2 Q2 Fiscal 2025 Revenue | ($ in millions) | | | | | | | --- | --- | --- | --- | --- | --- | | | Net Sales | Net Sales | | | Organic | | | 2Q25 | 2Q24 | | Change | Growth* | | Industrial Tools & Service (IT&S) | $141 | $135 | 4 . | 4% | 4 2% . | | IT&S Product | $114 | $108 | 5 . | 5% | 4 4% . | | IT&S Service | $27 | $27 | -0 . | 2% | 3 4% . | | Other (Cortland Biomedical) | $5 | $4 | 33 . | 1% | 33 1% . | | Enerpac Tool Group | $146 | $138 | 5 . | 1% | 5 0% . | Q2 FY25 EARNINGS 3.25.2025 Forward-Looking S ...

Core Points - Enerpac (EPAC) reported quarterly earnings of $0.39 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.36 per share a year ago [1] - The company achieved revenues of $145.53 million for the quarter ended February 2025, exceeding the Zacks Consensus Estimate by 4.10% and up from $138.44 million year-over-year [2] - Enerpac's stock has increased by approximately 2.8% since the beginning of the year, contrasting with a -3.6% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $162.2 million, and for the current fiscal year, it is $1.78 on revenues of $622.5 million [7] - The estimate revisions trend for Enerpac is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Manufacturing - Tools & Related Products industry, to which Enerpac belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Consolidated net sales for Q2 FY2025 were $145.5 million, a 5.1% increase from $138.4 million in the prior year[5]. - Organic revenue growth was 5%, driven by a 4.2% increase in the Industrial Tools & Services segment and a 33.1% increase at Cortland Biomedical[3][5]. - Net earnings for Q2 FY2025 were $20.9 million, or $0.38 per diluted share, compared to $17.9 million, or $0.33 per diluted share in the prior year[7][8]. - Adjusted EBITDA for Q2 FY2025 was $33.8 million, with an adjusted EBITDA margin of 23.2%, down from 24.8% in the prior year[9]. - Net sales for the three months ended February 28, 2025, increased to $145.528 million, up from $138.437 million in the same period last year, representing a growth of 5.9%[22]. - Gross profit for the six months ended February 28, 2025, was $148.083 million, compared to $145.725 million for the same period in 2024, reflecting a year-over-year increase of 1.6%[22]. - Operating profit for the three months ended February 28, 2025, was $30.820 million, an increase from $29.521 million in the prior year, marking a growth of 4.4%[22]. - Net earnings from continuing operations for the six months ended February 28, 2025, were $42.624 million, compared to $36.177 million for the same period in 2024, indicating a significant increase of 17.5%[22]. - Basic earnings per share from continuing operations rose to $0.38 for the three months ended February 28, 2025, compared to $0.33 in the same period last year, a growth of 15.2%[23]. - Adjusted net earnings from continuing operations for Fiscal 2024 totaled $82.2 million, with Q1 2025 adjusted net earnings projected at $21.7 million[32]. Projections and Guidance - The company projects net sales for FY2025 to be between $610 million and $625 million, with organic sales growth expected to be approximately 0% to 2%[11]. - The forecast for adjusted EBITDA in FY2025 is between $150 million and $160 million, with free cash flow anticipated to be between $85 million and $95 million[11]. - GAAP Operating profit for Fiscal 2025 is projected to be between $135 million and $147 million[36]. - Cash provided by operating activities is estimated to be between $61 million and $76 million[37]. - Capital expenditures are anticipated to be between $19 million and $24 million[37]. - Management does not provide guidance on certain GAAP financial measures due to unpredictability of specific items[38]. Cash Flow and Capital Management - Cash balance as of February 28, 2025, was $119.5 million, down from $153.7 million a year earlier[10]. - The company reported a net decrease in cash and cash equivalents of $47.585 million for the six months ended February 28, 2025, compared to a decrease of $722 thousand in the prior year[25]. - Cash provided by operating activities for continuing operations was $16.108 million for the six months ended February 28, 2025, up from $12.065 million in the prior year, representing a 33.8% increase[25]. - The company returned $10 million to shareholders through share repurchases in Q2 FY2025[8][10]. Segment Performance - Adjusted operating profit for the Industrial Tools & Services segment was $43,648 million, representing a 29.9% margin[27]. - The Industrial Tools & Services segment's revenue for the quarter was $45,629 million, showing a slight increase from the previous quarter[28]. - Other segment adjusted EBITDA was $1,367 million, with a margin of 25.5%[28]. - The company’s adjusted operating profit margin was 22.5% for the latest quarter[27]. - The Industrial Tools & Services Segment generated net sales of $271.9 million in Fiscal 2024, with organic sales growth of 1.6% in Q1 2025 compared to Q1 2024[31]. Expenses and Charges - Gross profit margin declined to 50.5%, a decrease of 110 basis points year-over-year due to a shift in product sales[7]. - The adjusted selling, general and administrative expenses for the six months ended February 28, 2025, totaled $83.741 million, compared to $82.938 million in the same period last year, reflecting a slight increase of 0.9%[22]. - The company incurred restructuring charges totaling $7.8 million for Fiscal 2024, impacting overall profitability[32]. - M&A charges amounted to $413,000 in Fiscal 2024, reflecting ongoing strategic initiatives in mergers and acquisitions[33]. - The ASCEND transformation program charges totaled $7.0 million for Fiscal 2024, highlighting investment in operational improvements[33]. - Financing costs for the quarter were $13,524 million, reflecting an increase compared to previous periods[27]. Strategic Initiatives - The company plans to continue its market expansion and product development initiatives, focusing on enhancing operational efficiency and driving growth in key segments[26]. - The company is focusing on market expansion and new product development as part of its strategic initiatives[29]. - The service product line saw organic sales growth of 5.6% in Q1 2025, indicating strong demand in this segment[31].

