Gencor Industries (GENC) Q4 EPS Slowdown Tests Bullish High-Growth Narrative

Gencor Industries (GENC) has just wrapped up FY 2025 with fourth quarter revenue of about $18.8 million and EPS of roughly $0.13, rounding out a year where trailing twelve month EPS reached $1.07 on $115.4 million of revenue. Over the past few quarters the company has seen revenue move from $20.9 million in Q4 2024 to $31.4 million, $38.2 million, $27.0 million, and then $18.8 million, while EPS shifted from $0.10 to $0.26, $0.42, $0.26, and $0.13. This gives investors a clear view of how the top and bottom lines have tracked together as margins held in a solid range.

See our full analysis for Gencor Industries.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the most common narratives around Gencor. This highlights where the story is confirmed and where the latest margins driven reality might push investors to rethink their assumptions.

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Margins Hold Steady Around 13.6%

• Over the last 12 months, net profit margin was 13.6% on $115.4 million of revenue and $15.7 million of net income, compared with 12.9% a year earlier.
• Bulls point to this stable margin profile as evidence of operational strength, yet the 7.6% earnings growth over the year is noticeably lower than the 31.6% average annual growth over five years, which suggests recent performance has been solid but not as explosive as the longer term might imply.
  • Supporters can highlight that margins held in the mid teens even as quarterly revenue moved from $38.2 million in Q2 2025 down to $18.8 million in Q4 2025.
  • At the same time, critics of a stronger bullish story can note that trailing EPS of $1.07 is only modestly higher than the $0.99 to $1.11 range seen over the past several rolling 12 month periods.

Valuation Discount With 11.5x P/E

• The shares trade on a P/E of 11.5 times trailing earnings, which is below the US machinery industry at 25.1 times, below peers at 22.1 times, and below the broader US market at 18.6 times.
• Value oriented bulls argue that this gap offers upside, and the combination of 7.6% trailing earnings growth with a five year earnings growth rate of 31.6% a year heavily supports the case that investors are paying a comparatively low multiple for a business that has grown meaningfully in the past.
  • The contrast between the current $12.30 share price and the earnings base of $1.07 per share underlines that investors are paying roughly eleven and a half dollars for each dollar of trailing profit while many peers trade at roughly double that level or more.
  • What stands out for potential buyers is that this lower multiple sits alongside an assessment of high earnings quality rather than being paired with flagged concerns about how those profits were generated.

Over the last year, bulls see a machinery name growing earnings and improving margins while still priced well below sector averages on an 11.5x P/E, and they are asking whether this discount can last if execution continues. 🐂 Gencor Industries Bull Case

Earnings Growth Slows From 31.6% Trend

• Trailing 12 month earnings grew 7.6% compared with the prior period, which is well below the five year average earnings growth rate of 31.6% per year.
• More cautious investors question how repeatable the faster historical growth is, noting that the recent 7.6% increase in earnings came alongside quarterly revenue that has moved from $31.4 million in Q1 2025 to $38.2 million in Q2 2025, then down to $27.0 million and $18.8 million in Q3 and Q4 respectively, which illustrates that performance can move around from period to period even when the trailing margin and profit picture looks stable.
  • Skeptics highlight that EPS in the latest quarter was $0.13 compared with $0.42 in Q2 2025 and $0.26 in both Q1 and Q3 2025, emphasizing that the strong annual average growth rate includes some very profitable quarters that may not occur every period.
  • From this perspective, the 7.6% trailing earnings growth rate gives a more measured picture than the 31.6% multi year average, reminding investors that the business has historically grown quickly but also experiences noticeable swings from quarter to quarter.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Gencor Industries's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

While Gencor shows solid margins and a low earnings multiple, its slowing growth and choppy quarter to quarter results may concern investors seeking consistency.

If you want steadier performers, use our stable growth stocks screener (2093 results) today to quickly zero in on companies delivering more predictable revenue and earnings momentum than Gencor currently offers.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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