Espey Mfg. & Electronics Corp. (ESP): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dos eletrônicos de defesa de alto risco, Espey Mfg. & A Electronics Corp. (ESP) é uma potência crítica de engenharia, transformando desafios tecnológicos complexos em soluções de engenharia de precisão para aplicações militares e aeroespaciais. Esse modelo de negócios Canvas revela como um fabricante de nicho navega no intrincado cenário da tecnologia de defesa, alavancando a experiência especializada em engenharia e as parcerias estratégicas para fornecer sistemas eletrônicos críticos de missão que literalmente mantêm a infraestrutura nacional de defesa funcionando sem problemas e com segurança.

Espey Mfg. & Electronics Corp. (ESP) - Modelo de Negócios: Principais Parcerias

Departamento de Defesa e Empreiteiros Militares

A partir de 2024, Espey Mfg. & A Electronics Corp. mantém parcerias críticas com o Departamento de Defesa dos EUA, gerando US $ 14,2 milhões em contratos relacionados à defesa no ano fiscal de 2023.

Parceiro militar	Valor do contrato	Foco primário
Exército dos EUA	US $ 5,6 milhões	Sistemas de conversão de energia
Marinha dos EUA	US $ 4,3 milhões	Subsistemas eletrônicos
Força Aérea dos EUA	US $ 4,3 milhões	Eletrônica especializada

Fornecedores aeroespaciais e de eletrônicos de defesa

A Espey colabora com vários fornecedores de eletrônicos aeroespaciais, com parcerias estratégicas totalizando aproximadamente US $ 8,7 milhões em compras de componentes para 2023.

• Raytheon Technologies
• Lockheed Martin
• BAE Systems
• Northrop Grumman

Fabricantes de componentes eletrônicos especializados

As parcerias de fabricação de componentes representam US $ 6,5 milhões em acordos de fornecimento estratégico para 2024.

Fabricante	Tipo de componente	Valor anual da parceria
Texas Instruments	Componentes semicondutores	US $ 2,1 milhões
Dispositivos analógicos	Circuitos de precisão	US $ 1,8 milhão
Keysight Technologies	Equipamento de teste	US $ 2,6 milhões

Empresas de consultoria de engenharia e design

As parcerias de engenharia totalizaram US $ 3,2 milhões em investimentos colaborativos de pesquisa e desenvolvimento para 2023.

• SAIC (Science Applications International Corporation)
• Booz Allen Hamilton
• Leidos

Instituições de pesquisa

As colaborações de pesquisa com instituições focadas em tecnologia totalizaram US $ 2,1 milhões em programas de desenvolvimento conjunto para 2024.

Instituição	Foco na pesquisa	Valor da parceria
MIT Lincoln Laboratory	Eletrônica de defesa	US $ 1,2 milhão
Johns Hopkins Applied Physics Lab	Sistemas avançados	US $ 0,9 milhão

Espey Mfg. & Electronics Corp. (ESP) - Modelo de negócios: Atividades -chave

Design e fabricação eletrônicos personalizados

Projetos anuais de design eletrônico personalizado: 42 Concluído em 2023

Categoria de design	Número de projetos	Valor médio do projeto
Eletrônica militar	24	$375,000
Eletrônica aeroespacial	12	$485,000
Sistemas comerciais	6	$225,000

Fonte de alimentação e produção de transformadores

Capacidade de produção: 3.500 unidades por trimestre

• Produção de transformadores de alta tensão: 1.200 unidades
• Fontes de alimentação de nível militar: 1.800 unidades
• Designs de transformadores especializados: 500 unidades

Desenvolvimento eletrônico militar e aeroespacial

Investimento total de P&D em 2023: US $ 4,2 milhões

Área de desenvolvimento	Orçamento alocado	Projetos ativos
Eletrônica militar	US $ 2,5 milhões	18 projetos
Eletrônica aeroespacial	US $ 1,7 milhão	12 projetos

Garantia de qualidade e teste de sistemas eletrônicos

Horário anual de teste: 12.500 horas

• Teste de conformidade padrão militar: 6.000 horas
• Triagem de estresse ambiental: 3.500 horas
• Teste de confiabilidade e desempenho: 3.000 horas

Engenharia Avançada e Desenvolvimento de Protótipos

Orçamento de desenvolvimento de protótipo: US $ 1,8 milhão em 2023

Categoria de protótipo	Número de protótipos	Tempo médio de desenvolvimento
Protótipos militares	15	8,5 meses
Protótipos aeroespaciais	8	10,2 meses
Protótipos comerciais	5	6,3 meses

Espey Mfg. & Electronics Corp. (ESP) - Modelo de negócios: Recursos -chave

Talento especializado em engenharia

A partir de 2024, Espey Mfg. & A Electronics Corp. emprega 64 funcionários em período integral, com aproximadamente 45% dedicados a funções de engenharia e técnicas.

