ESCO (ESE) 10-Q10 May 232023 Q2 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Mar. 31, 2023	Apr. 30, 2023
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Entity File Number	1-10596
Entity Registrant Name	ESCO TECHNOLOGIES INC.
Entity Incorporation, State or Country Code	MO
Entity Tax Identification Number	43-1554045
Entity Address, Address Line One	9900A CLAYTON ROAD
Entity Address, City or Town	ST. LOUIS
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63124-1186
City Area Code	314
Local Phone Number	213-7200
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ESE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,758,077
Entity Central Index Key	0000866706
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 229,136	$ 204,928	$ 434,637	$ 381,938
Costs and expenses:
Cost of sales	142,296	128,375	268,679	236,680
Selling, general and administrative expenses	53,877	47,959	105,179	94,594
Amortization of intangible assets	7,030	6,510	13,891	12,977
Interest expense, net	2,269	1,020	3,927	1,753
Other expenses (income), net	314	(604)	712	(571)
Total costs and expenses	205,786	183,260	392,388	345,433
Earnings before income taxes	23,350	21,668	42,249	36,505
Income tax expense	5,472	5,085	9,644	8,398
Net earnings	$ 17,878	$ 16,583	$ 32,605	$ 28,107
Earnings per share:
Basic - Net earnings	$ 0.69	$ 0.64	$ 1.26	$ 1.08
Diluted - Net earnings	$ 0.69	$ 0.64	$ 1.26	$ 1.08

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net earnings	$ 17,878	$ 16,583	$ 32,605	$ 28,107
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	2,233	(2,811)	13,747	(5,311)
Total other comprehensive income (loss), net of tax	2,233	(2,811)	13,747	(5,311)
Comprehensive income	$ 20,111	$ 13,772	$ 46,352	$ 22,796

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 48,221	$ 97,724
Accounts receivable, net of allowance for credit losses of $2,693 and $2,612, respectively	180,817	164,645
Contract assets	128,205	125,154
Inventories, net	185,753	162,403
Other current assets	27,144	22,696
Total current assets	570,140	572,622
Property, plant and equipment, net of accumulated depreciation of $166,699 and $165,322, respectively	154,020	155,973
Intangible assets, net of accumulated amortization of $189,819 and $175,928, respectively	401,717	394,464
Goodwill	505,194	492,709
Operating lease assets	41,418	29,150
Other assets	10,113	9,538
Total assets	1,682,602	1,654,456
Current liabilities:
Current maturities of long-term debt and short-term borrowings	20,000	20,000
Accounts payable	79,619	78,746
Contract liabilities	119,970	125,009
Accrued salaries	31,092	40,572
Accrued other expenses	46,374	53,802
Total current liabilities	297,055	318,129
Deferred tax liabilities	81,150	82,023
Non-current operating lease liabilities	37,657	24,853
Other liabilities	44,945	48,294
Long-term debt	141,000	133,000
Total liabilities	601,807	606,299
Shareholders' equity:
Preferred stock, par value $.01 per share, authorized 10,000,000 shares
Common stock, par value $.01 per share, authorized 50,000,000 shares, issued 30,751,449 and 30,707,748 shares, respectively	308	307
Additional paid-in capital	304,184	301,553
Retained earnings	933,499	905,022
Accumulated other comprehensive loss, net of tax	(18,018)	(31,764)
Total stockholders' equity before treasury stock	1,219,973	1,175,118
Less treasury stock, at cost: 4,993,372 and 4,854,997 common shares, respectively	(139,178)	(126,961)
Total shareholders' equity	1,080,795	1,048,157
Total liabilities and shareholders' equity	$ 1,682,602	$ 1,654,456

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Net of allowance for credit losses	$ 2,693	$ 2,612
Net of accumulated depreciation	166,699	165,322
Net of accumulated amortization	$ 189,819	$ 175,928
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	30,751,449	30,707,748
Treasury stock, shares	4,993,372	4,854,997

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net earnings	$ 32,605	$ 28,107
Adjustments to reconcile net earnings to net cash (used) provided by operating activities:
Depreciation and amortization	24,910	24,292
Stock compensation expense	5,309	3,428
Changes in assets and liabilities	(67,140)	(41,451)
Effect of deferred taxes	(1,145)	8,627
Net cash (used) provided by operating activities	(5,461)	23,003
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(17,901)	(15,592)
Additions to capitalized software and other	(5,918)	(4,727)
Capital expenditures	(10,305)	(20,715)
Net cash used by investing activities	(34,124)	(41,034)
Cash flows from financing activities:
Proceeds from long-term debt and short-term borrowings	68,000	88,000
Principal payments on long-term debt and short-term borrowings	(60,000)	(46,000)
Purchases of common stock into treasury	(12,217)	(17,878)
Dividends paid	(4,128)	(4,150)
Other	(2,374)	(2,719)
Net cash (used) provided by financing activities	(10,719)	17,253
Effect of exchange rate changes on cash and cash equivalents	801	(1,130)
Net decrease in cash and cash equivalents	(49,503)	(1,908)
Cash and cash equivalents, beginning of period	97,724	56,232
Cash and cash equivalents, end of period	48,221	54,324
Supplemental cash flow information:
Interest paid	3,384	1,002
Income taxes paid (including state and foreign)	$ 13,346	$ 1,558

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Mar. 31, 2023
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The accompanying consolidated financial statements, in the opinion of management, include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim periods presented. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all the disclosures required for annual financial statements by accounting principles generally accepted in the United States of America (GAAP). The Company’s results for the three-month period ended March 31, 2023 are not necessarily indicative of the results for the entire 2023 fiscal year. References to the second quarters of 2023 and 2022 represent the fiscal quarters ended March 31, 2023 and 2022, respectively. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates.

