Espey Mfg. & Electronics Corp. Reports 24.8% Revenue Growth in Latest Quarter

Espey Mfg. & Electronics Corp. reported significant financial growth in its latest quarterly filing, with net sales for the three months ending March 31, 2025, reaching $10.3 million, a 24.8% increase from $8.3 million in the same period last year. For the nine-month period, sales rose by 26.7% to $34.4 million compared to $27.1 million in the prior year. The company attributed this growth primarily to increased deliveries against a higher sales backlog, particularly in its power supply and build-to-print programs. Gross profit for the quarter was $2.9 million, representing a gross margin of approximately 28.6%, up from 25.0% in the previous year.

The company’s financial position has also strengthened, with total assets increasing to $72.8 million as of March 31, 2025, compared to $56.5 million a year earlier. Cash and cash equivalents surged to $13.9 million from $4.4 million, while investment securities rose to $24.6 million from $18.9 million. Total liabilities increased to $26.5 million, primarily due to a rise in contract liabilities, which jumped to $21 million from $9 million, reflecting advance payments received on contracts. Stockholders' equity also grew to $46.3 million, up from $41.3 million.

Operationally, Espey reported a backlog of approximately $138 million as of March 31, 2025, compared to $84.2 million a year prior. This backlog includes significant contracts with major customers, indicating a strong pipeline for future revenue. The company has also seen a notable increase in new orders, totaling $75.1 million in the first nine months of fiscal 2025, compared to $27.8 million in the same period of fiscal 2024. This includes two substantial awards for electric power distribution panels for the U.S. Navy, valued at $29.5 million and $19.8 million.

Looking ahead, Espey anticipates continued revenue and earnings growth for the remainder of fiscal 2025, driven by the existing backlog and a favorable product mix. The company expects to fulfill a minimum of $9.6 million of orders from its backlog during the fiscal year ending June 30, 2025. However, management remains cautious about potential risks, including supply chain constraints and labor market challenges, which could impact delivery schedules and profitability. The company continues to monitor these factors closely while maintaining a stable workforce to support its operational needs.