Operational efficiency has improved significantly, with gross margins recovering to 37.0% in 2026Q3 from a 23.2% trough in 2025Q2.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 42.25M | 43.95M | 38.74M | 35.59M | 32.1M | 27.73M | 31.53M | 36.48M | 32.52M | 22.52M | 27.47M | 26.83M | 27.14M | 34.3M | 32.04M | 29.5M | 28.9M | 27.24M | 25.7M | 27.66M | 20.85M | 18.83M | 22.51M | 19.77M | 18.41M | 17.25M | 14.72M | 13.6M | 10.8M | 15.2M | 16.8M |
| Revenue Growth % | -8.09% | 13.46% | 8.83% | 10.86% | 15.76% | -12.03% | -13.57% | 12.18% | 44.39% | -18.02% | 2.38% | -1.12% | -20.88% | 7.06% | 8.6% | 2.07% | 6.09% | 5.99% | -7.07% | 32.63% | 10.74% | -16.34% | 13.83% | 7.43% | 6.69% | 17.2% | 8.23% | 25.93% | -28.95% | -9.52% | 15.07% |
| Cost of Goods Sold | 26.82M | 31.27M | 28.08M | 27.54M | 26.63M | 24.37M | 25.97M | 29.41M | 24.86M | 17.81M | 20.1M | 19.69M | 22.61M | 23.6M | 23.22M | 21.29M | 21.14M | 21.15M | 18.84M | 21.6M | 16.31M | 15.45M | 18.79M | 16.68M | 16.1M | 14.19M | 11.51M | 10.7M | 9.7M | 12.5M | 14.5M |
| COGS % of Revenue | - | 71.14% | 72.5% | 77.38% | 82.96% | 87.89% | 82.37% | 80.64% | 76.44% | 79.07% | 73.17% | 73.38% | 83.3% | 68.8% | 72.47% | 72.18% | 73.14% | 77.66% | 73.3% | 78.09% | 78.22% | 82.04% | 83.49% | 84.33% | 87.5% | 82.25% | 78.21% | 78.68% | 89.81% | 82.24% | 86.31% |
| Gross Profit | 15.43M | 12.68M | 10.65M | 8.05M | 5.47M | 3.36M | 5.56M | 7.06M | 7.66M | 4.71M | 7.37M | 7.14M | 4.53M | 10.7M | 8.82M | 8.21M | 7.76M | 6.09M | 6.86M | 6.06M | 4.54M | 3.38M | 3.71M | 3.1M | 2.3M | 3.06M | 3.21M | 2.9M | 1.1M | 2.7M | 2.3M |
| Gross Margin % | 36.52% | 28.86% | 27.5% | 22.62% | 17.04% | 12.11% | 17.63% | 19.36% | 23.56% | 20.93% | 26.83% | 26.62% | 16.7% | 31.2% | 27.53% | 27.82% | 26.86% | 22.34% | 26.7% | 21.91% | 21.78% | 17.96% | 16.51% | 15.67% | 12.5% | 17.75% | 21.79% | 21.32% | 10.19% | 17.76% | 13.69% |
| Gross Profit Growth % | - | 19.07% | 32.33% | 47.12% | 62.88% | -39.56% | -21.3% | -7.82% | 62.52% | -36.04% | 3.22% | 57.61% | -57.65% | 21.31% | 7.48% | 5.71% | 27.54% | -11.3% | 13.24% | 33.42% | 34.33% | -8.98% | 19.92% | 34.63% | -24.85% | -4.56% | 10.62% | 163.64% | -59.26% | 17.39% | 15% |
| Operating Expenses | 4.68M | 4.56M | 4.11M | 3.75M | 3.94M | 3.79M | 4.39M | 4.41M | 3.81M | 3.19M | 3.03M | 2.71M | 3.21M | 2.92M | 2.83M | 2.91M | 3.01M | 2.83M | 2.62M | 2.83M | 2.64M | 2.27M | 2.54M | 1.95M | 1.75M | 1.89M | 2.47M | 2.2M | 2.4M | 2.3M | 2.1M |
| OpEx % of Revenue | - | 10.37% | 10.62% | 10.54% | 12.28% | 13.65% | 13.91% | 12.09% | 11.71% | 14.16% | 11.02% | 10.11% | 11.84% | 8.51% | 8.83% | 9.85% | 10.4% | 10.38% | 10.21% | 10.24% | 12.64% | 12.08% | 11.27% | 9.87% | 9.52% | 10.97% | 16.81% | 16.18% | 22.22% | 15.13% | 12.5% |
