ESCO Technologies Inc. reported a strong finish to fiscal year 2024, with fourth-quarter sales growing 9 percent, Adjusted EBIT margin improving by 130 basis points, and Adjusted EPS increasing by 17 percent. All three segments, Aerospace & Defense (A&D), Utility Solutions Group (USG), and RF Test & Measurement (Test), contributed to sales growth and margin improvement during the quarter.
For the full fiscal year 2024, ESCO achieved record financial performance, with both sales and orders surpassing the $1 billion mark for the first time. The company ended the year with a record backlog of $879 million, representing a 14 percent increase over the prior year, providing significant revenue visibility.
Management provided an initial outlook for fiscal year 2025, anticipating growth in sales, Adjusted EBIT, and Adjusted EBITDA across all business segments. The company also updated on its pending acquisition of Signature Management & Power (SM&P), stating that US closing conditions have been met, with the UK government assessment ongoing and an expected close in the second fiscal quarter.
Additionally, ESCO announced a strategic review of alternatives for the Space business within its VACCO subsidiary. This review aims to optimize ESCO’s portfolio and create shareholder value by focusing on high-growth, high-margin markets, with a key consideration being the feasibility of separating VACCO's Space and Defense product lines.
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