ESCO Technologies

ESE · NYSE · Industrials · Financials, fiscal 2016 to 2025

ESE · Last close · November 6, 2026

$230.41

ESCO Technologies' revenue rose 19.2% to $1.1 billion in fiscal 2025. Its operating margin was 15.6%, down from 15.9% a year earlier. Free cash flow was $206 million, up 107.1%. It paid out $8 million in dividends and buybacks, 4% of free cash flow. The diluted share count rose 0.1%.

ESCO TECHNOLOGIES INC. Latest fiscal year ended September 30, 2025 10-K filed December 1, 2025 · 0001104659-25-117276 Updated November 5, 2026

Revenue

$1.1B

19.2%

Operating margin

15.6%

0.4 pts

Net income

$299M

193.7%

Free cash flow

$206M

107.1%

Return on capital

8.8%

0.3 pts

Market cap

$6.0B

Nov 6 close

P/E

19.0x

On $12.15 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. ESCO's fiscal 2024 revenue is as reported in its 10-K (US$919 million); the four quarters first reported add up to US$975 million because a later filing restated some of them.

Charts show fiscal years, from the 10-K filings.

What ESCO Technologies does

ESCO Technologies makes engineered components and systems for aviation, Navy, defense and industrial customers. It also designs and makes radio frequency (RF) test and measurement products, and provides diagnostic instruments, software and services to industrial power users and to the electric utility and renewable energy industries.

It reports three operating segments, the first being Aerospace & Defense, whose businesses include PTI Technologies, Crissair, Globe Composite Solutions, Mayday Manufacturing and ESCO Maritime Solutions. The company runs them as separate wholly owned subsidiaries. Its fiscal year ends September 30.

ESCO says its strategy is a portfolio of businesses serving end markets it sees as growing and high-margin. A large part of its revenue comes from sales outside the United States and from fixed-price contracts, and it relies on a small number of outside suppliers for much of its manufacturing.

Its biggest risks, as it describes them

Limits on U.S. defense spending or shifts in government buying priorities could hurt its business.
Fixed-price contracts mean cost overruns can cause losses.
A large share of its sales is outside the U.S., exposing it to foreign political and legal risks.
Part of its manufacturing relies on a small number of outside suppliers.
Higher raw material and component prices, or shortages, could hurt it.

