Enerpac Tool Group Corp. Reports 5.5% Increase in Third Quarter Fiscal 2025 Net Sales

Enerpac Tool Group reported a 5.5% increase in Q3 net sales, achieving $159 million, with adjusted net earnings of $27.7 million.

Quiver AI Summary

Enerpac Tool Group Corp. reported its fiscal third-quarter results for 2025, highlighting a 5.5% increase in net sales to $159 million, with a 2.0% organic sales growth. The operating profit margin was 20.0%, while the adjusted operating profit margin was 24.1%. Net earnings reached $22 million, equivalent to $0.41 per diluted share, with adjusted net earnings at $27.7 million or $0.51 per diluted share. The company returned approximately $14 million to shareholders through share repurchases. Despite economic uncertainties, Enerpac's President & CEO expressed confidence in the company's resilience owing to its brand strength, product offerings, and channel network. The company maintained its sales guidance for 2025, anticipating total sales of $610 to $625 million. Additionally, Enerpac has relocated its headquarters to downtown Milwaukee, enhancing its collaborative environment and innovation capabilities.

Potential Positives

• Net sales increased by 5.5% year-over-year, demonstrating growth despite economic challenges.
• Adjusted net earnings rose to $27.7 million, or $0.51 per diluted share, up from $25.6 million, indicating improved profitability.
• Generated $56 million in cash from operating activities for the first nine months, a significant increase from $37 million in the prior year.
• Successfully returned approximately $14 million to shareholders through share repurchases, reflecting strong capital management and shareholder value focus.

Potential Negatives

• Gross profit margin declined 140 basis points year-over-year to 50.4%, indicating pressure on profitability.
• Selling, general, and administrative expenses increased by $3.3 million year-over-year, primarily driven by restructuring charges totaling $5.9 million, suggesting significant operational costs.
• Full-year guidance maintained with expectations of delivering towards the lower half of the range due to current macroeconomic conditions, reflecting caution in future performance.

FAQ

What were Enerpac's third quarter net sales for fiscal 2025?

Enerpac reported net sales of $158.7 million, a 5.5% increase compared to the prior year.

How much did Enerpac return to shareholders in Q3 2025?

In the third quarter of fiscal 2025, Enerpac returned approximately $14 million to shareholders through share repurchases.

What was the adjusted net earnings per share for Q3 2025?

The adjusted net earnings per diluted share for the third quarter of fiscal 2025 were $0.51.

How did the adjusted EBITDA margin perform in Q3 2025?

The adjusted EBITDA margin for Q3 2025 was 25.9%, a decline of 50 basis points year-over-year.

What are Enerpac's sales growth expectations for fiscal 2025?

Enerpac expects fiscal 2025 net sales growth of 3% to 6%, with organic sales growth of approximately 0% to 2%.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$EPAC Congressional Stock Trading

Members of Congress have traded $EPAC stock 2 times in the past 6 months. Of those trades, 1 have been purchases and 1 have been sales.

Here’s a breakdown of recent trading of $EPAC stock by members of Congress over the last 6 months:

• REPRESENTATIVE JOSH GOTTHEIMER sold up to $15,000 on 04/17.
• REPRESENTATIVE GILBERT RAY CISNEROS, JR. purchased up to $15,000 on 02/26.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.

$EPAC Hedge Fund Activity

We have seen 112 institutional investors add shares of $EPAC stock to their portfolio, and 160 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• NEUBERGER BERMAN GROUP LLC added 1,122,014 shares (+51.3%) to their portfolio in Q1 2025, for an estimated $50,333,548
• JENNISON ASSOCIATES LLC removed 767,354 shares (-37.4%) from their portfolio in Q1 2025, for an estimated $34,423,500
• AMERIPRISE FINANCIAL INC added 436,152 shares (+81.5%) to their portfolio in Q1 2025, for an estimated $19,565,778
• METLIFE INVESTMENT MANAGEMENT, LLC added 282,094 shares (+849.1%) to their portfolio in Q1 2025, for an estimated $12,654,736
• BARROW HANLEY MEWHINNEY & STRAUSS LLC removed 263,568 shares (-11.9%) from their portfolio in Q1 2025, for an estimated $11,823,660
• GW&K INVESTMENT MANAGEMENT, LLC added 237,763 shares (+45.6%) to their portfolio in Q1 2025, for an estimated $10,666,048
• BLACKROCK, INC. removed 215,012 shares (-2.5%) from their portfolio in Q1 2025, for an estimated $9,645,438

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

Third Quarter of Fiscal 2025 Continuing Operations Highlights



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  Net sales were $159 million, a 5.5% increase compared to the prior year, with a 2.0% increase in organic sales.
  
