounts in $ '000s except percentages) 2025 2024 Product-level net revenue 3,013 n/a Product-level cost of sales (1,518) n/a Product-level gross profit 1,495 n/a Product-level gross margin 49.6% n/a Add back: Product-level amortization of product licenses 1,071 n/a Product-level Adjusted Gross Profit 2,566 n/a Product-level Adjusted Gross Margin 85.2% n/a To view the source version of this press release, please visit
Yahoo
06-08-2025
- Business
- Yahoo
Resideo Announces Record Second Quarter 2025 Financial Results; Raises 2025 Outlook; Initiates Third Quarter 2025 Outlook
Record high second quarter net revenue of $1.94 billion, up 22% year-over-year and above the high-end of outlook range; up 8% on an organic basis with ADI up 10% and P&S up 5% on an organic basis(1) Total company second quarter gross margin was 29.3%, up 120 basis points year-over-year; Products and Solutions second quarter gross margin was 42.9%, ninth consecutive quarter of year-over-year improvement Second quarter net loss of $825 million, compared to net income of $30 million in the second quarter of 2024, due to the one-time expense associated with our announced agreement with Honeywell to terminate the Indemnification Agreement Record high second quarter Adjusted EBITDA(2) of $210 million, up 20% year-over-year, and above the high-end of outlook range SCOTTSDALE, Ariz., Aug. 5, 2025 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets, today announced financial results for the second quarter ended June 28, 2025. Second Quarter 2025 Financial Highlights Record high net revenue of $1,943 million, up 22% compared to $1,589 million in second quarter 2024; above the high-end of the outlook range Net loss was $825 million, compared to net income of $30 million in second quarter 2024 due to a $882 million expense associated with our announced agreement with Honeywell to terminate the Indemnification Agreement. In addition to our normally scheduled payment of $35 million made in July 2025, the Company will make a one-time cash payment of $1.59 billion to Honeywell in the third quarter of 2025 upon the closing of the previously announced transaction. Record high Adjusted EBITDA of $210 million, up 20% compared to $175 million in second quarter 2024; above the high-end of the outlook range Fully diluted (loss) earnings per share was $(5.59) and $0.19 and Adjusted EPS(2) was $0.66 and $0.62 for second quarter 2025 and second quarter 2024, respectively; $0.66 exceeded the high-end of outlook range Cash provided by operating activities was $200 million Management Remarks "Resideo had an exceptional second quarter, reporting record high results that were above the high-end of the range for all our key financial metrics. We are pleased to report that both the ADI and Products and Solutions segments generated organic net revenue growth, gross margin expansion, and robust Adjusted EBITDA growth," said Jay Geldmacher, Resideo's President and CEO. "With consistent execution and our confidence that the Company will achieve the profitable growth opportunities ahead, we are raising our 2025 outlook. As we embark on the transformative action to spin off ADI, we believe the performance of both businesses is a strong proof point to the future success of each independent company."(1) Excludes the impact of the Snap One acquisition of $218 million for consolidated and ADI results as well as net favorable foreign currency fluctuations of $11 million, $7 million and $4 million for consolidated, ADI and P&S results, respectively. (2) This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measures, specifically Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. See reconciliations of U.S. GAAP results to adjusted results in the accompanying tables. Products and Solutions Second Quarter 2025 Highlights Net revenue was $666 million, up 6% compared to second quarter 2024 and up 5% year-over-year, excluding the impact of foreign currency Gross margin was 42.9%, up 160 basis points compared to second quarter 2024 Income from operations was $142 million, compared to $130 million in second quarter 2024 Adjusted EBITDA was $167 million, or 25.1% of revenue, compared to $156 million, or 24.8% of revenue, in second quarter 2024 Products and Solutions delivered net revenue of $666 million in second quarter 2025, up 6% compared to second quarter 2024 and 5% year-over-year, excluding the impact of foreign currency. Revenue grew year-over-year across substantially all of our sales channels driven by customer demand for our new products and by price realization. Sales of our BRK products in the electrical distribution channel were strong due to a combination of increasing content per new home and the transition to UL 8th edition products. The retail