ESCO Technologies (ESE)
Market Price (7/22/2026): $332.1 | Market Cap: $8.6 BilSector: Industrials | Industry: Industrial Machinery & Supplies & Components
ESCO Technologies (ESE)
Market Price (7/22/2026): $332.1Market Cap: $8.6 BilSector: IndustrialsIndustry: Industrial Machinery & Supplies & Components
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 31% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 21%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 17% Low stock price volatilityVol 12M is 32% Megatrend and thematic driversMegatrends include Smart Grids & Grid Modernization, and Water Infrastructure. Themes include Smart Metering, Grid Automation, Show more. | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 45x Key risksESE key risks include [1] a substantial exposure to shifting government and defense spending and [2] a critical reliance on sole-source third-party suppliers. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 31% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 21%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 17% |
| Low stock price volatilityVol 12M is 32% |
| Megatrend and thematic driversMegatrends include Smart Grids & Grid Modernization, and Water Infrastructure. Themes include Smart Metering, Grid Automation, Show more. |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 45x |
| Key risksESE key risks include [1] a substantial exposure to shifting government and defense spending and [2] a critical reliance on sole-source third-party suppliers. |
Qualitative Assessment
AI Analysis | Feedback
ESCO Technologies (ESE) stock has gained about 20% since 3/31/2026 because of the following key factors:
1. ESCO Technologies reported robust financial results for fiscal Q2 2026, which ended March 31, 2026, exceeding analyst expectations. The company's sales increased by 33.5% year-over-year to $309 million, while adjusted EPS from continuing operations surged by 63.2% to $1.91 per share, surpassing the consensus estimate of $1.90. This strong performance was broad-based across its Aerospace & Defense, Utility Solutions, and Test segments.
2. The company announced a record backlog and significantly raised its full fiscal year 2026 guidance. ESCO Technologies reported a 42.4% increase in entered orders, totaling $378 million, contributing to a record backlog of $1.5 billion. Following these strong results, management raised its adjusted EPS guidance for fiscal year 2026 to a range of $8.00 to $8.25, representing a projected growth of 33% to 37%.
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ESCO Technologies (ESE) stock has gained about 20% since 3/31/2026 because of the following key factors:
1. ESCO Technologies reported robust financial results for fiscal Q2 2026, which ended March 31, 2026, exceeding analyst expectations. The company's sales increased by 33.5% year-over-year to $309 million, while adjusted EPS from continuing operations surged by 63.2% to $1.91 per share, surpassing the consensus estimate of $1.90. This strong performance was broad-based across its Aerospace & Defense, Utility Solutions, and Test segments.
2. The company announced a record backlog and significantly raised its full fiscal year 2026 guidance. ESCO Technologies reported a 42.4% increase in entered orders, totaling $378 million, contributing to a record backlog of $1.5 billion. Following these strong results, management raised its adjusted EPS guidance for fiscal year 2026 to a range of $8.00 to $8.25, representing a projected growth of 33% to 37%.
3. The strategic acquisition of Megger Group Limited was announced in April 2026. ESCO Technologies reached an agreement to acquire Megger Group, a move intended to expand its Utility Solutions Group and enhance its capabilities as a partner to utilities globally. This acquisition is anticipated to close in fiscal Q1 2027.
4. Positive analyst sentiment and increased price targets contributed to the upward trend. Following the strong fiscal Q2 2026 results and the Megger acquisition, multiple analysts reiterated or upgraded their ratings and raised price targets for ESCO Technologies. For instance, JP Morgan initiated a "Buy" rating with a $420 price target on June 15, 2026, while Deutsche Bank maintained a "Buy" rating and increased its price target from $350 to $400 on April 17, 2026. The average analyst price target for the stock now ranges from $317.50 to $410.00.
