St. Louis, Aug. 07, 2025 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE:ESE) (ESCO, or the Company) today reported its operating results for the third quarter ended June 30, 2025 (Q3 2025).

On July 21, 2025, the Company announced that it had completed the sale of VACCO Industries. The VACCO operating results are presented as Discontinued Operations in the attached tables and are excluded from the following discussion of the Company's results from Continuing Operations for the comparable periods. Prior Adjusted Earnings per Share guidance of $1.58 to $1.72 for the third quarter included VACCO's estimated results, and actual Adjusted Earnings per Share on this basis was $1.67.

Operating Highlights

Q3 2025 Sales increased $62.7 million (27 percent) to $296.3 million compared to $233.6 million in Q3 2024. Organic Sales (excluding $37.1 million of Maritime sales for the 2 months post-closing) increased $25.6 million (11 percent) to $259.2 million.
Q3 2025 Entered Orders were $749.0 million with a book-to-bill ratio of 2.53x, resulting in record backlog of $1.17 billion. Q3 Orders included $364.2 million of acquired backlog at Maritime.
Q3 2025 GAAP EPS from Continuing Operations decreased 13 percent to $0.96 per share compared to $1.10 per share in Q3 2024. The decrease in GAAP EPS was primarily due to costs related to the Maritime acquisition in the quarter.
Q3 2025 Adjusted EPS from Continuing Operations increased 25 percent to $1.60 per share compared to $1.28 per share in Q3 2024.
Net Cash provided by Operating Activities from Continuing Operations was $88 million YTD, an increase of $25 million compared to the prior year period. Net Cash provided by Operating Activities from Discontinued Operations was $44 million for total Cash Flow from Operating Activities of $132 million YTD, an increase of $77 million compared to the prior year period.

Bryan Sayler, Chief Executive Officer and President, commented, "It has been a transformational period at ESCO as we have focused on integrating ESCO Maritime Solutions (Maritime) and finalizing the divestiture of VACCO Industries. With the completion of these transactions, we have taken an important step forward in the evolution of ESCO. We now have a meaningfully larger Navy business and have exited the space business. The impact of these changes can be seen both in our top and bottom line results, as our Sales increased 27 percent, Adjusted EPS from Continuing Operations increased 25 percent, and Adjusted EBIT margin increased 180 basis points to 21.1 percent in the quarter.

"Our newly enhanced portfolio of businesses is well positioned in end markets with attractive long term growth dynamics. With this strong market presence and our record backlog, we expect to continue to deliver above market growth and are pleased to issue Q4 guidance that once again raises our full year FY 2025 outlook."

Segment Performance

Aerospace & Defense (A&D)

Sales increased $49.1 million (56 percent) to $136.3 million in Q3 2025 from $87.2 million in Q3 2024. The sales strength was driven by higher Navy (increased $34 million or 200 percent) and Aerospace (increased $13 million or 19 percent) compared to the prior year. Organic Sales (excluding $37.1 million of Maritime revenue for the 2 months post-closing) increased $12.0 million (14 percent) to $99.2 million.
EBIT increased $16.4 million in Q3 2025 to $36.6 million from $20.2 million in Q3 2024. Adjusted EBIT increased $19.1 million in Q3 2025 to $39.3 million (28.8 percent margin) from $20.2 million (23.2 percent margin) in Q3 2024. Margin improvement was driven by price increases, mix, and leverage on higher volume, partially offset by inflationary pressures. The addition of Maritime also had a positive impact on the Adjusted EBIT margin in the quarter.
Entered Orders increased $492 million (547 percent) to $582 million in Q3 2025 compared to $90 million in Q3 2024. Q3 2025 included $364 million of acquired backlog at Maritime. Without this impact, A&D orders increased $128 million (142 percent) to $218 million. The orders strength was driven by over $80 million in Virginia Class and Columbia Class orders at Globe and almost $50 million in orders at Maritime during the quarter. The segment book-to-bill was 4.27x in the quarter (1.60x without the acquired Maritime backlog), resulting in record backlog of $832 million.

