Core Insights - WEBUY GLOBAL LTD. has launched an innovative AI Travel Assistant, a wearable device designed to enhance the travel experience for global travelers [1][3]. Group 1: Product Features - The AI Travel Assistant weighs 30 grams and is powered by DeepSeek's V3 AI model, providing real-time multilingual support in 21 languages [3]. - It features a single-button interface allowing users to communicate in their native language and receive instant responses in their preferred language [3]. - The device is integrated with Webuy's SkyBear ERP system, offering personalized itinerary updates, destination insights, and real-time alerts [4]. Group 2: Strategic Collaborations - Webuy is collaborating with China Tourism Group to improve global travel standards and create an AI-driven service ecosystem for travelers and service providers [5]. Group 3: Technological Infrastructure - The AI Travel Assistant utilizes the ESP32-C SoC chip from Espressif Systems, ensuring robust global performance with 5G and WiFi connectivity [6]. Group 4: Future Developments - Webuy plans to enhance the AI Travel Assistant with built-in camera functionality and IoT sensors for richer contextual interactions throughout the travel journey [7]. Group 5: Company Overview - WEBUY GLOBAL LTD. focuses on transforming community e-commerce and travel in Southeast Asia, utilizing predictive AI and personalized recommendations to improve user experiences [8].

Core Insights - U Power Limited has signed its first agreement with an Electric Service Provider (ESP) in Macau to deploy UOTTA battery-swapping stations and sell compatible electric vehicles [1][4] - The ESP will handle the installation and maintenance of the battery-swapping stations and cabinets, while U Power will collaborate with the ESP to facilitate sales and after-sale maintenance of battery-swapping vehicles [2][3] - Over the next three years, the ESP partner anticipates purchasing approximately 600 four-wheeled and 5,000 two-wheeled battery-swapping vehicles [3] Company Overview - U Power is a provider of electric vehicle (EV) battery-swapping solutions, utilizing its proprietary UOTTA technology [5] - The company manufactures and sells various models of UOTTA battery-swapping stations and offers battery-swapping services for vehicle drivers [5][6] - U Power aims to become a comprehensive solutions provider for smart energy grids, investing in next-generation technologies to create intelligent ecosystems [6]

Company Overview - Espey Mfg. & Electronics (ESP) specializes in rugged power electronics primarily used in defense systems, focusing on reliability and long-term performance [1] Investment Focus - Stork Research, a private investor with four years of experience, targets overlooked and undercovered markets, particularly in micro-cap and small-cap equities that demonstrate strong growth at reasonable valuations (GARP) [1] - The research emphasizes deep, fundamentals-based analysis in sectors such as industrials and technology, which are historically rich in multi-bagger potential [1] Market Strategy - Stork Research typically avoids highly cyclical industries but occasionally seeks recovery-phase opportunities or contrarian plays in severely overvalued names where market sentiment diverges from long-term value [1] - The geographic focus includes the U.S., Canada, and select European markets, specifically Poland and Germany [1] Background and Expertise - The founder of Stork Research holds a BSc in Computer Science and an MSc in International Economics, with leadership experience in multiple investment clubs [1] - The aim is to enhance investment thesis development while helping readers identify inefficiencies and discover unique, high-conviction investment ideas [1]

Core Points - Espey Mfg. & Electronics Corp. has declared a quarterly dividend of $0.25 per share [1] - The dividend will be payable on June 23, 2025, to shareholders of record on June 16, 2025 [1] - The company specializes in the development, design, and production of military and industrial power supplies and transformers [1]

