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Dec 31, 2024
ESCO Technologies Q1 2025 Earnings Report
ESCO Technologies reported strong Q1 2025 results with significant growth in sales, GAAP EPS, and Adjusted EPS, driven by robust performance across all segments.
Key Takeaways
ESCO Technologies Inc. delivered an outstanding first quarter for fiscal year 2025, with sales increasing by 13.2% to $247.0 million and GAAP EPS rising by 54% to $0.91. Adjusted EPS also saw a substantial increase of 48% to $0.92, or 41% to $1.07 excluding acquisition-related amortization. The company achieved a record backlog of $907 million, reflecting strong order flow and market conditions.
Q1 2025 Sales increased by 13.2% to $247.0 million compared to the prior year.
GAAP EPS rose by 54% to $0.91, and Adjusted EPS increased by 48% to $0.92.
The company achieved a record backlog of $907 million with a book-to-bill ratio of 1.11x.
Net cash provided by operating activities significantly increased to $34 million, up $25 million from the prior year.
ESCO Technologies
ESCO Technologies
ESCO Technologies Revenue by Segment
Revenue by Segment
Aerospace & Defense Revenue
CapyFin.comUtility Solutions Group Revenue
CapyFin.comRF Test & Measurement Revenue
CapyFin.com Forward Guidance
ESCO Technologies is raising its full-year guidance for fiscal 2025 due to strong market conditions and continued operational improvement, with Adjusted EPS now expected to be in the range of $5.55 to $5.75, representing 16% to 21% growth over the prior year.
Positive Outlook
- Strong market conditions and continued improvement in operational performance.
- Raising full-year Adjusted EPS guidance to $5.55 - $5.75.
- Expected 16% to 21% growth in Adjusted EPS over the prior year.
- Initial revenue guidance range of $1.09 to $1.11 billion (6% to 8% annual growth) remains in line.
- Q2 Adjusted EPS expected to be in the range of $1.20 to $1.30, representing 10% to 19% growth over the prior year quarter.
Challenges Ahead
- Acquisition related amortization will be excluded from Adjusted EPS calculation, which impacts comparability with prior guidance.
- The pending SM&P acquisition's impact on FY 2025 acquisition related amortization is not included in current assessment.
- The SM&P acquisition closing is subject to certain conditions, including regulatory approval processes in the UK.
- The SM&P acquisition is expected to close either in the second or early third fiscal quarter, which could introduce integration complexities.
- Inflationary pressures and mix partially offset margin improvements in A&D and Test segments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income