Executive Summary
Espey Mfg. Electronics Corp (ESP) delivered a resilient QQ1 2025, with revenue of $10.44 million and a gross margin of 26.8%, translating to an EBITDA of $1.72 million and net income of $1.60 million. Reported EPS of $0.63 (diluted $0.61) reflects solid operating leverage on a relatively small revenue base. Year-over-year revenue growth stood at approximately 21.9%, while net income rose about 46.0% year over year, though QoQ metrics show a modest sequential deceleration. The quarter benefited from favorable product mix and disciplined cost management, contributing to a robust profitability profile despite the company’s small scale in a specialized defense/industrial electronics niche.
Key Performance Indicators
QoQ: -10.06% | YoY:21.88%
QoQ: -12.50% | YoY:24.74%
QoQ: -19.36% | YoY:40.72%
QoQ: -15.58% | YoY:46.03%
QoQ: -16.00% | YoY:43.18%
Key Insights
Revenue: $10.44m, YoY +21.9%, QoQ -10.1; Gross Profit: $2.80m, Gross Margin 26.8%, YoY +24.7%, QoQ -12.5%; Operating Income: $1.72m, Margin 16.46%, YoY +40.7%, QoQ -19.4%; Net Income: $1.60m, Margin 15.30%, YoY +46.0%, QoS EPS: $0.63 (diluted $0.61), YoY +43.2%, QoQ -16.0%; EBITDA: $1.72m, EBITDA Margin ~16.46%; Cash Flow: Operating Cash Flow $1.39m, Free Cash Flow $0.72m; Balance Sheet: Cash & equivalents $4.81m, Short-term investments $18.66m, Net cash position approximately $4.81m, Total ...
Financial Highlights
Revenue: $10.44m, YoY +21.9%, QoQ -10.1; Gross Profit: $2.80m, Gross Margin 26.8%, YoY +24.7%, QoQ -12.5%; Operating Income: $1.72m, Margin 16.46%, YoY +40.7%, QoQ -19.4%; Net Income: $1.60m, Margin 15.30%, YoY +46.0%, QoS EPS: $0.63 (diluted $0.61), YoY +43.2%, QoQ -16.0%; EBITDA: $1.72m, EBITDA Margin ~16.46%; Cash Flow: Operating Cash Flow $1.39m, Free Cash Flow $0.72m; Balance Sheet: Cash & equivalents $4.81m, Short-term investments $18.66m, Net cash position approximately $4.81m, Total assets $57.64m, Total liabilities $15.14m, Shareholders’ equity $42.49m; Liquidity: Current ratio ~3.55, Quick ratio ~2.27; Leverage: Net debt negative (~$4.81m), no long-term debt reported.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.44M |
21.88% |
-10.06% |
| Gross Profit |
2.80M |
24.74% |
-12.50% |
| Operating Income |
1.72M |
40.72% |
-19.36% |
| Net Income |
1.60M |
46.03% |
-15.58% |
| EPS |
0.63 |
43.18% |
-16.00% |
Key Financial Ratios
operatingProfitMargin
16.5%
operatingCashFlowPerShare
$0.55
freeCashFlowPerShare
$0.29
dividendPayoutRatio
39.6%
Management Commentary
No earnings call transcript provided in the dataset. Management commentary from the QQ1 2025 results is not included here; therefore, no direct quotes or theme-based synthesis from an earnings call can be supplied. The analysis below relies on the disclosed financials and available peer benchmarks.
Forward Guidance
No formal guidance was issued for QQ2 2025 or the full-year implied by the dataset. Given ESP’s small scale yet solid profitability and substantial liquidity, investors should monitor: (1) order backlog and duration of defense/program awards, (2) government procurement cycles and export opportunities, (3) component and supply chain dynamics affecting lead times and inventory levels, and (4) any signs of revenue concentration risk or customer diversification improvements. Qualitatively, the company could benefit from a modest topline expansion paired with continued cost discipline to sustain margins; upside would hinge on winning additional defense-related contracts and expanding into adjacent power electronics markets.