UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-10596 ESCO TECHNOLOGIES INC. (Exact name of registrant as specified in its charter) MISSOURI 43-1554045 (State or other jurisdictio ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-10596 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ESCO TECHNOLOGIES INC. (Exact name of registrant as specified in its charter) MISSOURI 43-1554045 (State or other jurisdicti ...

Financial Data and Key Metrics Changes - Sales increased by over 16% in Q1 2023, with adjusted EBIT up over 31% and adjusted EPS up over 30% [19] - Operating cash flow declined by almost $11 million compared to the previous year, with capital spending down just over $9 million and acquisition spending dropping by nearly $16 million [9] Business Segment Data and Key Metrics Changes - Aerospace & Defense segment saw sales up 18% and adjusted EBIT up 25%, with margins expanding to 15.3% [8] - Utility Solutions Group reported nearly 12% revenue growth and adjusted EBIT margins expanded from 21.8% to 22.7% [17] - Test segment experienced a 19% increase in sales and a 36% rise in EBIT, although orders dropped by 24% [20] Market Data and Key Metrics Changes - The backlog at the end of Q1 2023 was $718 million, representing a record and a 12% increase compared to the prior year [31] - Orders growth in the Utility Solutions Group was 21%, with the renewables business growing at 35% [34] Company Strategy and Development Direction - The company is focused on improving collaboration between subsidiaries and is undergoing a strategic review to enhance growth opportunities [57] - An acquisition of CMT Materials was completed, expected to strengthen naval offerings and provide exposure to growth in unmanned submersible vehicle markets [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for products and services, despite challenges such as labor shortages and supply chain issues [31] - The outlook for the year remains positive, with expectations of continued growth across all business segments [32] Other Important Information - The full-year outlook for adjusted EPS has been tightened to a range of $3.50 to $3.60 per share [35] - The company anticipates a lower forecast in the Test business for Q2 due to ongoing disruptions in China [35] Q&A Session All Questions and Answers Question: Revenue outlook compared to previous guidance - Management indicated that growth expectations are biased towards the higher end of previous ranges, but growth will moderate from Q1 levels due to tougher comparisons [24][25] Question: Status of commercial aerospace recovery - Management believes the recovery has strong potential, with robust demand expected to continue, although supply chain disruptions remain a challenge [40] Question: Cash flow progression expectations - Management aims for free cash flow conversion in the 80% to 90% range for the year, acknowledging Q1 as a seasonal low point [43][59] Question: Confidence in Test business recovery - Management remains optimistic about the Test business, citing a strong backlog and underlying market demand despite current disruptions [47] Question: Constraints from supply and labor perspectives - Labor shortages are currently viewed as the bigger issue affecting operations, with supply chain challenges also present but expected to improve [55]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-10596 ESCO TECHNOLOGIES INC. (Exact name of registrant as specified in its charter) MISSOURI 43-1554045 (State or other jurisdi ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) ESCO Technologies Inc. provides engineered products across Aerospace & Defense, Utility Solutions, and RF Shielding and Test segments - The company operates through three main segments: **Aerospace & Defense (A&D)**, **Utility Solutions Group (USG)**, and **RF Shielding and Test (Test)**[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) Revenue Contribution by Segment (FY2020-2022) | Segment | 2022 Revenue % | 2021 Revenue % | 2020 Revenue % | | :--- | :--- | :--- | :--- | | Aerospace & Defense (A&D) | 41% | 44% | 48% | | Utility Solutions Group (USG) | 32% | 28% | 26% | | RF Shielding and Test (Test) | 27% | 28% | 26% | - Sales to the U.S. Government, primarily from the A&D segment, accounted for approximately **27% of total revenue** in 2022. International sales made up about **30% of total revenue** in the same year[26](index=26&type=chunk)[27](index=27&type=chunk) Total Company Backlog (as of Sep 30, in millions) | Metric | Sep 30, 2022 | Sep 30, 2021 | Change | | :--- | :--- | :--- | :--- | | Total Backlog | $695.0M | $592.0M | +17.4% | | A&D Backlog | $408.3M | $367.2M | | | USG Backlog | $128.1M | $91.6M | | | Test Backlog | $158.6M | $133.2M | | - As of