How did TAYD's revenue and expenses trend in Q3 2025?

Taylor Devices (NASDAQ:TAYD) experienced a decline in revenue and net income in Q3 2025 compared to the same period in the previous year, but there were some positive trends in sales concentration and order backlog.

1. **Revenue Decline**: Taylor Devices reported a 14% decrease in net revenues for Q3 2025, with sales amounting to $10.56 million, down from $12.25 million in Q3 2024. This decline was primarily driven by lower domestic sales, which decreased by 23%, while international sales saw a significant increase of 115%.
2. **Net Income Decrease**: The net income for Q3 2025 was $2.00 million, representing a 26% decline from the $2.70 million reported in Q3 2024. This decrease in net income was largely due to the reduced revenue and a shift in sales mix, which resulted in a drop in gross profit margin to 19% from 22% in Q3 2024.
3. **Expenses Trends**: Specific details about TAYD's expenses for Q3 2025 are not available. However, it is clear that the decrease in revenue and net income was primarily due to lower sales volume, which implies that the company's expense levels were likely higher as a percentage of revenue compared to the previous year.
4. **Market Focus and Outlook**: Despite the challenges, Taylor Devices focused on market diversification and careful expansion into stable and growing markets, which helped maintain a firm order backlog of $33.3 million at the end of February 2025, up from $30.2 million at the end of February 2024. The company also reported continuous investments in team development, research and development, and facilities, which are expected to support profitable growth going forward.

In conclusion, Taylor Devices faced a challenging quarter with a notable decline in revenue and net income. However, the company's strategic focus on market diversification and order backlog management provides a positive outlook for future performance.