Financial Analysis

2. Acquisitions 2025 On April 25, 2025, the Company completed the acquisition of the Signature Management & Power (SM&P) business of Ultra Maritime, since renamed as ESCO Maritime Solutions (Maritime), for a cash purchase price of approximately $472 million, net of cash acquired. Maritime is part of ESCOs Aerospace & Defense (A&D) segment, and its Signature Management and Power Management product lines are highly complementary to ESCOs current naval programs: Signature Management offers solutions for surface ships and submarines that provide magnetic and electric field countermeasures to prevent underwater mine and sensor detection, and Power Management provides innovative and highly-engineered motors that drive critical ship propulsion systems with an ultra-quiet design ensuring low vibration levels to increase stealth capabilities. Maritime contributed $95.2 million in revenue in 2025 since the date of acquisition. Since the date of acquisition, the operating results for the Maritime business have been included as part of the A&D segment. The acquisition date fair values of the assets acquired and liabilities assumed were primarily as follows: $72.2 million of cash, $22.9 million of accounts receivable, $16.2 million of inventory, $15.1 million of contract assets, $1.6 million of prepaid assets, $12.2 million of property, plant and equipment, $5.0 million of other assets, $9.7 million of accounts payable, $18.2 million of accrued expenses and other curre …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

11. Commitments and Contingencies At September 30, 2025, we had $10.1 million in letters of credit outstanding as guarantees of contract performance and cash amounts that exceeded federally insured amounts. As a normal incident of the businesses in which we are engaged, various claims, charges and litigation are asserted or commenced from time to time against us. Additionally, we are currently involved in various stages of investigation and remediation relating to environmental matters. It is the opinion of Management that the aggregate costs involved in the resolution of these matters, and final judgments, if any, which might be rendered against us are adequately accrued, are covered by insurance or are not likely to have a material adverse effect on our financial results as the estimated exposure to loss is not material.

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7. Debt Debt consists of the following at September 30, 2025 and 2024: (Dollars in thousands) 2025 2024 Revolving credit facility $ 25,000 122,000 Incremental facility (Term loan A) 161,000 Total borrowings 186,000 122,000 Current portion of long-term debt and short-term borrowings (20,000) (20,000) Total long-term debt, less current portion $ 166,000 102,000 The Credit Facility includes a $500 million revolving line of credit as well as provisions allowing for the increase of the credit facility commitment amount by an additional $250 million, if necessary, with the consent of the lenders. The bank syndication supporting the facility is comprised of a diverse group of seven banks led by JP Morgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and Commerce Bank and TD Bank, N.A. as co-documentation agents. The Credit Facility matures August 30, 2028, with balance due by this date. The Credit Facility is secured by the unlimited guaranty of our direct and indirect material U.S. subsidiaries and the pledge of 100% of the equity interests of our direct and indirect material foreign subsidiaries. The financial covenants of the Credit Facility include a leverage ratio and an interest coverage ratio. As of September 30, 2025, we were in compliance with all covenants. On August 5, 2024, the Company and certain of its subsidiaries entered into Amendment No. 1 (the Amendment) to the Credit Facility which, among other things, (i) implements a se …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended September 30, 2025 (In thousands) A&D USG Test Total Customer type: Commercial $ 201,664 369,291 177,952 748,907 Government 276,528 10,704 59,249 346,481 Total revenues $ 478,192 379,995 237,201 1,095,388 Geographic location: United States $ 345,308 241,233 140,726 727,267 International 132,884 138,762 96,475 368,121 Total revenues $ 478,192 379,995 237,201 1,095,388 Revenue recognition method: Point in time $ 246,923 308,754 44,784 600,461 Over time 231,269 71,241 192,417 494,927 Total revenues $ 478,192 379,995 237,201 1,095,388 Year Ended September 30, 2024 (In thousands) A&D USG Test Total Customer type: Commercial $ 178,954 361,478 164,321 704,753 Government 161,589 7,583 45,202 214,374 Total revenues $ 340,543 369,061 209,523 919,127 Geographic location: United States $ 272,183 240,153 120,500 632,836 International 68,360 128,908 89,023 286,291 Total revenues $ 340,543 369,061 209,523 919,127 Revenue recognition method: Point in time $ 200,693 301,200 43,150 545,043 Over time 139,850 67,861 166,373 374,084 Total revenues $ 340,543 369,061 209,523 919,127 …

