Espey Mfg & Electronics (ESP) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales rose 21.9% YoY to $10.44M; net income increased to $1.60M from $1.09M.

• Backlog reached $94.6M at September 30, 2024, up from $87.1M a year earlier; management expects FY2025 revenue above FY2024.

Financial highlights

• Net sales were $10.44M vs. $8.57M YoY; gross profit was $2.80M vs. $2.25M.

• Operating income increased to $1.72M from $1.22M; net income was $1.60M vs. $1.09M.

• Basic EPS was $0.63 vs. $0.44; diluted EPS was $0.61 vs. $0.44.

• Operating cash flow was $1.39M vs. $2.61M YoY, mainly reflecting inventory growth and payments of accounts payable and taxes.

Outlook and guidance

• FY2025 revenue is expected to exceed FY2024, while EPS is expected below FY2024 but above FY2023, reflecting higher anticipated costs in the backlog shipment mix.

• At least $33.6M of September 30 backlog is expected to ship in FY2025, subject to delivery and execution risks; this excludes orders received later in the year.

• FY2025 new orders are expected to exceed FY2024; Q1 orders were $7.8M vs. $12.1M a year earlier.

• Outstanding opportunities totaled $124M as of November 6; a large multi-year purchase from one customer was expected to be formalized before December 31, 2024.