ESE
ESCO Technologies Inc.199.37
-7.04-3.41%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
Q&A details lumpiness, renewables timing
Q&A emphasized A&D order lumpiness from chunky Navy wins like $30M Virginia class block six and prior UK awards, yet affirmed durable long-term demand with OEMs ramping post-2025 softness and broad military aircraft strength including F-15EX and sixth-gen. Renewables trough extends to post-July safe harbor deadline, with high single-digit recovery eyed late FY2026. Test surged on EMC, shielding, and data center EMP filters, though wireless remains weak. Management is rebuilding M&A pipeline focused on utilities, aircraft components, Navy. Guidance looks front-loaded, modestly skeptical of OEM targets. Lumpiness persists. Watch renewables snapback, deal flow.
Key Stats
Market Cap
5.16BP/E (TTM)
44.40Basic EPS (TTM)
4.49Dividend Yield
0%Recent Filings
10-Q
Q1 FY2026 results
ESCO Technologies crushed Q1 FY2026 with net sales jumping 35% y/y to $289.7M, fueled by A&D's 76% surge to $143.8M on navy and aerospace strength plus Maritime contributions, while Test rose 27% yet USG held flat. Earnings from continuing operations hit $28.7M, diluted EPS $1.11 (up 41% y/y, confirmed vs 25.9M shares), as margins held despite amortization tripling to $20.3M from the acquisition. Cash from operations soared to $68.9M; free cash flow $63.0M (derived). Debt fell to $145.5M with $469M revolver availability and $103.8M cash. Maritime working capital settlement cost $5M. Backlog swelled to $1.4B. Supply chain disruptions loom large.
8-K
Q1 sales +35%, orders +143%
ESCO crushed Q1 fiscal 2026 with sales up 35% to $290M, entered orders surging 143% to $557M for a 1.92x book-to-bill, and GAAP EPS rising 41% to $1.11. Backlog hit record $1.4B, fueled by Aerospace & Defense strength including Maritime. Orders exploded. Full-year sales guidance lifted to $1.29-1.33B, adjusted EPS to $7.90-8.15.
10-K
FY2025 results
ESCO Technologies drove FY2025 sales to $1,095.4 million, up 19.2% y/y, with A&D surging 40.4% to $478.2 million on navy and commercial aerospace gains plus the April Maritime acquisition; USG edged 3.0% higher to $380.0 million via Doble strength, while Test rose 13.2% to $237.2 million on U.S. and Europe volumes. EBIT climbed 16.6% to $170.4 million, margins steady at 15.6%, fueled by leverage despite acquisition costs. Book-to-bill hit 1.43x on $1,564.8 million orders, backlog ballooning 70.7% to $1,133.6 million. Cash from operations topped $200 million. Backlog exploded. U.S. Government spending cuts threaten A&D momentum.
8-K
Q4 sales +29%, record backlog
ESCO crushed Q4 and FY 2025 with sales up 29% to $353M and 19% to $1.1B from continuing ops, fueled by Maritime acquisition and organic growth; entered orders soared 57% to $1.6B, building $1.1B backlog. Adjusted EPS jumped 30% to $2.32 quarterly, 26% to $6.03 yearly. Executives got hefty RSU/PSU grants tied to EBITDA, ROIC. FY26 guides 16-20% sales growth.
10-Q
Q3 FY2025 results
ESCO Technologies posted Q3 FY2025 net sales of $296.3M, up 26.8% y/y from $233.6M, driven by 56% A&D growth including $37.1M from the April Maritime acquisition for $472M cash (recognizing $222.7M goodwill, $290.5M customer relationships over 15 years). Continuing EPS dipped to $0.96 from $1.10 y/y amid higher amortization and interest, yet EBIT held at 13.8% margin. A&D EBIT soared to 26.8%. Cash swelled to $78.7M with $88.3M YTD operating cash flow from continuing ops; debt hit $525M (revolver + term loan A at ~6.4%, $338M available). Free cash flow not disclosed in the 10-Q. VACCO sold post-quarter for $275M. Renewables market weakness lingers.
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