channel reported record revenue growth, driven by strong point of sale volumes for our new Honeywell Home FocusPRO thermostats and First Alert SC5 connected smart smoke and carbon monoxide detectors. Products and Solutions continued its cadence of introducing new products during the quarter, with the launch of the SC5 as well as new energy and water products designed with user health and safety in mind. Second quarter 2025 gross margin was 42.9%, compared to 41.3% in the prior year, primarily driven by the continued efficient utilization of our manufacturing facilities. Selling, general and administrative expenses increased $1 million and research and development expenses increased $11 million, both compared to second quarter 2024, due to planned investments that we believe will drive future growth. Cost discipline was strong throughout second quarter 2025, and, combined with the strong gross margin expansion, helped drive operating profit of $142 million or 21.3% of revenue, up from $130 million or 20.6% of revenue in second quarter 2024. Adjusted EBITDA grew 7.1% year-over-year in second quarter 2025 to $167 million, with Adjusted EBITDA margin up 30 basis points in second quarter 2025 to 25.1%. ADI Global Distribution Second Quarter 2025 Highlights Net revenue was $1,277 million, up 33% compared to second quarter 2024 and up 10% excluding the impact of the acquisition of Snap One Holdings Corp. ("Snap One") and foreign currency Gross margin was 22.2%, up 280 basis points compared to second quarter 2024 Income from operations was $71 million, compared to $62 million in second quarter 2024 Adjusted EBITDA was $107 million, or 8.4% of revenue, compared to $77 million, or 8.0% of revenue in second quarter 2024 ADI delivered net revenue of $1,277 million, up $318 million compared to second quarter 2024. Revenue growth was driven by the contribution from Snap One, continuing commercial customer strength across most product categories, and increasing digital channel contributions. On an organic basis, which excludes $218 million of Snap One revenue and the impact of foreign currency, ADI achieved growth of 10%. Organic average daily sales growth was 10% year-over-year. Organic growth in the e-commerce channel was 19% in the second quarter 2025 compared to 6% growth in the prior year period. Exclusive Brands sales grew 32% year-over-year on an organic basis. Gross margin was 22.2%, up 280 basis points compared to second quarter 2024. The increase was driven primarily by the inclusion of Snap One, price increases, and higher margin e-commerce and Exclusive Brands sales. Selling, general and administrative and research and development expenses were $188 million in second quarter 2025, up $70 million compared to prior period, which includes expenses from the inclusion of Snap One and planned investments that we believe will drive future growth. Operating profit of $71 million for second quarter 2025 increased 15% from $62 million in second quarter 2024. Adjusted EBITDA increased to $107 million in second quarter 2025 from $77 million in second quarter 2024, primarily due to the positive contribution from Snap One. Cash Flow and Liquidity Net cash provided by operating activities was $200 million in second quarter 2025 compared to $92 million of cash provided by operating activities in the second quarter 2024. The generation of cash was primarily driven by strong sales and collections. At June 28, 2025, Resideo had cash and cash equivalents of $753 million and total outstanding gross debt of $2.01 billion. Outlook The following table summarizes Resideo's initiated third quarter 2025 and raised full year 2025 outlook: ($ in millions, except per share data) Q3 2025 2025 Net revenue $1,850 - $1,900 $7,450 - $7,550 Non-GAAP Adjusted EBITDA $220 - $240 $845 - $885 Non-GAAP Adjusted Earnings Per Share $0.70 - $0.76 $2.75 - $2.87 Non-GAAP Cash Provided by Operations(3)$405 - $435 (3) Excludes one-time payment to be made to Honeywell upon closing of the transactions contemplating the termination of the Indemnification Agreement. Conference Call and Webcast Details Resideo will hold a conference call with investors on August 5, 2025, at 5:00 p.m. ET. An audio webcast of the call will be accessible at where related materials will be posted before the call. A replay of the webcast will be available following the presentation. To join the conference call, please dial 888-660-6357 (U.S. toll-free) or 1-929-201-6127 (international), with the conference title "Resideo Second Quarter 2025 Earnings" or the conference ID: 7301399. About Resideo Resideo is a leading manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions new devices sold annually. For more information about Resideo and our trusted, well-established