Utility Solutions Group (USG)

Sales increased $2.1 million (2 percent) to $92.4 million in Q3 2025 from $90.3 million in Q3 2024. Doble's sales increased by $0.7 million (1 percent) driven by higher offline testing products, partially offset by lower protection testing products revenue. NRG sales increased $1.4 million (8 percent) on higher wind and solar hardware sales. USG Q3 YTD Sales increased $9.2 million (4 percent) as Doble sales are up 6 percent, partially offset by lower NRG sales due to renewables market weakness.
EBIT decreased $0.7 million in Q3 2025 to $21.5 million from $22.2 million in Q3 2024. Adjusted EBIT decreased $0.4 million in Q3 2025 to $21.8 million (23.6 percent margin) from $22.2 million (24.6 percent margin) in Q3 2024. Margin was unfavorably impacted by inflationary pressures and mix, partially offset by price increases. USG's Q3 YTD Adjusted EBIT margin of 23.4 percent has increased 130 basis points over the prior year as price increases and leverage on higher volume have more than offset inflationary pressures.
Entered Orders increased $6 million (6 percent) to $106 million in Q3 2025. Record quarterly orders at Doble of $87 million increased by $6 million (7 percent) over the prior year on strength across all product lines and highlighted by a large HV Test System order. NRG orders were flat to the prior year as lower orders in the U.S. were offset by higher wind orders in Canada and solar orders in Europe. The segment book-to-bill was 1.14x in the quarter, resulting in backlog of $137 million.

RF Test & Measurement (Test)

Sales increased $11.6 million (21 percent) to $67.7 million in Q3 2025 from $56.1 million in Q3 2024. Sales growth was driven by higher Test and Measurement (EMC), industrial shielding, and services sales.
EBIT and Adjusted EBIT increased $1.4 million in Q3 2025 to $10.7 million (15.9 percent margin) from $9.3 million (16.6 percent margin) in Q3 2024. Margin was unfavorably impacted by inflationary pressures and tariffs, partially offset by leverage on higher volume and price increases.
Entered Orders decreased $4 million (6 percent) to $61 million in Q3 2025. The decrease was primarily driven by lower U.S. industrial orders (large project booked in Q3 2024) partially offset by a strong quarter for Test & Measurement. The segment book-to-bill was 0.90x in the quarter, resulting in backlog of $196 million.

Business Outlook – 2025

FY 2025 full year guidance for revenue from continuing operations is being increased by $20 million and is now expected to be in the range of $1.075 to $1.105 billion (17 to 20 percent increase over the prior year). Organic revenue from continuing operations (excluding Maritime revenue of $90 to $100 million) is expected to be $985 to $1,005 million (7 to 9 percent increase over the prior year).

	Guidance Range ($ Millions)
Prior Guidance including Maritime (May)	$	1,180		$	1,210
Less Discontinued Operations (VACCO)	$	(125	)	$	(125	)
Guidance Increase	$	20		$	20
Updated Sales Guidance	$	1,075		$	1,105

Due to continued market strength and improvement in operational performance, our FY 2025 Adjusted EPS guidance reflects an increase and narrowing of our guidance range to $5.75 to $5.90 (21 to 24 percent growth over FY 2024 EPS from Continuing Operations of $4.77).

	Guidance Range
Previous FY 2025 Adjusted EPS Guidance including Maritime (May)	$	5.85		$	6.15
Less Discontinued Operations (VACCO)	$	(0.50	)	$	(0.50	)
Continuing Operations Guidance Increase	$	0.40		$	0.25
Updated FY 2025 Adjusted EPS Guidance - Continuing Operations	$	5.75		$	5.90

Management's expectation is for Q4 Adjusted EPS from Continuing Operations to be in the range of $2.04 to $2.19 (14 to 22 percent growth over Q4 2024 Adjusted EPS from Continuing Operations of $1.79).

