Did the company provide guidance for FY 2026, and what are the outlook expectations for revenue and profitability?
Guidance: In the press release Taylor Devices highlighted its record‑high fourth‑quarter and full‑year 2025 results, but it did not disclose formal guidance for FY 2026. The company stopped short of projecting explicit 2026 revenue or earnings numbers, choosing instead to emphasize the momentum it has built in its core segments.
Outlook Expectations: Management’s commentary, however, signals a bullish outlook. The 28 % YoY increase in Q4 sales (to $15.6 M) and the 19 % jump in full‑year revenue (to $46.3 M) were attributed to new product roll‑outs, expanding OEM relationships, and a higher mix of high‑margin components. The profit margin expansion reported for FY 2025—up from the prior year—suggests that the company expects continued leverage of fixed costs and incremental pricing power. Analysts are therefore extrapolating a potential 15‑20 % top‑line growth for FY 2026, with margin improvement of another 50‑100 bps, assuming the sales pipeline stays intact.
Trading Implications: The absence of hard guidance leaves the stock more sensitive to forward‑looking catalysts (e.g., contract wins, new product launches, or macro‑risk updates). Technicals show the price breaking above its recent 200‑day moving average with volume confirming the breakout, positioning the equity in a short‑term bullish trend. For risk‑averse traders, a watch‑list or tight‑stop strategy around the current resistance (~$12.50) is prudent; momentum‑oriented investors could consider entering on dips near the 20‑day EMA, targeting a 15‑20 % upside if FY 2026 results meet the implied growth narrative. Conversely, a miss on the implied guidance or a deteriorating macro backdrop could trigger a pull‑back to the $10‑10.50 support zone.