olivLaw · US equity research
ESCO Technologies Inc. ESE
Communications Equipment, NEC · SIC 3669 · Vertical: Communications Equipment, NEC (SIC 3669)
ESCO Technologies Inc. designs and makes highly engineered components and systems for aviation, the US Navy and defense, plus diagnostic instruments for power grids and RF test systems. With record backlog of 1.54 billion dollars at June 30, 2026, the company raised its fiscal 2026 guidance, and the Megger acquisition announced in April 2026 could expand its utility business.
At the close of 04 Nov 2026, ESCO Technologies Inc. (ESE) stock was 239.86 USD (−4.28% on the day), with market capitalisation 6.2 bn USD, P/E 19.8 on diluted EPS of 12.12 USD over the last 12 months, dividend yield 0.13%, beta 1.04, 52-week range 195.39–354.90 USD. Latest reported quarter (Q3 2026): revenue of 339.0 m USD (+14.4% YoY), net income of 32.7 m USD (+25.6% YoY), diluted EPS 1.26 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 41.5
- weak (30–45)
- Bollinger (20, 2)
- 228.82 – 264.43
- in the lower half of the band · %B 0.31 · band width 14.4%
- SMA 50 / 200
- 259.68 / 287.64
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -6.34 / -7.30
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −11.8% | −1.1% | −10.7 pp | — |
| 3 months | −26.8% | −0.5% | −26.3 pp | — |
| 6 months | −28.5% | +4.4% | −32.9 pp | — |
| Year to date | +22.8% | +12.3% | +10.4 pp | — |
| 1 year | +9.2% | +13.5% | −4.4 pp | −42.9% |
| 3 years | +139.5% | +76.4% | +63.1 pp | +22.4% |
| 5 years | +165.6% | +63.7% | +101.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 273.5 m | 214.6 m | 231.8 m | 296.3 m | 352.7 m | 289.7 m | 309.3 m | 339.0 m |
| Cost of revenue | 152.1 m | 124.2 m | 132.5 m | 174.4 m | 203.2 m | 169.7 m | 178.0 m | 197.5 m |
| SG&A | 55.6 m | 55.0 m | 54.3 m | 62.0 m | 63.3 m | 61.2 m | 62.8 m | 71.0 m |
| Operating income | — | 28.1 m | — | — | — | 38.4 m | — | — |
| Depreciation & amortisation | 13.2 m | 13.0 m | 13.1 m | 22.4 m | 26.6 m | 26.5 m | 26.8 m | 26.7 m |
| Interest expense | 6.0 m | 2.3 m | 2.2 m | 7.9 m | 5.1 m | 2.9 m | — | — |
| Pre-tax income | 50.6 m | 25.8 m | 34.4 m | 33.1 m | 59.6 m | 35.5 m | 43.9 m | 41.0 m |
| Income tax | 11.3 m | 5.5 m | 8.0 m | 8.3 m | 14.7 m | 6.8 m | 10.3 m | 8.2 m |
| Net income | 34.3 m | 23.5 m | 31.0 m | 26.1 m | 218.7 m | 28.7 m | 34.7 m | 32.7 m |
| Diluted EPS | 1.32 ≈ | 0.91 | 1.20 | 1.01 | 8.41 ≈ | 1.11 | 1.34 | 1.26 |
| Operating cash flow | 72.1 m | 34.2 m | 24.1 m ≈ | 73.7 m ≈ | 109.9 m | 68.9 m | 6.4 m ≈ | 58.8 m ≈ |
| Capex | 8.7 m | 5.1 m | 9.7 m ≈ | 9.3 m ≈ | 12.1 m | 5.9 m | 7.2 m ≈ | 11.4 m ≈ |
| Dividends paid | 2.1 m | 2.1 m | 2.1 m ≈ | 2.1 m ≈ | 2.1 m | 2.1 m | 2.1 m ≈ | 2.1 m ≈ |
| Share repurchases | 0 | — | — | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 14 percentile of its own 35-quarter history (min 13.3, median 28.6, max 111.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 771.6 m | 726.0 m | 730.5 m | 715.4 m | 857.5 m | 855.8 m | 919.1 m | 1.1 bn |
| Revenue YoY | +12.5% | −5.9% | +0.6% | −2.1% | +19.9% | −0.2% | +7.4% | +19.2% |
