Financial Data and Key Metrics Changes - Enerpac reported record revenue of $617 million for fiscal 2025, an increase of 5% year-over-year, with organic growth of 1% after adjusting for foreign exchange and the acquisition of DTA [8][14] - Adjusted EBITDA for the year was $154 million, representing a growth of 4% and a margin of 24.9% [14][19] - Adjusted earnings per share increased by 5% to $1.81 compared to $1.72 in fiscal 2024 [14][19] Business Line Data and Key Metrics Changes - The IT and S business saw a 1% organic revenue increase for the year, while including DTA, revenue increased by 4% [9] - DTA's full-year revenue reached $20 million, with a strong performance in the fourth quarter contributing significantly to overall growth [9][12] - Product revenue declined by 1% year-over-year on an organic basis, while service revenue declined by 7% [14] Market Data and Key Metrics Changes - Growth was observed in two of the three regions, with low single-digit growth in The Americas and strong high single-digit growth in APAC [10] - The EMEA region experienced a mid single-digit decline, primarily due to ongoing economic weakness in Central and Southern Europe [12] - In APAC, double-digit growth was driven by enhanced sales coverage in India and improvements in the mining industry in Australia [10][11] Company Strategy and Development Direction - The company is cautiously optimistic about fiscal 2026, with expectations of lower interest rates and healthy activity in the infrastructure sector [7][19] - Enerpac continues to invest in its Powering Enerpac Performance Program (PEP) to drive continuous improvement and operational capabilities [20] - The company is focusing on capturing more differentiated and value-added service opportunities, including transitioning to a direct business model in certain countries [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging and dynamic environment marked by weakness in the industrial sector and economic uncertainty [5] - There is cautious optimism regarding the macro environment, with expectations of some pressure on margins due to higher tariff costs [19][20] - The company remains focused on infrastructure market opportunities and digital transformation initiatives [13][19] Other Important Information - Enerpac repurchased a record $40 million in stock during the fourth quarter, totaling $69 million for fiscal 2025 [7][16] - The company has a strong balance sheet with net debt of $38 million and total liquidity of $551 million, allowing for continued capital allocation flexibility [17][19] Q&A Session Summary Question: Insights on the EMEA market's performance - Management indicated that the EMEA market, primarily Europe, has seen softening due to macroeconomic challenges, particularly in Central and Southern Europe [32][34] Question: E-commerce performance and global rollout - E-commerce has been rolled out globally, with strong performance in the U.S. and expansion into Europe and Australia [37][38] Question: DTA integration and growth opportunities - DTA has shown robust performance, particularly in the U.S. market, with significant cross-selling opportunities identified [40][42] Question: Overall pipeline of opportunities entering fiscal 2026 - The pipeline remains uncertain but is similar to the previous year, with cautious optimism depending on macroeconomic conditions [50][52] Question: M&A outlook and potential sellers - The company is seeing a more constructive outlook for M&A, with a healthy balance sheet and increased deal flow opportunities [70][73] Question: Growth outlook for Cortland - Management remains bullish on Cortland, expecting continued strong growth and margin accretion [90]

Financial Performance in FY25 - Enerpac Tool Group achieved record revenue since its relaunch in 2019 [7] - The company delivered an EBITDA margin of nearly 25% [7] - Adjusted EPS reached $181 [12] - The company returned $69 million of capital to shareholders [7] Revenue Growth in FY25 - Total Enerpac Tool Group revenue grew by 46% to $617 million [9] - Industrial Tools & Service (IT&S) revenue increased by 43% to $596 million [9] - IT&S Product revenue grew by 51% to $479 million [9] - IT&S Service revenue increased by 11% to $117 million [9] - Other revenue (Cortland Biomedical) grew by 148% to $21 million [9] Q4 2025 Results - Net sales for Q4 2025 were $168 million, a 55% increase year-over-year [16] - Adjusted EBITDA for Q4 2025 was $44 million, a 151% increase year-over-year, with an adjusted EBITDA margin of 265% [16] - Adjusted EPS for Q4 2025 was $052, a 40% increase year-over-year [16] FY26 Guidance - The company projects net sales between $635 million and $655 million, with organic growth of approximately 1-4% [25] - Adjusted EBITDA is projected to be between $158 million and $168 million [26] - Adjusted EPS is expected to be between $185 and $200 [26] - Free cash flow is projected to be between $100 million and $110 million [26]