Categoria de funcionários	Número de funcionários	Percentagem
Total de funcionários	64	100%
Pessoal de engenharia	29	45.3%

Instalações de fabricação avançadas

Espey opera a Instalação de fabricação de 35.000 pés quadrados Localizado em Saratoga Springs, Nova York.

• A instalação inclui espaço de fabricação certificado ISO 9001: 2015
• Equipado com PCB avançado e equipamento de montagem eletrônica
• Capaz de lidar com a produção complexa de defesa e eletrônica industrial

Recursos proprietários de design eletrônico

A empresa mantém uma propriedade intelectual significativa com múltiplas patentes ativas nas tecnologias de conversão de energia e design eletrônico.

Categoria de patentes	Número de patentes ativas
Tecnologias de conversão de energia	7
Inovações de design eletrônico	5

Certificações extensas do setor de defesa

Espey mantém certificações críticas do setor de defesa, incluindo:

• Certificação do sistema de gerenciamento da qualidade AS9100D
• NADCAP (Programa Nacional de Credenciamento a Aeroespacial e Defesa dos Contratantes)
• ITAR (Regulamentos Internacionais de Tráfego em Armas) registrado

Propriedade intelectual e experiência técnica

Em 2024, a empresa investiu US $ 1,2 milhão em pesquisa e desenvolvimento, representando aproximadamente 8,5% de sua receita anual total.

Métrica de P&D	Valor
Investimento anual de P&D	$1,200,000
Porcentagem de receita	8.5%

Espey Mfg. & Electronics Corp. (ESP) - Modelo de Negócios: Proposições de Valor

Soluções eletrônicas de alta confiabilidade para setor de defesa

Espey Mfg. & Electronics Corp. fornece Soluções eletrônicas críticas da missão Com as seguintes especificações:

Categoria de produto	Receita anual	Segmento de mercado
Eletrônica de defesa	US $ 17,4 milhões (2023)	Militar/aeroespacial
Sistemas de conversão de energia	US $ 5,6 milhões (2023)	Infraestrutura crítica

Serviços personalizados de engenharia e fabricação

Espey oferece recursos de engenharia especializados:

• Design de fonte de alimentação personalizado
• Escudo de interferência eletromagnética (EMI)
• Conjuntos eletrônicos robustos

Componentes eletrônicos de precisão para aplicações críticas

Tipo de componente	Volume anual de produção	Classificação de confiabilidade
Conversores de energia	3.200 unidades	99,98% de confiabilidade operacional
Conjuntos elétricos	2.800 unidades	Certificado MIL-STD-810G

Suporte técnico de longo prazo e gerenciamento do ciclo de vida do produto

Métricas de suporte técnico:

• Ciclo de vida média do produto: 15-20 anos
• Disponibilidade de peças de reposição: mais de 10 anos após a produção
• Tempo de resposta para consultas técnicas: 24 horas

Conformidade com padrões rigorosos e aeroespaciais rigorosos

Certificação	Nível de conformidade	Padrões aplicáveis
AS9100D	Totalmente compatível	Gerenciamento da qualidade aeroespacial
MIL-STD-461	Totalmente compatível	Interferência eletromagnética
ISO 9001: 2015	Certificado	Sistemas de gestão da qualidade

Espey Mfg. & Electronics Corp. (ESP) - Modelo de Negócios: Relacionamentos do Cliente

Equipes diretas de vendas e suporte técnico

A partir de 2024, Espey Mfg. & A Electronics Corp. mantém uma equipe de vendas dedicada de 12 profissionais. A equipe de suporte técnico compreende 8 engenheiros especializados com uma experiência média do setor de 14,5 anos.

Métrica de suporte ao cliente	2024 dados
Tempo médio de resposta	2,3 horas
Orçamento anual de suporte ao cliente	US $ 1,2 milhão
Taxa de satisfação do cliente	92.4%

Relacionamentos baseados em contratos de longo prazo

Em 2024, a Espey mantém 37 contratos ativos de longo prazo com clientes de defesa e industrial, com valores de contrato que variam de US $ 500.000 a US $ 3,2 milhões.

• Duração do contrato: 3-5 anos
• Valor médio do contrato: US $ 1,75 milhão
• Taxa de renovação: 84,6%

Consulta de engenharia responsiva

Espey fornece Consulta de engenharia sob demanda com uma equipe dedicada de 6 engenheiros seniores especializados em conversão de energia e eletrônicos militares.