brands including First Alert, Honeywell Home, BRK, Control4, and others, visit Contacts:Investors:Media: Christopher T. LeeGarrett Terry Global Head of Strategic FinanceCorporate Communications Manager investorrelations@ Forward-Looking StatementsThis release and the related conference call contain "forward-looking statements." All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the third quarter 2025 and full year 2025, (2) our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint, (3) the amount of our obligations and nature of our contractual restrictions pursuant to, and disputes that have or may hereafter arise under the agreements we entered into with Honeywell in connection with our spin-off, (4) risks related to our recently completed acquisitions, including Snap One, and our ability to achieve the targeted amount of annual cost synergies and successfully integrate the acquired operations (including successfully driving category growth in connected offerings), (5) the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (6) risks and uncertainties relating to tariffs that have been or may be imposed by the United States and other governments, (7) risks related to our anticipated separation of Resideo Technologies' Products & Solutions and ADI Global Distribution businesses into two independent publicly traded companies, including that we may experience operational or other disruptions as a result of the separation and the planning therefor, (8) risks relating to the previously announced agreement with Honeywell to terminate the Indemnification Agreement, including the risk that the transaction is not consummated (including due to the unavailability of the related debt financing) or that, if completed, the transaction does not result in the expected enhancement to Resideo's strategic and financial flexibility or does not result in the expected financial benefits, and (9) the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2024 and other periodic filings we make from time to time with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward looking statements. Use of Non-GAAP MeasuresThis press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G thereunder. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting the financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP at the end of this release. A reconciliation of the forecasted range for Adjusted EBITDA, Adjusted Earnings Per Share and Non-GAAP Cash Provided by Operations for the third quarter of 2025 and for the fiscal period ending December 31, 2025 are not included in this release due to the number of variables in the projected range and because we are currently unable to quantify accurately certain amounts that would be required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors. However, for the third quarter of 2025 and full year 2025 respectively, we anticipate the following expenses in our GAAP to non-GAAP reconciliation: depreciation and amortization of $51 million and $198 million, interest expense, net of $38 million and $136 million, and stock-based compensation expense of $15 million and $61 million. Table 1: SUMMARY OF FINANCIAL RESULTS (UNAUDITED)Q2 2025YTD 2025 (in millions)Products and SolutionsADI Global DistributionCorporateTotal CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company Net revenue$ 666$ 1,277$ —$ 1,943$ 1,315$ 2,398$ —$ 3,713 Cost of goods sold380994—1,3747601,873—2,633 Gross profit286283—569555525—1,080 Research and development expenses329—415917—76 Selling, general and administrative expenses1041793631920535268625 Intangible asset amortization6231301246260 Restructuring, impairment and extinguishment costs21(1)215—6 Income (loss) from operations$ 142$ 71$ (36)$ 177$ 278$ 105$ (70)$ 313 Q2 2024YTD 2024 (in millions)Products and SolutionsADI Global DistributionCorporateTotal CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company Net revenue$ 630$ 959$ —$ 1,589$ 1,250$ 1,825$ —$ 3,075 Cost of goods sold370773(1)1,1427451,483—2,228 Gross profit2601861447505342—847 Research and development expenses21——2146——46 Selling, general and administrative expenses1031185928020022091511 Intangible asset amortization66113129122 Restructuring, impairment and extinguishment costs——1111521118 Income (loss) from operations$ 130$ 62$ (70)$ 122$ 242$ 111$ (103)$ 250 Q2 2025 % change compared with prior periodYTD 2025 % change compared with prior period Products and SolutionsADI Global DistributionCorporateTotal CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company Net revenue6 %33 %N/A22 %5 %31 %N/A21 % Cost of goods sold3 %29 %(100) %20 %2 %26 %N/A18 % Gross profit10 %52 %(100) %27 %10 %54 %N/A28 % Research and development expenses52 %N/AN/A95 %28 %N/AN/A65 % Selling, general and administrative expenses1 %52 %(39) %14 %3 %60 %(25) %22 % Intangible asset amortization— %283 %— %131 %— %411 %100 %173 % Restructuring, impairment and extinguishment costsN/AN/A(109) %(82) %(80) %150 %(100) %(67) % Income (loss) from operations9 %15 %(49) %45 %15 %(5) %(32) %25 % Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months EndedSix Months Ended (in millions, except per share data) June 28, 2025June 29, 2024June 28, 2025June 29, 2024 Net revenue $ 1,943$ 1,589$ 3,713$ 3,075 Cost of goods sold 1,3741,1422,6332,228 Gross profit 5694471,080847 Operating expenses:Research and development expenses 41217646 Selling, general and administrative expenses 319280625511 Intangible asset amortization 30136022 Restructuring, impairment and extinguishment costs 211618 Total operating expenses 392325767597 Income from operations 177122313250 Indemnification Agreement expense (1) 8824797290 Other expenses, net 9115— Interest expense, net 24154928 Net (loss) income before taxes (738)59(723)132 Provision for income taxes 87299659 Net (loss) income (825)30(819)73 Less: preferred stock dividends 82172 Net (loss) income available to common stockholders $ (833)$ 28$ (836)$ 71 (Loss) earnings per common share:Basic $ (5.59)$ 0.19$ (5.65)$ 0.49 Diluted $ (5.59)$ 0.19$ (5.65)$ 0.48 Weighted average common shares outstanding:Basic 149146148146 Diluted 149149148148 (1) Represents the expense incurred pursuant to the Indemnification Agreement, which, prior to its termination, had an annual cash payment cap of $140 million. The following table summarizes information concerning the Indemnification Agreement:Three Months EndedSix Months Ended (in millions) June 28, 2025June 29, 2024June 28, 2025June 29, 2024 Accrual for Indemnification Agreement liabilities deemed probable and reasonably estimable $ 882$ 47$ 972$ 90 Cash payments made to Honeywell (35)(35)(70)(70) Accrual increase, non-cash component in period $ 847$ 12$ 902$ 20 Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED)(in millions, except par value) June 28, 2025December 31, 2024 ASSETSCurrent assets:Cash and cash equivalents $ 753$ 692 Accounts receivable, net 1,1351,023 Inventories, net 1,2591,237 Other current assets 245220 Total current assets 3,3923,172 Property, plant and equipment, net 426410 Goodwill 3,1263,072 Intangible assets, net 1,1371,176 Other assets 434369 Total assets $ 8,515$ 8,199 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:Accounts payable $ 1,102$ 1,073 Accrued liabilities 655577 Current obligations payable under the Indemnification Agreement 1,625140 Total current liabilities 3,3821,790 Long-term debt 1,9831,983 Non-current obligations payable under the Indemnification Agreement —583 Other liabilities 536534 Total liabilities 5,9014,890 COMMITMENTS AND CONTINGENCIESStockholders' equityPreferred stock, $0.001 par value: 100 shares authorized, 0.5 shares issued and outstanding at June 28, 2025 and December 31, 2024 482482 Common stock, $0.001 par value: 700 shares authorized, 156 and 149 shares issued and outstanding at June 28, 2025, respectively, and 154 and 147 shares issued and outstanding at December 31, 2024, respectively —— Additional paid-in capital 2,3492,315 Retained earnings 71907 Accumulated other comprehensive loss, net (161)(284) Treasury stock at cost (127)(111) Total stockholders' equity 2,6143,309 Total liabilities and stockholders' equity $ 8,515$ 8,199 Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months EndedSix Months Ended (in millions) June 28, 2025June 29, 2024June 28, 2025June 29, 2024 Cash Flows From Operating Activities:Net (loss) income $ (825)$ 30$ (819)$ 73 Adjustments to reconcile net (loss) income to net cash in operating activities:Depreciation and amortization 49289652 Restructuring, impairment and extinguishment costs 211618 Stock-based compensation expense 15153029 Other, net 2(4)8(1) Changes in assets and liabilities, net of acquired companies:Accounts receivable, net (72)(91)(85)(57) Inventories, net (13)(11)4(4) Other current assets (35)6(26)9 Accounts payable 10975831 Accrued liabilities 1851173(78) Obligations payable under the Indemnification Agreement 8471290220 Other, net (64)10(62)2 Net cash provided by operating activities 2009213594 Cash Flows From Investing Activities:Acquisitions, net of cash acquired —(1,334)—(1,334) Capital expenditures (20)(15)(51)(36) Other investing activities, net —7—6 Net cash used in investing activities (20)(1,342)(51)(1,364) Cash Flows From Financing Activities:Proceeds from issuance of long-term debt, net —582—582 Proceeds from issuance of preferred stock, net of issuance costs —482—482 Repayments of long-term debt (2)(3)(2)(6) Acquisition of treasury shares to cover stock award tax withholding (1)(2)(16)(9) Preferred stock dividend payments (8)—(17)— Other financing activities, net —123 Net cash (used in) provided by financing activities (11)1,060(33)1,052 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 7—10(5) Net increase (decrease) in cash, cash equivalents and restricted cash 176(190)61(223) Cash, cash equivalents and restricted cash at beginning of period 578604693637 Cash, cash equivalents and restricted cash at end of period $ 754$ 414$ 754$ 414 NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED NET INCOME PER DILUTED COMMON SHARE AND NET INCOME COMPARISON (Unaudited)RESIDEO TECHNOLOGIES, Months EndedSix Months Ended (in millions, except per share data) June 28, 2025June 29, 2024June 28, 2025June 29, 2024 GAAP Net (loss) income $ (825)$ 30$ (819)$ 73 Less: preferred stock dividends 82172 GAAP Net (loss) income available to common stockholders (833)28(836)71 Indemnification Agreement accrual increase, non-cash component (1) 8471290220 One-time tax impact of Indemnification Agreement 42—42— Intangible asset amortization 30136022 Stock-based compensation expense 15153029 Acquisition and integration costs 334434 Restructuring, impairment and extinguishment costs 211618 Other (2) 8114(1) Tax effect of applicable non-GAAP adjustments (3) (15)(22)(29)(31) Non-GAAP Adjusted net income $ 99$ 92$ 193$ 162Three Months EndedSix Months EndedJune 28, 2025June 29, 2024June 28, 2025June 29, 2024 GAAP Net (loss) income per diluted common share $ (5.59)$ 0.19$ (5.65)$ 0.48 Indemnification Agreement accrual increase, non-cash component (1) 5.610.085.970.14 One-time tax impact of Indemnification Agreement 0.28—0.28— Intangible asset amortization 0.200.090.400.15 Stock-based compensation expense 0.100.100.200.20 Impact of incremental dilutive shares 0.07—0.11— Acquisition and integration costs 0.020.230.030.23 Restructuring, impairment and extinguishment costs 0.010.070.040.12 Other (2) 0.060.010.09(0.01) Tax effect of applicable non-GAAP adjustments (3) (0.10)(0.15)(0.19)(0.22) Non-GAAP Adjusted net income per diluted common share $ 0.66$ 0.62$ 1.28$ 1.09 (1) Refer to the Unaudited Consolidated Statements of Operations herein. (2) For 2025 periods, other includes net periodic benefit costs, excluding service costs, foreign exchange transaction loss (income), and miscellaneous non-operating expenses. For 2024 periods, other includes loss on sale of assets, litigation settlement, gain on sale of investments, and foreign exchange transaction loss (income). (3) In calculating the tax effect of relevant non-GAAP adjustments, we applied a flat statutory tax rate of 25% for all adjustments prior to 2025. Beginning in 2025, we adjusted our methodology to exclude the tax effect of adjustments that are non-deductible or non-taxable; however, we did not recast historical data. The impact of this change on non-GAAP adjusted net income available to common shareholders and non-GAAP adjusted net income per diluted common share would have resulted in an increase of $3 million and $0.02, respectively, for the three months ended June 29, 2024 and an increase of $5 million and $0.03, respectively, for the six months ended June 29, 2024. NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED EBITDA AND NET INCOME COMPARISON (Unaudited)RESIDEO TECHNOLOGIES, INC. Three Months EndedSix Months Ended (in millions) June 28, 2025June 29, 2024June 28, 2025June 29, 2024 Net revenue $ 1,943$ 1,589$ 3,713$ 3,075 GAAP Net (loss) income $ (825)$ 30$ (819)$ 73 GAAP Net (loss) income as a % of net revenue (42.5) %1.9 %(22.1) %2.4 % Provision for income taxes 87299659 GAAP (Loss) income before taxes (738)59(723)132 Indemnification Agreement accrual increase, non-cash component (1) 8471290220 Depreciation and amortization 49289652 Interest expense, net 24154928 Stock-based compensation expense 15153029 Restructuring, impairment and extinguishment costs 211618 Acquisition and integration costs 334434 Other (2) 8114(1) Non-GAAP Adjusted EBITDA $ 210$ 175$ 378$ 312 Non-GAAP Adjusted EBITDA as a % of net revenue 10.8 %11.0 %10.2 %10.1 % (1) Refer to the Unaudited Consolidated Statements of Operations herein. (2) For 2025 periods, other includes net periodic benefit costs, excluding service costs, foreign exchange transaction loss (income), and miscellaneous non-operating expenses. For 2024 periods, other includes loss on sale of assets, litigation settlement, gain on sale of investments, and foreign exchange transaction loss (income). NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Unaudited)PRODUCTS AND SOLUTIONS SEGMENT Three Months EndedSix Months Ended (in millions) June 28, 2025June 29, 2024June 28, 2025June 29, 2024 Net revenue $ 666$ 630$ 1,315$ 1,250 GAAP Income from operations $ 142$ 130$ 278$ 242 