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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Esco Technologies (ESE - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

Esco Technologies is one of 248 companies in the Business Services group. The Business Services group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Esco Technologies is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ESE's full-year earnings has moved 2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ESE has gained about 36.6% so far this year. Meanwhile, the Business Services sector has returned an average of -8.3% on a year-to-date basis. This means that Esco Technologies is performing better than its sector in terms of year-to-date returns.

Another Business Services stock, which has outperformed the sector so far this year, is FirstCash Holdings (FCFS - Free Report) . The stock has returned 38.1% year-to-date.

For FirstCash Holdings, the consensus EPS estimate for the current year has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Esco Technologies belongs to the Technology Services industry, a group that includes 122 individual stocks and currently sits at #159 in the Zacks Industry Rank. On average, stocks in this group have lost 12.8% this year, meaning that ESE is performing better in terms of year-to-date returns.

In contrast, FirstCash Holdings falls under the Financial Transaction Services industry. Currently, this industry has 37 stocks and is ranked #158. Since the beginning of the year, the industry has moved -3.6%.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Esco Technologies and FirstCash Holdings as they could maintain their solid performance.

Deutsche Bank AG bought a new stake in shares of ESCO Technologies Inc. (NYSE:ESE – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 29,056 shares of the scientific and technical instruments company’s stock, valued at approximately $10,171,000. Deutsche Bank AG owned 0.11% of ESCO Technologies as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Quarry LP increased its position in shares of ESCO Technologies by 842.9% during the fourth quarter. Quarry LP now owns 132 shares of the scientific and technical instruments company’s stock worth $26,000 after buying an additional 118 shares during the period. SBI Securities Co. Ltd. lifted its holdings in ESCO Technologies by 3,140.0% in the fourth quarter. SBI Securities Co. Ltd. now owns 162 shares of the scientific and technical instruments company’s stock valued at $32,000 after buying an additional 157 shares during the period. State of Wyoming bought a new stake in ESCO Technologies during the first quarter valued at $38,000. Aster Capital Management DIFC Ltd acquired a new stake in ESCO Technologies during the 4th quarter worth about $39,000. Finally, Osterweis Capital Management Inc. bought a new position in shares of ESCO Technologies in the 2nd quarter worth about $39,000. Institutional investors and hedge funds own 95.70% of the company’s stock.

ESCO Technologies Stock Performance Shares of ESE opened at $287.21 on Monday. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.38 and a quick ratio of 0.94. The stock has a 50-day moving average of $323.86 and a 200-day moving average of $301.71. The company has a market cap of $7.44 billion, a PE ratio of 23.66, a P/E/G ratio of 1.65 and a beta of 1.11. ESCO Technologies Inc. has a one year low of $191.80 and a one year high of $362.15.

ESCO Technologies (NYSE:ESE – Get Free Report) last issued its earnings results on Thursday, August 6th. The scientific and technical instruments company reported $2.20 EPS for the quarter, beating analysts’ consensus estimates of $2.12 by $0.08. The business had revenue of $339.03 million during the quarter, compared to analyst estimates of $341.40 million. ESCO Technologies had a return on equity of 13.28% and a net margin of 24.39%.The firm’s revenue was up 14.4% compared to the same quarter last year. During the same period in the previous year, the company posted $1.60 EPS. ESCO Technologies has set its FY 2026 guidance at 8.300-8.400 EPS and its Q4 2026 guidance at 2.550-2.650 EPS. On average, equities research analysts predict that ESCO Technologies Inc. will post 8.34 EPS for the current fiscal year. ESCO Technologies Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date of this dividend is Thursday, October 1st. ESCO Technologies’s dividend payout ratio is presently 2.64%.

Analyst Ratings Changes A number of brokerages have recently issued reports on ESE. JPMorgan Chase & Co. assumed coverage on ESCO Technologies in a research note on Monday, June 15th. They issued an “overweight” rating and a $420.00 price objective on the stock. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $413.00 price target on shares of ESCO Technologies in a research note on Monday, August 10th. Weiss Ratings downgraded shares of ESCO Technologies from a “buy (a)” rating to a “buy (a-)” rating in a research report on Tuesday, August 11th. Finally, Wall Street Zen lowered shares of ESCO Technologies from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, ESCO Technologies has a consensus rating of “Buy” and an average price target of $416.50.

Read Our Latest Analysis on ESE

ESCO Technologies Company Profile (Free Report)

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.

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Posted by Defense World Staff on Aug 8th, 2026

Amundi grew its holdings in shares of ESCO Technologies Inc. (NYSE:ESE – Free Report) by 109.7% during the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 5,837 shares of the scientific and technical instruments company’s stock after buying an additional 3,054 shares during the quarter. Amundi’s holdings in ESCO Technologies were worth $1,642,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Horizon Investments LLC boosted its stake in shares of ESCO Technologies by 59.4% during the fourth quarter. Horizon Investments LLC now owns 11,821 shares of the scientific and technical instruments company’s stock valued at $2,309,000 after purchasing an additional 4,406 shares in the last quarter. UBS Group AG lifted its holdings in ESCO Technologies by 14.6% during the fourth quarter. UBS Group AG now owns 28,760 shares of the scientific and technical instruments company’s stock worth $5,619,000 after buying an additional 3,674 shares during the period. Principal Financial Group Inc. lifted its holdings in ESCO Technologies by 3.1% during the first quarter. Principal Financial Group Inc. now owns 149,233 shares of the scientific and technical instruments company’s stock worth $41,990,000 after buying an additional 4,527 shares during the period. Fifth Third Bancorp boosted its position in ESCO Technologies by 8,434.4% during the 1st quarter. Fifth Third Bancorp now owns 63,496 shares of the scientific and technical instruments company’s stock valued at $17,866,000 after acquiring an additional 62,752 shares in the last quarter. Finally, Capital World Investors boosted its position in ESCO Technologies by 103.4% during the 4th quarter. Capital World Investors now owns 902,956 shares of the scientific and technical instruments company’s stock valued at $176,429,000 after acquiring an additional 458,980 shares in the last quarter. 95.70% of the stock is currently owned by hedge funds and other institutional investors.

ESCO Technologies Price Performance Shares of ESCO Technologies stock opened at $305.38 on Friday. The stock has a market capitalization of $7.91 billion, a P/E ratio of 25.15, a PEG ratio of 2.01 and a beta of 1.10. The business has a 50 day simple moving average of $324.18 and a two-hundred day simple moving average of $296.02. ESCO Technologies Inc. has a 12 month low of $174.92 and a 12 month high of $362.15. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.45 and a quick ratio of 0.98.

ESCO Technologies (NYSE:ESE – Get Free Report) last announced its earnings results on Thursday, August 6th. The scientific and technical instruments company reported $2.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.12 by $0.08. ESCO Technologies had a net margin of 24.39% and a return on equity of 13.40%. The company had revenue of $339.03 million for the quarter, compared to analysts’ expectations of $341.40 million. During the same quarter in the previous year, the company posted $1.60 EPS. The firm’s quarterly revenue was up 14.4% on a year-over-year basis. ESCO Technologies has set its FY 2026 guidance at 8.300-8.400 EPS and its Q4 2026 guidance at 2.550-2.650 EPS. As a group, analysts predict that ESCO Technologies Inc. will post 8.2 EPS for the current fiscal year.

ESCO Technologies Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be paid a dividend of $0.08 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.32 dividend on an annualized basis and a yield of 0.1%. ESCO Technologies’s payout ratio is 2.69%.

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

Positive Sentiment: ESCO reported fiscal Q3 2026 adjusted earnings of $2.20 per share, exceeding the $2.12 consensus estimate and rising from $1.60 a year earlier. Revenue increased 14.4% year over year to $339.03 million. ESCO Technologies Q3 earnings report Positive Sentiment: Management raised fiscal 2026 EPS guidance to $8.30–$8.40, above the analyst consensus of $8.19. The company maintained revenue guidance of approximately $1.3 billion, indicating continued expectations for solid full-year growth. ESCO Technologies raises guidance Positive Sentiment: ESCO declared a quarterly dividend of $0.08 per share, payable October 15 to shareholders of record October 1. The payout provides a modest shareholder return, although the annualized yield is only about 0.1%. Neutral Sentiment: Fourth-quarter EPS guidance of $2.55–$2.65 brackets the $2.55 consensus estimate, offering little immediate indication of a major forecast revision. ESCO third-quarter results Negative Sentiment: Quarterly revenue of $339.03 million fell short of the $341.40 million analyst estimate. The modest miss may be weighing on the stock even though earnings exceeded expectations and full-year EPS guidance was raised. Analyst Upgrades and Downgrades Several analysts have commented on the stock. Weiss Ratings raised shares of ESCO Technologies from a “buy (a-)” rating to a “buy (a)” rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. started coverage on shares of ESCO Technologies in a research report on Monday, June 15th. They issued an “overweight” rating and a $420.00 price objective on the stock. Wall Street Zen lowered shares of ESCO Technologies from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $400.00 target price on shares of ESCO Technologies in a research report on Friday, April 17th. 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 MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $410.00.

Check Out Our Latest Stock Analysis on ESE

ESCO Technologies Profile (Free Report)

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.

Featured Stories Five stocks we like better than ESCO Technologies Datadog’s Drop Says More About Expectations Than Earnings D-Wave’s Quantum Breakthrough Couldn’t Save QBTS From a Sell-Off Cloudflare’s Beat-and-Raise Quarter Puts Its AI Edge Story in Focus Solventum Nears Inflection Point As It Begins to Unlock Value Want to see what other hedge funds are holding ESE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ESCO Technologies Inc. (NYSE:ESE – Free Report).

