Esco Technologies ( (ESE) ) has shared an announcement.
On April 25, 2025, ESCO Technologies completed the acquisition of Ultra PMES Limited, Measurement Systems, Inc., EMS Development Corporation, and DNE Technologies, Inc. from Ultra Electronics Holdings Limited for approximately $550 million in cash. This acquisition, which was finalized on April 28, 2025, includes the Signature Management & Power (SM&P) business, enhancing ESCO’s Navy businesses with increased content on US Navy submarine and surface ship programs and expansion into UK and AUKUS navy platforms. The acquisition supports ESCO’s long-term objective of expanding its leadership in high-growth markets, particularly benefiting from increasing global naval defense spending as the US and its allies upgrade their naval defense programs. The impact of this acquisition will be reflected in ESCO’s updated FY 2025 guidance, to be announced on May 7, 2025.
Spark’s Take on ESE Stock
According to Spark, TipRanks’ AI Analyst, ESE is a Outperform.
Esco Technologies has a strong financial standing with robust revenue and profitability growth, effective cost management, and low leverage, which are significant strengths. The recent earnings call and corporate events further support positive future performance with raised guidance and strategic expansions. However, the technical analysis indicates short-term bearish trends, and the high P/E ratio suggests potential overvaluation concerns. Overall, the company’s strong financial performance and positive strategic outlook outweigh the valuation and technical analysis concerns, resulting in a solid overall score.
To see Spark’s full report on ESE stock, click here.
More about Esco Technologies
ESCO Technologies Inc. is a global provider of highly engineered products and solutions serving diverse end-markets, including aviation, Navy, space, and industrial sectors. The company specializes in manufacturing filtration and fluid control products, advanced composites, and signature and power management solutions. ESCO is also an industry leader in designing and manufacturing RF test and measurement products and systems, and it provides diagnostic instruments, software, and services to industrial power users and the electric utility and renewable energy industries.
YTD Price Performance: 18.64%
Average Trading Volume: 166,562
Technical Sentiment Signal: Sell
Current Market Cap: $4.07B
Find detailed analytics on ESE stock on TipRanks’ Stock Analysis page.