ESCO Reports Third Quarter Fiscal 2026 Results

St. Louis, Aug. 06, 2026 (GLOBE NEWSWIRE) — ESCO Tech ologies I c. (NYSE: ESE) (ESCO, o the Compa y) today epo ted its ope ati g esults fo the thi d qua te e ded Ju e 30, 2026 (Q3 2026).    

Ope ati g Highlights

• Q3 2026 Sales i c eased $43 millio (14 pe ce t) to $339 millio compa ed to $296 millio i Q3 2025. Q3 2026 o ga ic sales i c eased $20 millio (8 pe ce t), a d Ma itime co t ibuted $23 millio of eve ue g owth i the qua te .   
• Q3 2026 GAAP EPS f om Co ti ui g Ope atio s i c eased 31 pe ce t to $1.26 pe sha e compa ed to $0.96 pe sha e i Q3 2025. Q3 2026 Adjusted EPS f om Co ti ui g Ope atio s i c eased 38 pe ce t to $2.20 pe sha e compa ed to $1.60 pe sha e i Q3 2025.
• Q3 2026 e te ed o de s we e $410 millio , with a book-to-bill atio of 1.21. This esulted i eco d backlog at Ju e 30 of $1.54 billio . Q3 2026 o de s we e lowe tha the p io yea due to $364 millio of acqui ed backlog elated to the acquisitio of Ma itime i Q3 2025.
• Net cash p ovided by ope ati g activities f om Co ti ui g Ope atio s was $193 millio YTD, a i c ease of $105 millio compa ed to the p io yea pe iod.

B ya Sayle , Chief Executive Office a d P eside t, comme ted, “Q3 was a othe st o g qua te , highlighted by 14 pe ce t eve ue g owth, 90 basis poi ts of Adjusted EBIT ma gi expa sio , a d a 38 pe ce t i c ease i Adjusted EPS.

“Yea to date, we have delive ed double-digit o ga ic sales g owth ac oss ou ae ospace, Navy, Test, a d Doble busi esses. This b oad-based st e gth u de sco es the lo g-te m g owth dy amics ac oss ou e d ma kets. At the same time, ou backlog has i c eased by ove $400 millio yea -to-date d ive by mome tum ac oss ou busi ess platfo ms. This combi atio of du able g owth d ive s, leadi g ma ket positio s, a d eco d backlog, gives us co fide ce i ou ability to co ti ue delive i g above-ma ket g owth a d we a e pleased to agai aise ou full-yea FY 2026 guida ce.”

Segme t Pe fo ma ce

Ae ospace & Defe se (A&D)

• Q3 2026 sales i c eased $31.9 millio (23 pe ce t) to $168.2 millio f om $136.3 millio i Q3 2025. O ga ic sales i c eased $9.2 millio (9 pe ce t) a d Ma itime added $22.7 millio of eve ue g owth i the qua te . Qua te ly sales g owth was led by st o g pe fo ma ce i comme cial ae ospace a d Navy.
• Q3 2026 EBIT i c eased $13.8 millio to $50.4 millio f om $36.6 millio i Q3 2025. Adjusted EBIT i c eased $11.2 millio i Q3 2026 to $50.5 millio (30.0 pe ce t ma gi ) f om $39.3 millio (28.8 pe ce t ma gi ) i Q3 2025. The 28 pe ce t i c ease i Adjusted EBIT was d ive by leve age o highe volume a d p ice i c eases, pa tially offset by i flatio a y p essu es a d u favo able mix.
• Q3 2026 E te ed O de s dec eased $386.7 millio (66 pe ce t) to $195.7 millio , as Q3 2025 co tai ed $364.2 millio i acqui ed backlog elated to the Ma itime acquisitio alo g with $67 millio i Block V.2/VI Vi gi ia Class a d $15 millio of Columbia Class o de s.   Book-to-bill i the qua te was 1.16 d ive by highe comme cial a d milita y ae ospace OEM a d afte ma ket o de s, esulti g i eco d backlog of $1.1 billio .

Utility Solutio s G oup (USG)

• Q3 2026 sales i c eased $7.6 millio (8 pe ce t) to $100.0 millio f om $92.4 millio i Q3 2025. Doble sales i c eased by $12.9 millio (17 pe ce t) while NRG sales dec eased by $5.3 millio (29 pe ce t).   Sales g owth i the qua te was d ive by highe p otectio testi g, offli e test equipme t, a d se vices eve ue at Doble, pa tially offset by lowe e ewables eve ue at NRG.
• Q3 2026 EBIT i c eased $0.5 millio to $22.0 millio f om $21.5 millio i Q3 2025. Adjusted EBIT i c eased $0.5 millio i Q3 2026 to $22.3 millio (22.3 pe ce t ma gi ) f om $21.8 millio (23.6 pe ce t ma gi ) i Q3 2025. The i c ease i Adjusted EBIT was d ive by leve age o highe volume at Doble a d p ice i c eases, mostly offset by EBIT eductio s at NRG due to lowe sales volumes.
• Q3 2026 e te ed o de s i c eased $21.4 millio (20 pe ce t) to $126.9 millio (book-to-bill of 1.27), esulti g i backlog of $189.4 millio . Doble o de s i c eased $26.4 millio (30 pe ce t) to $113.3 millio as the busi ess co ti ues to expe ie ce b oad based i c eases i dema d f om utility custome s.   NRG o de s dec eased $5.0 millio (27 pe ce t) to $13.5 millio , elated to the expi atio of U.S. e ewables tax c edits.

