Financial Performance - Consolidated net sales for Q3 fiscal 2025 were $158.7 million, a 5.5% increase from $150.4 million in the prior year[6] - Organic revenue growth was 2%, with IT&S organic growth of 1.5% and 18.7% growth at Cortland Biomedical[6] - Net earnings for Q3 were $22.0 million, compared to $22.6 million in the same period last year, with diluted EPS remaining at $0.41[9] - Adjusted EBITDA for Q3 was $41.0 million, up from $39.7 million year-over-year, with an adjusted EBITDA margin of 25.9%[9] - The company expects full-year net sales guidance of $610 million to $625 million, representing growth of 3% to 6%[13] - Net sales for the three months ended May 31, 2025, increased to $158,661 million, up from $150,389 million in the same period of 2024, representing a growth of 7.5%[25] - Gross profit for the nine months ended May 31, 2025, was $227,985 million, compared to $223,608 million for the same period in 2024, reflecting a slight increase of 1.7%[25] - Operating profit for the three months ended May 31, 2025, was $31,681 million, down from $33,363 million in the prior year, indicating a decrease of 5.0%[25] - Net earnings from continuing operations for the nine months ended May 31, 2025, were $64,668 million, compared to $58,798 million in 2024, showing an increase of 10.0%[25] - The diluted earnings per share from continuing operations for the three months ended May 31, 2025, was $0.41, consistent with the prior year[25] - The company experienced a year-over-year net sales growth of 3.9% for the fiscal year 2025 compared to fiscal year 2024[28] Cash Flow and Capital Management - Cash generated from operating activities for the first nine months of fiscal 2025 was $56.0 million, an increase of approximately $19 million from the prior year[11] - The cash balance as of May 31, 2025, was $140.5 million, up from $132.4 million a year earlier[12] - The net debt to adjusted EBITDA ratio improved to 0.4x as of May 31, 2025, down from 0.5x in the prior year[12] - Cash provided by operating activities for continuing operations was $56,030 million for the nine months ended May 31, 2025, compared to $39,544 million in 2024, an increase of 41.5%[27] - Cash used in financing activities for the nine months ended May 31, 2025, was $39,971 million, down from $51,404 million in the same period of 2024[27] - The company reported a net decrease in cash and cash equivalents of $26,588 million for the nine months ended May 31, 2025, compared to a decrease of $22,053 million in 2024[27] - Free Cash Flow is projected to be between $85 million and $95 million[39] Shareholder Actions - The company repurchased approximately 330,000 shares for a total of $14.0 million in Q3[12] Operational Developments - The company completed its relocation to a new headquarters in downtown Milwaukee, enhancing its R&D capabilities[14] - Capital expenditures for the nine months ended May 31, 2025, were $16,360 million, significantly higher than $4,970 million in the same period of 2024[27] - Capital expenditures are anticipated to be between $19 million and $24 million[39] Adjusted Financial Metrics - Adjusted operating profit for Enerpac Tool was $32,439 million, showing a decrease from $37,000 million in the previous quarter[29] - EBITDA from continuing operations was $31,097 million, compared to $36,035 million in the prior quarter, indicating a decline[30] - Adjusted EBITDA reached $34,874 million, down from $39,672 million in the previous quarter[30] - The adjusted operating profit margin for the Industrial Tools & Services segment was 28.1%, slightly down from 29.9% in the previous quarter[29] - Adjusted net earnings from continuing operations for FY2024 totaled $94.6 million, with adjusted diluted earnings per share at $1.72[35] Future Outlook - The company anticipates continued market expansion and product development in FY2025, with a focus on enhancing operational efficiency[36] - Adjusted diluted earnings per share from continuing operations for Q1 FY2025 are projected at $0.40, reflecting a stable outlook[35] - GAAP Operating Profit for Fiscal 2025 is projected between $135 million and $147 million[39] - Adjusted EBITDA is expected to range from $150 million to $160 million[39] - Cash provided by operating activities is estimated to be between $109 million and $114 million[39]