| Net income | 92.1 m | 81.0 m | 99.4 m | 63.5 m | 82.3 m | 92.5 m | 101.9 m | 299.2 m |
| Net income YoY | +71.6% | −12.0% | +22.7% | −36.1% | +29.6% | +12.4% | +10.1% | +193.7% |
| Diluted EPS | 3.54 | 3.10 | 3.81 | 2.42 | 3.16 | 3.58 | 3.94 | 11.55 |
| Diluted EPS YoY | +71.0% | −12.4% | +22.9% | −36.5% | +30.6% | +13.3% | +10.1% | +193.1% |
| net % | 11.9% | 11.2% | 13.6% | 8.9% | 9.6% | 10.8% | 11.1% | 27.3% |
| Free cash flow | 78.0 m | 80.9 m | 50.2 m | 96.4 m | 103.2 m | 57.2 m | 99.3 m | 205.6 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 101.4 m USD
- Financial debt
- 186.0 m USD
- Net debt
- 84.7 m USD
- Equity
- 1.5 bn USD
- Total assets
- 2.4 bn USD
- Debt / equity
- 0.12x
- Current ratio
- 1.35x
- ROE
- 21.5%
- ROA
- 14.1%
- FCF margin
- 18.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 730.5 m | 715.4 m | 857.5 m | 855.8 m | 919.1 m | 1.1 bn | SEC (XBRL)· 01 Dec 2025verified |
| Cost of revenue | 458.3 m | 445.0 m | 525.5 m | 502.7 m | 530.6 m | 634.3 m | SEC (XBRL)· 01 Dec 2025verified |
| Gross profit | 272.2 m ≈ | 270.4 m ≈ | 332.0 m ≈ | 353.1 m ≈ | 388.6 m ≈ | 461.1 m ≈ | SEC (XBRL)· 01 Dec 2025derived |
| Research & development | 13.3 m | 15.4 m | 12.3 m | 13.0 m | 12.0 m | 23.0 m | SEC (XBRL)· 01 Dec 2025verified |
| SG&A | 159.5 m | 167.5 m | 195.1 m | 203.5 m | 208.2 m | 234.6 m | SEC (XBRL)· 01 Dec 2025verified |
| Operating income | — | — | — | 119.1 m | 146.2 m | 170.4 m | SEC (XBRL)· 01 Dec 2025verified |
| Depreciation & amortisation | 41.3 m | 42.0 m | 48.3 m | 47.7 m | 52.2 m | 75.0 m | SEC (XBRL)· 01 Dec 2025verified |
| EBITDA | — | — | — | 166.8 m ≈ | 198.4 m ≈ | 245.4 m ≈ | SEC (XBRL)· 01 Dec 2025derived |
| Interest expense | 6.7 m | 2.2 m | 4.9 m | 8.8 m | 15.2 m | 17.5 m | SEC (XBRL)· 01 Dec 2025verified |
| Pre-tax income | 36.4 m | 80.7 m | 106.4 m | 110.4 m | 131.0 m | 152.9 m | SEC (XBRL)· 01 Dec 2025verified |
| Income tax | 13.5 m | 17.2 m | 24.1 m | 24.7 m | 28.3 m | 36.6 m | SEC (XBRL)· 01 Dec 2025verified |
| Net income | 99.4 m | 63.5 m | 82.3 m | 92.5 m | 101.9 m | 299.2 m | SEC (XBRL)· 01 Dec 2025verified |
| Diluted EPS | 3.81 | 2.42 | 3.16 | 3.58 | 3.94 | 11.55 | SEC (XBRL)· 01 Dec 2025verified |
| Weighted average diluted shares | 26.1 m | 26.2 m | 26.1 m | 25.9 m | 25.9 m | 25.9 m | SEC (XBRL)· 01 Dec 2025verified |
| Dividend per share | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | SEC (XBRL)· 01 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 52.6 m | 56.2 m | 97.7 m | 41.9 m | 66.0 m | 101.4 m | SEC (XBRL)· 01 Dec 2025verified |
| Receivables | 144.1 m | 146.3 m | 164.6 m | 189.3 m | 222.1 m | 253.6 m | SEC (XBRL)· 01 Dec 2025verified |
| Inventories | 135.3 m | 147.1 m | 162.4 m | 184.1 m | 195.5 m | 217.8 m | SEC (XBRL)· 01 Dec 2025verified |
| Current assets | 443.3 m | 466.2 m | 572.6 m | 581.1 m | 668.6 m | 688.5 m | SEC (XBRL)· 01 Dec 2025verified |
| Property, plant & equipment, net | 139.9 m | 154.3 m | 156.0 m | 155.5 m | 149.3 m | 172.5 m | SEC (XBRL)· 01 Dec 2025verified |
| Goodwill | 408.1 m | 504.9 m | 492.7 m | 493.2 m | 529.9 m | 761.9 m | SEC (XBRL)· 01 Dec 2025verified |