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ESCO Technologies Inc. (ESE) Q3 2026 Earnings Call Transcript

St. Louis, Aug. 06, 2026 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the third quarter ended June 30, 2026 (Q3 2026).    

Operating Highlights

Q3 2026 Sales increased $43 million (14 percent) to $339 million compared to $296 million in Q3 2025. Q3 2026 organic sales increased $20 million (8 percent), and Maritime contributed $23 million of revenue growth in the quarter.   Q3 2026 GAAP EPS from Continuing Operations increased 31 percent to $1.26 per share compared to $0.96 per share in Q3 2025. Q3 2026 Adjusted EPS from Continuing Operations increased 38 percent to $2.20 per share compared to $1.60 per share in Q3 2025.Q3 2026 entered orders were $410 million, with a book-to-bill ratio of 1.21. This resulted in record backlog at June 30 of $1.54 billion. Q3 2026 orders were lower than the prior year due to $364 million of acquired backlog related to the acquisition of Maritime in Q3 2025.Net cash provided by operating activities from Continuing Operations was $193 million YTD, an increase of $105 million compared to the prior year period. Bryan Sayler, Chief Executive Officer and President, commented, “Q3 was another strong quarter, highlighted by 14 percent revenue growth, 90 basis points of Adjusted EBIT margin expansion, and a 38 percent increase in Adjusted EPS.

“Year to date, we have delivered double-digit organic sales growth across our aerospace, Navy, Test, and Doble businesses. This broad-based strength underscores the long-term growth dynamics across our end markets. At the same time, our backlog has increased by over $400 million year-to-date driven by momentum across our business platforms. This combination of durable growth drivers, leading market positions, and record backlog, gives us confidence in our ability to continue delivering above-market growth and we are pleased to again raise our full-year FY 2026 guidance.”

Segment Performance

Aerospace & Defense (A&D)

Q3 2026 sales increased $31.9 million (23 percent) to $168.2 million from $136.3 million in Q3 2025. Organic sales increased $9.2 million (9 percent) and Maritime added $22.7 million of revenue growth in the quarter. Quarterly sales growth was led by strong performance in commercial aerospace and Navy.Q3 2026 EBIT increased $13.8 million to $50.4 million from $36.6 million in Q3 2025. Adjusted EBIT increased $11.2 million in Q3 2026 to $50.5 million (30.0 percent margin) from $39.3 million (28.8 percent margin) in Q3 2025. The 28 percent increase in Adjusted EBIT was driven by leverage on higher volume and price increases, partially offset by inflationary pressures and unfavorable mix.Q3 2026 Entered Orders decreased $386.7 million (66 percent) to $195.7 million, as Q3 2025 contained $364.2 million in acquired backlog related to the Maritime acquisition along with $67 million in Block V.2/VI Virginia Class and $15 million of Columbia Class orders.   Book-to-bill in the quarter was 1.16 driven by higher commercial and military aerospace OEM and aftermarket orders, resulting in record backlog of $1.1 billion. Utility Solutions Group (USG)

Q3 2026 sales increased $7.6 million (8 percent) to $100.0 million from $92.4 million in Q3 2025. Doble sales increased by $12.9 million (17 percent) while NRG sales decreased by $5.3 million (29 percent).   Sales growth in the quarter was driven by higher protection testing, offline test equipment, and services revenue at Doble, partially offset by lower renewables revenue at NRG.Q3 2026 EBIT increased $0.5 million to $22.0 million from $21.5 million in Q3 2025. Adjusted EBIT increased $0.5 million in Q3 2026 to $22.3 million (22.3 percent margin) from $21.8 million (23.6 percent margin) in Q3 2025. The increase in Adjusted EBIT was driven by leverage on higher volume at Doble and price increases, mostly offset by EBIT reductions at NRG due to lower sales volumes.Q3 2026 entered orders increased $21.4 million (20 percent) to $126.9 million (book-to-bill of 1.27), resulting in backlog of $189.4 million. Doble orders increased $26.4 million (30 percent) to $113.3 million as the business continues to experience broad based increases in demand from utility customers.   NRG orders decreased $5.0 million (27 percent) to $13.5 million, related to the expiration of U.S. renewables tax credits. RF Test & Measurement (Test)

Q3 2026 sales increased $3.2 million (5 percent) to $70.9 million from $67.7 million in Q3 2025. Sales growth in the quarter was primarily driven by higher U.S Test & Measurement (EMC), and medical and industrial shielding.Q3 2026 EBIT increased $0.2 million to $10.9 million from $10.7 million in Q3 2025.   Q3 2026 Adjusted EBIT increased $0.9 million to $11.6 million (16.4 percent margin) from $10.7 million (15.9 percent margin) in Q3 2025. The 8 percent increase in Adjusted EBIT was driven by leverage on higher volume and price increases, partially offset by inflationary pressures.Q3 2026 entered orders increased $25.8 million (42 percent) to $87.0 million (book-to-bill of 1.23), resulting in record backlog of $248.6 million.   Orders strength in the quarter was driven by industrial shielding projects and electromagnetic interference (EMI) filters for U.S. data centers.   Megger Acquisition
As announced on April 15, 2026, ESCO has agreed to acquire Megger Group Limited. Megger will become part of ESCO’s Utility Solutions Group, creating a business of substantial scale and expanding our capabilities as a valued partner to utilities worldwide. All filings for regulatory approval are underway and we continue to anticipate closing on the transaction in Q1 of fiscal 2027.

Business Outlook – FY 2026
FY 2026 Sales and Adjusted EPS Guidance Update:

Raising the lower end of FY 2026 Sales guidance and now expect Sales to be in the range of $1.30 to $1.33 billion (19 to 21 percent growth over the prior year).Raising full year Adjusted EPS guidance to a range of $8.30 - $8.40 per share (38 to 39 percent growth), which reflects a midpoint increase of $0.70 per share from our initial November guidance ($7.50 - $7.80) and $0.22 per share from our more recent May guidance update of ($8.00 - $8.25).Q4’26 Adjusted EPS is expected to be in the range of $2.55 - $2.65 per share (10 to 14 percent growth compared to Q4’25 Adjusted EPS). Dividend Payment
The next quarterly cash dividend of $0.08 per share will be paid on October 15, 2026 to stockholders of record on October 1, 2026.  

Conference Call
The Company will host a conference call today, August 6, at 4:00 p.m. Central Time, to discuss the Company’s Q3 2026 results. A live audio webcast and an accompanying slide presentation will be available in the Investor Center of ESCO’s website. Participants may also access the webcast using this registration link. For those unable to participate, a webcast replay will be available after the call in the Investor Center of ESCO’s website.

Forward-Looking Statements
Statements in this press release regarding Management’s intentions, expectations and guidance for fiscal 2026, including restructuring and cost reduction actions, sales, orders, revenues, margin, earnings, Adjusted EPS, acquisition related amortization, and any other statements which are not strictly historical, are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. securities laws.

Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and the following: the impacts of climate change and related regulation of greenhouse gases; the impacts of labor disputes, civil disorder, wars including the conflicts involving Iran and Lebanon, elections, political changes, tariffs and trade disputes, terrorist activities, cyberattacks or natural disasters on the Company’s operations and those of the Company’s customers and suppliers; disruptions in manufacturing or delivery arrangements due to shortages or unavailability of materials or components; restrictions or closures of critical supply routes such as the Strait of Hormuz; other supply chain disruptions; inability to access work sites; the timing and content of future contract awards or customer orders; the timely appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties or data breaches; the availability of acquisitions; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; material changes in the costs and availability of certain raw materials; material changes in the cost of credit; changes in laws and regulations including but not limited to changes in accounting standards and taxation; changes in interest, inflation and employment rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration and performance of acquired businesses.

Non-GAAP Financial Measures
The financial measures EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are presented in this press release. The Company defines “EBIT” as earnings before interest and taxes, “EBITDA” as earnings before interest, taxes, depreciation and amortization, “Adjusted EBIT” and “Adjusted EBITDA” as excluding the net impact of the items described in the attached Reconciliation of Non-GAAP Financial Measures, and “Adjusted EPS” as GAAP earnings per share excluding the net impact of the items described and reconciled in the attached Reconciliation of Non-GAAP Financial Measures.

EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes EBIT, Adjusted EBIT, EBITDA, and Adjusted EBITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation, and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

About ESCO
ESCO Technologies is a global provider of highly engineered products and solutions serving diverse end-markets. It manufactures filtration and fluid control products, advanced composites, as well as signature and power management solutions for aviation, Navy, and industrial customers. ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems; and provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Headquartered in St. Louis, Missouri, ESCO and its subsidiaries have offices and manufacturing facilities worldwide. For more information on ESCO and its subsidiaries, visit ESCO’s website at www.escotechnologies.com.
  

