TAYLOR DEVICES, INC.
For the period ended Feb 28, 2026. Filed Mar 31, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Feb 28, 2026 · Filed Mar 31, 2026
TAYD$56.87+3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-11-30; filed 2025-12-31.
0001376474-25-000988
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-02-28; filed 2026-03-31.
0001376474-26-000254
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 54 previous paragraphs and 54 current paragraphs.
29 unchanged; 22 reworded; 2 added; 2 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Research and development costs increased $39,000 from the same period in the prior year.
Current report
Research and development costs decreased $84,000 from the prior year.
Removed paragraphs (2)
Previous report
Research and development costs increased $123,000 from the same period in the prior year.
Previous report
Research and development costs increased $111,000 from the prior year.
Reworded paragraphs (22)
Previous wording
For the six months ended November 30, 2025(All figures discussed are for the six months ended November 30, 2025, as compared to the six months ended November 30, 2024).
Current wording
For the nine months ended February 28, 2026(All figures discussed are for the nine months ended February 28, 2026, as compared to the nine months ended February 28, 2025).
Previous wording
The Company's consolidated results of operations showed a 7% increase in net revenue and a 13% increase in net income. Revenue recorded in the six-month period ended November 30, 2025 for long-term projects was 9% lower than the level recorded in the prior year. The Company had 31 long-term projects in process during the six-month period ended November 30, 2025 as compared to 27 during the same period last year. Revenue recorded in the six-month period ended November 30, 2025 for other-than long-term projects was 34% higher than the level recorded in the prior year. Total sales within the U.S. during the six-month period ended November 30, 2025 increased 15% from the same period last year. Total sales outside the U.S. during the six-month period ended November 30, 2025 decreased 32% from the same period of the prior year. The shift in domestic and international sales concentration from the prior year is attributable to normal changes in structural project activity. Sales increases were recorded over the same period last year to customers involved in construction of buildings and bridges (4%) and aerospace / defense (9%) as well as industrial customers (1%). The increase in sales from the prior year is attributable to differences in the timing of backlog conversion to revenue.
Current wording
The Company's consolidated results of operations showed a 6% increase in net revenue and a 17% increase in net income. Revenue recorded in the nine-month period ended February 28, 2026 for long-term projects was 11% lower than the level recorded in the prior year. The Company had 37 long-term projects in process during the nine-month period ended February 28, 2026 as compared to 31 during the same period last year. Revenue recorded in the nine-month period ended February 28, 2026 for other-than long-term projects was 35% higher than the level recorded in the prior year. Total sales within the U.S. during the nine-month period ended February 28, 2026 increased 12% from the same period last year. Total sales outside the U.S. during the nine-month period ended February 28, 2026 decreased 21% from the same period of the prior year. The shift in domestic and international sales concentration from the prior year is attributable to normal changes in structural project activity. Sales increases were recorded over the same period last year to aerospace / defense customers (22%) with decreases to customers involved in construction of buildings and bridges (-16%) and industrial customers (-12%). The increase in total sales from the prior year is attributable to differences in the timing of backlog conversion to revenue.
Previous wording
The gross profit as a percentage of net revenue of 46% in the six-month period ended November 30, 2025 is one percentage point lower than the same period of the prior year (47%).
Current wording
The gross profit as a percentage of net revenue of 44% in the nine-month period ended February 28, 2026 is one percentage point lower than the same period of the prior year (45%).
Previous wording
At November 30, 2024, the Company had 156 open sales orders in its backlog with a total sales value of $34.5 million. At November 30, 2025, the Company had 134 open sales orders in its backlog with a total sales value of $25.1 million. The Company expects to recognize revenue for the majority of the backlog during fiscal years 2026 and 2027.
Current wording
At February 28, 2025, the Company had 146 open sales orders in its backlog with a total sales value of $33.3 million. At February 28, 2026, the Company had 116 open sales orders in its backlog with a total sales value of $20.8 million. The Company expects to recognize revenue for the majority of the backlog during fiscal years 2026 and 2027.
Previous wording
The Company's backlog, revenues, gross profits, and net income fluctuate from period to period. The changes in the six-month period ended November 30, 2025, compared to the same period in the prior year, are not necessarily representative of future results.