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9. Share-Based Compensation We provide compensation benefits to certain key employees under several share-based plans providing for a combination of performance-based share unit (PSU) awards and time-vested restricted share unit (RSU) awards and to non-employee directors under a separate compensation plan. As of September 30, 2025, our equity compensation plans had a total of 808,103 shares authorized and available for future issuance. Performance Share Unit (PSU) Awards and Time-Vested Restricted Stock Unit (RSU) Awards The Company grants PSU awards with a three-year vesting period, with each PSU representing the right to receive one share of Company common stock if certain performance targets are achieved over a corresponding three-year performance period. Beginning in fiscal 2023, the targets were based on achieving certain EBITDA and Return on Invested Capital (ROIC) metrics and utilizing an rTSR modifier. RSU awards represent the right to receive a specified number of shares of Company common stock if and when the award vests. Each RSU represents the right to receive one share of Company common stock if the recipient remains continuously employed by the Company until the award vests. RSU awards granted prior to fiscal 2023 were normally granted in the spring with full vesting approximately 3 years after the effective award date, while RSU awards granted in fiscal 2023 were normally granted in the spring with vesting one-third at the end of each November beginning approxi …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

4. Goodwill and Other Intangible Assets Included on the Consolidated Balance Sheets at September 30, 2025 and 2024 are the following intangible assets gross carrying amounts and accumulated amortization from continuing operations: (Dollars in thousands) 2025 2024 Goodwill $ 761,931 529,935 Intangible assets with determinable lives: Patents Gross carrying amount $ 7,607 2,638 Less: accumulated amortization 1,775 1,415 Net $ 5,832 1,223 Capitalized software Gross carrying amount $ 138,144 126,721 Less: accumulated amortization 100,818 89,558 Net $ 37,326 37,163 Customer Relationships Gross carrying amount $ 625,535 330,328 Less: accumulated amortization 159,543 132,135 Net $ 465,992 198,193 Other Gross carrying amount $ 76,991 15,182 Less: accumulated amortization 24,829 11,173 Net $ 52,162 4,009 Intangible assets with indefinite lives: Trade names $ 162,661 162,936 We performed our annual evaluation of goodwill and intangible assets for impairment during the fourth quarter of 2025 and concluded that no impairment existed at September 30, 2025. There were no accumulated impairment losses as of September 30, 2025. The changes in the carrying amount of goodwill attributable to each business segment from continuing operations for 2025 and 2024 are as follows: (Dollars in millions) A&D Test USG Total Balance as of September 30, 2023 $ 105.6 34.0 353.6 493.2 Acquisition activity 30.9 30.9 Foreign currency translation and other 2.5 3.3 5.8 Balance as of September 30, 2024 $ 105.6 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

6. Income Tax Expense Total income tax expense (benefit) for the years ended September 30, 2025, 2024, and 2023 was allocated to income tax expense as follows: (Dollars in thousands) 2025 2024 2023 Income tax expense from continuing operations $ 36,554 28,325 24,684 Income tax expense (benefit) from discontinued operations 57,464 (317) 1,718 Total income expense $ 94,018 28,008 26,402 The components of income from continuing operations before income taxes for 2025, 2024 and 2023 consisted of the following: (Dollars in thousands) 2025 2024 2023 United States $ 121,169 101,123 90,404 Foreign 31,684 29,830 19,964 Total income before income taxes $ 152,853 130,953 110,368 The principal components of income tax expense (benefit) from continuing operations for 2025, 2024 and 2023 consist of: (Dollars in thousands) 2025 2024 2023 Federal: Current $ 25,007 25,584 21,923 Deferred (1,185) (7,295) (5,095) State and local: Current 3,935 3,212 3,304 Deferred (228) 17 (950) Foreign: Current 13,109 8,602 5,694 Deferred (4,084) (1,795) (192) Total $ 36,554 28,325 24,684 The actual income tax expense from continuing operations for 2025, 2024 and 2023 differs from the expected tax expense for those years (computed by applying the U.S. Federal corporate statutory rate) as follows: 2025 2024 2023 Federal corporate statutory rate 21.0 % 21.0 % 21.0 % State and local, net of Federal benefits 2.3 2.5 2.1 Impact of foreign operations 1.1 0.4 0.3 Federal research credit (1.1) (0.8) (0.9) Executive co …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