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Stock Movement Drivers
Fundamental Drivers
The 18.1% change in ESE stock from 3/31/2026 to 7/21/2026 was primarily driven by a 16.9% change in the company's P/E Multiple.| (LTM values as of) | 3312026 | 7212026 | Change |
|---|---|---|---|
| Stock Price ($) | 281.23 | 332.16 | 18.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,170 | 1,248 | 6.6% |
| Net Income Margin (%) | 26.0% | 24.7% | -5.1% |
| P/E Multiple | 23.9 | 27.9 | 16.9% |
| Shares Outstanding (Mil) | 26 | 26 | -0.2% |
| Cumulative Contribution | 18.1% |
Market Drivers
3/31/2026 to 7/21/2026| Return | Correlation | |
|---|---|---|
| ESE | 18.1% | |
| Market (SPY) | 15.1% | 36.7% |
| Sector (XLI) | 10.5% | 60.1% |
Fundamental Drivers
The 70.2% change in ESE stock from 12/31/2025 to 7/21/2026 was primarily driven by a 65.7% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 7212026 | Change |
|---|---|---|---|
| Stock Price ($) | 195.21 | 332.16 | 70.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,095 | 1,248 | 13.9% |
| Net Income Margin (%) | 27.3% | 24.7% | -9.6% |
| P/E Multiple | 16.8 | 27.9 | 65.7% |
| Shares Outstanding (Mil) | 26 | 26 | -0.3% |
| Cumulative Contribution | 70.2% |
Market Drivers
12/31/2025 to 7/21/2026| Return | Correlation | |
|---|---|---|
| ESE | 70.2% | |
| Market (SPY) | 10.0% | 43.8% |
| Sector (XLI) | 15.5% | 64.5% |
Fundamental Drivers
The 73.4% change in ESE stock from 6/30/2025 to 7/21/2026 was primarily driven by a 99.5% change in the company's Net Income Margin (%).| (LTM values as of) | 6302025 | 7212026 | Change |
|---|---|---|---|
| Stock Price ($) | 191.54 | 332.16 | 73.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 953 | 1,248 | 30.9% |
| Net Income Margin (%) | 12.4% | 24.7% | 99.5% |
| P/E Multiple | 41.9 | 27.9 | -33.4% |
| Shares Outstanding (Mil) | 26 | 26 | -0.3% |
| Cumulative Contribution | 73.4% |
Market Drivers
6/30/2025 to 7/21/2026| Return | Correlation | |
|---|---|---|
| ESE | 73.4% | |
| Market (SPY) | 22.1% | 43.3% |
| Sector (XLI) | 22.4% | 58.9% |
Fundamental Drivers
The 222.8% change in ESE stock from 6/30/2023 to 7/21/2026 was primarily driven by a 158.9% change in the company's Net Income Margin (%).| (LTM values as of) | 6302023 | 7212026 | Change |
|---|---|---|---|
| Stock Price ($) | 102.89 | 332.16 | 222.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 910 | 1,248 | 37.1% |
| Net Income Margin (%) | 9.5% | 24.7% | 158.9% |
| P/E Multiple | 30.6 | 27.9 | -8.7% |
| Shares Outstanding (Mil) | 26 | 26 | -0.4% |
| Cumulative Contribution | 222.8% |
Market Drivers
6/30/2023 to 7/21/2026| Return | Correlation | |
|---|---|---|
| ESE | 222.8% | |
| Market (SPY) | 74.8% | 48.9% |
| Sector (XLI) | 73.4% | 61.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ESE Return | -13% | -2% | 34% | 14% | 47% | 65% | 216% |
| Peers Return | 22% | 3% | -15% | 4% | -5% | 122% | 133% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 98% |
Monthly Win Rates [3] | |||||||
| ESE Win Rate | 42% | 58% | 50% | 50% | 58% | 71% | |
| Peers Win Rate | 27% | 15% | 21% | 25% | 29% | 29% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| ESE Max Drawdown | -33% | -32% | -14% | -17% | -18% | -15% | |
| Peers Max Drawdown | -13% | -15% | -31% | -19% | -20% | -37% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: HLIT, ADTN, CEPL, EROC, FISN. See ESE Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/21/2026 (YTD)
How Low Can It Go
| Event | ESE | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -16.2% | -18.8% |
| % Gain to Breakeven | 19.4% | 23.1% |
| Time to Breakeven | 30 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -31.0% | -24.5% |
| % Gain to Breakeven | 44.9% | 32.4% |
| Time to Breakeven | 95 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -32.8% | -33.7% |
| % Gain to Breakeven | 48.9% | 50.9% |
| Time to Breakeven | 238 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -10.0% | -19.2% |
| % Gain to Breakeven | 11.1% | 23.8% |
| Time to Breakeven | 23 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -12.8% | -12.2% |
| % Gain to Breakeven | 14.6% | 13.9% |
| Time to Breakeven | 48 days | 62 days |
| 2013 Taper Tantrum | ||
| % Loss | -11.9% | -0.2% |
| % Gain to Breakeven | 13.4% | 0.2% |
| Time to Breakeven | 56 days | 1 days |
In The Past
ESCO Technologies's stock fell -16.2% during the 2025 US Tariff Shock. Such a loss loss requires a 19.4% gain to breakeven.
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| Event | ESE | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -31.0% | -24.5% |
| % Gain to Breakeven | 44.9% | 32.4% |
| Time to Breakeven | 95 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -32.8% | -33.7% |
| % Gain to Breakeven | 48.9% | 50.9% |
| Time to Breakeven | 238 days | 140 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -34.4% | -17.9% |
| % Gain to Breakeven | 52.5% | 21.8% |
| Time to Breakeven | 175 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -20.2% | -15.4% |
| % Gain to Breakeven | 25.3% | 18.2% |
| Time to Breakeven | 29 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -37.1% | -53.4% |
| % Gain to Breakeven | 59.1% | 114.4% |
| Time to Breakeven | 43 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -22.2% | -8.6% |
| % Gain to Breakeven | 28.5% | 9.5% |
| Time to Breakeven | 29 days | 47 days |
In The Past
ESCO Technologies's stock fell -16.2% during the 2025 US Tariff Shock. Such a loss loss requires a 19.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About ESCO Technologies (ESE)
ESCO Technologies Inc. (ESE) is a diversified producer and supplier of engineered products and systems globally, serving a range of industrial and commercial markets. The company operates through three main segments: Aerospace & Defense, Utility Solutions Group, and RF Shielding and Test. This structure allows ESE to provide specialized solutions across critical infrastructure, national security, and technology development sectors.