Current wording
The Company's backlog, revenues, gross profits, and net income fluctuate from period to period. The changes in the nine-month period ended February 28, 2026, compared to the same period in the prior year, are not necessarily representative of future results.
Previous wording
Net revenue by geographic region, as a percentage of total net revenue for the six-month periods ended November 30, 2025 and November 30, 2024, is as follows:
Current wording
Net revenue by geographic region, as a percentage of total net revenue for the nine-month periods ended February 28, 2026 and February 28, 2025, is as follows:
Previous wording
Selling, general and administrative expenses during the six-month period ended November 30, 2025 decreased by 4% from the same period in the prior year. This change is primarily due to lower employee incentive compensation accruals. The Company expenses stock options using the fair value recognition provisions of the Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”). The Company recognized $800,000 (47,850 options granted) and $731,000 (46,800 options granted) of compensation cost for the six-month periods ended November 30, 2025 and November 30, 2024, respectively.
Current wording
Selling, general and administrative expenses during the nine-month period ended February 28, 2026 decreased by 6% from the same period in the prior year. This change is primarily due to lower employee incentive compensation accruals. The Company expenses stock options using the fair value recognition provisions of the Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”). The Company recognized $800,000 (47,850 options granted) and $731,000 (46,800 options granted) of compensation cost for the nine-month periods ended February 28, 2026 and February 28, 2025, respectively.
Previous wording
Operating income was $4,475,000 for the six-month period ended November 30, 2025, higher than $3,849,000 in the same period of the prior year. The increase in operating income is attributable to higher gross margin associated with increased revenue.
Current wording
Operating income was $6,790,000 for the nine-month period ended February 28, 2026, higher than $5,869,000 in the same period of the prior year. The increase in operating income is attributable to increased revenue and lower selling, general and administrative expenses.
Previous wording
Other income was $808,000 for the six-month period ended November 30, 2025, an 18% increase from the same period of the prior year. This increase was driven by short-term investment interest income.
Current wording
Other income was $1,231,000 for the nine-month period ended February 28, 2026, a 22% increase from the same period of the prior year. This increase was driven by short-term investment interest income.
Previous wording
The Company's consolidated results of operations showed a 36% increase in net revenue and 90% increase in net income. Revenue recorded in the quarter ended November 30, 2025 for long-term projects was 7% higher than the level recorded in the prior year. The Company had 25 long-term projects in process during the quarter ended November 30, 2025 as compared to 22 during the same period last year. Revenue recorded in the quarter ended November 30, 2025 for other-than long-term projects was 91% higher than the level recorded in the prior year. Total sales within the U.S. during the quarter ended November 30, 2025 increased 45% from the same period last year. Total sales outside the U.S. during the quarter ended November 30, 2025 decreased 30% from the same period of the prior year. The shift in domestic and international sales concentration from the prior year is attributable to normal changes in structural project activity. Sales to customers involved in the construction of buildings and bridges decreased 6% while sales increases were recorded over the same period last year to customers in aerospace / defense (58%), and industrial customers (29%). The increases in sales from the prior year is attributable to differences in the timing of backlog conversion to revenue.
Current wording
The Company's consolidated results of operations showed a 6% increase in net revenue and 25% increase in net income. Revenue recorded in the quarter ended February 28, 2026 for long-term projects was 13% lower than the level recorded in the prior year. The Company had 23 long-term projects in process during the quarter ended February 28, 2026 as compared to 21 during the same period last year. Revenue recorded in the quarter ended February 28, 2026 for other-than long-term projects was 37% higher than the level recorded in the prior year. Total sales within the U.S. during the quarter ended February 28, 2026 increased 6% from the same period last year. Total sales outside the U.S. during the quarter ended February 28, 2026 increased 4% from the same period of the prior year. The shift in domestic and international sales concentration from the prior year is attributable to normal changes in structural project activity. Sales increases were recorded over the same period last year to aerospace / defense customers (47%) with decreases to customers involved in construction of buildings and bridges (-49%) and industrial customers (-35%). The increases in total sales from the prior year is attributable to differences in the timing of backlog conversion to revenue.
Previous wording
The gross profit as a percentage of net revenue of 47% in the quarter ended November 30, 2025 is two percentage points higher than the same period of the prior year (45%).
Current wording
The gross profit as a percentage of net revenue of 40% in the quarter ended February 28, 2026 is three percentage points lower than the same period of the prior year (43%).
