ESCO Technologies(US:ESE)2025-11-20 21:16Sales Performance - Q4 2025 sales increased 29% to $353 million, with organic sales up 7.7% and Maritime acquisition contributing $58 million[5] - FY 2025 sales rose 19% to $1.1 billion, driven by an 8.8% increase in organic sales and a $95 million contribution from the Maritime acquisition[5] - Net sales for Q4 2025 reached $352.7 million, a 29% increase from $273.5 million in Q4 2024[28] - For the fiscal year 2025, net sales totaled $1.1 billion, a 19% increase from $919.1 million in fiscal year 2024[31] - The Aerospace & Defense segment reported net sales of $170.4 million in Q4 2025, a 72% increase from $99.3 million in Q4 2024[34] Earnings and EPS - Q4 2025 GAAP EPS from Continuing Operations increased 14% to $1.73, while Adjusted EPS rose 30% to $2.32[5] - FY 2025 GAAP EPS from Continuing Operations increased 13% to $4.49, with Adjusted EPS up 26% to $6.03[5] - Adjusted EPS from continuing operations for Q4 2025 was $2.32, up from $1.79 in Q4 2024, representing a 30% increase[28] - The adjusted EPS for continuing operations for FY 2025 was $6.03, up from $4.77 in FY 2024, indicating a 26.8% increase[47] Orders and Backlog - Q4 2025 entered orders increased 30% to $321 million, resulting in a book-to-bill ratio of 0.91x[5] - FY 2025 entered orders surged 57% to $1.6 billion, leading to a record year-end backlog of $1.1 billion[10] - The ending backlog for the fiscal year 2025 was $1,133,637,000, compared to $664,188,000 at the beginning of the year, showing a substantial increase in orders[45] - The company entered orders totaling $1,564,837,000 for FY 2025, a significant increase from the previous year's backlog[45] Financial Metrics - Consolidated EBIT for FY 2025 was $170.4 million, compared to $146.2 million in FY 2024, marking a 17% increase[38] - Consolidated EBITDA for FY 2025 was $245.4 million, compared to $198.4 million in FY 2024, reflecting a 24% increase[39] - Adjusted EBIT for FY 2026 is expected to increase approximately 21% to 25%, with margins rising to 20.9% to 21.5%[18] Cash Flow and Assets - Cash flows from operating activities for continuing operations were $200,396,000 in 2025, up from $121,582,000 in 2024, representing a growth of 64.6%[43] - Total current assets increased to $688,506,000 in 2025 from $668,649,000 in 2024, representing a growth of 1.28%[41] - Cash and cash equivalents rose to $101,350,000 in 2025, up from $65,963,000 in 2024, marking a 53.5% increase[43] Debt and Liabilities - The company reported a total long-term debt of $166,000,000 in 2025, compared to $102,000,000 in 2024, reflecting a 62.7% increase[41] - The total current liabilities increased to $508,148,000 in 2025 from $349,854,000 in 2024, reflecting a rise of 45.2%[41] Other Financial Information - The company completed the sale of VACCO Industries, recognizing an after-tax gain of $173 million during Q4 2025[16] - The company incurred $40.1 million in after-tax charges for FY 2025, impacting adjusted net earnings[39] - Interest expense for Q4 2025 was $5.1 million, down from $6.0 million in Q4 2024, showing a decrease of 15%[28] - Net earnings for Q4 2025 were $218.7 million, compared to $34.3 million in Q4 2024, reflecting a significant increase[28] - Net earnings for the year ended September 30, 2025, were $299,223,000, a significant increase from $101,881,000 in 2024[43] - Adjusted net earnings for FY 2025 were $156.4 million, up from $123.2 million in FY 2024, indicating a 27% growth[39] - The company reported a depreciation and amortization expense of $75,021,000 for the year ended September 30, 2025, compared to $52,155,000 in 2024, indicating a 43.8% increase[43] Future Outlook - Management expects FY 2026 sales growth of 16% to 20%, with A&D segment projected to grow 33% to 38%[18] - FY 2026 Adjusted EPS is anticipated to increase 24% to 29% to a range of $7.50 to $7.80 per share[18]