GAAP Income from operations as a % of net revenue 21.3 %20.6 %21.1 %19.4 % Stock-based compensation expense 44910 Restructuring expenses 2—15 Other (1) —4—4 Non-GAAP Adjusted Income from Operations $ 148$ 138$ 288$ 261 Depreciation and amortization 19183735 Non-GAAP Adjusted EBITDA $ 167$ 156$ 325$ 296 Non-GAAP Adjusted EBITDA as a % of net revenue 25.1 %24.8 %24.7 %23.7 % (1) For 2024 periods, other includes litigation settlements. ADI GLOBAL DISTRIBUTION SEGMENT Three Months EndedSix Months Ended (in millions) June 28, 2025June 29, 2024June 28, 2025June 29, 2024 Net revenue $ 1,277$ 959$ 2,398$ 1,825 GAAP Income from operations $ 71$ 62$ 105$ 111 GAAP Income from operations as a % of net revenue 5.6 %6.5 %4.4 %6.1 % Stock-based compensation expense 5395 Restructuring expenses 1—52 Acquisition and integration costs 3444 Other (1) (1)——— Non-GAAP Adjusted Income from Operations $ 79$ 69$ 123$ 122 Depreciation and amortization 2885613 Non-GAAP Adjusted EBITDA $ 107$ 77$ 179$ 135 Non-GAAP Adjusted EBITDA as a % of net revenue 8.4 %8.0 %7.5 %7.4 % (1) For 2025 periods, other includes miscellaneous non-operating expenses. View original content to download multimedia: SOURCE Resideo Technologies, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-07-2025
- Business
- Yahoo
Gencor Releases First Quarter Fiscal 2025 Results
ORLANDO, Fla., July 25, 2025 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the 'Company' or 'Gencor') (NYSE American: GENC) announced today net revenue for the quarter ended December 31, 2024 of $31,416,000 increased 20.7% over net revenue for the quarter ended December 31, 2023 of $26,018,000. Revenue from contract equipment sales recognized over time increased significantly and was slightly offset by a decrease in parts sales. As a percent of sales, gross profit margins were 27.6% in the quarter ended December 31, 2024, compared to 29.0% in the quarter ended December 31, 2023 due to a smaller contribution of parts sales to total sales in the quarter ended December 31, 2024. Product engineering and development expenses decreased $124,000 to $677,000 for the quarter ended December 31, 2024, as compared to $801,000 for the quarter ended December 31, 2023, due to lower headcount. Selling, general and administrative ('SG&A') expenses increased slightly to $3,367,000 for the quarter ended December 31, 2024, compared to $3,350,000 for the quarter ended December 31, 2023. The Company had operating income of $4,624,000 for the quarter ended December 31, 2024 as compared to $3,383,000 for the quarter ended December 31, 2023. The increased operating income was due primarily to higher net revenues for the quarter ended December 31, 2024. For the quarter ended December 31, 2024, the Company had net other income of $534,000 compared to $2,235,000 for the quarter ended December 31, 2023. Higher yields negatively impacted the value of our bond holdings. Included in net other income for the quarter ended December 31, 2024 were net realized and unrealized losses on marketable securities of ($455,000) compared to net realized and unrealized gains of $1,519,000 for the quarter ended December 31, 2023. The effective income tax rates for the quarters ended December 31, 2024 and December 31, 2023 were 26.0% and 23.0%, respectively. Net income for the quarter ended December 31, 2024 was $3,817,000, or $0.26 per basic and diluted common share, compared to net income of $4,326,000, or $0.30 per basic and diluted common share for the quarter ended December 31, 2023. At December 31, 2024, the Company had $130.1 million of cash and cash equivalents and marketable securities compared to $115.4 million at September 30, 2024. Net working capital was $186.5 million at December 31, 2024 compared to $182.2 million at September 30, 2024. The Company had no short-term or long-term debt outstanding at December 31, 2024. The Company's backlog was $54.4 million at December 31, 2024 compared to $61.3 million at December 31, 2023. Gencor Industries, Inc. is a diversified heavy machinery manufacturer for the production of highway construction materials and equipment and environmental control machinery and equipment used in a variety of applications. GENCOR INDUSTRIES, Consolidated Income StatementsFor the Quarters Ended December 31, 2024 and 2023 2024 2023 Net revenue $ 31,416,000 $ 26,018,000 Cost of goods sold 22,748,000 18,484,000 Gross profit 8,668,000 7,534,000 Operating expenses: Product engineering and development 677,000 801,000 Selling, general and administrative 3,367,000 3,350,000 Total operating expenses 4,044,000 4,151,000 Operating income 4,624,000 3,383,000 Other income, net: Interest and dividend income, net of fees 989,000 716,000 Realized and unrealized gains (losses) on marketable