Latest news with #ESCO
Yahoo
30-06-2025
- Business
- Yahoo
3 Profitable Stocks to Keep an Eye On
Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders. Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities. Identifying the most compelling profitable companies isn't always straightforward, and that's why we started StockStory. Keeping that in mind, here are three profitable companies that leverage their financial strength to beat the competition. Trailing 12-Month GAAP Operating Margin: 15.5% A developer of the communication systems used in the Batmobile of 'The Dark Knight,' ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors. Why Should ESE Be on Your Watchlist? Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 18.2% Offerings are mission-critical for businesses and lead to a top-tier gross margin of 38.9% Earnings growth has trumped its peers over the last two years as its EPS has compounded at 20.7% annually ESCO is trading at $194.50 per share, or 31.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Trailing 12-Month GAAP Operating Margin: 22.8% Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ:CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America. Why Are We Backing CTAS? 8.6% annual revenue growth over the last two years surpassed the sector average as its services resonated with customers Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it's becoming a less capital-intensive business Industry-leading 24.7% return on capital demonstrates management's skill in finding high-return investments, and its rising returns show it's making even more lucrative bets Cintas's stock price of $220.50 implies a valuation ratio of 47.4x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Trailing 12-Month GAAP Operating Margin: 16% Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE:WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation. Why Will WRB Beat the Market? Impressive 13.6% annual net premiums earned growth over the last four years indicates it's winning market share this cycle Share buybacks catapulted its annual earnings per share growth to 24.7%, which outperformed its revenue gains over the last five years Capital strength is on track to rise over the next 12 months as its 26.6% projected book value per share growth implies profitability will accelerate from its two-year trend At $72.29 per share, W. R. Berkley trades at 2.8x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Sign in to access your portfolio
Yahoo
16-06-2025
- Business
- Yahoo
Jim Cramer on ESCO Technologies: 'I Find This One Intriguing'
ESCO Technologies Inc. (NYSE:ESE) is one of the . Cramer discussed ESCO Technologies Inc. (NYSE:ESE) and said that it looks like a 'well-rounded business,' as he commented: 'When you look under the hood, there's actually a lot of interesting stuff here, which is why the stock's up more than 70% over the last 12 months. See, over 40% of ESCO's business last year came from their aerospace defense division… 27% of their sales come from US government contracts… Another 35% of ESCO's revenues come from their utility business… ESCO's RF Test & Measurement segment, that's 20% of revenue… An industrial tech facility with robotic arms for precision machining components. ESCO Technologies Inc. (NYSE:ESE) develops specialized filtration, fluid control, propulsion systems, and diagnostic testing products across aerospace, defense, utility, and RF measurement markets. While we acknowledge the potential of ESE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
ESE Q1 Earnings Call: Maritime Acquisition Drives Growth Outlook, Margins Expand Across Segments
Engineered products manufacturer ESCO (NYSE:ESE) met Wall Street's revenue expectations in Q1 CY2025, with sales up 6.6% year on year to $265.5 million. The company's full-year revenue guidance of $1.2 billion at the midpoint came in 4.5% above analysts' estimates. Its non-GAAP profit of $1.35 per share was 8.3% above analysts' consensus estimates. Is now the time to buy ESE? Find out in our full research report (it's free). Revenue: $265.5 million vs analyst estimates of $266.4 million (6.6% year-on-year growth, in line) Adjusted EPS: $1.35 vs analyst estimates of $1.25 (8.3% beat) Adjusted EBITDA: $56.67 million vs analyst estimates of $54.29 million (21.3% margin, 4.4% beat) Management raised its full-year Adjusted EPS guidance to $6 at the midpoint, a 6.2% increase Operating Margin: 16.2%, up from 13.3% in the same quarter last year Backlog: $932.3 million at quarter end Market Capitalization: $4.75 billion ESCO'S first quarter results were shaped by improved operational performance across all three of its business segments, with management highlighting order acceleration and favorable product mix as key contributors. CEO Bryan Sayler emphasized the stabilization and recovery in the test segment, citing increased activity in electromagnetic compatibility, healthcare, and industrial end-markets. The utility group benefited from healthy demand in electricity infrastructure, while aerospace and defense growth was supported by increased Navy orders and commercial aerospace recovery. CFO Chris Tucker noted that incremental margins were driven by price increases, particularly in commercial aerospace, and better mix in both the utility and test businesses. Recent operational challenges in specific product lines, such as those discussed in prior years, were described as largely resolved, contributing to the margin expansion experienced this quarter. Looking ahead, ESCO's updated full-year adjusted EPS guidance—now an all-in range of $5.85 to $6.15 per share, which incorporates an increase in the base business outlook to $5.65-$5.85 per share and an estimated $0.20 to $0.30 per share from the recent ESCO Maritime Solutions acquisition—and its strategic priorities signal management's confidence in continued growth. CEO Bryan Sayler pointed to favorable end-market exposure in defense and utilities, noting, 'We feel strongly that our end market exposure remains favorable, and growth tailwinds should persist as we move forward.' Management is watching tariff impacts closely but believes mitigation efforts—including pricing adjustments and operational shifts—should limit