ESCO Technologies Inc (NYSE: ESE) stock soared 13.19% in the pre-market session on Friday, following the company's impressive first-quarter 2025 earnings results and raised full-year guidance.
The company reported a 13% increase in revenue for the quarter, driven by strong organic growth across all its business segments. Adjusted earnings per share (EPS) surged 41% year-over-year to $1.07, significantly exceeding expectations.
ESCO's Aerospace and Defense segment delivered a stellar performance, with revenue growth of nearly 21%, led by robust demand from commercial aerospace and Navy customers. The Utility Solutions Group also witnessed double-digit order and revenue growth, driven by strong investments from utilities to maintain and extend the life of their existing assets.
Furthermore, the Test business witnessed a remarkable turnaround, with order growth of over 40% and double-digit organic sales growth, indicating stabilization and positive trajectory after facing recent challenges.
Buoyed by the strong start to the year, ESCO raised its full-year 2025 earnings guidance to $5.55 - $5.75 per share, up from the previous range of $5.30 - $5.50 per share. The company also reported a record backlog of $907 million, reflecting robust demand across its end markets.
Management expressed confidence in the company's growth prospects, citing favorable trends in commercial aerospace production rates, Navy procurement, and utility capital investments. Additionally, the strategic review of VACCO's business and the pending acquisition of SM&P are expected to further enhance ESCO's growth trajectory.
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