Esco Technologies Inc

Latest Results (19.05.2026):

Esco Technologies Inc.'s report for the second quarter of fiscal 2026 (Q2 2026) shows strong operating momentum: sales rose 33.5% to $309 million, entered orders climbed 42.4% to $378 million (book-to-bill 1.22) and backlog reached about $1.5 billion. GAAP EPS from continuing operations was $1.29 (up 26.5%) and Adjusted EPS was $1.91 (up 63.2%). The company reported broad-based segment strength, improved margins and increased YTD operating cash flow, and it maintained FY2026 revenue guidance while raising full-year Adjusted EPS guidance.

Revenue & Orders

Q2 2026 sales were $309.3M (+33.5% vs Q2 2025). Entered orders totaled $378.2M (+42.4%), producing a book-to-bill of 1.22 and ending backlog of $1.47B (reported as record backlog ~ $1.5B).

Earnings & Margins

GAAP EPS from continuing operations: $1.29 (Q2 2026 vs $1.02 prior year). Adjusted EPS: $1.91 (adjustments totaling $0.62/share). Management highlighted ~320 basis points of Adjusted EBITDA margin expansion; consolidated Q2 2026 EBITDA was $73.1M (Adjusted/As-Adjusted EBITDA $76.4M).

Segment Highlights

Aerospace & Defense led growth: sales $150.3M (+67.7%) with Adjusted EBIT $43.1M (28.6% margin) and entered orders $183.8M. Utility Solutions Group: sales $93.5M (+3.0%), Adjusted EBIT $23.1M (24.7% margin), entered orders $101.3M. RF Test & Measurement: sales $65.5M (+27.5%), Adjusted EBIT $10.1M (15.4% margin), entered orders $93.1M.

Cash Flow & Balance Sheet

Net cash provided by operating activities (YTD continuing operations) was $134.6M versus $46.3M prior year. Cash & cash equivalents at 3/31/26 were $92.3M. Long-term debt decreased to $125.0M (from $166.0M at 9/30/25) and shareholders' equity was $1.585B.

Guidance & Capital Return

ESCO maintained FY2026 revenue guidance at $1.29–$1.33B (18–21% growth) and raised full-year Adjusted EPS guidance to $8.00–$8.25 (up ~33–37%). Q3’26 Adjusted EPS is expected $2.05–$2.15. The company declared a quarterly cash dividend of $0.08 per share payable July 17, 2026.

Acquisition

ESCO announced an agreement to acquire Megger Group Limited (to join the Utility Solutions Group). Regulatory filings are in process and the company expects to close the transaction in Q1 of fiscal 2027.

Backlog & Book-to-Bill

Entered orders by segment in Q2: A&D $183.8M, USG $101.3M, Test $93.1M, total $378.2M. Ending backlog by segment: A&D $1,074.99M, USG $162.51M, Test $232.51M, totaling $1,470.00M (reported ~ $1.5B).