Esco Technologies Inc. · NYSE:ESE
Esco Technologies — Q1 2024 Earnings Presentation
10 slides from Esco Technologies's earnings presentation, Feb 8, 2024
Slide 1: ESCO Technologies First Quarter FY 2024 Earnings Call
ESCO Technologies First Quarter FY 2024 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO February 8, 2024 1
Slide 2: Forward Looking Statement
Forward Looking Statement Statements in this presentation regarding Management’s expectations for fiscal 2024, restructuring and cost reduction efforts, sales, inflationary pressures, interest rates, supply chain performance and labor shortages; our guidance for 2024 including revenues, earnings, Ad
Slide 3: Q1 Results
Q1 Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 293.7 218.3 23.2 205.5 21.6 $0.60 $0.62 228.9 10.6% 10.5% Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Entered Orders Q1’23 Q1’24 Delta $ Delta % • Orders +$65M (+28%) - Strength in Aerospace & Na
Slide 4: A&D – Q1
A&D – Q1 ($ in Millions) Entered Orders Sales Adjusted EBIT 171.6 94.7 16.7 83.0 12.7 17.6% 97.3 15.3% Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Entered Orders Q1’23 Q1’24 Delta $ Delta % • Navy – Large Virginia Class orders for Block V surface hull tiles & Block VI long lead material procurement for LWWA
Slide 5: USG – Q1
USG – Q1 ($ in Millions) Entered Orders Sales Adjusted EBIT 80.2 77.0 83.0 17.7 71.0 16.1 21.4% 22.7% Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Entered Orders Q1’23 Q1’24 Delta $ Delta % • Doble ~flat to prior year after strong Q4’23 orders • NRG ($2M) – moderate Q1 for renewables orders after record FY’2
Slide 6: Test – Q1
Test – Q1 ($ in Millions) Entered Orders Sales EBIT 51.5 51.5 5.4 45.2 40.6 10.5% 2.1 5.1% Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Entered Orders Q1’23 Q1’24 Delta $ Delta % • MPE added $4.8M in orders including $3.2M of acquired backlog • Offset by delays on a few large projects - EMEA/China Entered Or
Slide 7: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures ($ in Millions) Operating Cash Flow Capital Spending 8.7 7.8 4.8 -9.0 Q1'23 Q1'24 Q1'23 Q1'24 Operating Cash Flow Cash Flow Q1’23 Q1’24 Delta • Lower working capital requirements Capital Expenditures Operating Cash Flow $(9.0) 8.7 +17.7 • Q1 increase primarily relate
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) • A&D – 11 to 13 percent (raised from original guidance of 8 to 10 percent) • USG – 6 to 8 percent • Test – 1 to 3 percent including MPE acquisition (lowered from original guidance
Slide 9: ESCO Technologies Q&A
ESCO Technologies First Quarter FY 2024 Earnings Call Q&A 9
Slide 10: Reconciliation of Non-GAAP Measures – Q1
Reconciliation of Non-GAAP Measures – Q1 10