2026 Stout ESOP Index Reports 18.1% One Year Return as ESOP Companies Outpace the S&P 500

Second annual study reports an 18.0% five year annualized return and expands industry analysis with new classifications and deeper sector insights.

CHICAGO, Sept. 15, 2026 /PRNewswire/ -- Stout released its 2026 Stout ESOP Index, its second annual analysis of investment returns among privately held companies with employee stock ownership plans (ESOPs). The Index reported an 18.1% return in 2025 and an 18.0% annualized return over the five-year measurement period.

The Stout ESOP Index measures investment returns among privately held ESOP companies and compares their performance with public market benchmarks. The 2026 edition expands the industry analysis with additional classifications and a more detailed view of how performance varies across sectors.

Key findings from the 2026 Index include:

• ESOP companies generated an 18.1% return in 2025, compared with 16.4% for the S&P 500 and 11.3% for the Russell 2000. Over the five year measurement period, the Stout ESOP Index generated an 18.0% annualized return, compared with 12.8% for the S&P 500 and 4.7% for the Russell 2000.
• Companies with ESOPs in place for more than 20 years generated an 18.3% five-year annualized return, compared with 18.7% for plans established for five to 10 years and 15.6% for plans established for 10 to 20 years.
• Architecture, engineering, and construction (AEC) companies led industry performance with a 23.1% five-year annualized return and a 23.6% one-year return. Industrials followed with a 22.6% five-year annualized return.

"By examining the performance of ESOP-owned companies that have been in place for more than 20 years, the Index demonstrates that ESOP companies can continue to perform well as they mature and move through different economic cycles," said Aziz El-Tahch, President of ESOP Advisory at Stout. "Combined with the industry analysis, this year's Index gives business owners and ESOP stakeholders additional data to evaluate performance across sectors and at different stages of the corporate lifecycle."

The 2026 Index provides a deeper look at ESOP performance by industry and maturity. The analysis adds industry classifications including AEC as a standalone category and expands commentary on how transaction leverage and debt repayment can affect performance as ESOPs mature. It also compares annualized returns across one-, three-, and five-year periods to provide additional perspective on performance over the ESOP lifecycle.

Stout advises companies, shareholders, trustees, and other stakeholders across the ESOP lifecycle through valuation, investment banking, and ESOP consulting services.

To learn more, read the 2026 Stout ESOP Index.

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SOURCE Stout