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ESCO Technologies (ESE) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed May 11, 2026
ESCO Technologies (ESE) reported revenue of $309M for the second quarter fiscal 2026 (Q2 FY26), +33% from a year earlier and +7% from the quarter before. Operating margin was 14.2%, net earnings $34.7M (11.2% of revenue).
ESCO Technologies, Q2 FY26: revenue $309M (+34% year over year), operating margin 14.2%, net earnings $34.7M, operating cash flow $6.4M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $309M | +7% | +33% |
| Operating profit | $43.9M | +14% | +27% |
| Net earnings | $34.7M | +21% | +12% |
| Operating cash flow | $6.4M | -91% | -73% |
What changed
Revenue was $309.3M in Q2 FY26, up 33% year over year and up 7% from the previous quarter. Aerospace and Defense was the largest line at 49% of revenue. Aerospace and Defense added $60.7M year over year (up 68%), 78% of the total change.
Operating profit was $43.9M, a 14.2% margin (down 0.7 points year over year). Of the extra revenue versus Q2 FY25, 12% reached operating profit, below the 15% margin then. Total costs grew 35% against revenue growth of 33%. The fastest-growing cost line was Other operating costs (+133%). Net earnings were $34.7M, up 12% year over year. The effective tax rate was 22.9%.
Operating cash flow was $6.4M (down 73% year over year), 18% of net earnings. Non-cash charges added back $26.8M of depreciation and amortization and $3.3M of share-based compensation. Working capital and other items used $58.5M. Capital expenditures of $7.2M exceeded it, leaving free cash flow of −$811K.
Questions
What was ESCO Technologies' revenue in the second quarter fiscal 2026?
ESCO Technologies (ESE) reported revenue of $309M for the second quarter fiscal 2026 (Q2 FY26), +33% from a year earlier and +7% from the quarter before.
Was ESCO Technologies profitable in the second quarter fiscal 2026?
Operating profit was $43.9M (14.2% of revenue) and net earnings $34.7M.
Source: ESCO Technologies 10-Q on SEC EDGAR.