September 30, 2022, the company employed **2,922 people**, with **18%** located in 17 foreign countries. The average tenure of the workforce was **nine years**[41](index=41&type=chunk)[43](index=43&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from COVID-19, government funding, international operations, supply chain, IT, and acquisitions - **COVID-19 Risks:** The pandemic continues to create economic and operational uncertainties, with potential for contract postponements, supply chain disruptions, and facility closures[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - **Government & Aerospace Risks:** Sales to the U.S. Government accounted for **26% to 28% of revenues** over the past three years, making the company susceptible to changes in government funding and program terminations[66](index=66&type=chunk) - **International Risks:** Approximately **30% of net sales** in 2022 were to customers outside the U.S., exposing the company to currency fluctuations, tariffs, trade disputes, and geopolitical instability, such as the conflict in Ukraine[74](index=74&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - **Operational & Technology Risks:** The company faces risks from IT security threats, reliance on a small number of third-party suppliers for critical components (e.g., Doble relies on one supplier for **23% of its products**), and price inflation on raw materials like steel, copper, and titanium[85](index=85&type=chunk)[86](index=86&type=chunk)[91](index=91&type=chunk) - **Strategic Risks:** The growth strategy includes acquisitions, which carry integration risks. The company also faces challenges in retaining qualified key employees, particularly experienced engineers, due to a tight labor market[104](index=104&type=chunk)[105](index=105&type=chunk)[108](index=108&type=chunk) [Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - None[113](index=113&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) The company's properties total approximately **1.62 million square feet**, a mix of owned and leased facilities globally - The company's physical properties total approximately **1.62 million square feet**, with a mix of owned (**47%**) and leased (**53%**) facilities[114](index=114&type=chunk) - Major facilities are located in California, Texas, Oklahoma, Massachusetts, Vermont, and Maryland, supporting all three operating segments and corporate functions[115](index=115&type=chunk) [Legal Proceedings](index=29&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management expects no material adverse effect on its financial condition - Management does not expect current legal proceedings to have a material adverse effect on the company's financial condition[117](index=117&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[117](index=117&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock (ESE) trades on the NYSE, with a performance graph comparing its 5-year return to key indices - The company's common stock (ticker: **ESE**) is listed on the New York Stock Exchange[120](index=120&type=chunk) 5-Year Cumulative Total Return Comparison | Index | 9/30/17 | 9/30/18 | 9/30/19 | 9/30/20 | 9/30/21 | 9/30/22 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | ESCO Technologies Inc. | $100.00 | $114.13 | $134.04 | $136.42 | $130.83 | $125.19 | | Russell 2000 Index | $100.00 | $115.24 | $104.99 | $105.40 | $155.66 | $119.08 | | S&P Small Cap 600 Industrials | $100.00 | $121.53 | $112.63 | $105.97 | $155.41 | $134.57 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company achieved strong financial performance in FY2022, with significant sales growth, increased earnings, and robust cash flow FY 2022 Financial Highlights vs. FY 2021 (in millions) | Metric | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net Sales | $857.5M | $715.4M | | Net Earnings | $82.3M | $63.5M | | Diluted EPS (GAAP) | $3.16 | $2.42 | | Diluted EPS (As Adjusted) | $3.21 | $2.59 | | Net Cash from Operations | $135.3M | $123.1M | | Backlog | $695.0M | $592.0M | - The **19.9% increase in net sales** was composed of **$90 million in organic growth** and approximately **$52 million from recent acquisitions**[148](index=148&type=chunk) - The company's critical accounting policies involve significant management estimates and judgments, particularly in revenue recognition for long-term contracts, income tax liabilities, and the annual impairment review of goodwill and other long-lived assets[183](index=183&type=chunk)[184](index=184&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Fiscal 2022 net sales increased **19.9%** to **$857.5 million**, with all segments contributing to growth and EBIT rising **34.3%** Net Sales by Segment (FY2022 vs. FY2021, in millions) | Segment | FY 