March 18, 2026
SiSi Cheng and Jennifer Thompson
Division of Corporation Finance
Office of Manufacturing
Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
| RE: | ESCO Technologies Inc. (the Company) Form 10-K for the year ended September 30, 2025 Filed December 1, 2025 File No. 001-10596 |
Dear Ms. Cheng and Ms. Thompson:
This letter sets forth the response of ESCO Technologies Inc. (the “Company”) to the comment letter of the Division of Corporation Finance of the Securities and Exchange Commission (the “Commission”) dated March 11, 2026, with respect to the above referenced filing. We have duplicated the comment set forth in the comment letter and have provided our response below.
Form 10-K for the fiscal year ended September 30, 2025
Notes to Consolidated Financial Statements
Note 10. Business Segment Information, page F-28
| 1. | We note your response to prior comment 2, including your proposed reconciliation of segment assets to consolidated assets. Please tell us how you determined the line currently titled “Corporate assets” contains no significant items that should be separately identified and described. For example, it appears almost half of “Corporate assets” may consist of goodwill not allocated to segments, and other acquired intangible assets not allocated to segments may represent a significant portion of the remainder. See ASC 280-10-50-31 and 280-10-55-49 for guidance. |
Company Response
In future filings, we will present the reconciliation from segment assets to consolidated asset totals in more detail by including the significant reconciling items, as outlined in Exhibit 1. Refer to the bolded highlighted rows in Exhibit 1 for revisions from our last response.
1
If you have any questions or if you require additional information, please do not hesitate to contact me by phone at 314-213-7245 or email at ctucker@escotechnologies.com
| Sincerely, | |
 | |
| Christopher L. Tucker | |
| Senior Vice President & Chief Financial Officer | |
| ESCO Technologies Inc. |
2
Exhibit 1
ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Business Segment Information (in thousands)
For Reference - FY 25 Business Segment Disclosures Only
| FY 25 | A&D | USG | Test | Segment Total | ||||||||||||
| Net Sales | $ | 478,192 | 379,995 | 237,201 | 1,095,388 | |||||||||||
| Cost of sales | 296,688 | 176,976 | 160,639 | |||||||||||||
| SG&A expense | 53,050 | 99,520 | 38,987 | |||||||||||||
| Amortization of intangible assets | 1,465 | 8,563 | 1,978 | |||||||||||||
| Other expense (income), net | 1,850 | 195 | 1,486 | |||||||||||||
| Segment profit (loss) | $ | 125,139 | 94,741 | 34,111 | 253,991 | |||||||||||
| Depreciation and Amortization | $ | 11,714 | 16,119 | 5,744 | 33,577 | |||||||||||
| Segment Assets | 409,789 | 289,505 | 206,944 | 906,238 | ||||||||||||
| Capital Expenditures | $ | 18,758 | 9,478 | 5,048 | 33,284 | |||||||||||
| Reconciliation of segment profit to Earnings before Income Taxes | ||||||||||||||||
| Segment profit total from above | $ | 253,991 | ||||||||||||||
| Less: | ||||||||||||||||
| Unallocated Corporate SG&A and Other expense (income), net | (42,325 | ) | ||||||||||||||
| Unallocated amortization of intangible assets | (41,311 | ) | ||||||||||||||
| Interest expense, net | (17,502 | ) | ||||||||||||||
| Earnings before Income Taxes | $ | 152,853 | ||||||||||||||
| Reconciliation of segment depreciation and amortization to consolidated totals | ||||||||||||||||
| Segment Depreciation and Amortization | $ | 33,577 | ||||||||||||||
| Add: Corporate Depreciation and Amortization | 41,444 | |||||||||||||||
| Consolidated totals | $ | 75,021 | ||||||||||||||
| Reconciliation of segment assets to consolidated totals | ||||||||||||||||
| Segment Assets total | $ | 906,238 | ||||||||||||||
| Add: | ||||||||||||||||
| Goodwill not allocated to segments | 761,931 | |||||||||||||||
| Acquired intangible assets not allocated to segments | 680,815 | (1) | ||||||||||||||
| Other unallocated amounts | 61,404 | |||||||||||||||
| Consolidated totals | $ | 2,410,388 | ||||||||||||||
| (1) Consists of customer relationships, trade names and other intangible assets. See footnote XX for details. | ||||||||||||||||
| Reconciliation of segment capital expenditures to consolidated totals | ||||||||||||||||
| Segment Capital Expenditures | $ | 33,284 | ||||||||||||||
| Add: Corporate Capital Expenditures | 3,038 | |||||||||||||||
| Consolidated totals | $ | 36,322 | ||||||||||||||