Revenue growth reached 16.5% in 2026Q2, yet the firm's 15.5% operating margin suggests that decentralized overhead continues to limit the scalability of its 42.4% gross margin profile.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 1.25B | 1.1B | 919.13M | 855.79M | 857.5M | 715.44M | 730.47M | 726.04M | 683.65M | 685.74M | 571.46M | 537.29M | 531.12M | 490.08M | 478.7M | 450.82M | 607.49M | 619.06M | 613.57M | 444.7M | 382.35M | 429.12M | 422.08M | 396.69M | 316.61M | 298.3M | 300.16M | 416.1M | 365.1M | 378.5M | 438.5M |
| Revenue Growth % | 23.3% | 19.18% | 7.4% | -0.2% | 19.86% | -2.06% | 0.61% | 6.2% | -0.3% | 20% | 6.36% | 1.16% | 8.37% | 2.38% | 6.19% | -25.79% | -1.87% | 0.9% | 37.97% | 16.31% | -10.9% | 1.67% | 6.4% | 25.29% | 6.14% | -0.62% | -27.86% | 13.97% | -3.54% | -13.68% | -0.57% |
| Cost of Goods Sold | 725.35M | 634.3M | 530.55M | 502.68M | 525.46M | 445.05M | 458.31M | 438M | 419.71M | 436.92M | 350.81M | 334.85M | 323.94M | 295.86M | 294.65M | 273.85M | 361.94M | 372.35M | 367.95M | 282.6M | 239.2M | 281.65M | 282.37M | 271.16M | 214.32M | 204.49M | 194.08M | 304.6M | 252.4M | 272.4M | 353.2M |
| COGS % of Revenue | - | 57.91% | 57.72% | 58.74% | 61.28% | 62.21% | 62.74% | 60.33% | 61.39% | 63.71% | 61.39% | 62.32% | 60.99% | 60.37% | 61.55% | 60.74% | 59.58% | 60.15% | 59.97% | 63.55% | 62.56% | 65.64% | 66.9% | 68.36% | 67.69% | 68.55% | 64.66% | 73.2% | 69.13% | 71.97% | 80.55% |
| Gross Profit | 522.67M | 461.08M | 388.57M | 353.11M | 332.05M | 270.39M | 272.16M | 288.05M | 263.94M | 248.82M | 220.65M | 202.44M | 207.18M | 194.22M | 184.04M | 176.97M | 245.55M | 246.71M | 245.62M | 162.11M | 143.15M | 147.46M | 139.72M | 125.52M | 102.29M | 93.81M | 106.08M | 111.5M | 112.7M | 106.1M | 85.3M |
| Gross Margin % | 41.88% | 42.09% | 42.28% | 41.26% | 38.72% | 37.79% | 37.26% | 39.67% | 38.61% | 36.29% | 38.61% | 37.68% | 39.01% | 39.63% | 38.45% | 39.26% | 40.42% | 39.85% | 40.03% | 36.45% | 37.44% | 34.36% | 33.1% | 31.64% | 32.31% | 31.45% | 35.34% | 26.8% | 30.87% | 28.03% | 19.45% |
| Gross Profit Growth % | - | 18.66% | 10.04% | 6.34% | 22.8% | -0.65% | -5.52% | 9.13% | 6.07% | 12.77% | 9% | -2.29% | 6.68% | 5.53% | 4% | -27.93% | -0.47% | 0.45% | 51.51% | 13.24% | -2.92% | 5.54% | 11.31% | 22.72% | 9.03% | -11.56% | -4.86% | -1.06% | 6.22% | 24.38% | -22.6% |
| Operating Expenses | 327.49M | 287.95M | 241.01M | 232.41M | 221.06M | 188.36M | 272.16M | 181.23M | 170.33M | 164.77M | 143.12M | 139.02M | 141.64M | 135.99M | 133.83M | 128.28M | 171.91M | 171.61M | 164.37M | 121.85M | 102.32M | 86.21M | 79.42M | 73.19M | 65.1M | 59.17M | 76M | 91.4M | 85.8M | 78.5M | 84M |
| OpEx % of Revenue | - | 26.29% | 26.22% | 27.16% | 25.78% | 26.33% | 37.26% | 24.96% | 24.91% | 24.03% | 25.05% | 25.87% | 26.67% | 27.75% | 27.96% | 28.46% | 28.3% | 27.72% | 26.79% | 27.4% | 26.76% | 20.09% | 18.82% | 18.45% | 20.56% | 19.84% | 25.32% | 21.97% | 23.5% | 20.74% | 19.16% |
