Espey completes magnetics facility expansion to support U.S. Navy needs

SARATOGA SPRINGS, N.Y. - Espey Mfg. & Electronics Corp. (NYSE American:ESP) has begun full-scale production and testing operations at its new Magnetics Center of Excellence, the company announced Wednesday.

The 24,000-square-foot facility expansion, which completed construction in April 2025, was funded in part by a $7.4 million grant awarded to Espey in fiscal year 2023 through the U.S. Navy’s Surface Combatant Industrial Base Development Initiative. The company’s solid financial position, with more cash than debt and a healthy current ratio of 2.66, positions it well for this expansion.

The initiative aims to strengthen the nation’s shipbuilding industrial base by developing a U.S.-based workforce, modernizing infrastructure, expanding domestic shipyard capacity, and revitalizing supply chains to support increased production rates.

"This new expansion further supports Espey’s market leadership in advanced magnetics systems development, fabrication, and rigorous MIL-STD testing across our magnetics product portfolio," said David O’Neil, President and CEO of Espey.

The facility enhances the company’s testing capabilities and power capacity while positioning it for growth in manufacturing military-grade transformers, inductors, and related components.

According to the company’s press release statement, the expansion reflects Espey’s commitment to co-investing with industry partners to ensure a resilient domestic supply of military-standard components.

Espey specializes in developing and producing specialized military and industrial power supplies and transformers. The company has demonstrated strong performance with revenue growth of 13.46% in the last twelve months, and its stock has gained nearly 29% over the past six months. InvestingPro subscribers can access additional insights and 8 more key tips about Espey’s growth potential and market position.

In other recent news, Espey Mfg. & Electronics Corp. has declared a special cash dividend of $0.75 per share. This announcement comes alongside its regular quarterly dividend of $0.25 per share. Both dividends are scheduled to be paid to shareholders on September 26, 2025, with the record date set for September 19, 2025. These developments reflect the company’s ongoing commitment to returning value to its shareholders. The decision was made by Espey’s board of directors, as outlined in a company press release. Investors will be keen to note these payouts as they assess the company’s financial health and shareholder return strategy.

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