Dividend Payment

The next quarterly cash dividend of $0.08 per share will be paid on October 16, 2025 to stockholders of record on October 2, 2025.

Conference Call

The Company will host a conference call today, August 7, at 4:00 p.m. Central Time, to discuss the Company's Q3 2025 results. A live audio webcast and an accompanying slide presentation will be available in the Investor Center of ESCO's website. Participants may also access the webcast using this registration link. For those unable to participate, a webcast replay will be available after the call in the Investor Center of ESCO's website.

Forward-Looking Statements

Statements in this press release regarding Management's intentions, expectations and guidance for fiscal 2025, 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, 2024 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.

Non-GAAP Financial Measures

The financial measures EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are presented in this press release. The Company defines "EBIT" as earnings before interest and taxes, "EBITDA" as earnings before interest, taxes, depreciation and amortization, "Adjusted EBIT" and "Adjusted EBITDA" as excluding the net impact of the items described in the attached Reconciliation of Non-GAAP Financial Measures, and "Adjusted EPS" as GAAP earnings per share excluding the net impact of the items described and reconciled in the attached Reconciliation of Non-GAAP Financial Measures.

EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes EBIT, Adjusted EBIT, EBITDA, and Adjusted EBITDA are useful in assessing the operational profitability of the Company's business segments because they exclude interest, taxes, depreciation, and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

About ESCO

ESCO Technologies is a global provider of highly engineered products and solutions serving diverse end-markets. It manufactures filtration and fluid control products, advanced composites, as well as signature and power management solutions for aviation, Navy, and industrial customers. ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems; and provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Headquartered in St. Louis, Missouri, ESCO and its subsidiaries have offices and manufacturing facilities worldwide. For more information on ESCO and its subsidiaries, visit ESCO's website at www.escotechnologies.com.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)

						Three Months Ended June 30, 2025			Three Months Ended June 30, 2024

Net Sales					$	296,344			233,568
Cost and Expenses:
		Cost of sales				174,350			135,373
		Selling, general and administrative expenses				62,042			51,013
		Amortization of intangible assets				16,753			8,145
		Interest expense				7,921			3,335
		Other (income) expenses, net				2,209			(264	)
			Total costs and expenses			263,275			197,602

Earnings before income taxes						33,069			35,966
Income tax expense						8,314			7,654

			Earnings from continuing operations			24,755			28,312

Earnings from discontinued operations, net of tax expense
(benefit) of $599 and $288						1,310			918

			Net earnings		$	26,065			29,230

				Diluted - GAAP
				Continuing operations	$	0.96			1.10
				Discontinued operations		0.05			0.03
				Net earnings	$	1.01			1.13

				Diluted - As Adjusted Basis
				Continuing Operations	$	1.60	(1	)	1.28		(2	)

				Diluted average common shares O/S:		25,918			25,840

(1	)	Q3 2025 Adjusted EPS from continuing operations excludes $0.64 per share of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.01 of restructuring charges (primarily severance) within the USG segment, and $0.40 of acquisition related amortization.

(2	)	Q3 2024 Adjusted EPS from continuing operations excludes $0.18 per share of after-tax charges consisting of: $0.02 of Corporate acquisition costs, $0.01 or restructuring charges within the A&D and USG segments, and $0.15 of acquisition related amortization.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)

						Nine Months Ended June 30, 2025			Nine Months Ended June 30, 2024

Net Sales					$	742,714			645,621
Cost and Expenses:
		Cost of sales				431,068			378,427
		Selling, general and administrative expenses				171,305			152,607
		Amortization of intangible assets				32,735			24,585
		Interest expense				12,373			9,228
		Other expenses (income), net				1,947			404
			Total costs and expenses			649,428			565,251

Earnings before income taxes						93,286			80,370
Income tax expense						21,841			17,040

			Earnings from continuing operations			71,445			63,330

Earnings from discontinued operations, net of tax expense
(benefit) of $3,006 and $1,189						9,126			4,288