| Selling, General & Admin | 249.41M | 234.64M | 208.2M | 203.46M | 195.13M | 167.53M | 159.49M | 162.73M | 153.06M | 148.43M | 131.49M | 130.17M | 134.9M | 129.81M | 128.15M | 123.29M | 157.35M | 152.4M | 147.32M | 111.61M | 95.91M | 84.24M | 77.3M | 73.19M | 65.1M | 59.17M | 61.82M | 74.4M | 68.3M | 64.1M | 70.5M |
| SG&A % of Revenue | - | 21.42% | 22.65% | 23.77% | 22.76% | 23.42% | 21.83% | 22.41% | 22.39% | 21.65% | 23.01% | 24.23% | 25.4% | 26.49% | 26.77% | 27.35% | 25.9% | 24.62% | 24.01% | 25.1% | 25.08% | 19.63% | 18.31% | 18.45% | 20.56% | 19.84% | 20.6% | 17.88% | 18.71% | 16.94% | 16.08% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 53.32M | 32.8M | 28.95M | 25.94M | 20.83M | 112.67M | 18.49M | 17.26M | 16.34M | 11.63M | 8.85M | 6.74M | 6.18M | 5.67M | 4.99M | 14.56M | 19.21M | 17.04M | 10.24M | 6.41M | 1.97M | 2.12M | 0 | 0 | 0 | 14.19M | 17M | 17.5M | 14.4M | 13.5M |
| Operating Income | 195.18M | 173.13M | 147.56M | 120.7M | 110.98M | 82.03M | 0 | 106.82M | 93.61M | 84.05M | 77.53M | 63.42M | 65.54M | 58.23M | 50.22M | 48.69M | 73.64M | 75.1M | 81.25M | 40.26M | 40.84M | 61.25M | 60.3M | 52.34M | 37.19M | 34.64M | 30.07M | 20.1M | 26.9M | 27.6M | 1.3M |
| Operating Margin % | 15.64% | 15.81% | 16.05% | 14.1% | 12.94% | 11.47% | - | 14.71% | 13.69% | 12.26% | 13.57% | 11.8% | 12.34% | 11.88% | 10.49% | 10.8% | 12.12% | 12.13% | 13.24% | 9.05% | 10.68% | 14.27% | 14.29% | 13.19% | 11.75% | 11.61% | 10.02% | 4.83% | 7.37% | 7.29% | 0.3% |
| Operating Income Growth % | - | 17.32% | 22.26% | 8.75% | 35.29% | - | -100% | 14.11% | 11.37% | 8.41% | 22.24% | -3.22% | 12.55% | 15.95% | 3.14% | -33.88% | -1.94% | -7.56% | 101.83% | -1.42% | -33.33% | 1.57% | 15.21% | 40.74% | 7.36% | 15.17% | 49.63% | -25.28% | -2.54% | 2023.08% | -94.09% |
| EBITDA | 268.91M | 248.15M | 199.72M | 168.41M | 159.32M | 124.08M | 84.47M | 142.81M | 127.3M | 116.28M | 101.1M | 82.01M | 81.9M | 73.03M | 64.71M | 62.17M | 95.78M | 105.37M | 108.88M | 56.66M | 52.55M | 73.43M | 72.19M | 65.79M | 47.59M | 47.59M | 44.26M | 37.1M | 44.4M | 42M | 14.8M |
| EBITDA Margin % | 21.55% | 22.65% | 21.73% | 19.68% | 18.58% | 17.34% | 11.56% | 19.67% | 18.62% | 16.96% | 17.69% | 15.26% | 15.42% | 14.9% | 13.52% | 13.79% | 15.77% | 17.02% | 17.75% | 12.74% | 13.74% | 17.11% | 17.1% | 16.58% | 15.03% | 15.95% | 14.75% | 8.92% | 12.16% | 11.1% | 3.38% |
| EBITDA Growth % | 25.49% | 24.25% | 18.59% | 5.7% | 28.4% | 46.89% | -40.85% | 12.19% | 9.48% | 15.02% | 23.28% | 0.13% | 12.14% | 12.86% | 4.1% | -35.09% | -9.1% | -3.23% | 92.16% | 7.82% | -28.43% | 1.72% | 9.72% | 38.26% | -0.01% | 7.52% | 19.3% | -16.44% | 5.71% | 183.78% | -58.89% |
| D&A (Non-Cash Add-back) | 73.73M | 75.02M | 52.16M | 47.71M | 48.34M | 42.05M | 41.34M | 35.99M | 33.69M | 32.23M | 23.57M | 18.58M | 16.36M | 14.8M | 14.49M | 13.48M | 22.14M | 30.27M | 27.63M | 16.41M | 11.72M | 12.18M | 11.89M | 13.45M | 10.4M | 12.95M | 14.19M | 17M | 17.5M | 14.4M | 13.5M |
