Enerpac Tool Group Reports Third Quarter Fiscal 2025 Results
Third Quarter of Fiscal 2025 Continuing Operations Highlights*
Net sales were $159 million, a 5.5% increase compared to the prior year, with a 2.0% increase in organic sales.1
Operating profit margin was 20.0% and adjusted operating profit margin was 24.1%.
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.
Adjusted EBITDA was $41.0 million and adjusted EBITDA margin was 25.9%.
Returned approximately $14 million to shareholders through share repurchases.
*This press release contains financial measures in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") in addition to non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to the comparable GAAP measures are presented in the tables accompanying this release.
MILWAUKEE, June 26, 2025 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE:EPAC) (the "Company" or "Enerpac") today announced results for its fiscal third quarter ended May 31, 2025.
"Enerpac's results in the third quarter continued to reflect our ability to outperform the soft industrial sector with organic revenue growth of 2% and total revenue growth of 6%," said Paul Sternlieb, Enerpac Tool Group's President & CEO. "While we are cognizant of continuing economic uncertainty and geopolitical risk, we believe Enerpac is well suited to navigate the current environment given our brand strength, breadth and depth of product offering, extensive channel partner network, strong balance sheet, continuous improvement process (PEP), implementation of Enerpac Commercial Excellence (ECX), and customer-focused innovation."
Consolidated Results from Continuing Operations
(US$ in millions, except per share)
Three Months Ended
Nine Months Ended
May 31,2025
May 31,2024
May 31,2025
May 31,2024
Net Sales
$158.7
$150.4
$449.4
$430.8
Net Earnings
22.0
22.6
64.7
58.8
Diluted EPS
0.41
0.41
1.18
1.07
Adjusted Diluted EPS
0.51
0.47
1.29
1.22
Adjusted EBITDA
41.0
39.7
109.1
108.9
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 $5.0 million in the year-ago period.
Balance Sheet and Leverage
(US$ in millions)
May 31, 2025
February 28, 2025
May 31, 2024
Cash Balance
$140.5
$119.5
$132.4
Debt Balance
$190.9
$192.1
$195.7
Net Debt to Adjusted EBITDA2
0.4x
0.5x
0.5x
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).
1Organic 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.2Calculated 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.
(tables follow)
Enerpac Tool Group Corp.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
May 31,
August 31,
2025
2024
Assets
Current assets
Cash and cash equivalents
$
140,506
$
167,094
Accounts receivable, net
113,219
104,335
Inventories, net
87,377
72,887
Other current assets
41,479
27,942
Total current assets
382,581
372,258
Property, plant and equipment, net
52,913
40,285
Goodwill
287,630
269,597
Other intangible assets, net
48,241
36,058
Other long-term assets
56,739
59,130
Total assets
$
828,104
$
777,328
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt
$
6,250
$
5,000
Trade accounts payable
45,702
43,368
Accrued compensation and benefits
27,627
25,856
Income taxes payable
3,437
5,321
Other current liabilities
49,004
49,848
Total current liabilities
132,020
129,393
Long-term debt, net
184,627
189,503
Deferred income taxes
7,975
3,696
Pension and postretirement benefit liabilities
8,501
10,073
Other long-term liabilities
56,756
52,684
Total liabilities
389,879
385,349
Shareholders' equity
Capital stock
10,792
10,847
Additional paid-in capital
239,739
235,660
Retained earnings
298,078
261,870
Accumulated other comprehensive loss
(110,384
)
(116,398
)
Stock held in trust
(3,576
)
(3,777
)
Deferred compensation liability
3,576
3,777
Total shareholders' equity
438,225
391,979
Total liabilities and shareholders' equity
$
828,104
$
777,328
Enerpac Tool Group Corp.