T. New Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures. This ASU will be effective for fiscal years beginning after December 15, 2024. Other than additional disclosure, we do not expect a change to our consolidated statements of operations, financial position, or cash flows. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This ASU will be effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Other than additional disclosure, we do not expect a change to our consolidated statements of operations, financial position, or cash flows. …

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14. Related Parties Two of the Companys directors are officers at two customers of the Companys Doble subsidiary. Doble sells products, leases equipment and provides testing services in the ordinary course of Dobles business. The total amount of these sales was approximately $4.7 million during fiscal 2025. All transactions between Doble and the two customers are intended to be and have been consistent with Dobles normal commercial terms offered to its customers, and the Companys Board of Directors has determined that the relationships between the Company and the customers are not material and did not impair either the Companys or the directors independence. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

13. Revenues (a) Disaggregation of Revenues The tables below present our revenues from continuing operations by customer type, geographic location, and revenue recognition method for the years ended September 30, 2025 and 2024, as we believe this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The tables also include a reconciliation of the disaggregated revenue within our reportable segments. Year Ended September 30, 2025 (In thousands) A&D USG Test Total Customer type: Commercial $ 201,664 369,291 177,952 748,907 Government 276,528 10,704 59,249 346,481 Total revenues $ 478,192 379,995 237,201 1,095,388 Geographic location: United States $ 345,308 241,233 140,726 727,267 International 132,884 138,762 96,475 368,121 Total revenues $ 478,192 379,995 237,201 1,095,388 Revenue recognition method: Point in time $ 246,923 308,754 44,784 600,461 Over time 231,269 71,241 192,417 494,927 Total revenues $ 478,192 379,995 237,201 1,095,388 Year Ended September 30, 2024 (In thousands) A&D USG Test Total Customer type: Commercial $ 178,954 361,478 164,321 704,753 Government 161,589 7,583 45,202 214,374 Total revenues $ 340,543 369,061 209,523 919,127 Geographic location: United States $ 272,183 240,153 120,500 632,836 International 68,360 128,908 89,023 286,291 Total revenues $ 340,543 369,061 209,523 919,127 Revenue recognition method: Point in time $ 200,693 301,200 43,150 545,043 Over time …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

10. Business Segment Information The below disclosure reflects our adoption of ASU 2023-07 Segment Reporting. We are organized based on the products and services we offer, and we classify our business operations in three reportable segments for financial reporting purposes: Aerospace & Defense (A&D), Utility Solutions Group (USG) and RF Test & Measurement (Test). Corporate is not a reportable segment, but it is included for reconciliation purposes. The A&D segments operations consist of PTI, Crissair, Globe, Mayday, and Maritime. Previously, A&D also included VACCO Industries which is now being reported in discontinued operations. The companies within this segment primarily design and manufacture specialty filtration, fluid control and naval products, including hydraulic filter elements and fluid control devices used in aerospace and defense applications; custom designed filters for manned aircraft and submarines; products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessels signature, power management and control equipment; sealing, surface control and hydrodynamic related applications to enhance U.S. and UK Navy maritime survivability; precision-tolerance machined components for the aerospace and defense industry; metal processing services; and miniature electro-explosive devices utilized in mission-critical defense and aerospace applications. The USG segments operations consist of Doble Engineering Company …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