2022 Sales | FY 2021 Sales | % Change | | :--- | :--- | :--- | :--- | | A&D | $351.4M | $314.8M | 11.6% | | USG | $278.4M | $202.9M | 37.2% | | Test | $227.7M | $197.7M | 15.2% | | **Total** | **$857.5M** | **$715.4M** | **19.9%** | - New orders in 2022 were **$960.5 million**, resulting in a book-to-bill ratio of **1.12x**, and backlog grew to **$695.0 million**[146](index=146&type=chunk)[155](index=155&type=chunk) EBIT by Segment (FY2022 vs. FY2021, in millions) | Segment | FY 2022 EBIT | FY 2021 EBIT | % Change | | :--- | :--- | :--- | :--- | | A&D | $68.4M | $56.5M | 21.1% | | USG | $57.6M | $40.9M | 40.8% | | Test | $32.6M | $27.6M | 18.1% | | Corporate | ($47.3M) | ($42.1M) | (12.4)% | | **Total** | **$111.3M** | **$82.9M** | **34.3%** | - The effective tax rate increased to **22.7%** in 2022 from **21.3%** in 2021, primarily due to higher state income tax expense and reduced research credit benefits[170](index=170&type=chunk) [Capital Resources and Liquidity](index=38&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintained a strong liquidity position in 2022, with net cash from operations at **$135.3 million** and a net debt of **$55.3 million** - Net cash provided by operating activities was **$135.3 million** in 2022, an increase from **$123.1 million** in 2021[175](index=175&type=chunk) - Net cash used in investing activities was **$55.9 million**, primarily for capital expenditures (**$32.1 million**) and capitalized software (**$12.9 million**). This was a significant decrease from **$202.4 million** in 2021, which included major acquisitions[175](index=175&type=chunk)[177](index=177&type=chunk) - At September 30, 2022, the company had a net debt position of **$55.3 million** (total debt of **$153.0 million** less cash of **$97.7 million**)[146](index=146&type=chunk) - The company repurchased approximately **257,500 shares** for **$20.0 million** and paid dividends of **$0.32 per share**, totaling **$8.3 million** in 2022[180](index=180&type=chunk)[182](index=182&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are interest rate and foreign currency fluctuations, managed through derivative financial instruments - Primary market risks are identified as changes in interest rates and foreign currency exchange rates[199](index=199&type=chunk) - The company selectively uses derivative financial instruments, including forward contracts and swaps, to manage these risks[199](index=199&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and auditors concluded that the company's disclosure controls and internal control over financial reporting were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[204](index=204&type=chunk) - Management concluded that the company maintained effective internal control over financial reporting as of September 30, 2022, based on the COSO framework[206](index=206&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the fourth quarter of fiscal 2022[208](index=208&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=46&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Required information is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the 2022 Proxy Statement[213](index=213&type=chunk) [Executive Compensation](index=46&type=section&id=Item%2011.%20Executive%20Compensation) Required information is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the 2022 Proxy Statement[215](index=215&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=46&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Required information is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the 2022 Proxy Statement[216](index=216&type=chunk)[217](index=217&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=46&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Required information is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the 2022 Proxy Statement[218](index=218&type=chunk) [Principal Accountant Fees and Services](index=46&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Required information is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the 2022 Proxy Statement[219](index=219&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=47&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and various exhibits filed as part of the Form 10-K report - The Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm are included in the report[222](index=222&type=chunk) - A comprehensive list of exhibits is provided, including the company's Restated Articles of Incorporation, Bylaws, Credit Agreement, and various employee and director compensation plans[223](index=223&type=chunk) Financial Information [Reports of Independent Registered Public Accounting Firm](index=54&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Grant Thornton