• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    ESCO Technologies (ESE) Is Up 10.9% After Raising 2026 Guidance On Record Backlog And Orders - What's Changed

    Simply Wall St·02/09/2026 00:21:49
    Listen to the news
    • In early February 2026, ESCO Technologies Inc. reported strong first-quarter 2026 results, with higher sales, earnings and orders, raised its full-year 2026 revenue and earnings guidance, and declared a US$0.08 per-share quarterly dividend payable on April 17, 2026 to shareholders of record on April 2, 2026.
    • The company highlighted very large year-over-year order growth and a record US$1.40 billion backlog, underpinned by robust aerospace, defense and utility demand and an active acquisition pipeline.
    • Against this backdrop, we’ll examine how ESCO’s raised full-year guidance reshapes its investment narrative for investors assessing the business.

    Uncover the next big thing with 24 elite penny stocks that balance risk and reward.

    What Is ESCO Technologies' Investment Narrative?

    To own ESCO Technologies today, you need to believe in a fairly specialized industrial story: a company leveraged to aerospace, defense and utility spending, using a record US$1.40 billion backlog and steady acquisitions to compound earnings over time. The latest quarter, with very large order growth and raised 2026 guidance, reinforces that demand backdrop rather than changing it, but it does sharpen the near term catalysts. Execution on that swollen backlog, integration of any new deals and maintaining margins now sit front and center. At the same time, the share price has already moved up strongly, the valuation screens as expensive and there has been significant recent insider selling, which keeps downside risk on the table if orders or earnings wobble. The reiterated US$0.08 dividend mainly signals continuity, not a new driver.

    However, recent insider selling at elevated valuation levels is something investors should not ignore. ESCO Technologies' shares are on the way up, but they could be overextended by 40%. Uncover the fair value now.

    Exploring Other Perspectives

    ESE 1-Year Stock Price Chart
    ESE 1-Year Stock Price Chart

    Three fair value estimates from the Simply Wall St Community span roughly US$181 million to US$255 million, underlining how far apart individual views can be. Set against ESCO’s rich earnings multiple and heavy reliance on sustained aerospace and defense demand, that spread of opinions invites you to weigh both the upside from the record backlog and the risk of any slowdown more carefully.

    Explore 3 other fair value estimates on ESCO Technologies - why the stock might be worth 28% less than the current price!

    Build Your Own ESCO Technologies Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    Want Some Alternatives?

    These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.