| Selling, General & Admin | 4.68M | 4.49M | 4.03M | 3.69M | 3.91M | 3.74M | 4.39M | 4.41M | 3.81M | 3.19M | 3.03M | 2.71M | 3.21M | 2.92M | 2.83M | 2.91M | 3.01M | 2.83M | 2.62M | 2.83M | 2.64M | 2.27M | 2.54M | 1.95M | 1.75M | 1.89M | 2M | 1.8M | 2M | 1.8M | 1.6M |
| SG&A % of Revenue | - | 10.21% | 10.4% | 10.35% | 12.18% | 13.5% | 13.91% | 12.09% | 11.71% | 14.16% | 11.02% | 10.11% | 11.84% | 8.51% | 8.83% | 9.85% | 10.4% | 10.38% | 10.21% | 10.24% | 12.64% | 12.08% | 11.27% | 9.87% | 9.52% | 10.97% | 13.6% | 13.24% | 18.52% | 11.84% | 9.52% |
| Research & Development | 0 | 71.07K | 86.71K | 65.43K | 32.36K | 40.91K | 44.74K | 44.82K | 18.21K | 34.06K | 49.24K | 234.81K | 93.59K | 60.6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.16% | 0.22% | 0.18% | 0.1% | 0.15% | 0.14% | 0.12% | 0.06% | 0.15% | 0.18% | 0.88% | 0.34% | 0.18% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | -44.74K | 61.01K | 0 | 36.11K | 85.49K | 31.63K | 108.14K | 47.95K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 472.15K | 400K | 400K | 500K | 500K |
| Operating Income | 10.75M | 8.13M | 6.54M | 4.3M | 1.53M | -426.14K | 1.17M | 2.65M | 3.85M | 1.53M | 4.34M | 4.43M | 1.32M | 7.78M | 5.99M | 5.3M | 4.76M | 3.26M | 4.24M | 3.23M | 1.91M | 1.11M | 1.18M | 1.15M | 549.14K | 1.17M | 733.62K | 700K | -1.3M | 400K | 200K |
| Operating Margin % | 25.45% | 18.49% | 16.88% | 12.08% | 4.76% | -1.54% | 3.72% | 7.27% | 11.85% | 6.78% | 15.81% | 16.51% | 4.85% | 22.69% | 18.7% | 17.97% | 16.46% | 11.97% | 16.49% | 11.67% | 9.14% | 5.88% | 5.24% | 5.8% | 2.98% | 6.78% | 4.98% | 5.15% | -12.04% | 2.63% | 1.19% |
| Operating Income Growth % | - | 24.27% | 52.08% | 181.2% | 458.84% | -136.35% | -55.81% | -31.16% | 152.47% | -64.85% | -1.95% | 236.3% | -83.07% | 29.89% | 13.05% | 11.43% | 45.91% | -23.09% | 31.29% | 69.42% | 72.09% | -6.06% | 2.82% | 108.76% | -53.04% | 59.38% | 4.8% | 153.85% | -425% | 100% | 128.57% |
| EBITDA | 11.25M | 8.58M | 6.99M | 4.78M | 2.02M | 93.67K | 1.74M | 3.19M | 4.28M | 1.96M | 4.78M | 4.88M | 1.77M | 8.2M | 6.42M | 5.77M | 5.21M | 3.75M | 4.73M | 3.73M | 2.44M | 1.65M | 1.74M | 1.64M | 1.06M | 1.77M | 1.21M | 1.1M | -900K | 900K | 700K |
| EBITDA Margin % | 26.62% | 19.52% | 18.05% | 13.44% | 6.3% | 0.34% | 5.52% | 8.76% | 13.17% | 8.71% | 17.39% | 18.17% | 6.52% | 23.91% | 20.03% | 19.55% | 18.04% | 13.76% | 18.41% | 13.5% | 11.69% | 8.75% | 7.72% | 8.3% | 5.77% | 10.28% | 8.19% | 8.09% | -8.33% | 5.92% | 4.17% |
| EBITDA Growth % | 39.36% | 22.67% | 46.15% | 136.43% | 2060.5% | -94.62% | -45.5% | -25.44% | 118.32% | -58.93% | -2.01% | 175.51% | -78.42% | 27.77% | 11.28% | 10.65% | 39.05% | -20.76% | 26.73% | 53.09% | 47.93% | -5.08% | 5.76% | 54.53% | -40.11% | 47.15% | 9.62% | 222.22% | -200% | 28.57% | 450% |
