ESCO Technologies Inc.
- Open
- 275.55
- Day high
- 276.56
- Day low
- 270.44
- Prev close
- 276.96
- Volume
- 237K
- Mkt cap
- $7.1B
- P/E (TTM)
- 22.5
- EPS (TTM)
- $12.14
- P/B
- 4.4
- P/S
- 5.5
- Yield
- 0.12%
- Per share
- $0.32
ESCO Technologies Inc. (ESE) is a Technology company listed on NYSE. The stock is up 35% over the past year. Drillr has 1 published research article covering ESE.
ESCO Technologies Inc. (ESE) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ESE earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $2.12 | $2.20 | +3.8% | $339M | -0.7% |
| May 7, 2026 | $1.90 | $1.91 | +0.5% | $309M | +0.5% |
| Feb 5, 2026 | $1.32 | $1.64 | +24.2% | $290M | -11.1% |
| Nov 20, 2025 | $2.13 | $2.32 | +8.9% | $353M | +4.0% |
| Aug 7, 2025 | $2.13 | $1.60 | -24.9% | $296M | -3.3% |
| Feb 6, 2025 | $0.73 | $1.07 | +46.6% | $247M | +2.8% |
| Nov 14, 2024 | $1.44 | $1.46 | +1.4% | $299M | +0.4% |
| May 9, 2024 | $0.87 | $0.94 | +8.0% | $249M | +2.6% |
| Feb 8, 2024 | $0.65 | $0.62 | -4.6% | $218M | -1.4% |
| Nov 16, 2023 | $1.22 | $1.25 | +2.5% | $273M | +2.4% |
| Feb 8, 2023 | $0.50 | $0.60 | +20.0% | $206M | +5.1% |
| Nov 17, 2022 | $1.16 | $1.21 | +4.3% | $256M | +9.5% |
ESE insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 20, 2026 | KHILNANI VINOD Mdirector | Grant | 0 | — |
| Jul 20, 2026 | PHILLIPPY ROBERT Jdirector | Grant | 5 | — |
| Jul 20, 2026 | Campbell David Adirector | Grant | 1 | — |
| Jul 20, 2026 | Dewar Patrick Mdirector | Grant | 6 | — |
| Jul 20, 2026 | Conner Penelope Mdirector | Grant | 0 | — |
| Jul 20, 2026 | Hess Janice L.director | Grant | 0 | — |
| Jul 20, 2026 | Valdez Gloria Ldirector | Grant | 2 | — |
| May 4, 2026 | Valdez Gloria Ldirector | Option | 197 | $326.96 |
| Apr 20, 2026 | Hess Janice L.director | Grant | 0 | — |
| Apr 20, 2026 | Conner Penelope Mdirector | Grant | 0 | — |
| Apr 20, 2026 | Valdez Gloria Ldirector | Grant | 2 | — |
| Apr 20, 2026 | KHILNANI VINOD Mdirector | Grant | 0 | — |
| Apr 20, 2026 | Campbell David Adirector | Grant | 1 | — |
| Apr 20, 2026 | PHILLIPPY ROBERT Jdirector | Grant | 5 | — |
| Apr 20, 2026 | Dewar Patrick Mdirector | Grant | 6 | — |
Source: ESE SEC Form 4 filings, latest Jul 20, 2026. For informational purposes only — not investment advice.
See the full ESE insider & 13F page →ESCO Technologies Inc. company profile
Overview
ESCO Technologies Inc. (NYSE:ESE) is a diversified industrial technology company founded in 1990 and headquartered in St. Louis, Missouri. The company has evolved from its initial public offering in 1990 into a specialized manufacturer of engineered products and systems serving critical infrastructure markets worldwide. ESCO operates through three primary business segments: Aerospace & Defense, Utility Solutions Group, and RF Shielding and Test. The company has demonstrated consistent growth over its three-decade history, recently achieving the milestone of exceeding $1 billion in annual sales for the first time in fiscal 2024.
