ESCO Technologies Inc. ESE

IndustrialsMachinery, Tools, Heavy Vehicles, Trains & ShipsUnited States of America

Last close 241.05 USD on Nov 2, 2026, +23.5% year to date

Quant rating

Quant rating C Rank 230 of 486 in Industrials

Growth B 146 of 486
Valuation C 290 of 486
Quality B 166 of 486
Revisions B 149 of 486
Momentum C 333 of 486

Wall Street consensus Buy (1.80)Average target 342.84 USD +42.2%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 7.5B
Enterprise value: 7.5B
52-week range: 193.95 – 362.11
3-year range: 97.26 – 362.11
Dividend yield: 0.13%
Beta (5 years): 1.05
Shares outstanding: 31.0M
Next earnings: Nov 19, 2026

About the company

ESCO Technologies Inc. is a provider of engineered components and systems for aviation, Navy, defense and industrial customers. The Company is engaged in designing and manufacturing radio frequency (RF) test and measurement products and systems. It provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Its segments include Aerospace & Defense (A&D), Utility Solutions Group (USG), and RF Test & Measurement (Test). The A&D segment primarily designs and manufactures specialty filtration, fluid control and naval products, including hydraulic filter elements, fluid control devices and precision-tolerance machined components used in aerospace and defense applications, naval magnetic signature management systems, naval power control and conversion systems, products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessel’s signature, and other communications.

Growth and profitability fiscal year ends September 30

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	1,095	919	856	858	715	–
Revenue growth	19.2%	7.4%	−0.2%	19.9%	−2.1%	8.4%
EPS (basic, normalized)	6.03	4.18	3.70	3.21	2.59	–
EPS growth	44.3%	13.0%	15.3%	23.9%	–	–
Gross margin	42.1%	42.3%	41.3%	38.7%	37.8%	40.4%
Net margin	10.6%	11.2%	10.0%	9.6%	8.9%	10.1%
ROE	8.4%	8.7%	7.9%	8.0%	6.4%	7.9%

Balance sheet, last quarter
Cash & short-term investments (mil)	73.2
Current ratio	1.38x
Long-term debt (mil)	78.7
Net debt (mil)	27.2
Total equity (mil)	1,617
Net debt / equity	0.02x
Net debt / EBITDA	0.11x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	1,095	+19.2%	6.8x	256	+26.4%	29.3x	6.03	+44.3%	40.0x
2026	1,314	+19.9%	5.7x	330	+28.6%	22.8x	8.37	+38.7%	28.8x
2027	2,020	+53.8%	3.7x	478	+45.1%	15.7x	9.14	+9.3%	26.4x
2028	2,194	+8.6%	3.4x	554	+15.9%	13.5x	11.12	+21.7%	21.7x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	1,314	0.0%	−0.3%	−0.1%	8.37	+0.1%	+2.1%	+2.7%
2027	2,020	+29.9%	+43.2%	+43.5%	9.14	−0.9%	+0.5%	−0.1%
2028	2,194	+26.0%	+43.0%	+42.9%	11.12	+12.2%	+6.1%	+7.2%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	249	261	299	247	266	296	352	290	309	339
Sales mean (mil)	243	269	297	232	265	319	339	280	308	339
Surprise	+2.6%	−3.1%	+0.6%	+6.3%	+0.2%	−7.0%	+3.9%	+3.6%	+0.5%	0.0%
EPS reported	0.94	1.16	1.46	1.07	1.35	1.60	2.32	1.64	1.91	2.20
EPS mean	0.87	1.20	1.44	0.73	1.25	1.65	2.13	1.32	1.84	2.12
Surprise	+8.5%	−3.6%	+1.7%	+47.1%	+7.8%	−2.8%	+8.7%	+24.2%	+3.8%	+3.8%

Peer comparison Machinery, Tools, Heavy Vehicles, Trains & Ships

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
ESE ESCO Technologies Inc.	7.5B	0.11x	10.6%	3.86x	28.8x	26.4x	22.8x	15.7x
PH Parker-Hannifin Corporation	117.1B	1.43x	17.0%	7.59x	26.1x	23.5x	18.4x	16.9x
FAST Fastenal Company	60.3B	−0.06x	15.3%	14.53x	41.2x	37.2x	28.4x	25.8x
ROK Rockwell Automation Inc	48.9B	1.37x	10.4%	14.00x	33.3x	29.6x	23.6x	21.5x
HUBB Hubbell Inc	22.9B	3.38x	15.2%	5.58x	21.1x	18.8x	16.4x	14.4x
LII Lennox International Inc.	12.1B	1.37x	15.5%	9.19x	16.3x	15.1x	11.9x	11.2x
Mean		1.26x	14.0%	9.12x	27.8x	25.1x	20.3x	17.5x
Median		1.37x	15.2%	8.39x	27.5x	24.9x	20.6x	16.3x