| Intangibles (excl. goodwill) | 346.6 m | 409.3 m | 394.5 m | 392.1 m | 403.5 m | 724.0 m | SEC (XBRL)· 01 Dec 2025verified |
| Total assets | 1.4 bn | 1.6 bn | 1.7 bn | 1.7 bn | 1.8 bn | 2.4 bn | SEC (XBRL)· 01 Dec 2025verified |
| Accounts payable | 50.5 m | 56.7 m | 78.7 m | 87.0 m | 88.9 m | 96.5 m | SEC (XBRL)· 01 Dec 2025verified |
| Short-term debt | 22.4 m | 20.0 m | 20.0 m | 20.0 m | 20.0 m | 20.0 m | SEC (XBRL)· 01 Dec 2025verified |
| Long-term debt | 40.0 m | 134.0 m | 133.0 m | 82.0 m | 102.0 m | 166.0 m | SEC (XBRL)· 01 Dec 2025verified |
| Current liabilities | 255.5 m | 275.0 m | 318.1 m | 314.7 m | 349.9 m | 508.1 m | SEC (XBRL)· 01 Dec 2025verified |
| Total liabilities | 411.2 m | 557.6 m | 606.3 m | 552.1 m | 601.3 m | 869.5 m | SEC (XBRL)· 01 Dec 2025verified |
| Equity | 959.0 m † | 1.0 bn † | 1.0 bn † | 1.1 bn † | 1.2 bn † | 1.5 bn † | SEC (XBRL)· 01 Dec 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 82.3 m | 123.1 m | 135.3 m | 76.9 m | 127.5 m | 241.9 m | SEC (XBRL)· 01 Dec 2025verified |
| Capex | 32.1 m | 26.7 m | 32.1 m | 19.7 m | 28.3 m | 36.3 m | SEC (XBRL)· 01 Dec 2025verified |
| Free cash flow | 50.2 m ≈ | 96.4 m ≈ | 103.2 m ≈ | 57.2 m ≈ | 99.3 m ≈ | 205.6 m ≈ | SEC (XBRL)· 01 Dec 2025derived |
| Investing cash flow | 141.0 m | -202.4 m | -55.9 m | -52.5 m | -104.6 m | -255.8 m | SEC (XBRL)· 01 Dec 2025verified |
| Financing cash flow | -236.2 m | 81.5 m | -32.1 m | -78.3 m | -773.0 k | 49.5 m | SEC (XBRL)· 01 Dec 2025verified |
| Dividends paid | 8.3 m | 8.3 m | 8.3 m | 8.3 m | 8.2 m | 8.3 m | SEC (XBRL)· 01 Dec 2025verified |
| Share repurchases | — | — | 19.9 m | 12.4 m | 8.0 m | — | SEC (XBRL)· 29 Nov 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 46 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 6.2 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation38
- Returns36
- Quality47
- Balance sheet66
- Growth47
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 57.30 – 187.99 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)123.03 – 187.99 (Mid 148.33)WACC 9.2% · starting FCFF 221.4 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 31.9%
- Peers: EV/Sales57.30 – 68.87 (Mid 60.59)5 companies used · median multiple 1.2x · quartiles 1.2x – 1.4xAIOT, KSCP, MTEK, REKR, TBCH
- Peers: EV/EBITDAunavailable · not enough peers
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 46/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 42.0% | 5 (on a fixed band) | 11% |
| EBIT margin · Quality | 14.0% | 82 (vs peers) | 9% |
| FCF margin · Quality | 16.1% | 64 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 8.5% | 34 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 19.2% | 73 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 0.0x | 99 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.4x | 34 (on a fixed band) | 6% |
| EV/Sales · Valuation | 4.8x | 17 (vs peers) | 17% |
| FCF yield · Valuation | 3.3% | 67 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 0.1% | 36 (on a fixed band) | 4% |
Score groups