1. Summary of Significant Accounting Policies A. Principles of Consolidation The Consolidated Financial Statements include the accounts of ESCO Technologies Inc. (ESCO) and its wholly owned subsidiaries. Except where the context indicates otherwise, the terms Company, we, our and us are used in this report to refer to ESCO together with its subsidiaries through which its businesses are conducted. All significant intercompany transactions and accounts have been eliminated in consolidation. B. Basis of Presentation Our fiscal year ends on September 30. Throughout the Consolidated Financial Statements, unless the context indicates otherwise, references to a year (for example 2025) refer to fiscal year ending on September 30 of that year. The VACCO business is reflected as discontinued operations in the Consolidated Financial Statements and related notes for all periods presented, in accordance with GAAP. Prior period amounts have been reclassified to conform to the current period presentation. See Note 3 for further discussion. C. Nature of Operations We are organized based on the products and services we offer and we currently classify our business operations in three segments for financial reporting purposes: Aerospace & Defense (A&D), Utility Solutions Group (USG), and RF Test & Measurement (Test). A&D: The companies within this segment primarily design and manufacture specialty filtration products, including hydraulic filter elements and fluid control devices …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

8. Capital Stock The 30,886,024 and 30,809,483 common shares as presented in the accompanying Consolidated Balance Sheets at September 30, 2025 and 2024 represent the actual number of shares issued at the respective dates. We held 5,056,771 common shares in treasury at both September 30, 2025 and 2024. In August 2024, our Board of Directors approved a common stock repurchase program authorizing us to repurchase shares of our stock from time to time in Managements discretion, in the open market or otherwise, up to a maximum total repurchase amount of $200 million or the maximum amount permitted under our bank credit agreements, if less, over a three-year period expiring September 30, 2027. We did not repurchase any shares in 2025 and we repurchased approximately 80,500 shares in 2024. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

7. DEBT The Companys debt is summarized as follows: December 31, September 30, (In thousands) 2025 2025 Revolving credit facility and short-term borrowings 20,511 25,000 Incremental facility (Term loan A) 125,000 161,000 Total borrowings $ 145,511 186,000 Current portion of long-term debt and short-term borrowings (20,511) (20,000) Total long-term debt, less current portion $ 125,000 166,000 The Credit Facility includes a $500 million revolving line of credit as well as provisions allowing for the increase of the credit facility commitment amount by an additional $250 million, if necessary, with the consent of the lenders. The bank syndication supporting the facility is comprised of a diverse group of seven banks led by JP Morgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and Commerce Bank and TD Bank, N.A. as co-documentation agents. The Credit Facility matures August 30, 2028, with balance due by this date. On August 5, 2024, the Company and certain of its subsidiaries entered into Amendment No. 1 (the Amendment) to the Credit Facility which, among other things, (i) implements a senior incremental delayed draw term loan credit facility in an aggregate principal amount of up to $375 million (the Incremental Facility), and (ii) permits the direct or indirect acquisition by the Registrant or certain of its subsidiaries of all the issued and outstanding shares of PMES I Limited, Measurement Systems, Inc., EMS Development Corporation, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2025 are presented in the table below as the Company deems it best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The table below also includes a reconciliation of the disaggregated revenue within each reportable segment. (In thousands) A&D USG Test Total Customer type: Commercial $ 45,796 $ 85,739 $ 46,317 $ 177,852 Government 98,033 1,745 12,029 111,807 Total revenues $ 143,829 $ 87,484 $ 58,346 $ 289,659 Geographic location: United States $ 92,786 $ 60,724 $ 36,482 $ 189,992 International 51,043 26,760 21,864 99,667 Total revenues $ 143,829 $ 87,484 $ 58,346 $ 289,659 Revenue recognition method: Point in time $ 66,534 $ 68,289 $ 9,217 $ 144,040 Over time 77,295 19,195 49,129 145,619 Total revenues $ 143,829 $ 87,484 $ 58,346 $ 289,659 Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2024 are presented in the table below: (In thousands) A&D USG Test Total Customer type: Commercial $ 45,755 $ 84,279 $ 36,349 $ 166,383 Government 36,113 2,381 9,716 48,210 Total revenues $ 81,868 $ 86,660 $ 46,065 $ 214,593 Geographic location: United States $ 65,314 $ 59,917 $ 28,630 $ 153,861 International 16,554 26,743 17,435 60,732 Total revenues $ 81,868 $ 86,660 $ 46,065 $ 214,593 Revenue recognition method: Point …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

