Slide 1: ESCO Technologies First Quarter FY 2025 Earnings Call
ESCO Technologies First Quarter FY 2025 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO February 6, 2025 1
Slide 2: Forward Looking Statement
Forward Looking Statement Statements in this presentation regarding Management’s intentions, expectations and guidance for fiscal 2025, including restructuring and cost reduction actions, sales, orders, revenues, margin, earnings, Adjusted EPS, acquisition related amortization, and any other stateme
Slide 3: Revision to Adjusted EPS Calculation
Revision to Adjusted EPS Calculation • Beginning in Q1’25 Acquisition Related Amortization is being excluded from Adjusted EPS Q1 GAAP EPS Q1 Adjusted EPS Q1 Adjusted EPS (Prior Basis) (New Basis) 0.91 0.92 1.07 0.59 0.62 0.76 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Q1'25 Adjusted EPS Guidance Guidance
Slide 4: Q1 Results
Q1 Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 247.0 37.7 $1.07 293.7 218.3 275.0 27.9 15.3% $0.76 12.8% Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Entered Orders Q1’24 Q1’25 Delta $ Delta % • Orders lower compared to strong Q1’24 (driven by
Slide 5: A&D – Q1
A&D – Q1 ($ in Millions) Entered Orders Sales Adjusted EBIT 171.6 114.3 21.6 94.7 16.7 18.9% 120.6 17.6% Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Entered Orders Q1’24 Q1’25 Delta $ Delta % • Navy - lower as Q1’24 contained large orders for additional Block V Hull Treatments & Block VI LWWAA Entered Order
Slide 6: USG – Q1
USG – Q1 ($ in Millions) Entered Orders Sales Adjusted EBIT 89.6 86.7 20.5 83.0 17.7 77.0 23.6% 21.4% Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Entered Orders • Doble +$10M – solid quarter across product portfolio as Q1’24 Q1’25 Delta $ Delta % customers work to extend life of assets • $4M order at Phenix
Slide 7: Test – Q1
Test – Q1 ($ in Millions) Entered Orders Sales EBIT 64.8 4.9 46.1 40.6 45.2 10.6% 2.1 5.1% Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Entered Orders Q1’24 Q1’25 Delta $ Delta % • Orders +$20M • Strong quarter for EMC Test & Measurement, A&D, Entered Orders $45.2 64.8 19.6 43.4% Medical & Industrial Shieldi
Slide 8: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures ($ in Millions) Operating Cash Flow Capital Spending 34.2 7.8 5.2 8.7 YTD Q1'24 YTD Q1'25 YTD Q1'24 YTD Q1'25 Operating Cash Flow YTD YTD • Improvement mainly due to an increase in net earnings and Cash Flow Q1’24 Q1’25 Delta favorable working capital impacts Capital
Slide 9: Revision to Adjusted EPS Calculation
Revision to Adjusted EPS Calculation • Beginning in Q1’25 Acquisition Related Amortization is being excluded from Adjusted EPS • Below are our FY’25 Guidance and FY’24 Actuals revised to exclude Acquisition Related Amortization FY 2025 Adjusted EPS Guidance Guidance Range November FY'25 Adjusted EPS
Slide 10: FY'25 Guidance
FY’25 Guidance Sales • Continue to expect increase of 6% to 8% and to be in the range of $1.09B to $1.11B Adjusted EPS • Q2’25 – Expectation is for Q2 Adjusted EPS in the range of $1.20 - $1.30, represents 10% - 19% growth over Q2’24 • Full Year - Increasing Adjusted EPS by $0.25 to be in the range
Slide 11: ESCO Technologies Q&A
ESCO Technologies First Quarter FY 2025 Earnings Call Q&A 11
Slide 12: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 12