ESCO Technologies Inc. (ESE): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that just closed a transformative fiscal year 2025, and honestly, the numbers speak for themselves: ESCO Technologies Inc. (ESE) posted net sales of approximately $1.1 billion while building a record order backlog exceeding $1.13 billion as of September 30, 2025, all while generating $200 million in cash flow from operations. This isn't just growth; it's a model built on mission-critical precision manufacturing for the US and UK Navy, plus sticky diagnostic services for electric utilities, which means their value proposition is deeply embedded in essential infrastructure. Before you dive into the full nine blocks below, see how this dual focus on defense and grid reliability creates such high switching costs for their customers.

ESCO Technologies Inc. (ESE) - Canvas Business Model: Key Partnerships

You're looking at the relationships that fuel ESCO Technologies Inc.'s specialized segments, which is where the real engineering value is locked in. These aren't just transactional links; they are deep, often contractual ties that secure long-term revenue visibility. Here's what the latest numbers from fiscal year 2025 tell us about these critical alliances.

• Strategic suppliers for electronic test and precision measurement devices.

While specific supplier names aren't public, the performance of the Test segment shows the strength of the supply chain supporting these high-precision areas. For the full fiscal year 2025, the Test segment saw net sales increase by $27.7 million compared to 2024. In the third quarter of 2025 alone, Entered Orders for the Test business were $61 million, even with some margin pressure from tariffs and inflation.

Metric	FY 2025 Value	Q3 2025 Value
Test Segment Net Sales Growth (vs. prior year)	$27.7 million increase	$11.6 million increase (21 percent)
Test Segment Entered Orders	Not specified	$61 million

• Long-term contractual relationships with major Aerospace and Defense (A&D) prime contractors.

This is clearly a cornerstone partnership area, evidenced by the segment's massive growth. Direct and indirect sales to the U.S. Government, which flow through these A&D contracts, made up 23% of ESCO Technologies Inc.'s total revenue from continuing operations in 2025. The A&D segment's net sales jumped by $137.7 million, or 40.4%, in FY 2025 over 2024. This was heavily weighted toward Navy revenues, which increased by $94.1 million.

The strength is reflected in the overall backlog, which hit a record of nearly $1.2 billion at the end of Q3 2025. The company closed the acquisition of ESCO Maritime Solutions (Maritime) on April 25, 2025, for approximately $472 million, adding naval product lines that complement existing contracts.

• Collaborations with technology research institutions for advanced engineering.

Specific financial data on research collaborations isn't itemized, but the high-value nature of the A&D segment, which includes proprietary design work like cartridge actuated devices/propellant actuated devices (CAD/PAD) orders of $6 million in Q2 2025, suggests ongoing technical partnerships are vital for maintaining product relevance.

• Specialized distributors for utility and industrial diagnostic equipment.

The Utility Solutions Group (USG) relies on these channels to place its diagnostic equipment. For FY 2025, the USG segment saw net sales increase by $10.9 million. Doble, a key part of this group, saw its sales increase by $18 million, or 6.0%, for the full year 2025, driven by higher offline test equipment and services.

The overall book-to-bill ratio for ESCO Technologies Inc. from continuing operations for FY 2025 was 1.43x, indicating strong demand flowing through all channels, including these specialized distributors.

• Joint ventures for advanced sensor and measurement system defintely development.

The company's strategic shift in 2025, including the sale of VACCO Industries on July 18, 2025, for net proceeds of approximately $270 million, suggests a focus on core, high-growth areas where such joint ventures might be concentrated, such as the newly acquired Maritime business which focuses on Signature Management and Power Management solutions.

Overall, ESCO Technologies Inc. reported total sales from continuing operations of $1,095.4 million for fiscal year 2025.

ESCO Technologies Inc. (ESE) - Canvas Business Model: Key Activities

You're looking at the core engine of ESCO Technologies Inc. as of late 2025, focusing on what they actually do to generate revenue. The numbers show a company that successfully integrated a major acquisition while driving strong organic growth across its engineered solutions.

Precision manufacturing of highly engineered, mission-critical components. This activity is heavily represented in the Aerospace & Defense (A&D) and Test segments. The overall company sales for Fiscal Year 2025 reached $1,095.4 million, a 19.2% increase over 2024 sales of $919.1 million. The A&D segment was a primary driver, with its net sales increasing by $137.7 million, or 40.4%, compared to 2024. The Test segment also contributed, seeing its net sales rise by $27.7 million (or 13.2%) in 2025.

Research and Development (R&D) of advanced sensing and diagnostic systems. While the commitment to new products is clear, specific R&D spending figures for FY 2025 aren't explicitly broken out in the latest reports. However, capital expenditures from continuing operations were $36.3 million in 2025, up from $28.3 million in 2024, with modest increases across all three business segments.

Engineering specialized fluid control and composite technologies for Navy platforms. This falls squarely within the A&D segment, which saw significant strength from Navy contracts. For the full year 2025, Navy revenues increased by $94.1 million year-over-year. Looking at the third quarter of 2025 specifically, Navy sales jumped by $34 million, representing a 200 percent increase compared to Q3 2024. This activity is bolstered by the integration of the Maritime acquisition.

Providing diagnostic software and services to electric utility customers (Doble). This is the core of the Utility Solutions Group (USG). For the full fiscal year 2025, Doble sales increased by $17.8 million, while the NRG portion of the segment saw a decrease of $7.0 million. In the fourth quarter of 2025, Doble sales alone increased by $6 million (or 6.8 percent) year-over-year.

Integrating the Maritime acquisition into the A&D segment for expanded Navy presence. The acquisition of the Signature Management & Power business (now Maritime) closed on April 25, 2025, for a purchase price of approximately $472 million. This integration immediately impacted the A&D segment's top line. Maritime contributed $95 million in sales revenue for FY 2025. The segment's total orders for 2025 included $364.2 million of Maritime acquired backlog, leading to a segment book-to-bill ratio of 1.43x. Management guided that Maritime is expected to contribute an Adjusted EPS in the range of $0.20 - $0.30 in FY 2025.

Here's a quick look at how the continuing operations segments performed in terms of sales for the full year 2025:

Segment	FY 2025 Net Sales (Millions)	Year-over-Year Sales Increase (Millions)	Year-over-Year Sales Growth Percentage
Aerospace & Defense (A&D)	Implied: $478.0	$137.7	40.4%
Utility Solutions Group (USG)	Implied: $380.0	$10.9	3.0%
Test	Implied: $237.4	$27.7	13.2%
Consolidated Total (Continuing Ops)	$1,095.4	$176.3	19.2%

The total new orders received from continuing operations for 2025 were $1,564.8 million.

ESCO Technologies Inc. (ESE) - Canvas Business Model: Key Resources

You're looking at the core assets ESCO Technologies Inc. (ESE) relies on to execute its strategy, which is heavily focused on highly-engineered products in niche, demanding markets. These aren't just assets; they are the foundation of their competitive moat.

The company's intellectual property is definitely a key differentiator. In the Filtration/Fluid Flow segment, for example, you see patented or proprietary technology underpinning products like VACCO's quieting technology and Westland's signature reduction solutions, which are critical for defense applications. The RF Shielding & Test segment also actively seeks patent protection for novel designs, such as those for shielded enclosures and anechoic chambers. Furthermore, the Utility Solutions Group owns intellectual property, including its TWACS technology, which is necessary for its advanced metering applications. This IP creates sustainable recurring revenue opportunities.

The human capital is substantial, supporting the three core technology-driven business segments. ESCO Technologies Inc. has over 3,000 employees dedicated to solving difficult technical challenges through superior engineering and precision manufacturing. These segments are:

• Aerospace & Defense
• Utility Solutions Group
• RF Test & Measurement

The sheer volume of committed future work underscores the demand for these specialized resources. ESCO Technologies Inc. reported a record order backlog of $1.17 billion as of June 30, 2025, which is the latest reported record figure and comfortably exceeds the $1.13 billion benchmark you mentioned. This backlog provides excellent revenue visibility.

To support this backlog and its global customer base, ESCO Technologies Inc. maintains advanced, certified manufacturing capabilities across multiple continents. You'll find their manufacturing facilities located in the US, Finland, the UK, China and Canada. This global footprint helps them serve diverse end-markets like defense, aerospace, and electric utilities effectively.

Financially, the operational strength translated directly into significant cash generation in fiscal year 2025. ESCO Technologies Inc. had a breakout year in operating cash flow from continuing operations, delivering just over $200 million for FY 2025. This compares favorably to the nearly $122 million generated from continuing operations in the prior year, showing strong execution on the bottom line.

Here's a quick look at how the segments contribute to the overall technical and operational base:

Business Segment	Key Product/Service Focus	Example of Specialized Output
Aerospace & Defense	Highly-engineered hydraulic filtration systems, fluid control valves	Shock and vibration dampening tiles for U.S. Navy submarines
Utility Solutions Group	Diagnostic instruments, condition monitoring, data analytics	Doble diagnostic equipment and software for electric grid reliability
RF Test & Measurement	Products and systems to measure and control RF and acoustic energy	Turnkey RF test facilities and magnetically shielded rooms

ESCO Technologies Inc. (ESE) - Canvas Business Model: Value Propositions

ESCO Technologies Inc.'s value proposition centers on providing highly engineered products and solutions where failure is not an option, directly translating into financial performance that supports this premium positioning. For the fiscal year ending September 30, 2025, net sales from continuing operations reached $1,095.4 million, marking a 19.2% increase over the prior year, while adjusted diluted EPS from continuing operations grew to $6.03, up 26.4% from 2024.

The commitment to high-reliability, mission-critical products for demanding aerospace and defense applications is a core value driver. The Aerospace & Defense (A&D) segment alone accounted for 44% of total revenue from continuing operations in fiscal year 2025, generating $478.2 million in sales. This segment saw organic sales growth of 24% year-over-year in fiscal year 2025, and its backlog at year-end stood at $803.0 million, representing a significant portion of the company's total record backlog of $1,133.6 million.

Specialized diagnostic instruments and software for electric utility grid reliability, housed in the Utility Solutions Group (USG), contributed approximately 35% of total revenue from continuing operations in 2025, with sales increasing by $10.9 million compared to 2024. Within the Test segment, which provides capabilities to identify and measure electromagnetic and acoustic energy, entered orders increased 24.6% to a record $266 million for the full year 2025.

The market leadership in niche, engineered solutions is evidenced by the Test segment's contribution to the overall financial health, with its full-year 2025 entered orders jumping 56.5% to over $1.6 billion across the company, resulting in a record year-end backlog of $1.1 billion. The global RF test equipment market, where ESCO Technologies Inc. competes, was valued at USD 3.99 billion in 2025.

Deep domain expertise in Navy platforms is a tangible value proposition, as demonstrated by specific order performance:

• Q3 2025 Navy sales increased by $34 million, representing a 200 percent increase year-over-year.
• Q1 2025 entered orders saw strength in Navy content, despite a decrease driven by large orders in the prior year for Virginia Class Block V surface hull tiles.
• The strategic acquisition of Maritime strengthened defense power systems expertise, contributing $95.2 million in net sales increase for FY 2025.

This focus on critical defense platforms underpins the high-reliability value proposition. ESCO completed the sale of its VACCO Industries space business for net proceeds of about $270 million, using the proceeds primarily to reduce debt and sharpen focus on these core, high-margin markets.

The commitment to superior quality and operational efficiency translates directly into margin expansion and cash generation. The company delivered $200 million in net cash from operating activities from continuing operations for the 2025 fiscal year. The adjusted EBIT margin for Q3 2025 reached 28.8 percent, up from 23.2 percent in Q3 2024, showing pricing power and leverage on higher volume.

Here is a breakdown of the continuing operations segment performance for Fiscal Year 2025:

Segment	FY 2025 Net Sales (Millions USD)	% of Total Continuing Revenue (FY 2025)	FY 2025 Backlog (Millions USD)
Aerospace & Defense (A&D)	$478.2	44%	$803.0
Utility Solutions Group (USG)	Approx. $380	35%	$143.4
Test	Implied Remainder	21%	$187.2

ESCO Technologies Inc. (ESE) - Canvas Business Model: Customer Relationships

You're looking at how ESCO Technologies Inc. locks in its key customers, which is heavily weighted toward long-cycle, high-specification buyers. The relationships here are built on deep integration and performance validation, not just transactional sales.

Deep, long-term, and consultative relationships with government and defense clients.