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)	6 Months Ended
EARNINGS PER SHARE (EPS)	Mar. 31, 2023
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS)	2. EARNINGS PER SHARE (EPS) Basic EPS is calculated using the weighted average number of common shares outstanding during the period. Diluted EPS is calculated using the weighted average number of common shares outstanding during the period plus shares issuable upon the assumed exercise of dilutive common share options and vesting of performance-accelerated restricted shares (restricted shares) by using the treasury stock method. The number of shares used in the calculation of earnings per share for each period presented is as follows (in thousands): Three Months Six Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Weighted Average Shares Outstanding — Basic 25,800 25,953 25,831 26,008 Dilutive Restricted Shares 95 92 88 90 Adjusted Shares — Diluted 25,895 26,045 25,919 26,098

ACQUISITION

ACQUISITION	6 Months Ended
ACQUISITION	Mar. 31, 2023
ACQUISITION
ACQUISITION	3. ACQUISITION On February 1, 2023, the Company acquired CMT Materials, LLC and its affiliate Engineered Syntactic Systems, LLC (CMT) for a purchase price of approximately $18 million, net of cash acquired. CMT, based in Attleboro, Massachusetts, is a supplier of syntactic materials for buoyancy and specialty applications. Since the date of acquisition, the operating results for the CMT business have been included as part of Globe in the A&D segment. The acquisition date fair value of the assets acquired and liabilities assumed primarily were as follows: approximately $1.7 million of accounts receivable, $3.0 million of inventory, $1.3 million of property, plant and equipment, $1.2 million of accounts payable and accrued expenses, $7.3 million of identifiable intangible assets, mainly consisting of customer relationships totaling $6.2 million. The acquired goodwill of $5.7 million related to excess value associated with opportunities to expand the services and products that the Company can offer to its customers. The Company anticipates that the goodwill will be deductible for tax purposes.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
SHARE-BASED COMPENSATION	Mar. 31, 2023
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	4. SHARE-BASED COMPENSATION The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated and/or time-vested restricted stock unit awards, and to non-employee directors under a non-employee directors compensation plan. Performance-Accelerated Restricted Stock Unit (PARS) Awards and Time-Vested Restricted Stock Unit (RSU) Awards Compensation expense related to the PARS/RSU awards was $3.1 million and $4.7 million for the three and six-month periods ended March 31, 2023, respectively, and $1.5 million and $2.8 million for the corresponding periods in 2022. As of March 31, 2023, there were 244,387 unvested stock units outstanding. Non-Employee Directors Plan Compensation expense related to the non-employee director grants was $0.3 million and $0.6 million for the three and six-month periods ended March 31, 2023, respectively, and $0.3 million and $0.6 million for the corresponding periods in 2022. The total share-based compensation cost that has been recognized in the results of operations and included within selling, general and administrative expenses (SG&A) was $3.4 million and $5.3 million for the three and six-month periods ended March 31, 2023, respectively, and $1.7 million and $3.4 million for the corresponding periods in 2022. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.3 million and $0.6 million for the three and six-month periods ended March 31, 2023, respectively, and $0.3 million and $0.5 million for the corresponding periods in 2022. As of March 31, 2023, there was $10.8 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted-average period of 1.7 years.

INVENTORIES

INVENTORIES	6 Months Ended
INVENTORIES	Mar. 31, 2023
INVENTORIES
INVENTORIES	5. INVENTORIES Inventories, net, consist of the following: March 31, September 30, (In thousands) 2023 2022 Finished goods $ 32,712 32,471 Work in process 46,596 38,492 Raw materials 106,445 91,440 Total inventories, net $ 185,753 162,403

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS	Mar. 31, 2023
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	6. GOODWILL AND OTHER INTANGIBLE ASSETS Included on the Company’s Consolidated Balance Sheets at March 31, 2023 and September 30, 2022 are the following intangible assets gross carrying amounts and accumulated amortization: March 31, September 30, (Dollars in thousands) 2023 2022 Goodwill $ 505,194 492,709 Intangible assets with determinable lives: Patents Gross carrying amount $ 2,425 2,353 Less: accumulated amortization 1,154 1,091 Net $ 1,271 1,262 Capitalized software Gross carrying amount $ 115,191 106,583 Less: accumulated amortization 74,787 70,476 Net $ 40,404 36,107 Customer relationships Gross carrying amount $ 298,005 287,447 Less: accumulated amortization 105,013 96,921 Net $ 192,992 190,526 Other Gross carrying amount $ 14,298 13,985 Less: accumulated amortization 8,779 7,440 Net $ 5,519 6,545 Intangible assets with indefinite lives: Trade names $ 161,531 160,024 The changes in the carrying amount of goodwill attributable to each business segment for the six months ended March 31, 2023 is as follows: Aerospace (Dollars in millions) USG Test & Defense Total Balance as of September 30, 2022 $ 348.7 34.0 110.0 492.7 Acquisition activity and adjustments — — 5.7 5.7 Foreign currency translation 6.8 — — 6.8 Balance as of March 31, 2023 $ 355.5 34.0 115.7 505.2

