Financial Performance - Net earnings for the three months ended November 30, 2024, were $21,723 thousand, an increase from $17,738 thousand in the same period last year, representing a growth of 22.3%[11] - Comprehensive income decreased to $12,047 thousand from $18,108 thousand year-over-year, primarily due to foreign currency translation adjustments[11] - Net sales for the three months ended November 30, 2024, increased to $145,196 thousand from $141,970 thousand, representing a growth of 1.6%[24] - Gross profit for the same period was $74,652 thousand, slightly up from $74,250 thousand, indicating a gross margin improvement[24] - Operating profit rose to $31,132 thousand compared to $28,662 thousand, reflecting a year-over-year increase of 5.2%[24] - Net earnings from continuing operations increased to $21,723 thousand, up from $18,305 thousand, marking a growth of 18.5%[24] - Basic earnings per share from continuing operations improved to $0.40, compared to $0.34 in the prior year, a rise of 17.6%[24] - Total revenues for the three months ended November 30, 2024, reached $145,196 thousand, compared to $141,970 thousand in the prior year, marking a growth of about 2.5%[55] - The company reported net earnings of $21,723 thousand for the three months ended November 30, 2024, compared to $23,974 thousand for the same period in 2023, indicating a decrease of about 9.4%[53] Cash Flow and Investments - The company reported cash provided by operating activities from continuing operations of $8,649 thousand, a significant improvement from cash used in the previous year of $3,917 thousand[16] - Capital expenditures for the quarter were $5,857 thousand, an increase from $1,567 thousand in the same period last year[16] - The company made cash payments for business acquisitions totaling $27,196 thousand during the quarter[16] - Cash and cash equivalents decreased to $130,733 thousand from $167,094 thousand, a decline of 21.8%[14] - Net cash used in investing activities increased to $33 million in Q3 2024 from $3 million in Q3 2023, primarily due to a $27 million acquisition of DTA and capital expenditures for the new headquarters[109] Debt and Liabilities - Long-term debt remained relatively stable at $188,294 thousand compared to $189,503 thousand in the previous quarter[14] - The company had $193.8 million in borrowings outstanding under term loans as of November 30, 2024, with no borrowings under the revolving line of credit[47] - Total long-term debt, less current maturities, was $188.3 million as of November 30, 2024, compared to $189.5 million as of August 31, 2024[66] - The company had outstanding letters of credit of $2.9 million and surety bonds of $3.8 million at November 30, 2024[79] Acquisitions and Goodwill - The Company acquired 100% of DTA The Smart Move, S.A. for an initial purchase price of $27.2 million, with a potential total purchase price of €36.0 million based on financial objectives[60] - As of November 30, 2024, the Company recognized $22.0 million of goodwill and $3.0 million of property, plant, and equipment from the acquisition[60] - The acquisition completed generated net sales of $3.2 million for the three months ended November 30, 2024, contributing to the IT&S segment[43] Operational Challenges and Strategies - The company anticipates continued challenges from supply chain issues and geopolitical instability affecting future performance[20] - Enerpac Tool Group Corp. emphasizes the importance of maintaining operational improvements and executing its growth strategy to navigate market uncertainties[21] - The company plans to expand its digital ecosystem and focus on emerging markets, particularly in Asia Pacific, to drive organic growth[101] - The company is relocating its headquarters to Milwaukee, Wisconsin, with an anticipated move-in date later in fiscal 2025[100] Tax and Regulatory Matters - The company’s effective income tax rate for the three months ended November 30, 2024, was 22.1%, a slight decrease from 23.6% in the same period of 2023[53] - The effective tax rate for the three months ended November 30, 2024, was 22.1%, down from 23.6% in the prior-year period[74] - The company believes that ongoing legal proceedings and regulatory matters will not have a material adverse effect on its financial position or cash flows[128] Share Repurchase and Financing - The Company repurchased and retired 109,860 shares for $4.4 million in the three months ended November 30, 2024[91] - Since the inception of the initial share repurchase program in fiscal 2012, the company has repurchased a total of 30,192,041 shares for $843 million[135] - Net financing costs decreased to $3 million in the three months ended November 30, 2024, from $4 million in the prior year[88] Risk Factors - The company is subject to various financial and market risks, including interest rate risk, foreign currency risk, and commodity cost risk[131][132] - A 10% decrease in foreign exchange rates would have resulted in a $8 million reduction in quarterly sales and a $1 million reduction in operating profit for the three months ended November 30, 2024[131]