the net effect. CFO Chris Tucker added that the maritime acquisition is trending at or above original projections and is expected to enhance both growth and margin profile. However, Sayler acknowledged that macroeconomic uncertainties and evolving trade policies could create headwinds, particularly if retaliatory actions emerge, but the company believes its diverse business mix provides resilience. Management attributed the quarter's improved profitability to favorable business mix, successful price actions, and the initial contribution from the newly acquired maritime business. Maritime Solutions acquisition completed: The closing of ESCO Maritime Solutions (formerly SM&P) was highlighted as a major strategic milestone that strengthens the company's margin and growth profile. Management stated the business is performing at or above original expectations, providing immediate contribution to both sales and adjusted earnings. Aerospace and defense margin expansion: Growth in Navy and commercial aerospace orders drove higher margins, supported by favorable program and customer mix. Price increases in commercial aerospace began to flow through, with CFO Chris Tucker noting, 'We're starting to see some of that really helping us and coming through nicely.' Utility group's product mix shift: The utility segment benefited from double-digit order growth at Doble, and margin gains were attributed to a shift toward higher-margin legacy offline testing products. NRG, another utility business, stabilized after prior declines, contributing to overall profitability. Test segment recovery: The test business saw a broad-based recovery in order activity, with strong demand in electromagnetic compatibility (EMC) testing, healthcare (notably magnet swaps in hospitals), and industrial applications like electromagnetic pulse (EMP) filters for data centers and utilities. Management described this as a trend likely to persist. Tariffs and trade risk mitigation: Management proactively included estimated tariff impacts in its outlook, with mitigation measures such as pricing actions and operational adjustments expected to offset some of the exposure. The company remains more of a net exporter, and broader risks are seen as demand-related if global trade tensions escalate. ESCO's full-year outlook is driven by the integration of the maritime acquisition, ongoing demand in defense and utility markets, and efforts to counteract tariff-related headwinds. Maritime Solutions integration: The addition of ESCO Maritime Solutions is expected to enhance both top-line growth and profit margins, with management projecting that the business will continue to outperform initial assumptions. Visibility into U.S. and Royal Navy programs provides confidence in sustained demand and healthy backlogs. End-market momentum in utilities and defense: Management anticipates stable growth in electricity infrastructure (driven by grid modernization, aging infrastructure, and extreme weather) and continued strength in prioritized defense programs, particularly submarines. Exposure to top Department of Defense priorities is expected to ensure funding stability. Tariff and macroeconomic uncertainties: While management has factored in estimated tariff costs, they are monitoring for potential retaliatory actions and slower demand in certain export markets. Actions such as price adjustments and operational flexibility are in place to help mitigate these risks, but broader economic shifts remain a possible headwind. Looking ahead, our analysts will be monitoring (1) the successful integration and ongoing performance of ESCO Maritime Solutions, particularly its contribution to margins and backlog; (2) order and sales momentum in the utility and test segments, especially as infrastructure investments and healthcare upgrades continue; and (3) management's effectiveness in offsetting tariff impacts through pricing and operational adjustments. Progress on the potential sale of VACCO and stability in defense funding will also be key indicators to watch. ESCO currently trades at a forward P/E ratio of 29.7×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Zawya
09-06-2025
- Business
- Zawya
Johnson Controls Arabia targets Saudi mega projects, export growth
As Saudi Arabia advances its Vision 2030 industrial diversification goals, HVAC and Smart Buildings technology company Johnson Controls Arabia (JCA) is expanding its local manufacturing capabilities and offering decarbonisation solutions for sectors such as healthcare, infrastructure, and commercial real estate. '…we go beyond simply supplying HVAC systems, we help organisations significantly reduce energy consumption and emissions through tailored energy solutions,' said JCA's CEO Dr Mohanad Alshaikh. He told Zawya Projects that the company, as one of the Kingdom's first licensed Energy Service Companies (ESCOs), contributed to over 500 million Saudi riyals ($133 million) in client savings and helped avoid more than 300,000 metric tonmes of CO2 emissions since 2020. 'These aren't just statistics. They represent tangible improvements for hospitals, data centres, commercial buildings, and government facilities across the Kingdom,' he said. 'Whether it's through national programs like Tarshid, or partnerships with key clients, our focus is on delivering measurable, lasting impact,' he added. The company is also supporting local manufacturing through high-efficiency products like the YORK YVAA Style B air-cooled chiller. 'It's produced right here in Saudi Arabia, fully aligned with the Saudi Made Programme, combining global engineering standards with local innovation,' Alshaikh noted. Scale and performance testing JCA recently manufactured the largest air-cooled chiller produced in Saudi Arabia—a 600-tonne capacity system. The achievement was enabled by collaboration with Johnson Controls' global engineering teams and the development of a dedicated production line at its YORK Manufacturing Complex in in King Abdullah Economic City (KAEC), Johnson Control's largest facility in MENA, Europe, and Latin America. Alshaikh said the chiller is designed to meet the growing needs of mega projects in the region. 