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	6 Months Ended
BUSINESS SEGMENT INFORMATION	Mar. 31, 2023
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION	7. BUSINESS SEGMENT INFORMATION The Company is organized based on the products and services that it offers and classifies its continuing business operations in three reportable segments for financial reporting purposes: Aerospace & Defense, Utility Solutions Group (USG), and RF Shielding and Test (Test). The Aerospace & Defense segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair), Westland Technologies Inc. (Westland), Mayday Manufacturing Co. (Mayday) and Globe Composite Solutions, LLC (Globe). The companies within this segment primarily design and manufacture specialty filtration, fluid control and naval products, including hydraulic filter elements and fluid control devices used in aerospace and defense applications; unique filter mechanisms used in micro-propulsion devices for satellites, custom designed filters for manned aircraft and submarines; products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessel’s signature, and other communications, sealing, surface control and hydrodynamic related applications to enhance U.S. Navy maritime survivability; precision-tolerance machined components for the aerospace and defense industry; and metal processing services. The USG segment’s operations consist primarily of Doble Engineering Company and related subsidiaries including Morgan Schaffer and Altanova (collectively, Doble), and NRG Systems, Inc. (NRG). Doble is an industry leader in the development, manufacture and delivery of diagnostic testing solutions that enable electric power grid operators to assess the integrity of high voltage power delivery equipment. It combines three core elements for customers – diagnostic test and condition monitoring instruments, expert consulting, and testing services – and provides access to its large reserve of related empirical knowledge. NRG is a global market leader in the design and manufacture of decision support tools for the renewable energy industry, primarily wind and solar. The Test segment’s operations consist primarily of ETS-Lindgren Inc. and related subsidiaries (ETS-Lindgren). ETS-Lindgren is an industry leader in designing and manufacturing products which provide its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy. ETS-Lindgren also manufactures radio frequency shielding products and components used by manufacturers of medical equipment, communications systems, electronic products, and shielded rooms for high-security data processing and secure communication. Management evaluates and measures the performance of its reportable segments based on “Net Sales” and “EBIT”, which are detailed in the table below. EBIT is defined as earnings before interest and taxes. Three Months Six Months Ended March 31, Ended March 31, (In thousands) 2023 2022 2023 2022 NET SALES Aerospace & Defense $ 98,982 84,821 181,965 155,065 USG 79,161 64,191 150,206 127,676 Test 50,993 55,916 102,466 99,197 Consolidated totals $ 229,136 204,928 434,637 381,938 EBIT Aerospace & Defense $ 18,795 14,349 31,331 24,304 USG 14,061 11,314 30,192 24,705 Test 7,226 8,494 12,637 12,459 Corporate (loss) (14,463) (11,469) (27,984) (23,210) Consolidated EBIT 25,619 22,688 46,176 38,258 Less: Interest expense (2,269) (1,020) (3,927) (1,753) Earnings before income taxes $ 23,350 21,668 42,249 36,505 Non-GAAP Financial Measures The financial measure “EBIT” is presented in the above table and elsewhere in this Report. EBIT on a consolidated basis is a non-GAAP financial measure. Management believes that EBIT is useful in assessing the operational profitability of the Company’s business segments because it excludes interest and taxes, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by management in determining resource allocations within the Company as well as incentive compensation. A reconciliation of EBIT to net earnings is set forth in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations – EBIT. The Company believes that the presentation of EBIT provides important supplemental information to investors to facilitate comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. However, the Company’s non-GAAP financial measures may not be comparable to other companies’ non-GAAP financial performance measures. Furthermore, the use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

DEBT

DEBT	6 Months Ended
DEBT	Mar. 31, 2023
DEBT
DEBT	8. DEBT The Company’s debt is summarized as follows: March 31, September 30, (In thousands) 2023 2022 Total borrowings $ 161,000 153,000 Current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 141,000 133,000 The Credit Facility includes a $500 million revolving line of credit as well as provisions allowing for the increase of the credit facility commitment amount by an additional $250 million, if necessary, with the consent of the lenders. The bank syndication supporting the facility is comprised of a diverse group of eight banks led by JP Morgan Chase Bank, N.A., as Administrative Agent. The Credit Facility matures September 27, 2024, with balance due by this date. At March 31, 2023, the Company had approximately $332 million available to borrow under the Credit Facility, plus the $250 million increase option, subject to lenders’ consent, in addition to $48.2 million cash on hand. The Company classified $20 million as the current portion of long-term debt as of March 31, 2023, as the Company intends to repay this amount within the next twelve months; however, the Company has no contractual obligation to repay such amount during the next twelve months. The letters of credit issued and outstanding under the Credit Facility totaled $7.3 million at March 31, 2023. Interest on borrowings under the Credit Facility is calculated at a spread over either the Standard Overnight Financing Rate (SOFR) or the prime rate depending on various factors. The Credit Facility also requires a facility fee ranging from 10 to 25 basis points per annum on the unused portion. The interest rate spreads on the facility and the facility fee are subject to increase or decrease depending on the Company’s leverage ratio. The weighted average interest rates were

INCOME TAX EXPENSE

INCOME TAX EXPENSE	6 Months Ended
INCOME TAX EXPENSE	Mar. 31, 2023
INCOME TAX EXPENSE
INCOME TAX EXPENSE	9. INCOME TAX EXPENSE The second quarter 2023 effective income tax rate was 23.4% compared to 23.5% in the second quarter of 2022. The effective income tax rate in the first six months of 2023 was 22.8% compared to 23.0% for the first six months of 2022. There were no significant or unusual items impacting the 2023 second quarter or year-to-date effective tax rate.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
SHAREHOLDERS' EQUITY	Mar. 31, 2023
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	10. SHAREHOLDERS’ EQUITY The change in shareholders’ equity for the first three and six months of 2023 and 2022 is shown below (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Common stock Beginning balance 307 307 307 307 Stock plans 1 — 1 — Ending balance 308 307 308 307 Additional paid-in-capital Beginning balance 300,697 296,277 301,553 297,644 Stock plans 3,487 2,076 2,631 709 Ending balance 304,184 298,353 304,184 298,353 Retained earnings Beginning balance 917,682 840,434 905,022 830,989 Net earnings common stockholders 17,878 16,583 32,605 28,107 Dividends paid (2,061) (2,071) (4,128) (4,150) Ending balance 933,499 854,946 933,499 854,946 Accumulated other comprehensive income (loss) Beginning balance (20,251) (4,661) (31,764) (2,161) Foreign currency translation 2,233 (2,811) 13,746 (5,311) Ending balance (18,018) (7,472) (18,018) (7,472) Treasury stock Beginning balance (132,037) (117,080) (126,961) (107,083) Share repurchases (7,141) (7,881) (12,217) (17,878) Ending balance (139,178) (124,961) (139,178) (124,961) Total equity 1,080,795 1,021,173 1,080,795 1,021,173

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Mar. 31, 2023
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	11. FAIR VALUE MEASUREMENTS The accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows: ● Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of March 31, 2023 and September 30, 2022 using available market information or other appropriate valuation methodologies. The carrying amounts of cash and cash equivalents, receivables, inventories, payables, and other current assets and liabilities approximate fair value because of the short maturity of those instruments. Fair Value of Financial Instruments The Company’s forward contracts and interest rate swaps are classified within Level 2 of the valuation hierarchy in accordance with FASB Accounting Standards Codification (ASC) 825, and are immaterial. Nonfinancial Assets and Liabilities The Company’s nonfinancial assets such as property, plant and equipment, and other intangible assets are not measured at fair value on a recurring basis; however they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. No impairments were recorded during the three and six-month periods ended March 31, 2023.