| EBIT | 192.11M | 170.35M | 146.2M | 119.14M | 111.29M | 82.93M | 43.14M | 105.97M | 89.89M | 84.73M | 69.73M | 62.31M | 63.77M | 52.29M | 54.65M | 56.5M | 73.64M | 70.62M | 81.09M | 40.26M | 40.84M | 61.25M | 60.3M | 52.34M | 37.19M | 34.64M | 30.07M | 20.1M | 26.9M | 27.6M | 1.3M |
| Net Interest Income | -18.33M | -17.5M | -15.25M | -8.77M | -4.85M | -2.25M | -6.73M | -8.09M | -8.8M | -4.58M | -1.31M | -785K | -1.57M | -2.69M | -2.47M | -2.49M | -3.98M | -7.45M | -9.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 18.33M | 17.5M | 15.25M | 8.77M | 4.85M | 2.25M | 6.73M | 8.09M | 8.8M | 4.58M | 1.31M | 785K | 1.57M | 2.69M | 2.47M | 2.49M | 3.98M | 7.45M | 9.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -23.2M | -20.28M | -16.61M | -10.33M | -4.55M | -1.36M | 36.41M | -8.94M | -12.52M | -3.9M | -9.11M | -1.9M | -3.33M | -8.63M | 1.96M | 5.32M | -3.98M | -11.93M | -9.97M | -2.22M | 3.55M | 2.66M | 266K | -8.97M | -452K | -6.95M | -5.34M | 43.4M | -10.5M | -9.7M | 13.4M |
| Pretax Income | 171.98M | 152.85M | 130.95M | 110.37M | 106.44M | 80.67M | 36.41M | 97.88M | 81.09M | 80.15M | 68.42M | 61.52M | 62.21M | 49.59M | 52.18M | 54.01M | 69.67M | 63.17M | 71.28M | 38.04M | 44.38M | 63.91M | 60.56M | 43.36M | 36.73M | 27.69M | 24.74M | 63.5M | 16.4M | 17.9M | 14.7M |
| Pretax Margin % | 13.78% | 13.95% | 14.25% | 12.9% | 12.41% | 11.28% | 4.98% | 13.48% | 11.86% | 11.69% | 11.97% | 11.45% | 11.71% | 10.12% | 10.9% | 11.98% | 11.47% | 10.2% | 11.62% | 8.55% | 11.61% | 14.89% | 14.35% | 10.93% | 11.6% | 9.28% | 8.24% | 15.26% | 4.49% | 4.73% | 3.35% |
| Income Tax | 40.12M | 36.55M | 28.32M | 24.68M | 24.11M | 17.18M | 13.51M | 20.39M | -5.17M | 26.45M | 22.54M | 19.79M | 19.59M | 18.34M | 17.41M | 16.92M | 24.82M | 13.87M | 23.71M | 7.63M | 15.22M | 20.36M | 22.75M | 16.63M | 13.4M | -3.38M | 7.92M | 13M | 5.1M | 6.1M | -11.4M |
| Effective Tax Rate % | 23.33% | 23.91% | 21.63% | 22.37% | 22.66% | 21.29% | 37.11% | 20.83% | -6.38% | 33% | 32.94% | 32.16% | 31.5% | 36.97% | 33.36% | 31.33% | 35.63% | 21.95% | 33.26% | 20.07% | 34.29% | 31.86% | 37.56% | 38.34% | 36.48% | -12.19% | 32.01% | 20.47% | 31.1% | 34.08% | -77.55% |
| Net Income | 308.14M | 299.22M | 101.88M | 92.55M | 82.32M | 63.5M | 99.41M | 81.04M | 92.14M | 53.7M | 45.88M | 42.51M | 410K | -25.6M | 46.88M | 52.5M | 44.85M | 49.41M | 46.71M | 33.71M | 31.28M | 43.54M | 35.67M | -41.14M | 21.78M | 30.11M | 16.82M | 25.5M | 11.3M | 11.8M | 26.1M |
| Net Margin % | 24.69% | 27.32% | 11.08% | 10.81% | 9.6% | 8.88% | 13.61% | 11.16% | 13.48% | 7.83% | 8.03% | 7.91% | 0.08% | -5.22% | 9.79% | 11.65% | 7.38% | 7.98% | 7.61% | 7.58% | 8.18% | 10.15% | 8.45% | -10.37% | 6.88% | 10.09% | 5.6% | 6.13% | 3.09% | 3.12% | 5.95% |
| Net Income Growth % | 161.14% | 193.7% | 10.09% | 12.42% | 29.65% | -36.13% | 22.67% | -12.04% | 71.57% | 17.05% | 7.93% | 10268.78% | 101.6% | -154.62% | -10.71% | 17.07% | -9.23% | 5.77% | 38.55% | 7.78% | -28.16% | 22.07% | 186.71% | -288.87% | -27.65% | 79.01% | -34.04% | 125.66% | -4.24% | -54.79% | 186.14% |
