Espey Mfg. & Electronics Corp. reports second quarter results

Rhea-AI Summary

Espey Mfg. & Electronics Corp. (NYSE: ESP) reported results for the second quarter ended December 31, 2025 and the first six months of fiscal 2026. Q2 sales fell to $12.14M from $13.61M, while Q2 net income rose to $2.81M ($0.99 GAAP diluted). Six-month sales were $21.23M versus $24.05M year-earlier; six-month net income was $4.97M ($1.75 GAAP diluted). Backlog increased to $134.7M at Dec 31, 2025. New orders in the six months were $16.3M, down from $46.9M a year earlier. Management cited timing shifts in deliverables and expects execution in the second half.

Positive

• Q2 net income +47% to $2.805M
• Six-month net income +42% to $4.975M
• Order backlog +12% to $134.7M at Dec 31, 2025

Negative

• Q2 net sales down ~10.8% to $12.14M
• Six-month net sales down ~11.7% to $21.23M
• New orders down from $46.9M to $16.3M in six months

News Market Reaction

+3.09% 1.6x vol

12 alerts

+3.09% News Effect

-12.7% Trough in 19 hr 45 min

+$5M Valuation Impact

$182M Market Cap

1.6x Rel. Volume

On the day this news was published, ESP gained 3.09%, reflecting a moderate positive market reaction. Argus tracked a trough of -12.7% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $5M to the company's valuation, bringing the market cap to $182M at that time. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q2 FY2026 sales: $12,136,903 Q2 FY2026 net income: $2,805,109 Q2 diluted EPS: $0.99 +5 more

8 metrics

Q2 FY2026 sales $12,136,903 Quarter ended Dec 31, 2025; vs. $13,608,740 prior-year Q2

Q2 FY2026 net income $2,805,109 Quarter ended Dec 31, 2025; vs. $1,908,499 prior-year Q2

Q2 diluted EPS $0.99 Quarter ended Dec 31, 2025; vs. $0.71 prior-year Q2

H1 FY2026 net sales $21,229,779 Six months ended Dec 31, 2025; vs. $24,051,958 H1 FY2025

H1 FY2026 net income $4,974,945 Six months ended Dec 31, 2025; vs. $3,506,816 H1 FY2025

H1 FY2026 diluted EPS $1.75 Six months ended Dec 31, 2025; vs. $1.32 H1 FY2025

Backlog $134.7 million As of Dec 31, 2025; vs. ~$120.1 million Dec 31, 2024

New orders H1 FY2026 $16.3 million First six months FY2026; vs. ~$46.9 million H1 FY2025

Market Reality Check

Price: $50.50 Vol: Volume 50,223 is 2.56x th...

high vol

$50.50 Last Close

Volume Volume 50,223 is 2.56x the 20-day average of 19,615, showing elevated interest into this earnings release. high

Technical Trading above the 200-day MA of $42.99, with price at $60.14, near the $60.80 52-week high.

Peers on Argus

ESP gained 5.75% while peers were mixed: ULBI +1.4%, NEOV +3.38%, TGEN +2.91%, R...

ESP gained 5.75% while peers were mixed: ULBI +1.4%, NEOV +3.38%, TGEN +2.91%, RFIL +0.62%, SKYX -0.9%. The magnitude of ESP’s move suggests a stock-specific reaction to its earnings.

Previous Earnings Reports

5 past events · Latest: Nov 12 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 12	Q1 FY2026 earnings	Positive	-0.3%	Higher net income and margin despite lower sales and stronger backlog.
Sep 16	FY2025 results	Positive	-1.4%	Strong FY2025 growth in sales, earnings, backlog, and new orders.
May 12	Q3 FY2025 earnings	Positive	+9.8%	Robust Q3 and nine‑month sales, earnings, and major backlog expansion.
Feb 12	Q2 FY2025 earnings	Positive	+0.3%	Strong Q2 and first‑half FY2025 growth with rising backlog and orders.
Nov 13	Q1 FY2025 earnings	Positive	-2.8%	Q1 FY2025 sales and earnings growth alongside a larger backlog.

Pattern Detected

Earnings headlines have generally highlighted strong results and backlog growth, but price reactions have been mixed, with three negative and two positive moves, indicating that strong fundamentals have not always translated into immediate price strength.

Recent Company History

Over the past few earnings cycles, Espey reported improving profitability and expanding backlog. Q1 FY2026 showed higher net income on lower sales and backlog around $141.1M. FY2025 earnings highlighted rising annual sales, net income of $8.14M, and backlog of $139.7M. Earlier FY2025 quarters also featured strong year-over-year growth and large new order wins. Today’s second‑quarter FY2026 release continues the theme of solid margins and a larger backlog, though with softer sales and new orders compared with prior periods.

