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ESCO Reports Second Quarter Fiscal 2025 Results
ESEESCO Technologies(ESE) GlobeNewswire·2025-05-07 20:15

Core Insights - ESCO Technologies Inc. reported a 7% increase in Q2 sales to 266million,withGAAPEPSrising33266 million, with GAAP EPS rising 33% to 1.20 and adjusted EPS increasing 24% to 1.35[1][6][29]−Thecompanyexperienceda221.35 [1][6][29] - The company experienced a 22% increase in orders, resulting in a book-to-bill ratio of 1.10x and a record backlog of 932 million [1][6][44] - The acquisition of SM&P, now known as ESCO Maritime Solutions, is expected to enhance the company's naval product offerings [4][10] Financial Performance - Q2 2025 sales increased by 16.4million(716.4 million (7%) compared to Q2 2024, with net earnings rising to 31.0 million from 23.2million[6][25]−AdjustedEBITDAmarginexpandedby250basispoints,reflectingstrongrevenuegrowthacrossallsegments[3][6]−Year−to−datenetcashprovidedbyoperatingactivitieswas23.2 million [6][25] - Adjusted EBITDA margin expanded by 250 basis points, reflecting strong revenue growth across all segments [3][6] - Year-to-date net cash provided by operating activities was 58 million, an increase of 39 million compared to the prior year [6] Segment Performance - Aerospace & Defense segment sales increased by 8.7 million (8%) to 123.4million,drivenbyNavyandaerospacesales[7][29]−UtilitySolutionsGroup(USG)salesroseby123.4 million, driven by Navy and aerospace sales [7][29] - Utility Solutions Group (USG) sales rose by 3.5 million (4%) to 90.8million,withastrongperformanceinofflinetestingproducts[8][29]−Testsegmentsalesincreasedby90.8 million, with a strong performance in offline testing products [8][29] - Test segment sales increased by 4.3 million (9%) to 51.4million,primarilyduetohigherTestandMeasurementorders[15][29]BusinessOutlook−Thecompanyexpectsorganicsalesgrowthof651.4 million, primarily due to higher Test and Measurement orders [15][29] Business Outlook - The company expects organic sales growth of 6% to 8% for FY 2025, with Maritime contributing sales of 90 to 100million[11][12]−AdjustedEPSguidanceforFY2025hasbeenraisedtoarangeof100 million [11][12] - Adjusted EPS guidance for FY 2025 has been raised to a range of 5.65 to 5.85,reflectingcontinuedmarketstrength[12][13]−Q32025adjustedEPSguidancewithoutMaritimeisprojectedtobebetween5.85, reflecting continued market strength [12][13] - Q3 2025 adjusted EPS guidance without Maritime is projected to be between 1.50 and 1.60[14]DividendInformation−Thenextquarterlycashdividendof1.60 [14] Dividend Information - The next quarterly cash dividend of 0.08 per share is scheduled for payment on July 17, 2025 [16]