Espey Mfg & Electronics (ESP) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 net sales fell 12.9% YoY on shipment and milestone timing in several programs; higher gross profit and interest income lifted net income 35.8% YoY.

• Backlog reached $141.1 million, and management expects FY2026 revenue to exceed FY2025 while net income approximates FY2025.

Financial highlights

• Net sales were $9.09 million, down from $10.44 million YoY; operating income rose to $2.07 million from $1.72 million.

• Gross profit increased to $3.22 million from $2.80 million; net income was $2.17 million versus $1.60 million.

• Basic and diluted EPS were $0.80 and $0.76, respectively, versus $0.63 and $0.61 YoY.

• Cash and cash equivalents were $22.22 million at September 30, 2025, up from $18.86 million at June 30; investments were $24.69 million.

Outlook and guidance

• FY2026 revenue is expected to exceed FY2025, primarily on backlog shipments; FY2026 net income is expected to approximate FY2025.

• At least $38.9 million of September 30 backlog is expected to ship in FY2026, subject to execution and other risk factors.

• New orders are expected to be lower in FY2026 than FY2025; Q1 orders were ~$10.5 million versus $7.8 million YoY.

• Outstanding opportunities totaled ~$161.5 million as of November 10, 2025; awards are uncertain and may depend on defense spending allocations.