Espey Mfg. & Electronics Reports Remarkable Quarterly Growth And Expanding Backlog

$ESP

Espey Mfg. & Electronics (NYSE:ESP) has demonstrated a significant uptick in its financial performance, with a notable 16% increase in its stock value following the release of its third-quarter earnings. A key player in the defense and industrial power supply markets reported a net income of 63 cents per share for the quarter ended March 31, up from 40 cents per share in the same quarter the previous year.

Reflecting a 65.2% surge in net income to $1.7 million, up from $1 million year-over-year. The company’s net sales saw a substantial rise, reaching $10.3 million, which marks a 24.8% increase from the $8.3 million reported in the same period last year. This growth trajectory continued over the first nine months of the fiscal year, with net sales climbing to $34.4 million, a 26.7% increase from $27.1 million in the prior-year period.

The net income rose by 32.9% to $5.2 million, or $1.95 per share, compared to $3.9 million, or $1.56 per share, a year ago. A particularly aspect of Espey’s recent performance is the expansion of its order backlog, which stood at $138 million as of March 31, up by 63.9% from $84.2 million a year earlier. This increase is supported by a significant influx of new orders totaling $75.1 million during the first nine months of fiscal 2025, more than double the $27.8 million in new orders booked during the same period in the previous fiscal year. This growth was notably boosted by a $19.8 million contract, underscoring a strong production pipeline for the near term.

David O’Neil, President and CEO of Espey, attributed the company’s success to strategic initiatives aimed at improving margins and operational execution. He emphasized that the growth in backlog is a direct result of a record year for new orders, highlighting the company’s effective management and operational strategies. While specific margin data was not disclosed, O’Neil’s remarks about improving gross profits on key programs suggest that the company is achieving enhanced profitability in high-contribution segments.

Espey’s robust financial and operational performance positions it well for continued growth and success in its market sectors. The significant increase in its backlog indicates sustained demand for its products, which is likely to drive future revenue growth. This performance not only reflects the company’s strong market position but also its ability to capitalize on growth opportunities in its core markets of defense and industrial power supplies.

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