ESCO Technologies (ESE) investor relations material

Executive summary

• Achieved record results in Q4 and FY 2025, with strong growth across all key metrics and segments, driven by the Maritime acquisition and robust organic growth.

• The year was transformative, with the Maritime acquisition and VACCO divestiture sharpening focus on aerospace, Navy, and utility markets.

• Record adjusted EPS from continuing operations reached $2.32 in Q4, up 30% year-over-year.

Financial highlights

• Q4 2025 sales rose 29% year-over-year to $353 million; adjusted EBIT up 35% to $84.4 million; adjusted EPS up 30% to $2.32.

• FY 2025 sales increased 19% to $1.1 billion; adjusted EBIT up 31% to $222.4 million; adjusted EPS up 26% to $6.03.

• Q4 book-to-bill ratio was 0.91; FY 2025 book-to-bill was 1.43; ending backlog up 71% to $1.13 billion.

• Operating cash flow for FY 2025 was $200.4 million, up $78.8 million year-over-year.

• FY 2025 consolidated EBITDA was $245 million; Adjusted EBITDA was $256 million.

Outlook and guidance

• FY 2026 net sales expected to grow 16–20% to $1.27–$1.31 billion, with adjusted EBIT projected to rise 21–25% and margins of 20.9–21.5%.

• Adjusted EPS guidance for FY 2026 is $7.50–$7.80, representing 24–29% growth.

• Q1 2026 Adjusted EPS expected at $1.25–$1.35, up 32–42% year-over-year.

• Utility group expected to grow 4–6%, Doble 6–8%, and test segment 3–5%.

• Effective income tax rate for FY 2026 expected to be 23.7–24.1%.