RF Test & Measu eme t (Test)

• Q3 2026 sales i c eased $3.2 millio (5 pe ce t) to $70.9 millio f om $67.7 millio i Q3 2025. Sales g owth i the qua te was p ima ily d ive by highe U.S Test & Measu eme t (EMC), a d medical a d i dust ial shieldi g.
• Q3 2026 EBIT i c eased $0.2 millio to $10.9 millio f om $10.7 millio i Q3 2025.   Q3 2026 Adjusted EBIT i c eased $0.9 millio to $11.6 millio (16.4 pe ce t ma gi ) f om $10.7 millio (15.9 pe ce t ma gi ) i Q3 2025. The 8 pe ce t i c ease i Adjusted EBIT was d ive by leve age o highe volume a d p ice i c eases, pa tially offset by i flatio a y p essu es.
• Q3 2026 e te ed o de s i c eased $25.8 millio (42 pe ce t) to $87.0 millio (book-to-bill of 1.23), esulti g i eco d backlog of $248.6 millio .   O de s st e gth i the qua te was d ive by i dust ial shieldi g p ojects a d elect omag etic i te fe e ce (EMI) filte s fo U.S. data ce te s.  

Megge Acquisitio As a ou ced o Ap il 15, 2026, ESCO has ag eed to acqui e Megge G oup Limited. Megge will become pa t of ESCO’s Utility Solutio s G oup, c eati g a busi ess of substa tial scale a d expa di g ou capabilities as a valued pa t e to utilities wo ldwide. All fili gs fo egulato y app oval a e u de way a d we co ti ue to a ticipate closi g o the t a sactio i Q1 of fiscal 2027.

Busi ess Outlook – FY 2026FY 2026 Sales a d Adjusted EPS Guida ce Update:

• Raisi g the lowe e d of FY 2026 Sales guida ce a d ow expect Sales to be i the a ge of $1.30 to $1.33 billio (19 to 21 pe ce t g owth ove the p io yea ).
• Raisi g full yea Adjusted EPS guida ce to a a ge of $8.30 – $8.40 pe sha e (38 to 39 pe ce t g owth), which eflects a midpoi t i c ease of $0.70 pe sha e f om ou i itial Novembe guida ce ($7.50 – $7.80) a d $0.22 pe sha e f om ou mo e ece t May guida ce update of ($8.00 – $8.25).
• Q4’26 Adjusted EPS is expected to be i the a ge of $2.55 – $2.65 pe sha e (10 to 14 pe ce t g owth compa ed to Q4’25 Adjusted EPS).

Divide d Payme tThe ext qua te ly cash divide d of $0.08 pe sha e will be paid o Octobe 15, 2026 to stockholde s of eco d o Octobe 1, 2026.  

Co fe e ce CallThe Compa y will host a co fe e ce call today, August 6, at 4:00 p.m. Ce t al Time, to discuss the Compa y’s Q3 2026 esults. A live audio webcast a d a accompa yi g slide p ese tatio will be available i the I vesto Ce te of ESCO’s website. Pa ticipa ts may also access the webcast usi g this egist atio li k. Fo those u able to pa ticipate, a webcast eplay will be available afte the call i the I vesto Ce te of ESCO’s website.

Fo wa d-Looki g Stateme tsStateme ts i this p ess elease ega di g Ma ageme t’s i te tio s, expectatio s a d guida ce fo fiscal 2026, i cludi g est uctu i g a d cost eductio actio s, sales, o de s, eve ues, ma gi , ea i gs, Adjusted EPS, acquisitio elated amo tizatio , a d a y othe stateme ts which a e ot st ictly histo ical, a e “fo wa d-looki g stateme ts” withi the mea i g of the safe ha bo p ovisio s of the U.S. secu ities laws.