Condensed Consolidated Statements of Earnings
(In thousands)
Three Months Ended
Nine Months Ended
May 31,
May 31,
May 31,
May 31,
2025
2024
2025
2024
Net sales
$
158,661
$
150,389
$
449,385
$
430,796
Cost of products sold
78,758
72,506
221,400
207,188
Gross profit
79,903
77,883
227,985
223,608
Selling, general and administrative expenses
41,125
42,101
124,865
125,041
Amortization of intangible assets
1,235
824
3,625
2,480
Restructuring charges
5,862
1,595
5,862
4,393
Impairment & divestiture charges
-
-
-
147
Operating profit
31,681
33,363
93,633
91,547
Financing costs, net
2,395
3,385
7,535
10,793
Other expense, net
947
544
2,184
2,079
Earnings before income tax expense
28,339
29,434
83,914
78,675
Income tax expense
6,295
6,813
19,246
19,877
Net earnings from continuing operations
22,044
22,621
64,668
58,798
Income from discontinued operations, net of income taxes
-
3,157
-
2,535
Net earnings
$
22,044
$
25,778
$
64,668
$
61,333
Earnings per share from continuing operations
Basic
$
0.41
$
0.42
$
1.19
$
1.08
Diluted
0.41
0.41
1.18
1.07
Loss per share from discontinued operations
Basic
$
-
$
0.06
$
-
$
0.05
Diluted
-
0.06
-
0.05
Earnings per share
Basic
$
0.41
$
0.47
$
1.19
$
1.13
Diluted
0.41
0.47
1.18
1.12
Weighted average common shares outstanding
Basic
54,051
54,292
54,230
54,344
Diluted
54,417
54,826
54,679
54,840
*The total of earnings per share from continuing operations and earnings (loss) per share from discontinued operations may not equal earnings per share due to rounding.
Enerpac Tool Group Corp.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
May 31,
May 31,
2025
2024
Operating Activities
Cash provided by operating activities - continuing operations
56,030
39,544
Cash used in operating activities - discontinued operations
-
(2,586
)
Cash provided by operating activities
$
56,030
$
36,958
Investing Activities
Capital expenditures
(16,360
)
(4,970
)
Cash paid for business acquisitions, net of cash acquired
(26,744
)
-
Working capital adjustment from the sale of business assets
-
(1,133
)
Purchase of business assets
-
(1,402
)
Cash used in investing activities - continuing operations
$
(43,104
)
$
(7,505
)
Cash used in investing activities
$
(43,104
)
$
(7,505
)
Financing Activities
Borrowings on revolving credit facility
14,421
48,000
Principal repayments on revolving credit facility
(14,421
)
(64,000
)
Principal repayments on term loan
(3,750
)
(2,500
)
Purchase of treasury shares
(28,594
)
(32,691
)
Stock options, taxes paid related to the net share settlement of equity awards & other
(5,460
)
1,965
Payment of cash dividend
(2,167
)
(2,178
)
Cash used in financing activities - continuing operations
$
(39,971
)
$
(51,404
)
Cash used in financing activities
$
(39,971
)
$
(51,404
)
Effect of exchange rate changes on cash
457
(102
)
Net decrease from cash and cash equivalents
$
(26,588
)
$
(22,053
)
Cash and cash equivalents - beginning of period
167,094
154,415
Cash and cash equivalents - end of period
$
140,506
$
132,362
Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures for Continuing Operations
(In thousands)
Fiscal 2024
Fiscal 2025
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
Net Sales
Industrial Tools & Services Segment
$
137,035
$
134,822
$
145,936
$
153,360
$
571,153
$
140,134
$
140,716
$
153,374
$
-
$
434,224
Other
4,935
3,615
4,453
5,354
18,357
5,062
4,812
5,287
-
15,161
Enerpac Tool Group
$
141,970
$
138,437
$
150,389
$
158,714
$
589,510
$
145,196
$
145,528
$
158,661
$
-
$
449,385
% Net Sales Growth (Decline) Year over Year
Industrial Tools & Services Segment
7.6
%
3.0
%
1.3
%
0.3
%
2.9
%
2.3
%
4.4
%
5.1
%
-
3.9
%
Other
-59.2
%
-67.3
%
-63.3
%
-31.0
%
-57.3
%
2.6
%
33.1
%
18.7
%
-
16.6
%
Enerpac Tool Group
1.9
%
-2.5
%
-3.8
%
-1.2
%
-1.5
%
2.3
%
5.1
%
5.5
%