The reliance on the U.S. Government is substantial and forms a core pillar of the customer base. Direct and indirect sales to the U.S. Government, primarily within the Aerospace & Defense (A&D) segment, represented approximately 23% of total revenue from continuing operations in fiscal year 2025. The A&D segment itself was a major revenue driver, accounting for approximately 44% of total revenue from continuing operations in 2025. This isn't just steady; it's accelerating. For instance, in the third quarter of 2025, A&D sales surged 56% year-over-year, with Navy orders specifically increasing by $34 million or 200% compared to the prior year. The full fiscal year 2025 saw A&D segment sales hit $478 million, a 40.4% increase. The company is actively supporting customer ramp-ups, as underlying demand in both commercial aerospace and Navy markets remains very strong.

The consultative nature is evident in the specialized products sold, like those for the newly integrated Maritime business, which contributed $95 million in revenue growth for the full fiscal year 2025.

Dedicated service and training for complex diagnostic equipment (Doble).

For the Utility Solutions Group, the relationship centers on maintaining critical infrastructure assets using equipment like Doble diagnostic tools. This drives recurring service and support revenue. Doble's performance in the second quarter of 2025 showed strength in its services component, with overall sales increasing by $3.5 million (5 percent). Furthermore, Doble's entered orders grew by $11 million (17 percent) in Q2 2025, specifically from offline test equipment and services orders. Year-to-date through Q3 2025, Doble sales showed a 6% increase. This indicates a consistent need for ongoing support and training to keep complex utility testing products operational.

Direct sales and engineering support for custom-engineered solutions.

For solutions that aren't off-the-shelf, ESCO Technologies Inc. relies on direct engagement. The company's overall strategy involves delivering highly engineered products, which necessitates close collaboration with the customer's engineering teams from the design phase onward. This is reflected in the balance sheet items related to long-term contracts:

Balance Sheet Item (as of March 31, 2025)	Amount (in millions USD)
Contract Assets	$125.3
Contract Liabilities	$138.5
Accounts Receivable	$218.1

The $138.5 million in contract liabilities at March 31, 2025 represents customer prepayments or progress billing on these long-term, custom-engineered projects.

High switching costs due to proprietary technology embedded in critical systems.

The stickiness of these customer relationships is cemented by the deep integration of ESCO Technologies Inc.'s proprietary technology. The strategy is to embed this technology so thoroughly into critical systems-like fluid control products for the Navy or RF test systems-that replacement becomes prohibitively difficult. This structural barrier to exit is a key feature of the relationship.

The overall strength of this embedded relationship model is visible in the order book. Full fiscal year 2025 entered orders jumped 56.5% to over $1.6 billion. This resulted in a record backlog of $1.1 billion year-end, which was reported as $1.17 billion at the end of Q3 2025.

• The Test business, which relies on quality checks via its tools, saw full-year 2025 entered orders increase 24.6% to a record $266 million.
• The company's focus is on markets where quality and reliability are non-negotiable requirements for contract continuation.

The company is defintely locking in future revenue through these deep ties.

ESCO Technologies Inc. (ESE) - Canvas Business Model: Channels

You're looking at how ESCO Technologies Inc. gets its engineered products and solutions into the hands of its critical customers across defense, aerospace, and utilities. The channel strategy is clearly segmented to match the complexity and regulatory nature of each market.

Direct sales force for large government and defense contracts.

This channel focuses heavily on the Aerospace & Defense (A&D) segment, which is mission-critical work. For fiscal year 2025, the A&D segment generated net sales of $478 million. That segment saw organic sales growth of 12.5 percent for the full year 2025, showing the direct relationship with prime contractors is robust.

Specialized distributors and representatives for Test and Measurement products.

The Test segment, which helps customers identify, measure, and contain energy, relies on this specialized network. Full-year 2025 sales for the Test segment reached $27.7 million in growth over the prior year. Entered orders for the Test business were up 24.6 percent for the full year 2025, hitting a record of $266 million.

Direct-to-customer service and support teams for Utility Solutions Group (USG).

The Utility Solutions Group (USG) utilizes direct support, especially for its diagnostic testing solutions like Doble. For fiscal year 2025, USG sales were $380 million, representing a 3.0 percent increase year-over-year. Doble sales specifically increased by 6.0 percent for the full year 2025.

Global network of offices and manufacturing facilities.

ESCO Technologies Inc. supports these channels through a physical footprint. The company has offices and manufacturing facilities worldwide. The corporate office is located at 9900A Clayton Road; Saint Louis, MO 63124; United States. The entire operation is supported by 3,281 total employees as of late 2025.