3. SHARE-BASED COMPENSATION The Company provides compensation benefits to certain key employees under several share-based plans providing for a combination of performance-based share unit (PSU) awards and time-vested restricted share unit (RSU) awards, and to non-employee directors under a separate compensation plan. PSU and RSU Awards Compensation expense related to these awards was $2.9 million and $2.2 million for the three-month periods ended December 31, 2025 and 2024, respectively. There were 173,478 non-vested shares outstanding as of December 31, 2025. Non-Employee Directors Plan Compensation expense related to the non-employee director grants was $0.3 million and $0.3 million for the three-month periods ended December 31, 2025 and 2024, respectively. The total share-based compensation cost that has been recognized in the results of operations and included within selling, general and administrative expenses (SG&A) was $3.2 million and $2.5 million for the three-month periods ended December 31, 2025 and 2024, respectively. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.7 million and $0.8 million for the three-month periods ended December 31, 2025 and 2024, respectively. As of December 31, 2025 there was approximately $22 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted-average period of …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

10. FAIR VALUE MEASUREMENTS The accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of December 31, 2025 and September 30, 2025 using available market information or other appropriate valuation methodologies. The carrying amounts of cash and cash equivalents, receivables, inventories, payables, and other current assets and liabilities approximate fair value because of the short maturity of those instruments. Fair Value of Financial Instruments The Companys forward contracts and interest rate swaps are classified within Level 2 of the valuation hierarchy in accordance with FASB Accounting Standards Codification (ASC) 825 and are immaterial. Nonfinancial Assets and Liabilities The Companys nonfinancial assets s …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5. GOODWILL AND OTHER INTANGIBLE ASSETS Included on the Companys Consolidated Balance Sheets at December 31, 2025 and September 30, 2025 are the following intangible assets gross carrying amounts and accumulated amortization from continuing operations: December 31, September 30, (Dollars in thousands) 2025 2025 Goodwill $ 767,375 761,931 Intangible assets with determinable lives: Patents Gross carrying amount $ 7,611 7,607 Less: accumulated amortization 1,902 1,775 Net $ 5,709 5,832 Capitalized software Gross carrying amount $ 140,746 138,144 Less: accumulated amortization 103,462 100,818 Net $ 37,284 37,326 Customer relationships Gross carrying amount $ 625,477 625,535 Less: accumulated amortization 169,244 159,543 Net $ 456,233 465,992 Other Gross carrying amount $ 76,914 76,991 Less: accumulated amortization 32,681 24,829 Net $ 44,233 52,162 Intangible assets with indefinite lives: Trade names $ 162,924 162,661 The changes in the carrying amount of goodwill attributable to each business segment for the three months ended December 31, 2025 are as follows: (Dollars in millions) A&D Test USG Total Balance as of September 30, 2025 $ 334.0 67.8 360.1 761.9 Acquisition activity and other 5.1 5.1 Foreign currency translation 0.4 0.4 Balance as of December 31, 2025 $ 339.1 67.8 360.5 767.4 During the first quarter of fiscal 2026, the Company paid approximately $5 million for the final working capital settlement in connection with the Maritime acquisition. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

8. INCOME TAX EXPENSE The first quarter 2026 effective income tax rate from continuing operations was 19.1% compared to 21.3% in the first quarter of 2025. Income tax expense in the first quarter of 2026 was favorably impacted by additional tax benefits related to the vesting of share-based compensation awards.