REVENUES

REVENUES	6 Months Ended
REVENUES	Mar. 31, 2023
REVENUES
REVENUES	12. REVENUES Disaggregation of Revenues Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2023 are presented in the tables below as the Company deems it best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The tables below also include a reconciliation of the disaggregated revenue within each reportable segment. Three months ended March 31, 2023 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 48,228 $ 78,110 $ 43,188 $ 169,526 Government 50,754 1,051 7,805 59,610 Total revenues $ 98,982 $ 79,161 $ 50,993 $ 229,136 Geographic location: United States $ 82,516 $ 53,020 $ 27,504 $ 163,040 International 16,466 26,141 23,489 66,096 Total revenues $ 98,982 $ 79,161 $ 50,993 $ 229,136 Revenue recognition method: Point in time $ 47,255 $ 64,080 $ 11,968 $ 123,303 Over time 51,727 15,081 39,025 105,833 Total revenues $ 98,982 $ 79,161 $ 50,993 $ 229,136 Six months ended March 31, 2023 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 84,968 $ 148,273 $ 89,180 $ 322,421 Government 96,997 1,933 13,286 112,216 Total revenues $ 181,965 $ 150,206 $ 102,466 $ 434,637 Geographic location: United States $ 151,450 $ 99,399 $ 55,007 $ 305,856 International 30,515 50,807 47,459 128,781 Total revenues $ 181,965 $ 150,206 $ 102,466 $ 434,637 Revenue recognition method: Point in time $ 80,859 $ 120,111 $ 21,069 $ 222,039 Over time 101,106 30,095 81,397 212,598 Total revenues $ 181,965 $ 150,206 $ 102,466 $ 434,637 Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2022 are presented in the tables below. Three months ended March 31, 2022 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 33,562 $ 63,379 $ 51,903 $ 148,844 Government 51,259 812 4,013 56,084 Total revenues $ 84,821 $ 64,191 $ 55,916 $ 204,928 Geographic location: United States $ 72,621 $ 41,458 $ 31,071 $ 145,150 International 12,200 22,733 24,845 59,778 Total revenues $ 84,821 $ 64,191 $ 55,916 $ 204,928 Revenue recognition method: Point in time $ 35,666 $ 51,202 $ 14,838 $ 101,706 Over time 49,155 12,989 41,078 103,222 Total revenues $ 84,821 $ 64,191 $ 55,916 $ 204,928 Six months ended March 31, 2022 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 61,489 $ 126,221 $ 92,941 $ 280,651 Government 93,576 1,455 6,256 101,287 Total revenues $ 155,065 $ 127,676 $ 99,197 $ 381,938 Geographic location: United States $ 133,313 $ 80,199 $ 54,047 $ 267,559 International 21,752 47,477 45,150 114,379 Total revenues $ 155,065 $ 127,676 $ 99,197 $ 381,938 Revenue recognition method: Point in time $ 64,223 $ 102,037 $ 27,660 $ 193,920 Over time 90,842 25,639 71,537 188,018 Total revenues $ 155,065 $ 127,676 $ 99,197 $ 381,938 Revenue Recognition Payment terms with our customers vary by the type and location of the customer and the products or services offered. Arrangements with customers that include payment terms extending beyond one year are not significant. The transaction price for these contracts reflects our estimate of returns and discounts, which are based on historical, current and forecasted information to determine the expected amount to which we will be entitled in exchange for transferring the promised goods or services to the customer. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one to two years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Under the typical payment terms of our long term fixed price contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of costs incurred as the work progresses. For our overtime revenue recognized using the output method of costs incurred, contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several months to one or more years, and the estimation of these costs requires judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change. In addition, in the USG segment, we recognize revenue as a series of distinct services based on each day of providing services (straight-line over the contract term) for certain of our USG segment contracts. Under the typical payment terms of our service contracts, the customer pays us in advance of when services are performed. In addition, in the Test segment, we use milestones to measure progress for our Test segment contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts. Remaining Performance Obligations Remaining performance obligations, which is the equivalent of backlog, represent the expected transaction price allocated to contracts that the Company expects to recognize as revenue in future periods when the Company performs under the contracts. These remaining obligations include amounts that have been formally appropriated under contracts with the U.S. Government, and exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At March 31, 2023, the Company had $740.9 million in remaining performance obligations of which the Company expects to recognize revenues of approximately 79% in the next twelve months. Contract assets and liabilities Assets and liabilities related to contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. Because of the timing difference of revenue recognition and customer billing, these contracts will often result in revenue recognized in excess of billings and billings in excess of costs incurred. At March 31, 2023, contract assets and liabilities totaled $128.2 million and $131.7 million, respectively. During the first six months of 2023, the Company recognized approximately $55 million in revenues that were included in the contract liabilities balance at September 30, 2022. At September 30, 2022, contract assets and liabilities totaled $125.2 million and $137.6 million, respectively.

