Taylor Devices, Inc. (TAYD): BCG Matrix [Dec-2025 Updated]

You're looking for the real story behind Taylor Devices, Inc.'s recent performance, so let's cut straight to the portfolio map as of late 2025. We've analyzed their core segments to see where the $46.3 million in record sales is coming from, which established products are still churning out that impressive 20.3% net income margin, and which areas-like the structural segment-are facing headwinds. Honestly, the mix of high-growth Stars in defense, reliable Cash Cows, struggling Dogs, and capital-hungry Question Marks-like that $27.1 million backlog needing conversion-tells a clear story about where we need to invest or divest next. Dive in below to see the precise quadrant placement for every part of Taylor Devices, Inc.'s business.

Background of Taylor Devices, Inc. (TAYD)

You're looking at Taylor Devices, Inc. (TAYD), a company that's been around for about seven decades, having started way back in 1955. Honestly, they're specialists in a niche but critical area: designing, developing, manufacturing, and marketing devices for shock absorption, rate control, and energy storage. These products go into all sorts of machinery, equipment, and structures. Think of them as the folks making sure things don't shake themselves apart.

The core of Taylor Devices, Inc.'s offering includes things like Seismic dampers, which help structures handle earthquakes, Fluidicshoks, which are compact shock absorbers for defense and aerospace, and larger Crane and industrial buffers. Their technology is fundamentally about absorbing, controlling, or mitigating motion caused by major events like earthquakes or explosions. They focus their growth efforts domestically on the Aerospace and Defense market, while also targeting global Structural Construction and Industrial markets.

Looking at their performance as of late 2025, Taylor Devices, Inc. hit a high note. For the full fiscal year 2025 (FY25), the company reported record sales of $46,292,725, which was an increase from the $44,582,807 they posted in FY24. That's a solid jump. Profitability also improved substantially, with full-year net income reaching $9,413,136, up from $9.0 million the year prior. This pushed their net income margin to 20.3% of sales, a slight tick up from 20.2% in FY24.

The CEO noted that this record performance came from positive momentum in two key areas: the Aerospace/Defense and Industrial markets. Still, they faced some headwinds in the Structural markets, which they tied to higher interest rates and unfavorable foreign exchange rates. As Taylor Devices, Inc. started FY26, they carried a firm order backlog of $27.9 million as of October 1, 2025, which is slightly up from the $27.1 million they started the fiscal year with in June 2025. That backlog gives you a good sense of near-term revenue visibility.

We can see the market split in their first quarter of FY26 (Q1 FY26), where sales were almost perfectly divided: 51% came from their Aerospace/Defense group customers and 49% came from their Structural and Industrial group customers combined. Geographically, the United States of America segment was the main revenue driver for the trailing twelve months ending August 31, 2025, bringing in $36.6 million, which represented 79% of their total revenue.

Taylor Devices, Inc. (TAYD) - BCG Matrix: Stars

You're looking at the units within Taylor Devices, Inc. (TAYD) that are leading the charge in a growing environment. The Aerospace/Defense segment definitely fits this profile, showing positive momentum that helped drive the record sales in Fiscal Year 2025. For instance, in the first quarter of FY2025, sales for the company hit $11.6 million, a 17% year-over-year increase, with management specifically citing continued strength in Aerospace/Defense markets as a key driver. This segment is a leader in a market characterized by consistent government spending, which acts as a natural barrier to entry for competitors.

The high-precision vibration control solutions Taylor Devices, Inc. provides for defense applications represent a strong market position. This area benefits from the consistent government spending you see in the defense sector. The company's focus here is on maintaining that leadership, which is critical for future Cash Cow status when the growth rate inevitably slows.

The Industrial segment also contributed favorably to the record full-year sales achieved by Taylor Devices, Inc. in FY2025. The total full-year sales figure for FY2025 reached $46.29 million, setting a new high record for the Team, exceeding the prior record of $44.58 million set in FY2024. The overall performance suggests this segment is capturing significant market share in its space.