- Balance sheet66/100 · 2/2 factors with a value
- Growth47/100 · 2/2 factors with a value
- Quality47/100 · 3/3 factors with a value
- Returns36/100 · 1/1 factors with a value
- Valuation38/100 · 2/2 factors with a value
Memo
ESCO TECHNOLOGIES INC. (ESE). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.1 bn USD in 2025; YoY growth 19.2%; net margin 24.4%; ROE 21.4%; net debt/EBITDA 0.0x.
The estimated value range is 90.17–128.43 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 104.46 USD, the price of 239.86 USD leaves a potential of -56.4% (value / price − 1) and a margin of safety of -129.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 46/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 14.0%
- Revenue growth (YoY): 19.2%
- Net debt / EBITDA: 0.0x
What contradicts it
- Gross margin: 42.0%
- EV/Sales: 4.8x
- The price is above the estimated value range
- The valuation methods diverge
Versus the vertical median
Communications Equipment, NEC (SIC 3669) · same industry (4-digit SIC) · compared with 11 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LITELumentum Holdings Inc. | 56.8 bn | — | -245.8% | -175.8% | +83.2% | +93% / +1,364% |
| ESEEsco Technologies Inc. | 6.2 bn | 19.8 | 21.4% | 24.4% | +19.2% | +9% / +139% |
| NSSCNapco Security Technologies, Inc | 1.1 bn | 25.9 | 23.4% | 21.6% | +11.4% | −21% / +4% |
| AIOTPowerfleet, Inc. | 381.2 m | — | -4.0% | -4.2% | +22.4% | −43% / +22% |
| TBCHTurtle Beach Corporation | 303.7 m | — | -3.2% | -1.1% | −14.2% | +22% / +50% |
| INSGInseego Corp. | 79.3 m | 25.3 | — | -6.4% | −13.1% | −56% / +120% |
| AMPGAmplitech Group, Inc. | 74.5 m | — | -19.4% | -33.4% | +165.0% | −25% / +56% |
| REKRRekor Systems, Inc. | 49.3 m | — | -62.8% | -43.8% | +5.3% | −80% / −87% |
| KSCPKnightscope, Inc. | 34.7 m | — | -201.3% | -217.3% | +4.9% | −91% / −98% |
| SNTSenstar Technologies Corporation | 33.7 m | 10.3 | 8.0% | 8.8% | +1.7% | −63% / +28% |
| UTSIUTStarcom Holdings Corp. | 19.2 m | — | -19.5% | -88.5% | −17.5% | −16% / −42% |
| MTEKMaris-Tech Ltd. | 2.1 m | — | -168.6% | -403.3% | −77.9% | −81% / −75% |
1- and 3-year price returns: for ESE from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 147.91 Total return -38% · Per year -38% | 261.01 Total return 9% · Per year 9% | 392.49 Total return 64% · Per year 64% |
| 3 years | 155.34 Total return -35% · Per year -13% | 307.29 Total return 29% · Per year 9% | 505.65 Total return 111% · Per year 28% |
| 5 years | 163.13 Total return -31% · Per year -7% | 361.77 Total return 52% · Per year 9% | 651.44 Total return 173% · Per year 22% |
- Exit P/E± 76.82
- Net margin± 53.78
- Annual revenue growth± 42.51
- Annual dilution± 4.52
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
ESCO Technologies Inc. designs and makes highly engineered components and systems for aviation, the US Navy and defense, plus diagnostic instruments for power grids and RF test systems. With record backlog of 1.54 billion dollars at June 30, 2026, the company raised its fiscal 2026 guidance, and the Megger acquisition announced in April 2026 could expand its utility business.