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  Operating profit margin was 20.0% and adjusted operating profit margin was 24.1%.
  


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  Net earnings were $22.0 million, or $0.41 per diluted share. Adjusted net earnings were $27.7 million, or $0.51 per diluted share.
  


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  Adjusted EBITDA was $41.0 million and adjusted EBITDA margin was 25.9%.
  


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  Returned approximately $14 million to shareholders through share repurchases.
  
  
  

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This press release contains financial measures in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) in addition to non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to the comparable GAAP measures are presented in the tables accompanying this release.

MILWAUKEE, June 26, 2025 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company” or “Enerpac”) today announced results for its fiscal third quarter ended May 31, 2025.

“Enerpac’s results in the third quarter continued to reflect our ability to outperform the soft industrial sector with organic revenue growth of 2% and total revenue growth of 6%,” said Paul Sternlieb, Enerpac Tool Group’s President & CEO. “While we are cognizant of continuing economic uncertainty and geopolitical risk, we believe Enerpac is well suited to navigate the current environment given our brand strength, breadth and depth of product offering, extensive channel partner network, strong balance sheet, continuous improvement process (PEP), implementation of Enerpac Commercial Excellence (ECX), and customer-focused innovation.”

Third Quarter Fiscal 2025 Consolidated Results Comparisons

“Given the continued economic uncertainty and challenging industrial backdrop, we took restructuring actions during the quarter to further align our cost base,” said Darren Kozik, Executive Vice President and Chief Financial Officer. “We also implemented price increases and surcharges in an effort to mitigate the impact of direct material cost increases.”

Consolidated net sales for the third quarter of fiscal 2025 were $158.7 million compared to $150.4 million in the prior-year period, an increase of 5.5%. On an organic basis, sales increased 2.0% year-over-year, driven by IT&S organic growth of 1.5% and 18.7% growth at Cortland Biomedical.

Net sales for the Industrial Tools & Services segment (IT&S) increased 5.1%, driven by organic growth and the acquisition of DTA. On an organic basis, IT&S product and service revenue increased 1.0% and 3.4%, respectively.

Gross profit margin declined 140 basis points year-over-year to 50.4% due to continued pressure on service margins from the project mix and the inclusion of DTA. However, service business margins improved sequentially following actions taken earlier this year.

Selling, general and administrative expenses (SG&A) of $47.0 million increased $3.3 million year-over-year. The increase in SG&A expense was driven primarily by restructuring charges totaling $5.9 million in the third quarter of fiscal 2025. Adjusted SG&A expense, excluding restructuring and M&A charges, was $40.4 million, down from $40.6 million in the year-ago period.

Third quarter fiscal 2025 net earnings and diluted EPS were $22.0 million and $0.41 respectively, compared to $22.6 million and $0.41, respectively, in the year-ago period.

Third quarter adjusted EBITDA was $41.0 million compared to $39.7 million in the year-ago period. Adjusted EBITDA margin declined 50 basis points year-over-year to 25.9% due to the gross margin changes discussed above, partially offset by the improvement in adjusted SG&A and higher contribution from Cortland Biomedical.




Through the first nine months of fiscal 2025 the Company has generated $56.0 million in cash from operating activities as compared to $37.0 million in the year-ago period, an increase of approximately $19 million. Capital expenditures through the first nine months of fiscal 2025 were $16.4 million as compared to $5.0 million in the year-ago period.

Net debt on May 31, 2025, was $50.4 million, resulting in a net debt to adjusted EBITDA ratio of 0.4x. The company repurchased approximately 330,000 shares of its common stock in the third quarter of fiscal 2025 for a total of $14.0 million under its share repurchase program announced in March 2022.

