ESCO Reports Fourth Quarter And Fiscal 2025 Results

Rhea-AI Summary

ESCO (NYSE: ESE) reported Q4 2025 and FY 2025 results with broad improvement in sales, orders, margins and earnings.

Key metrics: Q4 sales $353M (+29%), FY 2025 sales $1.10B (+19%), FY entered orders $1.6B (+57%), record year-end backlog $1.1B, Q4 adjusted EPS from continuing operations $2.32 (+30%), FY adjusted EPS $6.03 (+26%). The company closed the VACCO divestiture and recognized an after-tax gain of $173M.

Cash from continuing operations was $200M for FY 2025. Management guides FY 2026 to 16–20% sales growth and Adjusted EPS $7.50–$7.80.

Positive

• FY sales +19.2% to $1.10B
• FY entered orders +56.5% to $1.6B
• FY adjusted EPS +26.4% to $6.03
• Discontinued operations gain after-tax $173M on VACCO sale

Negative

• Q4 consolidated book-to-bill 0.91x (entered orders $321M vs. sales $353M)
• Accrued tax liability of $59M related to VACCO gain, payable in H1 FY2026
• Year-end backlog includes $364M of acquired backlog from Maritime

Insights

Corporate Financial Analyst

Strong revenue, orders, margins, and cash flow with upbeat FY2026 guidance and a one-time discontinued gain.

ESCO delivered broad-based growth: Q4 sales rose 29% to $353 million and FY sales rose 19% to $1.1 billion, while FY entered orders jumped to $1.6 billion producing a record year-end backlog of $1.1 billion. Adjusted EPS from Continuing Operations rose to $6.03 for FY 2025 and operating cash flow improved to $200 million for the year; management also completed the VACCO divestiture and recognized an after-tax gain of $173 million with an accrued tax of $59 million.

Operationally, results reflect a mix of organic growth and the Maritime acquisition: organic sales contributed $81 million for the year while Maritime added $95 million. Segment leverage lifted Adjusted EBIT margins across Aerospace & Defense, USG, and Test despite inflationary pressures, and book-to-bill expanded to 1.43 for the year. Key dependencies include successful integration of acquired backlog and the timing of government and commercial orders; the VACCO sale creates a tax cash outflow anticipated in the first half of FY 2026.

Concrete near-term items to watch include the FY 2026 guidance range of 16-20% sales growth to $1.27-$1.31 billion, Adjusted EPS guidance of $7.50-$7.80, Q1 2026 adjusted EPS guidance of $1.25-$1.35, and the scheduled tax payment on the VACCO gain in the first half of FY 2026. Time horizon: monitor quarterly execution and order conversion over the next 12 months to confirm organic growth and margin targets.

- Q4 Sales increase 29% to $353 Million - Q4 Entered Orders increase 30% to $321 Million - Q4 GAAP EPS from Continuing Operations increases 14% to $1.73 - Q4 Adjusted EPS from Continuing Operations increases 30% to $2.32 - FY 2025 Sales increase 19% to $1.1 Billion - FY 2025 Entered Orders increase 57% to $1.6 Billion - FY 2025 GAAP EPS from Continuing Operations increases 13% to $4.49 - FY 2025 Adjusted EPS from Continuing Operations increases 26% to $6.03 -

St. Louis, Nov. 20, 2025 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the fourth quarter and fiscal year ended September 30, 2025 (Q4 2025 and FY 2025, respectively). During Q4 2025, the Company 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.

