Espey Mfg. & Electronics Corp. reports second quarter results

Espey Mfg. & Electronics Corp. (NYSE: ESP) reported results for the second quarter ended December 31, 2025 and the first six months of fiscal 2026.

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

Argus Feb 11 session

-8.73% close to close Open Argus

Details

News Market Reaction – ESP

In the Feb 11 session, ESP declined 8.73%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -8.7% in the session following this news. A negative reaction despite stronger margi...

Analysis

The stock moved -8.7% in the session following this news. A negative reaction despite stronger margins would have fit past patterns where earnings strength did not always support the share price. Q2 and H1 FY2026 delivered higher net income of $2.8M and $5.0M, but revenue fell and new orders dropped to $16.3M from about $46.9M. With the stock trading well above its $42.99 200‑day MA and near a $60.80 52‑week high beforehand, any concern over order trends could have amplified downside pressure.

Key Figures

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

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

Previous Earnings Reports

5 past events · Latest: Nov 12

Same Type 5 events

1. Nov 12

   Q1 FY2026 earnings

   24h Move

   -0.3%

   Higher net income and margin despite lower sales and stronger backlog.

2. Sep 16

   FY2025 results

   24h Move

   -1.4%

   Strong FY2025 growth in sales, earnings, backlog, and new orders.

3. May 12

   Q3 FY2025 earnings

   24h Move

   +9.8%

   Robust Q3 and nine‑month sales, earnings, and major backlog expansion.

4. Feb 12

   Q2 FY2025 earnings

   24h Move

   +0.3%

   Strong Q2 and first‑half FY2025 growth with rising backlog and orders.

5. Nov 13

   Q1 FY2025 earnings

   24h Move

   -2.8%

   Q1 FY2025 sales and earnings growth alongside a larger backlog.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

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. How Rhea-AI works. Not financial advice.

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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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

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.