LEASES

LEASES	6 Months Ended
LEASES	Mar. 31, 2023
LEASES
LEASES	13. LEASES The Company determines at lease inception whether an arrangement that provides control over the use of an asset is a lease. The Company recognizes at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. Certain of the Company’s leases include options to extend the term of the lease for up to 20 years. When it is reasonably certain that the Company will exercise the option, Management includes the impact of the option in the lease term for purposes of determining total future lease payments. As most of the Company’s lease agreements do not explicitly state the discount rate implicit in the lease, Management uses the Company’s incremental borrowing rate on the commencement date to calculate the present value of future payments based on the tenor of each arrangement. The Company’s leases for real estate commonly include escalating payments. These variable lease payments are included in the calculation of the ROU asset and lease liability. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. Non-lease components are excluded from our ROU assets and lease liabilities and expensed as incurred. The Company’s leases are for office space, manufacturing facilities, and machinery and equipment. The components of lease costs are shown below: Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2023 2022 Finance lease cost Amortization of right-of-use assets $ 393 $ 393 Interest on lease liabilities 233 245 Operating lease cost 1,853 1,578 Total lease costs $ 2,479 $ 2,216 Six Months Six Months Ended Ended March 31, March 31, (Dollars in thousands) 2023 2022 Finance lease cost Amortization of right-of-use assets $ 786 $ 826 Interest on lease liabilities 469 511 Operating lease cost 3,498 3,131 Total lease costs $ 4,753 $ 4,468 Additional information related to leases are shown below: Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,779 $ 1,512 Operating cash flows from finance leases 233 245 Financing cash flows from finance leases 330 304 Right-of-use assets obtained in exchange for operating lease liabilities 618 346 Six Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,380 $ 3,008 Operating cash flows from finance leases 469 511 Financing cash flows from finance leases 658 665 Right-of-use assets obtained in exchange for operating lease liabilities 14,582 1,247 March 31, 2023 March 31, 2022 Weighted-average remaining lease term Operating leases 11.5 years 9.9 years Finance leases 11.5 years 12.3 years Weighted-average discount rate Operating leases 4.40 % 3.12 % Finance leases 4.61 % 4.58 % The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on our Consolidated Balance Sheet on March 31, 2023: (Dollars in thousands) Operating Finance Years Ending September 30: Leases Leases 2023 (excluding the six months ended March 31, 2023) $ 3,579 1,130 2024 6,387 2,315 2025 5,085 2,370 2026 4,213 2,434 2027 and thereafter 36,773 18,996 Total minimum lease payments 56,037 27,245 Less: amounts representing interest 12,936 6,721 Present value of net minimum lease payments $ 43,101 20,524 Less: current portion of lease obligations 5,444 1,387 Non-current portion of lease obligations 37,657 19,137 ROU assets $ 41,418 16,557 Operating lease liabilities are included in the Consolidated Balance Sheet in accrued other expenses (current portion) and as a caption on the Consolidated Balance Sheet Balance Sheet ROU ROU

EARNINGS PER SHARE (EPS) (Table

EARNINGS PER SHARE (EPS) (Tables)	6 Months Ended
EARNINGS PER SHARE (EPS) (Tables)	Mar. 31, 2023
EARNINGS PER SHARE (EPS)
Schedule of number of shares used in the calculation of earnings per share	Three Months Six Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Weighted Average Shares Outstanding — Basic 25,800 25,953 25,831 26,008 Dilutive Restricted Shares 95 92 88 90 Adjusted Shares — Diluted 25,895 26,045 25,919 26,098

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
INVENTORIES (Tables)	Mar. 31, 2023
INVENTORIES
Schedule of inventories, net	March 31, September 30, (In thousands) 2023 2022 Finished goods $ 32,712 32,471 Work in process 46,596 38,492 Raw materials 106,445 91,440 Total inventories, net $ 185,753 162,403

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	Mar. 31, 2023
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of intangible assets gross carrying amounts and accumulated amortization	March 31, September 30, (Dollars in thousands) 2023 2022 Goodwill $ 505,194 492,709 Intangible assets with determinable lives: Patents Gross carrying amount $ 2,425 2,353 Less: accumulated amortization 1,154 1,091 Net $ 1,271 1,262 Capitalized software Gross carrying amount $ 115,191 106,583 Less: accumulated amortization 74,787 70,476 Net $ 40,404 36,107 Customer relationships Gross carrying amount $ 298,005 287,447 Less: accumulated amortization 105,013 96,921 Net $ 192,992 190,526 Other Gross carrying amount $ 14,298 13,985 Less: accumulated amortization 8,779 7,440 Net $ 5,519 6,545 Intangible assets with indefinite lives: Trade names $ 161,531 160,024
Schedule of carrying amount of goodwill attributable to each business segment	Aerospace (Dollars in millions) USG Test & Defense Total Balance as of September 30, 2022 $ 348.7 34.0 110.0 492.7 Acquisition activity and adjustments — — 5.7 5.7 Foreign currency translation 6.8 — — 6.8 Balance as of March 31, 2023 $ 355.5 34.0 115.7 505.2

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	6 Months Ended
BUSINESS SEGMENT INFORMATION (Tables)	Mar. 31, 2023
BUSINESS SEGMENT INFORMATION
Schedule of net sales and earnings before income tax	Three Months Six Months Ended March 31, Ended March 31, (In thousands) 2023 2022 2023 2022 NET SALES Aerospace & Defense $ 98,982 84,821 181,965 155,065 USG 79,161 64,191 150,206 127,676 Test 50,993 55,916 102,466 99,197 Consolidated totals $ 229,136 204,928 434,637 381,938 EBIT Aerospace & Defense $ 18,795 14,349 31,331 24,304 USG 14,061 11,314 30,192 24,705 Test 7,226 8,494 12,637 12,459 Corporate (loss) (14,463) (11,469) (27,984) (23,210) Consolidated EBIT 25,619 22,688 46,176 38,258 Less: Interest expense (2,269) (1,020) (3,927) (1,753) Earnings before income taxes $ 23,350 21,668 42,249 36,505

DEBT (Tables)

DEBT (Tables)	6 Months Ended
DEBT (Tables)	Mar. 31, 2023
DEBT
Schedule of debt	March 31, September 30, (In thousands) 2023 2022 Total borrowings $ 161,000 153,000 Current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 141,000 133,000