Core Insights - Espey Mfg. & Electronics Corp. (ESP) shares have increased by 15.9% since the earnings report for the quarter ended March 31, 2025, outperforming the S&P 500's 4% growth during the same period [1] - The stock has gained 19.8% over the past month, compared to the S&P 500's 11.3% growth, indicating strong investor confidence linked to the company's performance and expanding order pipeline [1] Financial Performance - For Q3 of fiscal 2025, Espey reported net income of $0.63 per share, up from $0.40 per share in the same quarter last year [2] - Net sales reached $10.3 million, a 24.8% increase from $8.3 million in the prior-year quarter, with net income rising 65.2% to $1.7 million from $1 million [2] - For the first nine months of fiscal 2025, net sales were $34.4 million, a 26.7% increase from $27.1 million in the same period last year, with net income rising 32.9% to $5.2 million or $1.95 per share from $3.9 million or $1.56 per share [3] Order Pipeline and Backlog - Espey's backlog expanded significantly to $138 million as of March 31, 2025, a 63.9% increase from $84.2 million a year earlier, driven by new orders totaling $75.1 million in the first nine months of fiscal 2025, more than double the $27.8 million in new orders from the previous year [4][5] - The growth in orders was supported by a $19.8 million contract, indicating sustained demand in the defense and industrial power supply markets [5] Management Commentary - President and CEO David O'Neil attributed the year-over-year growth in sales and earnings to strategic margin improvement initiatives and operational execution, highlighting the company's ability to enhance margins on key programs [6] - The growth in backlog is seen as a result of a record year for new orders, reflecting management's optimistic outlook [6] Earnings Drivers - Espey's earnings surge was primarily driven by increased production volume and improved pricing or mix within its power supply and transformer programs [7] - The improvement in earnings reflects the scale benefits of higher sales and effective cost discipline, with indications of enhanced profitability in high-contribution segments [7]

Core Insights - Espey Mfg. & Electronics Corp. reported significant growth in net sales and net income for both the third quarter and the first nine months of fiscal year 2025 compared to the same periods in the previous year [1][2]. Financial Performance - For the third quarter of fiscal year 2025, net sales reached $10,302,719, an increase of approximately 24.8% from $8,254,653 in the same quarter last year. Net income for the quarter was $1,704,487, or $0.63 per diluted share, compared to $1,031,930, or $0.40 per diluted share, in the prior year [1]. - For the first nine months of fiscal year 2025, net sales totaled $34,354,677, up 26.9% from $27,125,408 in the same period of fiscal year 2024. Net income for this period was $5,211,303, or $1.95 per diluted share, compared to $3,921,844, or $1.56 per diluted share, in the previous year [2]. Backlog and Orders - The company's backlog as of March 31, 2025, was $138 million, significantly higher than the $84.2 million backlog reported at the same time last year. New orders for the first nine months of fiscal year 2025 amounted to $75.1 million, a substantial increase from approximately $27.8 million in the same period of fiscal year 2024 [3]. Business Focus - Espey's primary business involves the development, design, and production of specialized military and industrial power supplies and transformers, indicating a strong focus on niche markets within the defense and industrial sectors [4].

