ESCO Technologies (NYSE:ESE) Issues Quarterly Earnings Results

ESCO Technologies (NYSE:ESE) posted its quarterly earnings data on Thursday. The scientific and technical instruments company reported $1.64 EPS for the quarter, topping analysts’ consensus estimates of $1.32 by $0.32, Zacks reports. The company had revenue of $289.66 million during the quarter, compared to the consensus estimate of $289.30 million. ESCO Technologies had a net margin of 25.28% and a return on equity of 12.96%. The company’s quarterly revenue was up 17.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.92 EPS. ESCO Technologies updated its Q2 2026 guidance to 1.750-1.850 EPS and its FY 2026 guidance to 7.900-8.15 EPS.

Here are the key takeaways from ESCO Technologies’ conference call:

• ESCO booked a record > $550 million of orders in Q1, a 143% year-over-year increase (all three segments grew double digits) and said backlog is at record levels, aided by the ESCO Maritime acquisition.
• Strong quarter drove a 35% revenue increase (11% organic), adjusted EBIT margin expansion of 380 bps to 19.4%, and adjusted EPS of $1.64, enabling management to raise full-year sales and adj. EPS guidance to $7.90–$8.15.
• The Aerospace & Defense segment was a standout with > $380 million of orders (vs. $75M prior year), sales up ~76%, and adjusted EBIT margin of 26.5%, driven by higher commercial OEM build rates and sizable Navy awards (including Virginia-class Block VI and U.K. MOD contracts).
• The Test business continued its recovery with orders up ~17%, sales up ~27%, and margin expansion to 13.8%, and management raised the full-year test revenue outlook to +9–11% growth.
• Utility Solutions was mixed—Doble showed strength, but renewables (NRG) experienced near-term weakness tied to U.S. tax-credit safe-harbor timing, leaving group sales roughly flat and adjusted EBIT dollars down modestly.

ESCO Technologies Stock Up 6.2%

ESCO Technologies stock opened at $253.26 on Friday. The company’s 50-day moving average price is $211.19 and its two-hundred day moving average price is $208.38. The company has a quick ratio of 0.93, a current ratio of 1.35 and a debt-to-equity ratio of 0.11. The stock has a market cap of $6.55 billion, a P/E ratio of 21.55 and a beta of 1.22. ESCO Technologies has a twelve month low of $134.78 and a twelve month high of $262.07.

ESCO Technologies Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, April 17th. Investors of record on Thursday, April 2nd will be paid a $0.08 dividend. The ex-dividend date is Thursday, April 2nd. This represents a $0.32 dividend on an annualized basis and a yield of 0.1%. ESCO Technologies’s dividend payout ratio is 2.77%.

Analyst Upgrades and Downgrades

ESE has been the subject of a number of analyst reports. Weiss Ratings upgraded ESCO Technologies from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Tuesday, January 27th. CJS Securities raised shares of ESCO Technologies to a “strong-buy” rating in a research note on Thursday, December 11th. Zacks Research upgraded shares of ESCO Technologies to a “hold” rating in a report on Tuesday, December 16th. Finally, Wall Street Zen upgraded shares of ESCO Technologies from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, ESCO Technologies presently has an average rating of “Buy” and a consensus target price of $187.50.

Insider Transactions at ESCO Technologies

In other news, CEO Bryan H. Sayler sold 9,382 shares of the stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $220.00, for a total transaction of $2,064,040.00. Following the transaction, the chief executive officer owned 20,655 shares in the company, valued at approximately $4,544,100. This trade represents a 31.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Robert J. Phillippy sold 3,700 shares of ESCO Technologies stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $222.53, for a total value of $823,361.00. Following the sale, the director directly owned 6,519 shares of the company’s stock, valued at approximately $1,450,673.07. The trade was a 36.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 21,699 shares of company stock worth $4,778,734 over the last three months. Company insiders own 0.70% of the company’s stock.

Institutional Investors Weigh In On ESCO Technologies

Institutional investors have recently modified their holdings of the business. Vident Advisory LLC grew its stake in shares of ESCO Technologies by 3.7% in the third quarter. Vident Advisory LLC now owns 1,678 shares of the scientific and technical instruments company’s stock valued at $354,000 after acquiring an additional 60 shares in the last quarter. Smartleaf Asset Management LLC boosted its holdings in ESCO Technologies by 9.7% in the 2nd quarter. Smartleaf Asset Management LLC now owns 677 shares of the scientific and technical instruments company’s stock valued at $132,000 after purchasing an additional 60 shares during the period. Osaic Holdings Inc. grew its position in shares of ESCO Technologies by 2.6% during the 2nd quarter. Osaic Holdings Inc. now owns 4,253 shares of the scientific and technical instruments company’s stock worth $816,000 after purchasing an additional 107 shares in the last quarter. BNP Paribas Financial Markets grew its position in shares of ESCO Technologies by 5.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 3,823 shares of the scientific and technical instruments company’s stock worth $734,000 after purchasing an additional 196 shares in the last quarter. Finally, Osterweis Capital Management Inc. bought a new position in shares of ESCO Technologies during the second quarter worth approximately $39,000. Institutional investors own 95.70% of the company’s stock.

More ESCO Technologies News

Here are the key news stories impacting ESCO Technologies this week:

• Positive Sentiment: Q1 results: Adjusted EPS of $1.64 topped the $1.32 consensus and revenue of $289.66M roughly matched estimates; sales rose ~35% year‑over‑year and GAAP/adjusted EPS showed double‑digit growth. This beat and strong margins support earnings momentum. Earnings Release / MarketBeat
• Positive Sentiment: Record orders: Q1 entered orders jumped ~143% to $557M, signaling multi‑quarter revenue visibility and backlog expansion that underpins the raised outlook. GlobeNewswire: Q1 Results
• Positive Sentiment: Raised guidance: ESE lifted Q2 EPS guidance to $1.75–$1.85 (vs. ~1.69 consensus) and FY26 EPS to $7.90–$8.15 (above Street). Management’s higher targets validate the quarter’s strength and improve forward estimates. TipRanks: Raises Outlook
• Neutral Sentiment: Conference call/transcripts provide color on bookings, margins and segment trends for investors doing due diligence; multiple transcripts and the slide deck are available for review. Yahoo Finance: Call Highlights Seeking Alpha Transcript
• Neutral Sentiment: Dividend: ESE declared a quarterly dividend of $0.08 (ex‑date Apr 2), which is a small yield (~0.1%) — modest for income investors and not a primary driver of the move.

About ESCO Technologies

ESCO Technologies Inc is a diversified manufacturer of engineered products and systems designed to meet customers’ critical performance requirements in the test, measurement, control, and filtration of data, fluids, and gases. The company serves a wide range of end markets, including commercial aerospace, defense, industrial, medical, and communication network sectors. ESCO’s solutions are tailored to environments where reliability, precision and regulatory compliance are paramount.

Operating through multiple business segments, ESCO Technologies delivers test and measurement instruments such as RF and microwave components, signal distribution systems, and integrated test enclosures that support defense and aerospace programs.