Taylor Devices ended fiscal 2026 with a sharply larger order book even as reported revenue declined, with total sales backlog reaching $52.8 million compared with $27.1 million a year earlier. Aerospace and defense customers accounted for 92% of the backlog, up from 75% at the end of fiscal 2025, indicating that the company’s future revenue mix has shifted considerably toward defense-related applications.
The increase in backlog occurred even though the number of open sales orders declined slightly. Taylor Devices had 139 open orders at May 31, 2026 compared with 142 a year earlier, meaning the average value of the orders in backlog increased substantially. Of the $52.8 million backlog, $10.1 million represented long-term projects already in progress.
A single large non-project order accounts for $19 million of the current backlog. Taylor Devices expects to deliver $1.7 million of that order during fiscal 2027, $5 million in fiscal 2028, $10 million in fiscal 2029 and another $2.3 million in fiscal 2030, providing unusually long revenue visibility for a portion of the order book.
The defense-heavy backlog contrasts with the company’s fiscal 2026 revenue performance. Net revenue declined 10% to approximately $41.65 million from $46.29 million. Revenue from long-term projects fell 25%, while revenue from non-project business increased 22%, showing that weakness was concentrated primarily in the company’s project activity rather than across the entire business.
Aerospace and defense was already the company’s largest end market during fiscal 2026. Sales to aerospace and defense customers increased slightly to $27.52 million from $27.13 million, representing approximately 66% of total sales compared with 59% a year earlier.
Structural revenue moved in the opposite direction. Structural sales declined to $10.26 million from $14.83 million, and management said sales to structural customers seeking seismic and wind protection for new or existing buildings and bridges fell 31%. Structural customers represented 25% of fiscal 2026 revenue, down from 32% in fiscal 2025.
The backlog suggests that this mix could shift even further toward aerospace and defense. Structural customers represented only 5% of year-end backlog compared with 19% a year earlier, while aerospace and defense increased to 92%. Taylor Devices expects to recognize the majority of the remaining backlog during fiscal 2027, with additional revenue extending into later fiscal years.
Taylor Devices remained profitable despite the decline in annual revenue. Net income totaled approximately $8.56 million compared with $9.41 million in fiscal 2025, while cash provided by operating activities remained strong at approximately $7.02 million compared with $7.47 million.
The company’s liquidity also extends considerably beyond its reported cash balance. Taylor Devices held only $904,823 of cash and equivalents at year-end, but short-term investments increased to $40.57 million from $34.80 million. Total stockholders’ equity increased to $72.85 million from $62.04 million.
Taylor Devices also had no borrowings outstanding under its $10 million bank demand line at May 31. The company had approximately $1.77 million of committed capital expenditures and said cash on hand, operating cash flow and borrowing capacity are expected to be sufficient to fund operations and capital improvements over the following 12 months.
The combination of a nearly doubled backlog, a much higher average order value and the increasing concentration of future orders in aerospace and defense gives Taylor Devices substantially more forward revenue visibility than its fiscal 2026 sales decline alone would suggest.