The Aerospace & Defense segment designs and manufactures essential components such as filtration products, elastomeric-based signature reduction solutions for naval vessels, and precision-machined parts for aircraft landing gear and flight controls, serving commercial aerospace and defense industries. The Utility Solutions Group provides diagnostic testing solutions to help electric power grid operators assess high-voltage equipment and offers decision support tools for the wind and solar renewable energy sectors. Finally, the RF Shielding and Test segment specializes in designing and manufacturing facilities and equipment for radio frequency (RF) testing, secure communications, and acoustic testing, including RF shielded rooms, antennas, and measurement software, along with related calibration and certification services.
AI Analysis | Feedback
Here are 1-3 brief analogies to describe ESCO Technologies (ESE):
- Honeywell for critical niche industrial technologies.
- 3M for highly specialized industrial and defense engineered products.
AI Analysis | Feedback
- Aerospace Filtration Products: Designs and manufactures filtration products, including hydraulic filter elements and fluid control devices for aerospace and defense applications.
- Aerospace & Defense Precision Components: Produces mission-critical bushings, pins, sleeves, and precision-tolerance machined components for various aerospace and defense systems.
- Naval Signature Reduction Solutions: Develops elastomeric-based solutions for signature reduction in U.S. naval vessels.
- Electric Grid Diagnostic Testing Solutions: Provides diagnostic testing solutions that enable electric power grid operators to assess high-voltage power delivery equipment.
- Renewable Energy Decision Support Tools: Offers decision support tools primarily for the wind and solar renewable energy industries.
- RF Test & Secure Communication Facilities: Designs and manufactures RF test and secure communication facilities, acoustic test enclosures, and RF/magnetically shielded rooms.
- RF Measurement Systems & Components: Provides RF absorptive materials, filters, antennas, probes, and other accessories for RF measurement systems.
- RF Measurement & Certification Services: Offers services such as calibration for antennas, chamber certification, field surveys, and various product tests for RF applications.
AI Analysis | Feedback
ESCO Technologies Inc. (ESE) primarily sells its engineered products and systems to other companies within industrial and commercial markets worldwide. Based on the company description, its major customers fall into the following categories:
-
Aerospace and Defense Prime Contractors and OEMs: These companies design, manufacture, and integrate commercial aircraft, satellites, manned aircraft, submarines, and naval vessels. ESCO supplies critical filtration products, fluid control devices, elastomeric-based signature reduction solutions, and precision-machined components for these applications.
Customer Company Examples:
- Boeing (BA)
- Lockheed Martin (LMT)
- Raytheon Technologies (RTX)
-
Electric Power Utilities and Renewable Energy Companies: These entities are responsible for the generation, transmission, and distribution of electricity, as well as the development and operation of wind and solar power projects. ESCO provides diagnostic testing solutions for high-voltage power delivery equipment and decision support tools for the renewable energy industry.
Customer Company Examples:
- NextEra Energy (NEE)
- Duke Energy (DUK)
-
Technology, Telecommunications, and Media Companies: This broad category includes companies that require specialized RF test and secure communication facilities, acoustic test enclosures, RF and magnetically shielded rooms, and broadcast and recording studios for product development, testing, and operational needs.
Customer Company Examples:
- Qualcomm (QCOM) - For electronics and communication testing.
- Paramount Global (PARA) - For broadcast and recording studio needs.
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Bryan Sayler, Chief Executive Officer & President
Bryan Sayler became President and CEO of ESCO Technologies Inc. on January 1, 2023. He joined ESCO in 1995 through an acquisition. Prior to his appointment as CEO, he led ESCO's Utility Solutions Group since 2016, where he was instrumental in strategically building out the segment, including the company's entry into the renewables business and overseeing six successful acquisitions that more than doubled its size. Earlier in his career at ESCO, Mr. Sayler held senior positions within ETS-Lindgren, the company's RF Shield and Test business. He holds a Bachelor of Arts degree from Southeastern University and a Master of Business Administration from Baylor University.
Christopher L. Tucker, Senior Vice President & Chief Financial Officer
Christopher L. Tucker has served as Senior Vice President and Chief Financial Officer of ESCO Technologies Inc. since April 2021. He succeeded Gary E. Muenster upon his retirement. Before joining ESCO, Mr. Tucker spent 24 years at Emerson Electric Co., where he most recently held the position of Vice President and Chief Financial Officer of Emerson's Commercial & Residential Solutions reporting segment, managing approximately $6 billion in annual revenue. He has a proven track record of driving financial results and has held various roles of increasing responsibility at Emerson. Mr. Tucker earned a Bachelor of Science degree in Accounting from the University of Missouri – Columbia and a Master of Business Administration from the Olin School of Business at Washington University in St. Louis.
Victor L. Richey, Executive Chairman
Victor L. Richey currently serves as Executive Chairman of the ESCO Board of Directors. He was the Chairman, Chief Executive Officer, and President of ESCO Technologies Inc. from 2002 until his retirement from the CEO and President roles on December 31, 2022. Mr. Richey joined ESCO in 1985 and held various positions at both subsidiary and corporate levels, primarily in marketing and general management. Before his tenure at ESCO, he spent six years as a military intelligence officer in the U.S. Army. He was instrumental in the portfolio transformation that shaped ESCO into its current global provider structure. Mr. Richey holds an undergraduate degree from WKU and an MBA from Washington University in St. Louis.