From ESCO Technologies's annual report on Form 10-K, filed December 1, 2025, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share grew 23.2% a year and net income 23.2% a year, with the share count about the same.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	56	98	42	66	101
Debt incl. finance leases	184	174	122	140	203
Net debt (negative means net cash)	127	76	80	74	101
Net debt to EBITDA	1.0x	0.5x	0.5x	0.4x	0.4x
Debt to equity	0.2x	0.2x	0.1x	0.1x	0.1x
Interest coverage	37.7x	22.7x	13.6x	9.6x	9.7x
Current ratio	1.7x	1.8x	1.9x	1.9x	1.4x
Quick ratio	1.2x	1.3x	1.3x	1.4x	0.9x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project ESCO Technologies' revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open ESCO Technologies' projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought ESCO Technologies shares on the open market, and 5 insiders sold $5.3 million.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Nov 26, 2025	Vinod M KhilnaniDirector	Sold	3,000	$217.99	$653,971	Form 4
Nov 26, 2025	Bryan H SaylerCEO & President, Director	Sold	401	$220.00	$88,220	Form 4
Nov 25, 2025	Bryan H SaylerCEO & President, Director	Sold	9,382	$220.00	$2.1 million	Form 4
Nov 25, 2025	Christopher L TuckerSr. Vice President & CFO	Sold	5,000	$220.15	$1.1 million	Form 4
Nov 25, 2025	Robert J PhillippyDirector	Sold	3,700	$222.53	$823,370	Form 4
Nov 25, 2025	David M SchatzSr. VP, Sec'y & Gen. Counsel	Sold	2,498	$225.65	$563,674	Form 4
Nov 25, 2025	Vinod M KhilnaniDirector	Sold	216	$224.04	$48,393	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	7 of 9	8 of 9	4 of 9
Rule of 40	6.5%	18.2%	38.0%
Altman Z''	5.58	5.75	4.68
Accruals ratio	0.9%	−1.5%	2.7%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Pass
Cash from operations exceeds net income	Fail	Pass	Fail
Debt fell relative to assets	Pass	Fail	Fail
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Pass	Pass	Fail
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Fail	Pass	Pass
F-score	7 of 9	8 of 9	4 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put ESCO Technologies side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
ESCO Technologies	FY25	19.2%	15.6%	18.8%	8.8%	0.4x	4
Kadant	FY25	−0.1%	14.9%	14.7%	9.9%	1.2x	5	Compare
EnPro Industries	FY25	9.0%	14.1%	13.9%	5.8%	2.0x	6	Compare
Albany International	FY25	−3.9%	−3.0%	7.0%	−2.6%	6.6x	4	Compare
Tennant	FY25	−6.5%	5.7%	3.6%	6.9%	1.3x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	572	686	772	726	730	715	858	856	919	1,095
Revenue growth	6.4%	20.0%	12.5%	−5.9%	0.6%	−2.1%	19.9%	−0.2%	7.4%	19.2%
Gross profit	221	249	352	288	272	270	332	353	389	461
Research and development	12	14	11	12	13	15	12	13	12	23
Operating income	—	—	—	—	—	—	—	119	146	170
Net income	46	54	92	81	99	64	82	92	102	299
Diluted EPS (US$)	1.77	2.07	3.54	3.10	3.81	2.42	3.16	3.58	3.94	11.55
Diluted shares (millions)	26	26	26	26	26	26	26	26	26	26
Cash flow
Cash from operations	74	67	93	105	82	123	135	77	128	242
Capital expenditure	14	30	15	24	32	27	32	20	28	36
Free cash flow	60	38	78	81	50	96	103	57	99	206
Dividends paid	8	8	8	8	8	8	8	8	8	8
Share buybacks	4	0	0	0	0	0	20	12	8	0
Acquisitions	82	199	10	96	0	169	11	18	56	472
Stock-based compensation	5	5	5	5	6	7	7	9	9	11
Balance sheet at fiscal year end
Cash and short-term investments	54	46	30	62	53	56	98	42	66	101
Debt incl. finance leases	110	275	220	285	95	184	174	122	140	203
Total assets	978	1,260	1,265	1,467	1,370	1,577	1,654	1,683	1,839	2,410
Total liabilities	363	588	506	640	411	558	606	552	601	870
Shareholders' equity	615	672	759	826	959	1,020	1,048	1,131	1,237	1,541
Margins and ratios
Gross margin	38.6%	36.3%	45.6%	39.7%	37.3%	37.8%	38.7%	41.3%	42.3%	42.1%
Operating margin	—	—	—	—	—	—	—	13.9%	15.9%	15.6%
Net margin	8.0%	7.8%	11.9%	11.2%	13.6%	8.9%	9.6%	10.8%	11.1%	27.3%
Free cash flow margin	10.5%	5.5%	10.1%	11.1%	6.9%	13.5%	12.0%	6.7%	10.8%	18.8%
Rule of 40 (growth + FCF margin)	16.9%	25.5%	22.6%	5.2%	7.5%	11.4%	31.9%	6.5%	18.2%	38.0%
Return on capital	7.4%	7.2%	9.7%	8.4%	2.6%	6.1%	7.6%	7.9%	9.1%	8.8%
Return on equity	7.7%	8.3%	12.9%	10.2%	11.1%	6.4%	8.0%	8.5%	8.6%	21.5%
Return on assets	5.0%	4.8%	7.3%	5.9%	7.0%	4.3%	5.1%	5.5%	5.8%	14.1%
Net debt to EBITDA	0.6x	2.0x	1.5x	1.6x	0.5x	1.0x	0.5x	0.5x	0.4x	0.4x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: ESCO Technologies' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with ESCO Technologies.