Taylor Devices, Inc.

What they do

The company designs, develops, and manufactures shock absorption, rate control, and energy storage devices. Its products include seismic dampers, fluidicshoks, crane and industrial buffers, self-adjusting shock absorbers, liquid die springs, vibration dampers, machined springs, custom shock and vibration isolators, and custom actuators. Sales are primarily in the United States, with international sales handled by non-exclusive sales representatives.

Revenue drivers

• Seismic Dampers — Represent a substantial portion of sales; used to mitigate earthquake effects on structures, with demand tied to construction activity.
• Aerospace/Defense products — Includes fluidicshoks, vibration dampers, machined springs, and custom isolators/actuators; sales to these customers increased 22% in the nine months ended February 28, 2026.
• Industrial products — Crane and industrial buffers, self-adjusting shock absorbers, and liquid die springs for heavy industry; sales decreased 12% in the same period.
• Long-term structural projects — Revenue recognized over time on contracts; 37 projects in process in the nine months ended February 28, 2026, though project revenue was 11% lower than the prior year.

Recent performance

For the nine months ended February 28, 2026, net revenue increased 6% to $32.7 million from $30.7 million a year earlier. Net income rose 17% to $972,000 for the quarter (nine-month figure not provided). Gross margin was 44%, down one point year over year. U.S. sales were up 12%, while international sales fell 21%. Annual revenue for fiscal 2025 was $46.3 million with net income of $9.4 million.

Strategy

The company continues to develop new and advanced technology products. It maintains a technical sales force in the U.S. and uses non-employee representatives internationally. Management focuses on converting backlog to revenue, with timing differences affecting quarterly results. Cybersecurity and technology infrastructure are formally managed under NIST and CMMC guidelines.

Risks

• Revenue volatility — Sales are affected by timing of customer orders and backlog conversion, leading to quarterly fluctuations.
• Credit concentration — A $751,000 overdue receivable on a structural project drove an increase in the valuation allowance to $564,000; collection is uncertain.
• Market cyclicality — Demand is tied to construction, industrial, and defense capital budgets, which can decline in economic downturns.
• Competition — The company faces competition from alternative seismic technologies and industrial shock absorber manufacturers.

Outlook

Management expects fluctuations in sales due to changes in long-term project activity and timing of backlog conversion. They anticipate continued demand from aerospace/defense customers, while construction and industrial demand may vary. No specific guidance was provided.