| D&A (Non-Cash Add-back) | 495.8K | 451.52K | 453.52K | 484.92K | 494.63K | 519.81K | 568.53K | 540.98K | 429.68K | 435.56K | 434.4K | 445.69K | 452.39K | 418.15K | 426.39K | 467.3K | 455.59K | 488.46K | 491.53K | 504.24K | 532.74K | 541.04K | 557.94K | 495.67K | 513.47K | 604.99K | 472.15K | 400K | 400K | 500K | 500K |
| EBIT | 10.75M | 8.13M | 6.54M | 4.3M | 1.53M | -426.14K | 1.17M | 2.65M | 3.85M | 1.53M | 4.34M | 4.43M | 1.32M | 7.78M | 5.99M | 5.3M | 4.76M | 3.26M | 4.24M | 3.23M | 1.91M | 1.11M | 1.18M | 1.15M | 549.14K | 1.17M | 733.62K | 700K | -1.3M | 400K | 200K |
| Net Interest Income | 1.72M | 1.26M | 728.3K | 359.62K | 12.15K | 21.38K | 109.75K | 167.68K | 160.65K | 88.84K | 33.78K | 36.42K | 40.61K | 35.81K | 49.35K | 56.15K | 99.37K | 327.26K | 640.41K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.72M | 1.26M | 728.3K | 359.62K | 12.15K | 21.38K | 109.75K | 167.68K | 160.65K | 88.84K | 33.78K | 36.42K | 40.61K | 35.81K | 49.35K | 56.15K | 99.37K | 327.26K | 640.41K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 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 |
| Other Income/Expense | 2.06M | 1.6M | 755.56K | 406.45K | 63.91K | 57.94K | 136.88K | 228.69K | 215.22K | 124.95K | 119.27K | 68.05K | 148.75K | 83.76K | 89.7K | 81.26K | 142.87K | 345.01K | 712.25K | 677.89K | 460.92K | 244.52K | 121.89K | 139.88K | 179.62K | 305.83K | 459.32K | 400K | 200K | 500K | 600K |
| Pretax Income | 12.82M | 9.73M | 7.3M | 4.71M | 1.59M | -368.2K | 1.31M | 2.88M | 4.07M | 1.65M | 4.46M | 4.5M | 1.47M | 7.87M | 6.08M | 5.38M | 4.9M | 3.61M | 4.95M | 3.91M | 2.37M | 1.35M | 1.3M | 1.29M | 728.75K | 1.48M | 1.19M | 1.1M | -1.1M | 900K | 800K |
| Pretax Margin % | 30.33% | 22.14% | 18.83% | 13.22% | 4.96% | -1.33% | 4.15% | 7.9% | 12.51% | 7.33% | 16.24% | 16.76% | 5.4% | 22.93% | 18.98% | 18.24% | 16.95% | 13.23% | 19.26% | 14.13% | 11.35% | 7.18% | 5.78% | 6.5% | 3.96% | 8.55% | 8.1% | 8.09% | -10.19% | 5.92% | 4.76% |
| Income Tax | 2.04M | 1.59M | 1.48M | 1.03M | 327.95K | -186.65K | 145.52K | 538.94K | 993.28K | 515.67K | 1.29M | 1.31M | 298.06K | 2.3M | 1.69M | 1.52M | 1.33M | 871.82K | 1.53M | 1.36M | 808.54K | 372.94K | 339.79K | 321.57K | 183K | 442.04K | 410K | 400K | -400K | 300K | 300K |
| Effective Tax Rate % | 15.95% | 16.3% | 20.29% | 21.87% | 20.59% | 50.69% | 11.12% | 18.7% | 24.41% | 31.23% | 28.83% | 29.23% | 20.33% | 29.29% | 27.81% | 28.32% | 27.24% | 24.18% | 30.89% | 34.86% | 34.17% | 27.59% | 26.13% | 25% | 25.11% | 29.97% | 34.37% | 36.36% | 36.36% | 33.33% | 37.5% |
| Net Income | 10.77M | 8.14M | 5.82M | 3.68M | 1.27M | -181.54K | 1.16M | 2.34M | 3.08M | 1.14M | 3.18M | 3.18M | 1.17M | 5.56M | 4.39M | 3.86M | 3.56M | 2.73M | 3.42M | 2.54M | 1.56M | 978.92K | 960.83K | 964.7K | 545.75K | 1.03M | 782.94K | 700K | -700K | 600K | 500K |
| Net Margin % | 25.49% | 18.53% | 15.01% | 10.33% | 3.94% | -0.65% | 3.69% | 6.42% | 9.46% | 5.04% | 11.56% | 11.86% | 4.3% | 16.22% | 13.7% | 13.08% | 12.34% | 10.03% | 13.31% | 9.2% | 7.47% | 5.2% | 4.27% | 4.88% | 2.97% | 5.99% | 5.32% | 5.15% | -6.48% | 3.95% | 2.98% |