			Net earnings		$	80,571			67,618

				Diluted - GAAP
				Continuing operations		2.76			2.46
				Discontinued operations		0.35			0.16
				Net earnings	$	3.11			2.62

				Diluted - As Adjusted Basis
				Continuing Operations	$	3.71	(1	)	2.99	(2	)

				Diluted average common shares O/S:		25,876			25,844

(1	)	YTD Q3 2025 Adjusted EPS from continuing operations excludes $0.95 per share of after-tax charges consisting primarily of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.02 of restructuring charges within the Test and USG segments, and $0.70 of acquisition related amortization.

(2	)	YTD Q3 2024 Adjusted EPS from continuing operations excludes $0.53 per share of after-tax charges consisting of: $0.06 of MPE acquisition backlog and inventory step-up charges and acquisition costs, $0.03 of restructuring charges (primarily severance) within the Test, A&D and USG segments, and $0.44 of acquisition related amortization.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited) - Continuing Operations basis
(Dollars in thousands)

				GAAP				As Adjusted
				Q3 2025		Q3 2024		Q3 2025		Q3 2024
Net Sales
	Aerospace & Defense		$	136,324		87,235		136,324		87,235
	USG			92,357		90,277		92,357		90,277
	Test			67,663		56,056		67,663		56,056
		Totals	$	296,344		233,568		296,344		233,568

EBIT
	Aerospace & Defense		$	36,577		20,150		39,319		20,233
	USG			21,540		22,155		21,789		22,230
	Test			10,732		9,292		10,732		9,297
	Corporate			(27,859	)	(12,296	)	(9,184	)	(6,566	)
		Consolidated EBIT		40,990		39,301		62,656		45,194
		Less: Interest expense		(7,921	)	(3,335	)	(7,921	)	(3,335	)
		Less: Income tax expense		(8,314	)	(7,654	)	(13,297	)	(9,009	)
		Net earnings	$	24,755		28,312		41,438		32,850

Note 1: Adjusted net earnings of $41.4 million in Q3 2025 exclude $16.6 million (or $0.64 per share) of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.01 of restructuring charges (primarily severance) within the USG segment, and $0.40 of acquisition related amortization.

Note 2: Adjusted net earnings of $32.9 million in Q3 2024 exclude $4.5 million (or $0.18 per share) of after-tax charges consisting of: $0.02 of Corporate acquisition related costs, $0.01 of restructuring charges (primarily severance) within the A&D and USG segments, and $0.15 of acquisition related amortization.

EBITDA Reconciliation to Net earnings:								Q3 2025 -		Q3 2024 -
				Q3 2025		Q3 2024		As Adj		As Adj
Consolidated EBITDA			$	63,350		52,302		71,545		53,195
Less: Depr & Amort				(22,360	)	(13,001	)	(8,889	)	(8,001	)
Consolidated EBIT				40,990		39,301		62,656		45,194
Less: Interest expense				(7,921	)	(3,335	)	(7,921	)	(3,335	)
Less: Income tax expense				(8,314	)	(7,654	)	(13,297	)	(9,009	)
Net earnings			$	24,755		28,312		41,438		32,850

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited) - Continuing Operations basis
(Dollars in thousands)

				GAAP				As Adjusted
				YTD		YTD		YTD		YTD
				Q3 2025		Q3 2024		Q3 2025		Q3 2024
Net Sales
	Aerospace & Defense		$	307,819		241,279		307,819		241,279
	USG			269,784		260,570		269,784		260,570
	Test			165,111		143,772		165,111		143,772
		Totals	$	742,714		645,621		742,714		645,621

EBIT
	Aerospace & Defense		$	78,246		55,919		81,016		56,061
	USG			62,808		57,355		63,140		57,550
	Test			21,523		16,613		21,988		17,094
	Corporate			(56,918	)	(40,289	)	(28,142	)	(23,426	)
		Consolidated EBIT		105,659		89,598		138,002		107,279
		Less: Interest expense		(12,373	)	(9,228	)	(12,373	)	(9,228	)
		Less: Income tax		(21,841	)	(17,040	)	(29,279	)	(21,106	)
		Net earnings	$	71,445		63,330		96,350		76,945

Note 1: Adjusted net earnings of $96.4 million in YTD 2025 exclude $24.9 million (or $0.95 per share) of after-tax charges consisting of: $0.15 of Corporate acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties, $0.02 of restructuring charges within the Test and USG segments, and $0.70 of acquisition related amortization.

