Taylor Devices: A Terrible Quarter With A Bullish Twist

Taylor Devices had a terrible FY2026, but the 154% sequential increase in backlog to a record $52.8 million changes my view of what happened. Even excluding the $19 million one-off order, backlog was $34 million, suggesting that delayed orders are now converting. The 154% sequential backlog surge, even excluding a $19M one-off order, supports management’s claim that demand remains robust. 92% of the backlog is tied to Aerospace & Defense, providing revenue visibility and margin stability for FY2027. With a forward P/E of 16, strong cash, zero debt, and a 25% three-year upside, TAYD offers an attractive risk-reward profile.