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ESCO Technologies First Quarter FY 2026 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO February 5, 2026 1
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Forward Looking Statement Statements in this presentation regarding Management’s intentions, expectations and guidance for fiscal 2026, including restructuring and cost reduction actions, sales, orders, revenues, margin, earnings, Adjusted EPS, acquisition related amortization, and any other statements which are not strictly historical, are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. securities laws. Investors are cautioned that such statements are only predictions and speak only as of the date of this presentation, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and the following: the impacts of climate change and related regulation of greenhouse gases; the impacts of labor disputes, civil disorder, wars, elections, political changes, tariffs and trade disputes, terrorist activities, cyberattacks or natural disasters on the Company’s operations and those of the Company’s customers and suppliers; disruptions in manufacturing or delivery arrangements due to shortages or unavailability of materials or components or supply chain disruptions; inability to access work sites; the timing and content of future contract awards or customer orders; the timely appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties or data breaches; the availability of acquisitions; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; material changes in the costs and availability of certain raw materials; material changes in the cost of credit; changes in laws and regulations including but not limited to changes in accounting standards and taxation; changes in interest, inflation and employment rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration and performance of acquired businesses. During the call, the Company may discuss some non-GAAP financial measures in describing the Company’s operating results. A reconciliation of these measures to their most comparable GAAP measures can be found in the press release issued today and found on the Company’s website at www.escotechnologies.com under the link: Investor Relations. In addition, the financial results presented in this presentation include certain non-GAAP financial measures such as EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS. These non-GAAP financial measures are reconciled to their respective GAAP equivalents in the “Reconciliation of Non-GAAP Measures” presented below. 2
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Q1 Results – Continuing Operations ($ in Millions, except per share amounts) Q1’25 Q1’26 Delta $ Delta % Entered Orders $229.2 557.2 328.0 143.0% Sales 214.6 289.7 75.1 35.0% Adjusted EBIT 33.5 56.1 22.6 67.3% Adj EBIT Margin 15.6% 19.4% +3.8 pts Adjusted EBITDA 41.5 65.0 23.5 56.7% Adj EBITDA Margin 19.3% 22.5% +3.2 pts EPS GAAP-Cont Ops $0.79 $1.11 $0.32 40.5% EPS Adjusted-Cont Ops $0.95 $1.64 $0.69 72.6% Entered Orders • Orders +$328M (+143%) • Organic Orders +$90M (+39%) + Maritime +$238M (+104%) • Order strength across Navy, Aerospace, Test & Utility markets • Q1 Book-to-Bill of 1.92 • Backlog of $1.4B (+24% from 9/30/25) Sales • Sales +$75M (+35%) / Organic Sales +$24M (+11%) • Maritime Sales of +$51M (+24%) Adjusted EBIT • Adjusted EBIT Margin increased 380 basis points to 19.4% • Q1 Incremental margin of 30% Adjusted EPS • Adjusted EPS of $1.64 increased 73% 214.6 289.7 Q1'25 Q1'26 Sales 33.5 56.1 Q1'25 Q1'26 Adjusted EBIT 19.4% 15.6% $0.95 $1.64 Q1'25 Q1'26 Adjusted EPS 229.2 557.2 Q1'25 Q1'26 Entered Orders 3
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A&D Continuing Operations – Q1 ($ in Millions) Q1’25 Q1’26 Delta $ Delta % Entered Orders $74.8 382.3 307.5 410.8% Sales 81.9 143.8 61.9 75.7% Adjusted EBIT 17.5 38.1 20.6 118.2% Adj EBIT Margin 21.3% 26.5% +5.2 pts Adjusted EBITDA 20.1 41.4 21.3 105.8% Adj EBITDA Margin 24.6% 28.8% +4.2 pts Prior YE 12/31/25 Delta $ Delta % Backlog $803.0 1,041.5 238.5 29.7% Entered Orders • Orders +$307M (+411%) / Organic Orders +$69M (+92%) • Navy – Q1 included $238M of Maritime Orders & balance of Block VI Virginia Class XHT funding for first 2 boats at Globe • Aerospace – strong Military & Commercial • Q1 Book-to-Bill of 2.66 / Backlog of $1.04B up $239M (+30%) from 9/30/25 Sales • Sales +$62M (+76%) / Organic Sales +$11M (+14%) • Aerospace +$16M (+27%) - Commercial +$3M & Defense +$13M • Navy +$44M (+242%) / Organic Sales +$2.5M (+14%) Adjusted EBIT • Adjusted EBIT Margin increased 520 basis points to 26.5% • Driven by leverage on higher volume (including the addition of Maritime), price increases, and mix, partially offset by inflationary pressures 81.9 143.8 Q1'25 Q1'26 Sales 17.5 38.1 Q1'25 Q1'26 Adjusted EBIT 26.5% 21.3%74.8 382.3 Q1'25 Q1'26 Entered Orders 4