Note 2: Adjusted net earnings of $76.9 million in YTD 2024 exclude $13.6 million (or $0.53 per share) of after-tax charges consisting of $0.06 of MPE acquisition backlog and inventory step-up charges and acquisition costs, $0.03 of restructuring costs (primarily severance) within the Test, A&D and USG segments, and $0.44 of acquisition related amortization.

EBITDA Reconciliation to Net earnings:								YTD		YTD
				YTD		YTD		Q3 2025 -		Q3 2024 -
				Q3 2025		Q3 2024		As Adj		As Adj
Consolidated EBITDA			$	154,060		128,570		162,975		130,718
Less: Depr & Amort				(48,401	)	(38,972	)	(24,973	)	(23,439	)
Consolidated EBIT				105,659		89,598		138,002		107,279
Less: Interest expense				(12,373	)	(9,228	)	(12,373	)	(9,228	)
Less: Income tax expense				(21,841	)	(17,040	)	(29,279	)	(21,106	)
Net earnings			$	71,445		63,330		96,350		76,945

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

				June 30, 2025	September 30, 2024

Assets
	Cash and cash equivalents		$	78,716	65,963
	Accounts receivable, net			238,022	222,101
	Contract assets			91,727	66,712
	Inventories			237,110	195,465
	Other current assets			32,596	21,027
	Assets held for sale - current			76,552	97,381
		Total current assets		754,723	668,649
	Property, plant and equipment, net			167,236	149,251
	Intangible assets, net			745,079	403,524
	Goodwill			760,555	529,935
	Operating lease assets			46,796	37,476
	Other assets			17,208	13,791
	Assets held for sale - other			34,788	35,994
			$	2,526,385	1,838,620

Liabilities and Shareholders' Equity
	Current maturities of long-term debt		$	20,000	20,000
	Accounts payable			86,209	88,936
	Contract liabilities			205,591	80,844
	Other current liabilities			110,535	97,575
	Liabilities held for sale - current			74,505	62,499
		Total current liabilities		496,840	349,854
	Deferred tax liabilities			115,023	72,623
	Non-current operating lease liabilities			43,633	34,810
	Other liabilities			36,500	39,273
	Long-term debt			505,000	102,000
	Liabilities held for sale - other			2,775	2,710
	Shareholders' equity			1,326,614	1,237,350
			$	2,526,385	1,838,620

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)

		Nine Months Ended June 30, 2025		Nine Months Ended June 30, 2024
Cash flows from operating activities:
Net earnings	$	80,571		67,618
(Earnings) loss from discontinued operations		(9,126	)	(4,288	)
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization		48,401		38,972
Stock compensation expense		7,934		6,369
Changes in assets and liabilities		(33,473	)	(39,275	)
Effect of deferred taxes		(6,008	)	(6,302	)
Net cash provided by operating activities - continuing operations		88,299		63,094
Net cash provided (used) by operating activities - disc ops		43,703		(7,640	)
Net cash provided by operating activities		132,002		55,454

Cash flows from investing activities:
Acquisition of business, net of cash acquired		(472,006	)	(56,383	)
Capital expenditures		(24,210	)	(19,551	)
Additions to capitalized software		(13,018	)	(8,515	)
Net cash used by investing activities - continuing operations		(509,234	)	(84,449	)
Net cash used by investing activities - discontinued operations		(966	)	(5,439	)
Net cash used by investing activities		(510,200	)	(89,888	)

