ESCO Reports Third Quarter Fiscal 2025 Results

About this update from Esco Technologies Inc.

- Q3 Sales increase 27% to $296 Million - Q3 GAAP EPS from Continuing Operations decreases 13% to $0.96 - Q3 Adjusted EPS from Continuing Operations increases 25% to $1.60 - Q3 Orders increase 194% to $749 Million / Book-to-Bill of 2.53x - Increasing Guidance for FY’25 Adjusted EPS from Continuing Operations to $5.75-5.90 (21%-24% growth) - St. Louis, Aug. 07, 2025 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the third quarter ended June 30, 2025 (Q3 2025). On July 21, 2025, the Company announced that it had completed the sale of VACCO Industries. The VACCO operating results are presented as Discontinued Operations in the attached tables and are excluded from the following discussion of the Company’s results from Continuing Operations for the comparable periods. Prior Adjusted Earnings per Share guidance of $1.58 to $1.72 for the third quarter included VACCO’s estimated results, and actual Adjusted Earnings per Share on this basis was $1.67. Operating Highlights Bryan Sayler, Chief Executive Officer and President, commented, “It has been a transformational period at ESCO as we have focused on integrating ESCO Maritime Solutions (Maritime) and finalizing the divestiture of VACCO Industries. With the completion of these transactions, we have taken an important step forward in the evolution of ESCO. We now have a meaningfully larger Navy business and have exited the space business. The impact of these changes can be seen both in our top and bottom line results, as our Sales increased 27 percent, Adjusted EPS from Continuing Operations increased 25 percent, and Adjusted EBIT margin increased 180 basis points to 21.1 percent in the quarter. “Our newly enhanced portfolio of businesses is well positioned in end markets with attractive long term growth dynamics. With this strong market presence and our record backlog, we expect to continue to deliver above market growth and are pleased to issue Q4 guidance that once again raises our full year FY 2025 outlook.” Segment Performance Aerospace & Defense (A&D) Utility Solutions Group (USG) RF Test & Measurement (Test) Business Outlook – 2025 FY 2025 full year guidance for revenue from continuing operations is being increased by $20 million and is now expected to be in the range of $1.075 to $1.105 billion (17 to 20 percent increase over the prior year). Organic revenue from continuing operations (excluding Maritime revenue of $90 to $100 million) is expected to be $985 to $1,005 million (7 to 9 percent increase over the prior year). Due to continued market strength and improvement in operational performance, our FY 2025 Adjusted EPS guidance reflects an increase and narrowing of our guidance range to $5.75 to $5.90 (21 to 24 percent growth over FY 2024 EPS from Continuing Operations of $4.77). Management’s expectation is for Q4 Adjusted EPS from Continuing Operations to be in the range of $2.04 to $2.19 (14 to 22 percent growth over Q4 2024 Adjusted EPS from Continuing Operations of $1.79). Dividend Payment The next quarterly cash dividend of $0.08 per share will be paid on October 16, 2025 to stockholders of record on October 2, 2025. Conference Call The Company will host a conference call today, August 7, at 4:00 p.m. Central Time, to discuss the Company’s Q3 2025 results. A live audio webcast and an accompanying slide presentation will be available in the Investor Center of ESCO’s website. Participants may also access the webcast using this registration link . For those unable to participate, a webcast replay will be available after the call in the Investor Center of ESCO’s website. Forward-Looking Statements Statements in this press release 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 statements which are not strictly historical, are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. securities laws. Investors are cautioned that such statements are only predictions and speak only as of the date of this presentation, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and the following: the impacts of climate change and related regulation of greenhouse gases; the impacts of labor disputes, civil disorder, wars, elections, political changes, tariffs and trade disputes, terrorist activities, cyberattacks or natural disasters on the Company’s operations and those of the Company’s customers and suppliers; disruptions in manufacturing or delivery arrangements due to shortages or unavailability of materials or components or supply chain disruptions; inability to access work sites; the timing and content of future contract awards or customer orders; the timely appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties or data breaches; the availability of acquisitions; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; material changes in the costs and availability of certain raw materials; material changes in the cost of credit; changes in laws and regulations including but not limited to changes in accounting standards and taxation; changes in interest, inflation and employment rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration and performance of acquired businesses. Non-GAAP Financial Measures The financial measures EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are presented in this press release. The Company defines “EBIT” as earnings before interest and taxes, “EBITDA” as earnings before interest, taxes, depreciation and amortization, “Adjusted EBIT” and “Adjusted EBITDA” as excluding the net impact of the items described in the attached Reconciliation of Non-GAAP Financial Measures, and “Adjusted EPS” as GAAP earnings per share excluding the net impact of the items described and reconciled in the attached Reconciliation of Non-GAAP Financial Measures. EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes EBIT, Adjusted EBIT, EBITDA, and Adjusted EBITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation, and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP. About ESCO ESCO Technologies is a global provider of highly engineered products and solutions serving diverse end-markets. It manufactures filtration and fluid control products, advanced composites, as well as signature and power management solutions for aviation, Navy, and industrial customers. ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems; and provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Headquartered in St. Louis, Missouri, ESCO and its subsidiaries have offices and manufacturing facilities worldwide. For more information on ESCO and its subsidiaries, visit ESCO’s website at www.escotechnologies.com . SOURCE ESCO Technologies Inc. Kate Lowrey, Vice President of Investor Relations, (314) 213-7277

View stock analysis, news, and events for Esco Technologies Inc.