I vesto s a e cautio ed that such stateme ts a e o ly p edictio s a d speak o ly as of the date of this elease, a d the Compa y u de takes o duty to update them except as may be equi ed by applicable laws o egulatio s. The Compa y’s actual esults i the futu e may diffe mate ially f om those p ojected i the fo wa d-looki g stateme ts due to isks a d u ce tai ties that exist i the Compa y’s ope atio s a d busi ess e vi o me t i cludi g but ot limited to those desc ibed i Item 1A, “Risk Facto s”, of the Compa y’s A ual Repo t o Fo m 10-K fo the fiscal yea e ded Septembe 30, 2025 a d the followi g: the impacts of climate cha ge a d elated egulatio of g ee house gases; the impacts of labo disputes, civil diso de , wa s i cludi g the co flicts i volvi g I a a d Leba o , electio s, political cha ges, ta iffs a d t ade disputes, te o ist activities, cybe attacks o atu al disaste s o the Compa y’s ope atio s a d those of the Compa y’s custome s a d supplie s; dis uptio s i ma ufactu i g o delive y a a geme ts due to sho tages o u availability of mate ials o compo e ts; est ictio s o closu es of c itical supply outes such as the St ait of Ho muz; othe supply chai dis uptio s; i ability to access wo k sites; the timi g a d co te t of futu e co t act awa ds o custome o de s; the timely app op iatio , allocatio a d availability of Gove me t fu ds; the te mi atio fo co ve ie ce of Gove me t a d othe custome co t acts o o de s; weake i g of eco omic co ditio s i se ved ma kets; the success of the Compa y’s competito s; cha ges i custome dema ds o custome i solve cies; competitio ; i tellectual p ope ty ights; tech ical difficulties o data b eaches; the availability of acquisitio s; delive y delays o defaults by custome s; pe fo ma ce issues with key custome s, supplie s a d subco t acto s; mate ial cha ges i the costs a d availability of ce tai aw mate ials; mate ial cha ges i the cost of c edit; cha ges i laws a d egulatio s i cludi g but ot limited to cha ges i accou ti g sta da ds a d taxatio ; cha ges i i te est, i flatio a d employme t ates; costs elati g to e vi o me tal matte s a isi g f om cu e t o fo me facilities; u ce tai ty ega di g the ultimate esolutio of cu e t disputes, claims, litigatio o a bit atio ; a d the i teg atio a d pe fo ma ce of acqui ed busi esses.

No -GAAP Fi a cial Measu esThe fi a cial measu es EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, a d Adjusted EPS a e p ese ted i this p ess elease. The Compa y defi es “EBIT” as ea i gs befo e i te est a d taxes, “EBITDA” as ea i gs befo e i te est, taxes, dep eciatio a d amo tizatio , “Adjusted EBIT” a d “Adjusted EBITDA” as excludi g the et impact of the items desc ibed i the attached Reco ciliatio of No -GAAP Fi a cial Measu es, a d “Adjusted EPS” as GAAP ea i gs pe sha e excludi g the et impact of the items desc ibed a d eco ciled i the attached Reco ciliatio of No -GAAP Fi a cial Measu es.

EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, a d Adjusted EPS a e ot ecog ized i acco da ce with U.S. ge e ally accepted accou ti g p i ciples (GAAP). Howeve , Ma ageme t believes EBIT, Adjusted EBIT, EBITDA, a d Adjusted EBITDA a e useful i assessi g the ope atio al p ofitability of the Compa y’s busi ess segme ts because they exclude i te est, taxes, dep eciatio , a d amo tizatio , which a e ge e ally accou ted fo ac oss the e ti e Compa y o a co solidated basis. EBIT is also o e of the measu es used by Ma ageme t i dete mi i g esou ce allocatio s withi the Compa y as well as i ce tive compe satio . The p ese tatio of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, a d Adjusted EPS p ovides impo ta t suppleme tal i fo matio to i vesto s by facilitati g compa iso s with othe compa ies, ma y of which use simila o -GAAP fi a cial measu es to suppleme t thei GAAP esults. The use of o -GAAP fi a cial measu es is ot i te ded to eplace a y measu es of pe fo ma ce dete mi ed i acco da ce with GAAP.

About ESCOESCO Tech ologies is a global p ovide of highly e gi ee ed p oducts a d solutio s se vi g dive se e d-ma kets. It ma ufactu es filt atio a d fluid co t ol p oducts, adva ced composites, as well as sig atu e a d powe ma ageme t solutio s fo aviatio , Navy, a d i dust ial custome s. ESCO is a i dust y leade i desig i g a d ma ufactu i g RF test a d measu eme t p oducts a d systems; a d p ovides diag ostic i st ume ts, softwa e a d se vices to i dust ial powe use s a d the elect ic utility a d e ewable e e gy i dust ies. Headqua te ed i St. Louis, Missou i, ESCO a d its subsidia ies have offices a d ma ufactu i g facilities wo ldwide. Fo mo e i fo matio o ESCO a d its subsidia ies, visit ESCO’s website at www.escotech ologies.com.  

      SOURCE ESCO Tech ologies I c.Kate Low ey, Vice P eside t of I vesto Relatio s, (314) 213-7277