Cash flows from financing activities:
Proceeds from long-term debt		645,000		193,000
Principal payments on long-term debt and short-term borrowings		(242,000	)	(122,000	)
Dividends paid		(6,196	)	(6,185	)
Purchases of common stock into treasury		0		(7,998	)
Other		(6,205	)	(1,516	)
Net cash provided by financing activities - continuing operations		390,599		55,301
Net cash used by financing activities - discontinued operations		0		0
Net cash provided by financing activities		390,599		55,301

Effect of exchange rate changes on cash and cash equivalents		452		309

Net increase in cash and cash equivalents		12,853		21,176
Cash and cash equivalents, beginning of period		65,963		41,866
Cash and cash equivalents, end of period	$	78,816		63,042

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Other Selected Financial Data (Unaudited) - Continuing Operations Basis
(Dollars in thousands)

Backlog And Entered Orders - Q3 2025			A&D		USG		Test		Total
	Beginning Backlog - 4/1/25	$	385,491		124,274		202,971		712,736
	Entered Orders		582,354		105,524		61,152		749,030
	Sales		(136,324	)	(92,357	)	(67,663	)	(296,344	)
	Ending Backlog - 6/30/25	$	831,521		137,441		196,460		1,165,422

Backlog And Entered Orders - YTD Q3 2025			A&D		USG		Test		Total
	Beginning Backlog - 10/1/24	$	385,601		119,943		158,644		664,188
	Entered Orders		753,739		287,282		202,927		1,243,948
	Sales		(307,819	)	(269,784	)	(165,111	)	(742,714	)
	Ending Backlog - 6/30/25	$	831,521		137,441		196,460		1,165,422

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (Unaudited)

EPS – Adjusted Basis Reconciliation – Q3 2025
	EPS Continuing Operations– GAAP Basis – Q3 2025	$	0.96
	Adjustments (defined below)		0.64
	EPS Continuing Operations– As Adjusted Basis – Q3 2025	$	1.60

	Adjustments exclude $0.64 per share consisting primarily of: $0.15 of Corporate
	acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties,
	$0.01 of restructuring charges within the USG segment, and $0.40 of acquisition
	related amortization.

EPS – Adjusted Basis Reconciliation – Q3 2024
	EPS Continuing Operations– GAAP Basis – Q3 2024	$	1.10
	Adjustments (defined below)		0.18
	EPS Continuing Operations– As Adjusted Basis – Q3 2024	$	1.28

	Adjustments exclude $0.18 per share consisting primarily of: $0.02 of Corporate
	acquisition costs, $0.01 of restructuring charges within the A&D and USG segments,
	and $0.15 of acquisition related amortization.

EPS – Adjusted Basis Reconciliation – YTD Q3 2025
	EPS Continuing Operations– GAAP Basis – YTD Q3 2025	$	2.76
	Adjustments (defined below)		0.95
	EPS Continuing Operations – As Adjusted Basis – YTD Q3 2025	$	3.71

	Adjustments exclude $0.95 per share consisting primarily of: $0.15 of Corporate
	acquisition costs, $0.08 of Maritime inventory step-up charges and stamp duties,
	$0.02 of restructuring charges within the Test and USG segments, and $0.70 of
	acquisition related amortization.

EPS – Adjusted Basis Reconciliation – YTD Q3 2024
	EPS Continuing Operations – GAAP Basis – YTD Q3 2024	$	2.46
	Adjustments (defined below)		0.53
	EPS Continuing Operations – As Adjusted Basis – YTD Q3 2024	$	2.99

	Adjustments exclude $0.53 per share consisting primarily of: $0.06 of MPE acquisition
	backlog charges and inventory step-up charges and acquisition costs, $0.03 of
	restructuring charges, and $0.44 of acquisition related amortization.

SOURCE ESCO Technologies Inc.

Kate Lowrey, Vice President of Investor Relations, (314) 213-7277

ESCO Reports Third Quarter Fiscal 2025 Results