Here are the key financial metrics that define the success of these leading business units in FY2025:

The growth story for Taylor Devices, Inc. is also visible in its high-growth industrial applications. These products are crucial for maintaining the Star status by capturing market expansion. You can see this momentum reflected in the following areas:

• Aerospace/Defense market momentum continued offsetting headwinds in other areas.
• The USA segment was the primary driver, contributing $36.6 million, or 79% of total revenue.
• Products support high-growth industrial applications like automotive testing and renewable energy smoothing.
• Q4 sales accelerated significantly, reaching $15.56 million, up 29% year-over-year.
• The company is actively investing in technology and facilities to support this growth trajectory.

Taylor Devices, Inc. (TAYD) - BCG Matrix: Cash Cows

You're looking at the core engine of Taylor Devices, Inc. (TAYD) here, the segment that consistently prints cash. The core, proprietary Fluid Viscous Dampers and Shock Absorbers are the bedrock, delivering a 20.3% net income margin for the full fiscal year 2025.

This translates to a full-year net income of $9.41 million on total revenue of $46.29 million in FY2025. That margin is a new high record, up from 20.2% in FY2024. It shows that even in a mature segment, market leadership allows for premium pricing and cost control. This is what we look for in a Cash Cow.

The company's domestic strength is clear; the United States of America segment drove 79% of total revenue, amounting to $36.6 million of the total $46.29 million in FY2025. While I can't confirm the exact ranking against the top 10 competitors, this dominant domestic revenue share in the viscous damper market, where Taylor Devices, Inc. is a prominent player, suggests a high market share in its niche.

The stability is defintely there. You see it in the consistent profitability, which has spanned 19 consecutive years in the fourth quarter as of Q4 2025. This isn't a flash in the pan; it's a reliable generator of funds. Because the market is mature, the need for aggressive spending on market growth is lower, allowing the company to focus investments elsewhere.

Investments are instead channeled into supporting infrastructure to boost efficiency, which directly flows to the bottom line. The company is setting itself up for the next cycle, entering FY2026 with a firm order backlog of $27.1 million. This backlog is supported by continued investments in people, technology, processes, and facilities, which is the smart way to 'milk' a Cash Cow-maintain productivity, don't starve it.

Here's a quick look at the key FY2025 financial snapshot for this cash-generating unit:

The revenue stream is supported by all three customer-facing product groups, which all contributed favorably to the FY2025 results:

• Aerospace/Defense market momentum
• Industrial market momentum
• Structural market performance (despite headwinds)

The focus here is on maintaining the high-margin revenue with minimal need for aggressive market growth investment, letting the existing market position work for you. Finance: draft 13-week cash view by Friday.

Taylor Devices, Inc. (TAYD) - BCG Matrix: Dogs

You're looking at the parts of Taylor Devices, Inc. (TAYD) that are currently demanding attention without delivering commensurate returns. In the BCG framework, these are the Dogs: units operating in low-growth markets with a low relative market share. Honestly, these segments often just break even, tying up capital that could be better used elsewhere.

For Taylor Devices, Inc. (TAYD), the Structural markets segment clearly fits this profile as of the fiscal year 2025 reporting period. This structural segment faced significant headwinds throughout FY2025, specifically citing high interest rates and unfavorable foreign exchange rates as dampeners on performance. This is the area where you see older, less-differentiated shock absorption products competing in mature industrial machinery markets that just don't have the same growth prospects as the other divisions.

The link between the segment and the macroeconomic environment is clear. Products tied to cyclical commercial construction are directly impacted when high interest rates slow down new project starts. This environment makes it tough for any unit to gain traction or significantly increase its share, which is the hallmark of a Dog. The company's own commentary suggests this struggle, as the positive momentum in Aerospace/Defense and Industrial markets had to actively offset these structural challenges. It's a classic cash trap scenario, even if the unit isn't actively losing money.