Operating Highlights

• Q4 2025 Sales increased $79 million (28.9 percent) to $353 million compared to $274 million in Q4 2024. Q4 organic sales increased $21 million (7.7 percent) and the Maritime acquisition contributed $58 million (21.2 percent) of revenue growth in the quarter.   
• FY 2025 Sales increased $176 million (19.2 percent) to $1.1 billion compared to $919 million in FY 2024. Organic sales increased $81 million (8.8 percent) and the Maritime acquisition added $95 million (10.4 percent) of revenue growth for the full year.   
• Q4 2025 GAAP EPS from Continuing Operations increased 13.8 percent to $1.73 per share compared to $1.52 per share in Q4 2024. Q4 2025 Adjusted EPS from Continuing Operations increased 29.6 percent to $2.32 per share compared to $1.79 per share in Q4 2024.
• FY 2025 GAAP EPS from Continuing Operations increased 13.1 percent to $4.49 per share compared to $3.97 per share in FY 2024. FY 2025 Adjusted EPS from Continuing Operations increased 26.4 percent to $6.03 per share compared to $4.77 per share in FY 2024.
• Q4 2025 Entered Orders increased $73 million (29.7 percent) to $321 million (book-to-bill of 0.91x).
• FY 2025 Entered Orders increased $565 million (56.5 percent) to $1.6 billion (book-to-bill of 1.43x), resulting in record year-end backlog of $1.1 billion. Excluding $364 million of acquired backlog at Maritime, FY 2025 orders increased $201 million (20.1 percent) over the prior year.     
• Net Cash provided by Operating Activities from Continuing Operations was $112 million in Q4 2025 and $200 million for FY 2025 (an increase of $79 million compared to FY 2024).
  
  

Bryan Sayler, Chief Executive Officer and President, commented, “We finished the year strong with another great quarter highlighted by 29 percent sales growth, 100 basis points of Adjusted EBIT margin improvement, and a 30 percent increase in Adjusted EPS from Continuing Operations.

“For the year, strong end-market demand, disciplined execution, and the acquisition of Maritime drove record sales, orders, backlog and Adjusted EPS. These results underscore the strength of our strategic positioning and our ability to create sustainable value in attractive markets.

“It was a truly historic year for ESCO as we continued to build on our solid foundation, delivering value across the enterprise while enhancing our portfolio by completing two consequential transactions. These accomplishments were the result of a lot of hard work and I would like to extend my appreciation to our entire team for their energy, focus, and dedication. Our collective efforts helped drive significant improvement in operating performance while taking a meaningful step forward in the evolution of the company.”

Segment Performance

Aerospace & Defense (A&D)

• Q4 2025 sales increased $71 million (71.6 percent) to $170 million from $99 million in Q4 2024. Organic sales increased $13 million (13.1 percent) and Maritime added $58 million (58.5 percent) of revenue growth in the quarter. FY 2025 sales increased $137 million (40.4 percent) to $478 million from $341 million in FY 2024. Organic sales increased $42 million (12.5 percent) and Maritime added $95 million (27.9 percent) of revenue growth for the year.   Sales growth in both the quarter and the year was driven by strength in Navy and commercial aerospace.
• Q4 2025 EBIT increased $17.0 million to $46.9 million from $29.9 million in Q4 2024. Adjusted EBIT increased $18.8 million in Q4 2025 to $48.7 million (28.6 percent margin) from $29.9 million (30.1 percent margin) in Q4 2024. The 63 percent increase in Adjusted EBIT was driven by the Maritime acquisition as well as leverage on higher volume, price increases, and mix. FY 2025 EBIT increased $39.3 million to $125.1 million from $85.8 million in FY 2024. FY 2025 Adjusted EBIT increased $43.7 million to $129.7 million (27.1 percent margin) from $86.0 million (25.2 percent margin) in FY 2024. Leverage on higher volume, price increases, mix, and the impact of Maritime more than offset inflationary pressures for the year.
• Q4 2025 entered orders increased $53 million (60.1 percent) to $141.9 million (book-to-bill of 0.83). Q4 orders growth was driven by strong commercial and defense aerospace orders at PTI and $43 million of Maritime orders. FY 2025 entered orders increased $465 million (108 percent) to $896 million (book-to-bill of 1.87) resulting in record year-end backlog of $803 million. FY 2025 included $364 million of acquired backlog at Maritime. Without this impact, A&D orders increased $101 million (23 percent) primarily driven by higher Navy orders at Globe and the addition of Maritime.
  