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USG – Q1 ($ in Millions) Q1’25 Q1’26 Delta $ Delta % Entered Orders $89.6 98.8 9.2 10.3% Sales 86.7 87.5 0.8 1.0% Adjusted EBIT 20.5 19.6 (0.9) -4.4% Adj EBIT Margin 23.6% 22.4% -1.2 pts Adjusted EBITDA 24.4 23.7 (0.7) -2.9% Adj EBITDA Margin 28.1% 27.0% -1.1 pts Prior YE 12/31/25 Delta $ Delta % Backlog $143.5 154.8 11.3 7.9% Entered Orders • Doble +$11M (+15%) - Strong orders quarter for Services, Condition Monitoring, and Offline Test equipment • NRG down $2M (-10%) - lower wind orders in U.S. & China, partially offset by higher solar orders • Q1 Book-to-Bill of 1.13 / Backlog +$11M (+8%) from 9/30/25 Sales • Doble +$4M (+6%) - higher Condition Monitoring, Offline Test Equipment and Services, partially offset by lower Protection Testing • NRG down $3M (-22%) - lower wind and solar hardware sales Adjusted EBIT • Driven by price increases and leverage on higher volume at Doble, more than offset by mix, inflationary pressures, and deleverage on lower volume at NRG 86.7 87.5 Q1'25 Q1'26 Sales +1.0% 20.5 19.6 Q1'25 Q1'26 Adjusted EBIT 22.4%23.6% 89.6 98.8 Q1'25 Q1'26 Entered Orders 5
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Test – Q1 ($ in Millions) Q1’25 Q1’26 Delta $ Delta % Entered Orders $64.8 76.0 11.2 17.3% Sales 46.1 58.3 12.2 26.7% Adjusted EBIT 4.9 8.0 3.1 64.5% Adj EBIT Margin 10.6% 13.8% +3.2 pts Adjusted EBITDA 6.3 9.5 3.2 51.7% Adj EBITDA Margin 13.6% 16.3% +2.7 pts Prior YE 12/31/25 Delta $ Delta % Backlog $187.2 204.9 17.7 9.4% Entered Orders • Orders +$11M (+17%) • Strong quarter for U.S. Test & Measurement (EMC), Industrial Shielding & Medical Shielding orders • Received a large T&M (EMC) chamber order in Japan • Q1 Book-to-Bill of 1.30 / Backlog +$18M (+9%) from 9/30/25 Sales • Sales +$12M (+27%) • Strong quarter for U.S and European Test & Measurement (EMC) and Filter sales Adjusted EBIT • Leverage on higher volume and price increases, partially offset by inflationary pressures 46.1 58.3 Q1'25 Q1'26 Sales 4.9 8.0 Q1'25 Q1'26 Adjusted EBIT 13.8% 10.6% 64.8 76.0 Q1'25 Q1'26 Entered Orders 6
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Cash Flow & Capital Expenditures – Continuing Operations ($ in Millions) Cash Flow Q1’25 Q1’26 Delta Operating Cash Flow-Contin Ops $29.2 68.9 39.7 Capital Expenditures – Contin Ops (5.1) (5.9) (0.8) Acquisitions/Divestitures - (5.1) (5.1) EBITDA Leverage 0.4X 0.4X - Operating Cash Flow • Improvement mainly driven by higher earnings and an increase in contract liabilities. Capital Expenditures • Modest increase in A&D segment Capex Acquisitions/Divestitures • Maritime final working capital settlement of $5M in Q1’26 EBITDA Leverage • Leverage ratio at 0.4X - strong cash generation and healthy balance sheet 29.2 68.9 Q1'25 Q1'26 Operating Cash Flow 5.1 5.9 Q1'25 Q1'26 Capital Spending 7
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FY’26 Guidance – Continuing Operations Sales • Raising guidance to increase 18% to 21% and be in the range of $1.29B to $1.33B • Increase of $20M from initial November guidance • A&D – Raising guidance to increase 34% - 39% (increasing from 33% - 38%) • Organic Growth of 7% - 9% (increasing from 6% – 8%) • Maritime Revenue of $230M - $245M • USG - Expected to increase 4% - 6% (Doble growth of 6% -8%, partially offset by lower renewables) • Test – Raising guidance to increase 9% - 11% (increasing from 3% - 5%) Effective Tax Rate • Adjusting expected range to 23.0% to 23.5% (from 23.7% to 24.1%) Adjusted EPS • Full Year - Raising to be in the range of $7.90 - $8.15 per share (31% - 35% growth) • Midpoint increase of $0.38 from initial November guidance of $7.50 - $7.80 per share (24% - 29% growth) • Q2’26 - Expected to be in the range of $1.75 - 1.85 per share (50% - 58% growth compared to Q2’25 Adjusted EPS) $2.28 $3.09 $3.97 $4.77 $6.03 FY'21 FY'22 FY'23 FY'24 FY'25 FY'26 Adjusted EPS Trends +31-35% +20% 605 746 856 919 1,095 FY'21 FY'22 FY'23 FY'24 FY'25 FY'26 Sales Trends ($in Millions) +18-21% +7% 84 Year CAGR (FY21-FY’25) = 16.0% 4 Year CAGR (FY’21-FY’25) = 27.5% +23% +15% +36% +28% +19% 1,290- 1,330 +26% 7.90 - 8.15
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9 ESCO Technologies First Quarter FY 2026 Earnings Call Q&A
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Reconciliation of Non-GAAP Measures 10