David Schatz, Senior Vice President, Secretary & General Counsel
David Schatz serves as Senior Vice President, Secretary & General Counsel for ESCO Technologies Inc.
Matthew Carrara, Doble Engineering Company President & Utility Solutions Group President
Matthew Carrara is the President of Doble Engineering Company and the Utility Solutions Group for ESCO Technologies Inc.
AI Analysis | Feedback
Key Risks to the Business
- Dependence on Government and Defense Spending: A significant portion of ESCO Technologies' Aerospace & Defense segment, which designs and manufactures filtration products, fluid control devices, elastomeric-based signature reduction solutions, and mission-critical components, relies on contracts and spending from the U.S. naval vessels and the broader defense industries. Fluctuations, reductions, or changes in government budgets, defense priorities, or political landscapes could directly impact the demand for their specialized products and services, leading to reduced revenue and profitability in this key segment.
- Vulnerability to Rapid Technological Change and Obsolescence: ESCO Technologies operates in sectors characterized by continuous technological evolution, particularly within its Utility Solutions Group and RF Shielding and Test segments. The Utility Solutions Group provides diagnostic testing for electric power grids and decision support tools for the renewable energy industry, both of which are subject to advancements in smart grid technologies, new energy sources, and evolving infrastructure. Similarly, the RF Shielding and Test segment deals with RF test facilities, secure communication systems, and measurement technologies that must constantly adapt to new telecommunication standards (e.g., 5G, future wireless generations) and technological breakthroughs. A failure to continuously innovate, adapt products, and keep pace with these rapid technological changes could lead to product obsolescence, loss of competitive advantage, and diminished market relevance.
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The emergence of comprehensive, AI-driven predictive maintenance and grid health platforms, leveraging advanced IoT sensors and machine learning, could displace or reduce the necessity for ESCO Technologies' specialized diagnostic testing solutions for high-voltage power delivery equipment. These integrated platforms from competitors could offer more continuous, autonomous, and cost-effective monitoring and decision support, potentially rendering point-solution diagnostics less competitive.
AI Analysis | Feedback
ESCO Technologies Inc. (NYSE: ESE) participates in several industrial and commercial markets through its Aerospace & Defense, Utility Solutions Group, and RF Shielding and Test segments. The addressable market sizes for its main products and services are as follows:
Aerospace & Defense Segment
- Filtration Products (including hydraulic filter elements, fluid control devices, and custom filters): The global aerospace and defense filters market was valued at approximately USD 1.05 billion in 2025 and is projected to reach USD 1.1 billion in 2026, with a compound annual growth rate (CAGR) of 4.8% to reach USD 1.31 billion by 2030. Another report estimated the global aerospace filters market size at USD 787.2 million in 2024, expected to grow to USD 840.4 million in 2025 and USD 1119.9 million in 2034, at a CAGR of 3.2% from 2025 to 2034. North America is identified as the largest market for aerospace & defense filters.
- Elastomeric-based Signature Reduction Solutions: The global aerospace and defense elastomers market was valued at approximately USD 72.46 billion in 2024 and is projected to reach USD 130.99 billion by 2034, growing at a CAGR of about 6.10% between 2025 and 2034. North America held the largest revenue share in this market in 2024.
- Mission-Critical Bushings, Pins, Sleeves, and Precision-Tolerance Machined Components: The global precision turned product manufacturing market was estimated at USD 115.39 billion in 2025 and is predicted to increase to approximately USD 196.11 billion by 2034, expanding at a CAGR of 6.07% from 2025 to 2034. The global aerospace parts manufacturing market was valued at USD 1.02 trillion in 2025 and is projected to reach USD 1.39 trillion by 2030, with a CAGR of 6.39%. North America contributed 36.54% of the aerospace parts manufacturing market value in 2024.
Utility Solutions Group Segment
- Diagnostic Testing Solutions for High-Voltage Power Delivery Equipment: The global high voltage equipment market is estimated to be valued at USD 132.87 billion in 2025 and is expected to reach USD 217.58 billion in 2032, exhibiting a CAGR of 7.3% from 2025 to 2032. Asia Pacific accounted for the largest share of 37.1% in 2025. The global electrical test equipment market was USD 17.31 billion in 2026 and is projected to reach USD 23.15 billion by 2031, registering a 5.99% CAGR. North America held 38.73% share in 2025.
- Decision Support Tools for the Renewable Energy Industry (wind and solar): The global renewable energy market has reached an estimated USD 1.4-1.5 trillion in 2025. Another source states the market was valued at USD 1078.7 billion in 2025 and is projected to grow to USD 1838.57 billion by 2034, exhibiting a CAGR of 6.17%. Asia Pacific dominated the renewable energy market with a market share of 6.17% in 2025. The global agentic AI in energy market, which includes decision intelligence platforms for grid optimization, was calculated at USD 656.6 million in 2025 and is predicted to increase to approximately USD 14,907.31 million by 2035, expanding at a CAGR of 36.65%.
