To: Paul Senior who wrote (69821 ) 8/18/2025 9:53:53 PM From: E_K_S Respond to Re: Gencor Industries IN (GENC) Gencor Industries, Inc. designs, manufacturers and markets process machinery equipment. Products include machinery used in the production of highway construction materials such as hotmix asphalt, and machinery used to produce food products such as pelletized animal feeds, edible oils, sugar and citrus juices. The Company operates in two business groups-Construction Equipment Group and Consolidated Process Machinery Group Looking for a possible run back to $20/share but will depend on Equipment SalesHow they contract their services: Sale of Equipment: Gencor's primary business model revolves around the sale of asphalt plants, soil remediation plants, combustion systems, heat transfer systems, and related auxiliary equipment (storage silos, conveyors, control systems, asphalt pavers). Revenue from these equipment sales is typically recognized at the point of shipment.Aftermarket Services: They also generate revenue through aftermarket services, which include:Maintenance Spare parts sales Technical support Training programs (e.g., 5-day comprehensive hands-on training) Custom engineering projects Equipment retrofitting Technology Licensing and Consulting: Gencor also engages in technology licensing agreements and provides consulting services.Types of Contracts: Private Contracts: Gencor works extensively with private "highway contractors" and "infrastructure development firms." This appears to be their core customer base, as they have been innovating technologies for over a century specifically for highway contractors.Government/City Contracts: While Gencor's website highlights its role in "road and highway construction," and they do engage with "government agencies" as clients, they are generally a supplier of equipment to the contractors who then win government or city projects. Therefore, their direct contracts with government or city entities might be less frequent than with private contractors. Their financial reports do mention "contract equipment sales" and "contract assets" and "contract liabilities," indicating they have formal agreements for their sales.Long-Term Service Contracts: Yes, Gencor offers comprehensive service contracts, which include:Basic Maintenance Contracts: Typically 3-year terms.Premium Service Agreements: 5-year comprehensive coverage.Extended Warranty Options: Up to 7 years. These indicate a focus on recurring revenue streams through long-term service agreements for their equipment.Where most of their business is done (State/City on a per-job basis): Headquarters and Manufacturing: Gencor is headquartered in Orlando, Florida , and maintains two state-of-the-art manufacturing facilities.Market Reach: Their products and services are supplied to North America, Europe, the Middle East, and Asia .Specific Job Locations: While Gencor is based in Florida and operates globally, the exact state/city breakdown of their "per job" business is not publicly detailed. Their products are used in road and highway construction projects, which occur at local, state, and national levels wherever infrastructure is being built or maintained. The company's management has expressed optimism regarding the "Infrastructure Investment and Jobs Act" in the US, suggesting a strong focus on the domestic market for highway construction.Equipment Sales Transferred over Time: 39.86% of total revenue (e.g., larger, custom-built projects)Equipment Sales Transferred at Point in Time: 32.83% of total revenue (e.g., standard equipment sales)Parts and Component Sales: 23.37% of total revenue Freight Revenue: 6.32% of total revenue