[Introduction and Highlights](index=1&type=section&id=1_IntroductionAndHighlights) [Executive Summary](index=1&type=section&id=1.1_ExecutiveSummary) Enerpac Tool Group reported record FY2025 revenue, strong margins, and cash flow, returning $71 million to investors, with DTA integration progressing - Enerpac Tool Group posted **record revenue**, maintained **industry-leading margins**, generated **strong cash flow**, and returned **$71 million** to investors in fiscal 2025[4](index=4&type=chunk) - The integration of the acquired DTA business is **fully on track**, with an excellent sales funnel for cross-selling technology[4](index=4&type=chunk) Fiscal 2025 and Q4 2025 Key Financial Highlights | Metric | FY2025 (Millions USD) | Q4 FY2025 (Millions USD) | | :------------------- | :-------------------- | :----------------------- | | Net Sales | $616.9 | $167.5 | | Net Earnings | $92.7 | $28.1 | | Diluted EPS | $1.70 | $0.52 | | Adjusted Diluted EPS | $1.81 | $0.52 | | Adjusted EBITDA | $153.6 | $44.5 | [About Enerpac Tool Group](index=3&type=section&id=1.2_AboutEnerpacToolGroup) Enerpac Tool Group is a premier global provider of industrial tools, services, technology, and solutions for mission-critical applications - Enerpac Tool Group is a **premier industrial tools, services, technology, and solutions provider** serving diverse customers and end markets globally[25](index=25&type=chunk) - The Company's businesses are **global leaders** in high-pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads[25](index=25&type=chunk) [Fiscal 2025 Financial Results](index=1&type=section&id=2_Fiscal2025FinancialResults) [Consolidated Financial Performance](index=1&type=section&id=2.1_ConsolidatedFinancialPerformanceFY25) Enerpac Tool Group achieved record net sales of **$616.9 million** in FY2025, with **4.6%** growth and **37%** increase in cash from operations Fiscal 2025 Consolidated Net Sales Performance | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | YoY Change (%) | Organic Growth (%) | | :------- | :-------------------- | :-------------------- | :------------- | :----------------- | | Net Sales | $616.9 | $589.5 | 4.6% | 1.0% | - Industrial Tools & Services (IT&S) segment sales increased **4.3%**, driven by DTA acquisition and organic growth; Cortland Biomedical grew **14.8%**[6](index=6&type=chunk)[7](index=7&type=chunk) Fiscal 2025 Profitability Metrics | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | YoY Change (%) | | :------------------- | :-------------------- | :-------------------- | :------------- | | Net Earnings | $92.7 | $82.2 | 12.8% | | Diluted EPS | $1.70 | $1.50 | 13.3% | | Adjusted Diluted EPS | $1.81 | $1.72 | 5.2% | | Adjusted EBITDA | $153.6 | $147.5 | 4.1% | - Gross profit margin declined **60 basis points** year-over-year to **50.5%**, influenced by service margins and DTA acquisition[7](index=7&type=chunk) - Selling, general and administrative expenses (SG&A) decreased by **$3.2 million** year-over-year to **$172.8 million**, primarily due to the absence of ASCEND-related charges[9](index=9&type=chunk) - Net cash provided by operating activities was **$111.3 million**, an increase of **37%** from **$81.3 million** in fiscal 2024[8](index=8&type=chunk)[11](index=11&type=chunk) [Fourth Quarter Fiscal 2025 Financial Results](index=1&type=section&id=3_FourthQuarterFiscal2025FinancialResults) [Consolidated Financial Performance](index=1&type=section&id=3.1_ConsolidatedFinancialPerformanceQ425) Q4 FY2025 net sales reached **$167.5 million**, a **5.5%** increase, with **20.1%** net earnings growth and **26.5%** adjusted EBITDA margin Q4 Fiscal 2025 Consolidated Net Sales Performance | Metric | Q4 FY2025 (Millions USD) | Q4 FY2024 (Millions USD) | YoY Change (%) | Organic Growth (%) | | :------- | :----------------------- | :----------------------- | :------------- | :----------------- | | Net Sales | $167.5 | $158.7 | 5.5% | -1.8% | - IT&S segment sales increased **5.4%** due to DTA acquisition, while organic product revenue declined **1.0%** and service revenue declined **7.4%**; Cortland Biomedical grew **10.4%**[12](index=12&type=chunk)[13](index=13&type=chunk) Q4 Fiscal 2025 Profitability Metrics | Metric | Q4 FY2025 (Millions USD) | Q4 FY2024 (Millions USD) | YoY Change (%) | | :------------------- | :----------------------- | :----------------------- | :------------- | | Net Earnings | $28.1 | $23.4 | 20.1% | | Diluted EPS | $0.52 | $0.43 | 20.9% | | Adjusted Diluted EPS | $0.52 | $0.50 | 4.0% | | Adjusted EBITDA | $44.5 | $38.6 | 15.3% | - Gross profit margin returned to normalized levels at **50.1%** in Q4 FY2025, up from **48.8%** in the prior-year period[13](index=13&type=chunk) - Adjusted EBITDA margin improved **220 basis points** year-over-year to **26.5%**[8](index=8&type=chunk)[15](index=15&type=chunk) - SG&A expenses decreased by **$4.5 million** year-over-year to **$42.1 million**, primarily due to the absence of restructuring and ASCEND charges[14](index=14&type=chunk) [Financial Position and Capital Allocation](index=2&type=section&id=4_FinancialPositionAndCapitalAllocation) [Balance Sheet and Leverage](index=2&type=section&id=4.1_BalanceSheetAndLeverage) Enerpac maintained a robust financial position in FY2025, with a **0.3x net debt to adjusted EBITDA ratio**, reflecting strong financial flexibility Balance Sheet and Leverage (August 31, 2025) | Metric | Amount (Millions USD) | | :---------------------- | :-------------------- | | Cash Balance | $151.6 | | Debt Balance | $189.7 | | Net Debt | $38.1 | | Net Debt to Adjusted EBITDA | 0.3x | [Share Repurchase Program](index=2&type=section&id=4.2_ShareRepurchaseProgram) The Board authorized a new **$200 million** share repurchase program, with Q4 FY2025 marking the largest quarterly return of capital at **$40.1 million** - A new **$200 million** share repurchase program was