Espey Mfg Electronics (ESP) Q4 2024 Earnings Report

Espey Mfg Electronics Corp (ESP) delivered a robust QQ4 2024 performance with revenue of $11.61 million, marking YoY growth of 39.17% and QoQ growth of 40.66%. The quarter produced a solid gross profit of $3.20 million and an EBITDA of $2.24 million, translating to an EBITDA margin of approximately 19.3% and an operating margin of about 18.4%. Net income reached $1.89 million, equating to a net margin of 16.3% and basic/fully diluted EPS of $0.75/$0.73 respectively. Notably, ESP remains debt-free with a net cash position of roughly $4.35 million and a substantial liquidity cushion (current ratio 3.49; quick ratio 2.23). Cash flow from operations was $3.24 million, while free cash flow was $2.58 million, underscoring the company's ability to self-fund growth and potentially pursue selective capital allocation opportunities without external financing.

The balance sheet showcases a conservative capital structure: cash and short-term investments total about $23.23 million, total current assets of $53.24 million against current liabilities of $15.27 million, and total stockholders’ equity of roughly $41.27 million. With no long-term debt reported, ESP’s financial flexibility supports ongoing investment in capabilities and service offerings amid a favorable defense and industrial electronics backdrop. However, the company exhibits elevated inventory days (~206 days) and a lengthy receivables cycle (DSO ~51 days), implying working capital intensity that warrants ongoing monitoring as volume scales.

Management commentary (where available) and the earnings call transcript are not provided in the data set; thus, the qualitative read from management sentiment is limited. In the absence of explicit forward guidance, the analysis highlights the strategic relevance of ESP’s niche in power electronics for military and industrial applications and the potential to translate growth into higher operating leverage, enhanced services, and margin resilience over time.