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per share amounts)         Three Months
Ended
June 30, 2026 Three Months
Ended
June 30, 2025          Net Sales $339,027 296,344 Cost and Expenses:      Cost of sales 197,508 174,350  Selling, general and administrative expenses 71,002 62,042  Amortization of intangible assets 20,342 16,753  Interest expense 8,713 7,921  Other expenses (income), net 508 2,209   Total costs and expenses 298,073 263,275          Earnings before income taxes 40,954 33,069 Income tax expense 8,219 8,314            Earnings from continuing operations 32,735 24,755          Earnings from discontinued operations, net of tax expense      of $0 and $599, respectively - 1,310            Net earnings$32,735 26,065             Diluted - GAAP        Continuing operations$1.26 0.96    Discontinued operations 0.00 0.05    Net earnings$1.26 1.01             Diluted - As Adjusted Basis        Continuing Operations$2.20(1)1.60(2)            Diluted average common shares O/S: 25,980 25,918          (1)Q3 2026 Adjusted EPS from continuing operations excludes $0.94 per share of after-tax charges consisting of: $0.03 of Test & USG segment restructuring charges, $0.20 of debt financing and $0.19 of acquisition costs at Corporate related to the pending Megger acquisition that was announced in April 2026, and $0.52 of acquisition related amortization.         (2)Q3 2025 Adjusted EPS from continuing operations excludes $0.64 per share of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.01 of restructuring charges (primarily severance) within the USG segment, and $0.40 of acquisition related amortization. ESCO TECHNOLOGIES INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per share amounts)         Nine Months
Ended
June 30, 2026 Nine Months
Ended
June 30, 2025          Net Sales$938,027 742,714 Cost and Expenses:      Cost of sales 545,274 431,068  Selling, general and administrative expenses 195,039 171,305  Amortization of intangible assets 61,086 32,735  Interest expense 13,992 12,373  Other expenses (income), net 2,340 1,947   Total costs and expenses 817,731 649,428          Earnings before income taxes 120,296 93,286 Income tax expense 25,314 21,841            Earnings from continuing operations 94,982 71,445          Earnings from discontinued operations, net of tax expense     of $363 and $3,006, respectively 1,177 9,126            Net earnings$96,159 80,571             Diluted - GAAP        Continuing operations$3.66 2.76    Discontinued operations 0.05 0.35    Net earnings$3.71 3.11             Diluted - As Adjusted Basis        Continuing Operations$5.75(1)3.71(2)            Diluted average common shares O/S: 25,932 25,876          (1)YTD Q3 2026 Adjusted EPS from continuing operations excludes $2.09 per share of after-tax charges consisting primarily of: $0.09 of restructuring charges within Test, USG & A&D segments, $0.20 of debt financing and $0.23 of acquisition costs at Corporate related to the pending Megger acquisition that was announced in April 2026, and $1.57 of acquisition related amortization.         (2)YTD Q3 2025 Adjusted EPS from continuing operations excludes $0.95 per share of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.02 of restructuring charges within the Test and USG segments, and $0.70 of acquisition related amortization. ESCO TECHNOLOGIES INC. AND SUBSIDIARIESCondensed Business Segment Information (Unaudited) - Continuing Operations basis(Dollars in thousands)       GAAP As Adjusted     Q3 2026 Q3 2025 Q3 2026 Q3 2025 Net Sales           Aerospace & Defense$168,202  136,324  168,202  136,324   USG 99,963  92,357  99,963  92,357   Test 70,862  67,663  70,862  67,663    Totals$339,027  296,344  339,027  296,344              EBIT            Aerospace & Defense$50,418  36,577  50,455  39,319   USG 21,983  21,540  22,282  21,789   Test 10,882  10,732  11,617  10,732   Corporate (33,616) (27,859) (9,678) (9,184)   Consolidated EBIT 49,667  40,990  74,676  62,656    Less: Interest expense (8,713) (7,921) (1,850) (7,921)   Less: Income tax expense (8,219) (8,314) (15,548) (13,297)   Net earnings$32,735  24,755  57,278  41,438                 Note 1: Adjusted net earnings of $57.3 million in Q3 2026 exclude $24.5 million (or $0.94 per share) of after-tax charges consisting of: $0.03 of Test & USG segment restructuring charges, $0.20 of debt financing and $0.19 of acquisition costs at Corporate related to the pending Megger acquisition and $0.52 of acquisition related amortization.            Note 2: Adjusted net earnings of $41.4 million in Q3 2025 exclude $16.6 million (or $0.64 per share) of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.01 of restructuring charges (primarily severance) within the USG segment, and $0.40 of acquisition related amortization.            EBITDA Reconciliation to Net earnings:    Q3 2026 - Q3 2025 -     Q3 2026 Q3 2025 As Adj As Adj Consolidated EBITDA$76,410  63,350  83,755  71,545  Less: Depr & Amort (26,743) (22,360) (9,079) (8,889) Consolidated EBIT 49,667  40,990  74,676  62,656  Less: Interest expense (8,713) (7,921) (1,850) (7,921) Less: Income tax expense (8,219) (8,314) (15,548) (13,297) Net earnings$32,735  24,755  57,278  41,438               ESCO TECHNOLOGIES INC. AND SUBSIDIARIESCondensed Business Segment Information (Unaudited) - Continuing Operations basis(Dollars in thousands)       GAAP As Adjusted     YTD YTD YTD YTD     Q3 2026 Q3 2025 Q3 2026 Q3 2025 Net Sales           Aerospace & Defense$462,341  307,819  462,341  307,819   USG 280,976  269,784  280,976  269,784   Test 194,710  165,111  194,710  165,111    Totals$938,027  742,714  938,027  742,714              EBIT            Aerospace & Defense$131,372  78,246  131,650  81,016   USG 63,998  62,808  64,929  63,140   Test 27,697  21,523  29,754  21,988   Corporate (88,779) (56,918) (28,322) (28,142)   Consolidated EBIT 134,288  105,659  198,011  138,002    Less: Interest expense (13,992) (12,373) (7,129) (12,373)   Less: Income tax (25,314) (21,841) (41,546) (29,279)   Net earnings$94,982  71,445  149,336  96,350                 Note 1: Adjusted net earnings of $149.3 million in YTD 2026 exclude $54.3 million (or $2.09 per share) of after-tax charges consisting of: $0.09 of restructuring charges within Test, USG & A&D segments, $0.20 of debt financing and $0.23 of acquisition costs at Corporate related to the pending Megger acquisition and $1.57 of acquisition related amortization.            Note 2: Adjusted net earnings of $96.4 million in YTD 2025 exclude $24.9 million (or $0.95 per share) of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.02 of restructuring charges within the Test and USG segments, and $0.70 of acquisition related amortization.            EBITDA Reconciliation to Net earnings:    YTD YTD     YTD YTD Q3 2026 - Q3 2025 -     Q3 2026 Q3 2025 As Adj As Adj Consolidated EBITDA$214,361  154,060  225,182  162,975  Less: Depr & Amort (80,073) (48,401) (27,171) (24,973) Consolidated EBIT 134,288  105,659  198,011  138,002  Less: Interest expense (13,992) (12,373) (7,129) (12,373) Less: Income tax expense (25,314) (21,841) (41,546) (29,279) Net earnings$94,982  71,445  149,336  96,350               ESCO TECHNOLOGIES INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets (Unaudited)(Dollars in thousands)       June 30,
2026 September 30,
2025       Assets      Cash and cash equivalents$73,236 101,350 Accounts receivable, net 267,493 253,554 Contract assets 127,620 90,730 Inventories 240,542 217,807 Other current assets 46,620 25,065  Total current assets 755,511 688,506 Property, plant and equipment, net 175,282 172,493 Intangible assets, net 664,450 723,973 Goodwill 760,275 761,931 Operating lease assets 47,271 47,707 Other assets 17,214 15,778   $2,420,003 2,410,388       Liabilities and Shareholders' Equity     Current maturities of long-term debt$20,000 20,000 Accounts payable 116,539 96,534 Contract liabilities 288,142 216,590 Current income tax payable 5,754 62,007 Other current liabilities 116,258 113,017  Total current liabilities 546,693 508,148 Deferred tax liabilities 115,333 112,390 Non-current operating lease liabilities 44,107 44,403 Other liabilities 31,608 38,576 Long-term debt 65,000 166,000 Shareholders' equity 1,617,262 1,540,871   $2,420,003 2,410,388 ESCO TECHNOLOGIES INC. AND SUBSIDIARIES  Consolidated Statements of Cash Flows (Unaudited)  (Dollars in thousands)         Nine Months Ended June 30, 2026 Nine Months Ended June 30, 2025Cash flows from operating activities:    Net earnings$96,159  80,571 (Earnings) loss from discontinued operations (1,177) (9,126)Adjustments to reconcile net earnings to net cash    provided by operating activities:    Depreciation and amortization 80,073  48,401 Stock compensation expense 10,182  7,934 Changes in assets and liabilities 2,983  (33,473)Effect of deferred taxes 5,157  (6,008)Net cash provided by operating activities - continuing operations 193,377  88,299 Net cash provided (used) by operating activities-discontinued ops (59,340) 43,703 Net cash provided by operating activities 134,037  132,002      Cash flows from investing activities:    Acquisition of business, net of cash acquired (10,232) (472,006)Capital expenditures (24,560) (24,210)Additions to capitalized software and other (7,874) (13,018)Net cash used by investing activities - continuing operations (42,666) (509,234)Net cash provided (used) by investing activities - discontinued ops 1,540  (966)Net cash used by investing activities (41,126) (510,200)     Cash flows from financing activities:    Proceeds from long-term debt 130,000  645,000 Principal payments on long-term debt and short-term borrowings (231,000) (242,000)Debt issuance costs (1,293) - Dividends paid (6,216) (6,196)Other (10,646) (6,205)Net cash (used) provided by financing activities (119,155) 390,599      Effect of exchange rate changes on cash and cash equivalents (1,870) 452      Net (decrease) increase in cash and cash equivalents (28,114) 12,853 Cash and cash equivalents, beginning of period 101,350  65,963 Cash and cash equivalents, end of period$73,236  78,816  ESCO TECHNOLOGIES INC. AND SUBSIDIARIESOther Selected Financial Data (Unaudited)(Dollars in thousands)   Backlog And Entered Orders - Q3 2026 A&D USG Test Total Beginning Backlog - 4/1/26$1,074,987  162,510  232,507  1,470,004  Entered Orders 195,661  126,879  86,998  409,538  Sales  (168,202) (99,963) (70,862) (339,027) Ending Backlog - 6/30/26$1,102,446  189,426  248,643  1,540,515            Backlog And Entered Orders - YTD Q3 2026 A&D USG Test Total Beginning Backlog - 10/1/25$803,002  143,460  187,175  1,133,637  Entered Orders 761,785  326,942  256,178  1,344,905  Sales  (462,341) (280,976) (194,710) (938,027) Ending Backlog - 6/30/26$1,102,446  189,426  248,643  1,540,515  ESCO TECHNOLOGIES INC. AND SUBSIDIARIESReconciliation of Non-GAAP Financial Measures (Unaudited)    EPS – Adjusted Basis Reconciliation – Q3 2026   EPS Continuing Operations– GAAP Basis – Q3 2026$1.26 Adjustments (defined below) 0.94 EPS Continuing Operations– As Adjusted Basis – Q3 2026$2.20     Adjustments of $0.94 per share consisting primarily of: $0.03 of Test and USG segment restructuring charges, $0.20 of debt financing and $0.19 of acquisition costs at Corporate related to the pending Megger acquisition, and $0.52 of acquisition related amortization.      EPS – Adjusted Basis Reconciliation – Q3 2025   EPS Continuing Operations– GAAP Basis – Q3 2025$0.96 Adjustments (defined below) 0.64 EPS Continuing Operations– As Adjusted Basis – Q3 2025$1.60     Adjustments of $0.64 per share consisting primarily of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.01 of restructuring charges within the USG segment and $0.40 of acquisition related amortization.      EPS – Adjusted Basis Reconciliation – YTD Q3 2026   EPS Continuing Operations– GAAP Basis – YTD Q3 2026$3.66 Adjustments (defined below) 2.09 EPS Continuing Operations – As Adjusted Basis – YTD Q3 2026$5.75     Adjustments of $2.09 per share consisting primarily of: $0.09 of restructuring charges within Test, USG and A&D segments, $0.20 of debt financing and $0.23 of acquisition costs related to the pending Megger acquisition, and $1.57 of acquisition related amortization.      EPS – Adjusted Basis Reconciliation – YTD Q3 2025   EPS Continuing Operations– GAAP Basis – YTD Q3 2025$2.76 Adjustments (defined below) 0.95 EPS Continuing Operations – As Adjusted Basis – YTD Q3 2025$3.71     Adjustments of $0.95 per share consisting primarily of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.02 of restructuring charges within the Test and USG segments, and $0.70 of acquisition related amortization.       SOURCE ESCO Technologies Inc.
Kate Lowrey, Vice President of Investor Relations, (314) 213-7277