RF Shielding and Test Segment
- RF Test and Secure Communication Facilities, Acoustic Test Enclosures, RF and Magnetically Shielded Rooms, RF Measurement Systems, and Services: The global RF shielded test chamber market size was valued at USD 1.05 billion in 2025 and is projected to grow to USD 1.98 billion by 2034, exhibiting a CAGR of 7.2%. The global RF shielded test enclosures market is expected to grow from USD 4.33 billion in 2025 to USD 7.49 billion by 2032, at a CAGR of 8.14%. The global anechoic chamber market size was USD 1.89 billion in 2025 and is expected to reach USD 8.19 billion by 2035, commanding a CAGR of 15.8%. The global EMC shielding and test equipment market size was valued at USD 8.40 billion in 2024 and is expected to reach USD 13.59 billion by 2032, at a CAGR of 6.20%. North America dominated the EMC shielding and test equipment market with the largest revenue share of 36.49% in 2024. The global EMC testing market was valued at USD 2.81 billion in 2024 and is projected to reach USD 5.31 billion by 2034, growing at a CAGR of 6.4% between 2025 and 2034.
AI Analysis | Feedback
Here are 3-5 expected drivers of future revenue growth for ESCO Technologies (ESE) over the next 2-3 years:
- Strong Demand and Expanding Backlog in the Aerospace & Defense Segment: ESCO Technologies is experiencing robust demand within its Aerospace & Defense segment, encompassing commercial and defense aerospace, as well as Navy-related businesses. This strong demand has resulted in significant order growth and an expanding backlog, providing clear revenue visibility for future periods.
- Strategic Acquisitions: The company's proactive approach to strategic acquisitions is a key driver of revenue growth. Recent acquisitions, such as ESCO Maritime and CMT Materials, have expanded ESCO Technologies' product offerings, technological capabilities, and market position, directly contributing to increased sales.
- Consistent Growth in the Utility Solutions Group: The Utility Solutions Group is expected to continue its solid performance. This segment benefits from ongoing demand for diagnostic testing solutions for electric power grid operators and decision support tools for the growing renewable energy industry, particularly wind and solar.
- Outperformance and Increased Guidance in the RF Shielding and Test Segment: Despite some mixed results, the RF Shielding and Test segment has demonstrated strong performance, with increased orders and sales contributing to an upward revision of its full-year sales guidance. This positive momentum is anticipated to continue driving revenue growth.
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Capital Allocation Decisions (Last 3-5 Years)
Share Repurchases
- ESCO Technologies repurchased common stock totaling approximately $8.00 million in March 2022, $7.14 million in March 2023, and $7.19 million in March 2024.
- The company executed share buybacks of approximately $10.00 million in December 2021 and $5.08 million in December 2022.
- ESCO Technologies did not repurchase any shares during the fourth quarter of fiscal year 2025.
Share Issuance
- ESCO Technologies' shares outstanding saw minor fluctuations, with a 0.15% increase in 2025 from 2024, following a 0.03% decline in 2024 from 2023.
- Insiders have filed notices for proposed sales of common stock, indicating shares acquired through equity compensation awards in various years, including 2022, 2024, and 2025.
Inbound Investments
- Capital World Investors acquired a new stake of 443,976 shares in ESCO Technologies, valued at approximately $93.73 million in the third quarter (presumably of 2025).
- Several institutional investors, including Swiss National Bank, Inceptionr LLC, Intellectus Partners LLC, Legato Capital Management LLC, and Teachers Retirement System of The State of Kentucky, increased their positions or purchased new stakes in ESCO Technologies in the third quarter (presumably of 2025).
Outbound Investments
- In April 2025, ESCO Technologies acquired the Signature Management & Power (SM&P) business of Ultra Electronics Holdings Limited, an acquisition expected to add $175 million in annual sales.
- The company completed the acquisition of I.S.A Altanova Group S.R.L. (Altanova) in July 2021 and Phenix Technologies, Inc. (Phenix) in August 2021, bolstering its Utility Solutions Group.
- ESCO Technologies acquired MPE in November 2023, a manufacturer of high-performance EMC/EMP filters and capacitor products, and CMT Materials, which is expected to expand product offerings and technological capabilities.
- During the fourth quarter of fiscal year 2025, the company completed the sale of VACCO Industries.
Capital Expenditures
- Capital expenditures were $36.322 million in fiscal year 2025 and $28.275 million in fiscal year 2024.
- In fiscal year 2023, capital expenditures amounted to $22 million, and in fiscal year 2022, they were $32 million.