| Net Income (Continuing) | 131.86M | 116.3M | 102.63M | 85.68M | 82.32M | 63.5M | 22.9M | 77.49M | 86.26M | 53.7M | 45.88M | 41.74M | 42.61M | 31.26M | 34.77M | 37.08M | 44.85M | 49.3M | 47.57M | 30.41M | 29.16M | 43.54M | 37.82M | 26.74M | 23.34M | 31.07M | 16.82M | 50.5M | 11.3M | 11.8M | 26.1M |
| Discontinued Operations | 3M | 182.92M | -747K | 6.86M | 0 | 0 | 76.52M | 3.55M | 5.88M | 0 | 0 | 776K | -42.2M | -56.86M | 12.11M | 15.42M | 0 | 103K | -858K | 3.31M | 2.12M | 0 | -2.15M | -66.46M | -1.55M | -961K | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 11.89 | 11.55 | 3.94 | 3.58 | 3.16 | 2.42 | 0.88 | 3.11 | 3.54 | 2.07 | 1.77 | 1.62 | 0.02 | 1.17 | 1.73 | 1.95 | 1.68 | 1.86 | 1.78 | 1.28 | 1.19 | 1.66 | 1.34 | -1.57 | 0.84 | 1.18 | 0.67 | 1.01 | 0.45 | 0.48 | 1.13 |
| EPS Growth % | 160.75% | 193.15% | 10.06% | 13.29% | 30.58% | 175% | -71.7% | -12.15% | 71.01% | 16.95% | 9.26% | 10284.62% | -98.67% | -32.37% | -11.28% | 16.07% | -9.68% | 4.49% | 39.06% | 7.56% | -28.31% | 23.88% | 185.35% | -286.9% | -28.81% | 76.12% | -33.66% | 124.44% | -6.25% | -57.52% | 181.88% |
| EPS (Basic) | - | 11.55 | 3.96 | 3.59 | 3.17 | 2.44 | 0.88 | 3.12 | 3.56 | 2.08 | 1.78 | 1.65 | 0.02 | 1.18 | 1.76 | 1.97 | 1.70 | 1.88 | 1.80 | 1.30 | 1.22 | 1.71 | 1.38 | -1.62 | 0.87 | 1.22 | 0.69 | 1.03 | 0.47 | 0.50 | 1.13 |
| Diluted Shares Outstanding | 25.91M | 25.91M | 25.87M | 25.88M | 26.07M | 26.23M | 26.14M | 26.1M | 26.06M | 26M | 25.97M | 26.27M | 26.64M | 26.8M | 27.03M | 26.9M | 26.74M | 26.56M | 26.32M | 26.39M | 26.39M | 26.23M | 26.65M | 26.26M | 26.04M | 25.51M | 25.34M | 25.23M | 25.1M | 24.58M | 23.2M |
| Basic Shares Outstanding | 25.91M | 25.91M | 25.75M | 25.79M | 25.93M | 26.05M | 26.01M | 25.95M | 25.87M | 25.83M | 25.72M | 25.82M | 26.21M | 26.44M | 26.7M | 26.59M | 26.45M | 26.22M | 25.91M | 25.86M | 25.72M | 25.46M | 25.8M | 25.35M | 25.02M | 24.68M | 24.61M | 24.66M | 24.03M | 23.6M | 23.1M |
| Dividend Payout Ratio | - | 2.76% | 8.09% | 8.92% | 10.04% | 13.13% | 8.37% | 10.24% | 8.98% | 15.38% | 17.98% | 19.69% | 2066.34% | - | 18.25% | 16.25% | 14.13% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Segment Revenue Cyclicality
As reported in recent financial statements, ESE achieved a 19.18% year-over-year revenue growth rate, reflecting a successful integration of recent bolt-on acquisitions and a recovery in core aerospace demand, though the lumpy nature of project-based RF shielding contracts continues to introduce quarterly volatility into the top-line.
The company's revenue trajectory appears to be in an expansionary phase, supported by the critical nature of its defense and utility infrastructure components. However, investors should monitor whether this growth is sustainable organically or if it remains overly dependent on the continued acquisition of niche engineering firms to offset potential slowdowns in commercial aerospace cycles.