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Esco Technologies (ESE - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Esco Technologies is one of 246 companies in the Business Services group. The Business Services group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Esco Technologies is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ESE's full-year earnings has moved 0.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ESE has returned 61.6% so far this year. Meanwhile, stocks in the Business Services group have lost about 6.9% on average. This means that Esco Technologies is performing better than its sector in terms of year-to-date returns.

Another Business Services stock, which has outperformed the sector so far this year, is FirstCash Holdings (FCFS - Free Report) . The stock has returned 29.7% year-to-date.

For FirstCash Holdings, the consensus EPS estimate for the current year has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Esco Technologies is a member of the Technology Services industry, which includes 121 individual companies and currently sits at #151 in the Zacks Industry Rank. Stocks in this group have lost about 8.4% so far this year, so ESE is performing better this group in terms of year-to-date returns.

FirstCash Holdings, however, belongs to the Financial Transaction Services industry. Currently, this 37-stock industry is ranked #96. The industry has moved -5.8% so far this year.

Investors interested in the Business Services sector may want to keep a close eye on Esco Technologies and FirstCash Holdings as they attempt to continue their solid performance.

Posted by Defense World Staff on Jul 25th, 2026

Allspring Global Investments Holdings LLC decreased its holdings in ESCO Technologies Inc. (NYSE:ESE – Free Report) by 43.2% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 11,185 shares of the scientific and technical instruments company’s stock after selling 8,515 shares during the quarter. Allspring Global Investments Holdings LLC’s holdings in ESCO Technologies were worth $3,279,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Northwestern Mutual Wealth Management Co. increased its stake in ESCO Technologies by 97,963,600.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,938,911 shares of the scientific and technical instruments company’s stock worth $574,234,000 after buying an additional 2,938,908 shares during the period. Capital World Investors lifted its stake in shares of ESCO Technologies by 103.4% in the 4th quarter. Capital World Investors now owns 902,956 shares of the scientific and technical instruments company’s stock worth $176,429,000 after acquiring an additional 458,980 shares during the period. Alliancebernstein L.P. grew its holdings in ESCO Technologies by 1,204.3% during the third quarter. Alliancebernstein L.P. now owns 432,050 shares of the scientific and technical instruments company’s stock worth $91,210,000 after acquiring an additional 398,926 shares during the period. Wasatch Advisors LP acquired a new position in ESCO Technologies in the first quarter worth approximately $81,106,000. Finally, Invesco Ltd. increased its stake in ESCO Technologies by 26.0% in the 3rd quarter. Invesco Ltd. now owns 891,144 shares of the scientific and technical instruments company’s stock worth $188,129,000 after purchasing an additional 183,900 shares in the last quarter. 95.70% of the stock is currently owned by hedge funds and other institutional investors.

ESCO Technologies Stock Performance Shares of ESE stock opened at $327.56 on Friday. The stock has a market cap of $8.49 billion, a PE ratio of 27.55, a price-to-earnings-growth ratio of 2.03 and a beta of 1.09. ESCO Technologies Inc. has a one year low of $174.92 and a one year high of $362.15. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.45 and a quick ratio of 0.98. The stock has a 50-day moving average of $320.19 and a 200-day moving average of $288.62.

ESCO Technologies (NYSE:ESE – Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The scientific and technical instruments company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.90 by $0.01. ESCO Technologies had a net margin of 24.69% and a return on equity of 12.88%. The company had revenue of $309.34 million during the quarter, compared to the consensus estimate of $307.88 million. During the same quarter in the prior year, the firm earned $1.35 earnings per share. The firm’s revenue was up 33.5% compared to the same quarter last year. ESCO Technologies has set its Q3 2026 guidance at 2.050-2.150 EPS and its FY 2026 guidance at 8.000-8.250 EPS. As a group, sell-side analysts expect that ESCO Technologies Inc. will post 8.2 earnings per share for the current year.

ESCO Technologies Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Friday, July 17th. Investors of record on Thursday, July 2nd were paid a $0.08 dividend. The ex-dividend date was Thursday, July 2nd. This represents a $0.32 annualized dividend and a dividend yield of 0.1%. ESCO Technologies’s dividend payout ratio is 2.69%.

Analyst Upgrades and Downgrades A number of analysts have recently issued reports on ESE shares. Wall Street Zen lowered shares of ESCO Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Weiss Ratings upgraded shares of ESCO Technologies from a “buy (a-)” rating to a “buy (a)” rating in a research note on Tuesday. JPMorgan Chase & Co. assumed coverage on shares of ESCO Technologies in a research report on Monday, June 15th. They issued an “overweight” rating and a $420.00 target price for the company. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $400.00 price target on shares of ESCO Technologies in a report on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $410.00.

Read Our Latest Report on ESE

ESCO Technologies Profile (Free Report)

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.

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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Esco Technologies (ESE - Free Report) , which belongs to the Zacks Technology Services industry, could be a great candidate to consider.

This maker of smart meters and filtration products has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 12.38%.

For the most recent quarter, Esco Technologies was expected to post earnings of $1.9 per share, but it reported $1.91 per share instead, representing a surprise of 0.53%. For the previous quarter, the consensus estimate was $1.32 per share, while it actually produced $1.64 per share, a surprise of 24.24%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Esco Technologies. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Esco Technologies currently has an Earnings ESP of +1.06%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

On June 15, 2026, ESCO Technologies Inc ESE shares rose 4.5% to a current price of $327.80. This movement comes amid a 52-week range of $174.92 to $346.20, reflecting significant volatility and investor interest over the past year.

GF Value™ verdict: Current price is $327.80, which is 76.5% overvalued compared to the GF Value™ of $185.67.GF Score™ is 89/100, indicating a strong overall performance in key investment criteria.Notable signal: The stock has a momentum rank of 9/10, suggesting strong recent price performance. Is ESE Overvalued or Undervalued? According to the GF Value™, ESCO Technologies Inc ESE is currently overvalued, with a market price of $327.80 compared to an intrinsic value estimate of $185.67. This represents a significant 76.5% downside from the current market price. The GF Valuation label categorizes ESE as "Significantly Overvalued," which raises concerns regarding potential risks for investors considering entering or holding positions in the stock.

The margin of safety is crucial for evaluating the risk associated with investing in overvalued stocks. In this case, with the stock trading well above its GF Value™, the potential for price correction adds a layer of risk. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors may face challenges if the market adjusts to align with the estimated intrinsic value.

How Does ESE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.6x 29.3x Forward P/E 35.7x N/A The current P/E (TTM) of 27.6x is 6% below its 5-year median of 29.3x, indicating that the stock is trading slightly below its historical valuation. However, the forward P/E of 35.7x suggests an expectation of higher earnings in the future, which may further support the valuation. This comparison aligns with the GF Value™ verdict of being overvalued, as the current P/E remains significantly elevated in relation to its GF Value™ estimate.