Core Insights - December 18th was a challenging day for shareholders of Enerpac Tool Group Corp. (NYSE: EPAC) as the broader market declined due to news regarding the Federal Reserve's interest rate policy [1] Group 1: Company Performance - Enerpac Tool Group Corp. faced significant market pressure following the announcement that the Federal Reserve is likely to cut interest rates only twice in the upcoming year [1] Group 2: Market Context - The overall market experienced a plunge, indicating a broader economic concern that could impact various sectors, including those related to Enerpac Tool Group [1]

Financial Data and Key Metrics - Total revenue increased by 2.3% in Q1 2025, with a 1% decline in organic sales for the IT&S business [11] - Gross profit margin declined by 90 basis points to 51.4%, primarily due to lower sales in the Americas and a higher percentage of service revenue [13] - Adjusted SG&A remained flat at 29% of revenue, reflecting effective cost management [14] - Adjusted EBITDA margins declined by 100 basis points, and adjusted EPS increased by 3% to $0.40 [14] - Net debt stood at $63 million, with net-debt leverage of 0.5 times adjusted EBITDA, and total liquidity was $529 million [15] - Free cash flow improved by $11 million due to higher net earnings and lower incentive compensation payments [16] Business Line Performance - IT&S business revenue increased by 2.3% YoY, with a 5.6% increase in service revenue offset by a 3% decline in product sales [11] - Cortland Biomedical reported a 2.6% YoY revenue increase [13] - DTA acquisition contributed $3 million in revenue and $5 million in order volume, with expectations of €20 million in full-year 2025 sales [12] Regional Performance - EMEA region showed positive YoY growth, particularly in the wind market, with strong service revenue driven by petrochemical and power generation markets [20] - Asia Pacific region returned to YoY growth with mid-single-digit sales gains, despite softness in Australia due to mining industry conditions [21] - Americas region remained cautious, with weaker sales of standard industrial tools but gains in Heavy Lifting Technology (HLT) and services [22] Strategic Direction and Industry Competition - The company is focused on cost management and operational efficiency through its Powering Enerpac Performance (PEP) program [24] - Strategic sourcing initiatives have reduced the supplier base from over 6,000 to fewer than 5,000, aiming to further optimize supply chain efficiency [25] - The company is leveraging its global brand leadership and customer-driven innovation to outperform the market [8] Management Commentary on Operating Environment and Future Outlook - The company is monitoring the sluggish industrial macro environment, particularly in the Americas, but remains optimistic about future demand driven by potential policy changes and customer sentiment [8][34] - Management expects growth in the Asia Pacific region and anticipates a more positive demand environment in the Americas in the coming months [21][22] Other Important Information - The company is relocating its headquarters, which is expected to bring long-term benefits [16] - Enerpac is well-positioned for disciplined M&A, internal investments, and opportunistic share repurchases due to strong cash generation and low leverage [17] Q&A Session Summary Question: How did Q1 2025 performance align with expectations? - Q1 2025 played out as expected, with challenges in the industrial environment, but the company remains optimistic about future demand [33][35] Question: Potential impact of tariffs on the business? - The company is in a favorable position regarding potential tariffs, with minimal impact from imports from China and negligible imports from Canada and Mexico [36][37] Question: EMEA region performance and market share gains? - EMEA region continues to outperform despite challenging macro conditions, driven by strong commercial strategies and new product rollouts [39] Question: Drivers of service revenue growth and margin improvement? - Service revenue growth is driven by steady maintenance demand, while margin improvement is expected through operational efficiency and differentiation in service offerings [41][44] Question: Pricing strategy and potential price increases? - The company typically takes price increases 1-2 times a year to recover inflationary costs and has announced low-single-digit price increases for January 2025 [51][52] Question: Infrastructure spending and lead times? - The company sees favorable indicators for infrastructure projects, particularly in Europe and Asia Pacific, and is well-positioned to meet demand with competitive lead times [55][57] Question: Integration of DTA acquisition? - DTA integration is progressing well, with strong order volumes and early success in leveraging Enerpac's global commercial network [72][73] Question: Progress on efficiency initiatives like PEP and ECX? - The company continues to see benefits from its continuous improvement programs, with PEP driving efficiency and ECX being rolled out in EMEA [68][70]

Q1 FY25 EARNINGS DECEMBER 19, 2024 ENERPAC. @ Forward-Looking Statements and Non-GAAP Measures Statements made in this presentation that are not historical are 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 identif ...

