Taylor Devices, Inc. (TAYD) reported a significant drop in stock price by 20.2% following its earnings report for the fiscal third quarter ending February 28, 2026, underperforming the S&P 500 index, which declined by 3.9% during the same period. Despite posting earnings per share of 79 cents, up from 64 cents a year prior, the company saw its stock decline 31.1% over the past month, further indicating investor skepticism.
Key financial metrics include a net income rise to $2.5 million from $2 million, and net sales increasing to $11.2 million, a 6% year-over-year growth. Performance was affected by a 13% drop in revenue from long-term projects, while revenue from shorter-duration projects surged by 37%, with aerospace and defense now comprising 77% of sales, up from 55% the previous year. Additionally, the company’s backlog decreased to $20.8 million from $33.3 million year-over-year, raising concerns about future revenue prospects.
Despite revenue growth, gross profit slightly declined to $4.49 million, leading to a reduction in gross margin from 43% to 40%. The company did benefit from reduced costs in selling, general, and administrative expenses, which fell by 11% year-over-year. Cash flow from operations improved to $7.1 million, up from $5.5 million the previous year, thanks to favorable working capital adjustments.
