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SARATOGA SPRINGS, N.Y. - Espey Mfg. & Electronics Corp. (NYSE American: ESP) has been awarded a $19.8 million contract to supply electrical power transformers for the U.S. Navy's Virginia and Columbia class submarines. The contract, announced today, will be fully funded and continues the company's relationship with General Dynamics Electric Boat and the U.S. Navy.
Espey, a longstanding provider of military and industrial power supplies and transformers, was selected to manufacture components for the new Columbia class submarines, which are set to replace the Ohio class ballistic missile submarines. With revenue growth of 18.6% over the last twelve months and total revenue of $43.9 million, the company has demonstrated strong performance in the defense sector. These vessels are a critical element of the Department of Defense's strategic priorities.
David O'Neil, President and CEO of Espey, expressed pride in the company's ongoing contributions to national defense and credited the success of the contract award to the dedication of Espey's employees. He emphasized that the company's strategy is aligned with supporting U.S. military programs.
The Columbia class submarine program is of significant importance to the Department of Defense, representing a major investment in the modernization of the U.S. Navy's submarine fleet. The award to Espey underlines the company's established role as a trusted supplier within the defense sector.
This press release includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ from those anticipated. For detailed financial analysis and additional insights, investors can access more than 30 key metrics and ProTips through InvestingPro. Espey cautions against undue reliance on these statements, which are valid only as of their date. The company's primary business focus remains on the development, design, and production of specialized power solutions for military and industrial applications, maintaining a healthy current ratio of 3.6 and offering a dividend yield of 3.8%.
The information in this article is based on a press release statement from Espey Mfg. & Electronics Corp.
In other recent news, Espey Mfg & Electronics Corp. has finalized new employment agreements with two of its key executives, as revealed in a recent SEC filing. The contracts with Jennifer Pickering, the Chief Human Resources Officer and Corporate Secretary, and Kaitlyn O'Neil, the Principal Financial Officer and Treasurer, were completed and are effective as of March 7, 2025. These agreements include provisions for automatic annual renewal unless a notice of non-renewal is provided by either party at least 60 days before the renewal date. Additionally, the contracts specify severance pay equivalent to nine months of base salary if the executives are terminated without cause or choose to leave for a "good reason." While the filing did not disclose specific compensation details, such agreements are standard for high-level corporate officers. This move underscores Espey Mfg & Electronics Corp.'s commitment to structured leadership and stability within the organization. The contractual update aligns with standard corporate governance practices.
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