| Net Income Growth % | 51.61% | 40.03% | 58.14% | 190.65% | 796.87% | -115.6% | -50.33% | -23.83% | 170.82% | -64.24% | -0.23% | 172.55% | -79% | 26.7% | 13.81% | 8.21% | 30.43% | -20.12% | 34.47% | 63.33% | 59.16% | 1.88% | -0.4% | 76.76% | -47.17% | 31.95% | 11.85% | 200% | -216.67% | 20% | 0% |
| Net Income (Continuing) | 10.77M | 8.14M | 5.82M | 3.68M | 1.27M | -181.54K | 1.16M | 2.34M | 3.08M | 1.14M | 3.18M | 3.18M | 1.17M | 5.56M | 4.39M | 3.86M | 3.56M | 2.73M | 3.42M | 2.54M | 1.56M | 978.92K | 960.83K | 964.7K | 545.75K | 1.03M | 782.94K | 700K | -700K | 600K | 500K |
| Discontinued Operations | 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 |
| 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) | 3.73 | 3.02 | 2.29 | 1.49 | 0.52 | -0.08 | 0.49 | 0.98 | 1.31 | 0.49 | 1.38 | 1.39 | 0.51 | 2.48 | 1.99 | 1.77 | 1.67 | 1.29 | 1.63 | 1.23 | 0.76 | 0.48 | 0.47 | 0.47 | 0.26 | 0.50 | 0.37 | 0.33 | -0.31 | 0.26 | 0.21 |
| EPS Growth % | 41.95% | 31.88% | 53.69% | 186.54% | 789.66% | -115.39% | -50% | -25.19% | 167.35% | -64.49% | -0.72% | 172.55% | -79.44% | 24.62% | 12.43% | 5.99% | 29.46% | -20.86% | 32.52% | 61.84% | 58.33% | 2.13% | 0% | 80.77% | -48% | 35.14% | 12.12% | 206.45% | -219.23% | 23.81% | 10.53% |
| EPS (Basic) | - | 3.14 | 2.34 | 1.50 | 0.52 | -0.08 | 0.49 | 0.99 | 1.32 | 0.49 | 1.39 | 1.40 | 0.52 | 2.52 | 2.02 | 1.79 | 1.67 | 1.30 | 1.65 | 1.24 | 0.77 | 0.48 | 0.48 | 0.47 | 0.27 | 0.50 | 0.38 | 0.33 | -0.31 | 0.26 | 0.21 |
| Diluted Shares Outstanding | 2.89M | 2.7M | 2.54M | 2.47M | 2.43M | 2.41M | 2.4M | 2.39M | 2.35M | 2.32M | 2.3M | 2.29M | 2.29M | 2.24M | 2.2M | 2.18M | 2.14M | 2.11M | 2.1M | 2.08M | 2.05M | 2.03M | 2.04M | 2.06M | 2.07M | 2.07M | 2.09M | 2.2M | 2.22M | 2.35M | 2.67M |
| Basic Shares Outstanding | 2.79M | 2.59M | 2.49M | 2.45M | 2.43M | 2.41M | 2.39M | 2.37M | 2.33M | 2.31M | 2.29M | 2.27M | 2.25M | 2.21M | 2.17M | 2.15M | 2.13M | 2.11M | 2.08M | 2.05M | 2.01M | 2.02M | 2.03M | 2.05M | 2.06M | 2.06M | 2.09M | 2.2M | 2.22M | 2.35M | 2.44M |
| Dividend Payout Ratio | - | 31.9% | 28.86% | 13.31% | - | - | 205.23% | 202.2% | 75.74% | 203.17% | 89.64% | 53.35% | 383.69% | 78.31% | 93.76% | 105.78% | 113.54% | 184.55% | 136.75% | 44.89% | 44.01% | 61.93% | 158.19% | 37.12% | 56.65% | 19.97% | 26.66% | 28.57% | - | 133.33% | 180% |
Project-based revenue volatility
As indicated by the quarterly financial data, ESP's revenue growth remains highly volatile, fluctuating between a 17.4% contraction in 2025Q4 and a 32.1% expansion in 2025Q2, which highlights the inherent unpredictability of the company's project-based defense and industrial contract delivery schedules.
