Espey Mfg. & Electronics Corp. reports second quarter results

Core Insights - Espey Mfg. & Electronics Corp. reported a decline in sales for the second quarter of fiscal year 2026, with sales of $12,136,903 compared to $13,608,740 in the same quarter of fiscal year 2025 [1] - Despite the sales decline, net income for the second quarter increased to $2,805,109, or $0.99 per diluted share, up from $1,908,499, or $0.71 per diluted share, in the prior year [1] - For the first six months of fiscal year 2026, net sales were $21,229,779, down from $24,051,958 in the same period of fiscal year 2025, while net income rose to $4,974,945, or $1.75 per diluted share, compared to $3,506,816, or $1.32 per diluted share, in the previous year [2] Sales and Income Analysis - The second quarter sales of $12,136,903 represent a year-over-year decrease of approximately 10.8% [1] - The net income for the second quarter increased by approximately 47% compared to the same quarter last year [1] - The first six months of fiscal year 2026 saw a decrease in net sales of approximately 11.5% compared to the same period in fiscal year 2025, while net income increased by approximately 42% [2] Backlog and Orders - The company's backlog was reported at $134.7 million as of December 31, 2025, an increase from approximately $120.1 million at the same time last year [3] - New orders for the first six months of fiscal year 2026 totaled $16.3 million, significantly lower than the $46.9 million in new orders for the same period in fiscal year 2025, which included $29.5 million in multi-year contract awards [3] Management Commentary - The President and CEO highlighted solid margins and meaningful progress across key programs, despite experiencing top-line impacts from external factors [3] - The company is focused on executing milestones in the second half of the year and aims to deliver better results than the prior year [3] - The management expressed gratitude towards employees for their dedication and collaboration, which positions the company for sustained momentum [3] Company Overview - Espey Mfg. & Electronics Corp. specializes in the development, design, and production of specialized military and industrial power supplies and transformers [4]