Espey Mfg. & Electronics Corp. (NYSE American: ESP) Announces Completion of Magnetics Center of Excellence Facility Expansion

Rhea-AI Summary

Espey Mfg. & Electronics (NYSE: ESP) announced that full-scale production and testing are now underway at its new Magnetics Center of Excellence, following construction completion in April 2025.

The 24,000-square-foot expansion was funded in part by a $7.4 million U.S. Navy grant awarded in fiscal 2023 under the Surface Combatant Industrial Base Development Initiative and increases the company’s MIL-STD testing capacity and testing power to support scalable growth in military and industrial magnetics.

Positive

• $7.4M U.S. Navy grant funded the facility
• 24,000-square-foot expansion now in production/testing
• Increased MIL-STD testing capacity and testing power
• Positions company for scalable growth in magnetics

Negative

• None.

Insights

Defense manufacturing analyst

Espey began full-scale production at a new 24,000-square-foot Magnetics Center, funded partly by a $7.4 million FY2023 grant.

Espey expanded manufacturing and testing capacity with a 24,000-square-foot Magnetics Center of Excellence after construction finished in April 2025. The company states full-scale production and testing operations are now underway, and the facility increases testing power and MIL-STD testing capability for transformers, inductors, and related components.

This expansion ties directly to the Surface Combatant Industrial Base Development Initiative and a $7.4 million grant awarded in fiscal year 2023. Key dependencies include sustained production utilization and follow-on defense demand; the announcement does not disclose new contracts or projected revenues. Monitor production throughput, contract awards tied to the Surface Combatant program, and any statements on utilization or incremental revenue in the next 6–12 months.

SARATOGA SPRINGS, N.Y., Oct. 22, 2025 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces that full-scale production and testing operations are now underway at its new Magnetics Center of Excellence, following the previously announced completion of construction in April 2025.

According to US Navy sources, the Surface Combatant Industrial Base Development Initiative is designed to strengthen the nation’s shipbuilding industrial base and support the increased production rates required to remain competitive on a global scale. The initiative prioritizes the development and sustainment of a U.S.-based workforce, modernization of infrastructure, expansion of domestic shipyard capacity, and the revitalization of domestic supply chains. As part of this effort, Espey Mfg. & Electronics Corp. was awarded a $7.4 million grant in fiscal year 2023 to construct a new facility aligned with these objectives. This facility significantly enhances Espey’s state-of-the-art testing capabilities, boosts testing power, and strategically positions the company for scalable growth.

Mr. David O’Neil, President and CEO, commented,

This new 24,000-square-foot expansion further supports Espey’s market leadership in advanced magnetics systems development, fabrication, and rigorous MIL-STD testing across our magnetics product portfolio. We greatly appreciate the support from the U.S. Navy through the Surface Combatant Industrial Base funding – this expansion is a direct reflection of that initiative in action. Espey remains firmly committed to co-investing with our industry partners to ensure a resilient and reliable domestic supply of MIL-STD transformers, inductors, and related components for the long term.

Espey's primary business is the development, design, and production of specialized military and industrial power supplies/transformers. The Company can be found on the internet at www.espey.com.

For further information, contact Ms. Kaitlyn O’Neil at invest@espey.com.

This press release may contain certain statements that are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

FAQ

What did ESP announce on October 22, 2025 about its new facility?

ESP said full-scale production and testing are now underway at its new Magnetics Center of Excellence.

How large is Espey’s Magnetics Center of Excellence (ESP) and when was construction completed?

The facility is 24,000 square feet and construction completed in April 2025.

How was Espey’s Magnetics Center of Excellence funded (ESP)?

The project was supported by a $7.4 million U.S. Navy grant awarded in fiscal 2023.

What capabilities does the new ESP facility add for investors?

It boosts MIL-STD testing capacity and testing power to support scalable production of transformers and inductors.

What program supported Espey’s expansion and why (ESP)?

The Surface Combatant Industrial Base Development Initiative funded the project to strengthen domestic shipbuilding supply chains and workforce.