ESCO Technologies(ESE) - 2025 Q2 - Quarterly Results

Financial Performance - Q2 2025 sales increased by 7% to $266 million compared to $249.1 million in Q2 2024[3] - Q2 2025 GAAP EPS rose by 33% to $1.20 per share, up from $0.90 per share in Q2 2024[3] - Q2 2025 adjusted EPS increased by 24% to $1.35 per share, compared to $1.09 per share in Q2 2024[3] - Net sales for the six months ended March 31, 2025, increased to $512,545 thousand from $467,443 thousand, representing an increase of 9% year-over-year[25] - Net earnings for the six months ended March 31, 2025, rose to $54,506 thousand compared to $38,388 thousand for the same period in 2024, reflecting a growth of 42%[25] - Diluted earnings per share (EPS) on a GAAP basis increased to $2.11 for the six months ended March 31, 2025, up from $1.49 in the prior year[25] - Adjusted net earnings for the six months ended March 31, 2025, were $62,727 thousand, excluding $8.2 million of after-tax charges, compared to $47,622 thousand in the prior year[31] Segment Performance - The Aerospace & Defense segment saw sales increase by 8% to $123.4 million, with EBIT rising to $30.3 million[7] - Utility Solutions Group sales increased by 4% to $90.8 million, with EBIT growing to $20.8 million[7] - RF Test & Measurement segment sales rose by 9% to $51.4 million, with entered orders increasing by 75% to $77 million[7] - Aerospace & Defense segment net sales for Q2 2025 were $123,369 thousand, an increase from $114,701 thousand in Q2 2024, representing an 8% growth[27] - The Test segment reported net sales of $51,383 thousand in Q2 2025, up from $47,119 thousand in Q2 2024, reflecting a 5% increase[27] Orders and Backlog - Q2 2025 entered orders were $290.8 million, resulting in a book-to-bill ratio of 1.10x and a record backlog of $932 million[3] - The ending backlog as of March 31, 2025, was $932,269 thousand, up from $878,969 thousand at the beginning of the fiscal year, indicating strong order growth[38] Guidance and Projections - For FY 2025, organic sales are expected to grow by 6% to 8%, with Maritime contributing sales of $90 to $100 million[9] - Adjusted EPS guidance for FY 2025 has been raised to a range of $5.65 to $5.85, reflecting 18% to 23% growth over the prior year[10] - Q3 2025 adjusted EPS guidance without Maritime is projected to be between $1.50 and $1.60, with Maritime expected to add $0.08 to $0.12[12] Cash and Assets - Total current assets decreased slightly to $660,753 thousand as of March 31, 2025, from $668,649 thousand as of September 30, 2024[34] - Cash and cash equivalents at the end of the period were $57,397 thousand, down from $65,963 thousand at the beginning of the period[36] EPS Adjustments - Q2 2024 GAAP EPS is $0.90, with adjustments leading to an adjusted EPS of $1.09, reflecting a $0.19 adjustment primarily due to acquisition-related charges[41] - The $0.19 EPS adjustment includes $6.2 million in pre-tax charges, resulting in a net impact of $4.8 million after tax benefits[42] - YTD Q2 2025 GAAP EPS is $2.11, with adjustments resulting in an adjusted EPS of $2.42, reflecting a $0.31 adjustment mainly from acquisition-related amortization[43] - The $0.31 EPS adjustment consists of $10.7 million in pre-tax charges, leading to a net impact of $8.2 million after tax benefits[44] - YTD Q2 2024 GAAP EPS is $1.49, with adjustments leading to an adjusted EPS of $1.85, reflecting a $0.36 adjustment primarily due to acquisition costs and restructuring charges[45] - The $0.36 EPS adjustment includes $12 million in pre-tax charges, resulting in a net impact of $9.2 million after tax benefits[46]