ESCO Technologies Hits a Milestone: $1 Billion in Orders and Sales
ESCOTechnologies, a leading provider of engineered solutions and services, has achieved a significant milestone in its fiscal year 2024. In a recent conference call, the company's President and CEO, Bryan Sayler, announced that ESCO had eclipsed $1 billion in orders and sales for the first time in its history.
"We are happy to give you an update as we close out another great year at ESCO," Sayler said. "We are pleased with our fourth quarter and fiscal 2024 results."
The achievement is a testament to the company's strong business model and market position, particularly in the aerospace and defense industries. ESCO's Aerospace and Defense segment reported a record backlog of over $600 million, driven by continued strength from commercial and military aerospace, as well as Navy orders at VACCO and Globe.
Sayler also noted that the company made progress on reducing cash due backlogs during the year, a key focus area for its teams. The backlog growth in 2024 was substantial, and ESCO does not anticipate any financial impact from the recent Boeing strike, which has now been resolved.
ESCO's Utility Solutions Group also had a strong quarter, with another year of nice top-line growth and margin improvement. The sales growth picked up in the fourth quarter compared to the third quarter, and the team delivered good orders and sales growth in renewables. Sayler was positive on the outlook for this segment, citing ongoing market strength on the regulated utility side of the business.
Finally, ESCO's test business saw a nice sequential improvement throughout the year, with profitability recovering and sales increasing as each quarter progressed. The company is optimistic about the future of this segment, particularly in the medical and industrial shielding customer segments, which have shown strong activity.
"While we feel great about 2024," Sayler said, "we feel even better about the future." Chris Tucker, ESCO's Senior Vice President and CFO, will run through the financial details for the quarter and year during the conference call."
