Slide 1: ESCO Technologies Second Quarter FY 2024 Earnings Call
ESCO Technologies Second Quarter FY 2024 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO May 9, 2024 1
Slide 2: Forward Looking Statement
Forward Looking Statement Statements in this press release regarding Management’s intentions, expectations and guidance for fiscal 2024, including restructuring and cost reduction efforts, sales, orders, revenues, margin, earnings, Adjusted EPS, and any other statements which are not strictly histor
Slide 3: Q2 Results
Q2 Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 249.1 33.7 $0.94 251.6 239.1 229.1 27.9 $0.76 13.5% 12.2% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Entered Orders Q2’23 Q2’24 Delta $ Delta % • Strength in Aerospace offset by lower Test order
Slide 4: A&D – Q2
A&D – Q2 ($ in Millions) Entered Orders Sales Adjusted EBIT 114.7 111.7 116.1 23.6 99.0 19.6 20.6% 19.8% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Entered Orders Q2’23 Q2’24 Delta $ Delta % • Aerospace – Strong quarter for Commercial & Defense OEM/ Aftermarket Entered Orders $111.7 116.1 4.4 4.0% Sales Sa
Slide 5: USG – Q2
USG – Q2 ($ in Millions) Entered Orders Sales Adjusted EBIT 84.6 87.3 17.6 79.0 79.2 14.1 20.1% 17.8% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Entered Orders • NRG ($4M) – orders moderating after record FY’23 Q2’23 Q2’24 Delta $ Delta % • Doble ($2M) – down slightly (3%) compared to prior year Entered Or
Slide 6: Test – Q2
Test – Q2 ($ in Millions) Entered Orders Sales EBIT 55.3 51.0 7.2 47.1 43.9 5.7 14.2% 12.2% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Entered Orders Q2’23 Q2’24 Delta $ Delta % • Wireless ($4M) – expected to stay slow through the year • Delays on a few large projects – timing Entered Orders $55.3 43.9 (11
Slide 7: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures ($ in Millions) Operating Cash Flow Capital Spending 19.2 16.3 10.3 -5.5 YTD Q2'23 YTD Q2'24 YTD Q2'23 YTD Q2'24 Operating Cash Flow YTD YTD • Improvement mainly driven by lower accounts receivable Cash Flow Q2’23 Q2’24 Delta balances and higher earnings Capital Expe
Slide 8: FY'24 Guidance
FY’24 Guidance Sales – Continue to expect growth of 7% to 9% and to be in the range of $1.02B to $1.04B (including MPE) Adjusted EPS • Q3’24 – Expectation is for Q3 Adjusted EPS in the range of $1.16 - $1.22, representing growth of 6% - 12% over the prior year • Full Year – Maintaining range for Adj
Slide 9: ESCO Technologies Q&A
ESCO Technologies Second Quarter FY 2024 Earnings Call Q&A 9
Slide 10: Reconciliation of Non-GAAP Measures – Q2
Reconciliation of Non-GAAP Measures – Q2 10