Espey secures $29.5 million Navy contract for submarine panels

Published 12/24/2024, 04:46 AM
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SARATOGA SPRINGS, N.Y. - Espey Mfg. & Electronics Corp. (NYSE American: ESP) announced today that it has been awarded a significant contract by the U.S. Navy and General Dynamics (NYSE:GD) Electric Boat. The contract, valued at $29.5 million, tasks the company with supplying electric power distribution panels for the Columbia class submarines, a new generation of ballistic missile submarines that are a priority for the U.S. Navy.

The Columbia class is set to become the largest submarines ever constructed by the United States, equipped with an innovative electric drive propulsion system. Espey's involvement stems from their prior design work on components for this class of submarines. The company will continue its role in manufacturing these components, with deliveries expected to extend through the calendar year 2030, covering the next four of the twelve planned ships. This long-term contract adds to Espey's robust financial position, with InvestingPro data showing a strong current ratio of 3.55 and healthy revenue growth of 14.32%.

David O'Neil, President and CEO of Espey, expressed pride in the company's ongoing relationship with General Dynamics Electric Boat and the Navy, attributing the contract award to the "amazing dedication" of Espey's employees. He emphasized that the contract aligns with Espey's strategic focus on investing in programs that contribute to U.S. military superiority.

Espey Mfg. & Electronics Corp. specializes in the development, design, and production of specialized military and industrial power supplies and transformers. This latest contract underscores the company's role in supporting critical defense infrastructure and technology.

The information in this article is based on a press release statement from Espey Mfg. & Electronics Corp. and reflects the company's current expectations regarding future events, which are subject to risks and uncertainties that could cause actual results to differ materially.

In other recent news, Espey Mfg. & Electronics Corp. has announced substantial executive changes and shareholder vote results. The company disclosed a significant increase in its quarterly dividend by 25%, declaring a payout of $0.25 per share, a notable increase from the previous distribution. This decision underscores recent developments within the company, possibly indicating a positive shift in Espey's financial performance.

In addition to the financial news, Espey revealed changes to its executive team. Ms. Peggy A. Murphy has stepped down from her role as Corporate Secretary, a position she held since December 1998, and will be succeeded by Ms. Jennifer Pickering, Espey's current Chief Human Resources Officer.

During the recent Annual Meeting, shareholders elected Carl Helmetag and David O’Neil as Class A Directors for a three-year term. Shareholders also ratified the appointment of Freed Maxick CPAs, P.C. as the company's independent registered public accounting firm for the fiscal year ending June 30, 2025.

These developments highlight Espey's ongoing governance and oversight adjustments, which are part of the company's operational framework. As always, Espey reminds investors that forward-looking statements are subject to risks and uncertainties, which may cause actual results to vary from expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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