Core Insights - Enerpac Tool Group Corp. reported a total revenue growth of 6% and organic revenue growth of 2% for the third quarter of fiscal 2025, outperforming the soft industrial sector [3][5] - The company is maintaining its full-year guidance, expecting net sales between $610 million and $625 million, reflecting growth of 3% to 6% [12] Financial Performance - Consolidated net sales for the third quarter of fiscal 2025 were $158.7 million, up from $150.4 million in the prior-year period, marking a 5.5% increase [5][10] - Net earnings for the third quarter were $22.0 million, with diluted EPS remaining stable at $0.41 compared to the previous year [8][10] - Adjusted EBITDA for the third quarter was $41.0 million, an increase from $39.7 million year-over-year, with an adjusted EBITDA margin of 25.9% [8][10] Segment Performance - The Industrial Tools & Services (IT&S) segment saw a 5.1% increase in net sales, driven by organic growth and the acquisition of DTA [6] - Organic growth in IT&S product revenue was 1.0%, while service revenue increased by 3.4% [6] Cost Management - Selling, general and administrative expenses (SG&A) rose to $47.0 million, primarily due to restructuring charges of $5.9 million [7] - Adjusted SG&A expenses, excluding restructuring and M&A charges, decreased slightly to $40.4 million from $40.6 million in the prior year [7] Cash Flow and Capital Expenditures - The company generated $56.0 million in cash from operating activities in the first nine months of fiscal 2025, compared to $37.0 million in the same period last year [9] - Capital expenditures for the first nine months were $16.4 million, significantly higher than $5.0 million in the prior year [9] Balance Sheet and Shareholder Returns - As of May 31, 2025, the company had a cash balance of $140.5 million and a debt balance of $190.9 million, resulting in a net debt to adjusted EBITDA ratio of 0.4x [11] - Approximately $14 million was returned to shareholders through share repurchases during the third quarter [10] Strategic Initiatives - The company completed its relocation to a new headquarters in downtown Milwaukee, enhancing its collaborative environment and R&D capabilities [13]

Financial Performance - Net sales for the three months ended February 28, 2025, were $145.528 million, an increase of 5.9% compared to $138.437 million for the same period in 2024[13] - Gross profit for the six months ended February 28, 2025, was $148.083 million, up from $145.725 million in the prior year, reflecting a gross margin improvement[13] - Operating profit for the three months ended February 28, 2025, was $30.820 million, representing a 4.4% increase from $29.521 million in the same quarter of 2024[13] - Net earnings for the three months ended February 28, 2025, were $20.901 million, compared to $17.817 million for the same period in 2024, marking a 17.5% increase[14] - Earnings per share from continuing operations for the six months ended February 28, 2025, were $0.78, up from $0.67 in the same period of 2024[13] - Net earnings for the six months ended February 28, 2025, increased to $42,624 thousand, up from $35,555 thousand for the same period in 2024, representing a growth of 19%[20] - Total revenues for the six months ended February 28, 2025, were $290,724 thousand, an increase from $280,406 thousand in the prior year, marking a growth of 4%[30] - The basic earnings per share from continuing operations for the three months ended February 28, 2025, was $0.38, an increase from $0.33 for the same period in 2024[65] Assets and Liabilities - Total current assets decreased to $349.399 million as of February 28, 2025, from $372.258 million as of August 31, 2024[17] - Total liabilities decreased to $370.649 million as of February 28, 2025, compared to $385.349 million as of August 31, 2024[17] - As of February 28, 2025, the Company recorded long-term debt of $187.1 million, down from $189.5 million as of August 31, 2024[52] - The total shareholders' equity as of February 28, 2025, was $405.978 million, reflecting an increase from $391.979 million at the end of August 31, 2024[66] Cash Flow and Investments - Cash provided by operating activities from continuing operations was $16,108 thousand, compared to $12,065 thousand for the same period last year, reflecting a 33% increase[20] - Cash used in investing activities for the six months ended February 28, 2025, totaled $38,713 thousand, compared to $5,687 thousand in the prior year, reflecting a substantial increase[20] - The ending balance of cash and cash equivalents as of February 28, 2025, was $119,509 thousand, down from $153,693 thousand at the end of February 2024, representing a decrease of 22%[20] Acquisitions and Restructuring - The Company acquired DTA The Smart Move, S.A. for an initial purchase price of $27.2 million, with a potential earn-out of €12.0 million based on financial objectives, totaling a maximum purchase price of €36.0 million[46] - The acquisition of DTA generated net sales of $3.2 million and $6.4 million for the three and six months ended February 28, 2025, reported within the IT&S segment[50] - The ASCEND transformation program incurred total expenses of approximately $2.0 million and $5.6 million for the three and six months ended February 29, 2024, respectively, with total program costs reaching $74.7 million, including $18.6 million in restructuring charges[41] - The company recognized restructuring charges of $398,000 in the three months ended February 29, 2024, with no restructuring charges reported