ESCO Delivers 14% Sales Growth in Q3 FY2026, Backlog Climbs to $1.5B, and Megger Financing Is Locked In
ESE sits 72% above its 52-week low of $174.92 on light trading volume (0.4× avg).
Summary
ESCO Technologies turned in strong Q3 FY2026 results—sales up 14% and a record backlog—while locking in financing for its $2.35 billion Megger acquisition.
Key Events · Earnings and Guidance · ESE
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Q3 Sales and Earnings Growth
Driven by broad-based demand, net sales rose 14.4% to $339.0 million, and diluted EPS from continuing operations advanced to $1.26 from $0.96 a year ago.
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Record Backlog of $1.54 Billion
At June 30, 2026, the backlog stood at $1,540.5 million, with approximately 59% expected to convert to revenue over the next twelve months.
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Megger Acquisition Financing Secured
To fund the $2.35 billion Megger acquisition, a new $1.5 billion credit facility—comprising a revolver, term loan A, and term loan B—was entered on May 29, 2026, with closing anticipated in Q1 fiscal 2027.
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Aerospace & Defense Leads Growth
The A&D segment posted a 23.4% jump in sales to $168.2 million, reflecting a $22.3 million increase in navy revenues and contributions from the Maritime acquisition.
Analysis · ESE · Manufacturing
A solid third quarter saw sales climb 14.4% to $339 million and diluted EPS reach $1.26, fueled by momentum in Aerospace & Defense. The backlog expanded to $1.54 billion, offering clear revenue visibility ahead. Importantly, the company closed a new $1.5 billion credit facility to back the transformative $2.35 billion Megger acquisition, which is on track to close early in fiscal 2027. With operational strength and acquisition financing now secured, this update carries significant weight for investors.
At the time of this filing, ESE was trading at $301.67 on NYSE in the Manufacturing sector, with a market capitalization of approximately $7.8B. The 52-week trading range was $174.92 to $362.15. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.