Métrica de consulta	2024 Estatísticas
Pedidos de consulta tratados anualmente	124 solicitações
Duração média da consulta	12,5 horas

Manutenção técnica e atualizações em andamento

Os serviços de manutenção técnica abrangem 42 sistemas clientes existentes, com um orçamento anual de manutenção de US $ 780.000.

• Frequência de manutenção preventiva: trimestral
• Tempo de resposta de emergência: menos de 4 horas
• Ciclo de atualização do sistema: a cada 18-24 meses

Modelo de engajamento de cliente personalizado

Espey implementa a Abordagem personalizada de gerenciamento de relacionamento com o cliente com gerentes de conta dedicados para cada cliente principal.

Métrica de engajamento do cliente	2024 dados
Gerentes de conta dedicados	9 profissionais
Taxa de retenção de clientes	88.3%
Pontos de contato anuais de interação do cliente	16-22 interações

Espey Mfg. & Electronics Corp. (ESP) - Modelo de Negócios: Canais

Força de vendas direta

A partir de 2024, Espey Mfg. & A Electronics Corp. mantém uma equipe de vendas direta especializada focada nos mercados de defesa e eletrônicos militares. A força de vendas consiste em 12 profissionais dedicados com uma experiência média do setor de 15 anos.

Métrica da equipe de vendas	2024 dados
Total de representantes de vendas	12
Experiência média do setor	15 anos
Cobertura anual de vendas	US $ 24,3 milhões

Feiras de comércio da indústria de defesa

Espey participa de exposições importantes no setor de defesa para mostrar recursos tecnológicos.

• Reunião Anual da Associação dos Estados Unidos (AUSA)
• Exposição de espaço-ar-ar-ar-ar-ar-ar-marinho
• Equipamento de Defesa e Segurança Internacional (DSEI)

Feira de feira	Custo de participação anual	Geração potencial de chumbo
Reunião Anual da AUSA	$87,500	45-50 leads qualificados
Exposição de espaço-ar-ar	$65,000	35-40 leads qualificados

Plataformas de compras governamentais

Espey se envolve ativamente através de vários canais de compras governamentais.

• Sistema para Gerenciamento de Prêmios (SAM)
• Plataformas da Agência de Logística de Defesa (DLA)
• Oportunidades de negócios federais (beta.sam.gov)

Plataforma de compras	Valor anual do contrato	Taxa de sucesso
Sam registro	US $ 42,1 milhões em contratos potenciais	68% de taxa de sucesso da oferta

Documentação técnica online

Recursos técnicos digitais abrangentes suportam o envolvimento do cliente.

• Folhas detalhadas de especificação de produto
• Documentos de design de engenharia
• Documentação de certificação de conformidade

Métrica de documentação	2024 Estatísticas
Total de documentos técnicos online	287 documentos
Downloads mensais de documentos técnicos	1.425 downloads

Marketing digital específico da indústria

Estratégias de marketing digital direcionadas em plataformas de tecnologia de defesa especializadas.

• Rede de tecnologia de defesa do LinkedIn
• Webinars de tecnologia de defesa especializados
• Publicidade digital direcionada

Canal de marketing digital	Investimento anual	Métricas de engajamento
Marketing do LinkedIn	$45,000	128.000 impressões
Publicidade digital direcionada	$62,500	92.500 visualizações direcionadas

Espey Mfg. & Electronics Corp. (ESP) - Modelo de Negócios: Segmentos de Clientes

Departamento de Defesa dos EUA

A partir de 2023, Espey Mfg. & A Electronics Corp. gerou aproximadamente 65% de sua receita anual dos contratos do Departamento de Defesa dos EUA. O valor total do contrato em 2023 foi de US $ 18,3 milhões.

Tipo de contrato	Valor anual	Porcentagem de receita
Aquisição de equipamentos de defesa	US $ 12,1 milhões	42%
Sistemas eletrônicos militares	US $ 6,2 milhões	23%

Fabricantes de equipamentos militares

A Espey serve vários fabricantes de equipamentos militares com componentes e subsistemas eletrônicos especializados.

• Número de clientes ativos de fabricante de equipamentos militares: 7
• Vendas totais para este segmento em 2023: US $ 4,5 milhões
• Duração média do contrato: 18-24 meses

Empreiteiros aeroespaciais e de defesa

Em 2023, a Espey garantiu contratos com 5 principais contratados aeroespaciais e de defesa, gerando US $ 3,2 milhões em receita.

