| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 27 | 22.3x | 17.8x | Bottom tier | |
Growth | 90 | 26.7% | 7.1% | Top tier | |
Quality | 63 | 7.8% | 4.5% | Around median | |
Safety | 85 | — | 2.6x | Top tier | |
Capital Return | 33 | 0.12% | 2.12% | Bottom tier | |
Momentum | 56 | 61.0% | 2.9% | Around median | |
Sentiment | 80 | 3 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ESCO Technologies operates through three interconnected segments serving specialized markets with demanding technical requirements. The Aerospace & Defense segment provides components for commercial and defense aviation and content for the Virginia- and Columbia-class submarine programs, while Utility Solutions, through Doble and NRG, provides testing, monitoring, and diagnostic tools for electrical infrastructure and renewable energy assets. The Test segment sells industrial shielding solutions, shielded rooms, and electromagnetic interference filters used in facilities including commercial and government data centers.
In Q3 fiscal 2026, revenue was $339.0 million, gross profit was $141.5 million, net income was $32.7 million, and reported earnings per share were $1.26. These figures equate to a gross margin of approximately 41.7% and a net margin of approximately 9.6%, compared with revenue of $309.3 million and net income of $34.7 million in Q2 fiscal 2026. On management's adjusted presentation, revenue increased 14%, including 8% organic growth and $23 million from Maritime, adjusted EBIT margin improved 90 basis points to 22%, and adjusted earnings per share increased 37.5% to $2.20.
The Aerospace & Defense segment generated revenue of $168 million in Q3 fiscal 2026, representing approximately half of consolidated revenue, with growth of 23%, organic growth of 9%, and an adjusted EBIT margin of 30%. Utility Solutions sales increased 8%, supported by 17% growth in Doble sales, but the segment recorded a 130-basis-point decline in adjusted EBIT margin, while Test sales grew 5% and its adjusted margin increased 50 basis points to 16.4%.
The analyst rating is “Buy,” with an average target of $413 and identical high and low targets of $413; this target is approximately 14% above the 52-week range high of $362.15, while the range low is $193.68. The target is supported by expected adjusted earnings-per-share growth of between 38% and 39% in fiscal 2026 and record backlog, but the consensus's reliance on a single target with no estimate range makes the valuation anchor less diverse, particularly given the risks related to NRG, Megger integration, and a debt cost of approximately 6%.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue reached $339.0 million in Q3 fiscal 2026, with reported growth of 14% and organic growth of 8%. Maritime contributed an additional $23 million in sales, while the Aerospace & Defense segment grew 23% to $168 million. Doble sales also increased 17%, and Test orders rose 42%, showing that growth spanned defense, electric utilities, and specialized testing.
Backlog reached a record $1.54 billion in Q3 fiscal 2026 after the book-to-bill ratio reached 1.21 times. Aerospace & Defense accounted for $1.1 billion of this backlog, with a book-to-bill ratio of 1.16 times. This supports future revenue visibility, but the timing of recognition may vary because some cable-monitoring orders may take up to a year to execute.
ESCO expects to close the Megger transaction in Q1 fiscal 2027 after completing the required regulatory approvals in several countries. The company plans to combine Megger with Doble to increase the scale of Utility Solutions, and working teams are reviewing manufacturing sites, product lines, and go-to-market strategy. On August 6, 2026, management expected the cost of debt to be approximately 6%, so the ultimate impact depends on realizing integration benefits while controlling financing and execution costs.
Automated analysis for informational purposes only — not investment advice.
The renewable energy markets served by NRG remained weak in Q3 fiscal 2026, and its margins declined to a low-double-digit level. Management expects another negative year-over-year comparison in Q4 fiscal 2026 because of the strength of the corresponding period, with growth beginning to return during fiscal 2027 from a lower base. Wind energy also faces permitting difficulties and tariff-related costs, while management expects a faster recovery in solar energy.
The segment generated revenue of $168 million in Q3 fiscal 2026, an increase of 23%, including organic growth of 9%. Adjusted EBIT margin increased 120 basis points to 30%, and the commercial aerospace, defense aerospace, and naval businesses each recorded organic growth of 10%. Long-term demand is supported by a global backlog of approximately 18,000 aircraft and ESCO's contracted content on 9 Block VI Virginia submarines and 5 Columbia submarines.
Management raised adjusted earnings-per-share guidance for fiscal 2026 to $8.30–$8.40, implying growth of between 38% and 39% from fiscal 2025. During the first nine months, net organic orders grew 19%, organic sales grew 11%, and adjusted EBIT margin increased 250 basis points. Operating cash flow also increased to more than $193 million from $88 million, although part of the increase was related to the timing of advance payments on large naval contracts.