in the same period of 2025[13] Risk Factors - The company continues to face risks related to supply chain issues and geopolitical instability, which may impact future performance[9] Tax and Compliance - The effective income tax rate for the three months ended February 28, 2025, was 24.5%, a decrease from 29.3% in the prior-year period, primarily due to favorable tax impacts from stock compensation[69] - The Company was in compliance with all financial covenants under the credit facility at February 28, 2025, including a net leverage ratio not exceeding 3.75 to 1.00[54] Segment Performance - IT&S segment net sales for the three months ended February 28, 2025, were $140,716,000, an increase from $134,822,000 for the same period in the prior year, representing a growth of approximately 4.4%[71] - Operating profit for the IT&S segment for the six months ended February 29, 2024, was $76,728,000, compared to $72,900,000 for the same period in the prior year, indicating an increase of about 5.0%[71] Share Repurchase - The Company has repurchased a total of 30,411,708 shares for $853.4 million since the inception of its share repurchase program in fiscal 2012[63] - In the six months ended February 29, 2024, the Company repurchased and retired 1,094,231 shares for $30.1 million[64] - The maximum number of shares that may yet be purchased under the current repurchase program is 2,387,522 shares[64]

Financial Data and Key Metrics Changes - Organic sales grew 5% year-over-year, reflecting above-market growth despite a soft industrial sector [5][6] - EBITDA margins were 23.2% for the quarter, slightly down from the prior year due to mix impact, but still at top-tier levels [6][16] - Adjusted earnings per share increased to $0.39 from $0.36, an 8% increase year-over-year [16] Business Line Data and Key Metrics Changes - IT&S business revenue increased 4% organically year-over-year, with product sales up 4% and services up 3% [9] - Cortland Biomedical reported a growth of 33% in the other segment, rebounding from previous shipment delays [10] - Gross profit margins declined 110 basis points year-over-year to 50.5%, impacted by a higher growth in HLT business with lower margins [13][14] Market Data and Key Metrics Changes - High single-digit growth was achieved in the Americas, driven by share gains from the Enerpac Commercial Excellence (ECX) program [10][11] - APAC region also saw high single-digit growth, particularly in India and Singapore, while Australia faced challenges [12] - EMEA region experienced a low single-digit decline in sales, breaking a two-year growth pattern, but still outperforming the market [12] Company Strategy and Development Direction - The company maintains its full-year fiscal 2025 guidance, focusing on global brand leadership and customer-driven innovation [6][32] - The ECX program is being expanded to improve commercial effectiveness and sales funnel management [11][52] - The integration of DTA into the HLT business is progressing well, with cross-selling opportunities being leveraged [28][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the power generation and refinery sectors, with positive sentiment from customers [20][21] - The company remains cautious about macroeconomic uncertainties and potential tariff impacts on inflation and growth [32][56] - Infrastructure investments are expected to increase, particularly in Europe, with a favorable outlook from government spending packages [25][26] Other Important Information - The company repurchased approximately 220,000 shares totaling $10.2 million during the quarter [19] - Cash flow from operations was $16 million, up from $7 million in the previous year, with free cash flow slightly up year-over-year [18] Q&A Session Summary Question: Can you provide more color regarding the mix shift toward HLT and expectations for the back-half of the year? - Management noted strong growth in HLT, particularly in the U.S. and Europe, impacting gross margins due to the mix shift [36][37][38] Question: How is the DTA integration going relative to your expectations? - The DTA integration is progressing well, with positive customer response and order activity [40][41] Question: Can you provide more detail on the commercial excellence program and its impact on the Americas? - The ECX program has improved sales funnel management and visibility, contributing to broad-based growth in the Americas [48][52] Question: What are your thoughts on the potential impact of tariffs? - The company is in a favorable position regarding direct impacts from tariffs, with minimal imports from affected regions [55][56] Question: Can you provide updates on the M&A pipeline? - The M&A pipeline remains robust with active conversations and a focus on high-quality, complementary businesses [83][86]

