Core Points - Enpro Inc. has completed the acquisition of AlpHa Measurement Solutions, which was previously announced [1] Company Summary - The acquisition is part of Enpro Inc.'s strategy to enhance its capabilities and expand its market presence [1]

Core Insights - Ingram Micro (INGM) is currently viewed as a more attractive investment compared to Enpro (NPO) based on valuation metrics and earnings outlook [3][7] Valuation Metrics - INGM has a forward P/E ratio of 8.00, significantly lower than NPO's forward P/E of 30.41, indicating that INGM may be undervalued [5] - The PEG ratio for INGM is 0.89, while NPO's PEG ratio stands at 2.34, suggesting that INGM offers better value relative to its expected earnings growth [5] - INGM's P/B ratio is 1.3, compared to NPO's P/B of 3.29, further supporting the notion that INGM is a more favorable investment option [6] Analyst Outlook - INGM has a Zacks Rank of 2 (Buy), reflecting an improving earnings estimate revision activity, while NPO holds a Zacks Rank of 3 (Hold) [3][7] - The positive earnings outlook for INGM enhances its attractiveness as a value investment [7]

Financial Performance - Net sales for Q3 2025 were $286.6 million, a 9.9% increase from $260.9 million in Q3 2024[133] - Net income for Q3 2025 was $21.6 million, compared to $19.8 million in Q3 2024, reflecting a 9.1% growth[133] - Adjusted diluted earnings per share for Q3 2025 increased to $1.99, up from $1.74 in Q3 2024, representing a 14.4% rise[133] - Total adjusted segment EBITDA for Q3 2025 was $79.2 million, a 6.6% increase from $74.3 million in Q3 2024[135] - Adjusted Segment EBITDA for the third quarter of 2025 was $57.4 million, a 4.2% increase from $55.1 million in the same quarter of 2024, with a margin of 32.2%[140] - Adjusted net income for the quarter ended September 30, 2025, was $42.4 million, or $1.99 per diluted share, compared to $36.7 million, or $1.74 per diluted share for the same period in 2024[181] - For the nine months ended September 30, 2025, adjusted net income was $125.8 million, or $5.92 per diluted share, compared to $113.7 million, or $5.39 per diluted share for the same period in 2024[182] - Adjusted EBITDA for Q3 2025 reached $69.3 million, up 8.1% from $64.1 million in Q3 2024[183] - Adjusted EBITDA for the nine months ended September 30, 2025, was $208.3 million, an increase of 5.9% from $196.6 million in the same period of 2024[183] Segment Performance - The Sealing Technologies segment reported sales of $178.2 million in Q3 2025, up from $168.6 million in Q3 2024, a growth of 9.5%[135] - The Advanced Surface Technologies segment achieved sales of $108.5 million in Q3 2025, compared to $92.5 million in Q3 2024, marking a 17.3% increase[135] - Sealing Technologies segment sales increased to $178.2 million, up 5.7% from $168.6 million year-over-year, driven by strong demand in aerospace and food and pharmaceuticals[139] - Advanced Surface Technologies segment sales rose 17.3% to $108.5 million, compared to $92.5 million in the prior year, fueled by growth in precision cleaning solutions and semiconductor tools[141] Cash Flow and Backlog - Operating activities generated $138.5 million in cash for the first nine months of 2025, up from $103.5 million in the same period of 2024[159] - As of September 30, 2025, the backlog of remaining performance obligations was $249.4 million, with approximately 96% expected to be satisfied within one year[156] Acquisitions and Strategic Initiatives - Enpro acquired Advanced Micro Instruments, Inc. on January 29, 2024, enhancing its capabilities in application-specific analyzers and sensing technologies[131] - Subsequent to September 30, 2025, Enpro announced acquisitions of Overlook Industries, Inc. and AlpHa Measurement Holdings, LLC for approximately $280 million in cash[132] - Enpro's strategic initiatives have focused on high-margin, proprietary industrial technology-related products with strong cash flow and recurring revenue[126] Debt and Financing - Enpro Inc. completed the offering of $450 million in aggregate principal amount of 6.125% Senior Notes due 2033, with interest payable semi-annually starting December 1, 2025[169] - The maximum consolidated total net leverage ratio is set at 4.0 to 1.0, which can be increased to 4.5 to 1.0 for four quarters following a significant acquisition[166] - The company has a minimum consolidated interest coverage ratio requirement of at least 2.5 to 1.0[166] - The company applied a portion of the net proceeds from the Senior Notes to redeem all outstanding 5.75% Senior Notes due 2026, totaling $350 million[172] Tax and Expenses - The effective tax rate for the first nine months of 2025 was 27.4%, compared to 21.0% in the same period of 2024, primarily due to higher tax rates in foreign jurisdictions[154] - Interest expense decreased to $6.4 million in Q3 2025 from $9.0 million in Q3 2024, reflecting a reduction of 29%[183] - Income tax expense increased significantly to $10.5 million in Q3 2025, compared to $4.2 million in Q3 2024, marking a 150% rise[183] - The company recorded a restructuring and impairment expense of $0.4 million in Q3 2025, down from $4.5 million in Q3 2024[183] Foreign Exchange and Commodity Risks - The company has a notional amount of $103.7 million in foreign exchange contracts as of December 31, 2024, related to a 95 million Euro exposure[185] - Cross-currency swap agreements with a notional amount of $100 million were established to manage foreign currency risk, maturing on October 15, 2026[187] - Commodity price fluctuations for materials like steel and copper could negatively impact results, with no hedging strategies in place for commodity risk[189] - The company aims to control foreign currency risks through normal operating activities and derivative instruments[185] Shareholder Actions - A share repurchase program was authorized for up to $50.0 million, which may be executed in open market and privately negotiated transactions[173]