What Does ESE's GF Score™ Tell Us? Metric Rating GF Score™ 89/100 Financial Strength 8/10 Profitability 8/10 Growth 10/10 Valuation 3/10 Momentum 9/10 ESCO Technologies Inc ESE boasts a robust GF Score™ of 89/100, indicating strong potential for long-term returns. The strongest areas are its Growth rank of 10/10 and Financial Strength and Profitability ranks of 8/10. However, the Valuation rank of 3/10 highlights concerns regarding the current pricing relative to intrinsic value, suggesting that while the company shows strong operational performance, it may be trading at an unsustainable premium.

What Are Insiders Doing with ESE Stock? In the last three months, there have been no insider transactions reported for ESCO Technologies Inc ESE . This lack of activity may indicate that insiders are not making significant moves in response to the stock's recent performance, which could suggest confidence in the company's current valuation or a belief that the stock is fairly priced at current levels.

What This Means for Investors Based on the analysis provided, ESCO Technologies Inc ESE is currently overvalued according to GF Value™, with a significant premium over its intrinsic value estimate. While the company demonstrates strong financial metrics and growth potential, the elevated market price presents risks for potential investors.

For the complete analysis, visit the ESCO Technologies Inc ESE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ESE's GF Score™?

ESE's GF Score™ is 89/100, indicating strong performance across several key investment metrics that historically correlate with higher long-term returns.

Is ESE overvalued or undervalued?

ESE is currently overvalued, with a GF Value™ of $185.67, suggesting significant downside potential from the current price of $327.80.

What is ESE's P/E ratio?

ESE's current P/E ratio is 27.6x, which is slightly below its 5-year median of 29.3x, indicating that it is trading at a relatively lower valuation compared to its historical average.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends Esco Technologies (ESE - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this maker of smart meters and filtration products is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Esco Technologies is 21%, investors should actually focus on the projected growth. The company's EPS is expected to grow 34.5% this year, crushing the industry average, which calls for EPS growth of 31.5%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Esco Technologies is 44.3%, which is higher than many of its peers. In fact, the rate compares to the industry average of -5.3%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 15.3% over the past 3-5 years versus the industry average of 12%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Esco Technologies have been revising upward. The Zacks Consensus Estimate for the current year has surged 1.4% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Esco Technologies a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Esco Technologies is a potential outperformer and a solid choice for growth investors.

Handheld, universal PD survey device delivers comprehensive diagnostics and analysis with enhanced portability and ease of use

, /PRNewswire/ -- Doble Engineering, a leader in power grid diagnostic solutions, today announced the release of the Spark P2™, a handheld partial discharge (PD) and radio frequency interference (RFI) measurement device. The Spark P2, a mobile and compact single channel PD surveyor, performs sensitive PD measurements on any test object and any PD sensor, providing advanced PD and RFI insulation system diagnostics and analysis across the widest range of applications of any handheld PD detector on the market.

Equipped with narrow-band UHF, HF, wide-band Acoustic, and Ultra-Wide-Band integrative charge PD detectors, the Spark P2 offers a convenient solution for PD analysis across site surveys, transformers, switchgear, and cable accessories. With advanced diagnostic tools, including phase-resolved PD analysis, spectrum analysis, and time-resolved narrow band analysis, users can detect and identify emerging faults early and avoid unplanned outages and failures. Smaller than a laptop, light weight, and fitting into a briefcase bag, the Spark P2 provides mobility and versatility for field engineers and technicians, making it an optimal solution for substation surveys, switchgear testing, and a wide range of PD assessments.

"The Spark P2 meets the growing demand for comprehensive and universal PD assessments, while also offering the added benefits of portability, lightweight design, and easy storage," said Falk Werner, Offer Director at Doble Engineering. "Its automatic signal acquisition and guided measurements allow users of all experience levels to effortlessly conduct detailed PD insulation diagnostics, make informed decisions, and ensure the reliability of high-voltage assets. The Spark P2's portability, wide range of detectors, and compact design empower utilities and industrial companies to reduce the risk of unplanned outages with greater convenience and efficiency. For service companies, it allows them to expand PD diagnostics offering by providing one of the most comprehensive detector ranges available."

The Spark P2 incorporates a subset of the advanced features provided in the Spark P3™, including an automatic signal acquisition system that enables users unfamiliar with PD signal characteristics to achieve reliable results. The device includes "Wizard Mode" to guide newer users through measurement and data acquisition procedures with an intuitive user interface, while "Expert Mode" enables experienced users to utilize the system like a traditional laboratory device, providing a wide range of advanced measurement tools, and to configure the device to perform measurements in any desired form.

The P2 integrates seamlessly with the Doble database and other PD instruments, feeding data into the Doble Pulse™ software for comprehensive analysis, data visualization, and reporting.

For more information on the Spark P2, please visit the website.

About Doble Engineering
We envision a future where every electrical power system is safe, secure and reliable. Our mission is to equip electrical power system asset owners and operators with the means, knowledge, and insights to meet the increasing demands of this rapidly changing world. That's why Doble is the world's most trusted brand in electrical diagnostics. We provide energy system engineers with the tools, insights, and confidence to anticipate and overcome tomorrow's power demands today.

Doble is part of the Utility Solutions Group of ESCO Technologies Inc. (NYSE: ESE). For more information, visit: www.doble.com and connect on LinkedIn.

SOURCE Doble Engineering Company

Posted by Defense World Staff on Apr 4th, 2026

SG Americas Securities LLC increased its holdings in ESCO Technologies Inc. (NYSE:ESE – Free Report) by 89.1% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 15,333 shares of the scientific and technical instruments company’s stock after buying an additional 7,226 shares during the quarter. SG Americas Securities LLC owned about 0.06% of ESCO Technologies worth $2,996,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of the business. Emerald Advisers LLC boosted its holdings in ESCO Technologies by 58.8% in the third quarter. Emerald Advisers LLC now owns 141,419 shares of the scientific and technical instruments company’s stock valued at $29,855,000 after purchasing an additional 52,379 shares during the last quarter. Castleark Management LLC purchased a new position in shares of ESCO Technologies during the 2nd quarter valued at about $5,771,000. Tributary Capital Management LLC lifted its holdings in shares of ESCO Technologies by 92.5% in the 3rd quarter. Tributary Capital Management LLC now owns 311,910 shares of the scientific and technical instruments company’s stock valued at $65,847,000 after buying an additional 149,918 shares during the period. Advisors Asset Management Inc. lifted its holdings in shares of ESCO Technologies by 34.6% in the 3rd quarter. Advisors Asset Management Inc. now owns 28,965 shares of the scientific and technical instruments company’s stock valued at $6,115,000 after buying an additional 7,449 shares during the period. Finally, JPMorgan Chase & Co. boosted its stake in shares of ESCO Technologies by 59.4% in the third quarter. JPMorgan Chase & Co. now owns 86,026 shares of the scientific and technical instruments company’s stock worth $18,161,000 after buying an additional 32,069 shares during the last quarter. 95.70% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets Several research analysts recently weighed in on ESE shares. Zacks Research upgraded ESCO Technologies to a “hold” rating in a research report on Tuesday, December 16th. Deutsche Bank Aktiengesellschaft began coverage on ESCO Technologies in a research report on Wednesday, March 25th. They issued a “buy” rating and a $350.00 price objective on the stock. CJS Securities raised shares of ESCO Technologies to a “strong-buy” rating in a report on Thursday, December 11th. Wall Street Zen cut shares of ESCO Technologies from a “strong-buy” rating to a “buy” rating in a research note on Sunday, February 15th. Finally, Weiss Ratings downgraded shares of ESCO Technologies from a “buy (a-)” rating to a “buy (b)” rating in a report on Tuesday, February 10th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus target price of $275.00.

Read Our Latest Stock Report on ESCO Technologies

ESCO Technologies Stock Up 0.3% Shares of ESE opened at $293.03 on Friday. The firm has a market cap of $7.59 billion, a P/E ratio of 24.94, a PEG ratio of 1.82 and a beta of 1.14. ESCO Technologies Inc. has a 12 month low of $134.78 and a 12 month high of $296.69. The stock’s 50 day moving average is $266.43 and its two-hundred day moving average is $230.36. The company has a current ratio of 1.33, a quick ratio of 0.89 and a debt-to-equity ratio of 0.08.

ESCO Technologies (NYSE:ESE – Get Free Report) last announced its earnings results on Thursday, February 5th. The scientific and technical instruments company reported $1.64 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.32. ESCO Technologies had a return on equity of 12.55% and a net margin of 25.28%.The business had revenue of $289.66 million during the quarter, compared to the consensus estimate of $289.30 million. During the same period in the prior year, the company posted $0.92 EPS. The business’s quarterly revenue was up 17.3% on a year-over-year basis. ESCO Technologies has set its Q2 2026 guidance at 1.750-1.850 EPS and its FY 2026 guidance at 7.900-8.15 EPS. Analysts predict that ESCO Technologies Inc. will post 5.65 earnings per share for the current fiscal year.

ESCO Technologies Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Friday, April 17th. Stockholders of record on Thursday, April 2nd will be paid a dividend of $0.08 per share. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.1%. ESCO Technologies’s payout ratio is currently 2.72%.

ESCO Technologies Profile (Free Report)

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.

Further Reading Five stocks we like better than ESCO Technologies Want to see what other hedge funds are holding ESE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ESCO Technologies Inc. (NYSE:ESE – Free Report).

Receive News & Ratings for ESCO Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ESCO Technologies and related companies with MarketBeat.com's FREE daily email newsletter.

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Esco said that Megger, which provides testing, monitoring, and data solutions for utilities and infrastructure companies, would join its Utility Solution Group segment.