Core Insights - Enerpac Tool Group Corp. reported solid performance in the second quarter of fiscal 2025, with organic revenue growth of 5% despite a soft industrial sector [2][4]. Financial Performance - Consolidated net sales for the second quarter of fiscal 2025 were $145.5 million, a 5.1% increase from $138.4 million in the prior-year period [4][9]. - Net earnings for the second quarter were $20.9 million, or $0.38 per diluted share, compared to $17.9 million and $0.33 per diluted share in the same period last year [6][9]. - Adjusted diluted EPS increased to $0.39 from $0.36 year-over-year [3][9]. - Adjusted EBITDA for the second quarter was $33.8 million, with an adjusted EBITDA margin of 23.2%, down from 24.8% in the prior year [7][9]. Segment Performance - The Industrial Tools & Services (IT&S) segment saw a 4.4% increase in net sales, driven by organic growth and the acquisition of DTA [5]. - IT&S product sales increased by 4.4% on an organic basis, while service revenue grew by 3.4% year-over-year [5]. Profitability Metrics - Gross profit margin declined by 110 basis points year-over-year to 50.5%, attributed to a shift in product sales towards Heavy Lifting Technologies and the mix of service projects [6][9]. - Selling, general and administrative expenses (SG&A) rose by 0.7% year-over-year to $41.4 million [6]. Balance Sheet and Cash Flow - As of February 28, 2025, the company had a cash balance of $119.5 million and a debt balance of $192.1 million, resulting in a net debt to adjusted EBITDA ratio of 0.5x [8]. - The company repurchased approximately 220,000 shares for a total of $10.2 million during the second quarter [8]. Outlook - The company maintains a cautious outlook due to macroeconomic uncertainties but reiterates full-year guidance, projecting net sales between $610 million and $625 million for fiscal 2025 [10]. - Expected organic sales growth is projected to be approximately 0% to 2%, with adjusted EBITDA anticipated in the range of $150 million to $160 million [10].

Core Viewpoint - Enerpac Tool Group Corp. will release its second quarter fiscal 2025 earnings on March 24, 2025, with a conference call scheduled for March 25, 2025, to discuss the results [1][2]. Company Overview - Enerpac Tool Group Corp. is a leading provider of industrial tools, services, technology, and solutions, serving a diverse customer base in over 100 countries [3]. - The company specializes in high-pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads, enabling customers to perform complex and hazardous jobs safely and efficiently [3]. - Founded in 1910, Enerpac Tool Group is headquartered in Menomonee Falls, Wisconsin, and its common stock trades on the NYSE under the symbol EPAC [3].

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]

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 ...