ESCO Technologies(ESE)2024-11-29 18:44Revenue Segments - The Aerospace & Defense (A&D) segment accounted for approximately 44% of total revenue in 2024, up from 41% in both 2023 and 2022[20]. - The Utility Solutions Group (USG) segment represented about 36% of total revenue in 2024, consistent with 2023, and an increase from 32% in 2022[23]. - The Test segment contributed approximately 20% of total revenue in 2024, down from 23% in 2023 and 27% in 2022[25]. - International sales accounted for about 28% of total revenue in 2024, a slight decrease from 30% in both 2023 and 2022[29]. - Direct and indirect sales to the U.S. Government accounted for approximately 27%, 23%, and 25% of total revenue in 2024, 2023, and 2022, respectively[30]. Acquisitions and Strategic Initiatives - The company completed the acquisition of MPE Limited in November 2023, enhancing its product offerings for military and critical infrastructure applications[17]. - The company also acquired CMT Materials, LLC in February 2023, which specializes in syntactic materials for various applications[17]. - A Sale and Purchase Agreement for the acquisition of Ultra Electronics' Signature Management & Power business is set for approximately 550 million, with closing expected in the second quarter of fiscal 2025[18]. - The company is conducting a strategic review of its Space business at VACCO, which may lead to a sale or other alternatives to optimize its portfolio[18]. - The company has consolidated Westland Technologies and Globe Composites into a single business to streamline operations and reduce costs[16]. - The company has secured adequate financing for the SM&P Acquisition, with the waiting period under the Hart-Scott-Rodino Act expired in August 2024[18]. Growth and Backlog - Total Company backlog of firm orders at September 30, 2024, was 879.0 million, representing an increase of 772.4 million at September 30, 2023[40]. - Approximately 70% of the total backlog at September 30, 2024, is expected to be completed in the fiscal year ending September 30, 2025[40]. - The A&D segment's backlog increased from 600.4 million in 2024[40]. Workforce and Engagement - As of September 30, 2024, the company employed 3,281 persons, including 3,242 full-time employees, with 20% located in 19 foreign countries[50]. - The company achieved an overall engagement favorability of 81% in its first global engagement survey, exceeding comparable benchmarks[52]. - The company has a diverse workforce, with over half of employees coming from demographically diverse backgrounds[53]. - As of September 30, 2024, the workforce composition is 69% male and 24% female, with 7% classified as unknown[60]. - Among the workforce, 41% are identified as minorities, with 37% being White[59]. - The generational breakdown shows 40% Millennials, 27% Gen X, 20% Boomers, and 13% Gen Z[59]. Intellectual Property and Risk Management - The company emphasizes developing intellectual property and protecting its rights, with significant value attributed to its patents across all segments[39]. - The company has sought patent protection for significant inventions in its Test segment, including novel designs for window and door assemblies and improved acoustic techniques[38]. - The company is subject to supply chain risks, particularly for aerospace-grade titanium and gaseous helium, which may be in short supply[42]. - The company has a structured approach to risk factors, which is referenced in its reports[63]. Leadership - The current President and CEO, Bryan H. Sayler, has been in position since January 1, 2023, and previously led the Utility Solutions Group[67]. - Christopher L. Tucker has been the CFO since April 2021, focusing on enhancing finance and IT capabilities[67]. - David M. Schatz has served as Senior Vice President and General Counsel since April 2021, with extensive knowledge of the company's operations and M&A[67]. Transparency and Reporting - The company provides free access to its financial reports and other documents on its website[65].