- As of September 30, 2025, there were no commitments outstanding that were considered material for capital expenditures.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 12.30 |
| Mkt Cap | 1.2 |
| Rev LTM | 736 |
| Op Inc LTM | 15 |
| FCF LTM | 39 |
| FCF 3Y Avg | 58 |
| CFO LTM | 78 |
| CFO 3Y Avg | 74 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 21.4% |
| Rev Chg 3Y Avg | 5.4% |
| Rev Chg Q | 24.5% |
| QoQ Delta Rev Chg LTM | 5.1% |
| Op Inc Chg LTM | 57.5% |
| Op Inc Chg 3Y Avg | 46.3% |
| Op Mgn LTM | 5.5% |
| Op Mgn 3Y Avg | 1.2% |
| QoQ Delta Op Mgn LTM | 0.6% |
| CFO/Rev LTM | 12.5% |
| CFO/Rev 3Y Avg | 16.6% |
| FCF/Rev LTM | 8.0% |
| FCF/Rev 3Y Avg | 12.5% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 1.2 |
| P/S | 3.9 |
| P/Op Inc | 44.1 |
| P/EBIT | 45.2 |
| P/E | -27.3 |
| P/CFO | 24.4 |
| Total Yield | -3.1% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 2.4% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -18.0% |
| 3M Rtn | 2.7% |
| 6M Rtn | 28.9% |
| 12M Rtn | 31.8% |
| 3Y Rtn | 10.6% |
| 1M Excs Rtn | -18.1% |
| 3M Excs Rtn | -3.1% |
| 6M Excs Rtn | 19.3% |
| 12M Excs Rtn | 12.7% |
| 3Y Excs Rtn | -57.3% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Aerospace & Defense (A&D) | 478 | 341 | 392 | 351 | 315 |
| Utility Solutions Group (USG) | 380 | 369 | 342 | 278 | 203 |
| Test | 237 | 210 | 221 | 228 | 198 |
| Corporate | 0 | 0 | |||
| Total | 1,095 | 919 | 956 | 857 | 715 |
| $ Mil | 2003 | 2002 | 2001 | 2000 |
|---|---|---|---|---|
| Communications | 30 | 21 | 13 | 9 |
| Filtration/Fluid Flow | 15 | |||
| Test | 5 | 4 | 7 | 7 |
| Other | -7 | 1 | 1 | -0 |
| Filtration | 13 | 17 | 17 | |
| Total | 43 | 38 | 38 | 32 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Corporate | 1,504 | 954 | 906 | 965 | 956 |
| Aerospace & Defense (A&D) | 410 | 268 | 355 | 295 | 270 |
| Utility Solutions Group (USG) | 290 | 294 | 255 | 220 | 198 |
| Test | 207 | 189 | 168 | 175 | 154 |
| Total | 2,410 | 1,705 | 1,683 | 1,654 | 1,577 |
Price Behavior
| Market Price | $332.16 | |
| Market Cap ($ Bil) | 8.6 | |
| First Trading Date | 10/01/1990 | |
| Distance from 52W High | -6.4% | |
| 50 Days | 200 Days | |
| DMA Price | $316.64 | $263.19 |
| DMA Trend | up | up |
| Distance from DMA | 4.9% | 26.2% |
| 3M | 1YR | |
| Volatility | 36.7% | 32.3% |
| Downside Capture | 69.04 | 69.02 |
| Upside Capture | 75.03 | 118.22 |
| Correlation (SPY) | 26.9% | 42.5% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.91 | 0.54 | 0.97 | 1.11 | 1.06 | 1.00 |
| Up Beta | 1.94 | 1.73 | 2.17 | 1.99 | 1.92 | 1.17 |
| Down Beta | 0.92 | 0.69 | 0.53 | 0.83 | 0.71 | 0.90 |
| Up Capture | 189% | 36% | 79% | 160% | 123% | 127% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 16 | 27 | 41 | 78 | 144 | 407 |
| Down Capture | -33% | -14% | -9% | 31% | 67% | 93% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 5 | 14 | 22 | 47 | 108 | 343 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ESE | |
|---|---|---|---|---|
| ESE | 69.8% | 32.3% | 1.67 | - |
| Sector ETF (XLI) | 19.3% | 16.6% | 0.88 | 59.0% |
| Equity (SPY) | 20.3% | 12.6% | 1.19 | 42.7% |
| Gold (GLD) | 21.6% | 28.1% | 0.69 | 22.6% |
| Commodities (DBC) | 31.4% | 19.1% | 1.30 | -5.6% |
| Real Estate (VNQ) | 15.0% | 14.0% | 0.76 | 15.0% |
| Bitcoin (BTCUSD) | -44.6% | 42.9% | -1.25 | 15.3% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ESE | |
|---|---|---|---|---|
| ESE | 28.6% | 30.6% | 0.85 | - |
| Sector ETF (XLI) | 13.4% | 17.6% | 0.59 | 63.4% |
| Equity (SPY) | 12.9% | 17.1% | 0.58 | 53.3% |
| Gold (GLD) | 17.3% | 18.4% | 0.76 | 10.7% |