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
SHAREHOLDERS' EQUITY (Tables)	Mar. 31, 2023
SHAREHOLDERS' EQUITY
Schedule of change in shareholders' equity	Three Months Ended March 31, Six Months Ended March 31, 2023 2022 2023 2022 Common stock Beginning balance 307 307 307 307 Stock plans 1 — 1 — Ending balance 308 307 308 307 Additional paid-in-capital Beginning balance 300,697 296,277 301,553 297,644 Stock plans 3,487 2,076 2,631 709 Ending balance 304,184 298,353 304,184 298,353 Retained earnings Beginning balance 917,682 840,434 905,022 830,989 Net earnings common stockholders 17,878 16,583 32,605 28,107 Dividends paid (2,061) (2,071) (4,128) (4,150) Ending balance 933,499 854,946 933,499 854,946 Accumulated other comprehensive income (loss) Beginning balance (20,251) (4,661) (31,764) (2,161) Foreign currency translation 2,233 (2,811) 13,746 (5,311) Ending balance (18,018) (7,472) (18,018) (7,472) Treasury stock Beginning balance (132,037) (117,080) (126,961) (107,083) Share repurchases (7,141) (7,881) (12,217) (17,878) Ending balance (139,178) (124,961) (139,178) (124,961) Total equity 1,080,795 1,021,173 1,080,795 1,021,173

REVENUES (Tables)

REVENUES (Tables)	6 Months Ended
REVENUES (Tables)	Mar. 31, 2023
REVENUES
Schedule of disaggregation of revenue by reportable segment	Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2023 are presented in the tables below as the Company deems it best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The tables below also include a reconciliation of the disaggregated revenue within each reportable segment. Three months ended March 31, 2023 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 48,228 $ 78,110 $ 43,188 $ 169,526 Government 50,754 1,051 7,805 59,610 Total revenues $ 98,982 $ 79,161 $ 50,993 $ 229,136 Geographic location: United States $ 82,516 $ 53,020 $ 27,504 $ 163,040 International 16,466 26,141 23,489 66,096 Total revenues $ 98,982 $ 79,161 $ 50,993 $ 229,136 Revenue recognition method: Point in time $ 47,255 $ 64,080 $ 11,968 $ 123,303 Over time 51,727 15,081 39,025 105,833 Total revenues $ 98,982 $ 79,161 $ 50,993 $ 229,136 Six months ended March 31, 2023 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 84,968 $ 148,273 $ 89,180 $ 322,421 Government 96,997 1,933 13,286 112,216 Total revenues $ 181,965 $ 150,206 $ 102,466 $ 434,637 Geographic location: United States $ 151,450 $ 99,399 $ 55,007 $ 305,856 International 30,515 50,807 47,459 128,781 Total revenues $ 181,965 $ 150,206 $ 102,466 $ 434,637 Revenue recognition method: Point in time $ 80,859 $ 120,111 $ 21,069 $ 222,039 Over time 101,106 30,095 81,397 212,598 Total revenues $ 181,965 $ 150,206 $ 102,466 $ 434,637 Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2022 are presented in the tables below. Three months ended March 31, 2022 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 33,562 $ 63,379 $ 51,903 $ 148,844 Government 51,259 812 4,013 56,084 Total revenues $ 84,821 $ 64,191 $ 55,916 $ 204,928 Geographic location: United States $ 72,621 $ 41,458 $ 31,071 $ 145,150 International 12,200 22,733 24,845 59,778 Total revenues $ 84,821 $ 64,191 $ 55,916 $ 204,928 Revenue recognition method: Point in time $ 35,666 $ 51,202 $ 14,838 $ 101,706 Over time 49,155 12,989 41,078 103,222 Total revenues $ 84,821 $ 64,191 $ 55,916 $ 204,928 Six months ended March 31, 2022 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 61,489 $ 126,221 $ 92,941 $ 280,651 Government 93,576 1,455 6,256 101,287 Total revenues $ 155,065 $ 127,676 $ 99,197 $ 381,938 Geographic location: United States $ 133,313 $ 80,199 $ 54,047 $ 267,559 International 21,752 47,477 45,150 114,379 Total revenues $ 155,065 $ 127,676 $ 99,197 $ 381,938 Revenue recognition method: Point in time $ 64,223 $ 102,037 $ 27,660 $ 193,920 Over time 90,842 25,639 71,537 188,018 Total revenues $ 155,065 $ 127,676 $ 99,197 $ 381,938

LEASES (Tables)

LEASES (Tables)	6 Months Ended
LEASES (Tables)	Mar. 31, 2023
LEASES
Schedule of components of lease costs	Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2023 2022 Finance lease cost Amortization of right-of-use assets $ 393 $ 393 Interest on lease liabilities 233 245 Operating lease cost 1,853 1,578 Total lease costs $ 2,479 $ 2,216 Six Months Six Months Ended Ended March 31, March 31, (Dollars in thousands) 2023 2022 Finance lease cost Amortization of right-of-use assets $ 786 $ 826 Interest on lease liabilities 469 511 Operating lease cost 3,498 3,131 Total lease costs $ 4,753 $ 4,468
Schedule of additional information related to leases	Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,779 $ 1,512 Operating cash flows from finance leases 233 245 Financing cash flows from finance leases 330 304 Right-of-use assets obtained in exchange for operating lease liabilities 618 346 Six Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,380 $ 3,008 Operating cash flows from finance leases 469 511 Financing cash flows from finance leases 658 665 Right-of-use assets obtained in exchange for operating lease liabilities 14,582 1,247 March 31, 2023 March 31, 2022 Weighted-average remaining lease term Operating leases 11.5 years 9.9 years Finance leases 11.5 years 12.3 years Weighted-average discount rate Operating leases 4.40 % 3.12 % Finance leases 4.61 % 4.58 %
Schedule of reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets	The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on our Consolidated Balance Sheet on March 31, 2023: (Dollars in thousands) Operating Finance Years Ending September 30: Leases Leases 2023 (excluding the six months ended March 31, 2023) $ 3,579 1,130 2024 6,387 2,315 2025 5,085 2,370 2026 4,213 2,434 2027 and thereafter 36,773 18,996 Total minimum lease payments 56,037 27,245 Less: amounts representing interest 12,936 6,721 Present value of net minimum lease payments $ 43,101 20,524 Less: current portion of lease obligations 5,444 1,387 Non-current portion of lease obligations 37,657 19,137 ROU assets $ 41,418 16,557

