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Mar 31, 2025
ESCO Technologies Q2 2025 Earnings Report
Reported strong financial results for the second quarter of fiscal year 2025
Key Takeaways
ESCO Technologies reported a strong second quarter for fiscal year 2025, with sales increasing by 7% to $266 million and GAAP EPS rising by 33% to $1.20. Adjusted EPS also saw significant growth, increasing by 24% to $1.35. The company achieved a record backlog of $932 million driven by a 22% increase in orders, resulting in a book-to-bill ratio of 1.10x.
Q2 2025 sales increased 7% to $265.5 million compared to $249.1 million in Q2 2024.
GAAP EPS increased 33% to $1.20 per share, and Adjusted EPS increased 24% to $1.35 per share.
Entered orders were $290.8 million, resulting in a book-to-bill ratio of 1.10x and a record backlog of $932 million.
All three segments (Aerospace & Defense, Utility Solutions Group, and RF Test & Measurement) delivered solid revenue growth.
Revenue by Segment
Forward Guidance
ESCO Technologies updated its full-year fiscal 2025 guidance, raising Adjusted EPS expectations. The guidance includes the expected impact of the recent SM&P (ESCO Maritime Solutions) acquisition.
Positive Outlook
- Raising full-year Adjusted EPS guidance by another $0.10 to $5.65 to $5.85 excluding Maritime.
- Updated FY'25 Adjusted EPS Guidance including Maritime is $5.85 to $6.15 (18 to 23 percent growth over the prior year).
- Organic sales expected to grow 6 to 8 percent in FY 2025.
- Maritime expected to contribute sales in the range of $90 to $100 million in FY 2025.
- Maritime expected to contribute Adjusted EPS in the range of $0.20 - $0.30 in FY 2025.
Challenges Ahead
- Transaction costs and purchase accounting amortization associated with the Maritime acquisition have not yet been finalized and are not included in the current business outlook.
- Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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