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Espey Mfg. & Electronics Corp. (ESP) reported a net income of $1.05 per share for the fourth quarter of 2025, up from 73 cents per share a year earlier. However, the company saw a decline in net sales, generating $9.6 million compared to $11.6 million in the prior-year quarter. The stock has declined 10.3% since the earnings announcement, contrasting with a 0.8% increase in the S&P 500 index over the same period.
For fiscal 2025, Espey reported a net income of $8.1 million, a 40% increase from $5.8 million the previous year. The company’s backlog stood at approximately $139.7 million as of June 30, 2025, with 35% expected to be recognized as revenue in fiscal 2026. Despite the positive earnings, management anticipates a decline in net income per share due to higher anticipated costs associated with backlog orders and ongoing inflationary pressures.
Espey received a $3.4 million funding award from the U.S. Navy to upgrade its facilities and capital equipment, aiming to enhance testing capabilities at its Saratoga Springs, NY site by the end of fiscal 2026. The company also finalized its withdrawal from the IBEW Local 1799 Pension Fund with a $0.5 million payment in May 2025.
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