LLP issued unqualified opinions on FY2022 financial statements and internal controls, noting long-term contract cost estimation as a critical audit matter - Grant Thornton LLP issued an unqualified opinion on the FY2022 financial statements and the effectiveness of internal controls over financial reporting[239](index=239&type=chunk)[240](index=240&type=chunk) - A critical audit matter for the FY2022 audit was the judgment required in estimating total costs at completion for long-term, fixed-price contracts in the Aerospace & Defense segment[244](index=244&type=chunk)[246](index=246&type=chunk) - KPMG LLP served as the auditor from 1990 to 2021 and issued an unqualified opinion on the FY2021 and FY2020 financial statements[258](index=258&type=chunk)[261](index=261&type=chunk) [Consolidated Financial Statements](index=60&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present the company's financial performance and position for FY2020-2022, highlighting strong FY2022 results Consolidated Statements of Operations (in thousands) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net sales | $857,502 | $715,440 | $730,471 | | Earnings before income tax | $106,435 | $80,671 | $36,406 | | Net earnings from continuing operations | $82,320 | $63,496 | $22,896 | | Diluted EPS from continuing operations | $3.16 | $2.42 | $0.88 | Consolidated Balance Sheets (in thousands) | Metric | Sep 30, 2022 | Sep 30, 2021 | | :--- | :--- | :--- | | Total current assets | $572,622 | $466,154 | | Total Assets | $1,654,456 | $1,577,345 | | Total current liabilities | $318,129 | $274,995 | | Total Liabilities | $606,299 | $557,649 | | Total shareholders' equity | $1,048,157 | $1,019,696 | Consolidated Statements of Cash Flows (in thousands) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $135,275 | $123,139 | $82,280 | | Net cash (used) by investing activities | ($55,919) | ($202,441) | $140,953 | | Net cash (used) provided by financing activities | ($32,122) | $81,473 | ($236,220) | | Net increase (decrease) in cash | $41,492 | $3,672 | ($9,248) | [Notes to Consolidated Financial Statements](index=66&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, acquisitions, goodwill, debt, and share-based compensation, supplementing the financial statements - **Revenue Recognition:** Approximately **60% of A&D revenue** and **75% of Test revenue** is recognized over time, using cost-to-cost and milestone output methods, respectively. This requires significant judgment in estimating costs to completion[298](index=298&type=chunk)[313](index=313&type=chunk) - **Acquisitions:** The company acquired NEco in FY2022 for **$15.4 million**, and Altanova and Phenix in FY2021 for approximately **$115 million** and **$47.2 million**, respectively. These acquisitions added significant goodwill and intangible assets, primarily in the USG segment[351](index=351&type=chunk)[352](index=352&type=chunk)[353](index=353&type=chunk) - **Goodwill:** As of September 30, 2022, goodwill totaled **$492.7 million**, with the largest portion (**$348.7 million**) allocated to the USG segment. No impairment was recorded in 2022[358](index=358&type=chunk)[361](index=361&type=chunk) - **Debt:** The company has a **$500 million revolving credit facility** maturing in September 2024. As of September 30, 2022, total borrowings were **$153.0 million**, and the company was in compliance with all covenants[372](index=372&type=chunk)[375](index=375&type=chunk) - **Remaining Performance Obligations (Backlog):** At September 30, 2022, the company had **$695.0 million** in remaining performance obligations, with approximately **80%** expected to be recognized as revenue in the next twelve months[421](index=421&type=chunk)

ESCO Technologies Inc. (NYSE:ESE) Q4 2022 Earnings Conference Call November 17, 2022 5:00 PM ET Company Participants Kate Lowrey - Vice President, Investor Relations Vic Richey - Chairman and Chief Executive Officer Chris Tucker - Senior Vice President and Chief Financial Officer Bryan Sayler - President, Utility Solutions Group Conference Call Participants Jon Tanwanteng - CJS Securities John Franzreb - Sidoti Operator Good day and thank you for standing by. Welcome to the Fourth Quarter 2022 ESCO Technolo ...

ESCO Technologies Fourth Quarter FY 2022 Earnings Call Vic Richey Chairman, CEO & President Chris Tucker Sr. Vice President & CFO Bryan Sayler Utility Solutions Group President November 17, 20221 Forward Looking Statement Statements in this presentation and made during today's conference call regarding the timing and magnitude of recovery in the Company's end markets, the continuing impacts of COVID-19 on the Company's results, sales, Adjusted EBIT, Adjusted EBITDA, Adjusted EPS, cash flow, results of cost ...

Financial Performance - Sales increased by 208% from $1814 million in Q3'21 to $2191 million in Q3'22[6] - Adjusted EBIT increased by 343% from $230 million in Q3'21 to $308 million in Q3'22[6] - Adjusted EPS increased by 328% from $067 in Q3'21 to $089 in Q3'22[6] - Entered Orders increased by 251% from $2038 million in Q3'21 to $2549 million in Q3'22[6] - The company's record ending backlog was $707 million[7] Segment Performance - A&D segment Entered Orders increased by 159% from $951 million in Q3'21 to $1102 million in Q3'22[11] - USG segment Entered Orders increased by 341% from $555 million in Q3'21 to $744 million in Q3'22[14] - Test segment Entered Orders increased by 321% from $532 million in Q3'21 to $703 million in Q3'22[17] Cash Flow - Operating Cash Flow decreased from $754 million YTD Q3'21 to $417 million YTD Q3'22[8] - Capital Expenditures increased from $179 million YTD Q3'21 to $259 million YTD Q3'22[9] FY'22 Guidance - The company expects Q4 Adjusted EPS to be in the range of $112 to $118 per share, representing growth of 32% – 39% over the prior year[22] - The company narrows Adjusted EPS to be in the range of $312 to $318 per share for the full year[22]

Financial Data and Key Metrics Changes - Reported sales increased by over 20%, marking the second consecutive quarter of sales growth exceeding 20% [7] - Earnings per share (EPS) increased by over 50%, with adjusted EPS up 33% [7][17] - Orders increased by 25%, with a record backlog of $707 million [8][17] Business Segment Data and Key Metrics Changes - Aerospace and Defense (A&D) segment saw sales and margins increase, with orders growing 16% compared to the previous year [10] - Utility Group experienced nearly 17% sales growth excluding acquisitions, and over 40% growth including acquisitions [13] - Test business reported sales growth exceeding 20% for the second consecutive quarter, with order activity remaining elevated [14][24] Market Data and Key Metrics Changes - The company noted ongoing supply chain issues primarily affecting the Utility and Aerospace businesses, contributing to past due backlog [9] - The Utility Solutions Group saw order growth of 34% and sales growth of 41%, indicating strong market demand [22] Company Strategy and Development Direction - The company is focused on managing high levels of past due backlog and addressing supply chain challenges [9][39] - There is optimism regarding the recovery of certain end markets post-pandemic, with a positive outlook for ESCO [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's order strength and backlog [28] - The company is prepared to act appropriately in response to potential economic downturns, with a focus on maintaining momentum across business segments [27][28] Other Important Information - Operating cash flow is lagging due to investments in working capital, with capital expenditures increasing driven by acquisitions [19][20] - The company has resumed share repurchases, totaling just shy of $20 million year-to-date [20] Q&A Session Summary Question: Consistency in Doble's performance - Management noted that product development during COVID has positioned Doble for potential growth, with expectations for new products to drive additional revenue [31] Question: Past due backlog and cash flow visibility - Management indicated that past due backlog has stabilized, with ongoing supply chain challenges impacting delivery times [36][38] Question: Order intake and deferred spending - The majority of orders are based on current needs, with some pent-up demand observed in the Test business [42] Question: Impact of recession on order book - Management suggested that the Test business may be the first to feel the impact of a recession, while Utility and A&D businesses are expected to remain stable [44][45] Question: Organic growth breakdown - Organic growth was attributed to approximately 3% from pricing and the remainder from volume [46] Question: Inflation and pricing power - Management expects to continue driving price increases to improve the price-cost equation, despite ongoing inflation challenges [49][50] Question: Capital allocation priorities - The company remains active in seeking acquisition opportunities while also prioritizing share repurchases [51] Question: Impact of climate bill on business - Management anticipates positive impacts from the climate bill, particularly for the NRG and Doble businesses as the grid modernizes [53][54]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-10596 ESCO TECHNOLOGIES INC. (Exact name of registrant as specified in its charter) (I.R.S. Employer Identification No.) Titleofeac ...