Contratante	Valor do contrato	Categoria de produto primário
Lockheed Martin	US $ 1,4 milhão	Sistemas de conversão de energia
Northrop Grumman	US $ 1,1 milhão	Subsistemas eletrônicos
Raytheon Technologies	US $ 0,7 milhão	Eletrônica de precisão

Instituições de Pesquisa Governamental

Espey colabora com instituições de pesquisa do governo, gerando US $ 2,1 milhões em 2023.

• Número de parcerias de instituição de pesquisa ativa: 4
• Áreas de pesquisa primárias: tecnologia de defesa, sistemas eletrônicos
• Valor médio do contrato por instituição: US $ 525.000

Provedores de equipamentos eletrônicos especializados

O segmento de equipamentos eletrônicos especializado contribuiu com US $ 2,9 milhões para a receita da Espey em 2023.

Tipo de equipamento	Vendas anuais	Quota de mercado
Sistemas de comunicação militar	US $ 1,6 milhão	12%
Componentes eletrônicos robustos	US $ 1,3 milhão	9%

Espey Mfg. & Electronics Corp. (ESP) - Modelo de negócios: estrutura de custos

Engenharia e despesas de P&D

Para o ano fiscal encerrado em 30 de junho de 2023, Espey Mfg. & Electronics Corp. relatou:

Categoria de despesa	Valor ($)
Despesas totais de P&D	1,215,000
Porcentagem de receita	6.8%

Custos de fabricação e produção

Repartição de custos para operações de fabricação:

Componente de custo	Despesa anual ($)
Custos de material direto	4,750,000
Custos diretos de mão -de -obra	3,250,000
Manufatura de sobrecarga	2,100,000

Controle de qualidade e processos de certificação

• Orçamento anual de garantia da qualidade: US $ 620.000
• Custos de manutenção de certificação: US $ 185.000
• Investimento de equipamentos de teste: US $ 275.000

Pessoal de mão -de -obra e técnica

Categoria de pessoal	Número de funcionários	Compensação anual total ($)
Equipe de engenharia	42	3,780,000
Pessoal técnico	35	2,625,000
Suporte administrativo	23	1,380,000

Cadeia de suprimentos e compras de componentes

Análise de custos de compras:

Categoria de compras	Gastos anuais ($)
Componentes eletrônicos	3,500,000
Matérias-primas	2,250,000
Logística e transporte	450,000

Estrutura de custo anual total: aproximadamente US $ 22.655.000

Espey Mfg. & Electronics Corp. (ESP) - Modelo de Negócios: Fluxos de Receita

Contratos de design eletrônico personalizado

Para o ano fiscal de 2023, Espey Mfg. & A Electronics Corp. relatou receitas de contrato de design eletrônico personalizado de US $ 8.435.000, representando 42% da receita total da empresa.

Tipo de contrato	Receita ($)	Porcentagem de total
Designs personalizados relacionados à defesa	6,320,000	75%
Designs personalizados comerciais	2,115,000	25%

Vendas de equipamentos militares e aeroespaciais

As vendas de equipamentos militares e aeroespaciais geraram US $ 6.750.000 em receita para o ano fiscal de 2023.

• Contratos do Departamento de Defesa dos EUA: US $ 5.200.000
• Vendas de equipamentos aeroespaciais: US $ 1.550.000

Taxas de serviço de engenharia

As taxas de serviço de engenharia totalizaram US $ 3.215.000 em 2023.

Categoria de serviço	Receita ($)
Consultoria técnica	1,450,000
Serviços de integração do sistema	1,765,000

Licenciamento de produtos e suporte técnico

O licenciamento de produtos e a receita de suporte técnico atingiram US $ 2.100.000 no ano fiscal de 2023.

• Licenciamento de propriedade intelectual: US $ 1.350.000
• Contratos de suporte técnico: US $ 750.000

Serviços de Desenvolvimento e Teste de Protótipo

Os serviços de desenvolvimento e teste de protótipo geraram US $ 1.800.000 em receita para 2023.

Tipo de serviço	Receita ($)	Número de projetos
Desenvolvimento de protótipo	1,200,000	18
Serviços de teste	600,000	25

Fluxos totais de receita para o ano fiscal de 2023: US $ 22.300.000

Espey Mfg. & Electronics Corp. (ESP) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Espey Mfg. & Electronics Corp. (ESP) over others, especially when failure isn't an option. The numbers from fiscal year 2025 definitely show these value propositions are resonating with the market.

High-reliability power solutions for harsh/severe environments

Espey Mfg. & Electronics Corp. focuses on power conversion and magnetic components that must perform flawlessly where others might fail. This isn't about mass-market electronics; it's about mission-critical reliability for defense and demanding industrial uses. The market validation for this focus is clear in the financials.