'This chiller addresses a critical market need: energy-efficient, high-capacity cooling for mission-critical sectors,' he said. 'For industries such as healthcare, infrastructure, industrial facilities, and commercial real estate, it offers a powerful solution that's not only locally manufactured but performance-tested and certified within the Kingdom.' The complex also houses the region's first AHRI-certified testing lab capable of testing air-cooled chillers up to 600 tonnes, allowing factory acceptance testing within Saudi Arabia. According to Alshaikh, AHRI certification enhances JCA's ability to secure major projects by providing third-party verification of product performance to international standards. 'Previously, chillers of this size had to be shipped to countries like China or the U.S. for testing. Now, that capability exists locally, enhancing transparency, trust, and timelines,' he noted, adding that JCA's is the first and only AHRI- certified lab in the Kingdom for testing air-cooled chillers up to 600 tonnes. The ability to demonstrate verified performance in-house builds confidence with customers and gives the company's engineering teams faster data-driven feedback loops for continuous improvement, noted Alshaikh. 'For consultants and project stakeholders, it means they can verify chiller performance under standardised, controlled conditions, eliminating costly field testing, reducing project risk, and accelerating approvals,' he said. 'For clients, it's a guarantee of performance, certified to international standards, without leaving the Kingdom.' Expansion and export plans The YORK Manufacturing Complex, which currently operates 11 production lines, manufactures over 80 percent of JCA's regional product sales. Alshaikh said JCA plans to introduce new product platforms designed and built in Saudi Arabia, with ambitions to double its export output to 60 percent by 2027. 'Our investment roadmap includes expanding testing infrastructure, deepening partnerships with academic institutions and increasing the localization of high-tech components,' he said, adding that the goal is to position the complex as a platform for Saudi-engineered innovation and global product development. The AHRI certification, Alshaikh noted, gives JCA a competitive edge, enabling the company to export to over 26 countries, including China and the United States. In 2024, JCA launched its largest export initiative with a phased delivery of 1,000 YORK scroll chillers to the U.S. 'It's proof that when you combine world-class engineering with local commitment, the result is Saudi-made products trusted around the world,' Alshaikh concluded. (Reporting by Eman Hamed; Editing by Anoop Menon) (
Yahoo
03-06-2025
- Business
- Yahoo
Engineered Components and Systems Stocks Q1 Highlights: ESCO (NYSE:ESE)
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the engineered components and systems industry, including ESCO (NYSE:ESE) and its peers. Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 12 engineered components and systems stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.2% while next quarter's revenue guidance was 1.1% below. Luckily, engineered components and systems stocks have performed well with share prices up 10.6% on average since the latest earnings results. A developer of the communication systems used in the Batmobile of 'The Dark Knight,' ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors. ESCO reported revenues of $265.5 million, up 6.6% year on year. This print was in line with analysts' expectations, and overall, it was a very strong quarter for the company with full-year EPS guidance exceeding analysts' expectations. Bryan Sayler, Chief Executive Officer and President, commented, 'Q2 was another strong quarter as we delivered 7 percent top line growth, 250 basis points of Adjusted EBITDA margin expansion, and a 24 percent increase in Adjusted EPS compared to the prior year. All three segments delivered solid revenue growth, highlighted by strength across our Navy, commercial aerospace, utility, and Test end-markets. It was very positive to see orders increase 22 percent over the prior year, with particular strength in both USG and Test. ESCO scored the fastest revenue growth and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 9.8% since reporting and currently trades at $179.60. We think ESCO is a good business, but is it a buy today? Read our full report here, it's free. Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products. Regal Rexnord reported revenues of $1.42 billion, down 8.4% year on year, outperforming analysts' expectations by 3%. The business had a stunning quarter with a solid beat of analysts' organic revenue and EBITDA estimates. The market seems happy with the results as the stock is up 19.6% since reporting. It currently trades at $131.78. Is now the time to buy Regal Rexnord? Access our full analysis of the earnings results here, it's free. Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components. Park-Ohio reported revenues of $405.4 million, down 2.9% year on year, falling short of analysts' expectations by 4.7%. It was a softer quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. Park-Ohio delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.5% since the results and currently trades at $17.82. Read our full analysis of Park-Ohio's results here. Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally. Arrow Electronics reported revenues of $6.81 billion, down 1.6% year on year. This print topped analysts' expectations by 7.2%. It was an exceptional quarter as it also logged an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Arrow Electronics achieved the biggest analyst estimates beat among its peers. The stock is up 5.7% since reporting and currently trades at $117.51. Read our full, actionable report on Arrow Electronics here, it's free. Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets. Worthington reported revenues of $304.5 million, down 3.9% year on year. This result surpassed analysts' expectations by 6.7%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. The stock is up 41.6% since reporting and currently trades at $58.94. Read our full, actionable report on Worthington here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
