ESPEY MFG & ELECTRONICS CORP

Espey Mfg. & Electronics Corp.

Overview

Espey designs and manufactures power electronics and magnetic components for military and severe-environment applications. The company provides power conversion products and related components, handling design, fabrication, testing and delivery with extensive in-house capabilities. Some manufacturing and testing are subcontracted to external vendors as needed.

Primary products

• Power supplies, power converters, filters
• Power transformers and magnetic components
• Power distribution equipment and uninterruptible power supplies (UPS)
• Antennas

Primary applications

• AC/DC locomotives
• Shipboard power and radar systems
• Airborne power
• Ground-based radar
• Ground-mobile power

Certifications

• ISO 9001:2015
• AS9100:2016

Location and facilities

• Headquarters: 233 Ballston Ave., Saratoga Springs, New York
• Facility size: 174,000+ square feet of in-service floor space
• Campus: Two buildings on a 22-acre site (approximately eight acres unimproved)
• Plant capabilities: manufacturing, engineering, shipping/storage, office space, complete machine shop, welding/sheet metal fabrication, varnishing/potting/impregnation/spray-painting, and air-conditioned key areas
• Ownership: Facility is owned and not encumbered by mortgage

On-site testing

The site includes a full environmental test facility, and some testing capacity is offered to external customers on a contract basis.

Market position and customers

• Customer concentration: A relatively small number of customers account for a meaningful portion of sales.
  • 2026: Five customers represented 11%, 12%, 13%, 15% and 16% of total sales
  • 2025: Six customers represented 10%, 11%, 12%, 12%, 13% and 16% of total sales
• Export shipments: 2026 = $4,465,966; 2025 = $3,124,820
• Primary order sources: Prime defense contractors, the U.S. Department of Defense and other government agencies, foreign governments, and major foreign electronic equipment companies
• U.S. government contracting: Espey is on the eligible list of contractors and holds CAGE code 20950

Backlog and shipment outlook

• Total backlog (June 30, 2026): $134.9 million
  • Approximately $88.2 million from three significant customers
• Total backlog (June 30, 2025): $139.7 million
  • Approximately $95.2 million from three significant customers
• Funded backlog (June 30, 2026): $123.7 million
• Unfunded backlog (June 30, 2026): $11.2 million (primarily from multiple orders from a single customer)
• Contracts may be modified, changed or canceled; unfunded backlog includes programs management expects are likely to be funded based on discussions and status
• Forecast: About $48 million of the June 30, 2026 backlog is expected to ship in the fiscal year ending June 30, 2027; timing is subject to future events and funding

Sales strategy and competition

• Distribution: Direct sales organization supported by outside sales representatives
• Customer base: Primarily government (DoD and foreign governments) and large industrial manufacturers
• Competition: Ranges from divisions of large electronics companies to smaller firms; competition factors include price, product performance, track record and prior business relationships
• Pricing approach: May absorb upfront design costs to win long-term programs and adjusts pricing to balance retaining repeat programs with competitiveness on new bids

Research and development

• R&D is limited and focused on customer-driven needs and cost reductions for existing products rather than new product development for the open market
• R&D expenditures: 2026 = $69,902; 2025 = $71,074

Employment and labor relations

• Employees: 144 (as of August 31, 2026)
• Union representation: About 35% of employees represented by the International Brotherhood of Electrical Workers
• Collective bargaining: Agreement ratified July 1, 2025; expires June 30, 2028; relations reported as good

Regulation and government contracting

• U.S. government contracts and subcontracts are subject to procurement rules, including the FAR and DFARS
• Contracts may be terminated for convenience or default; government audits may adjust contract costs and fees
• International sales are denominated in U.S. dollars; exchange rate movements can affect local pricing abroad

Environmental, safety and legal matters

• The company states it complies with applicable environmental regulations and does not expect material regulatory effects in 2027
• Legal proceedings: No matters currently pending that the company expects will have a material adverse effect

Ownership and public status

• Smaller reporting company under the Securities Exchange Act of 1934
• Publicly traded on the NYSE American under the symbol ESP
• Incorporated in New York in 1928

Key financial and operational figures

• Revenue (total sales):
  • Fiscal year ended June 30, 2026: $46,124,325
  • Fiscal year ended June 30, 2025: $43,950,872
• Export shipments: 2026 = $4,465,966; 2025 = $3,124,820
• Backlog as of June 30: 2026 = $134.9 million; 2025 = $139.7 million
• Funded backlog (June 30, 2026): $123.7 million
• Unfunded backlog (June 30, 2026): $11.2 million