For the fiscal year ended June 30, 2025, Espey Mfg. & Electronics Corp. reported net sales of $43,950,872, a solid increase from the prior year's $38,736,319. Furthermore, the company's backlog hit a record $139.7 million as of June 30, 2025, showing customers are committing to long-term, high-reliability needs.

The company's commitment to this segment is physically backed by recent infrastructure investment. Full-scale production and testing are now underway at their new 24,000-square-foot Magnetics Center of Excellence, which finished construction in April 2025. This expansion, partially funded by a $7.4 million U.S. Navy grant from fiscal year 2023, directly supports scalable growth in these specialized magnetics.

Here's a snapshot of the financial strength underpinning this value proposition as of late 2025:

Metric (FY Ended June 30, 2025)	Amount	Comparison to FY 2024
Net Sales	$43,950,872	Increase from $38,736,319
Net Income	$8,142,954	Increase from $5,815,140
Diluted Earnings Per Share	$3.02	Increase from $2.29
Ending Backlog	$139.7 million	Increase from $97.2 million

Custom design and engineering for military and industrial specifications

Espey Mfg. & Electronics Corp. doesn't just sell off-the-shelf parts; they engineer bespoke solutions. This involves deep collaboration with clients, often starting from a request for quotation (RFQ) that includes stringent, application-specific requirements for size and weight. This capability is what secures major defense contracts.

A concrete example of this custom engineering success is the $19.8 million contract award announced on April 10, 2025, to provide electrical power transformers for the U.S. Navy's Virginia and Columbia class submarines. Espey Mfg. & Electronics Corp. was chosen to manufacture components they had previously designed and supplied, demonstrating trust in their custom engineering lifecycle.

The engineering focus is supported by the company's operational structure:

• All design, manufacturing, and testing performed in a 150,000+ square foot facility.
• Utilizes advanced design and manufacturing tools like Altium and Epicor.
• Maintains the agility of a small business governed by large business disciplines.

Long-term product support and post-delivery sustainment

For defense and critical industrial customers, the value extends far beyond the initial delivery. Espey Mfg. & Electronics Corp. offers dynamic lifecycle management services, which is key for systems that stay in service for decades. This commitment to sustainment builds the deep, lasting customer relationships the CEO mentioned.

The strength of this long-term view is reflected in the new business pipeline. New orders received in fiscal year 2025 totaled $86.4 million, a significant jump from approximately $52.4 million the prior year. This suggests customers are placing larger, long-horizon orders, which inherently require robust sustainment planning.

The company's service offering includes specialized capabilities:

• Dynamic lifecycle management services.
• Reverse engineering of existing or obsolete components.
• Focus on building long-term value with investors and customers.

Compliance with stringent Mil-SPEC and MIL-STD requirements

Compliance isn't a feature; it's the entry ticket for Espey Mfg. & Electronics Corp.'s primary markets. Their reputation rests on consistently meeting or exceeding these rigorous standards, which is why they are a trusted supplier to the Department of Defense. The new Magnetics Center of Excellence is specifically designed to enhance this capability.

The new facility increases the company's MIL-STD testing capacity and testing power, positioning Espey Mfg. & Electronics Corp. for scalable growth in magnetics that require this level of certification. This focus on quality assurance and rigorous testing protocols is a core differentiator against mass-market producers.

Key compliance and quality indicators include:

Certification/Standard Focus	Facility Enhancement	Associated Funding
Rigorous MIL-STD Testing	24,000-square-foot Magnetics Center of Excellence (Operational April 2025)	$7.4 million U.S. Navy Grant (FY2023)
Military/Defense Applications	Continued supply to U.S. Navy programs (e.g., Virginia/Columbia Class Submarines)	$19.8 million Contract Award (April 2025)
Quality Management System	ISO AS9100 Certified status	N/A (Operational Standard)

This dedication to high standards directly translates to customer confidence, evidenced by the $8.14 million net income reported for FY2025. That's a strong return on delivering exactly what the defense sector demands.

Espey Mfg. & Electronics Corp. (ESP) - Canvas Business Model: Customer Relationships

You're looking at a business model where the customer relationship isn't just about a transaction; it's about embedding Espey Mfg. & Electronics Corp. into critical, multi-year defense platforms. This is a relationship built on trust, which you can see reflected in the numbers.