Historical Comparison

+1.1% avg move · In the past 5 earnings releases, ESP’s average move was about 1.1%. Today’s +5.75% reaction to Q2 FY...

earnings

+1.1%

Average Historical Move earnings

In the past 5 earnings releases, ESP’s average move was about 1.1%. Today’s +5.75% reaction to Q2 FY2026 results stands noticeably larger than typical earnings-day volatility.

Recent earnings show a pattern of rising profitability and backlog from FY2025 into FY2026, with periodic sales softness offset by margin improvements and funded defense and industrial contracts.

Market Pulse Summary

This announcement highlights Q2 and first‑half FY2026 results with lower sales but significantly hig...

Analysis

This announcement highlights Q2 and first‑half FY2026 results with lower sales but significantly higher net income of $2.8M for the quarter and $5.0M year‑to‑date. Backlog rose to $134.7M, but new orders slowed to $16.3M versus roughly $46.9M a year earlier, indicating potential lumpiness in demand. Recent earnings history shows recurring margin improvements and backlog growth. Investors may watch how order intake, backlog conversion, and profitability trends develop over the remainder of fiscal 2026.

Key Terms

forward-looking statements, safe harbor provisions

2 terms

forward-looking statements regulatory

"This press release may contain certain statements that are "forward-looking statements""

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

safe harbor provisions regulatory

"and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act"

Safe harbor provisions are rules or legal protections that shield companies or individuals from certain penalties or liabilities when they follow specific guidelines or procedures. They provide a sense of security, encouraging compliance and innovation by reducing the fear of legal repercussions if they act in good faith. For investors, these provisions help ensure that companies are transparent and accountable without the risk of unfair punishment for honest mistakes.

AI-generated analysis. Not financial advice.

SARATOGA SPRINGS, N.Y., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces results for the first six months of fiscal year 2026.

Sales for the second quarter of fiscal year 2026, ending December 31, 2025, were $12,136,903 compared to fiscal year 2025 second quarter sales of $13,608,740. Net income for the quarter was $2,805,109, $0.99 per diluted share, as compared to net income of $1,908,499, $0.71 per diluted share for the same quarter last year.

For the six months ending December 31,2025, net sales were $21,229,779, compared to $24,051,958 for the first six months of fiscal year 2025. Net income for the period was $4,974,945, $1.75 per diluted share, compared with net income of $3,506,816, $1.32 per diluted share, for the same period last year.

The backlog for the Company was $134.7 million at December 31, 2025, compared with last year's backlog of approximately $120.1 million at December 31, 2024. New orders in the first six months of fiscal year 2026 were $16.3 million, compared to new orders in the first six months of fiscal year 2025 of approximately $46.9 million, which included $29.5 million in multi-year contract awards.

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

We delivered solid margins, made meaningful progress across key programs, and continue to see encouraging trends as we move through the year. We experienced some top-line impacts from factors outside of our control that resulted in a timing shift for certain deliverables. We are working closely with our customers and vendors to execute on these milestones in the second half of the year and remain on pace to deliver better results than the prior year. Our performance reflects the underlying strength of our business and disciplined execution against our strategic priorities. I would like to congratulate and thank our employees for their dedication, collaboration, and continued focus, which positions us well for sustained momentum.

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 were Espey (ESP) second quarter sales and net income for Q2 2026?

Espey reported Q2 sales of $12.14 million and net income of $2.805 million ($0.99 per diluted share). According to the company, sales declined versus prior year while net income improved due to stronger margins and program execution.

How did Espey (ESP) perform for the first six months of fiscal 2026 versus 2025?

For the six months, Espey reported $21.23 million in net sales and $4.975 million net income ($1.75 per diluted share). According to the company, sales fell year-over-year but net income rose on improved margins and execution.

What is Espey (ESP) backlog at December 31, 2025 and why does it matter?

Espey reported a backlog of $134.7 million at Dec 31, 2025, showing contract visibility. According to the company, a larger backlog supports future revenue potential and reflects continued demand for its specialized power products.

Why did Espey (ESP) see lower new orders in the first half of fiscal 2026?

New orders fell to $16.3 million in the first six months versus $46.9 million a year earlier, which included large multi-year awards. According to the company, timing shifts and absence of prior-year multi-year contract awards explain the decline.

What did Espey (ESP) management say about outlook and execution for FY2026?

Management said the company delivered solid margins, advanced key programs, and expects to execute delayed milestones in H2. According to the company, close work with customers and vendors should support improved results in the second half of fiscal 2026.

How did Espey (ESP) EPS change year-over-year for the periods reported?

Q2 diluted EPS rose to $0.99 from $0.71, and six-month diluted EPS rose to $1.75 from $1.32. According to the company, higher margins and net income drove the EPS increases despite lower sales levels.