Here's a quick look at the scale of the business supported by these channels:

Metric	Amount (FY 2025)
Total Net Sales (Continuing Operations)	$1.1 billion
Net Cash from Operating Activities (Continuing Operations)	$200.4 million
Adjusted Earnings Per Share (EPS)	$6.03
Year-End Backlog	$1.1 billion
Total Employees	3,281

The channels are clearly defined by the end-market, which helps maintain the high-margin focus ESCO Technologies Inc. has achieved, evidenced by the 26.4 percent growth in adjusted EPS for FY 2025.

• Direct sales target large, complex government/defense programs.
• Specialized distributors cover niche Test and Measurement requirements.
• Direct support teams service utility customers like Doble and NRG.
• The global footprint supports manufacturing and worldwide service delivery.

ESCO Technologies Inc. (ESE) - Canvas Business Model: Customer Segments

ESCO Technologies Inc. (ESE) serves distinct, high-value customer segments across its continuing operations as of late 2025, with significant financial activity noted across these groups throughout Fiscal Year 2025.

The company's total net sales for the twelve months ending September 30, 2025, reached $1,095.4 million, a 19.2% increase from $919.1 million in 2024. This growth was heavily influenced by the customer segments detailed below.

The overall customer base supports a record backlog of $1.17 billion as of the third quarter of Fiscal Year 2025.

Here's a breakdown of the key customer segments and their financial impact based on Fiscal Year 2025 data:

Aerospace & Defense (A&D) Customers: US and UK Navy/Defense contractors and submarine builders, and Commercial Aerospace manufacturers for specialty filtration and components.

• This segment drove a $137.7 million increase in net sales for FY 2025 compared to FY 2024, representing a 40.4% increase.
• Navy revenues contributed a $94.1 million increase to net sales in FY 2025 over FY 2024.
• Commercial aerospace revenues added a $39.8 million increase to net sales in FY 2025 over FY 2024.
• Q4 2025 A&D sales were just over $170 million, a 72% reported growth.
• Q3 2025 Navy sales specifically increased by $34 million or 200% compared to Q3 2024.
• Q1 2025 Navy sales were up $14 million or 56% over the prior year.

Utility Solutions Group (USG) Customers: Electric Utility companies and grid operators.

• This group contributed a $10.9 million increase to net sales in FY 2025 compared to FY 2024.
• Q1 2025 orders for the USG segment grew over 16%, with Doble orders up 15%.
• Q2 2025 Doble orders increased by 17% to $92 million.
• NRG orders in Q2 2025 increased by 15%.

Test Customers: Industrial power users and renewable energy providers, and Medical and industrial shielding customers.

• The Test segment saw a $27.7 million increase in net sales in FY 2025 compared to FY 2024.
• Q1 2025 orders for the Test business grew over 40%.
• Medical and industrial shielding orders fueled the Q1 2025 order increase.

The following table summarizes key order and sales data points across the continuing segments for Fiscal Year 2025:

Customer Segment Focus	Metric Type	Value (FY 2025)	Comparison/Driver
Aerospace & Defense (A&D)	Net Sales Increase (YoY)	$137.7 million	40.4% increase over 2024
A&D - Navy Revenue Driver	Net Sales Increase (YoY)	$94.1 million	Contribution to A&D sales growth
A&D - Commercial Aerospace Driver	Net Sales Increase (YoY)	$39.8 million	Contribution to A&D sales growth
Utility Solutions Group (USG)	Net Sales Increase (YoY)	$10.9 million	Increase over 2024
Test Segment	Net Sales Increase (YoY)	$27.7 million	Increase over 2024
A&D (Q4 Reported)	Sales	Just over $170 million	72% reported growth
USG (Q2 Doble Orders)	Order Value	$92 million	17% increase
Total Company (FY 2025)	Entered Orders	$1,564.8 million	Sum of A&D ($895.6M), USG ($403.5M), Test ($265.7M)

The company's overall market capitalization stood at $5.6B as of November 20, 2025.

ESCO Technologies Inc. (ESE) - Canvas Business Model: Cost Structure

You're looking at the cost side of ESCO Technologies Inc.'s business as of late 2025, right after they closed a major deal. The cost structure is heavily influenced by the nature of their specialized engineering and recent strategic moves.