  

Utility Solutions Group (USG)

• Q4 2025 sales increased $2 million (1.6 percent) to $110 million from $108 million in Q4 2024. Doble sales increased by $6 million (6.8 percent) and NRG sales decreased by $4 million (19.7 percent). FY 2025 sales increased $11 million (3.0 percent) to $380 million from $369 million in FY 2024. Doble sales increased $18 million (6.0 percent) and NRG sales decreased $7 million (9.6 percent) for the year. Sales growth in both the quarter and the year was driven by higher offline test equipment, protection testing, and services, partially offset by lower condition monitoring sales at Doble and lower renewables revenue at NRG.
• Q4 2025 EBIT increased $3.3 million to $31.9 million from $28.6 million in Q4 2024. Adjusted EBIT increased $3.4 million in Q4 2025 to $32.0 million (29.1 percent margin) from $28.6 million (26.4 percent margin) in Q4 2024. FY 2025 EBIT increased $8.8 million to $94.7 million from $85.9 million in FY 2024. FY 2025 Adjusted EBIT increased $9.1 million to $95.2 million (25.0 percent margin) from $86.1 million (23.3 percent margin) in FY 2024. Adjusted EBIT increases for the quarter and year were largely driven by price increases and mix, partially offset by inflationary pressures.
• Q4 2025 entered orders increased $17 million (16.8 percent) to $116 million (book-to-bill of 1.05). Record quarterly orders at Doble increased $21 million (25.7 percent) to $101 million and NRG orders decreased $4 million (21.2 percent) to $15 million compared to Q4 2024. FY 2025 entered orders increased $48 million (13.5 percent) to $404 million (book-to-bill of 1.06) resulting in year-end backlog of $143 million. For the year, Doble orders increased $47 million (16.2 percent) related to increased electric utility spending to maintain and expand the grid. NRG orders increased $1 million (1.4 percent) as renewables project developers focused on completing current projects as tax credits sunset under new U.S. tax legislation approved during the year.
  
  

RF Test & Measurement (Test)

• Q4 2025 sales increased $6 million (9.6 percent) to $72 million from $66 million in Q4 2024. FY 2025 sales increased $27 million (13.2 percent) to $237 million from $210 million in FY 2024.   Sales growth in both the quarter and the year was largely driven by higher Test & Measurement (EMC) and industrial shielding sales, partially offset by lower wireless sales.
• Q4 2025 EBIT and Adjusted EBIT both increased $0.6 million to $12.6 million (17.5 percent margin) from $12.0 million (18.3 percent margin) in Q4 2024.   The Adjusted EBIT margin was lower than the record margin of 18.3 percent in Q4 2024 as leverage on higher volume and price increases were offset by inflationary pressures. FY 2025 EBIT increased $5.5 million to $34.1 million from $28.6 million in FY 2024. FY 2025 Adjusted EBIT also increased $5.5 million to $34.6 million (14.6 percent margin) from $29.1 million (13.9 percent margin) in FY 2024. Leverage on higher volume and price increases in FY 2025 were partially offset by inflationary pressures and unfavorable mix.
• Q4 2025 entered orders increased $3.4 million (5.8 percent) to $63 million. Higher Test orders were highlighted by a $5.5 million defense project booked in the quarter. FY 2025 entered orders increased $53 million (24.6 percent) to a record $266 million (book-to-bill of 1.12) resulting in year-end backlog of $187 million. With the exception of the wireless market, Test experienced a broad rebound in orders across other served markets in FY 2025.
  
  

Discontinued Operations - VACCO Industries Divestiture
As previously announced, the Company closed the divestiture of VACCO Industries on July 18, 2025. During the fourth quarter, the Company recognized an after-tax gain of $173 million related to the sale and $1.1 million in earnings related to discontinued operations. An accrued tax expense of $59 million was recorded in the quarter, with the anticipation of making the tax payment related to the gain on the sale in the first half of FY 2026.

Business Outlook – FY 2026
Management expects double-digit sales, Adjusted EBIT, Adjusted EBITDA, and Adjusted EPS growth in FY 2026.