Business
ESCO Technologies operates in the specialized industrial equipment sector, providing mission-critical engineered solutions across three distinct business segments that collectively generate over $1 billion in annual revenue. The Aerospace & Defense segment represents approximately 45-50% of total revenue and manufactures highly specialized filtration systems and precision components for both commercial and military aviation applications. This division produces hydraulic filter elements and fluid control devices used in commercial aircraft, custom-designed filters for military aircraft and submarines, and micro-propulsion device filters for satellites. The segment also manufactures elastomeric-based signature reduction solutions for U.S. naval vessels and precision-machined components for critical aircraft systems including landing gear, rotor heads, and flight controls. The aerospace industry relies on these products for safety-critical applications where failure is not an option. The Utility Solutions Group accounts for roughly 30-35% of revenue and provides diagnostic testing equipment and decision support tools for electrical power infrastructure. This segment operates through two main brands: Doble, which manufactures diagnostic testing solutions that enable electric utility operators to assess the integrity of high-voltage power delivery equipment, and NRG Systems, which provides monitoring and measurement solutions for renewable energy projects, particularly wind and solar installations. These products help utilities maintain grid reliability and optimize renewable energy generation, becoming increasingly important as electrical grids modernize and incorporate more renewable sources. The RF Shielding and Test segment generates approximately 20-25% of revenue and designs specialized testing facilities and measurement equipment for electromagnetic compatibility and radio frequency applications. This division creates RF test chambers, secure communication facilities, acoustic test enclosures, and broadcast studios. The segment also produces RF measurement systems, antennas, test accessories, and proprietary software used by manufacturers to ensure their electronic products meet regulatory requirements and performance standards. These solutions are essential for companies developing wireless devices, automotive electronics, and other products that must comply with electromagnetic interference regulations.
Revenue model
ESCO Technologies generates revenue primarily through direct product sales to industrial customers, with some recurring service revenue from calibration, training, and maintenance contracts. The company's business model centers on manufacturing highly specialized, engineered-to-order products that command premium pricing due to their critical nature and technical complexity. The Aerospace & Defense segment sells to aircraft manufacturers like Boeing and Airbus, defense contractors, and directly to military branches, particularly the U.S. Navy. Revenue comes from both initial equipment sales and ongoing spare parts, with long product lifecycles creating sustained aftermarket opportunities. The segment benefits from multi-year contracts and programs that provide revenue visibility, though it faces margin pressure from firm fixed-price development contracts. The Utility Solutions Group serves electric utilities, renewable energy developers, and grid operators worldwide. Doble's diagnostic equipment generates revenue through equipment sales and ongoing service contracts, while NRG Systems sells monitoring equipment and data services to wind and solar project developers. This segment benefits from utilities' ongoing capital investment in grid modernization and the global transition to renewable energy. The RF Shielding and Test segment sells to electronics manufacturers, automotive companies, telecommunications firms, and government agencies that require electromagnetic compatibility testing. Revenue comes from custom-engineered test facilities, standardized test equipment, and ongoing calibration services. Factors that positively impact margins include the specialized nature of ESCO's products, which face limited direct competition and allow for premium pricing. Long-term relationships with customers, regulatory requirements that mandate testing and maintenance, and the critical nature of the applications create relatively inelastic demand. The company's margins benefit from operational leverage as fixed costs are spread across higher volumes. Margin pressures arise from commodity material costs, supply chain disruptions, labor inflation, and competitive pricing on larger contracts. The aerospace segment particularly faces challenges from firm fixed-price development contracts where cost overruns cannot be passed to customers. Currency fluctuations affect international operations, and economic downturns can delay customer capital expenditure decisions, particularly in the test segment.