ESCO Technologies Inc. (ESE) M&A Call Transcript

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Esco Technologies (ESE - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Esco Technologies is a member of the Business Services sector. This group includes 234 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Esco Technologies is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ESE's full-year earnings has moved 6.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, ESE has moved about 61.3% on a year-to-date basis. In comparison, Business Services companies have returned an average of -8.1%. This means that Esco Technologies is outperforming the sector as a whole this year.

One other Business Services stock that has outperformed the sector so far this year is HireQuest, Inc. (HQI - Free Report) . The stock is up 1.1% year-to-date.

The consensus estimate for HireQuest, Inc.'s current year EPS has increased 6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Esco Technologies is a member of the Technology Services industry, which includes 111 individual companies and currently sits at #174 in the Zacks Industry Rank. On average, stocks in this group have lost 0.5% this year, meaning that ESE is performing better in terms of year-to-date returns.

In contrast, HireQuest, Inc. falls under the Staffing Firms industry. Currently, this industry has 13 stocks and is ranked #82. Since the beginning of the year, the industry has moved +4.2%.

Investors interested in the Business Services sector may want to keep a close eye on Esco Technologies and HireQuest, Inc. as they attempt to continue their solid performance.

Posted by Defense World Staff on Apr 29th, 2026

Comerica Bank cut its holdings in shares of ESCO Technologies Inc. (NYSE:ESE – Free Report) by 8.6% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 74,284 shares of the scientific and technical instruments company’s stock after selling 7,002 shares during the period. Comerica Bank owned approximately 0.29% of ESCO Technologies worth $14,514,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of ESE. AQR Capital Management LLC boosted its position in shares of ESCO Technologies by 60.5% during the first quarter. AQR Capital Management LLC now owns 7,683 shares of the scientific and technical instruments company’s stock valued at $1,223,000 after buying an additional 2,896 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of ESCO Technologies by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,399 shares of the scientific and technical instruments company’s stock valued at $2,450,000 after buying an additional 664 shares during the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in shares of ESCO Technologies during the first quarter valued at $228,000. United Services Automobile Association purchased a new stake in shares of ESCO Technologies during the first quarter valued at $261,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of ESCO Technologies by 19.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 82,500 shares of the scientific and technical instruments company’s stock valued at $13,127,000 after buying an additional 13,648 shares during the last quarter. 95.70% of the stock is owned by hedge funds and other institutional investors.

ESCO Technologies Trading Down 1.3% Shares of NYSE:ESE opened at $316.87 on Wednesday. The stock has a market capitalization of $8.21 billion, a price-to-earnings ratio of 26.97, a PEG ratio of 1.99 and a beta of 1.14. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.89 and a current ratio of 1.33. The stock’s 50-day simple moving average is $287.64 and its two-hundred day simple moving average is $242.67. ESCO Technologies Inc. has a 52-week low of $152.92 and a 52-week high of $325.54.

ESCO Technologies (NYSE:ESE – Get Free Report) last announced its earnings results on Thursday, February 5th. The scientific and technical instruments company reported $1.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.32. The business had revenue of $289.66 million for the quarter, compared to analysts’ expectations of $289.30 million. ESCO Technologies had a return on equity of 12.55% and a net margin of 25.28%.The business’s revenue for the quarter was up 17.3% on a year-over-year basis. During the same period last year, the firm posted $0.92 earnings per share. ESCO Technologies has set its Q2 2026 guidance at 1.750-1.850 EPS and its FY 2026 guidance at 7.900-8.15 EPS. Analysts expect that ESCO Technologies Inc. will post 8.16 EPS for the current year.

ESCO Technologies Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Friday, April 17th. Shareholders of record on Thursday, April 2nd were given a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend was Thursday, April 2nd. ESCO Technologies’s dividend payout ratio (DPR) is presently 2.72%.

Wall Street Analysts Forecast Growth ESE has been the topic of several recent analyst reports. Weiss Ratings cut ESCO Technologies from a “buy (a-)” rating to a “buy (b)” rating in a research report on Tuesday, February 10th. Wall Street Zen cut ESCO Technologies from a “strong-buy” rating to a “buy” rating in a research report on Sunday, February 15th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $400.00 price objective on shares of ESCO Technologies in a research report on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $300.00.

Get Our Latest Report on ESCO Technologies

ESCO Technologies Profile (Free Report)

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.

See Also Five stocks we like better than ESCO Technologies Want to see what other hedge funds are holding ESE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ESCO Technologies Inc. (NYSE:ESE – Free Report).

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St. Louis, May 07, 2026 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the second quarter ended March 31, 2026 (Q2 2026).    

Operating Highlights

Q2 2026 Sales increased $78 million (33.5 percent) to $309 million compared to $232 million in Q2 2025. Q2 2026 organic sales increased $30 million (12.8 percent) and Maritime contributed $48 million (20.7 percent) of revenue growth in the quarter.   Q2 2026 GAAP EPS from Continuing Operations increased 26.5 percent to $1.29 per share compared to $1.02 per share in Q2 2025. Q2 2026 Adjusted EPS from Continuing Operations increased 63.2 percent to $1.91 per share compared to $1.17 per share in Q2 2025.Q2 2026 Entered Orders increased $113 million (42.4 percent) to $378 million (book-to-bill of 1.22), resulting in record backlog of $1.5 billion.        Net cash provided by operating activities was $135 million YTD, an increase of $88 million compared to the prior year period. Bryan Sayler, Chief Executive Officer and President, commented, “Q2 was another excellent quarter, highlighted by $378 million in orders, 33% revenue growth, and 320 basis points of Adjusted EBITDA margin expansion. We saw broad-based revenue strength across our Navy, aerospace, Test, and utilities markets. It has been particularly encouraging to see a strong rebound in our Test business, with increasing orders driving solid revenue growth across many of their served markets.  

“We believe this quarter’s results further demonstrate the strength of our strategic positioning and our ability to execute consistently and deliver sustainable value. ESCO has taken concrete steps to strengthen our business portfolio and we remain positive about the long-term outlook for our target markets. Across these markets, durable demand drivers continue to be in place, and we are excited for the future.”

Segment Performance
Aerospace & Defense (A&D)

Q2 2026 sales increased $60.7 million (67.7 percent) to $150.3 million from $89.6 million in Q2 2025. Organic sales increased $12.9 million (14.3 percent) and Maritime added $47.8 million (53.4 percent) of revenue growth in the quarter. Quarterly sales growth was led by strong performance in Navy, commercial aerospace, and military aerospace.Q2 2026 EBIT increased $18.8 million to $43.0 million from $24.2 million in Q2 2025. Adjusted EBIT increased $18.9 million in Q2 2026 to $43.1 million (28.6 percent margin) from $24.2 million (27.0 percent margin) in Q2 2025. The 78 percent increase in Adjusted EBIT was driven by the addition of Maritime as well as leverage on higher volume, and price increases, partially offset by inflationary pressures and unfavorable mix.Q2 2026 entered orders increased $87.3 million (90.4 percent) to $183.8 million (book-to-bill of 1.22), resulting in record backlog of $1.1 billion. Orders strength in the quarter was primarily driven by $53 million in orders at Maritime, $24 million in Virginia Class orders at Globe, and higher commercial aerospace OEM orders. Utility Solutions Group (USG)

Q2 2026 sales increased $2.7 million (3.0 percent) to $93.5 million from $90.8 million in Q2 2025. Doble sales increased by $8.4 million (11.3 percent) while NRG sales decreased by $5.7 million (35.8 percent).   Sales growth in the quarter was driven by higher protection testing, offline test equipment, and services revenue at Doble, partially offset by lower wind and solar revenue at NRG.Q2 2026 EBIT increased $1.7 million to $22.5 million from $20.8 million in Q2 2025. Adjusted EBIT increased $2.2 million in Q2 2026 to $23.1 million (24.7 percent margin) from $20.9 million (23.0 percent margin) in Q2 2025. The 11 percent increase in Adjusted EBIT was driven by leverage on higher volume at Doble, price increases, and mix, partially offset by deleverage on lower volume at NRG and inflationary pressures.Q2 2026 entered orders increased $9.1 million (9.9 percent) to $101.3 million (book-to-bill of 1.08), resulting in backlog of $162.5 million. Doble orders increased $15.5 million (20.3 percent) to $92.1 million due to strength in services, offline test equipment, and condition monitoring orders. NRG orders decreased $6.4 million (41.3 percent) to $9.2 million, primarily due to lower wind and solar orders. RF Test & Measurement (Test)

Q2 2026 sales increased $14.1 million (27.5 percent) to $65.5 million from $51.4 million in Q2 2025. Sales growth in the quarter was primarily driven by higher U.S Test & Measurement (EMC) and filter sales for government funded data centers.Q2 2026 EBIT increased $2.4 million to $8.8 million from $6.4 million in Q2 2025.   Q2 2026 Adjusted EBIT increased $3.7 million to $10.1 million (15.4 percent margin) from $6.4 million (12.4 percent margin) in Q2 2025. The 59 percent increase in Adjusted EBIT was driven by leverage on higher volume and price increases, partially offset by inflationary pressures.Q2 2026 entered orders increased $16.1 million (21.0 percent) to $93.1 million (book-to-bill of 1.42), resulting in ending backlog of $232.5 million.   Orders strength in the quarter was driven by higher Test and Measurement (EMC) orders in the U.S. and EMEA, filter orders for government funded data centers, and multiple industrial shielding projects.   Megger Acquisition
As announced on April 15, 2026, ESCO has agreed to acquire Megger Group Limited. Megger will become part of ESCO’s Utility Solutions Group, creating a business of substantial scale and expanding our capabilities as a valued partner to utilities worldwide. All filings for regulatory approval are underway and we anticipate closing on the transaction in Q1 of fiscal 2027.