authorized on October 10, 2025, immediately replacing the existing authorization[18](index=18&type=chunk) - In Q4 FY2025, the company repurchased **1.0 million shares** for **$40.1 million**, marking the largest return of capital in a single quarter since March 2022[8](index=8&type=chunk)[16](index=16&type=chunk) - Since March 2022, approximately **$240 million** has been returned to shareholders through the repurchase of about **9.0 million shares** at an average cost of **$26.71 per share**[17](index=17&type=chunk) [Fiscal Year 2026 Outlook](index=2&type=section&id=5_FiscalYear2026Outlook) [Fiscal Year 2026 Guidance](index=2&type=section&id=5.1_FY26Guidance) Enerpac Tool Group projects FY2026 net sales between **$635 million** and **$655 million**, with **1% to 4%** organic growth and **$158 million to $168 million** adjusted EBITDA Fiscal 2026 Guidance | Metric | Low (Millions USD) | High (Millions USD) | | :----------------- | :----------------- | :----------------- | | Net Sales | $635 | $655 | | Organic Growth | 1% | 4% | | Adjusted EBITDA | $158 | $168 | | Adjusted EPS | $1.85 | $2.00 | | Free Cash Flow | $100 | $110 | - Guidance is based on key foreign exchange rate assumptions and assumes no substantial change to the current tariff or regulatory environment[20](index=20&type=chunk) [Supplemental Financial Data and Disclosures](index=2&type=section&id=6_SupplementalFinancialDataAndDisclosures) [Condensed Consolidated Financial Statements](index=4&type=section&id=6.1_CondensedConsolidatedFinancialStatements) This section presents condensed consolidated balance sheets, statements of earnings, and cash flows, detailing Enerpac Tool Group's financial position and performance [Balance Sheets](index=4&type=section&id=6.1.1_BalanceSheets) This section presents the company's consolidated balance sheets, detailing assets, liabilities, and equity for fiscal years 2025 and 2024 Condensed Consolidated Balance Sheets (Thousands USD) | Metric | August 31, 2025 | August 31, 2024 | | :-------------------------- | :-------------- | :-------------- | | Total Assets | $827,867 | $777,328 | | Total Current Assets | $376,118 | $372,258 | | Total Liabilities | $394,173 | $385,349 | | Total Shareholders' Equity | $433,694 | $391,979 | [Statements of Earnings](index=4&type=section&id=6.1.2_StatementsOfEarnings) This section details the company's revenues, expenses, and net earnings for fiscal years 2025 and 2024 Condensed Consolidated Statements of Earnings (Thousands USD) | Metric (Twelve Months Ended August 31) | 2025 | 2024 | | :------------------------------------- | :--- | :--- | | Net Sales | $616,899 | $589,510 | | Gross Profit | $311,829 | $301,011 | | Operating Profit | $133,471 | $121,587 | | Net Earnings from Continuing Operations | $92,749 | $82,207 | | Diluted EPS from Continuing Operations | $1.70 | $1.50 | [Statements of Cash Flows](index=5&type=section&id=6.1.3_StatementsOfCashFlows) This section outlines the cash inflows and outflows from operating, investing, and financing activities for fiscal years 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Thousands USD) | Metric (Twelve Months Ended August 31) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Cash provided by operating activities | $111,284 | $81,319 | | Cash used in investing activities | $(46,001) | $(13,946) | | Cash used in financing activities | $(81,457) | $(56,266) | | Cash and cash equivalents - end of period | $151,558 | $167,094 | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=6.2_ReconciliationOfGAAPToNonGAAPMeasures) This section reconciles GAAP to non-GAAP financial measures, including net sales, SG&A, operating profit, EBITDA, and EPS, for clearer operational insights [Sales, SG&A, Operating Profit, and EBITDA](index=6&type=section&id=6.2.1_SalesSGAOperatingProfitAndEBITDA) This section reconciles sales, SG&A, operating profit, and EBITDA to their adjusted non-GAAP equivalents for fiscal year 2025 Fiscal 2025 Non-GAAP Performance Highlights (Thousands USD) | Metric | FY2025 Total | | :------------------------------------ | :----------- | | Adjusted Selling, general and administrative expenses | $165,505 | | Adjusted Selling, general and administrative expenses % Enerpac Tool Group | 26.8% | | Adjusted Operating profit | $140,752 | | Adjusted Operating Profit % Enerpac Tool Group | 22.8% | | Adjusted EBITDA | $153,595 | | Adjusted EBITDA % Enerpac Tool Group | 24.9% | Fiscal 2025 Organic Sales Growth (YoY %) | Segment | FY2025 Total | | :------------------------------------ | :----------- | | Industrial Tools & Services Segment | 0.5% | | Other | 14.8% | | Enerpac Tool Group | 1.0% | | Product | 0.9% | | Service | 1.3% | [Adjusted Earnings and Diluted EPS](index=9&type=section&id=6.2.2_AdjustedEarningsAndDilutedEPS) This section reconciles net earnings and diluted EPS from continuing operations to their adjusted non-GAAP counterparts for fiscal year 2025 Fiscal 2025 Adjusted Earnings and Diluted EPS (Thousands USD, except per share) | Metric | FY2025 Total | Q4 FY2025 | | :------------------------------------ | :----------- | :-------- | | Net Earnings from Continuing Operations | $92,749 | $28,080 | | Adjusted Net Earnings from Continuing Operations | $98,624 | $27,880 | | Diluted EPS from Continuing Operations | $1.70 | $0.52 | | Adjusted Diluted EPS from Continuing Operations | $1.81 | $0.52 | [Guidance Reconciliation](index=10&type=section&id=6.2.3_GuidanceReconciliation) This section reconciles GAAP operating profit and cash from operating activities to non-GAAP adjusted EBITDA and free cash flow for FY2026 guidance Fiscal 2026 Guidance Reconciliation (Millions USD) | Metric | Low | High | | :------------------------------------ | :-- | :--- | | GAAP Operating profit | $141 | $153 | | Adjusted EBITDA | $158 | $168 | | Cash provided by operating activities | $115 | $120 | | Free Cash Flow | $100 | $110 | [Other Disclosures](index=2&type=section&id=6.3_OtherDisclosures) This section covers investor conference call details, a safe harbor statement for forward-looking statements, and an explanation of non-GAAP financial measures [Conference Call Information](index=2&type=section&id=6.3.1_ConferenceCallInformation) This section provides details for the upcoming investor conference call, including date, time, and access information - An investor conference call is scheduled for **October 16, 2025**, at **7:30 am CT**, with webcast information and materials available on the Enerpac Tool Group website[21](index=21&type=chunk) [Safe Harbor Statement](index=3&type=section&id=6.3.2_SafeHarborStatement) This section outlines the inherent risks and uncertainties associated with the company's forward-looking statements - The press release contains forward-looking statements subject to inherent risks and uncertainties, including general economic uncertainty, geopolitical activity, market conditions, supply chain risks, and impacts from tariffs and trade restrictions[23](index=23&type=chunk) [Non-GAAP Financial Information Explanation](index=3&type=section&id=6.3.3_NonGAAPFinancialInformationExplanation) This section explains the company's use of non-GAAP financial measures to evaluate performance and provides context for their interpretation - Enerpac Tool Group uses non-GAAP financial measures (e.g., organic sales, adjusted EBITDA, adjusted EPS) to evaluate operating performance and financial position, providing reconciliations to comparable GAAP measures[24](index=24&type=chunk) - Management acknowledges that non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies and are not intended to replace GAAP results[24](index=24&type=chunk)

Core Insights - Enerpac Tool Group Corp. reported record revenue for fiscal 2025, achieving net sales of $616.9 million, a 4.6% increase from the previous year, driven by growth in the Industrial Tools & Services segment and Cortland Biomedical [6][12][20] - The company maintained strong cash flow, generating $111.3 million from operating activities, and returned $71 million to investors through share repurchases and dividends while preserving a robust balance sheet [4][10][12] - The integration of the acquired DTA business is progressing well, with a strong sales funnel for cross-selling opportunities [4] Financial Performance - For the fourth quarter of fiscal 2025, net sales were $167.5 million, a 5.5% increase year-over-year, although organic sales decreased by 1.8% [11][12] - Net earnings for fiscal 2025 were $92.7 million, with diluted EPS of $1.70, reflecting a 13% increase compared to the previous year [9][12] - Adjusted EBITDA for fiscal 2025 was $153.6 million, up 4% from $147.5 million in fiscal 2024, with an adjusted EBITDA margin of 24.9% [9][12] Segment Performance - The Industrial Tools & Services segment saw a 4.3% increase in net sales, supported by the DTA acquisition, while organic growth was modest at 0.5% [7][12] - Cortland Biomedical experienced significant growth of 14.8%, contributing positively to overall sales [6][12] - Gross profit margin for the company declined slightly to 50.5%, impacted by service margins and the inclusion of DTA, but was partially offset by stronger margins in Heavy Lifting Technology and Cortland Biomedical [7][9] Cost Management - Selling, general and administrative expenses (SG&A) decreased by $3.2 million year-over-year to $172.8 million, primarily due to the absence of ASCEND-related charges [8][12] - Adjusted SG&A expenses increased slightly to $165.5 million but declined as a percentage of revenues, indicating improved efficiency [8][12] Shareholder Returns - The company returned $69 million to shareholders through share repurchases in the fourth quarter, with a new $200 million share repurchase program authorized on October 10, 2025 [12][18] - Cumulative share repurchases since March 2022 have totaled approximately $240 million [17][18] Outlook - For fiscal 2026, the company projects net sales between $635 million and $655 million, with adjusted EBITDA expected to range from $158 million to $168 million [20] - The guidance reflects anticipated organic growth of 1% to 4% and assumes stable foreign exchange rates and regulatory conditions [20]

Company Announcement - Enerpac Tool Group Corp. will release its fourth quarter fiscal 2025 earnings after the market closes on October 15, 2025 [1] - A conference call to discuss the results is scheduled for October 16, 2025, at 8:30 a.m. ET / 7:30 a.m. CT [1] Conference Call Details - A real-time webcast of the conference call will be available in the Investors section of the Company's website [2] - A replay of the call will be accessible for 90 days for those unable to listen live [2] Company Overview - Enerpac Tool Group Corp. is a leading provider of industrial tools, services, technology, and solutions for mission-critical applications in over 100 countries [3] - The Company specializes in high pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads [3] - Founded in 1910 and headquartered in Milwaukee, Wisconsin, Enerpac Tool Group's common stock trades on the NYSE under the symbol EPAC [3]

Group 1 - Enerpac Tool Group's shares declined by 5.9% on June 27th despite a broader market increase [1] - The decline followed the company's financial report, indicating potential concerns among investors [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - The service includes a stock model account and in-depth cash flow analyses of exploration and production firms [2]

[Part I—Financial Information](index=5&type=section&id=Part%20I%E2%80%94Financial%20Information) [Item 1—Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201%E2%80%94Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for the three and nine months ended May 31, 2025, and 2024, including statements of earnings, comprehensive income, balance sheets, and cash flows, along with detailed notes on acquisitions, restructuring, and segment performance [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) For Q3 FY2025, net sales increased to $158.7 million, while operating profit slightly decreased to $31.7 million due to higher restructuring charges; for the nine-month period, net sales grew to $449.4 million, and operating profit increased to $93.6 million, with diluted EPS from continuing operations at $0.41 for the quarter and $1.18 for the nine-month period Consolidated Statements of Earnings Highlights (in thousands, except per share data) | Metric | Three Months Ended May 31, 2025 | Three Months Ended May 31, 2024 | Nine Months Ended May 31, 2025 | Nine Months Ended May 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $158,661 | $150,389 | $449,385 | $430,796 | | **Gross Profit** | $79,903 | $77,883 | $227,985 | $223,608 | | **Operating Profit** | $31,681 | $33,363 | $93,633 | $91,547 | | **Net Earnings from Continuing Operations** | $22,044 | $22,621 | $64,668 | $58,798 | | **Diluted EPS from Continuing Operations** | $0.41 | $0.41 | $1.18 | $1.07 | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q3 FY2025 significantly increased to $42.6 million from $26.5 million, primarily driven by a positive foreign currency translation adjustment of $20.3 million, with the nine-month comprehensive income rising to $70.7 million from $61.2 million Comprehensive Income Summary (in thousands) | Metric | Three Months Ended May 31, 2025 | Three Months Ended May 31, 2024 | Nine Months Ended May 31, 2025 | Nine Months Ended May 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Earnings** | $22,044 | $25,778 | $64,668 | $61,333 | | **Foreign Currency Translation Adjustments** | $20,280 | $423 | $5,178 | $(2,460) | | **Comprehensive Income** | $42,561 | $26,485 | $70,682 | $61,204 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of May 31, 2025, total assets increased to $828.1 million from $777.3 million, driven by growth in goodwill, inventories, and property, plant, and equipment, while total liabilities remained stable at $389.9 million and total shareholders' equity grew to $438.2 million Balance Sheet Highlights (in thousands) | Account | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $140,506 | $167,094 | | **Total current assets** | $382,581 | $372,258 | | **Goodwill** | $287,630 | $269,597 | | **Total assets** | $828,104 | $777,328 | | **Total current liabilities** | $132,020 | $129,393 | | **Long-term debt, net** | $184,627 | $189,503 | | **Total liabilities** | $389,879 | $385,349 | | **Total shareholders' equity** | $438,225 | $391,979 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended May 31, 2025, net cash provided by operating activities increased to $56.0 million, net cash used in investing activities rose sharply to $43.1 million due to a business acquisition, and net cash used in financing activities decreased to $40.0 million, resulting in a net decrease of $26.6 million in cash and cash equivalents Cash Flow Summary (in thousands) | Activity | Nine Months Ended May 31, 2025 | Nine Months Ended May 31, 2024 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $56,030 | $36,958 | | **Cash used in investing activities** | $(43,104) | $(7,505) | | **Cash used in financing activities** | $(39,971) | $(51,404) | | **Net decrease in cash and cash equivalents** | $(26,588) | $(22,053) | | **Cash and cash equivalents - end of period** | $140,506 | $132,362 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue recognition, acquisitions, restructuring, debt, and segment information, highlighting the DTA acquisition for $26.7 million, the completion of the ASCEND program, a new Q3 FY2025 restructuring plan with $5.9 million in charges, and the repurchase of 660,050 shares for $28.6 million - On September 4, 2024, the Company acquired DTA for an initial purchase price of **$26.7 million**, plus a potential earn-out. This acquisition added **$14.8 million** to goodwill[47](index=47&type=chunk)[48](index=48&type=chunk)[51](index=51&type=chunk) - The ASCEND transformation program was completed as of August 31, 2024, with total program costs of **$74.7 million**. No related expenses were incurred in fiscal 2025[39](index=39&type=chunk)[40](index=40&type=chunk) - During Q3 2025, the company initiated a new restructuring plan, incurring costs of **$5.9 million** related to personnel actions and charges for its former headquarters[45](index=45&type=chunk) - The company repurchased and retired **660,050 shares** for **$28.6 million** in the nine months ended May 31, 2025. **2,056,999 shares** remain available for purchase under the program[65](index=65&type=chunk) [Item 2—Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202%E2%80%94Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, business strategy, and liquidity, noting Q3 FY2025 consolidated net sales grew 6% to $159 million (2% organic growth) with a gross profit margin decline, while nine-month sales increased 4% to $449 million (2% organic growth), driven by a strategy focused on organic growth, margin expansion, and disciplined capital deployment, with improved cash flow from operations Q3 FY2025 vs Q3 FY2024 Performance (in millions) | Metric | Q3 2025 | Q3 2024 | Change | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $159 | $150 | +6% | +2% | | **Gross Profit** | $80 | $78 | +2.6% | N/A | | **Operating Profit** | $32 | $33 | -6.3% | N/A | Nine Months FY2025 vs FY2024 Performance (in millions) | Metric | 9M 2025 | 9M 2024 | Change | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $449 | $431 | +4% | +2% | | **Gross Profit** | $228 | $224 | +1.8% | N/A | | **Operating Profit** | $94 | $92 | +2.2% | N/A | - The IT&S segment net sales increased by **5%** in Q3 FY2025, with organic sales growth of **1%**. For the nine-month period, segment sales grew **4%**, with organic growth of **2%**[88](index=88&type=chunk)[89](index=89&type=chunk) - Net cash provided by operating activities increased to **$56 million** for the nine months ended May 31, 2025, up from **$37 million** in the prior year, driven by higher earnings and lower incentive payments[95](index=95&type=chunk) [Item 3—Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203%E2%80%94Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages exposure to interest rate, foreign currency, and commodity cost risks, using an interest-rate swap for $60 million of its term loan, and estimates a hypothetical 10% adverse change in foreign exchange rates would reduce quarterly sales by $7 million, while acknowledging vulnerability to commodity price fluctuations - **Interest Rate Risk:** An interest-rate swap effectively converts **$60 million** of variable-rate term loan debt to a fixed rate. A **10%** increase in the average cost of variable rate debt would have a minimal impact (less than **$1 million**) on quarterly financing costs[108](index=108&type=chunk) - **Foreign Currency Risk:** A hypothetical **10%** decrease in all foreign exchange rates against the U.S. dollar would have lowered quarterly sales by **$7 million** and operating profit by less than **$1 million**[110](index=110&type=chunk) - **Commodity Cost Risk:** The company is exposed to price fluctuations in commodity raw materials, such as steel and plastic resin, which could negatively impact results if price increases cannot be passed on to customers[111](index=111&type=chunk) [Item 4—Controls and Procedures](index=26&type=section&id=Item%204%E2%80%94Controls%20and%20Procedures) Senior management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of May 31, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[112](index=112&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[113](index=113&type=chunk) [Part II—Other Information](index=27&type=section&id=Part%20II%E2%80%94Other%20Information) [Item 1A—Risk Factors](index=27&type=page&id=Item%201A%E2%80%94Risk%20Factors) This section confirms no material changes to previously disclosed risk factors, reiterating key risks such as geopolitical actions (Middle East and Russia-Ukraine conflicts) and global tariff uncertainty that could deteriorate economic conditions and harm the business - The company highlights that geopolitical activities, including armed conflicts in the Middle East and the Russia-Ukraine conflict, could cause economic deterioration and harm the business[115](index=115&type=chunk) - Uncertainty over global tariffs poses a risk by potentially increasing production costs and depressing demand for the company's products[116](index=116&type=chunk) [Item 2—Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202%E2%80%94Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased and retired 660,050 shares for $28.6 million in the nine months ended May 31, 2025, including 330,523 shares in Q3, with 2,056,999 shares remaining authorized for repurchase Share Repurchase Activity (Q3 FY2025) | Period | Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | March 2025 | 180,333 | $44.83 | | April 2025 | 148,113 | $38.64 | | May 2025 | 2,077 | $39.93 | | **Total Q3** | **330,523** | **$42.03** | - For the nine months ended May 31, 2025, the company repurchased and retired **660,050 shares** for **$28.6 million**[118](index=118&type=chunk) - The maximum number of shares that may yet be purchased under the program is **2,056,999**[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 5—Other Information](index=27&type=section&id=Item%205%E2%80%94Other%20Information) This section discloses that three key executives, including the Non-Executive Chair, President and CEO, and Executive VP and CHRO, entered into new Rule 10b5-1 trading arrangements in May 2025 for the potential future sale of company stock - In May 2025, the Non-Executive Chair (E. James Ferland), President and CEO (Paul E. Sternlieb), and EVP and CHRO (Benjamin J. Topercer) each entered into new Rule 10b5-1 trading arrangements for the future sale of company shares[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) [Item 6—Exhibits](index=28&type=section&id=Item%206%E2%80%94Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by Sections 302 and 906 of the Sarbanes-Oxley Act, and financial statements formatted in Inline XBRL - The report includes required certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[123](index=123&type=chunk) - Financial statements and notes are provided in Inline Extensible Business Reporting Language (Inline XBRL) format[123](index=123&type=chunk)

Financial Data and Key Metrics Changes - Enerpac's revenue increased by 6% year-over-year to $159 million in Q3 2025, marking record third-quarter revenue since the company's relaunch in 2019 [4][6] - Organic growth, adjusted for foreign exchange and the acquisition of DTA, was 2% [6] - Adjusted earnings per share rose by 9% to $0.51, driven by higher earnings, a lower effective tax rate, and a reduced share count [14] - Adjusted EBITDA increased by 3.4%, with the margin declining by 50 basis points year-over-year to 25.9% due to service project mix and the inclusion of DTA [13][14] - Gross profit margin declined by 140 basis points year-over-year to 50.4% [11] Business Line Data and Key Metrics Changes - The IT and S business saw a 1.5% organic revenue increase year-over-year, with product sales growing by 1% and services by 3% [6] - Cortland Biomedical reported a 19% growth, driven by strong performance in diagnostics, bioprocessing, and robotic surgery [8] Market Data and Key Metrics Changes - The Americas region experienced high single-digit organic growth, driven by demand in aerospace, infrastructure, and nuclear service sectors [9] - The APAC region achieved mid single-digit growth, particularly in heavy lifting technology, benefiting from major rail projects and solar farm opportunities [10] - The EMEA region faced a high single-digit decline, primarily due to a drop in the heavy lifting technology business, although infrastructure and defense markets showed strength [11] Company Strategy and Development Direction - The company is focused on advancing its innovation strategy and has invested in a new innovation lab to enhance R&D capabilities [20] - Enerpac aims to remain price cost neutral amidst tariff impacts and is actively managing expenses to align with market conditions [18][19] - The acquisition of DTA is seen as a strategic move to enhance Enerpac's heavy lifting technology offerings [21] Management's Comments on Operating Environment and Future Outlook - Management expressed caution entering Q4 due to increasing economic and geopolitical uncertainty but remains confident in outperforming industrial peers [5] - The company anticipates delivering towards the lower half of its fiscal 2025 revenue guidance due to current macroeconomic conditions [14] Other Important Information - The company recorded a restructuring charge of $5.9 million, primarily for severance, to right-size its cost structure [12] - Enerpac's net debt was $50 million, resulting in a net debt to adjusted EBITDA ratio of 0.4, indicating a strong balance sheet [15] Q&A Session Summary Question: Customer reactions to tariffs and macro uncertainty - Management noted that while customers are cautious, there have not been significant project cancellations, and underlying investment needs remain [25][26] Question: Revenue pull-forward in anticipation of tariffs - Management indicated there was some minor buying in anticipation of pricing actions, but nothing significant was observed [27] Question: Details on restructuring actions and anticipated cost savings - The restructuring was a response to global uncertainty, with a focus on automation and process standardization to improve efficiency [29][30] Question: Impact of pricing actions on revenue - Pricing actions taken in March and May began to show effects in Q3, with more significant impacts expected in Q4 [36] Question: North American performance drivers - Management highlighted strong performance in aerospace and other diversified end markets as key drivers of growth [38] Question: Outlook for the wind business amid renewable energy credit concerns - Management remains optimistic about the wind market, noting ongoing projects and favorable demand profiles [40] Question: M&A appetite in the current environment - Management confirmed continued focus on M&A as part of growth strategy, with active engagement in discussions with potential sellers [42] Question: Net impact of tariffs expected in Q4 and fiscal 2026 - Management aims to remain price cost neutral despite tariff impacts, with ongoing adjustments to pricing strategies [49] Question: DTA sales performance and guidance - Management expects DTA to come in slightly below original revenue guidance but noted strong order growth and successful cross-selling efforts [51][52] Question: Scalability of the new innovation lab - Management expressed excitement about the new lab's capabilities, which are expected to significantly reduce time to market for new products [60][61]