Company Performance - Enerpac reported quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.41 per share, and showing a slight increase from $0.39 per share a year ago, resulting in an earnings surprise of -2.44% [1] - The company posted revenues of $145.2 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 0.83% and increasing from $141.97 million year-over-year [2] - Over the last four quarters, Enerpac has not surpassed consensus EPS estimates, but has topped consensus revenue estimates two times [2] Stock Performance - Enerpac shares have increased approximately 52.3% since the beginning of the year, outperforming the S&P 500's gain of 26.9% [4] - The current consensus EPS estimate for the upcoming quarter is $0.40 on $140 million in revenues, and for the current fiscal year, it is $1.81 on $622 million in revenues [8] Industry Outlook - The Manufacturing - Tools & Related Products industry, to which Enerpac belongs, is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook [9] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [6][9]

EXHIBIT 99.1 Enerpac Tool Group Reports First Quarter Fiscal 2025 Results First Quarter of Fiscal 2025 Continuing Operations Highlights Net sales were $145 million, a 2.3% increase compared to the prior year, with a 0.8% decline in organic sales. Operating margin was 21.4% and adjusted operating margin was 21.5%. Net income was $21.7 million, or $0.40 per diluted share, and adjusted net income was $21.9 million, or $0.40 per diluted share. GAAP and adjusted EPS increased 21% and 3% year-over-year, respectiv ...

First Quarter of Fiscal 2025 Continuing Operations Highlights* Net sales were $145 million, a 2.3% increase compared to the prior year, with a 0.8% decline in organic sales.**Operating margin was 21.4% and adjusted operating margin was 21.5%.Net income was $21.7 million, or $0.40 per diluted share, and adjusted net income was $21.9 million, or $0.40 per diluted share. GAAP and adjusted EPS increased 21% and 3% year-over-year, respectively.Adjusted EBITDA was $34.3 million and adjusted EBITDA margin was 23.6 ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Enerpac (EPAC) reports results for the quarter ended November 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on December 18, 2024, might help the stock move higher if these key numbers are better than exp ...

MILWAUKEE, Wis., Dec. 03, 2024 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) announced today that it will release its first quarter fiscal 2025 earnings after the market closes on Wednesday, December 18, 2024. Management will conduct a conference call to discuss the results on Thursday, December 19, 2024, beginning at 8:30 a.m. ET / 7:30 a.m. CT. A real-time webcast of the conference call can be accessed via the Investors section of the Company’s website here. For those who are unavailable to li ...

Company Overview - Enerpac Tool Group Corp (EPAC) is a premier industrial tools, services, technology, and solutions company with a diversified global business, serving industries such as refinery/petrochemical, industrial MRO, infrastructure, power generation, and mining [3][4] - The company operates in over 100 countries and is a global leader in high-pressure hydraulic tools, controlled force products, and service solutions [4] Market Opportunity - Enerpac targets infrastructure, rail, wind, and industrial MRO as core markets, with a geographic focus on the Asia Pacific region [3] - The company estimates a serviceable market opportunity of $2 billion to $3 billion for its target verticals, which currently represent a modest portion of its $600 million annual revenue [3] Operational Efficiency - Enerpac's ASCEND transformation program, initiated in March 2022, has driven operational efficiency, with $75 million invested and annual operating profit improvement exceeding $50-$60 million by fiscal 2023, a year ahead of plan [3] - The program has improved gross margins by 180 basis points to 51.1% in fiscal 2024, with adjusted SG&A expenses improving by 50 basis points and adjusted EBITDA margin reaching 25.0%, up 1100 basis points since fiscal 2021 [3] Financial Performance - For fiscal 2025, Enerpac forecasts organic revenue growth of 0% to 2%, with net sales (including DTA acquisition) projected at $610 million to $625 million, representing 5% growth at the midpoint [3] - Adjusted EBITDA for fiscal 2025 is forecasted at $150 million to $160 million, with a margin of 25.1% at the midpoint, including a 50 basis point improvement in the base business [3] Balance Sheet and Cash Flow - As of August 31, 2024, Enerpac had $167.1 million in cash and net debt of $27 million, with a leverage rate of 0.2 times net debt to trailing adjusted EBITDA, well below its target range of 1.5-2.5 times [3] - The company expects robust free cash flow of $85 million to $95 million for fiscal 2025, enabling continued capital investment, strategic M&A, and shareholder returns [3]