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ESCO Technologies Inc. (ESE-3.37%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $247.0 million from $218.3 million in the same quarter the previous year. The increase was driven by higher sales in the Aerospace & Defense (A&D), Utility Solutions Group (USG), and Test segments.
Net earnings for the quarter were $23.5 million, up from $15.2 million in the previous year. Earnings per share increased to $0.91 from $0.59.
The A&D segment reported net sales of $114.3 million, a 20.7% increase from the previous year, attributed to higher aerospace and navy sales. The USG segment saw a 4.5% increase in net sales to $86.7 million, driven by higher sales of testing products. The Test segment's net sales rose by 13.5% to $46.1 million.
Backlog at December 31, 2024, was $906.9 million compared with $879.0 million at September 30, 2024. The company received new orders totaling $275.0 million during the quarter.
Selling, general, and administrative expenses were $58.8 million, representing 23.8% of net sales, compared to $54.0 million, or 24.7% of net sales, in the previous year.
The company reported an EBIT of $32.2 million, up from $22.1 million in the previous year. The increase was mainly due to higher sales volumes and price increases across segments.
Interest expense decreased to $2.3 million from $2.7 million, primarily due to lower average outstanding borrowings and interest rates.
The effective income tax rate was 21.6%, slightly lower than the 22.0% in the previous year, with the decrease attributed to additional tax benefits from share-based compensation.
Net cash provided by operating activities was $34.2 million, up from $8.7 million in the previous year, driven by increased net earnings and lower accounts receivable.
Capital expenditures were $5.2 million, down from $7.8 million, reflecting reduced spending on building improvements and equipment.
The company had $383 million available to borrow under its credit facility, excluding an additional $250 million increase option, and $71.3 million in cash on hand as of December 31, 2024.
A dividend of $0.08 per share, totaling $2.1 million, was paid on October 16, 2024, with another $0.08 per share dividend paid on January 17, 2025.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ESCO Technologies Inc. quarterly 10-Q report dated February 10, 2025. To report an error, please email earnings@qz.com.