ESCO Technologies Inc. commenced its fiscal year with an outstanding first quarter, reporting 13 percent top-line growth and over 200 basis points of Adjusted EBITDA margin expansion. The company also achieved a 41 percent increase in Adjusted EPS compared to the prior year, driven by solid revenue growth across all three segments.
Notable strength was observed across ESCO's Navy, commercial aerospace, and utility end-markets, with the Test business also delivering a solid quarter marked by improving order flow, double-digit revenue growth, and over 500 basis points of margin expansion. This broad-based performance underscores the company's strong position in attractive markets.
Due to continued market strength and operational improvements, ESCO raised its full-year fiscal 2025 Adjusted EPS guidance by $0.25, to a new range of $5.55 to $5.75, representing 16 to 21 percent growth over the prior year. The company's revenue guidance for the year remains in the range of $1.09 billion to $1.11 billion, reflecting 6 to 8 percent annual growth.
Regarding the pending Signature Management & Power (SM&P) acquisition, ESCO confirmed that the UK government assessment is in its final stages, with an optimistic expectation for a positive resolution in the near term. The company anticipates closing the $550 million transaction either in the second or early in the third fiscal quarter, which will add significant scale to its Navy business.
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