• High fixed costs associated with advanced manufacturing and specialized equipment. The need for precision and specialized production capacity in segments like Aerospace & Defense (A&D) means a significant portion of costs are tied up in maintaining and upgrading high-tolerance manufacturing facilities and proprietary tooling.
• Significant investment in Research and Development (R&D) for proprietary technology. R&D spending is a structural cost driver, contributing to the overall Selling, General, and Administrative (SG&A) increase seen in the first half of fiscal year 2025 compared to the prior year.
• Selling, General, and Administrative (SG&A) expenses of $234.6 million in FY 2025. This figure represents the reported overhead and operational spending base for the full fiscal year.
• Costs related to integrating the Maritime acquisition. The acquisition of the Signature Management & Power (SM&P) business of Ultra Maritime, which closed in April 2025 for a purchase price of $550 million, created immediate cost impacts.
• Raw material and component costs, subject to supply chain and inflationary pressures. Management noted that inflationary pressures partially offset leverage from higher volume and price increases across segments in Q1 2025.

The impact of the SM&P acquisition is clearly visible across several cost line items for fiscal year 2025, which ended September 30, 2025. You can see how these costs stack up against the reported financials:

Cost Component	FY 2025 Amount (Millions USD)	Context/Driver
SG&A Expenses (Mandated)	$234.6	Full-year operating overhead.
Amortization of Intangible Assets	$53.3	Includes $41.4 from acquired intangibles (Maritime).
Acquisition Costs (Corporate)	$5.5	Primarily related to the Maritime acquisition.
UK Stamp Duty Charges (Other Expenses, net)	$1.3	Direct cost associated with the Maritime acquisition.
Pretax Charges Excluded from Adjusted EPS (Acquisition/Integration)	$52.1	Total pretax charges for acquisition costs and purchase accounting adjustments.

To give you a better sense of the scale, the SG&A increase of $26.4 million in FY 2025 compared to FY 2024 was driven by the A&D segment due to the Maritime acquisition, plus higher sales and inflation in the Test and USG segments, and corporate acquisition costs. For context, ESCO Technologies Inc.'s reported sales for FY 2025 were nearly $1.1 billion, with an Adjusted EBIT margin of 27.1 percent for the year.

Here's a breakdown of the reported SG&A trend leading up to the year-end:

• Q1 2025 SG&A: $58.784 million.
• First Nine Months 2025 SG&A: $171.3 million (or 23.1% of net sales).
• Q4 2025 SG&A: $63.333 million.

The amortization expense itself saw a significant jump, going from $32.8 million in FY 2024 to $53.3 million in FY 2025, largely because of the amortization of intangible assets recognized from the Maritime deal. That's a big chunk of non-cash expense that you have to account for when looking at the total cost base. Finance: draft 13-week cash view by Friday.

ESCO Technologies Inc. (ESE) - Canvas Business Model: Revenue Streams

ESCO Technologies Inc.'s revenue streams for the fiscal year ending September 30, 2025, were anchored by strong performance across its three continuing operations segments. Total net sales from continuing operations reached $1,095.4 million in FY 2025, representing a 19.2% increase from the prior year.

The revenue generation is segmented across the following primary areas:

Segment	FY 2025 Net Sales (Continuing Operations)	Year-over-Year Increase
Aerospace & Defense (A&D)	$478 million	40.4%
RF Test & Measurement (Test)	$237.2 million	13.2%
Utility Solutions Group (USG)	Calculated from total increase	3.0%

The A&D segment saw its net sales increase by $137 million, or 40.4%, to reach $478 million in FY 2025, driven by a $94.1 million increase in navy revenues and a $39.8 million increase in commercial aerospace revenues.

The Test segment contributed revenue of $237.2 million, up 13.2% from 2024, stemming from higher test and measurement, industrial shielding, medical services, and filters volumes.

The USG segment's net sales increased by $10.9 million, or 3.0%, in FY 2025 compared to 2024.

Revenue streams are further defined by the nature of the sales:

• Product sales from the Aerospace & Defense segment, which reached $478 million in FY 2025.
• Sales of diagnostic instruments, software, and services from the Utility Solutions Group (USG).
• Sales of RF Test and Measurement equipment and shielding solutions from the Test segment.
• Long-term contracts and recurring revenue from defense and utility maintenance, evidenced by a record year-end backlog of $1,133.6 million at September 30, 2025.
• Approximately 64% of the total backlog is expected to convert to revenue in fiscal 2026, supporting the focus on long-term markets.