About ESCO Technologies

ESCO Technologies Inc., through its wholly-owned direct and indirect subsidiaries, operates as a major supplier of engineered products to industrial and commercial markets. The company is a global provider of highly engineered filtration and fluid control products and integrated propulsion systems for the aviation, navy, space and process markets worldwide, as well as composite-based products and solutions for navy, defense and industrial customers; an industry leader in radio frequency (RF) shielding and electromagnetic compatibility (EMC) test products; and a provider of diagnostic instruments, software and services for the benefit of the electric utility and renewable energy industries and industrial power users. In February 2023, the company acquired CMT Materials, LLC and its affiliate Engineered Syntactic Systems, LLC (together, CMT). CMT is a leading supplier of syntactic materials for buoyancy and specialty applications, with expertise in designing and manufacturing custom syntactic foam components and systems utilized in industrial, oceanographic, military, and naval applications. The company's operating subsidiaries are engaged primarily in the research, development, manufacture, sale and support of the products and systems. A significant portion of VACCO's, Globe's and Westland's sales involve major U.S. Government programs, such as NASA's Space Launch System (SLS) and the U.S. Navy submarines. Segments The company operates through three segments: Aerospace & Defense (A&D); Utility Solutions Group (USG); and RF Test & Measurement (Test). A&D This segment includes VACCO Industries (VACCO), PTI Technologies Inc. (PTI), Crissair, Inc. (Crissair), Globe Composite Solutions, LLC (Globe), Westland Technologies, Inc. (Westland), and Mayday Manufacturing Co. (Mayday). USG This segment includes Doble Engineering Company, I.S.A. - Altanova Group S.r.l. and affiliates (Altanova), Morgan Schaffer Ltd. (Morgan Schaffer), NRG Systems, Inc. (NRG), and Phenix Technologies Inc. (Phenix). Test This segment includes ETS-Lindgren Inc. Products A&D This segment has seven facilities in the United States and one in Mexico. This segment primarily designs and manufactures specialty filtration, fluid control and naval products, including hydraulic filter elements, fluid control devices, and precision-tolerance machined components used in aerospace and defense applications, unique filter mechanisms used in micro-propulsion devices for satellites, custom designed filters for manned aircraft and submarines, products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessel's signature, and other communications, sealing, surface control and hydrodynamic related applications to enhance the U.S. Navy maritime survivability; and miniature electro-explosive devices for military aircraft ejection seats and missile arming devices. USG This segment has eight facilities in the United States, one in Canada, and ten outside North America. Doble is an industry leader in the development, manufacture, and delivery of diagnostic testing and data management solutions that enable electric power grid operators to assess the integrity of high-voltage power delivery equipment. It combines three core elements for customers, such as diagnostic test instruments and condition monitoring systems, expert consulting, and testing services. The acquisition of Phenix's assets has enhanced Doble's high voltage, high current, high power test systems, components, and solutions. NRG is a global market leader in the design and manufacture of decision support tools for the renewable energy industry, primarily wind and solar. Altanova, headquartered in Taino, Italy, has historically had a strong market presence in Europe and Asia, and its acquisition has created a significant international platform for the company's USG segment by filling important product gaps and geographies not previously served by Doble's products and solutions. The Altanova team represents the company's products and solutions in markets outside North and South America and Canada. Test This segment has four facilities in the United States and six outside the United States. ETS-Lindgren is an industry leader in designing and manufacturing products, which provide its customers with the ability to measure and contain magnetic, electromagnetic, and acoustic energy. It supplies its customers with a broad range of isolated environments and turnkey systems, including RF test facilities, acoustic test enclosures, RF and magnetically shielded rooms, secure communication facilities, RF measurement systems and broadcast, and recording studios. Many of these facilities include proprietary features, such as shielded doors and windows. ETS-Lindgren also provides the design, program management, installation, and integration services required to successfully complete these types of facilities. ETS-Lindgren also supplies customers with a broad range of components, including RF absorptive materials, RF filters, active compensation systems, antennas, antenna masts, turntables and electric and magnetic probes, RF test cells, proprietary measurement software, and other test accessories required to perform a variety of tests. ETS-Lindgren offers a variety of services, including calibration for antennas and field probes, chamber certification, field surveys, customer training and a variety of product tests. ETS-Lindgren's test labs are accredited by the following organizations: American Association for Laboratory Accreditation, National Voluntary Laboratory Accreditation Program, and CTIA-The Wireless Association Accredited Test Lab. ETS-Lindgren serves the acoustics, medical, health and safety, electronics, wireless communications, automotive, and defense markets. Strategy The company's corporate strategy is centered on a multi-segment approach designed to enhance the strength and sustainability of sales and earnings growth by providing lower risk through diversification. Marketing and Sales The company's products generally are distributed to customers through a domestic and foreign network of distributors, sales representatives, direct sales teams, and in-house sales personnel. The company's sales to international customers accounted for approximately 30% of its total revenue in 2023. Government Contracts Some of the company's products are sold to the U.S. Government either directly under contracts with the Army, Navy, and Air Force, as well as other Government agencies or indirectly under subcontracts with their prime contractors. Direct and indirect sales to the U.S. Government, primarily related to the A&D segment, accounted for approximately 26% of its total revenue in 2023. Research and Development Total company and customer-sponsored research and development expenses were approximately $13.0 million for 2023. Competition Primary competitors of the company's A&D segment include Pall Corporation, Moog, Inc., Safran (Sofrance), CLARCOR Inc., TransDigm (PneuDraulics), Marotta Controls, Parker Hannifin, and Collins Aerospace. Significant competitors of the company's USG segment include OMICRON Electronics Corp., Megger Group Limited, Vaisala, and Qualitrol Company LLC (a subsidiary of Fortive Corporation). The company's Test segment is a global leader in EM shielding. Significant competitors in this market include Rohde & Schwarz GMBH, Microwave Vision SA (MVG), TDK RF Solutions Inc., Albatross GmbH, IMEDCO AG, and Universal Shielding Corp. History ESCO Technologies Inc. was incorporated in Missouri in 1990.