EARNINGS PER SHARE (EPS) (Detai

EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
EARNINGS PER SHARE (EPS)
Weighted Average Shares Outstanding - Basic	25,800	25,953	25,831	26,008
Dilutive Restricted Shares	95	92	88	90
Adjusted Shares - Diluted	25,895	26,045	25,919	26,098

ACQUISITION (Details)

ACQUISITION (Details) - USD ($) $ in Thousands		6 Months Ended
ACQUISITION (Details) - USD ($) $ in Thousands	Feb. 01, 2023	Mar. 31, 2023	Mar. 31, 2022
ACQUISITION
Payments to acquire businesses net of cash acquired		$ 17,901	$ 15,592
CMT Materials, LLC and its affiliate Engineered Syntactic Systems, LLC
ACQUISITION
Payments to acquire businesses net of cash acquired	$ 18,000
Fair value of accounts receivable acquired	1,700
Fair value of inventory acquired	3,000
Fair value of property, plant and equipment acquired	1,300
Fair value of accounts payable and accrued expenses acquired	1,200
Fair value of identifiable intangible assets acquired	7,300
Goodwill	5,700
Customer relationships \| CMT Materials, LLC and its affiliate Engineered Syntactic Systems, LLC
ACQUISITION
Business combination recognized identifiable assets acquired and liabilities assumed finite-lived intangibles	$ 6,200

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Selling, general and administrative expenses
SHARE-BASED COMPENSATION
Total share-based compensation cost	$ 3.4	$ 1.7	$ 5.3	$ 3.4
Total income tax benefit recognized	0.3	0.3	0.6	0.5
Performance-Accelerated Restricted Share (PARS) Awards
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 3.1	1.5	$ 4.7	2.8
Non-vested shares	244,387		244,387
Compensation Plan for Non-Employee Directors
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 0.3	$ 0.3	$ 0.6	$ 0.6
Total unrecognized compensation cost related to share-based compensation arrangements	$ 10.8		$ 10.8
Weighted average period			1 year 8 months 12 days

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
INVENTORIES
Finished goods	$ 32,712	$ 32,471
Work in process	46,596	38,492
Raw materials	106,445	91,440
Total inventories, net	$ 185,753	$ 162,403

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible assets gross carrying amounts and accumulated amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 505,194	$ 492,709
Less: accumulated amortization	189,819	175,928
Trade names
GOODWILL AND OTHER INTANGIBLE ASSETS
Trade names	161,531	160,024
Customer relationships
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	298,005	287,447
Less: accumulated amortization	105,013	96,921
Net	192,992	190,526
Capitalized software
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	115,191	106,583
Less: accumulated amortization	74,787	70,476
Net	40,404	36,107
Patents
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	2,425	2,353
Less: accumulated amortization	1,154	1,091
Net	1,271	1,262
Other
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	14,298	13,985
Less: accumulated amortization	8,779	7,440
Net	$ 5,519	$ 6,545

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in carrying amount of goodwill (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2023 USD ($)
GOODWILL AND OTHER INTANGIBLE ASSETS
Beginning Balance	$ 492,709
Acquisition activity and adjustments	5,700
Foreign currency translation	6,800
Ending Balance	505,194
USG
GOODWILL AND OTHER INTANGIBLE ASSETS
Beginning Balance	348,700
Foreign currency translation	6,800
Ending Balance	355,500
Test
GOODWILL AND OTHER INTANGIBLE ASSETS
Beginning Balance	34,000
Ending Balance	34,000
Aerospace & Defense
GOODWILL AND OTHER INTANGIBLE ASSETS
Beginning Balance	110,000
Acquisition activity and adjustments	5,700
Ending Balance	$ 115,700

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)
BUSINESS SEGMENT INFORMATION
Net sales	$ 229,136	$ 204,928	$ 434,637	$ 381,938
EBIT	25,619	22,688	46,176	38,258
Less: Interest expense	(2,269)	(1,020)	(3,927)	(1,753)
Earnings before income taxes	23,350	21,668	$ 42,249	36,505
Number of reportable segments \| segment			3
Aerospace & Defense
BUSINESS SEGMENT INFORMATION
Net sales	98,982	84,821	$ 181,965	155,065
EBIT	18,795	14,349	31,331	24,304
USG
BUSINESS SEGMENT INFORMATION
Net sales	79,161	64,191	150,206	127,676
EBIT	14,061	11,314	30,192	24,705
Test
BUSINESS SEGMENT INFORMATION
Net sales	50,993	55,916	102,466	99,197
EBIT	7,226	8,494	12,637	12,459
Corporate (loss)
BUSINESS SEGMENT INFORMATION
EBIT	$ (14,463)	$ (11,469)	$ (27,984)	$ (23,210)

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
DEBT
Total borrowings	$ 161,000	$ 153,000
Current portion of long-term debt	(20,000)	(20,000)
Total long-term debt, less current portion	$ 141,000	$ 133,000

DEBT - Additional information (

DEBT - Additional information (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Sep. 30, 2022	Mar. 31, 2022
DEBT
Available to borrow under the credit facility	$ 332,000
Cash on hand	48,221	$ 97,724
Current maturities of long-term debt	20,000
Letters of credit outstanding, amount	7,300
Revolving Credit Facility
DEBT
Line of credit facility, amount outstanding	500,000
Line of credit facility, commitment fee amount	$ 250,000
Minimum
DEBT
Debt, weighted average interest rate	5.33%		1.23%
Maximum
DEBT
Incremental term loan	$ 250,000
Debt, weighted average interest rate	5.97%		1.29%

INCOME TAX EXPENSE (Details)

INCOME TAX EXPENSE (Details)	3 Months Ended		6 Months Ended
INCOME TAX EXPENSE (Details)	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
INCOME TAX EXPENSE
Effective income tax rate	23.40%	23.50%
Decreasing the effective tax rate			22.80%	23%