Based on ESE's reported figures, the company maintains a consistent gross margin profile of approximately 42%, which suggests significant pricing power derived from its proprietary, safety-critical components that are deeply embedded within long-cycle aerospace and utility platforms, effectively insulating the firm from broader industrial commodity price fluctuations.
The stability of these margins indicates that ESE's specialized manufacturing processes provide a durable competitive moat. While the mix shift toward lower-margin RF shielding projects occasionally pressures consolidated results, the underlying strength in the Aerospace & Defense segment appears to provide a reliable floor for overall profitability.
According to recent SEC filings, ESE's net margin reached an anomalous 62% in 2025Q4, a figure that significantly deviates from the company's historical operating margin of 15.8%, suggesting that non-operating items or tax benefits are currently inflating the reported earnings quality and obscuring true operational performance.
Analysts should normalize these results by stripping out non-recurring gains to assess the company's actual earnings power. The discrepancy between operating and net income warrants further investigation into the nature of these one-time items to ensure that investors are not overestimating the firm's core profitability based on transient accounting events.
Based on the provided income statement data, ESE's operating margin of 15.8% suggests that while the company possesses strong pricing power, its decentralized organizational structure may be creating overhead redundancies that prevent operating income from scaling more aggressively in proportion to the recent double-digit revenue growth.
The lack of significant R&D expense reporting in the provided data is notable, suggesting that these costs may be embedded within COGS or SG&A, which complicates a clear assessment of expense discipline. Investors should monitor whether management can streamline these decentralized operations to improve operating leverage as the business continues to scale.
Quick answers to the most common questions about buying ESE stock.
For fiscal year 2025, ESCO Technologies Inc. (ESE) reported total revenue of $1.10B. This represents a 149.8% increase compared to $438.5M in 1996.
ESCO Technologies Inc. (ESE) is profitable, generating $299.2M in net income for the fiscal year ending 2025 with a net profit margin of 27.3%.
ESCO Technologies Inc. (ESE) reported an operating income of $173.1M, resulting in an operating profit margin of 15.8%. This margin reflects the operational efficiency of the business before interest and taxes.
ESCO Technologies Inc. (ESE) generated $461.1M in gross profit for the year, representing a gross profit margin of 42.1%. This demonstrates the company's core pricing power and production efficiency.