| Commodities (DBC) | 8.9% | 19.5% | 0.35 | 10.2% |
| Real Estate (VNQ) | 2.9% | 18.9% | 0.05 | 43.2% |
| Bitcoin (BTCUSD) | 14.9% | 53.4% | 0.46 | 22.6% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ESE | |
|---|---|---|---|---|
| ESE | 23.5% | 30.6% | 0.75 | - |
| Sector ETF (XLI) | 13.9% | 20.0% | 0.61 | 67.5% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 60.0% |
| Gold (GLD) | 11.2% | 16.1% | 0.57 | 6.4% |
| Commodities (DBC) | 7.2% | 17.9% | 0.32 | 18.8% |
| Real Estate (VNQ) | 5.1% | 20.7% | 0.21 | 49.8% |
| Bitcoin (BTCUSD) | 58.7% | 66.2% | 0.99 | 16.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/10/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/7/2026 | -8.9% | -10.9% | -11.2% |
| 2/5/2026 | 6.2% | 14.4% | 13.7% |
| 11/20/2025 | 2.5% | -2.5% | -3.1% |
| 8/7/2025 | 1.8% | -0.9% | 8.2% |
| 5/7/2025 | 6.3% | 9.1% | 12.6% |
| 2/6/2025 | 19.7% | 24.2% | 18.1% |
| 11/14/2024 | 3.1% | 6.1% | 0.3% |
| 8/7/2024 | 3.5% | 5.6% | 2.4% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 16 | 12 | 12 |
| # Negative | 8 | 12 | 12 |
| Median Positive | 2.9% | 5.9% | 7.1% |
| Median Negative | -5.8% | -4.0% | -6.7% |
| Max Positive | 19.7% | 24.2% | 18.1% |
| Max Negative | -8.9% | -10.9% | -15.7% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/7/2026 | -8.9% | -10.9% | -11.2% |
| 2/5/2026 | 6.2% | 14.4% | 13.7% |
| 11/20/2025 | 2.5% | -2.5% | -3.1% |
| 8/7/2025 | 1.8% | -0.9% | 8.2% |
| 5/7/2025 | 6.3% | 9.1% | 12.6% |
| 2/6/2025 | 19.7% | 24.2% | 18.1% |
| 11/14/2024 | 3.1% | 6.1% | 0.3% |
| 8/7/2024 | 3.5% | 5.6% | 2.4% |
| 5/9/2024 | -5.8% | -3.0% | -5.2% |
| 2/8/2024 | -5.9% | -0.1% | -3.6% |
| 11/16/2023 | 1.3% | 2.6% | 9.9% |
| 8/8/2023 | 2.7% | 1.6% | -0.8% |
| 5/9/2023 | 1.8% | -0.5% | 0.9% |
| 2/8/2023 | -6.1% | -4.1% | -11.1% |
| 11/17/2022 | 3.6% | 8.9% | -0.2% |
| 8/8/2022 | 3.1% | 15.9% | 4.8% |
| 5/9/2022 | 6.9% | 5.0% | 9.9% |
| 2/8/2022 | -5.9% | -8.4% | -9.4% |
| 11/18/2021 | 1.9% | -9.3% | -6.2% |
| 8/9/2021 | 0.7% | -5.3% | -9.7% |
| 5/4/2021 | -0.3% | -5.4% | -15.7% |
| 2/8/2021 | 0.5% | 1.2% | 6.1% |
| 11/19/2020 | -0.5% | 0.6% | 1.1% |
| 8/10/2020 | -1.6% | -3.8% | -7.2% |
| SUMMARY STATS | |||
| # Positive | 16 | 12 | 12 |
| # Negative | 8 | 12 | 12 |
| Median Positive | 2.9% | 5.9% | 7.1% |
| Median Negative | -5.8% | -4.0% | -6.7% |
| Max Positive | 19.7% | 24.2% | 18.1% |
| Max Negative | -8.9% | -10.9% | -15.7% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/11/2026 | 10-Q |
| 12/31/2025 | 02/09/2026 | 10-Q |
| 09/30/2025 | 12/01/2025 | 10-K |
| 06/30/2025 | 08/11/2025 | 10-Q |
| 03/31/2025 | 05/09/2025 | 10-Q |
| 12/31/2024 | 02/10/2025 | 10-Q |
| 09/30/2024 | 11/29/2024 | 10-K |
| 06/30/2024 | 08/09/2024 | 10-Q |
| 03/31/2024 | 05/10/2024 | 10-Q |
| 12/31/2023 | 02/09/2024 | 10-Q |
| 09/30/2023 | 11/29/2023 | 10-K |
| 06/30/2023 | 08/09/2023 | 10-Q |
| 03/31/2023 | 05/10/2023 | 10-Q |
| 12/31/2022 | 02/09/2023 | 10-Q |
| 09/30/2022 | 11/29/2022 | 10-K |
| 06/30/2022 | 08/09/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/11/2026 | 10-Q |
| 12/31/2025 | 02/09/2026 | 10-Q |
| 09/30/2025 | 12/01/2025 | 10-K |
| 06/30/2025 | 08/11/2025 | 10-Q |
| 03/31/2025 | 05/09/2025 | 10-Q |
| 12/31/2024 | 02/10/2025 | 10-Q |
| 09/30/2024 | 11/29/2024 | 10-K |
| 06/30/2024 | 08/09/2024 | 10-Q |
| 03/31/2024 | 05/10/2024 | 10-Q |
| 12/31/2023 | 02/09/2024 | 10-Q |
| 09/30/2023 | 11/29/2023 | 10-K |
| 06/30/2023 | 08/09/2023 | 10-Q |
| 03/31/2023 | 05/10/2023 | 10-Q |
| 12/31/2022 | 02/09/2023 | 10-Q |
| 09/30/2022 | 11/29/2022 | 10-K |
| 06/30/2022 | 08/09/2022 | 10-Q |
| 03/31/2022 | 05/10/2022 | 10-Q |