securities, net (455,000 ) 1,519,000 Total other income, net 534,000 2,235,000 Income before income tax expense 5,158,000 5,618,000 Income tax expense 1,341,000 1,292,000 Net income $ 3,817,000 $ 4,326,000 Net income per common share – basic and diluted $ 0.26 $ 0.30GENCOR INDUSTRIES, Consolidated Balance Sheets ASSETS December 31, 2024 September 30, 2024 Current assets: Cash and cash equivalents $ 39,972,000 $ 25,482,000 Marketable securities at fair value (cost of $89,550,000 at December 31, 2024 and $88,777,000 at September 30, 2024) 90,133,000 89,927,000 Accounts receivable, less allowance for credit losses of $425,000 at December 31, 2024 and $390,000 at September 30, 2024 3,596,000 1,980,000 Contract assets 7,921,000 9,339,000 Inventories, net 59,668,000 63,762,000 Prepaid expenses 1,825,000 2,352,000 Total current assets 203,115,000 192,842,000 Property and equipment, net 11,169,000 11,472,000 Deferred income taxes 3,572,000 3,424,000 Other long-term assets 294,000 383,000 Total Assets $ 218,150,000 $ 208,121,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,720,000 $ 2,001,000 Customer deposits 7,407,000 5,018,000 Contract liabilities 2,157,000 - Accrued expenses 3,136,000 3,255,000 Current operating lease liabilities 241,000 330,000 Total current liabilities 16,661,000 10,604,000 Unrecognized tax benefits 1,531,000 1,376,000 Total liabilities 18,192,000 11,980,000 Commitments and contingencies Shareholders' equity: Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued - - Common stock, par value $.10 per share; 15,000,000 shares authorized; 12,338,845 shares issued and outstanding at December 31, 2024 and September 30, 2024 1,234,000 1,234,000 Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,318,857 shares issued and outstanding at December 31, 2024 and September 30, 2024 232,000 232,000 Capital in excess of par value 12,590,000 12,590,000 Retained earnings 185,902,000 182,085,000 Total shareholders' equity 199,958,000 196,141,000 Total Liabilities and Shareholders' Equity $ 218,150,000 $ 208,121,000 Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain certain 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'), including statements about the Company's beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. The Company's actual results may differ materially from those set forth in the Company's forward-looking statements depending on a variety of important factors, including the financial condition of the Company's customers, changes in the economic and competitive environments, demand for the Company's products and the timing and consequences of the delays in the Company's regaining compliance with its SEC filing obligations. In addition, the impact of (i) the U.S. government's recent tariff announcements, (ii) the invasion by Russia into Ukraine, and (iii) the conflict between Israel and Hamas, including hostilities involving Iran, as well as actions taken by other countries, including the U.S., in response to such tariff announcements and conflicts, could result in a disruption in our supply chain and higher costs of our products. The words 'may,' 'could,' 'should,' 'would,' 'believe,' 'anticipate,' 'estimate,' 'expect,' 'intend,' 'plan,' 'target,' 'goal,' and similar expressions are intended to identify forward-looking statements. For information concerning these factors and related matters, see the following sections of the Company's Annual Report on Form 10-K for the year ended September 30, 2024: (a) Part I, Item 1A, 'Risk Factors' and (b) Part II, Item 7, 'Management's Discussion and Analysis of Financial Condition and Results of Operations'. However, other factors besides those referenced could adversely affect the Company's results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this press release. The Company does not undertake to update any forward-looking statements, except as required by law. Unless the context otherwise indicates, all references in this press release to the 'Company,' 'Gencor,' 'we,' 'us,' or 'our,' or similar words are to Gencor Industries, Inc. and its subsidiaries. Contact: Eric Mellen, Chief Financial Officer 407-290-6000Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
17-07-2025
- Business
- Bloomberg
Vital Farms Lures US Egg Farmers With Higher Prices, Incentives
The largest brand of pasture-raised eggs in the US is trying to bring in more farmers, including by helping cover construction costs that could rise because of tariffs. Vital Farms Inc. now sources from 500 farms, up from 300 at the end of 2023, the company announced Thursday. That marks the biggest expansion yet, but it still isn't enough as the company eyes a $1 billion net revenue target in 2027, Chief Executive Officer Russell Diez-Canseco said.
