Core Insights - ESCO Technologies Inc. reported a strong performance in Q4 2025 and FY 2025, with significant increases in sales, orders, and earnings per share, driven by strong market demand and strategic acquisitions [1][4][6] Financial Performance - Q4 2025 sales increased by 29% to $353 million, with entered orders rising by 30% to $321 million [1][7] - FY 2025 sales grew by 19% to $1.1 billion, with entered orders increasing by 57% to $1.6 billion [1][7] - Q4 2025 GAAP EPS from continuing operations rose by 14% to $1.73, while adjusted EPS increased by 30% to $2.32 [1][7] - For FY 2025, GAAP EPS from continuing operations increased by 13% to $4.49, and adjusted EPS rose by 26% to $6.03 [1][7] Segment Performance - Aerospace & Defense (A&D) segment saw Q4 2025 sales increase by 71.6% to $170 million, with organic sales up by 13.1% and Maritime contributing $58 million [6][30] - For FY 2025, A&D sales increased by 40.4% to $478 million, with organic sales up by 12.5% [6][34] - Utility Solutions Group (USG) reported Q4 2025 sales of $110 million, a slight increase of 1.6%, while FY 2025 sales rose by 3% to $380 million [10][34] - Test segment sales in Q4 2025 increased by 9.6% to $72 million, with FY 2025 sales up by 13.2% to $237 million [10][34] Operational Highlights - The company completed the divestiture of VACCO Industries, recognizing an after-tax gain of $173 million [12] - Management expects double-digit growth in sales, Adjusted EBIT, Adjusted EBITDA, and Adjusted EPS for FY 2026 [13][18] - The next quarterly cash dividend of $0.08 per share is scheduled for January 16, 2026 [13] Business Outlook - For FY 2026, sales are expected to grow by 16% to 20%, with A&D projected to grow by 33% to 38% [18] - Adjusted EBIT is anticipated to increase by approximately 21% to 25%, with margins improving to 20.9% to 21.5% [18] - Adjusted EPS for FY 2026 is expected to rise by 24% to 29%, reaching a range of $7.50 to $7.80 per share [18]

Core Insights - ESCO Technologies Inc. reported a 27% increase in Q3 sales to $296 million, while GAAP EPS from continuing operations decreased by 13% to $0.96. Adjusted EPS from continuing operations increased by 25% to $1.60 [1][4][5] - The company raised its FY 2025 adjusted EPS guidance to a range of $5.75 to $5.90, reflecting a growth of 21% to 24% [1][10][11] Financial Performance - Q3 2025 sales increased by $62.7 million (27%) compared to Q3 2024, with organic sales (excluding Maritime sales) increasing by $25.6 million (11%) [5][6] - Entered orders surged by 194% to $749 million, resulting in a book-to-bill ratio of 2.53x and a record backlog of $1.17 billion [1][5][7] - Net cash provided by operating activities from continuing operations was $88 million YTD, an increase of $25 million compared to the prior year [5] Segment Performance - Aerospace & Defense (A&D) segment sales increased by $49.1 million (56%) to $136.3 million, driven by a 200% increase in Navy sales [6][29] - Utility Solutions Group (USG) sales increased by $2.1 million (2%) to $92.4 million, with Doble's sales up by 1% and NRG sales up by 8% [12][29] - Test & Measurement segment sales increased by $11.6 million (21%) to $67.7 million, with EBIT and adjusted EBIT increasing to $10.7 million [12][29] Business Outlook - The company expects FY 2025 revenue from continuing operations to be in the range of $1.075 to $1.105 billion, reflecting a 17% to 20% increase over the prior year [10][11] - Q4 adjusted EPS from continuing operations is expected to be in the range of $2.04 to $2.19, representing a growth of 14% to 22% over Q4 2024 [13] Dividend Information - The next quarterly cash dividend of $0.08 per share is scheduled for payment on October 16, 2025, to stockholders of record on October 2, 2025 [14]