Espey Mfg & Electronics (ESP) Q2 2026 earnings summary

Executive summary

• H1 FY2026 net sales were $21.23M vs. $24.05M YoY; net income rose to $4.97M from $3.51M as gross profit and interest income increased.

• Q2 net income reached $2.81M vs. $1.91M YoY despite lower sales, supported by stronger gross profit and interest income.

Financial highlights

• Q2 net sales were $12.14M vs. $13.61M; H1 sales were $21.23M vs. $24.05M.

• Q2 gross profit was $4.21M vs. $3.16M; H1 gross profit was $7.43M vs. $5.96M.

• Q2 operating income was $3.07M vs. $2.02M; H1 operating income was $5.14M vs. $3.74M.

• Q2 net income was $2.81M vs. $1.91M; H1 net income was $4.97M vs. $3.51M.

• Q2 diluted EPS was $0.99 vs. $0.71; H1 diluted EPS was $1.75 vs. $1.32.

Outlook and guidance

• FY2026 revenue is expected to exceed FY2025, with stable performance anticipated for the remainder of FY2026; FY2026 net income is expected to approximate FY2025.

• At least $26.8M of December 2025 backlog is anticipated to ship by June 30, 2026, subject to execution risks and excluding later orders.

• FY2026 new orders are expected to be lower than FY2025; H1 orders were $16.3M vs. $46.9M YoY.

• As of February 5, 2026, active opportunities totaled $167.1M, ~8% higher than December 31, 2024; awards are not assured.