ESCO TECHNOLOGIES INC Revenue Disclosure
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: |
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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 | |||||||
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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 | |||||||
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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: |
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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 | |||||||
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Geographic location: |
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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 | |||||||
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Revenue recognition method: |
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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 | |||||||
| (b) | Remaining Performance Obligations |
Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our performance obligations that we expect to recognize as revenue in future periods when we perform under the contracts. These remaining obligations include amounts that have been formally appropriated under contracts with the U.S. Government, and exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery or Indefinite Quantity contracts. At September 30, 2025, we had $1,133.6 million in remaining performance obligations of which we expect to recognize to revenues approximately 64% in the next twelve months. We expect to recognize to revenues approximately 92% in the next three years.
| (c) | Contract assets, contract liabilities and accounts receivable from continuing operations |
We report assets and liabilities related to our contracts with customers on a contract-by-contract basis at the end of each reporting period. At September 30, 2025, our contract assets, contract liabilities and accounts receivable totaled $90.7 million, $224.7 million and $253.6 million, respectively. At September 30, 2024, our contract assets, contract liabilities and accounts receivable totaled $66.7 million, $90.3 million and $222.1 million, respectively. At September 30, 2023, our contract assets, contract liabilities and accounts receivable totaled $68.8 million, $83.8 million and $189.3 million, respectively. During 2025, we recognized approximately $60 million in revenues that were included in the contract liabilities balance at September 30, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 1, 2025 | Showing above |
| 2024 | Nov 29, 2024 | |
| 2023 | Nov 29, 2023 | |
| 2022 | Nov 29, 2022 | |
| 2021 | Nov 29, 2021 | |
| 2020 | Nov 30, 2020 | |
| 2019 | Nov 29, 2019 | |
| 2015 | Nov 30, 2015 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.