Competitive moat
ESCO Technologies possesses a moderate but meaningful competitive moat built primarily on specialized technical expertise, regulatory requirements, and customer switching costs. The company's strongest moat exists in its Aerospace & Defense segment, where products must meet stringent safety and performance certifications that create significant barriers to entry. Once qualified with aircraft manufacturers or military programs, ESCO's components become integral to platform designs, making customer switching extremely costly and time-consuming due to re-certification requirements. The Utility Solutions Group benefits from established relationships with electric utilities and specialized knowledge of power grid diagnostics that takes years to develop. Doble's diagnostic equipment requires significant customer training and integration with utility maintenance procedures, creating switching costs. However, this moat is somewhat weaker as utilities increasingly evaluate multiple vendors and price competition exists. The RF Shielding and Test segment has the narrowest moat, competing primarily on technical capabilities and customer relationships rather than structural advantages. While ESCO's expertise in electromagnetic testing is valuable, competitors can more easily replicate these capabilities, and customers regularly evaluate alternative suppliers. The company's overall moat is strengthened by its diversified portfolio across three segments, reducing dependence on any single market. ESCO's engineering capabilities and manufacturing expertise represent accumulated intellectual capital that competitors cannot easily replicate. However, the company faces potential disruption from larger industrial conglomerates that could acquire competitors or develop competing technologies, and from technological changes that could make current products obsolete. The moat is moderate rather than strong because ESCO operates in specialized niches rather than controlling dominant market positions, and customer concentration in some segments creates vulnerability if key relationships are lost. The company's relatively small size compared to potential competitors also limits its ability to invest in research and development at the scale of larger industrial companies.
Risks & safety
ESCO Technologies demonstrates a solid margin of safety with strong financial fundamentals, though valuation metrics suggest limited upside at current levels. • **Financial Strength**: The company maintains a strong balance sheet with minimal debt (debt-to-equity ratio of 0.10), $57 million in cash, and a current ratio of 2.05, indicating excellent liquidity and low solvency risk. • **Cash Generation**: Strong operating cash flow of $127 million in fiscal 2024 and free cash flow of $91 million demonstrate the company's ability to generate cash consistently, supporting dividend payments and growth investments. • **Valuation Metrics**: Current trading multiples appear elevated with P/E ratio of 33.1x and EV/EBITDA of 25.8x, suggesting limited margin of safety from a valuation perspective. The Graham number of $36.56 indicates the stock may be overvalued relative to conservative value metrics. • **Operational Stability**: Record backlog of $879 million provides revenue visibility, and diversified end markets reduce concentration risk, though the company faces some margin pressure from supply chain costs and fixed-price contracts. • **Growth Trajectory**: Management guidance for 6-8% sales growth and 12-17% EPS growth in fiscal 2025 suggests continued expansion, but current valuations appear to fully reflect this growth potential.
Recent development
Over the past several years, ESCO Technologies has pursued a strategic transformation focused on portfolio optimization and market expansion. The company completed its first billion-dollar revenue year in fiscal 2024 and has been actively reshaping its business portfolio through both acquisitions and divestitures. Key strategic initiatives include the pending acquisition of Signature Management & Power (SM&P), a UK-based company that provides signature reduction solutions for naval vessels. This acquisition, expected to close in early fiscal 2025, will strengthen ESCO's position in the defense market and expand its international presence. The company has also acquired MPE Limited to enhance its test segment capabilities and completed the acquisition of Maritime Solutions, which was rebranded as ESCO Maritime Solutions. Simultaneously, ESCO has been conducting a strategic review of its VACCO Space business, which has faced challenges with firm fixed-price development contracts. Management is considering the potential sale of the entire VACCO business unit, which would be accretive to Aerospace & Defense segment margins if completed. This reflects a broader strategy of focusing on higher-margin, more predictable revenue streams. The company has strengthened its board of directors with the addition of two utility industry executives, reflecting the growing importance of its Utility Solutions Group. This segment has benefited from increased utility infrastructure investment driven by grid modernization, renewable energy integration, and anticipated electricity demand growth from data centers, electric vehicles, and industrial reshoring. In the Test segment, ESCO has seen a recovery from previous weakness in Chinese markets, with broad-based improvement across U.S., European, and Asian markets. The company has invested in expanding its RF testing capabilities and has seen strong order growth as electronics manufacturers increase compliance testing requirements.
ESE company profile · for informational purposes only — not investment advice.
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