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14. RELATED PARTIES Two of the Companys directors are officers at two customers of the Companys Doble subsidiary. Doble sells products, leases equipment and provides testing services in the ordinary course of Dobles business. The total amount of these sales was approximately $1.3 million during the first quarter of fiscal 2026. All transactions between Doble and the two customers are intended to be and have been consistent with Dobles normal commercial terms offered to its customers, and the Companys Board of Directors has determined that the relationships between the Company and the customers are not material and did not impair the Companys or the directors independence. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

11. REVENUES Disaggregation of Revenues Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2025 are presented in the table below as the Company deems it best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The table below also includes a reconciliation of the disaggregated revenue within each reportable segment. (In thousands) A&D USG Test Total Customer type: Commercial $ 45,796 $ 85,739 $ 46,317 $ 177,852 Government 98,033 1,745 12,029 111,807 Total revenues $ 143,829 $ 87,484 $ 58,346 $ 289,659 Geographic location: United States $ 92,786 $ 60,724 $ 36,482 $ 189,992 International 51,043 26,760 21,864 99,667 Total revenues $ 143,829 $ 87,484 $ 58,346 $ 289,659 Revenue recognition method: Point in time $ 66,534 $ 68,289 $ 9,217 $ 144,040 Over time 77,295 19,195 49,129 145,619 Total revenues $ 143,829 $ 87,484 $ 58,346 $ 289,659 Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2024 are presented in the table below: (In thousands) A&D USG Test Total Customer type: Commercial $ 45,755 $ 84,279 $ 36,349 $ 166,383 Government 36,113 2,381 9,716 48,210 Total revenues $ 81,868 $ 86,660 $ 46,065 $ 214,593 Geographic location: United States $ 65,314 $ 59,917 $ 28,630 $ 153,861 International 16,554 26,743 17,435 60,732 Total revenues $ 81,868 $ 86,660 $ 46,065 $ 2 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

6. BUSINESS SEGMENT INFORMATION We adopted the provisions of ASU 2023-07 Segment Reporting for the year ended September 30, 2025. We are organized based on the products and services we offer, and we classify our business operations in three reportable segments for financial reporting purposes: Aerospace & Defense (A&D), Utility Solutions Group (USG) and RF Test & Measurement (Test). Corporate is not a reportable segment, but it is included for reconciliation purposes. The A&D segments operations consist of PTI, Crissair, Globe, Mayday, and Maritime. Previously, A&D also included VACCO Industries which is now being reported in discontinued operations. The companies within this segment primarily design and manufacture specialty filtration, fluid control and naval products, including hydraulic filter elements and fluid control devices used in aerospace and defense applications; custom designed filters for manned aircraft and submarines; products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessels signature, power management and control equipment; sealing, surface control and hydrodynamic related applications to enhance U.S. and UK Navy maritime survivability; precision-tolerance machined components for the aerospace and defense industry; metal processing services; and miniature electro-explosive devices utilized in mission-critical defense and aerospace applications. The USG segments operations consist of Doble …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

9. SHAREHOLDERS EQUITY The change in shareholders equity for the first three months ended December 31, 2025 and 2024 is shown below (in thousands): Three Months Ended December 31, 2025 2024 Common stock Beginning balance $ 309 308 Stock plans 1 Ending balance 309 309 Additional paid-in-capital Beginning balance 316,194 311,942 Stock plans (7,265) (3,799) Ending balance 308,929 308,143 Retained earnings Beginning balance 1,373,911 1,082,950 Net earnings common stockholders 28,691 23,473 Dividends paid (2,072) (2,064) Ending balance 1,400,530 1,104,359 Accumulated other comprehensive income (loss) Beginning balance (2,468) (10,775) Foreign currency translation 639 (18,028) Ending balance (1,829) (28,803) Treasury stock Beginning balance (147,075) (147,075) Share repurchases Ending balance (147,075) (147,075) Total equity $ 1,560,864 1,236,933 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing