ESCO Technologies (ESE) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales rose 27% year-over-year to $296.3 million, driven by acquisitions, organic growth, and strong segment performance.

• Adjusted EPS increased 25% to $1.60, while GAAP EPS from continuing operations was $0.96, reflecting acquisition-related costs.

• Record backlog reached $1.17 billion, up 75% from prior year, with significant contributions from Maritime and Globe orders.

• Completed Maritime acquisition and VACCO divestiture, advancing portfolio strategy and expanding Navy market presence.

• Orders surged 194% to $749 million, with a book-to-bill ratio of 2.53x.

Financial highlights

• Q3 sales rose 27% year-over-year to $296.3 million; organic sales up 11%.

• Adjusted EBIT margin improved by 180 basis points to 21.1%; Adjusted EBIT up 39% to $62.7 million.

• Adjusted EPS for Q3 was $1.60, up from $1.28; GAAP EPS from continuing ops at $0.96.

• Net cash from operating activities YTD was $88.3 million from continuing operations, up $25 million year-over-year.

• YTD sales up 15% to $742.7 million; YTD Adjusted EPS up 24% to $3.71.

Outlook and guidance

• FY 2025 revenue guidance raised to $1.075–$1.105 billion, a $20 million increase and 17–20% growth year-over-year.

• FY 2025 Adjusted EPS guidance increased to $5.75–$5.90, representing 21–24% growth over FY 2024.

• Q4 Adjusted EPS expected at $2.04–$2.19, up 14–22% year-over-year.

• Organic revenue growth (excluding Maritime) projected at 7%–9%.

• Backlog at June 30, 2025 was $1,165 million, with 66% expected to convert to revenue in the next 12 months.