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Shares of Espey Mfg. & Electronics Corp. ESP have gained 15.9% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 index’s 4% growth over the same time frame. Over the past month, the stock has gained 19.8% compared with the S&P 500’s 11.3% growth, reflecting strong investor confidence likely tied to the company’s robust performance and expanding order pipeline.
For the third quarter of fiscal 2025, Espey reported net income of 63 cents per share compared to 40 cents per share in the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The company posted net sales of $10.3 million, a 24.8% increase from $8.3 million in the same period last year. Net income surged 65.2% to $1.7 million, compared to $1 million in the prior-year quarter.
For the first nine months of fiscal 2025, net sales reached $34.4 million, marking a 26.7% increase from $27.1 million in the prior-year comparable period. Net income over the same nine-month period rose 32.9% to $5.2 million, or $1.95 per share, from $3.9 million, or $1.56 per share, a year ago.
Espey Mfg. & Electronics Corp. Price, Consensus and EPS Surprise
Espey Mfg. & Electronics Corp. price-consensus-eps-surprise-chart | Espey Mfg. & Electronics Corp. Quote
Strong Order Pipeline and Backlog Expansion
A standout metric from the report was the significant expansion in Espey’s backlog, which stood at $138 million as of March 31, 2025, up 63.9% from $84.2 million a year earlier. This robust increase is underpinned by new orders totaling $75.1 million during the first nine months of fiscal 2025, more than double the $27.8 million in new orders booked in the same period of the previous fiscal year.
The order growth was boosted by a previously announced $19.8 million contract, which has helped cement a strong near-term production pipeline. The backlog figure suggests sustained demand across the company's core defense and industrial power supply markets, positioning Espey well for continued revenue expansion.
Management Commentary Reflects Optimism
President and CEO David O’Neil credited the company’s year-over-year growth in sales and earnings to strategic margin improvement initiatives and operational execution. He noted the company’s ability to improve margins on key programs and emphasized that the growth in backlog is a direct result of a record year for new orders.
Drivers Behind the Earnings Surge
Espey’s top and bottom-line performance was driven primarily by increased production volume and improved pricing or mix within its power supply and transformer programs. The earnings improvement reflects both the scale benefit of higher sales and management’s ability to execute cost discipline. Though detailed margin data was not disclosed in the earnings release, O’Neil’s reference to improving gross profits on key programs suggests enhanced profitability in high-contribution segments.