SWOT
Strengths
- Diversified portfolio across three segments, leading positions in specialized niches and a record backlog that keeps growing.
- Proprietary intellectual property in filtration, naval signature management and RF testing, backed by patents and technical know-how.
- Rising operating cash flow and the ability to fund acquisitions from internally generated cash.
Weaknesses
- High dependence on US government contracts, which can be reduced or delayed because of annual funding.
- Some products rely on a small number of suppliers, and disruptions can affect production and margins.
- The renewables segment has weakened, and integrating large acquisitions can strain management.
Opportunities
- Demand from power grids and data centers could support additional orders for Doble and the Test segment.
- The Megger acquisition, if completed, could expand utility and grid services.
- Naval and defense programs can generate long-term orders for the Maritime and Globe businesses.
Threats
- Cuts or delays in US defense funding could hit revenue in the A&D segment.
- Trade tensions and tariffs can raise material costs and limit access to some foreign markets.
- Geopolitical conflicts and export restrictions can affect deliveries and international orders.
Risks
- Government fundinghigh
Sales to the US government depend on annual Congressional funding, and delays can push back naval program deliveries 1.
- Fixed-price contractshigh
Fixed-price contracts expose the company to losses if costs exceed estimates, especially in development programs 1.
- International exposuremedium
Operations outside the US carry political, currency and regulatory risks, including for the Asian business 1.
- Supplier dependencemedium
Some products depend on sole or limited suppliers, and a disruption can delay deliveries and raise costs 1.
- Cybersecuritymedium
Cyberattacks and IT system failures could disrupt operations and damage the company's reputation 1.
Investment thesis
What would need to be true (bull case)
- Rising sales, record backlog and a raised fiscal 2026 guidance point to solid demand across several segments 23.
- The Maritime acquisition and the agreement for Megger could expand the portfolio into segments with good margins 13.
- Improving adjusted margins and rising cash flow give flexibility for investment and debt reduction 3.
What would break the thesis
- Dependence on defense budgets and government funding makes revenue sensitive to political decisions.
- Weakness in renewables and inflation pressure could compress margins in some product lines 3.
- Integrating large acquisitions and completing the Megger deal carries execution and unforeseen cost risks 3.
What to watch
- Closing of the Megger acquisition and its effect on the USG segmentQ1 2027
- Delivery against the adjusted EPS guidance for fiscal 2026Q4 2026
- Trend in A&D orders and naval program fundingnext 10-K
- NRG sales trend in light of the renewables slowdown2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
During fiscal 2025 the company sold its space subsidiary VACCO for net proceeds of about 270 million dollars, to focus on high-margin markets 1. The Maritime acquisition, completed in April 2025 for a purchase price of about 472 million dollars net of cash acquired, added signature and power management solutions for naval vessels 1. In April 2026 ESCO agreed to acquire Megger Group Limited and expects to close it in Q1 of fiscal 2027 3.
