Espey Mfg. & Electronics: Stronger Than The Q4 Reaction Suggests

Espey delivered strong revenue growth and record margins, supported by a large backlog and a strong balance sheet. ESP's Q4 revenue grew 40.9% YoY, surpassing my expectations but missing consensus, while new orders declined to $41.4M from $86.4M. Management guides for FY2027 revenue growth and expects new orders to stabilize, but backlog replenishment is critical for long-term growth.