ESCO Technologies Inc
ESE
$195.59 -3.31%
Exchange: NYSE | Sector: Technology | Industry: Hardware Equipment Parts
Q1 2025
Published: Feb 10, 2025

Earnings Highlights

  • Revenue of $247.03M up 13.2% year-over-year
  • EPS of $0.91 increased by 54.2% from previous year
  • Gross margin of 39.8%
  • Net income of 23.47M
  • ""2025 is off to a great start for ESCO, with really good performance in all three business segments, which has enabled us to outperform in the quarter and raise our guidance for the full year."" - Bryan Sayler
ESE
Company ESE

Executive Summary

ESCO Technologies delivered a robust start to 2025, with across-the-board strength in all three segments (A&D, Utility Solutions Group, and Test). Revenue rose 13% year-over-year to $247.0 million, backlogged orders reached a fresh high of $907 million, and book-to-bill remained solid at 1.11x, underscoring durable demand. Management raised the full-year earnings outlook, increasing the low/high end of adjusted EPS guidance by $0.25 to a new range of $5.55–$5.75, while reaffirming sales growth guidance of 6–8% for 2025. The quarter featured meaningful margin expansion (adjusted EBIT margins up 250 bps) and a notable shift toward cash generation (operating cash flow of $34.2 million and free cash flow of $28.97 million), culminating in a leverage ratio (debt to EBITDA) of 0.4x and a strong balance sheet. Notable strategic developments include ongoing SMNP acquisition closing discussions and VACCO strategic review, with management signaling a clearer path forward by May. The year has started with positive momentum that, if sustained, supports a constructive investment thesis, supported by a diversified portfolio, strong order intake, and improving profitability across segments.

Key Performance Indicators

Revenue
Increasing
247.03M
QoQ: -17.25% | YoY: 13.15%
Gross Profit
Increasing
98.38M
39.83% margin
QoQ: -17.83% | YoY: 16.90%
Operating Income
Increasing
31.61M
QoQ: 23.81% | YoY: 62.47%
Net Income
Increasing
23.47M
QoQ: -31.49% | YoY: 54.74%
EPS
Increasing
0.91
QoQ: -31.58% | YoY: 54.24%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 265.52 1.20 +6.6% View
Q1 2025 247.03 0.91 +13.2% View
Q4 2024 298.53 1.32 +9.5% View
Q3 2024 260.78 1.13 +4.8% View
Q2 2024 249.13 0.90 +8.7% View