Yahoo
25-06-2025
- Business
- Yahoo
TD Synnex Corp (SNX) Q2 2025 Earnings Call Highlights: Strong Growth Amid Cautious Outlook
Gross Billings: $21.6 billion, up 12% year over year. Net Revenue: $14.9 billion, up 7% year over year. Gross Profit: $1 billion, up 7% year over year. Gross Margin: 5% of gross billings, a decline of 21 basis points year over year. Non-GAAP Operating Income: $414 million, up 7% year over year. Non-GAAP Net Income: $251 million. Non-GAAP Diluted EPS: $2.99, above the upper end of guidance. Free Cash Flow: Approximately $543 million. Shareholder Returns: $186 million returned, including $149 million in share repurchases and $37 million in dividends. Cash and Cash Equivalents: $767 million. Debt: $4.1 billion. Gross Leverage Ratio: 2.4 times. Net Leverage Ratio: 1.9 times. Warning! GuruFocus has detected 5 Warning Signs with SNX. Release Date: June 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TD Synnex Corp (NYSE:SNX) reported a strong second quarter with gross billings growing 12% year over year, exceeding the high end of their guidance. The company experienced significant growth in software billings, particularly in cloud, cybersecurity, and infrastructure software, with a 20% increase. TD Synnex Corp (NYSE:SNX) was recognized with over 40 honors in the channel, including being named HPE's global distribution partner of the year. The company achieved a four-day improvement in its cash conversion cycle and generated approximately $543 million in free cash flow for the quarter. TD Synnex Corp (NYSE:SNX) continues to see strong growth in PCs, driven by the refresh cycle, and has also seen a return to growth in networking after multiple weak quarters. Despite strong growth, TD Synnex Corp (NYSE:SNX) is cautious about the macroeconomic environment, including potential impacts from global trade developments and geopolitical tensions. Gross margins declined by 21 basis points year over year, primarily due to unrealized FX losses and program mix. The company noted a demand pull forward, particularly in PCs, which may impact future quarters' performance. Interest expenses and finance charges were slightly higher than expectations, impacting overall financial performance. There is uncertainty regarding the impact of tariffs and other economic factors, leading to a cautious outlook for the second half of the year. Q: Can you provide more details on the demand pull forward noted in your remarks, particularly regarding PCs, and any financial impacts? A: Patrick Zammit, CEO: We saw some demand pull forward, particularly in PCs, which benefited from $100 million to $200 million in sales. The demand for PCs remains strong, driven by the refresh cycle and Windows 11 upgrades. Marshall Witt, CFO: The pull forward contributed approximately $10 million in gross profit. We expect the ES and AS mix to remain balanced in the second half. Q: Given the pull-forward dynamic and typical public sector strength in Q3, why does the Q3 guidance appear sub-seasonal? A: Marshall Witt, CFO: We are being prudent due to expected demand softening in the second half, consistent with our Analyst Day outlook. We anticipate 3% to 4% growth in Q4, with typical seasonality. Patrick Zammit, CEO: We remain positive on public sector prospects, especially in the Fed business, but are cautious due to macroeconomic uncertainties. Q: Can you elaborate on the demand linearity during the quarter and any notable trends in AS or ES? A: Marshall Witt, CFO: We saw strong growth in March and April, with some softening in May. Overall, it was a solid quarter. Hyve performed exceptionally well, growing in the high teens. Patrick Zammit, CEO: Software, public cloud, and security remain strong. PCs continue to benefit from the refresh cycle, and networking has returned to growth. Q: Are you seeing any current weaknesses in regions or product lines, or is it more about macroeconomic concerns? A: Patrick Zammit, CEO: Currently, everything is in line with our guidance. We are cautious due to potential impacts from tariffs and geopolitical issues, but no immediate concerns have arisen. Q: Can you discuss the strong growth in Hyve and its impact on margins? A: Patrick Zammit, CEO: Hyve saw strong growth, particularly in the ODM/CM segment, driven by our largest customer. Demand from a second customer has returned. Marshall Witt, CFO: Margins were impacted by unrealized FX losses, which we expect to recover. The mix of programs also affected margins, but we anticipate improvement in Q3. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