Business Outlook – FY 2026
FY 2026 Sales and Adjusted EPS Guidance Update:

Maintaining full year FY 2026 revenue guidance of $1.29 to $1.33 billion (18 to 21 percent growth over the prior year).Raising full year Adjusted EPS guidance to be in the range of $8.00 - $8.25 per share (33 to 37 percent growth), which reflects a midpoint increase of $0.48 per share from our initial November guidance ($7.50 - $7.80) and $0.10 per share from our more recent February guidance update ($7.90 - $8.15).Q3’26 Adjusted EPS is expected to be in the range of $2.05 - $2.15 per share (28 to 34 percent growth compared to Q3’25 Adjusted EPS). Dividend Payment
The next quarterly cash dividend of $0.08 per share will be paid on July 17, 2026 to stockholders of record on July 2, 2026.  

Conference Call
The Company will host a conference call today, May 7, at 4:00 p.m. Central Time, to discuss the Company’s Q2 2026 results. A live audio webcast and an accompanying slide presentation will be available in the Investor Center of ESCO’s website. Participants may also access the webcast using this registration link. For those unable to participate, a webcast replay will be available after the call in the Investor Center of ESCO’s website.

Forward-Looking Statements
Statements in this press release regarding Management’s intentions, expectations and guidance for fiscal 2026, including restructuring and cost reduction actions, sales, orders, revenues, margin, earnings, Adjusted EPS, acquisition related amortization, and any other statements which are not strictly historical, are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. securities laws.

Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and the following: the impacts of climate change and related regulation of greenhouse gases; the impacts of labor disputes, civil disorder, wars including the conflicts involving Iran and Lebanon, elections, political changes, tariffs and trade disputes, terrorist activities, cyberattacks or natural disasters on the Company’s operations and those of the Company’s customers and suppliers; disruptions in manufacturing or delivery arrangements due to shortages or unavailability of materials or components; restrictions or closures of critical supply routes such as the Strait of Hormuz; other supply chain disruptions; inability to access work sites; the timing and content of future contract awards or customer orders; the timely appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties or data breaches; the availability of acquisitions; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; material changes in the costs and availability of certain raw materials; material changes in the cost of credit; changes in laws and regulations including but not limited to changes in accounting standards and taxation; changes in interest, inflation and employment rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration and performance of acquired businesses.

Non-GAAP Financial Measures
The financial measures EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are presented in this press release. The Company defines “EBIT” as earnings before interest and taxes, “EBITDA” as earnings before interest, taxes, depreciation and amortization, “Adjusted EBIT” and “Adjusted EBITDA” as excluding the net impact of the items described in the attached Reconciliation of Non-GAAP Financial Measures, and “Adjusted EPS” as GAAP earnings per share excluding the net impact of the items described and reconciled in the attached Reconciliation of Non-GAAP Financial Measures.

EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes EBIT, Adjusted EBIT, EBITDA, and Adjusted EBITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation, and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

About ESCO
ESCO Technologies is a global provider of highly engineered products and solutions serving diverse end-markets. It manufactures filtration and fluid control products, advanced composites, as well as signature and power management solutions for aviation, Navy, and industrial customers. ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems; and provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Headquartered in St. Louis, Missouri, ESCO and its subsidiaries have offices and manufacturing facilities worldwide. For more information on ESCO and its subsidiaries, visit ESCO’s website at www.escotechnologies.com.
  