Financial Data and Key Metrics Changes - Organic sales grew by 5% year-over-year, reflecting above-market growth despite a soft industrial sector [5][6] - EBITDA margins were reported at 23.2%, slightly down from the previous year due to mix impacts, but still at top-tier levels [6][16] - Adjusted earnings per share increased to $0.39, an 8% rise compared to $0.36 in the prior year [16] - Net debt stood at $73 million, resulting in a net debt to adjusted EBITDA ratio of 0.5% [17] Business Line Data and Key Metrics Changes - IT&S business revenue increased by 4% organically, with product sales up by 4% and services by 3% [9] - Cortland Biomedical reported a significant growth of 33% in the other segment, rebounding from previous shipment delays [10] - Gross profit margins declined by 110 basis points year-over-year to 50.5%, influenced by a higher growth in the HLT business, which has lower gross margins [13][14] Market Data and Key Metrics Changes - High single-digit growth was achieved in the Americas, attributed to share gains from the Enerpac Commercial Excellence (ECX) program [11] - The APAC region also experienced high single-digit growth, with notable industrial and construction growth in India and Singapore [12] - The EMEA region saw a low single-digit decline in sales, breaking a two-year growth pattern, but still outperforming the market under macro pressures [12] Company Strategy and Development Direction - The company is maintaining its full-year fiscal 2025 guidance, focusing on global brand leadership, targeted growth strategies, and customer-driven innovation [6][32] - The ECX program is being expanded to improve commercial effectiveness and sales funnel management [11][52] - The integration of DTA into the HLT business is progressing well, with cross-selling opportunities being leveraged [28][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the nuclear business in the U.S. and positive sentiment in the refinery and petrochemical sectors [20][21] - There is cautious optimism regarding the wind market, with strong domestic performance and growth opportunities in Europe and Asia [24][25] - The company remains vigilant about macroeconomic uncertainties and potential tariff impacts, but feels well-positioned to adapt [32][56] Other Important Information - Cash flow from operations was $16 million for the first half of fiscal 2025, compared to $7 million in the previous year [18] - The company repurchased approximately 220,000 shares of common stock totaling $10.2 million [19] - Enerpac's new headquarters in downtown Milwaukee is set to open soon, designed to meet the company's specific needs [32][90] Q&A Session Summary Question: Can you provide more color regarding the mix shift toward HLT and expectations for the back-half of the year? - Management noted strong growth in HLT, particularly in the U.S. and Europe, impacting gross margins due to the mix shift [36][37][38] Question: How is the DTA integration going relative to your expectations? - The DTA integration is progressing well, with positive customer responses and order activity [40][41] Question: Can you provide more detail on the commercial excellence program and its impact on the Americas? - The ECX program has improved sales funnel management and visibility, contributing to broad-based growth in the Americas [48][52] Question: What are your thoughts on the potential impact of tariffs? - The company is in a favorable position regarding direct impacts from tariffs, with negligible imports from Canada and Mexico [56][58] Question: Can you provide updates on the M&A pipeline? - The M&A pipeline remains robust with active conversations and a focus on high-quality, complementary businesses [84][86]

Financial Performance - Q2 FY25 - Enerpac Tool Group's net sales reached $146 million, reflecting a 5.1% increase compared to Q2 FY24[5] - Organic sales growth for Enerpac Tool Group was 50%[5] - Adjusted EBITDA was $34 million, with an adjusted EBITDA margin of 232%[11] - Adjusted EPS stood at $039, an 8% increase year-over-year[11] Segment Performance - Q2 FY25 - Industrial Tools & Service (IT&S) net sales were $141 million, a 4% increase from $135 million in Q2 FY24[5] - IT&S Product sales increased by 5% to $114 million[5] - IT&S Service sales increased by 2% to $27 million[5] - Other sales (Cortland Biomedical) increased by 331% to $5 million[5] Liquidity and Capital Allocation - The company maintains strong liquidity with $120 million in cash and equivalents[12] - Undrawn revolver capacity is $399 million, resulting in total liquidity of $518 million[12] - Total debt is $192 million, with a net debt to adjusted EBITDA ratio of 05x[12] FY25 Guidance - The company projects net sales between $610 million and $625 million, with organic growth of approximately 0-2% and total growth of approximately 3-6%[27] - Adjusted EBITDA is expected to be in the range of $150 million to $160 million[27] - Free cash flow is projected to be between $85 million and $95 million[27]

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].