Technical analysis

1M−12.3%
3M−23.5%
1Y+10.0%
3Y+146.2%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, ESCO Technologies Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	1,095	919	856	858	715	730
Cost of revenue	634	531	503	525	445	458
Gross profit	461	389	353	332	270	272
Selling, general & administrative expenses	235	208	203	195	168	159
Research & development	–	–	–	–	–	–
Depreciation/amortization	53.3	32.8	29.0	25.9	20.8	21.8
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	2.3	1.0	–	0	0	48.6
Other operating expenses	0.5	0.4	0	0	0	0
Operating income	170	146	121	111	82.0	42.3
Net interest income (expense)	−17.5	−15.2	−8.8	−4.9	−2.3	−6.7
Gain (loss) on sale of assets	–	–	–	–	2.0	–
Other non-operating income (expense)	0	0	−1.6	0.3	−1.1	0.9
Net income before taxes	153	131	110	106	80.7	36.4
Provision for taxes	36.6	28.3	24.7	24.1	17.2	13.5
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	116	103	85.7	82.3	63.5	22.9
Extraordinary items	183	−0.7	6.9	0	0	76.5
Net income	299	102	92.5	82.3	63.5	99.4
EBIT, normalized	173	147	121	111	82.0	90.9
EBITDA, normalized	248	203	171	159	124	132
Basic EPS, normalized	6.03	4.18	3.70	3.21	2.59	–

Balance sheet in millions of USD, fiscal years

Balance sheet, ESCO Technologies Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	101	66.0	41.9	97.7	56.2	52.6
Receivables	344	371	337	290	240	238
Total inventory	218	209	184	162	147	135
Prepaid expenses	–	–	–	–	–	–
Other current assets	25.1	22.3	18.0	22.7	22.7	17.1
Total current assets	689	669	581	573	466	443
Property, plant & equipment	220	208	195	185	186	161
Goodwill	762	540	503	493	505	408
Intangibles	724	408	392	394	409	347
Long-term investments	–	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	15.8	14.1	11.5	9.5	11.0	10.9
Total assets	2,410	1,839	1,683	1,654	1,577	1,370
Liabilities
Accounts payable	96.5	98.4	87.0	78.7	56.7	50.5
Payable/accrued	–	–	–	–	–	–
Accrued expenses	111	105	94.0	93.0	90.1	82.6
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	21.6	21.4	21.4	21.3	22.2	22.4
Other current liabilities	279	125	112	125	109	101
Total current liabilities	508	350	315	318	278	256
Long-term debt	181	119	100	153	161	40.0
Minority interest	–	–	–	–	–	–
Other liabilities	180	133	137	135	119	115
Total liabilities	870	601	552	606	558	411
Shareholders' equity
Preferred stock	–	–	–	–	–	0
Common stock	0.3	0.3	0.3	0.3	0.3	0.3
Additional paid-in capital	316	312	305	302	298	294
Retained earnings (accumulated deficit)	1,374	1,083	989	905	831	776
Treasury stock	−147	−147	−139	−127	−107	−107
Other equity	−2.5	−10.8	−24.0	−31.8	−2.2	−3.7
Total equity	1,541	1,237	1,131	1,048	1,020	959
Total liabilities & shareholders' equity	2,410	1,839	1,683	1,654	1,577	1,370

Cash flow statement in millions of USD, fiscal years

Cash flow statement, ESCO Technologies Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	299	102	92.5	82.3	63.5	102
Depreciation, depletion & amortization	75.0	55.4	50.5	48.3	42.0	41.3
Deferred taxes	−11.0	−9.0	−6.3	8.9	−3.0	−2.6
Non-cash items	−131	8.6	8.9	7.3	5.0	−82.3
Changes in working capital	9.4	−29.4	−68.8	−11.7	15.7	23.8
Cash from operations	242	128	76.9	135	123	82.3
Investing activities
Capital expenditures	−52.2	−48.3	−34.8	−45.0	−35.5	−41.1
Other investing cash flows	−204	−56.4	−17.7	−10.9	−167	182
Cash from investing	−256	−105	−52.5	−55.9	−202	141
Financing activities
Financing cash flow items	−6.2	−4.5	−6.7	−3.0	−1.8	−5.3
Cash dividends paid	−8.3	−8.2	−8.3	−8.3	−8.3	−8.3
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	64.0	12.0	−63.4	−20.9	91.6	−223
Cash from financing	49.5	−0.8	−78.3	−32.1	81.5	−236
Foreign exchange effects	−0.3	2.0	−1.9	−5.7	1.5	3.7
Net change in cash	35.4	24.1	−55.9	41.5	3.7	−9.2
Free cash flow	190	79.3	42.1	90.3	87.7	41.1

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.