Espey Mfg. & Electronics Corp. reports first quarter results

Core Insights - Espey Mfg. & Electronics Corp. reported net sales of $9,092,876 for the first three months of fiscal year 2026, a decrease from $10,443,218 in the same period of fiscal year 2025 [2] - The company achieved a net income of $2,169,836, or $0.80 per share, compared to $1,598,317, or $0.63 per share, in the prior year, indicating an increase in profitability despite lower sales [2] - The total backlog increased significantly to approximately $141.1 million from $94.6 million year-over-year, reflecting strong demand and order growth [3] Financial Performance - Net sales decreased by approximately 12.9% year-over-year [2] - Net income increased by approximately 35.7% year-over-year, demonstrating improved profitability [2] - New orders received in the first three months of fiscal year 2026 were roughly $10.5 million, up from $7.8 million in the same period of fiscal year 2025, indicating a positive trend in order intake [3] Management Commentary - The President and CEO highlighted solid execution by the team, emphasizing improvements in gross profit, backlog levels, and net income despite softer sales [4] - The decline in sales was attributed to a change in the timing of shipments rather than a decrease in demand [4] - The company is focused on labor efficiencies, material cost savings, and effective resource management, which contributed to the strength of gross profits [4] Business Overview - Espey's primary business involves the development, design, and production of specialized military and industrial power supplies and transformers [5]