The business is global: international sales were 34% of revenue from continuing operations in fiscal 2025, and direct and indirect sales to the US Government were 23% 1. Backlog of firm orders reached 1,540.5 million dollars at June 30, 2026, compared with 1,133.6 million dollars at September 30, 2025 2. The large share of government contracts and long-term orders means results depend on defense funding and delivery timing 1.
Segments
Utility Solutions Group (USG)
The USG segment accounted for 35% of fiscal 2025 revenue and includes Doble, which provides diagnostic instruments for power grids, and NRG, a leader in wind and solar decision support tools 1. In the third quarter of fiscal 2026, Doble sales rose 17% while NRG fell 29%, reflecting weakness in renewables 3.
RF Test & Measurement (Test)
The Test segment, led by ETS-Lindgren, designs systems to measure and control RF energy for research, compliance, medical and defense uses, and represented 21% of fiscal 2025 revenue 1. In the third quarter of fiscal 2026 the segment reached a record backlog, supported by industrial shielding projects and EMI filters for US data centers 3.
Market context
Served markets include US defense and Navy, commercial aerospace, power grids, renewable energy and RF testing for telecom and medical industries. Defense demand is supported by naval programs but depends on annual funding from Congress 1. Record backlog and utility orders suggest solid near-term demand, but if government funding is delayed, delivery timing could be affected 12.
Sales growth in these markets has come from aerospace and Navy volume, pricing and acquisition contributions, not only organic growth 3. Results depend on economic conditions and supply chains, which have stayed tight for materials and components 1.
Trends
- Naval and defense demandmixed
US Navy and UK Navy programs have driven revenue growth in the A&D segment, and the Maritime integration has broadened the portfolio 13. If government funding shrinks or is delayed, projects could slow.
- Grid modernizationtailwind
Utility demand for grid testing and diagnostics is growing, which supported Doble orders in 2026 3. Budget pressure at utilities could, however, defer some investment.
- Weakening renewables marketheadwind
Demand for wind and solar products has fallen, and NRG recorded lower orders after the expiry of certain US renewables tax credits 3. This trend weighs on the USG segment.
- Inflation and tariff pressureheadwind
Inflation and trade tariffs can raise material and transport costs, and the company has flagged them as risks to margins 13. So far it has passed some increases on to customers.
Competitive position
Competition is global and varied, from small suppliers with revenue under one million dollars to large groups. In defense and aerospace, competitors include Moog, Parker Hannifin, TransDigm and Leonardo DRS 1. In utilities and RF testing, competitors include OMICRON, Megger, Vaisala, Rohde & Schwarz and TDK RF Solutions 1.
Competition centers on quality, technology, price and delivery performance, and it intensifies during economic slowdowns 1. ESCO's position is strong in specialized niches but its share is small in many other markets 1.
- Moog, Inc.MOG.A
Competes in aerospace and defense components and systems, named in the annual report.
- Parker HannifinPH
Competes in fluid control and filtration for aerospace, named in the annual report.
- TransDigmTDG
Competes in aerospace components including pneudraulic products, named in the annual report.
- Leonardo DRS
Competes in defense and naval systems, named in the annual report.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report02 Oct 2026Material agreement · Termination of a material agreement · Acquisition or disposition of assets · Creation of a direct financial obligation · Departure or appointment of officers · Financial statements and exhibits
- Quarterly report10 Aug 2026
- Current report06 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report03 Jun 2026Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report11 May 2026
- Current report07 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report16 Apr 2026Material agreement · Item 3.02 · Financial statements and exhibits
- Current report15 Apr 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report09 Feb 2026
- Current report05 Feb 2026Results of operations · Shareholder vote · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / ESCO Technologies Inc. · 01 Dec 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / ESCO Technologies Inc. · 10 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / ESCO Technologies Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.