Previous wording
Operating income was $2,229,000 for the three months ended November 30, 2025, higher than $944,000 in the same period of the prior year. The increase in operating income is attributable to higher gross margin associated with increased revenue.
Current wording
Operating income was $2,316,000 for the three months ended February 28, 2026, higher than $2,020,000 in the same period of the prior year. The increase in operating income is attributable to lower selling, general and administrative expenses.
Previous wording
Other income was $424,000 for the three months ended November 30, 2025, a 38% increase from the same period of the prior year. This increase was driven by short-term investment interest income.
Current wording
Other income was $422,000 for the three months ended February 28, 2026, a 30% increase from the same period of the prior year. This increase was driven by short-term investment interest income.
Previous wording
Capital expenditures for the six-month period ended November 30, 2025 were $1,491,000 compared to $971,000 in the same period of the prior year. As of November 30, 2025, the Company has commitments for capital expenditures totaling $1,732,000 during the next twelve months. The Company is evaluating additional capital expenditures to expand capacity.
Current wording
Capital expenditures for the nine-month period ended February 28, 2026 were $2,006,000 compared to $1,158,000 in the same period of the prior year. As of February 28, 2026, the Company has commitments for capital expenditures totaling $1,610,000 during the next twelve months. The Company is evaluating additional capital expenditures to expand capacity.
Previous wording
NOTE: Inventory turnover is annualized for the six-month period ended November 30, 2025.
Current wording
NOTE: Inventory turnover is annualized for the nine-month period ended February 28, 2026.
Previous wording
Inventory, at $7,867,000 as of November 30, 2025, is $246,000 lower than the prior year-end level of $8,113,000. As of November 30, 2025, approximately 88% of the inventory was work-in-process, 5% was finished goods, and 7% was raw materials.
Current wording
Inventory, at $7,481,000 as of February 28, 2026, is $632,000 lower than the prior year-end level of $8,113,000. As of February 28, 2026, approximately 90% of the inventory was work-in-process, 2% was finished goods, and 8% was raw materials.
Previous wording
Maintenance and other inventory represent stock that is estimated to have a product life cycle in excess of twelve months. This stock represents certain items the Company is required to maintain for service of products sold and items that are generally subject to spontaneous ordering. This inventory is particularly sensitive to technological obsolescence in the near term due to its use in industries characterized by the continuous introduction of new product lines, rapid technological advances and product obsolescence. Management of the Company has, from time to time, recorded an allowance for potential inventory obsolescence. The provision for potential inventory obsolescence was $145,000 and zero for the six-month periods ended November 30, 2025 and November 30, 2024, respectively.
Current wording
Maintenance and other inventory represent stock that is estimated to have a product life cycle in excess of twelve months. This stock represents certain items the Company is required to maintain for service of products sold and items that are generally subject to spontaneous ordering. This inventory is particularly sensitive to technological obsolescence in the near term due to its use in industries characterized by the continuous introduction of new product lines, rapid technological advances and product obsolescence. Management of the Company has, from time to time, recorded an allowance for potential inventory obsolescence. The provision for potential inventory obsolescence was $195,000 and zero for the nine-month periods ended February 28, 2026 and February 28, 2025, respectively.
Previous wording
Accounts receivable of $5,181,000 as of November 30, 2025 is net of $394,000 of an allowance for estimated credit losses (“Allowance”). The accounts receivable balance as of May 31, 2025 of $5,600,000 is net of an Allowance of $564,000. The decrease to the Allowance was due to collections against an overdue structural project balance. After discussions with the customer regarding payment of this balance, the overdue balance has been reduced from $751,000 at prior year end to $350,000 at November 30, 2025. The number of an average day's sales outstanding in accounts receivable (“DSO”) increased from 32 days at May 31, 2025 to 40 days at November 30, 2025. The DSO is a function of (1) the level of sales for an average day (for example, total sales for the past three months divided by 90 days) and (2) the level of accounts receivable at the balance sheet date. The Company expects to collect the net accounts receivable balance during the next twelve months.