Expectations for growth in FY 2026 compared to FY 2025:

• Net sales are expected to grow 16 to 20 percent to a range of $1.27 to $1.31 billion on a consolidated basis, with A&D growing 33 to 38 percent (6 to 8 percent organic growth plus Maritime revenue of $230 to $245 million), USG growing 4 to 6 percent, and Test growing 3 to 5 percent.
• Adjusted EBIT is expected to increase approximately 21 to 25 percent with Adjusted EBIT margins increasing to 20.9 to 21.5 percent of sales.
• Adjusted EBITDA is expected to increase approximately 20 to 24 percent with Adjusted EBITDA margins increasing to 23.8 to 24.6 percent of sales.
• The effective income tax rate is expected to be in the range of 23.7 to 24.1 percent in 2026.
• FY 2026 Adjusted EPS is expected to increase 24 to 29 percent to a range of $7.50 to $7.80 per share.
• Q1 2026 Adjusted EPS is expected to increase 32 to 42 percent compared to the prior year first quarter and be in the range of $1.25 - $1.35 per share.
• Consistent with prior years, revenues and Adjusted EPS are expected to grow sequentially throughout the year.
  
  
  

Dividend Payment
The next quarterly cash dividend of $0.08 per share will be paid on January 16, 2026 to stockholders of record on January 2, 2026.  

2026 Annual Meeting
The 2026 Annual Meeting of the Company’s shareholders will be held on January 30, 2026.

Conference Call
The Company will host a conference call today, November 20, at 4:00 p.m. Central Time, to discuss the Company’s Q4 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 2026, 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 release, 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.
   
   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
						Three Months Ended September 30, 2025			Three Months Ended September 30, 2024
Net Sales					$	352,674			273,506
Cost and Expenses:
		Cost of sales				203,235			152,129
		Selling, general and administrative expenses				63,333			55,596
		Amortization of intangible assets				20,582			8,219
		Interest expense				5,129			6,019
		Other (income) expenses, net				828			960
			Total costs and expenses			293,107			222,923
Earnings before income taxes						59,567			50,583
Income tax expense						14,713			11,285
			Net earnings from continuing operations			44,854			39,298
Earnings (loss) from discontinued operations, net of tax expense
(benefit) of $458 and $(1,506)						1,156			(5,035	)
Gain on sale of discontinued operations, net of tax expense
of $54,000						172,642			0
			Net earnings from discontinued operations			173,798			(5,035	)
			Net earnings		$	218,652			34,263
				Diluted - GAAP
				Continuing operations	$	1.73			1.52
				Discontinued operations		6.70			(0.19	)
				Net earnings	$	8.43			1.33
				Diluted - As Adjusted Basis
				Continuing Operations	$	2.32	(1	)	1.79		(2	)
				Diluted average common shares O/S:		25,928			25,854
(1	)	Q4 2025 Adjusted EPS from continuing operations excludes $0.59 per share of after-tax charges consisting of: $0.05 of Maritime inventory step-up charges, $0.01 of restructuring charges (primarily severance) within the USG segment, and $0.53 of acquisition related amortization.
(2	)	Q4 2024 Adjusted EPS from continuing operations excludes $0.27 per share of after-tax charges consisting of: $0.09 of debt financing and $0.03 of acquisition costs at Corporate, and $0.15 of acquisition related amortization.

    
   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
						Year Ended September 30, 2025			Year Ended September 30, 2024
Net Sales					$	1,095,388			919,127
Cost and Expenses:
		Cost of sales				634,303			530,555
		Selling, general and administrative expenses				234,638			208,203
		Amortization of intangible assets				53,317			32,804
		Interest expense				17,502			15,247
		Other expenses (income), net				2,775			1,365
			Total costs and expenses			942,535			788,174
Earnings before income taxes						152,853			130,953
Income tax expense						36,554			28,325
			Net earnings from continuing operations			116,299			102,628
Earnings (loss) from discontinued operations, net of tax expense
(benefit) of $3,464 and $(317)						10,282			(747	)
Gain on sale of discontinued operations, net of tax expense
of $54,000						172,642			0
			Net earnings (loss) from discontinued operations			182,924			(747	)
			Net earnings		$	299,223			101,881
				Diluted - GAAP
				Continuing operations		4.49			3.97
				Discontinued operations		7.06			(0.03	)
				Net earnings	$	11.55			3.94
				Diluted - As Adjusted Basis
				Continuing Operations	$	6.03	(1	)	4.77		(2	)
				Diluted average common shares O/S:		25,910			25,872
(1	)	FY 2025 Adjusted EPS from continuing operations excludes $1.54 per share of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.14 of Maritime inventory step-up charges and stamp duties, $0.02 of restructuring charges within the Test and USG segments, and $1.23 of acquisition related amortization.
(2	)	FY 2024 Adjusted EPS from continuing operations excludes $0.80 per share of after-tax charges consisting of: $0.09 of debt financing and $0.06 of acquisition costs at Corporate, $0.04 of MPE acquisition backlog and inventory step-up charges, $0.02 of restructuring charges (primarily severance) within the A&D, Test, and USG segments, and $0.59 of acquisition related amortization.

