Espey Mfg. & Electronics Corp. reports second quarter results
MWN-AI** Summary
Espey Mfg. & Electronics Corp. (NYSE American: ESP) released its financial results for the second quarter of fiscal year 2026, reporting sales of $12.14 million, a decline from the $13.61 million recorded during the same quarter in fiscal year 2025. Despite this decrease in sales, the company demonstrated resilient profitability with a net income of $2.81 million, or $0.99 per diluted share, up significantly from the previous year's net income of $1.91 million or $0.71 per diluted share.
For the first half of the fiscal year, Espey noted total net sales of $21.23 million compared to $24.05 million in the same period last year. However, net income for this period reached $4.97 million, or $1.75 per diluted share, an improvement from $3.51 million, or $1.32 per diluted share, in the prior year.
The company's backlog as of December 31, 2025, stood at $134.7 million, an increase from $120.1 million year-over-year, indicating a strong demand for its products. However, new orders fell to $16.3 million in the first six months of fiscal year 2026, a sharp decline from $46.9 million in fiscal year 2025, influenced partially by a significant multi-year contract awarded in the previous year.
President and CEO David O’Neil acknowledged challenges affecting revenue, attributed to factors beyond the company's control that shifted the timing of certain deliverables. O’Neil expressed optimism regarding the company's prospects for the remainder of the year, highlighting solid margins and ongoing progress on key programs. He commended employee dedication, positioning Espey for sustained momentum as it continues to focus on strategic priorities in the military and industrial power supply sectors.
MWN-AI** Analysis
Espey Mfg. & Electronics Corp. (NYSE American: ESP) recently reported second-quarter results for fiscal year 2026, indicating a mixed financial performance that warrants a detailed analysis for potential investors.
Sales for the second quarter declined to $12.14 million from $13.61 million in the same quarter last year, reflecting a decrease of approximately 10.8%. However, net income showed a positive trend, increasing to $2.81 million or $0.99 per diluted share, up from $1.91 million or $0.71 per diluted share year-over-year. This suggests that while revenue has taken a hit, effective cost management may be enhancing profitability. The net income for the first half of fiscal year 2026 also increased, reaching $4.97 million compared to $3.51 million in the prior year—a testament to operational efficiency.
Moreover, Espey’s backlog increased significantly to $134.7 million from $120.1 million, signaling strong future demand. However, new orders dropped considerably, amounting to $16.3 million compared to $46.9 million for the same period last year. This decline might raise concerns over future revenue growth unless the company can rejuvenate its order pipeline.
CEO David O’Neil noted the impact of external factors on top-line results, which points to the company's exposure to market fluctuations. Nevertheless, he remains optimistic about future performance, emphasizing the company's strategic initiatives and commitment to delivering on key projects.
For investors, the outlook appears cautiously optimistic. The increase in net income and backlog, combined with effective cost management measures, positions Espey well for the future. However, the decline in new orders is a red flag that potential investors should monitor closely. It may be prudent to watch how the company addresses these challenges in the coming quarters, while also considering the inherent risks in the defense and industrial sectors.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
SARATOGA SPRINGS, N.Y., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces results for the first six months of fiscal year 2026.
Sales for the second quarter of fiscal year 2026, ending December 31, 2025, were $12,136,903 compared to fiscal year 2025 second quarter sales of $13,608,740. Net income for the quarter was $2,805,109, $0.99 per diluted share, as compared to net income of $1,908,499, $0.71 per diluted share for the same quarter last year.
For the six months ending December 31,2025, net sales were $21,229,779, compared to $24,051,958 for the first six months of fiscal year 2025. Net income for the period was $4,974,945, $1.75 per diluted share, compared with net income of $3,506,816, $1.32 per diluted share, for the same period last year.
The backlog for the Company was $134.7 million at December 31, 2025, compared with last year's backlog of approximately $120.1 million at December 31, 2024. New orders in the first six months of fiscal year 2026 were $16.3 million, compared to new orders in the first six months of fiscal year 2025 of approximately $46.9 million, which included $29.5 million in multi-year contract awards.
Mr. David O’Neil, President and CEO, commented,
We delivered solid margins, made meaningful progress across key programs, and continue to see encouraging trends as we move through the year. We experienced some top-line impacts from factors outside of our control that resulted in a timing shift for certain deliverables. We are working closely with our customers and vendors to execute on these milestones in the second half of the year and remain on pace to deliver better results than the prior year. Our performance reflects the underlying strength of our business and disciplined execution against our strategic priorities. I would like to congratulate and thank our employees for their dedication, collaboration, and continued focus, which positions us well for sustained momentum.
Espey's primary business is the development, design, and production of specialized military and industrial power supplies/transformers. The Company can be found on the internet at www.espey.com.
For further information, contact Ms. Kaitlyn O’Neil at [email protected].
This press release may contain certain statements that are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.
FAQ**
How did the decrease in sales for the second quarter of fiscal year 2026 impact Espey Mfg. & Electronics Corp. ESP's overall revenue forecasts for the remainder of the year?
What specific factors outside of Espey Mfg. & Electronics Corp. ESP's control contributed to the decline in new orders this quarter compared to the same period last year?
In light of the current backlog of $134.7 million, what strategies is Espey Mfg. & Electronics Corp. ESP implementing to convert these orders into revenue in the second half of fiscal year 2026?
Given the challenges mentioned by Espey Mfg. & Electronics Corp. ESP regarding timing shifts for deliverables, how does the company plan to maintain its profitability and improve margins moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Espey Mfg. & Electronics Corp. (NYSE: ESP).
NASDAQ: ESP
ESP Trading
0.45% G/L:
$58.325 Last:
5,323 Volume:
$59.11 Open:
