ESE · ESCO Technologies Inc.

ESCO Technologies delivered a strong second quarter for fiscal 2026, with revenue increasing 33.5% to $309 million, driven by the Maritime acquisition (contributing $48 million) and organic growth of 12.8%. GAAP EPS from continuing operations rose 26.5% to $1.29, while adjusted EPS surged 63.2% to $1.91, reflecting margin expansion and operational leverage. Entered orders grew 42.4% to $378 million, resulting in a record backlog of $1.5 billion, indicating robust future demand. The Aerospace & Defense segment led with sales up 67.7% to $150.3 million, driven by Navy, commercial aerospace, and military aerospace strength, and achieved a record backlog of $1.1 billion. Utility Solutions Group sales increased 3.0% to $93.5 million, with Doble growing 11.3% offset by NRG declines. RF Test & Measurement sales rose 27.5% to $65.5 million, benefiting from government-funded data center projects. Management raised full-year adjusted EPS guidance to $8.00-$8.25, up from the prior $7.90-$8.15, while maintaining revenue guidance of $1.29-$1.33 billion. The company also announced the planned acquisition of Megger Group Limited, expected to close in Q1 fiscal 2027, which will enhance the Utility Solutions Group. A quarterly dividend of $0.08 per share was declared. Overall, the results highlight strong execution, broad-based demand, and positive momentum across key end markets.