Slide 1: ESCO Technologies Fourth Quarter FY 2024 Earnings Call
ESCO Technologies Fourth Quarter FY 2024 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO November 14, 2024 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, and any other statements which are not strictly histori
Slide 3: Q4 Results
Q4 Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 339.6 298.5 $1.46 272.6 51.8 288.8 $1.25 44.0 17.4% 16.1% Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Entered Orders Q4’23 Q4’24 Delta $ Delta % • Orders lower compared to record quarterly orders
Slide 4: A&D – Q4
A&D – Q4 ($ in Millions) Entered Orders Sales Adjusted EBIT 177.4 24.2 124.3 107.0 19.1 129.9 19.4% 17.8% Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Entered Orders Q4’23 Q4’24 Delta $ Delta % • Navy – Q4’23 contained large orders for the Machining of Block V Hull Treatments & Ejection Valve System Developm
Slide 5: USG – Q4
USG – Q4 ($ in Millions) Entered Orders Sales Adjusted EBIT 99.5 108.5 28.6 97.4 102.1 26.2 26.4% 25.7% Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Entered Orders • Doble ($5M) – solid quarter ($81M in orders) vs tough comp Q4’23 Q4’24 Delta $ Delta % • NRG +$7M - $19M in Q4 orders - 2nd highest quarter in
Slide 6: Test – Q4
Test – Q4 ($ in Millions) Entered Orders Sales EBIT 12.0 64.9 63.5 65.8 11.1 59.4 18.3% 17.5% Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Entered Orders Q4’23 Q4’24 Delta $ Delta % • Orders ($5.5M) – lower related to U.S. Industrial Shielding (Q4’23 included a large Utility Shielding order) & China Entered
Slide 7: Full Year Results
Full Year Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 1,133.4 1,026.8 150.1 1,033.4 956.0 131.8 $4.18 $3.70 14.6% 13.8% FY'23 FY'24 FY'23 FY'24 FY'23 FY'24 FY'23 FY'24 Entered Orders • Orders +$100M (+10%) FY’23 FY’24 Delta $ Delta % • Strength i
Slide 8: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures ($ in Millions) Operating Cash Flow Capital Spending 127.5 36.2 76.9 22.4 FY'23 FY'24 FY'23 FY'24 Operating Cash Flow Cash Flow FY’23 FY’24 Delta • Improvement mainly driven by higher earnings and lower working capital requirements Operating Cash Flow $76.9 127.5 50.
Slide 9: FY’25 Guidance
FY’25 Guidance Sales - Expected to increase 6% to 8% and be in the range of $1.09B to $1.11B • A&D - expected to increase 7% - 9% • USG - expected to increase 7% - 9% • Test – expected to increase 3% - 5% Adjusted EBIT - Expected to increase ~ 12% to 15%, with margins increasing to 15.3% - 15.7% Adj
Slide 10: ESCO Technologies Q&A
ESCO Technologies Fourth Quarter FY 2024 Earnings Call Q&A 10
Slide 11: Reconciliation of Non-GAAP Measures – Q4
Reconciliation of Non-GAAP Measures – Q4 11
Slide 12: Reconciliation of Non-GAAP Measures – Full Year
Reconciliation of Non-GAAP Measures – Full Year 12