    

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited) - Continuing Operations basis
(Dollars in thousands)
				GAAP						As Adjusted
				Q4 2025			Q4 2024			Q4 2025			Q4 2024
Net Sales
	Aerospace & Defense		$	170,373			99,264			170,373			99,264
	USG			110,211			108,491			110,211			108,491
	Test			72,090			65,751			72,090			65,751
		Totals	$	352,674			273,506			352,674			273,506
EBIT
	Aerospace & Defense		$	46,893			29,892			48,660			29,922
	USG			31,933			28,563			32,019			28,593
	Test			12,588			12,015			12,588			12,015
	Corporate			(26,718	)		(13,868	)		(8,852	)		(7,912	)
		Consolidated EBIT		64,696			56,602			84,415			62,618
		Less: Interest expense		(5,129	)		(6,019	)		(5,129	)		(2,969	)
		Less: Income tax expense		(14,713	)		(11,285	)		(19,248	)		(13,370	)
		Net earnings	$	44,854			39,298			60,038			46,279
Note 1: Adjusted net earnings of $60.0 million in Q4 2025 exclude $15.2 million (or $0.59 per share) of after-tax charges consisting of: $0.05 of Maritime inventory step-up charges, $0.01 of restructuring charges (primarily severance) within the USG segment, and $0.53 of acquisition related amortization.
Note 2: Adjusted net earnings of $46.3 million in Q4 2024 exclude $7.0 million (or $0.27 per share) of after-tax charges consisting of: $0.09 of debt financing and $0.03 of acquisition costs at Corporate, and $0.15 of acquisition related amortization.
EBITDA Reconciliation to Net earnings:										Q4 2025 -			Q4 2024 -
				Q4 2025			Q4 2024			As Adj			As Adj
Consolidated EBITDA			$	91,316			69,785			93,328			70,758
Less: Depr & Amort				(26,620	)		(13,183	)		(8,913	)		(8,140	)
Consolidated EBIT				64,696			56,602			84,415			62,618
Less: Interest expense				(5,129	)		(6,019	)		(5,129	)		(2,969	)
Less: Income tax expense				(14,713	)		(11,285	)		(19,248	)		(13,370	)
Net earnings			$	44,854			39,298			60,038			46,279

   
   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited) - Continuing Operations basis
(Dollars in thousands)
				GAAP						As Adjusted
				FY 25			FY 24			FY 25			FY 24
Net Sales
	Aerospace & Defense		$	478,192			340,543			478,192			340,543
	USG			379,995			369,061			379,995			369,061
	Test			237,201			209,523			237,201			209,523
		Totals	$	1,095,388			919,127			1,095,388			919,127
EBIT
	Aerospace & Defense		$	125,139			85,811			129,676			85,983
	USG			94,741			85,918			95,159			86,143
	Test			34,111			28,628			34,576			29,109
	Corporate			(83,636	)		(54,157	)		(36,994	)		(31,338	)
		Consolidated EBIT		170,355			146,200			222,417			169,897
		Less: Interest expense		(17,502	)		(15,247	)		(17,502	)		(12,197	)
		Less: Income tax		(36,554	)		(28,325	)		(48,527	)		(34,476	)
		Net earnings	$	116,299			102,628			156,388			123,224
Note 1: Adjusted net earnings of $156.4 million in FY 2025 exclude $40.1 million (or $1.54 per share) of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.14 of Maritime inventory step-up charges and stamp duties, $0.02 of restructuring charges within the Test and USG segments, and $1.23 of acquisition related amortization.
Note 2: Adjusted net earnings of $123.2 million in FY 2024 exclude $20.6 million (or $0.80 per share) of after-tax charges consisting of: $0.09 of debt financing and $0.06 of acquisition costs at Corporate, $0.04 of MPE acquisition backlog and inventory step-up charges, $0.02 of restructuring charges (primarily severance) in the A&D, Test, and USG segments, and $0.59 of acquisition related amortization.
EBITDA Reconciliation to Net earnings:										FY 2025 -			FY 2024 -
				FY 25			FY 24			As Adj			As Adj
Consolidated EBITDA			$	245,376			198,355			256,303			201,476
Less: Depr & Amort				(75,021	)		(52,155	)		(33,886	)		(31,579	)
Consolidated EBIT				170,355			146,200			222,417			169,897
Less: Interest expense				(17,502	)		(15,247	)		(17,502	)		(12,197	)
Less: Income tax expense				(36,554	)		(28,325	)		(48,527	)		(34,476	)
Net earnings			$	116,299			102,628			156,388			123,224