Financial Data and Key Metrics Changes - Enerpac's revenue increased by 6% year-over-year to $159 million in Q3 2025, marking record revenue since the company's relaunch in 2019 [5][7] - Organic growth, adjusted for foreign exchange and the acquisition of DTA, was 2% [7] - Adjusted EBITDA increased by 3.4%, with a margin decline of 50 basis points year-over-year to 25.9% [13] - Adjusted earnings per share rose by 9% to $0.51, driven by higher earnings and a lower effective tax rate [14] Business Line Data and Key Metrics Changes - The IT and S business saw a 1.5% organic revenue increase year-over-year, with product sales growing by 1% and services by 3% [7][8] - Cortland Biomedical reported a 19% growth, driven by strong performance in diagnostics, bioprocessing, and robotic surgery [8] - The Americas region experienced high single-digit organic growth, particularly in aerospace and infrastructure sectors [9] Market Data and Key Metrics Changes - The APAC region achieved mid single-digit growth, with notable strength in heavy lifting technology and major rail projects in Thailand, Japan, and The Philippines [10] - The EMEA region faced a high single-digit decline, primarily due to a drop in the heavy lifting technology business, although infrastructure and defense markets showed strength [11] Company Strategy and Development Direction - The company is focused on advancing its innovation strategy and has invested in a new innovation lab to enhance R&D capabilities [21] - Enerpac aims to remain price cost neutral amid tariff impacts and is actively managing expenses to align with market conditions [19][20] - The acquisition of DTA is expected to enhance Enerpac's product offerings and operational capabilities, with strong order growth anticipated [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed caution entering Q4 due to economic and geopolitical uncertainties but remains confident in outperforming industrial peers [6] - The company is monitoring customer reactions to tariffs and macroeconomic conditions, noting no significant project cancellations [28][29] - Future revenue guidance for fiscal 2025 remains at $610 million to $625 million, with expectations to deliver towards the lower half of the range [14] Other Important Information - Gross profit margin declined by 140 basis points year-over-year to 50.4%, attributed to service project mix and the inclusion of DTA [11][12] - Net debt stood at $50 million, with a net debt to adjusted EBITDA ratio of 0.4, indicating a strong balance sheet [15] - The company repurchased approximately 330,000 shares for $14 million during the quarter [16] Q&A Session Summary Question: Customer reactions to tariffs and macro uncertainty - Management noted that while customers are cautious, there have been no significant project cancellations, and underlying investment needs remain [28][29] Question: Revenue pull-forward in anticipation of tariffs - Management indicated there was some minor buying activity but nothing significant [30] Question: Details on restructuring actions and anticipated cost savings - Restructuring included severance and a noncash lease impairment charge, aimed at improving efficiency and cost structure [32][33] Question: Impact of pricing actions taken - Pricing actions were implemented in March and May, with expected positive impacts in the upcoming quarter [39] Question: North American performance drivers - Management highlighted diversified end markets, with aerospace and infrastructure contributing to high single-digit growth [40][41] Question: Outlook for the wind market - Management remains optimistic about the wind market, noting ongoing projects and favorable demand profiles [43][44] Question: M&A appetite in the current environment - Management confirmed continued focus on M&A as part of growth strategy, with active engagement in discussions [46][47] Question: Tariff impact on DTA's cross-selling ability - Management acknowledged that DTA products would be subject to tariffs but noted strong demand from US customers [57][58] Question: Context around the new innovation lab - The new lab is expected to significantly reduce time to market for new products, enhancing overall innovation capabilities [66][67]

Financial Performance - Q3 FY25 - Enerpac Tool Group's net sales for Q3 FY25 were $159 million, a 5.5% increase compared to $150 million in Q3 FY24[5] - Organic growth for Enerpac Tool Group was 2.0% in Q3 FY25[5] - Industrial Tools & Service (IT&S) net sales were $153 million in Q3 FY25, up 5.1% from $146 million in Q3 FY24, with organic growth of 1.5%[5] - Adjusted EBITDA was $41 million, a 3% increase year-over-year[12] - Adjusted EPS was $0.51, a 9% increase year-over-year[12] Segment Performance - Q3 FY25 - IT&S Product sales were $124 million, a 5.6% increase with 1.0% organic growth[5] - IT&S Service sales were $29 million, a 3.1% increase with 3.4% organic growth[5] - Other (Cortland Biomedical) sales were $5 million, an 18.7% increase[5] Profitability - Q3 FY25 - Gross margin was 50.4%, a decrease of 140 bps year-over-year[12] - Adjusted SG&A was 25.5% of sales, a decrease of 160 bps year-over-year[12] - Adjusted EBITDA margin was 25.9%, a decrease of 50 bps year-over-year[12] FY25 Guidance - The company expects to deliver towards the lower half of the range on Sales, Adjusted EBITDA, and Free Cash Flow[14] - Net sales are projected to be $610 million to $625 million, with 0-2% organic growth and 3-6% total growth[15] - Adjusted EBITDA is projected to be $150 million to $160 million[15] - Free cash flow is projected to be $85 million to $95 million[15]