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Changes in shareholder's equity
Beginning balance			$ 1,048,157
Net earnings common stockholders	$ 17,878	$ 16,583	32,605	$ 28,107
Ending balance	1,080,795	1,021,173	1,080,795	1,021,173
Common stock
Changes in shareholder's equity
Beginning balance	307	307	307	307
Stock plans	1		1
Ending balance	308	307	308	307
Additional paid-in-capital
Changes in shareholder's equity
Beginning balance	300,697	296,277	301,553	297,644
Stock plans	3,487	2,076	2,631	709
Ending balance	304,184	298,353	304,184	298,353
Retained earnings
Changes in shareholder's equity
Beginning balance	917,682	840,434	905,022	830,989
Net earnings common stockholders	17,878	16,583	32,605	28,107
Dividends paid	(2,061)	(2,071)	(4,128)	(4,150)
Ending balance	933,499	854,946	933,499	854,946
Accumulated other comprehensive income (loss)
Changes in shareholder's equity
Beginning balance	(20,251)	(4,661)	(31,764)	(2,161)
Foreign currency translation	2,233	(2,811)	13,746	(5,311)
Ending balance	(18,018)	(7,472)	(18,018)	(7,472)
Treasury stock
Changes in shareholder's equity
Beginning balance	(132,037)	(117,080)	(126,961)	(107,083)
Share repurchases	(7,141)	(7,881)	(12,217)	(17,878)
Ending balance	$ (139,178)	$ (124,961)	$ (139,178)	$ (124,961)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details)	Mar. 31, 2023 USD ($)
FAIR VALUE MEASUREMENTS
Fair value of financial instruments	$ 0

REVENUES - Disaggregation of Re

REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	$ 229,136	$ 204,928	$ 434,637	$ 381,938
Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	123,303	101,706	222,039	193,920
Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	105,833	103,222	212,598	188,018
United States
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	163,040	145,150	305,856	267,559
International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	66,096	59,778	128,781	114,379
Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	169,526	148,844	322,421	280,651
Government
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	59,610	56,084	112,216	101,287
Aerospace & Defense
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	98,982	84,821	181,965	155,065
Aerospace & Defense \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	47,255	35,666	80,859	64,223
Aerospace & Defense \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	51,727	49,155	101,106	90,842
Aerospace & Defense \| United States
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	82,516	72,621	151,450	133,313
Aerospace & Defense \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	16,466	12,200	30,515	21,752
Aerospace & Defense \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	48,228	33,562	84,968	61,489
Aerospace & Defense \| Government
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	50,754	51,259	96,997	93,576
USG
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	79,161	64,191	150,206	127,676
USG \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	64,080	51,202	120,111	102,037
USG \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	15,081	12,989	30,095	25,639
USG \| United States
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	53,020	41,458	99,399	80,199
USG \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	26,141	22,733	50,807	47,477
USG \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	78,110	63,379	148,273	126,221
USG \| Government
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	1,051	812	1,933	1,455
Test
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	50,993	55,916	102,466	99,197
Test \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	11,968	14,838	21,069	27,660
Test \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	39,025	41,078	81,397	71,537
Test \| United States
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	27,504	31,071	55,007	54,047
Test \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	23,489	24,845	47,459	45,150
Test \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	43,188	51,903	89,180	92,941
Test \| Government
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	$ 7,805	$ 4,013	$ 13,286	$ 6,256

REVENUES - Remaining Performanc

REVENUES - Remaining Performance Obligations (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2023	Sep. 30, 2022
Remaining Performance Obligations
Remaining performance obligations amount	$ 740.9
Revenue recognized	55
Contract assets	128.2
Contract liabilities	$ 131.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	79%
Revenue remaining performance obligation expected timing of satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Remaining Performance Obligations
Contract assets		$ 125.2
Contract liabilities		$ 137.6

LEASES - Components of lease co

LEASES - Components of lease costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Leases
Option to extend			true
Finance lease cost
Amortization of right-of-use assets	$ 393	$ 393	$ 786	$ 826
Interest on lease liabilities	233	245	469	511
Operating lease cost	1,853	1,578	3,498	3,131
Total lease costs	$ 2,479	$ 2,216	$ 4,753	$ 4,468
Maximum
Leases
Lease term	20 years		20 years

LEASES - Additional information

LEASES - Additional information related to leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 1,779	$ 1,512	$ 3,380	$ 3,008
Operating cash flows from finance leases	233	245	469	511
Financing cash flows from finance leases	330	304	658	665
Right-of-use assets obtained in exchange for operating lease liabilities
Operating leases	$ 618	$ 346	$ 14,582	$ 1,247
Weighted-average remaining lease term:
Operating leases	11 years 6 months	9 years 10 months 24 days	11 years 6 months	9 years 10 months 24 days
Finance leases	11 years 6 months	12 years 3 months 18 days	11 years 6 months	12 years 3 months 18 days
Weighted-average discount rate:
Operating leases	4.40%	3.12%	4.40%	3.12%
Finance leases	4.61%	4.58%	4.61%	4.58%

LEASES - Reconciliation of futu

LEASES - Reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Operating leases
2023 (excluding the six months ended March 31, 2023)	$ 3,579
2024	6,387
2025	5,085
2026	4,213
2027 and thereafter	36,773
Total minimum lease payments	56,037
Less: amounts representing interest	12,936
Present value of net minimum lease payments	$ 43,101
Location of operating lease liabilities included on Consolidated Balance Sheets	Accrued other expenses, Other liabilities
Less: current portion of lease obligations	$ 5,444
Non-current portion of lease obligations	37,657	$ 24,853
ROU assets	$ 41,418	$ 29,150
Location of operating lease ROU assets included on Consolidated Balance Sheets	ROU assets
Finance leases
2023 (excluding the six months ended March 31, 2023)	$ 1,130
2024	2,315
2025	2,370
2026	2,434
2027 and thereafter	18,996
Total minimum lease payments	27,245
Less: amounts representing interest	6,721
Present value of net minimum lease payments	$ 20,524
Location of finance lease liabilities included on Consolidated Balance Sheets	Accrued other expenses, Other liabilities
Less: current portion of lease obligations	$ 1,387
Non-current portion of lease obligations	19,137
ROU assets	$ 16,557
Location of finance lease ROU assets included on Consolidated Balance Sheets	Property, Plant and Equipment, Net