| 12/31/2021 | 02/09/2022 | 10-Q |
| 09/30/2021 | 11/29/2021 | 10-K |
| 06/30/2021 | 08/09/2021 | 10-Q |
| 03/31/2021 | 05/07/2021 | 10-Q |
| 12/31/2020 | 02/09/2021 | 10-Q |
| 09/30/2020 | 11/30/2020 | 10-K |
| 06/30/2020 | 08/10/2020 | 10-Q |
| 03/31/2020 | 05/08/2020 | 10-Q |
| 12/31/2019 | 02/07/2020 | 10-Q |
| 09/30/2019 | 11/29/2019 | 10-K |
| 06/30/2019 | 08/09/2019 | 10-Q |
Recent Forward Guidance
Updated 7/12/2026Latest: Q2 2026 Earnings Reported 5/7/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Adjusted EPS | 2.05 | 2.1 | 2.15 | ||||
| 2026 Revenue | 1.29 Bil | 1.31 Bil | 1.33 Bil | 0 | Affirmed | Guidance: 1.31 Bil for 2026 | |
| 2026 Adjusted EPS | 8 | 8.12 | 8.25 | 1.2% | Raised | Guidance: 8.03 for 2026 | |
Prior: Q1 2026 Earnings Reported 2/5/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 1.29 Bil | 1.31 Bil | 1.33 Bil | 1.6% | Raised | Guidance: 1.29 Bil for 2026 | |
| 2026 EPS | 7.9 | 8.03 | 8.15 | 4.9% | Raised | Guidance: 7.65 for 2026 | |
| Q2 2026 EPS | 1.75 | 1.8 | 1.85 | ||||
| 2026 A&D Revenue Growth | 34.0% | 36.5% | 39.0% | ||||
| 2026 Maritime Revenue | 230.00 Mil | 237.50 Mil | 245.00 Mil | ||||
| 2026 USG Revenue Growth | 4.0% | 5.0% | 6.0% | ||||
| 2026 Test Revenue Growth | 9.0% | 10.0% | 11.0% | ||||
Q4 2025 Earnings Reported 11/20/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Adjusted EPS | 1.25 | 1.3 | 1.35 | -38.5% | Lower New | Guidance: 2.12 for Q4 2025 | |
| 2026 Revenue | 1.27 Bil | 1.29 Bil | 1.31 Bil | 18.3% | Higher New | Guidance: 1.09 Bil for 2025 | |
| 2026 Revenue Growth | 16.0% | 18.0% | 20.0% | ||||
| 2026 Adjusted EPS | 7.5 | 7.65 | 7.8 | 31.3% | Higher New | Guidance: 5.83 for 2025 | |
Insider Activity
Updated 7/20/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Khilnani, Vinod M | Direct | Sell | 11262025 | 217.99 | 3,000 | 653,971 | 4,461,829 | Form | |
| 2 | Sayler, Bryan H | CEO & PRESIDENT | Direct | Sell | 11262025 | 220.00 | 401 | 88,220 | 4,455,880 | Form |
| 3 | Khilnani, Vinod M | Direct | Sell | 11262025 | 224.04 | 216 | 48,393 | 5,257,771 | Form | |
| 4 | Tucker, Christopher L | Sr. Vice President & CFO | Direct | Sell | 11262025 | 220.15 | 5,000 | 1,100,750 | 4,429,638 | Form |
| 5 | Sayler, Bryan H | CEO & PRESIDENT | Direct | Sell | 11262025 | 220.00 | 9,382 | 2,064,040 | 4,544,100 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Khilnani, Vinod M | Direct | Sell | 11262025 | 217.99 | 3,000 | 653,971 | 4,461,829 | Form | |
| 2 | Sayler, Bryan H | CEO & PRESIDENT | Direct | Sell | 11262025 | 220.00 | 401 | 88,220 | 4,455,880 | Form |
| 3 | Khilnani, Vinod M | Direct | Sell | 11262025 | 224.04 | 216 | 48,393 | 5,257,771 | Form | |
| 4 | Tucker, Christopher L | Sr. Vice President & CFO | Direct | Sell | 11262025 | 220.15 | 5,000 | 1,100,750 | 4,429,638 | Form |
| 5 | Sayler, Bryan H | CEO & PRESIDENT | Direct | Sell | 11262025 | 220.00 | 9,382 | 2,064,040 | 4,544,100 | Form |
| 6 | Phillippy, Robert J | Direct | Sell | 11262025 | 222.53 | 3,700 | 823,370 | 1,450,689 | Form | |
| 7 | Schatz, David M | Sr. VP, Sec'y & Gen. Counsel | Direct | Sell | 11252025 | 225.65 | 2,498 | 563,674 | 5,039,216 | Form |
Investor Activity (13F)
Updated Jul 22, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
Industry Resources
| Industrials Resources |
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| Machine Design |
| Modern Machine Shop |
| Industrial Equipment News (IEN) |
External Quote Links
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| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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