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201%20Financial%20Statements) Espey Mfg. & Electronics Corp.'s unaudited consolidated financial statements for periods ended March 31, 2025, reflect significant growth in revenue, net income, and assets [Balance Sheets](index=3&type=section&id=Balance%20Sheets) As of March 31, 2025, total assets grew to **$72.8 million** from **$56.5 million**, driven by increased cash and contract liabilities, boosting stockholders' equity Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $67,359 | $53,237 | +$14,122 | | Cash and cash equivalents | $13,859 | $4,352 | +$9,507 | | Investment securities | $24,635 | $18,879 | +$5,756 | | **Total Assets** | **$72,839** | **$56,543** | **+$16,296** | | **Total Current Liabilities** | $26,515 | $15,269 | +$11,246 | | Contract liabilities | $21,018 | $9,043 | +$11,975 | | **Total Stockholders' Equity** | **$46,325** | **$41,274** | **+$5,051** | [Statements of Comprehensive Income](index=4&type=section&id=Statements%20of%20Comprehensive%20Income) Net sales increased **26.7%** to **$34.4 million** for the nine months ended March 31, 2025, with net income growing **32.9%** and strong third-quarter performance Financial Performance (Unaudited) | Metric | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $34,354,677 | $27,125,408 | +26.7% | | Gross Profit | $8,912,978 | $7,452,143 | +19.6% | | Operating Income | $5,494,772 | $4,407,552 | +24.7% | | Net Income | $5,211,303 | $3,921,844 | +32.9% | | Diluted EPS | $1.95 | $1.56 | +25.0% | | **Metric** | **Three Months Ended Mar 31, 2025** | **Three Months Ended Mar 31, 2024** | **YoY Change** | | Net Sales | $10,302,719 | $8,254,653 | +24.8% | | Net Income | $1,704,487 | $1,031,930 | +65.2% | | Diluted EPS | $0.63 | $0.40 | +57.5% | [Statements of Changes in Stockholders' Equity](index=5&type=section&id=Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Total stockholders' equity increased by **$5.0 million** for the nine months ended March 31, 2025, driven by net income and stock option exercises, partially offset by dividends - Key drivers for the increase in stockholders' equity over the nine-month period were net income of **$5.2 million** and proceeds from stock option exercises of **$1.5 million**, offset by dividend payments of **$1.9 million**[14](index=14&type=chunk) [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) Net cash from operating activities surged to **$18.2 million** for the nine months ended March 31, 2025, primarily due to increased contract liabilities from customer advances Cash Flow Summary (Nine Months Ended March 31) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $18,219,771 | $7,350,662 | | Net cash used in investing activities | ($8,265,308) | ($3,869,358) | | Net cash used in financing activities | ($446,971) | ($673,795) | | **Increase in cash and cash equivalents** | **$9,507,492** | **$2,807,509** | [Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Financial%20Statements) The notes detail a **$138 million** order backlog, **$10.8 million** in U.S. Navy funding, and a **$561,852** liability from a pension plan withdrawal - The company's order backlog was approximately **$138 million** at March 31, 2025, with **7.0%** estimated for fiscal 2025, **35.9%** for 2026, **12.3%** for 2027, and **44.8%** thereafter[50](index=50&type=chunk) - The company was awarded two separate funding grants from the U.S. Navy for facility and capital equipment upgrades, one for **$7.4 million** in fiscal 2023 and another for **$3.4 million** in December 2024[42](index=42&type=chunk)[44](index=44&type=chunk) - In June 2024, the company initiated a withdrawal from the IBEW Local 1799 Pension Fund, resulting in a recorded termination withdrawal obligation of **$561,852** as of March 31, 2025[43](index=43&type=chunk) - Revenue is primarily recognized over time using the output method, based on milestones achieved or units delivered, with **$27.1 million** recognized based on units and **$7.3 million** based on milestones for the nine months ended March 31, 2025[46](index=46&type=chunk)[47](index=47&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant financial growth, attributing a **26.7%** increase in nine-month sales to higher deliveries and a surging backlog, expecting higher full-year revenues and EPS for fiscal 2025 [Overview](index=17&type=section&id=Overview) Espey's backlog grew to **$138 million** as of March 31, 2025, driven by **$75.1 million** in new orders, including major U.S. Navy awards, with high customer concentration - The company's total backlog increased to **$138 million** at March 31, 2025, from **$84.2 million** at March 31, 2024, including approximately **$97.7 million** from three significant customers[65](index=65&type=chunk) - New orders received in the first nine months of fiscal 2025 totaled **$75.1 million**, a significant increase from **$27.8 million** in the prior-year period, including two major awards for the U.S. Navy's Columbia class submarines valued at **$29.5 million** and **$19.8 million**[71](index=71&type=chunk) - A high degree of customer concentration exists, with sales to five significant customers representing **82%** of total sales for the three months ended March 31, 2025[72](index=72&type=chunk) [Critical Accounting Policies and Estimates](index=19&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies revenue recognition and cost estimation on contracts as critical accounting policies, with revenue recognized by output method and cost changes reflected in current earnings - The company's most critical accounting policies are revenue recognition and cost estimation on contracts[74](index=74&type=chunk) - Revenue is recognized using the output method based on appraisal of results achieved, milestones reached, or units delivered[78](index=78&type=chunk) - The estimation of total cost at completion for a contract is subject to numerous variables, and any changes in estimates are reflected in current period earnings[81](index=81&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) For the nine months ended March 31, 2025, net sales rose **26.7%**, while gross margin slightly decreased, but net income increased to **$5.2 million** Sales and Gross Profit Analysis | Period | Net Sales | YoY Change | Gross Profit % | Prior Year GP % | | :--- | :--- | :--- | :--- | :--- | | **Q3 2025** | $10,302,719 | +24.8% | 28.6% | 25.0% | | **9M 2025** | $34,354,677 | +26.7% | 25.9% | 27.5% | - The increase in SG&A expenses for the nine months ended March 31, 2025 was mainly due to higher employee compensation costs, outside selling costs, outbound freight, and employee recruitment fees[90](index=90&type=chunk) - The increase in net income for both the three and nine-month periods was primarily due to higher gross profits and interest income, partially offset by increased SG&A expenses and income tax provisions[93](index=93&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$40.8 million** in working capital and **$18.2 million** in operating cash flow, supported by U.S. Navy funding for capital expenditures - The company has a **$3,000,000** line of credit available but did not borrow any funds during the last two fiscal years and does not anticipate needing to[94](index=94&type=chunk) - Net cash provided by operating activities increased to **$18.2 million** for the nine months ended March 31, 2025, compared to **$7.4 million** in the prior year, primarily due to an increase in contract liabilities from customer cash advances[96](index=96&type=chunk) - During the nine months ended March 31, 2025, the company expended **$2,509,088** for plant improvements and new equipment, of which **$2,346,233** was eligible for reimbursement under Navy funding awards[97](index=97&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Espey Mfg. & Electronics Corp., as a smaller reporting company, is exempt from providing market risk disclosures - The company is not required to provide information for this item as it qualifies as a smaller reporting company[99](index=99&type=chunk) [Controls and Procedures](index=23&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[100](index=100&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[101](index=101&type=chunk) [PART II - OTHER INFORMATION](index=24&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=24&type=section&id=Item%201%20Legal%20Proceedings) The company reports no pending legal matters expected to materially affect its business, financial condition, results of operations, or cash flows - There are no pending legal matters which are expected to have a material adverse effect on the company[103](index=103&type=chunk) [Other Information Items (Items 2, 3, 4, 5, 6)](index=24&type=section&id=Other%20Information%20Items) This section covers standard disclosures, including no unregistered equity sales, no defaults, and an existing stock repurchase authorization, with officer certifications as exhibits - The company has an existing authorization to repurchase up to **$783,460** of its common stock, but no shares were repurchased during the quarter ended March 31, 2025[104](index=104&type=chunk) - The company reports no defaults upon senior securities, no mine safety disclosures, and no other information under Item 5[104](index=104&type=chunk) - Exhibits filed with the report include certifications from the CEO and Principal Financial Officer pursuant to Sarbanes-Oxley Act Sections 302 and 906[105](index=105&type=chunk) [Signatures](index=25&type=section&id=SIGNATURES) The quarterly report was signed by David O'Neil, President and CEO, and Kaitlyn O'Neil, Principal Financial Officer, on May 12, 2025 - The report was signed by David O'Neil (President and CEO) and Kaitlyn O'Neil (Principal Financial Officer) on May 12, 2025[109](index=109&type=chunk)

