ESE ESCO TECHNOLOGIES INC

Overview and Growth

In fiscal 2025, ESCO TECHNOLOGIES INC recorded $1.10B of revenue, net income of $299.22M, and an operating cash inflow of $241.94M. Revenue of $1.10B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 19.2% from $919.13M in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $11.55, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 193.1% increase from fiscal 2024 diluted EPS of $3.94. The revenue-to-assets relationship was 0.45x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $461.08M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 42.1% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $170.35M, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 15.6% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $299.22M, completing the progression from revenue through gross and operating profitability to the final reported result. The final earnings result represented 27.3% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $152.85M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 14.0% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $36.55M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 23.9%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

Total assets were $2.41B, supported by $869.52M of liabilities and $1.54B of shareholder equity. At period end, current assets of $688.51M compared with current liabilities of $508.15M, defining the company’s short-term resource position. The current ratio was 1.35x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $101.35M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 19.9%, excluding receivables and other current assets. Total debt was $186.00M, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.12x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 7.7%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 36.1%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 4.2%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

The company reported $241.94M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 0.81x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $36.32M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 15.0% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $205.62M, leaving a positive amount after capital expenditures. Free cash flow represented 18.8% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 8.5% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Sep 30, 2025. Analysis generated Oct 21, 2026.