Esco Technologies Inc. · NYSE:ESE
Esco Technologies — Q3 2024 Earnings Presentation
11 slides from Esco Technologies's earnings presentation, Aug 7, 2024
Slide 1: ESCO Technologies Third Quarter FY 2024 Earnings Call
ESCO Technologies Third Quarter FY 2024 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO August 7, 2024 1
Slide 2: Forward Looking Statement
Forward Looking Statement Statements in this presentation regarding Management’s intentions, expectations and guidance for fiscal 2024, including restructuring and cost reduction actions, sales, orders, revenues, margin, earnings, Adjusted EPS, and any other statements which are not strictly histori
Slide 3: Q3 Results
Q3 Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 311.7 41.4 $1.16 248.7 260.8 38.3 $1.09 213.3 15.9% 15.4% Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Entered Orders Q3’23 Q3’24 Delta $ Delta % • Strength across end-markets in all 3 Segments En
Slide 4: A&D – Q3
A&D – Q3 ($ in Millions) Entered Orders Sales Adjusted EBIT 146.9 114.5 -1.0% 21.7 21.5 103.5 20.9% 18.7% 81.9 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Entered Orders Q3’23 Q3’24 Delta $ Delta % • Navy – VA Class Block V QARMS $32M & Ejection System Development $9M Entered Orders $81.9 146.9 65.0 79.3% •
Slide 5: USG – Q3
USG – Q3 ($ in Millions) Entered Orders Sales Adjusted EBIT +0.3% 22.2 100.0 90.0 90.3 20.5 85.5 24.6% 22.8% Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Entered Orders • Doble +$19M – up 30% on service orders strength Q3’23 Q3’24 Delta $ Delta % • NRG ($4M) – orders moderating after record Q3’23 Entered Ord
Slide 6: Test – Q3
Test – Q3 ($ in Millions) Entered Orders Sales EBIT 64.8 56.1 9.3 55.3 8.6 45.9 16.6% 15.6% Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Entered Orders Q3’23 Q3’24 Delta $ Delta % • Large industrial project +$12M & general rebound in US T&M orders +$5M Entered Orders $45.9 64.8 +19.0 +41.4% • Orders +$19M (4
Slide 7: Q3 YTD Results
Q3 YTD Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 844.5 728.2 98.3 $2.72 683.4 87.8 $2.45 693.8 13.5% 12.9% Q3 YTD '23 Q3 YTD '24 Q3 YTD '23 Q3 YTD '24 Q3 YTD '23 Q3 YTD '24 Q3 YTD '23 Q3 YTD '24 Entered Orders Q3 YTD Q3 YTD Delta Delta • Orders
Slide 8: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures ($ in Millions) Operating Cash Flow Capital Spending 55.5 24.9 17.0 29.2 YTD Q3'23 YTD Q3'24 YTD Q3'23 YTD Q3'24 Operating Cash Flow YTD YTD • Improvement mainly driven by increase in accounts receivable Cash Flow Q3’23 Q3’24 Delta collection and higher earnings Capi
Slide 9: FY'24 Guidance
FY’24 Guidance Sales – Expect growth of 7% to 8% and to be in the range of $1.02B to $1.03B (including MPE) Adjusted EPS • Q4’24 – Expectation is for Q4 Adjusted EPS in the range of $1.38 - $1.48, representing growth of 10% - 18% over the prior year • Guidance excludes further profitability erosion
Slide 10: ESCO Technologies Q&A
ESCO Technologies Third Quarter FY 2024 Earnings Call Q&A 10
Slide 11: Reconciliation of Non-GAAP Measures – Q3
Reconciliation of Non-GAAP Measures – Q3 11