Espey Mfg. & Electronics Corp. reported significant financial performance improvements for the three months ended September 30, 2024, compared to the same period in 2023. Net sales increased by 21.9%, reaching $10.4 million, up from $8.6 million. This growth was driven by higher revenue from both units delivered and milestone achievements, with total revenue recognized from units delivered at $8.3 million and from milestones at $2.2 million.

Gross profit also saw an increase, rising to $2.8 million from $2.2 million, resulting in a gross profit margin of 26.8%, slightly up from 26.2% in the prior year. Operating income improved to $1.7 million, compared to $1.2 million in the previous year. Net income for the quarter was $1.6 million, or $0.63 per share, a notable increase from $1.1 million, or $0.44 per share, in the same quarter of 2023. This increase in net income was attributed to higher gross profits and other income, despite rising selling, general, and administrative expenses.

The company’s total current assets as of September 30, 2024, were $53.8 million, up from $53.2 million at the end of June 2024. Total assets increased to $57.6 million, while total stockholders’ equity rose to $42.5 million from $41.3 million. Cash and cash equivalents also improved, totaling $4.8 million compared to $3.1 million a year earlier.

Espey’s backlog as of September 30, 2024, was approximately $94.6 million, an increase from $87.1 million in the previous year. The backlog includes significant contracts, with $58 million from four major customers, down from five customers the previous year. The company anticipates that revenues for fiscal year 2025 will exceed those of fiscal year 2024, although net income per share is expected to be lower than in fiscal year 2024.

In terms of strategic developments, Espey was awarded $7.4 million in funding for facility and capital equipment upgrades for the U.S. Navy, with completion expected by the end of 2024. The company has also budgeted approximately $500,000 for new equipment and plant improvements in fiscal year 2025, focusing on maintaining competitiveness and fulfilling contract needs.

Overall, Espey Mfg. & Electronics Corp. demonstrated strong financial growth and strategic positioning in the defense and electronics sectors, with a focus on enhancing operational capabilities and reducing customer concentration risks.