Core Points - Espey Mfg. & Electronics Corp. has been awarded a new contract valued at $19.8 million to provide electrical power transformers for the U.S. Navy's Virginia and Columbia class submarines [2] - The contract was awarded by General Dynamics Electric Boat and the U.S. Navy, continuing Espey's role as a supplier for components previously designed for these classes of submarines [2] - The Columbia class submarine is a priority for the Department of Defense, intended to replace the Ohio class ballistic missile submarines [2] Company Overview - Espey's primary business involves the development, design, and production of specialized military and industrial power supplies and transformers [4] - The company emphasizes its commitment to supporting U.S. military programs, aligning its strategy with the needs of the Department of Defense [3]

Core Viewpoint - Espey Mfg. & Electronics Corp. has secured a new contract valued at $19.8 million to supply electrical power transformers for the U.S. Navy's Virginia and Columbia class submarines, highlighting the company's ongoing relationship with General Dynamics Electric Boat and the Department of Defense [2][3]. Group 1: Contract Details - The new contract is valued at $19.8 million when fully funded [2]. - The contract involves manufacturing components for the Virginia and Columbia class submarines, which are critical to the U.S. Navy [2]. - The Columbia class submarine is a priority for the Department of Defense, intended to replace the Ohio class ballistic missile submarines [2]. Group 2: Company Strategy and Leadership - The company emphasizes its commitment to supporting U.S. military programs, aligning its strategy with national defense needs [3]. - Mr. David O'Neil, President and CEO, acknowledged the hard work of employees in securing this contract and maintaining strong customer relationships [3]. Group 3: Company Overview - Espey Mfg. & Electronics Corp. specializes in the development, design, and production of military and industrial power supplies and transformers [4].

Core Insights - Espey Mfg. & Electronics Corp. has been awarded $3.4 million for capital improvements to enhance its domestic industrial capabilities as part of a U.S. Navy initiative [2] - This funding follows a previous award of $7.4 million received in February 2023 for the construction of a new manufacturing facility and upgrades to facility power infrastructure [3] - The investments reflect the U.S. Government's commitment to strengthening critical domestic manufacturing capabilities, with project completion expected in 2026 [3] Company Overview - Espey specializes in the development, design, and production of military and industrial power supplies, power systems, and transformers [4]