Slide 1: ESCO Technologies Second Quarter FY 2023 Earnings Call
ESCO Technologies Second Quarter FY 2023 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO May 9, 2023 1
Slide 2: Forward Looking Statement
Forward Looking Statement Statements in this presentation and made during today’s conference call regarding Management’s expectations for fiscal 2023, the effects of continuing inflationary pressures, higher interest rates, pressures related to supply chain performance and labor shortages, our guida
Slide 3: Q2 Results
Q2 Results ($ in Millions, except per share amounts) Entered Orders Sales Adjusted EBIT Adjusted EPS 251.6 229.1 27.9 $0.76 236.5 204.9 23.0 $0.65 12.2% 11.2% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Entered Orders Q2’22 Q2’23 Delta $ Delta % • Orders up 6% on strength in A&D and renewables E
Slide 4: A&D
A&D ($ in Millions) Entered Orders Sales Adjusted EBIT 111.7 19.6 99.0 94.6 84.8 14.5 19.8% 17.1% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Entered Orders • Aerospace – Crissair, Mayday & PTI all higher Q2’22 Q2’23 Delta $ Delta % • Mayday +$6M (+42%) - OEM build rates, market share gains & pricing Entere
Slide 5: USG
USG ($ in Millions) Entered Orders Sales Adjusted EBIT 86.5 84.6 79.2 14.1 64.2 11.3 17.8% 17.7% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Entered Orders • Utility ($8.0M)/ (-11%) Q2’22 Q2’23 Delta $ Delta % • Lower due to multi-year $12M DUC contract renewal in Q2’22. • Bookings strength continues across
Slide 6: Test
Test ($ in Millions) Entered Orders Sales EBIT -0.2% 55.4 55.3 55.9 51.0 8.5 7.2 15.2% 14.2% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Entered Orders • Q2’23 orders flat Q2’22 Q2’23 Delta $ Delta % • Orders still solid in quarter with book-to-bill of 1.09 • Ending backlog of $163M, +$4M from 9/30/22 Enter
Slide 7: Q2 Cash Flow & Capital Expenditures
Q2 Cash Flow & Capital Expenditures ($ in Millions) Operating Cash Flow Capital Spending 23.0 20.7 10.3 -5.5 YTD Q2'22 YTD Q2'23 YTD Q2'22 YTD Q2'23 Operating Cash Flow YTD YTD • Higher working capital requirements • Accounts Receivable higher due to increased sales Cash Flow Q2’22 Q2’23 Delta • Inv
Slide 8: FY'23 Guidance
FY’23 Guidance Adjusted EPS • Expectation is for Q3 Adjusted EPS in the range of $0.96 to $1.01 per share, representing growth of 8% - 13% over the prior year • Full Year – Increasing range from $3.50 - $3.60 per share to $3.55 - $3.65 per share, growth of 11% - 14% over the prior year Expected Q3 A
Slide 9: ESCO Technologies Q&A
ESCO Technologies Second Quarter FY 2023 Earnings Call Q&A 9
Slide 10: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 10