   
   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
				September 30, 2025		September 30, 2024
Assets
	Cash and cash equivalents		$	101,350		65,963
	Accounts receivable, net			253,554		222,101
	Contract assets			90,730		66,712
	Inventories			217,807		195,465
	Other current assets			25,065		21,027
	Assets from discontinued operations - current			0		97,381
		Total current assets		688,506		668,649
	Property, plant and equipment, net			172,493		149,251
	Intangible assets, net			723,973		403,524
	Goodwill			761,931		529,935
	Operating lease assets			47,707		37,476
	Other assets			15,778		13,791
	Assets from discontinued operations - other			0		35,994
			$	2,410,388		1,838,620
Liabilities and Shareholders' Equity
	Current maturities of long-term debt		$	20,000		20,000
	Accounts payable			96,534		88,936
	Contract liabilities			216,590		80,844
	Current income tax payable			62,007		6,251
	Other current liabilities			113,017		91,324
	Liabilities from discontinued operations - current			0		62,499
		Total current liabilities		508,148		349,854
	Deferred tax liabilities			112,390		72,623
	Non-current operating lease liabilities			44,403		34,810
	Other liabilities			38,576		39,273
	Long-term debt			166,000		102,000
	Liabilities from discontinued operations - other			0		2,710
	Shareholders' equity			1,540,871		1,237,350
			$	2,410,388		1,838,620

   
   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
		Year Ended September 30, 2025			Year Ended September 30, 2024
Cash flows from operating activities:
Net earnings	$	299,223			101,881
(Earnings) loss from discontinued operations		(182,924	)		747
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization		75,021			52,155
Stock compensation expense		10,671			8,599
Changes in assets and liabilities		9,381			(33,406	)
Effect of deferred taxes		(10,976	)		(8,394	)
Net cash provided by operating activities - continuing operations		200,396			121,582
Net cash provided by operating activities - discontinued operations		41,543			5,960
Net cash provided by operating activities		241,939			127,542
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(472,006	)		(56,383	)
Capital expenditures		(36,322	)		(28,275	)
Additions to capitalized software and other		(15,844	)		(11,903	)
Net cash used by investing activities - continuing operations		(524,172	)		(96,561	)
Net cash provided (used) by investing activities - discontinued operations		268,383			(8,078	)
Net cash used by investing activities		(255,789	)		(104,639	)
Cash flows from financing activities:
Proceeds from long-term debt		661,000			217,000
Principal payments on long-term debt and short-term borrowings		(597,000	)		(197,000	)
Dividends paid		(8,262	)		(8,246	)
Purchases of common stock into treasury		0			(7,998	)
Debt issuance costs		0			(2,988	)
Other		(6,197	)		(1,541	)
Net cash provided by financing activities - continuing operations		49,541			(773	)
Net cash used by financing activities - discontinued operations		0			0
Net cash provided by financing activities		49,541			(773	)
Effect of exchange rate changes on cash and cash equivalents		(304	)		1,967
Net increase in cash and cash equivalents		35,387			24,097
Cash and cash equivalents, beginning of period		65,963			41,866
Cash and cash equivalents, end of period	$	101,350			65,963

      

