ESCO Technologies Reports 34.2% Revenue Growth and $63.4M Net Earnings for Six Months Ending March 31, 2026

ESCO Technologies Inc. reported significant financial growth in its latest 10-Q filing for the six months ending March 31, 2026. The company achieved net sales of $599 million, a 34.2% increase from $446.4 million in the same period of the previous year. This growth was driven primarily by the Aerospace & Defense (A&D) segment, which saw a remarkable 71.5% increase in sales, totaling $294.1 million, largely due to increased navy and aerospace revenues. The Utility Solutions Group (USG) and RF Test & Measurement segments also contributed to the overall growth, with sales increases of 2.0% and 27.1%, respectively.

In terms of profitability, ESCO reported net earnings of $63.4 million for the first half of 2026, compared to $54.5 million in the prior year, marking a 16.5% increase. Earnings per share (EPS) rose to $2.45, up from $2.11 in the same period last year. The company’s earnings before income taxes also increased to $79.3 million, reflecting a strong operational performance despite rising costs, including a notable increase in selling, general, and administrative expenses, which rose to $124 million from $109.3 million.

Strategically, ESCO has been active in expanding its business through acquisitions. The company recently signed a definitive agreement to acquire the Megger Group Limited for approximately $2.35 billion, which will enhance its capabilities in testing and monitoring solutions for utilities and critical electric infrastructure. This acquisition is expected to be completed in the first quarter of fiscal 2027 and will be integrated into the USG segment. Additionally, the company incurred $10.2 million in costs related to the Maritime acquisition, which has contributed to increased amortization expenses.

Operationally, ESCO's backlog reached $1.47 billion as of March 31, 2026, up from $1.13 billion at the end of the previous fiscal year, indicating strong demand for its products and services. The company received new orders totaling $935.4 million in the first half of 2026, significantly higher than the $494.9 million received in the same period last year. This increase in orders reflects robust performance across all segments, particularly in A&D, which accounted for $566.1 million of the new orders.

Looking ahead, ESCO maintains a positive outlook, supported by its strong financial position and strategic initiatives. The company has approximately $440 million available under its credit facility, along with $92.3 million in cash, which positions it well to fund future growth and acquisitions. Management anticipates continued revenue growth driven by strong demand in its core markets and the successful integration of recent acquisitions.