Taylor Devices, Inc. (NASDAQ: TAYD) reported first quarter sales of $7.3 million, down from $9.9 million in the same quarter last year, the North Tonawanda, New York, company said Oct. 2. The quarter ended Aug. 31 and marked the first three months of the company's fiscal year 2027.
The sales decline represented a drop of about 26% from the prior-year quarter.
Net earnings for the quarter fell to $456,933, down from $2.19 million in the same period last year, a decline of about 79%.
Earnings per share for the quarter were $0.14, compared with $0.70 in the same period last year.
Shares outstanding rose to 3,227,434 from 3,146,140 a year earlier.
#Sales Recognition Timing Pushed Results Into First Quarter, CEO Says
CEO Tim Sopko attributed the sales decline largely to timing. The company closed fiscal 2026 with a then-record backlog of $52.8 million, and Sopko said much of that backlog arrived late in the fiscal fourth quarter, pushing the associated sales recognition out of the first quarter of fiscal 2027 and into a later period.
"While we finished last fiscal year, FY26, with a record high backlog of $52.8M, the fact that much of it arrived later in FY26 Q4 ended up pushing the associated sales recognition out of this quarter, FY27 Q1," Sopko said in the earnings release.
Sopko said the lower sales volume also weighed on profitability. He said product sales mix, including spending tied to new product development efforts, further pressured the company's margin performance during the quarter.
#Structural Market Headwinds Persist While Aerospace and Defense Demand Grows
Sopko said market dynamics remained largely unchanged from recent quarters. He said the company's structural markets continued to face headwinds from higher interest rates and unfavorable foreign exchange rates.
The company's aerospace and defense markets, in contrast, benefited from tailwinds that Sopko attributed to world unrest. He did not specify which programs or customers drove that demand, or quantify the size of the benefit.
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#Order Backlog Climbs to New High of $55.2 Million
Sopko said order intake was robust in the quarter, with all three of the company's product groups contributing. The firm order backlog reached $55.2 million, up from $52.8 million at the end of fiscal 2026, an increase of about $2.4 million and a new record for the company.
Taylor Devices is a 71-year-old company that designs, develops and manufactures shock absorption, rate control and energy storage devices used in vehicles, machinery, equipment and structures. The company has said it is targeting growth in the domestic aerospace and defense market as well as the global structural construction and industrial markets.
The backlog increase comes as the company's two end markets are moving in different directions, according to Sopko's comments in the release. Structural end markets remain pressured by interest rate and currency conditions, while aerospace and defense demand has strengthened over the same period. The gap between a record backlog and lower current-quarter sales illustrates a timing dynamic common to equipment makers with long order-to-delivery cycles, where orders booked in one period are not recognized as revenue until a later period. At $55.2 million, the backlog is now more than seven times the company's reported first quarter sales.
Sopko said the company's structural segment remains subject to continued interest rate and foreign exchange pressure, and that margin performance could keep facing challenges tied to product mix and new product development spending. He did not say when those pressures might ease.
Sopko said the company remains focused on its growth strategies as fiscal 2027 continues, supported by continued investment in its workforce, research and development, and facilities. He did not provide specific sales or earnings guidance for the current fiscal year.