Furthermore, these challenged areas can require significant upkeep. We saw capital expenditures surge by 126% in FY2025, reaching $2,602,000, up from $1,149,000 the prior year, with approximately $1,853,000 still committed as of May 31, 2025. When a segment requires this level of capital investment-for new manufacturing machinery, testing equipment, and facility upgrades-but offers limited market share growth potential, it becomes a prime candidate for strategic review, or what we call divestiture in the matrix world.

Here's a quick look at the segment dynamics based on the latest available data, which helps frame the relative size of the challenged areas versus the high-momentum areas:

The division between the customer groups in the first quarter of fiscal year 2026 gives you a sense of the relative weight of the challenged versus the growing areas:

• Structural and Industrial product group customers accounted for 49% of Q1 FY2026 sales.
• Aerospace/Defense product group customers accounted for 51% of Q1 FY2026 sales.

Expensive turn-around plans rarely work for Dogs because the market itself isn't expanding. You're fighting macroeconomic headwinds and maturity simultaneously. For Taylor Devices, Inc. (TAYD), the focus should be on minimizing cash drain from this structural business, perhaps by selectively divesting assets or reducing maintenance CapEx commitments, rather than pouring in funds to chase growth that the market simply isn't offering right now. The fact that the company is still investing heavily in technology and facilities suggests they are trying to keep the door open, but the pressure from high interest rates on that segment is defintely a major concern for a low-growth unit.

The core issue for this quadrant is the capital tied up. While the overall company posted a record $46.3 million in FY2025 revenue, the Structural segment is the one facing the structural economic constraints. If you look at the overall profitability, the net margin was 20.3% of sales, which is good, but you have to ask how much of that margin is being eroded by the necessary, but low-return, maintenance and capital spending in the Dog segment versus the high-return areas.

Finance: review the maintenance CapEx schedule for the Structural segment against the committed $1,853,000 to identify immediate deferral opportunities by next Tuesday.

Taylor Devices, Inc. (TAYD) - BCG Matrix: Question Marks

You're looking at the areas of Taylor Devices, Inc. where high growth potential meets low current market share, which means they are burning cash now for a shot at future Star status.

The capital consumption in these high-growth areas is evident in the Research and Development spending for the fiscal year ended May 31, 2025. The firm expended $444,000 on product research and recorded $1,141,000 in government-funded research and development. To be fair, customer-funded research and development was $228,000 for the same period, down from $477,000 in FY2024.

These Question Marks require market adoption to quickly shift their position. The company is actively pursuing this through strategic moves:

• Continued investments in people, technology, processes, and facilities.
• Focus on growth in targeted Aerospace and Defense sectors.

New applications for Taylor Devices, Inc. hydraulic accumulators and related technologies are being pushed into various sectors, which represent the high-growth market aspect:

• Recoil Control for weapons systems.
• Radar Over-Travel Buffers for elevation or azimuth modes.
• Suspension Bump-Stops for rigorous travel conditions.
• Custom Actuators qualified and tested up to 140,000 cycles.
• Fluid Viscous Dampers (FVDs) for seismic and wind buffering in structures.

International expansion efforts are underway to capture market share in growing geographies. Taylor Devices, Inc. signed an exclusive agreement with Force Development Services (FDS) Ltd to become the sole supplier and integrator of its NATO approved technology across the UK and European Military markets for Containerised Mission Modules.

The commitment to future revenue, which needs to convert into high-margin returns, is underpinned by the order book. Taylor Devices, Inc. enters FY2026 with a firm order backlog of $27.1 million. This compares to a backlog of $33.1 million at May 31, 2024, and $28.4M at the end of Q1 FY2025. The current backlog is composed of 142 open sales orders as of May 31, 2025.

Here's a look at the investment context surrounding this backlog conversion:

The conversion of this $27.1 million backlog is critical, as 75% of the sales value in the backlog is for aerospace/defense customers, a segment that showed positive momentum in FY2025.