Financial Data and Key Metrics Changes - Enpro reported organic sales growth of nearly 10% during the third quarter, with total sales of $286.6 million, an increase of nearly 10% year-over-year [4][15] - Adjusted EBITDA for the third quarter was $69.3 million, an increase of 8% compared to the prior year, with an adjusted EBITDA margin of 24.2%, slightly down from last year [15][24] - Adjusted diluted earnings per share increased more than 14% to $1.99, driven by improved adjusted EBITDA and lower net interest expense [15][24] Business Line Data and Key Metrics Changes - In sealing technologies, sales increased 5.7% to $178.2 million, driven by strength in aerospace and food and biopharma applications, with adjusted segment EBITDA margin remaining strong at over 32% [8][16] - Advanced surface technologies (AST) segment sales increased more than 17% to $108.5 million, with adjusted segment EBITDA margin at 20.1% [8][18] Market Data and Key Metrics Changes - The sealing technologies segment saw firm aftermarket demand in general industrial and commercial vehicle markets, while the commercial vehicle OEM market remained weak [16][25] - In AST, demand for capital equipment was choppy, with some strength observed in lower margin semiconductor tools and assemblies [18][21] Company Strategy and Development Direction - Enpro is advancing its Enpro 3.0 strategy with acquisitions of Overlook Industries and Alpha Measurement Solutions, expected to enhance capabilities in critical growth areas [5][6] - The company aims to unlock compounding features of its business model and drive value creation, with expected mid-single digit revenue growth in sealing technologies and high single to low double digit growth in AST over time [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sealing segment's ability to generate consistent profitability and expects continued strong performance in the fourth quarter, particularly in aerospace and food and pharma markets [12][25] - The AST segment is expected to experience a sequential deceleration in sales growth in the fourth quarter due to ongoing choppiness in semiconductor equipment spending [26] Other Important Information - Enpro's balance sheet remains strong, with a net leverage ratio of 1.2 times trailing 12-month adjusted EBITDA, expected to rise to around 2 times following the completion of recent acquisitions [22][23] - The company generated $105 million in free cash flow year to date, an increase from $83 million last year, and plans to continue investing in growth opportunities while returning capital to shareholders [23][24] Q&A Session Summary Question: Can you provide details on the acquisitions? - The combined revenue from both acquisitions is expected to be about $60 million in 2026, with high single to low double digit growth rates anticipated [30][31] Question: What is the expected revenue contribution from the acquisitions in Q4? - Approximately $10 million in revenue and $3 million in EBITDA are included in the Q4 guidance from both acquisitions [32] Question: When can we expect better incrementals in the AST business? - Incrementals are expected to normalize as investments begin to pay off, with historical incrementals around 40% [34][37] Question: How do you view the compositional analysis market? - The compositional analysis space is seen as a significant opportunity for innovation and growth, with expectations for further M&A opportunities in this area [40][41] Question: What is the outlook for the nuclear and commercial space markets? - The company remains optimistic about the nuclear market's development and is well-positioned to participate as it grows [44][50]