The erratic top-line performance suggests that revenue recognition is heavily tied to specific program milestones rather than a steady stream of recurring demand. Investors should monitor whether the recent 10.9% growth in 2026Q3 represents a sustainable trend or merely the timing of contract completions.
According to the latest income statement filings, ESP has demonstrated significant margin improvement, with gross margins reaching 37.0% in 2026Q3, a notable recovery from the 23.2% trough observed in 2025Q2, suggesting improved pricing power or a more favorable mix of high-value defense work.
The expansion in gross margins appears to indicate that the company is successfully navigating the competitive bidding process for government contracts. This trend warrants further investigation to determine if these gains are sustainable or if they reflect temporary efficiencies in project execution.
Based on reported figures, ESP has maintained disciplined SG&A spending, which has allowed operating margins to climb to 26.1% in 2026Q3, demonstrating that the company is effectively scaling its operating income faster than its gross profit during periods of revenue growth.
The ability to keep SG&A relatively flat while revenue fluctuates suggests a lean cost structure that is well-suited for a specialized manufacturer. This operating leverage implies that incremental revenue gains could disproportionately benefit the bottom line, provided the company maintains its current expense discipline.
As reported in financial statements, ESP's net income has consistently tracked closely with operating income, with net margins reaching 25.1% in 2026Q3, indicating that the company's profitability is primarily driven by core manufacturing activities rather than non-operating items or tax anomalies.
The absence of significant R&D expenses suggests that the company relies on established technologies, which simplifies the earnings profile but may limit long-term innovation. Investors should monitor the impact of interest income on net margins, as the company's large cash position may be masking underlying operational performance.
Quick answers to the most common questions about buying ESP stock.
For fiscal year 2025, Espey Mfg. & Electronics Corp. (ESP) reported total revenue of $44.0M. This represents a 161.6% increase compared to $16.8M in 1996.
Espey Mfg. & Electronics Corp. (ESP) is profitable, generating $8.1M in net income for the fiscal year ending 2025 with a net profit margin of 18.5%.
Espey Mfg. & Electronics Corp. (ESP) reported an operating income of $8.1M, resulting in an operating profit margin of 18.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Espey Mfg. & Electronics Corp. (ESP) generated $12.7M in gross profit for the year, representing a gross profit margin of 28.9%. This demonstrates the company's core pricing power and production efficiency.