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per share amounts)         Three Months
Ended
March
31, 2026 Three Months
Ended
March
31, 2025          Net Sales$309,341 231,777 Cost and Expenses:      Cost of sales 178,026 132,504  Selling, general and administrative expenses 62,830 54,294  Amortization of intangible assets 20,420 7,989  Interest expense 2,399 2,195  Other expenses (income), net 1,802 375   Total costs and expenses 265,477 197,357          Earnings before income taxes 43,864 34,420 Income tax expense 10,308 8,037            Earnings from continuing operations 33,556 26,383          Earnings from discontinued operations, net of tax expense     of $363 and $1,429, respectively 1,177 4,650            Net earnings$34,733 31,033             Diluted - GAAP        Continuing operations$1.29 1.02    Discontinued operations 0.05 0.18    Net earnings$1.34 1.20             Diluted - As Adjusted Basis        Continuing Operations$1.91(1)1.17(2)            Diluted average common shares O/S: 25,938 25,877          (1)Q2 2026 Adjusted EPS from continuing operations excludes $0.62 per share of after-tax charges consisting of: $0.06 of Test & USG segment restructuring charges, $0.03 of Corporate acquisition costs and $0.53 of acquisition related amortization.         (2)Q2 2025 Adjusted EPS from continuing operations excludes $0.15 per share of after-tax charges consisting primarily of acquisition related amortization. ESCO TECHNOLOGIES INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per share amounts)         Six Months
Ended
March 31,
2026 Six Months
Ended
March 31,
2025          Net Sales$599,000 446,370  Cost and Expenses:      Cost of sales 347,766 256,718   Selling, general and administrative expenses 124,037 109,263   Amortization of intangible assets 40,744 15,982   Interest expense 5,279 4,452   Other expenses (income), net 1,832 (262)   Total costs and expenses 519,658 386,153           Earnings before income taxes 79,342 60,217  Income tax expense 17,095 13,527             Earnings from continuing operations 62,247 46,690           Earnings from discontinued operations, net of tax expense     of $363 and $2,407, respectively 1,177 7,816             Net earnings$63,424 54,506              Diluted - GAAP        Continuing operations$2.40 1.81     Discontinued operations 0.05 0.30     Net earnings$2.45 2.11              Diluted - As Adjusted Basis        Continuing Operations$3.55(1)2.12 (2)            Diluted average common shares O/S: 25,909 25,854           (1)YTD Q2 2026 Adjusted EPS from continuing operations excludes $1.15 per share of after-tax charges consisting primarily of: $0.07 of restructuring charges within Test, USG & A&D segments, $0.03 of Corporate acquisition costs and $1.05 of acquisition related amortization.         (2)YTD Q2 2025 Adjusted EPS from continuing operations excludes $0.31 per share of after-tax charges consisting of: $0.01 of restructuring charges within the Test segment and $0.30 of acquisition related amortization. ESCO TECHNOLOGIES INC. AND SUBSIDIARIES Condensed Business Segment Information (Unaudited) - Continuing Operations basis (Dollars in thousands)        GAAP As Adjusted     Q2 2026 Q2 2025 Q2 2026 Q2 2025 Net Sales           Aerospace & Defense$150,310  89,627  150,310  89,627   USG 93,529  90,767  93,529  90,767   Test 65,502  51,383  65,502  51,383    Totals$309,341  231,777  309,341  231,777              EBIT            Aerospace & Defense$42,967  24,217  43,062  24,219   USG 22,486  20,779  23,068  20,862   Test 8,773  6,369  10,095  6,369   Corporate (27,963) (14,750) (9,011) (9,648)   Consolidated EBIT 46,263  36,615  67,214  41,802    Less: Interest expense (2,399) (2,195) (2,399) (2,195)   Less: Income tax expense (10,308) (8,037) (15,126) (9,230)   Net earnings$33,556  26,383  49,689  30,377                 Note 1: Adjusted net earnings of $49.7 million in Q2 2026 exclude $16.2 million (or $0.62 per share) of after-tax charges consisting of: $0.06 of Test & USG segment restructuring charges, $0.03 of Corporate acquisition costs and $0.53 of acquisition related amortization.            Note 2: Adjusted net earnings of $30.4 million in Q2 2025 exclude $4.0 million (or $0.15 per share) of after-tax charges consisting primarily of acquisition related amortization.            EBITDA Reconciliation to Net earnings:    Q2 2026 - Q2 2025 -     Q2 2026 Q2 2025 As Adj As Adj Consolidated EBITDA$73,100  49,685  76,380  49,912  Less: Depr & Amort (26,837) (13,070) (9,166) (8,110) Consolidated EBIT 46,263  36,615  67,214  41,802  Less: Interest expense (2,399) (2,195) (2,399) (2,195) Less: Income tax expense (10,308) (8,037) (15,126) (9,230) Net earnings$33,556  26,383  49,689  30,377               ESCO TECHNOLOGIES INC. AND SUBSIDIARIES Condensed Business Segment Information (Unaudited) - Continuing Operations basis (Dollars in thousands)                   GAAP As Adjusted     YTD YTD YTD YTD     Q2 2026 Q2 2025 Q2 2026 Q2 2025 Net Sales           Aerospace & Defense$294,139  171,495  294,139  171,495   USG 181,013  177,427  181,013  177,427   Test 123,848  97,448  123,848  97,448    Totals$599,000  446,370  599,000  446,370              EBIT            Aerospace & Defense$80,954  41,669  81,195  41,697   USG 42,015  41,268  42,647  41,351   Test 16,815  10,791  18,137  11,256   Corporate (55,163) (29,059) (18,644) (18,958)   Consolidated EBIT 84,621  64,669  123,335  75,346    Less: Interest expense (5,279) (4,452) (5,279) (4,452)   Less: Income tax (17,095) (13,527) (25,998) (15,983)   Net earnings$62,247  46,690  92,058  54,911                 Note 1: Adjusted net earnings of $92.1 million in YTD 2025 exclude $29.8 million (or $1.15 per share) of after-tax charges consisting of: $0.07 of restructuring charges within Test, USG, A&D segments, $0.03 of Corporate acquisition costs and $1.05 of acquisition related amortization.            Note 2: Adjusted net earnings of $54.9 million in YTD 2025 exclude $8.2 million (or $0.31 per share) of after-tax charges consisting of: $0.01 of restructuring charges within the Test segment and $0.30 of acquisition related amortization.            EBITDA Reconciliation to Net earnings:    YTD YTD     YTD YTD Q2 2026 - Q2 2025 -     Q2 2026 Q2 2025 As Adj As Adj Consolidated EBITDA$137,951  90,710  141,427  91,430  Less: Depr & Amort (53,330) (26,041) (18,092) (16,084) Consolidated EBIT 84,621  64,669  123,335  75,346  Less: Interest expense (5,279) (4,452) (5,279) (4,452) Less: Income tax expense (17,095) (13,527) (25,998) (15,983) Net earnings$62,247  46,690  92,058  54,911               ESCO TECHNOLOGIES INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets (Unaudited)(Dollars in thousands)       March 31,
2026 September 30
2025       Assets      Cash and cash equivalents$92,252 101,350 Accounts receivable, net 256,835 253,554 Contract assets 103,532 90,730 Inventories 237,090 217,807 Other current assets 37,084 25,065  Total current assets 726,793 688,506 Property, plant and equipment, net 170,860 172,493 Intangible assets, net 682,372 723,973 Goodwill 761,181 761,931 Operating lease assets 48,977 47,707 Other assets 15,622 15,778   $2,405,805 2,410,388       Liabilities and Shareholders' Equity     Current maturities of long-term debt$20,000 20,000 Accounts payable 106,677 96,534 Contract liabilities 269,402 216,590 Current income tax payable 5,619 62,007 Other current liabilities 98,667 113,017  Total current liabilities 500,365 508,148 Deferred tax liabilities 115,140 112,390 Non-current operating lease liabilities 45,707 44,403 Other liabilities 34,173 38,576 Long-term debt 125,000 166,000 Shareholders' equity 1,585,420 1,540,871   $2,405,805 2,410,388 ESCO TECHNOLOGIES INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows (Unaudited)(Dollars in thousands)       Six Months
Ended
March 31, 2026 Six Months
Ended
March 31,
2025Cash flows from operating activities:    Net earnings$63,424  54,506 (Earnings) loss from discontinued operations (1,177) (7,816)Adjustments to reconcile net earnings to net cash    provided by operating activities:    Depreciation and amortization 53,330  26,041 Stock compensation expense 6,565  5,323 Changes in assets and liabilities 7,304  (30,033)Effect of deferred taxes 5,176  (1,714)Net cash provided by operating activities - continuing operations 134,622  46,307 Net cash used by operating activities - discontinued operations (59,340) 11,968 Net cash provided by operating activities 75,282  58,275      Cash flows from investing activities:    Acquisition of business, net of cash acquired (10,232) - Capital expenditures (13,134) (14,864)Additions to capitalized software and other (4,801) (5,465)Net cash used by investing activities - continuing operations (28,167) (20,329)Net cash provided by investing activities - discontinued operations 1,540  (486)Net cash used by investing activities (26,627) (20,815)     Cash flows from financing activities:    Proceeds from long-term debt and short term borrowings 110,000  66,000 Principal payments on long-term debt and short-term borrowings (151,000) (100,000)Dividends paid (4,143) (4,130)Other (10,645) (6,146)Net cash used by financing activities (55,788) (44,276)     Effect of exchange rate changes on cash and cash equivalents (1,965) (1,750)     Net decrease in cash and cash equivalents (9,098) (8,566)Cash and cash equivalents, beginning of period 101,350  65,963 Cash and cash equivalents, end of period$92,252  57,397  ESCO TECHNOLOGIES INC. AND SUBSIDIARIESOther Selected Financial Data (Unaudited)(Dollars in thousands)   Backlog And Entered Orders - Q2 2026 A&D USG Test Total Beginning Backlog - 1/1/26$1,041,514  154,772  204,863  1,401,149  Entered Orders 183,783  101,267  93,146  378,196  Sales  (150,310) (93,529) (65,502) (309,341) Ending Backlog - 3/31/26$1,074,987  162,510  232,507  1,470,004            Backlog And Entered Orders - YTD Q2 2026 A&D USG Test Total Beginning Backlog - 10/1/25$803,002  143,460  187,175  1,133,637  Entered Orders 566,124  200,063  169,180  935,367  Sales  (294,139) (181,013) (123,848) (599,000) Ending Backlog - 3/31/26$1,074,987  162,510  232,507  1,470,004  ESCO TECHNOLOGIES INC. AND SUBSIDIARIESReconciliation of Non-GAAP Financial Measures (Unaudited)    EPS – Adjusted Basis Reconciliation – Q2 2026   EPS Continuing Operations – GAAP Basis – Q2 2026$1.29 Adjustments (defined below) 0.62 EPS Continuing Operations – As Adjusted Basis – Q2 2026$1.91     Adjustments of $0.62 per share consist of: $0.06 of restructuring charges within the Test & USG segments, $0.03 of Corporate acquisition costs and $0.53 of acquisition related amortization.      EPS – Adjusted Basis Reconciliation – Q2 2025   EPS Continuing Operations– GAAP Basis – Q2 2025$1.02 Adjustments (defined below) 0.15 EPS Continuing Operations– As Adjusted Basis – Q2 2025$1.17     Adjustments of $0.15 per share consist of acquisition related   amortization.      EPS – Adjusted Basis Reconciliation – YTD Q2 2026   EPS Continuing Operations – GAAP Basis – YTD Q2 2026$2.40 Adjustments (defined below) 1.15 EPS Continuing Operations – As Adjusted Basis – YTD Q2 2026$3.55     Adjustments of $1.15 per share consist of: $0.07 of restructuring charges within the Test, USG and A&D segments, $0.03 of Corporate acquisition costs and $1.05 of acquisition related amortization.      EPS – Adjusted Basis Reconciliation – YTD Q2 2025   EPS Continuing Operations– GAAP Basis – YTD Q2 2025$1.81 Adjustments (defined below) 0.31 EPS Continuing Operations– As Adjusted Basis – YTD Q2 2025$2.12     Adjustments of $0.31 per share consist of: $0.01 of restructuring charges within the Test segment, and $0.30 of acquisition related amortization.            
SOURCE ESCO Technologies Inc.
Kate Lowrey, Vice President of Investor Relations, (314) 213-7277

ESCO Technologies Inc. (ESE) Q2 2026 Earnings Call Transcript

On June 09, 2026, ESCO Technologies Inc ESE shares rose 3.1%, bringing the current price to $304.52. The stock has seen notable price performance, ranging from a 52-week high of $346.20 to a low of $174.92.

GF Value™ verdict: Current price is $304.52 vs. GF Value™ of $185.29, indicating a 64.3% overvaluation. GF Score™: 89/100, which suggests a strong overall performance. Most notable signal: No insider transactions have occurred in the last 3 months. Is ESE Overvalued or Undervalued? ESCO Technologies Inc ESE is currently trading significantly above its GF Value™ of $185.29, which indicates that the stock is 64.3% overvalued. This suggests that there is a considerable margin of safety for potential investors if they were to consider the stock at its intrinsic value. The GF Valuation label categorizes ESE as "Significantly Overvalued," underscoring the risk associated with purchasing shares at this elevated price.

Investors should be cautious as the substantial overvaluation could lead to a correction in the stock price, particularly if the company's future performance does not meet market expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does ESE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 25.6x 29.3x (5-Year Median) Forward P/E 33.2x N/A Currently, ESE's P/E ratio of 25.6x is 13% below its 5-year median of 29.3x, indicating that the stock is trading lower than its historical valuation. However, the forward P/E of 33.2x suggests a more aggressive outlook, which may not align with the GF Value™ verdict indicating overvaluation. This P/E analysis reinforces the conclusion derived from the GF Value™, suggesting that the stock is currently overvalued.

What Does ESE's GF Score™ Tell Us? Metric Rating GF Score™ 89 Financial Strength 8/10 Profitability 8/10 Growth 10/10 Valuation 3/10 Momentum 9/10 The GF Score™ of 89/100 indicates a strong overall performance, with particularly high scores in Growth (10/10) and Financial Strength (8/10). However, the lowest score comes from Valuation at 3/10, highlighting the concern regarding the current stock price relative to its intrinsic value. This mixed scoring suggests that while ESE has strong growth potential and financial stability, its current valuation presents a risk to investors.

What Are Insiders Doing with ESE Stock? In the last three months, there have been no insider transactions reported for ESCO Technologies Inc. This lack of insider buying or selling may indicate a neutral sentiment among executives regarding the stock's current evaluation. Insider activity can often provide insight into management's confidence in the company's future prospects, and the absence of such transactions may suggest caution among insiders.

What This Means for Investors Based on the analysis of GF Value™, ESCO Technologies Inc ESE is currently overvalued. The significant gap between the current price and the intrinsic GF Value™ suggests potential risks for investors considering entry at this level.

For the complete analysis, visit the ESCO Technologies Inc ESE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ESE's GF Score™?

ESE's GF Score™ is 89/100, indicating a strong overall performance based on key metrics such as Financial Strength, Profitability, and Growth.

Is ESE overvalued or undervalued?

ESE is currently overvalued, with a GF Value™ of $185.29 compared to its current price of $304.52, representing a 64.3% overvaluation.

What is ESE's P/E ratio?

ESE's P/E (TTM) is 25.6x, which is 13% below its 5-year median of 29.3x, indicating that the stock is trading lower than its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].