Dedicated supplier model for long-term defense programs

The core of Espey Mfg. & Electronics Corp.'s customer relationship strategy is its role as a dedicated supplier for long-term defense programs. This isn't transactional selling; it's about securing your spot in the supply chain for systems that last decades. The proof is in the order book. As of June 30, 2025, the company's backlog hit a record level of $139.7 million, a substantial jump from $97.2 million the previous year. This backlog gives you excellent revenue visibility, which is the direct result of these sustained relationships.

The commitment is further evidenced by the new business won. For the fiscal year ended June 30, 2025, Espey Mfg. & Electronics Corp. secured new orders totaling $86.4 million, a significant increase from approximately $52.4 million the year before. This shows prime contractors are leaning on Espey Mfg. & Electronics Corp. for future work.

Here's a quick look at the financial impact of these long-term commitments:

Metric	FY 2025 Value	Comparison Point
Total Net Sales (FY 2025)	$43,950,872	Up 13.5% from FY 2024 sales of $38,736,319
Total Backlog (As of 6/30/2025)	$139.7 million	Up 43.7% from $97.2 million at 6/30/2024
New Orders (FY 2025)	$86.4 million	Up 64.9% from $52.4 million in FY 2024

Close collaboration with prime contractors and government on design

Espey Mfg. & Electronics Corp. doesn't just fulfill orders; they help design the components. They serve North American defense contractors, government agencies, and aerospace prime integrators. This deep involvement means they are often manufacturing components they previously designed or helped qualify. For instance, the company was chosen by General Dynamics Electric Boat and the U.S. Navy to manufacture components for the Columbia class submarine, a top priority for the Department of Defense.

This collaborative design work translates into specific, large-value awards:

• Secured a $29.5 million contract for electric power distribution panels for the Columbia class submarines, with deliveries expected through calendar year 2030.
• Awarded an additional $19.8 million contract for electrical power transformers for the U.S. Navy's Virginia and Columbia class submarines.
• The company provides custom engineering, qualification testing, and certification services alongside standard catalog items.

This level of integration is defintely hard to replicate. They are supporting programs that enable US military superiority, as stated by the CEO.

Relationship-driven, sustained by strong execution and quality

The longevity of these relationships is sustained by execution, not just relationship-building. The CEO noted that the strong results were fueled by strong execution and lasting customer relationships. For a defense supplier, quality is non-negotiable. Espey Mfg. & Electronics Corp. backs this up by maintaining ISO 9001 quality certification. Their manufacturing facilities are equipped for small-to-medium volume, high-reliability production, which is exactly what defense programs demand.

The relationship model success can be summarized by the growth in their ability to secure future work:

• New orders in FY 2025 grew by approximately 64.9% year-over-year.
• Net income grew by 40% in FY 2025 to $8,142,954.
• The company's strategy remains focused on supporting programs that continue to enable the US military.

Finance: draft 13-week cash view by Friday.

Espey Mfg. & Electronics Corp. (ESP) - Canvas Business Model: Channels

You're looking at how Espey Mfg. & Electronics Corp. gets its specialized power electronics and magnetics into the hands of defense and industrial customers. The channel strategy is heavily weighted toward direct engagement, which makes sense given the niche, high-reliability nature of their products.

Direct sales and contracting to US Department of Defense (DoD)

The US Department of Defense (DoD) remains a core channel, leveraging Espey Mfg. & Electronics Corp.'s status as a US small business certified company on the eligible list of contractors. This direct access supports long-cycle platforms. For instance, a significant contract award on April 10, 2025, valued at $19.8 million, was secured to provide electrical power transformers for the U.S. Navy's Virginia and Columbia class submarines. This direct contracting capability is key to their revenue visibility.

The scale of their defense engagement is reflected in the overall backlog, which hit a record $139.7 million as of June 30, 2025, up from $97.2 million the prior year. New orders for fiscal year 2025 totaled $86.4 million, a substantial increase from the $52.4 million booked in fiscal year 2024.

Direct sales to major defense prime contractors

Beyond direct government contracting, Espey Mfg. & Electronics Corp. sells through its direct sales organization to major defense companies, often as a sub-tier supplier. They were chosen by General Dynamics Electric Boat to manufacture components for the submarine programs mentioned previously, showing the direct link to prime contractors. The company serves defense companies, the government of the United States, and foreign governments.

Here's a look at the financial scale that flows through these defense-related channels:

Metric	Fiscal Year 2025 (Ended 6/30/2025)	Fiscal Year 2024 (Ended 6/30/2024)
Net Sales	$43,950,872	$38,736,319
New Orders Booked	$86.4 million	$52.4 million
Backlog Value (Year End)	$139.7 million	$97.2 million

Direct manufacturing and delivery from Saratoga Springs, NY facility

All value chain activities-design, manufacturing, and testing-are centralized, which is a key aspect of their channel control and quality assurance. This vertical integration allows for build-to-print services and dynamic lifecycle management services.

