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ESE: Aerospace And Maritime Expansion Will Drive Margins Higher In 2026

Electrification, Grid Modernization And Digitalization Will Redefine Infrastructure Landscape

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ESE
AnalystConsensusTarget
Not Invested
Published 05 Sep 2024

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
45.1%
7D
2.1%

Analysts have modestly revised their price target on ESCO Technologies higher, lifting it from 255.00 dollars to 255.00 dollars. They cite a slightly higher discount rate, broadly unchanged long term growth and margin expectations, and a somewhat lower assumed future price to earnings multiple that still supports a premium valuation.

What's in the News

  • Issued new consolidated earnings guidance for fiscal 2026, targeting 16% to 20% net sales growth to a range of 1.27 billion dollars to 1.31 billion dollars, driven by strength across key segments (Key Developments).
  • Anticipates A&D segment net sales growth of 33% to 38%, including 6% to 8% organic growth and an additional 230 million dollars to 245 million dollars of Maritime revenue (Key Developments).
  • Projects steady expansion in core businesses, with USG segment sales expected to grow 4% to 6% and Test segment sales 3% to 5% in fiscal 2026 (Key Developments).
  • Reported an update on the August 2024 share repurchase authorization, indicating that no shares were repurchased between July 1, 2025 and September 30, 2025, leaving the buyback effectively unused to date (Key Developments).

Valuation Changes

  • Fair Value Estimate: Unchanged at 255.00 dollars per share, indicating no revision to the intrinsic value assessment.
  • Discount Rate: Risen slightly from 8.34 percent to 8.40 percent, reflecting a modestly higher required return.
  • Revenue Growth: Essentially unchanged at approximately 11.90 percent, indicating stable long term top line growth assumptions.
  • Net Profit Margin: Essentially unchanged at approximately 15.64 percent, suggesting consistent expectations for future profitability.
  • Future P/E: Fallen modestly from 35.11 times to 33.82 times, implying a slightly lower valuation multiple applied to future earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.