Esco Technologies Inc. · NYSE:ESE
Esco Technologies — Q3 2023 Earnings Presentation
10 slides from Esco Technologies's earnings presentation, Aug 8, 2023
Slide 1: ESCO Technologies Third Quarter FY 2023 Earnings Call
ESCO Technologies Third Quarter FY 2023 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO August 8, 2023 1
Slide 2: Forward Looking Statement
Forward Looking Statement Statements in this presentation and made during today’s conference call regarding Management’s expectations for fiscal 2023, the effects of continuing inflationary pressures, higher interest rates, pressures related to supply chain performance and labor shortages; our expec
Slide 3: Q3 Results
Q3 Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 254.9 248.7 $1.09 38.4 213.3 219.1 $0.89 30.8 15.4% 14.1% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Entered Orders • Orders down 16% Q3’22 Q3’23 Delta $ Delta % • Strength in commercial aerospa
Slide 4: A&D
A&D ($ in Millions) Entered Orders Sales Adjusted EBIT 110.2 103.5 21.7 92.6 20.7 81.9 20.9% 22.4% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Entered Orders • Aerospace order strength continues – Crissair, Mayday & PTI all higher Q3’22 Q3’23 Delta $ Delta % • VACCO ($35M) • $30M order for SLS long lead mat
Slide 5: USG
USG ($ in Millions) Entered Orders Sales Adjusted EBIT 90.0 20.5 85.5 74.4 67.2 22.8% 13.1 19.5% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Entered Orders • Utility +$1.9M/ (+3%) Q3’22 Q3’23 Delta $ Delta % • Renewables +$9.2M (+67%) Entered Orders $74.4 85.5 11.1 15.0% • Solar and wind project pipeline co
Slide 6: Test
Test ($ in Millions) Entered Orders Sales EBIT 70.3 8.4 8.6 59.3 55.3 14.1% 15.6% 45.9 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Entered Orders • Q3’22 contained a number of large Test & Measurement orders in Q3’22 Q3’23 Delta $ Delta % EMEA & Americas • China lower due to delayed T&M projects & weaker bu
Slide 7: Q3 Cash Flow & Capital Expenditures
Q3 Cash Flow & Capital Expenditures ($ in Millions) Operating Cash Flow Capital Spending 41.7 25.9 29.2 17.0 YTD Q3'22 YTD Q3'23 YTD Q3'22 YTD Q3'23 Operating Cash Flow • Higher working capital requirements YTD YTD • Accounts Receivable, Contract Assets higher due to Cash Flow Q3’22 Q3’23 Delta incr
Slide 8: FY'23 Guidance
FY’23 Guidance Adjusted EPS • Expectation is for Q4 Adjusted EPS in the range of $1.17 to $1.23 per share, resulting in full year EPS of $3.62 - $3.68 per share, growth of 13% - 15% over the prior year Expected FY 2023 Adjusted EPS 2023 EPS Guidance Updates $3.62 - $3.68 November $3.45 - $3.60 $3.21
Slide 9: ESCO Technologies Q&A
ESCO Technologies Third Quarter FY 2023 Earnings Call Q&A 9
Slide 10: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 10