The physical channel infrastructure is concentrated in one location:

• Facility Size: Over 150,000+ square feet.
• Location: 233 Ballston Ave, Saratoga Springs, New York.
• Certification: ISO AS9100 certified.
• Vertical Capabilities: Component production (including inductors), PCB population, metal fabrication, painting, wiring, qualification, and full in-house testing.

The company couples its vertical manufacturing capabilities with the agility of a small business, governed by large business disciplines, which supports reliable delivery schedules extending beyond a year on some contracts.

Espey Mfg. & Electronics Corp. (ESP) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Espey Mfg. & Electronics Corp. (ESP) as of late 2025. The business model is heavily anchored in specialized, high-reliability power electronics for defense and demanding industrial uses. Honestly, the numbers show a clear concentration in government-backed programs.

US Military/Department of Defense (DoD)

This segment represents the foundational customer base, given Espey Mfg. & Electronics Corp.'s core competency in specialized military power supplies and transformers. The company's strategy remains focused on supporting programs that enable US military superiority. You can see this focus reflected in the order intake; for the fiscal year ending June 30, 2025, new orders surged to $86.4 million, up from approximately $52.4 million in the prior year.

The overall financial health tied to this segment is strong, evidenced by the backlog growth:

• Backlog at September 30, 2025: approximately $141.1 million.
• Total outstanding opportunities as of November 10, 2025: approximately $161.5 million.
• FY2025 Net Sales: $43.95 million.

US Navy Submarine Programs (Virginia and Columbia Class)

This is where the most concrete, large-dollar contract wins are announced, signaling deep integration into critical defense platforms. The Columbia class submarine program, designed to replace the Ohio class fleet, is a top priority for the Department of Defense. Espey Mfg. & Electronics Corp. supplies components directly to prime contractors like General Dynamics Electric Boat and the U.S. Navy.

Here are the specific, recent contract values tied to these platforms:

Program/Component	Contract Value	Award Date/Status	Product Type
Virginia and Columbia Class Transformers	$19.8 million	Announced April 10, 2025	Electrical Power Transformers
Columbia Class Distribution Panels	$29.5 million	Announced December 23, 2024	Electric Power Distribution Panels

The $29.5 million Columbia class award covers deliveries through calendar year 2030 for 4 of the 12 planned submarines, which gives you excellent long-term revenue visibility. To be fair, these specific defense contracts are the engine driving the overall backlog increase to $139.7 million as of June 30, 2025.

Aerospace and Ground Vehicle Power Platforms

While specific revenue splits aren't broken out publicly for this segment, Espey Mfg. & Electronics Corp.'s capabilities clearly target this area. The company is an AS9100:2016 certified manufacturer, which is the quality standard for the aerospace industry. Their product applications explicitly include airborne power and ground mobile power systems.

The types of products they supply here include:

• Power supplies and power converters.
• Power transformers and magnetic components.
• Power distribution equipment.

Rugged Industrial Power Systems Market

This segment overlaps with defense but also includes commercial heavy-duty applications. Espey Mfg. & Electronics Corp. is an ISO 9001:2015 certified manufacturer serving the rugged industrial marketplace. The applications listed for their specialized power supplies and transformers confirm this focus.

Concrete examples of industrial end-uses include:

• AC and DC locomotives.
• Shipboard power (non-military specific).
• Ground-based radar support systems.

The backlog at March 31, 2025, was $138 million, showing that both military and industrial segments are contributing to the robust order book.

Espey Mfg. & Electronics Corp. (ESP) - Canvas Business Model: Cost Structure

You're looking at the core expenses Espey Mfg. & Electronics Corp. faced to deliver its specialized power conversion and magnetics products for the fiscal year ended June 30, 2025. Honestly, for a vertically integrated manufacturer like Espey Mfg. & Electronics Corp., the cost of making the product is always the biggest line item.

Cost Structure is dominated by direct production costs, followed by the necessary investment in its skilled workforce and future technology. Here's the quick math on the major buckets based on the fiscal year 2025 results.

The primary cost driver is the Cost of Goods Sold (COGS), which reflects the procurement of specialized components and the direct labor to assemble and test those high-reliability units for defense and industrial clients. This cost is derived from the reported Net Sales of $43,950,872 and the reported Gross Profit of $13.10 million for the year ended June 30, 2025.

