Fri, Sep 27, 8:03 PM (84 days ago)
Espey Mfg. & Electronics Corp. reported a revenue increase to $38,736 in FY 2024, up 8.8% from $35,592 in FY 2023. Net income rose to $5,815, with earnings per share (EPS) of $2.34, compared to $3,677 and $1.50 per share in the previous year. Gross profit improved to $10,653, representing 27.5% of sales, driven by higher margins on multi-year contracts, despite increased overhead costs related to a pension withdrawal obligation. Operating expenses rose to $4,114, reflecting higher employee compensation. The company’s backlog decreased to $97.2 million from $83.6 million, with significant customer concentration risks persisting as five customers accounted for 81% of sales. Future revenue is expected to be higher in FY 2025, although net income is anticipated to decline due to increased costs. Cash flow from operations improved significantly to $10,595 from $3,899, with working capital at $38 million. Risks include dependence on government contracts, supply chain challenges, and inflationary pressures. The company maintains a $3 million line of credit and has resumed dividend payments, reflecting a stable financial condition.