Current wording
Accounts receivable of $4,863,000 as of February 28, 2026 is net of $319,000 of an allowance for estimated credit losses (“Allowance”). The accounts receivable balance as of May 31, 2025 of $5,600,000 is net of an Allowance of $564,000. The decrease to the Allowance was due to collections against an overdue structural project balance. After discussions with the customer regarding payment of this balance, the overdue balance has been reduced from $751,000 at prior year end to $111,000 at February 28, 2026. The number of an average day's sales outstanding in accounts receivable (“DSO”) increased from 32 days at May 31, 2025 to 39 days at February 28, 2026. The DSO is a function of (1) the level of sales for an average day (for example, total sales for the past three months divided by 90 days) and (2) the level of accounts receivable at the balance sheet date. The Company expects to collect the net accounts receivable balance during the next twelve months.
Previous wording
As noted above, CIEB represents revenues recognized in excess of amounts billed. Whenever possible, the Company negotiates a provision in sales contracts to allow the Company to bill, and collect from the customer, payments in advance of shipments. Unfortunately, these contract provisions are often not possible to obtain. The $2,424,000 balance in CIEB at November 30, 2025 is 55% lower than the prior year-end balance. This decrease is the result of normal flow of long-term projects through production with billings to the customers as permitted in the related contracts. 71% of the CIEB balance as of the end of the last fiscal quarter, August 31, 2025, was billed to those customers in the fiscal quarter ended November 30, 2025. The remainder will be billed as the projects progress, in accordance with the terms specified in the various contracts.
Current wording
As noted above, CIEB represents revenues recognized in excess of amounts billed. Whenever possible, the Company negotiates a provision in sales contracts to allow the Company to bill, and collect from the customer, payments in advance of shipments. Unfortunately, these contract provisions are often not possible to obtain. The $5,681,000 balance in CIEB at February 28, 2026 is 6% higher than the prior year-end balance. This increase is the result of normal flow of long-term projects through production with billings to the customers as permitted in the related contracts. 33% of the CIEB balance as of the end of the last fiscal quarter, November 30, 2025, was billed to those customers in the fiscal quarter ended February 28, 2026. The remainder will be billed as the projects progress, in accordance with the terms specified in the various contracts.
Previous wording
As noted above, BIEC represents billings to customers in excess of revenues recognized. The $1,622,000 balance in BIEC at November 30, 2025 is down 63% from the $4,382,000 balance at the end of the prior year. The balance in BIEC fluctuates in the same manner and for the same reasons as the CIEB, discussed above. Final delivery of product under these contracts is expected to occur during the next twelve months.
Current wording
As noted above, BIEC represents billings to customers in excess of revenues recognized. The $1,404,000 balance in BIEC at February 28, 2026 is down 68% from the $4,382,000 balance at the end of the prior year. The balance in BIEC fluctuates in the same manner and for the same reasons as the CIEB, discussed above. Final delivery of product under these contracts is expected to occur during the next twelve months.
Previous wording
The Company's backlog of sales orders at November 30, 2025 is $25.1 million, down from $27.1 million at the end of the prior year. Of the Company’s backlog as of November 30, 2025, $7.0 million was on projects already in progress.
Current wording
The Company's backlog of sales orders at February 28, 2026 is $20.8 million, down from $27.1 million at the end of the prior year. Of the Company’s backlog as of February 28, 2026, $8.2 million was on projects already in progress.
Previous wording
Accounts payable, at $1,617,000 as of November 30, 2025, is 44% higher than the prior year-end. Accrued expenses decreased 38% from the prior year-end, to $2,545,000, due to the payout of fiscal year 2025 incentive compensation. The Company expects the accrued amounts to be paid or applied during the next twelve months.
Current wording
Accounts payable, at $1,129,000 as of February 28, 2026, is 1% higher than the prior year-end. Accrued expenses decreased 32% from the prior year-end to $2,773,000 due to a reduction of accrued incentive compensation. The Company expects the accrued amounts to be paid or applied during the next twelve months.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Selling, general and administrative expenses during the quarter ended February 28, 2026 decreased 11% from the same period in the prior year. This change is primarily due to lower incentive compensation accruals.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Selling, general and administrative expenses during the quarter ended November 30, 2025 increased 6% from the same period in the prior year. The Company expenses stock options using the fair value recognition provisions of the FASB ASC. The Company recognized $800,000 (47,850 options granted) and $731,000 (46,800 options granted) of compensation cost for the three-month periods ended November 30, 2025 and November 30, 2024, respectively.