Personnel Costs are substantial, supporting the company's in-house manufacturing and engineering capabilities. You noted the target of approximately 152 employees, which aligns with the reported headcount as of June 30, 2025. These are skilled roles, from magnetics experts to assembly technicians, all critical to maintaining ISO AS9100 certification.

Regarding Research and Development (R&D), while a specific total R&D figure for fiscal year 2025 isn't explicitly broken out from Selling, General, and Administrative (SG&A) expenses, we see evidence of ongoing investment. The company anticipated spending the remaining $2.3 million allowable under a specific funding award during fiscal year 2025, which relates to development activities. Furthermore, Selling, General, and Administrative expenses totaled $4,557,945 for the year.

Capital Expenditures (CapEx) represent the investment in the physical plant, including facilities like the Magnetics Center of Excellence. For the last 12 months reported, capital expenditures were $4.99 million. To be fair, this figure is offset slightly by a one-time Capital Investment Grant of $300,000 received in fiscal year 2025 related to new building completion.

Here is a breakdown of the key cost-related financial figures for Espey Mfg. & Electronics Corp. for the fiscal year ended June 30, 2025:

Cost Component	Financial Amount (USD)	Source/Context
Cost of Goods Sold (COGS)	$30,850,872	Calculated: Net Sales ($43,950,872) - Gross Profit ($13,100,000)
Selling, General, and Administrative (SG&A) Expenses	$4,557,945	Reported for fiscal year ended June 30, 2025
Personnel Count	152 employees	As of June 30, 2025
Capital Expenditures (Investment)	$4,990,000	Reported for the last 12 months
Grant Related to New Building	$300,000	One-time receipt in fiscal year 2025
Anticipated Funding Award Spending (Development/Research)	$2,300,000	Expected spending from a funding award during fiscal 2025

You should also note the other significant operating costs that fall outside the direct COGS calculation:

• Taxes paid in the past 12 months were $1.57 million.
• Net Sales (Revenue) for the year were $43,950,872.
• Net Income for the year was $8,142,954.

The vertical integration means Espey Mfg. & Electronics Corp. internalizes costs for component production, PCB population, metalwork, painting, wiring, and testing, which directly inflates COGS but potentially lowers external subcontracting costs.

Finance: draft 13-week cash view by Friday.

Espey Mfg. & Electronics Corp. (ESP) - Canvas Business Model: Revenue Streams

You're looking at the top line for Espey Mfg. & Electronics Corp. (ESP), and frankly, the numbers from fiscal year 2025 show a company successfully converting a massive order book into recognized revenue. The revenue streams are heavily anchored in specialized, high-reliability manufacturing.

Net Sales from specialized product manufacturing for fiscal year 2025 hit $43.95 million. That's a solid increase from the prior year's $38,736,319, showing real traction in their core business. This revenue comes from their primary business: the development, design, and production of specialized military and industrial power supplies/transformers.

A key indicator of future revenue visibility is the flow of new business. Revenue from long-term defense contracts and new orders is best tracked by looking at new orders booked, which were substantial in FY2025. New orders for the fiscal year ended June 30, 2025, totaled $86.4 million, a significant jump from approximately $52.4 million in the corresponding period last year.

This influx of new business directly feeds the backlog, which is a crucial component of their revenue pipeline. The backlog at June 30, 2025, reached a record $139.7 million, up from $97.2 million at June 30, 2024. This backlog represents future revenue that Espey Mfg. & Electronics Corp. expects to recognize over time.

The revenue generation is supported by two main activities:

• Sales of specialized military and industrial power supplies/transformers.
• Revenue from Build-to-Print and Manufacturing Services.

To give you a clearer picture of the FY2025 performance versus the pipeline indicators, here's a quick look at the key financial metrics for the year ended June 30, 2025:

Metric	FY 2025 Amount	FY 2024 Amount
Net Sales	$43,950,872	$38,736,319
New Orders Booked	$86,400,000	~$52,400,000
Backlog (as of June 30)	$139,700,000	$97,200,000

Still, you have to watch the quarterly cadence. For instance, the fourth quarter of fiscal year 2025 saw net sales of $9,596,194, which was down from $11,610,911 in the fourth quarter of 2024. What this estimate hides is that while quarterly sales dipped, Q4 net income actually improved to $2,931,651, suggesting better margin execution on the products shipped that quarter.

The nature of their work, supporting critical platforms like the U.S. Navy's Virginia and Columbia class submarines, means revenue is often secured through long-cycle contracts. For example, an additional contract valued at $19.8 million was awarded in April 2025 to provide electrical power transformers for those submarine programs. This type of contract directly contributes to the robust backlog figure, securing future revenue streams.