ESCO Technologies Inc. reported another strong quarter for the second quarter ended March 31, 2025, achieving 7 percent top-line growth, 250 basis points of Adjusted EBITDA margin expansion, and a 24 percent increase in Adjusted EPS compared to the prior year. All three segments delivered solid revenue growth, with particular strength noted across Navy, commercial aerospace, utility, and Test end-markets.
The company saw a significant increase in orders, up 22 percent over the prior year, driven by strength in both the Utility Solutions Group (USG) and RF Test & Measurement (Test) segments. This robust order flow contributes to a healthy backlog and future revenue visibility.
ESCO confirmed the successful closing of the Signature Management & Power (SM&P) acquisition on April 25th, which has been rebranded as ESCO Maritime Solutions. This new business meaningfully expands ESCO's naval product offerings in both the US and UK, and management expressed optimism about its future contribution.
Building on its strong performance and the contribution from the newly acquired Maritime business, ESCO raised its full-year fiscal 2025 Adjusted EPS guidance by an additional $0.10, to a new range of $5.65 to $5.85. This updated guidance reflects 18 to 23 percent growth over the prior year, with Maritime expected to contribute $0.20 to $0.30 to Adjusted EPS for the five months of ownership, based on estimated sales of $90 million to $100 million.
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