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Other Selected Financial Data (Unaudited) - Continuing Operations Basis
(Dollars in thousands)
Backlog And Entered Orders - Q4 2025				A&D			USG			Test			Total
	Beginning Backlog - 7/1/25		$	831,521			137,441			196,460			1,165,422
	Entered Orders			141,854			116,230			62,805			320,889
	Sales			(170,373	)		(110,211	)		(72,090	)		(352,674	)
	Ending Backlog - 9/30/25		$	803,002			143,460			187,175			1,133,637
Backlog And Entered Orders - FY 2025				A&D			USG			Test			Total
	Beginning Backlog - 10/1/24		$	385,601			119,943			158,644			664,188
	Entered Orders			895,593			403,512			265,732			1,564,837
	Sales			(478,192	)		(379,995	)		(237,201	)		(1,095,388	)
	Ending Backlog - 9/30/25		$	803,002			143,460			187,175			1,133,637

      
   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (Unaudited)
EPS – Adjusted Basis Reconciliation – Q4 2025
	EPS Continuing Operations– GAAP Basis – Q4 2025	$	1.73
	Adjustments (defined below)		0.59
	EPS Continuing Operations– As Adjusted Basis – Q4 2025	$	2.32
	Adjustments exclude $0.59 per share consisting primarily of: $0.05 of Maritime
	inventory step-up charges. $0.01 of restructuring charges within the USG segment
	and $0.53 of acquisition related amortization.
EPS – Adjusted Basis Reconciliation – Q4 2024
	EPS Continuing Operations– GAAP Basis – Q4 2024	$	1.52
	Adjustments (defined below)		0.27
	EPS Continuing Operations– As Adjusted Basis – Q4 2024	$	1.79
	Adjustments exclude $0.27 per share consisting primarily of: $0.09 of debt financing
	and $0.03 of acquisition costs at Corporate, and $0.15 of acquisition related amortization.
EPS – Adjusted Basis Reconciliation – FY 2025
	EPS Continuing Operations– GAAP Basis – FY 2025	$	4.49
	Adjustments (defined below)		1.54
	EPS Continuing Operations – As Adjusted Basis – FY 2025	$	6.03
	Adjustments exclude $1.54 per share consisting primarily of: $0.15 of Corporate
	acquisition costs, $0.14 of Maritime inventory step-up charges and stamp duties,
	$0.02 of restructuring charges within the Test and USG segments, and $1.23 of
	acquisition related amortization.
EPS – Adjusted Basis Reconciliation – FY 2024
	EPS Continuing Operations – GAAP Basis – FY 2024	$	3.97
	Adjustments (defined below)		0.80
	EPS Continuing Operations – As Adjusted Basis – FY 2024	$	4.77
	Adjustments exclude $0.80 per share consisting primarily of: $0.09 of debt financing
	and $0.06 of acquisition costs at Corporate, $0.04 of MPE acquisition backlog and
	inventory step-up charges, $0.02 of restructuring charges within the Test, A&D and
	USG segments and $0.59 of acquisition related amortization.

SOURCE ESCO Technologies Inc.        
Kate Lowrey, Vice President of Investor Relations, (314) 213-7277

FAQ

What were ESCO (ESE) Q4 2025 sales and growth rate?

ESCO reported Q4 2025 sales of $353 million, a 28.9% increase versus Q4 2024.

How much did ESCO (ESE) enter in orders for FY 2025 and what is backlog?

ESCO entered $1.6 billion of orders in FY 2025 (up 56.5%) and finished with a record backlog of $1.1 billion.

What is ESCO's FY 2026 guidance for sales and adjusted EPS (NYSE: ESE)?

Management expects FY 2026 net sales to grow 16–20% and Adjusted EPS to be $7.50–$7.80 per share.

How did the VACCO sale affect ESCO's FY 2025 results and cash taxes?

ESCO recorded an after-tax gain of $173 million on the VACCO sale and an accrued tax expense of $59 million expected to be paid in H1 FY2026.

What were ESCO's FY 2025 adjusted EPS and year-over-year change (ESE)?

FY 2025 Adjusted EPS from continuing operations was $6.03, up 26.4% year-over-year.

Did ESCO report positive cash flow from operations in FY 2025?

Yes. Net cash provided by operating activities from continuing operations was $200 million for FY 2025, an increase of $79 million versus FY 2024.