[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]

Core Points - Espey Mfg. & Electronics Corp. has been awarded $3.4 million for capital improvements to enhance domestic industrial capabilities [2] - This funding is part of the U.S. Navy's initiative to strengthen the domestic U.S. Surface Combatant Industrial Base [2] - The investment will allow Espey to expand its design, manufacturing, testing, and delivery capabilities for electrical power products [2] - This funding is in addition to a previous $7.4 million received in February 2023 for a new manufacturing facility and power infrastructure enhancements [3] - The ongoing investments reflect the U.S. Government's commitment to bolstering critical domestic manufacturing capabilities [3] - The projects will be executed at Espey's facility in Saratoga Springs, NY, with completion expected in 2026 [3] - Espey's primary business focuses on the development, design, and production of specialized military and industrial power supplies, power systems, and transformers [4]

SARATOGA SPRINGS, N.Y., March 10, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of Espey Mfg. & Electronics Corp. (NYSE:ESP) has declared a regular quarterly dividend of $0.25 per share. The dividend will be payable on March 28, 2025 to all shareholders of record on March 21, 2025. 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, cont ...

SARATOGA SPRINGS, N.Y., March 10, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of Espey Mfg. & Electronics Corp. (NYSE AMERICAN: ESP) has declared a regular quarterly dividend of $0.25 per share. The dividend will be payable on March 28, 2025 to all shareholders of record on March 21, 2025. 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 informat ...

SARATOGA SPRINGS, N.Y., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP), a leading designer and manufacturer of innovative industrial and defense electronic solutions, announces the retirement of its Chief Financial Officer and Treasurer, Katrina Sparano, and the appointment of Kaitlyn O’Neil, who has been employed by the Company since January 6, 2025, as the company’s new Principal Financial Officer and Treasurer, both effective February 15, 2025. David O’Neil, Preside ...

SARATOGA SPRINGS, N.Y., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE:ESP), a leading designer and manufacturer of innovative industrial and defense electronic solutions, announces the retirement of its Chief Financial Officer and Treasurer, Katrina Sparano, and the appointment of Kaitlyn O'Neil, who has been employed by the Company since January 6, 2025, as the company's new Principal Financial Officer and Treasurer, both effective February 15, 2025. David O'Neil, President and Chi ...

Shares of Espey Mfg. & Electronics Corp. (ESP) have declined 1% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 0.3% decline over the same time frame. Over the past month, the stock has declined 6.2% against the S&P 500’s 1.5% growth.See the Zacks Earnings Calendar to stay ahead of market-making news.Espey reported a net income of 71 cents per share for the second quarter of fiscal 2025, down from 72 cents per share in the year-ago period. Th ...