ESCO Technologies (NYSE:ESE) Releases Earnings Results, Beats Estimates By $0.32 EPS

ESCO Technologies (NYSE:ESE) issued its quarterly earnings data on Thursday. The scientific and technical instruments company reported $1.64 EPS for the quarter, beating the consensus estimate of $1.32 by $0.32, Zacks reports. ESCO Technologies had a net margin of 25.76% and a return on equity of 12.21%. During the same quarter in the previous year, the company earned $0.92 earnings per share. The company’s quarterly revenue was up 17.3% compared to the same quarter last year. 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 Performance

NYSE:ESE traded up $4.10 during mid-day trading on Thursday, reaching $238.15. The company’s stock had a trading volume of 238,963 shares, compared to its average volume of 183,668. The company has a current ratio of 1.35, a quick ratio of 0.93 and a debt-to-equity ratio of 0.11. The stock has a market cap of $6.16 billion, a P/E ratio of 20.62 and a beta of 1.22. The firm’s fifty day moving average price is $210.38 and its two-hundred day moving average price is $207.96. ESCO Technologies has a 12-month low of $130.15 and a 12-month high of $241.38.

ESCO Technologies Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Investors of record on Friday, January 2nd were issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date was Friday, January 2nd. ESCO Technologies’s payout ratio is presently 2.77%.

Analysts Set New Price Targets

ESE has been the topic of several research reports. Zacks Research raised shares of ESCO Technologies to a “hold” rating in a research note on Tuesday, December 16th. Weiss Ratings upgraded ESCO Technologies from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Tuesday, January 27th. CJS Securities raised shares of ESCO Technologies to a “strong-buy” rating in a report on Thursday, December 11th. Finally, Wall Street Zen raised ESCO Technologies from a “hold” rating to a “buy” rating in a research report on Saturday, December 6th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Buy” and an average target price of $187.50.

Insider Transactions at ESCO Technologies

In other news, Director Robert J. Phillippy sold 3,700 shares of the business’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $222.53, for a total value of $823,361.00. Following the transaction, the director directly owned 6,519 shares in the company, valued at $1,450,673.07. The trade was a 36.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Vinod M. Khilnani sold 3,000 shares of ESCO Technologies stock in a transaction that occurred on Wednesday, November 26th. The shares were sold at an average price of $217.99, for a total value of $653,970.00. Following the sale, the director directly owned 20,468 shares in the company, valued at $4,461,819.32. This trade represents a 12.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 21,699 shares of company stock valued at $4,778,734 over the last 90 days. 0.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Nicolet Advisory Services LLC bought a new stake in ESCO Technologies during the 3rd quarter valued at $212,000. Tower Research Capital LLC TRC lifted its stake in ESCO Technologies by 318.6% in the second quarter. Tower Research Capital LLC TRC now owns 2,788 shares of the scientific and technical instruments company’s stock worth $535,000 after acquiring an additional 2,122 shares during the period. Tidal Investments LLC bought a new position in ESCO Technologies during the 2nd quarter worth about $309,000. Canada Pension Plan Investment Board increased its position in ESCO Technologies by 77.8% during the 2nd quarter. Canada Pension Plan Investment Board now owns 1,600 shares of the scientific and technical instruments company’s stock valued at $307,000 after purchasing an additional 700 shares during the period. Finally, Brown Advisory Inc. purchased a new position in ESCO Technologies during the 2nd quarter valued at about $241,000. 95.70% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting ESCO Technologies

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

• Positive Sentiment: Q1 beat and strong margins — ESCO reported adjusted EPS of $1.64 vs. street $1.31 and showed a healthy net margin (~25.8%) and ROE (~12.2%), signaling solid profitability. MarketBeat Earnings Summary
• Positive Sentiment: Raised FY 2026 EPS guidance — Management set FY 2026 EPS at $7.90–$8.15, above the consensus of $7.69, improving forward earnings visibility. GlobeNewswire Press Release
• Positive Sentiment: Raised Q2 guidance — Q2 EPS guide of $1.75–$1.85 tops the $1.69 consensus, suggesting continued near-term momentum. GlobeNewswire Press Release
• Positive Sentiment: Top-line and backlog strength — Q1 sales rose 35% to $290M and entered orders jumped ~143% to $557M, supporting future revenue visibility and the higher guidance. GlobeNewswire Press Release
• Neutral Sentiment: Revenue guidance largely in line with consensus — management’s revenue outlook (about $1.3B) essentially matches expectations, so upside is mainly from margin/earnings rather than top-line surprise. GlobeNewswire Press Release

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.