Outlook

“Based on year-to-date results, the Company is maintaining its full-year guidance, with the expectation of delivering towards the lower half of the range in light of current macroeconomic conditions," added Kozik. The Company’s fiscal 2025 guidance includes net sales of $610 million to $625 million in fiscal 2025, representing growth of 3% to 6%. The forecast anticipates organic sales growth of approximately 0% to 2%, with expected adjusted EBITDA in the range of $150 million to $160 million, and free cash flow between $85 million to $95 million.

Relocation to Downtown Milwaukee

“During the third quarter, we completed the relocation to Enerpac’s new headquarters in downtown Milwaukee,” concluded Sternlieb. “We are already enjoying the benefits of our new space, including creating a more vibrant, collaborative environment. Our R&D organization is also seeing the impact of the investment in our new and expanded Innovation Lab, which is enabling faster prototyping and a more rapid product development process.”

Conference Call Information

An investor conference call is scheduled for 7:30 am CT on June 27, 2025. Webcast information and conference call materials, including an earnings presentation, are available on the Enerpac Tool Group company website (

www.enerpactoolgroup.com

).

¹



Organic sales represent net sales excluding the impact of foreign exchange rates, acquisitions, and divestitures. A reconciliation of organic sales to comparable net sales is presented in the tables accompanying


this


release.





²



Calculated


in accordance with the terms of the Company’s September 2022 Senior Credit Facility.

Safe Harbor Statement

Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. In addition to statements with respect to guidance, the terms “outlook,” “guidance,” “may,” “should,” “could,” “anticipate,” “believe,” “estimate,” “expect,” “objective,” “plan,” “project” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements. In addition to the assumptions and other factors referred to specifically in connection with such statements, risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements include, without limitation, general economic uncertainty, the impact of geopolitical activity, including the armed conflicts in the Middle East, including the impact on shipping in the area and the invasion of Ukraine by Russia and international sanctions imposed in response thereto, market conditions in the industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck and automotive industries, supply chain risks, including disruptions in deliveries from suppliers due to political tensions and armed conflicts; impacts from the imposition, or threat of imposition, of tariffs, the ability of the Company to achieve its plans or objectives related to its growth strategy, market acceptance of existing and new products, market acceptance of price increases, successful integration of acquisitions, the impact of dispositions and restructurings, the ability of the Company to continue to achieve its plans or objectives related to the PEP program, operating margin risk due to competitive pricing and operating efficiencies, risks related to reliance on independent agents and distributors for the distribution and service of products, material, labor, or overhead cost increases, tax law changes, foreign currency risk, interest rate risk, commodity risk, tariffs, litigation matters, cybersecurity risk, impairment of goodwill or other intangible assets, the Company’s ability to access capital markets and other risks and uncertainties that may be referred to or noted in the Company’s reports filed with the Securities and Exchange Commission from time to time, including those described in the Company’s Form 10-K for the fiscal year ended August 31, 2024 and its Form 10-Q for the period ended February 28, 2025. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.

Non-GAAP Financial Information

This press release contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted operating profit from continuing operations, segment adjusted operating profit and adjusted EBITDA, adjusted corporate expense, adjusted SG&A expense, free cash flow and net debt. This press release includes reconciliations of non-GAAP measures to the most comparable GAAP measure, included in the tables attached to this press release or in footnotes to the tables included in this press release. Management believes the non-GAAP measures presented in this press release are commonly used financial measures for investors to evaluate Enerpac Tool Group’s operating performance and financial position with respect to the periods presented and, when read in conjunction with the condensed consolidated financial statements, present a useful tool to evaluate ongoing operations and provide investors with metrics they can use to evaluate aspects of the Company’s performance from period to period. In addition, these are some of the financial metrics management uses in internal evaluations of the overall performance of the Company’s business. Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.

About Enerpac Tool Group

Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries. The Company makes complex, often hazardous jobs possible safely and efficiently. Enerpac Tool Group’s businesses are global leaders in high pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world. The Company was founded in 1910 and is headquartered in Milwaukee, Wisconsin. Enerpac Tool Group common stock trades on the NYSE under the symbol EPAC. For further information on Enerpac Tool Group and its businesses, visit the Company's website at

www.enerpactoolgroup.com

.

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