Core Viewpoint - Enpro (NPO) reported quarterly earnings of $1.99 per share, exceeding the Zacks Consensus Estimate of $1.93 per share, and showing an increase from $1.74 per share a year ago, indicating a positive earnings surprise of +3.11% [1] Financial Performance - Enpro's revenues for the quarter ended September 2025 were $286.6 million, surpassing the Zacks Consensus Estimate by 3.54% and up from $260.9 million year-over-year [2] - The company has exceeded consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Stock Performance - Enpro shares have appreciated approximately 35.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.5% [3] Future Outlook - The company's earnings outlook will be crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.83 on revenues of $274.95 million, and for the current fiscal year, it is $7.69 on revenues of $1.11 billion [7] Industry Context - The Technology Services industry, to which Enpro belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Third Quarter 2025 Earnings Review November 4, 2025 Forward-Looking Statements; Non-GAAP Measures Statements in this presentation that express a belief, expectation, or intention, including the 2025 guidance and other statements that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks a ...

Financial Performance - Sales for the third quarter of 2025 were $286.6 million, reflecting a 9.9% increase compared to the prior year[5] - Net income for the quarter was $21.6 million, up 9.1% from $19.8 million in the previous year[9] - Adjusted EBITDA for the quarter was $69.3 million, representing an 8.1% year-over-year increase, with an adjusted EBITDA margin of 24.2%[10] - Adjusted diluted earnings per share for the quarter were $1.99, a 14.4% increase from $1.74 in the prior year[9] - Operating income increased to $40.9 million in Q3 2025, compared to $34.1 million in Q3 2024, representing a 19.9% growth[39] - Net income for the nine months ended September 30, 2025, was $72.5 million, a 22.0% increase from $59.0 million in the same period of 2024[39] - Adjusted segment EBITDA for the quarter ended September 30, 2025, was $79.2 million, up 6.6% from $74.3 million in the same quarter of 2024[49] - Adjusted net income for the nine months ended September 30, 2025, was $125.8 million, compared to $113.7 million in the same period of 2024, reflecting a 10.5% increase[63] Sales Growth - Advanced Surface Technologies (AST) sales grew by 17.3%, driven by strong demand in precision cleaning solutions and certain semiconductor tools[5] - Sealing Technologies sales increased by 5.7%, supported by strong performance in aerospace and food and pharma applications[11] - Enpro's net sales for Q3 2025 were $286.6 million, a 9.9% increase from $260.9 million in Q3 2024[39] Cash Flow and Debt - Free cash flow for the nine months ended September 30, 2025, was $104.9 million, up from $82.8 million in the prior-year period[18] - The company ended the quarter with total debt of $445.2 million and cash and cash equivalents of $132.9 million, resulting in a net leverage ratio of 1.2x[20] - Enpro's cash and cash equivalents decreased to $132.9 million as of September 30, 2025, down from $236.3 million at the end of 2024[43] - The company reported a net cash provided by operating activities of $138.5 million for the nine months ended September 30, 2025, compared to $103.5 million in the same period of 2024[41] Guidance and Acquisitions - The company updated its full-year 2025 guidance, projecting revenue growth of 7%-8% and adjusted EBITDA in the range of $275 million to $280 million[24] - Enpro completed the acquisition of Overlook Industries on October 8, 2025, and expects to finalize the acquisition of AlpHa Measurement Solutions in the fourth quarter[3] - The company expects partial-quarter contributions from the acquisitions of Overlook and AlpHa, with the latter anticipated to close in Q4 2025[35] Expenses and Tax - The company incurred acquisition expenses of $2.7 million in Q3 2025, compared to $0.3 million in Q3 2024[55] - Interest expense of $6.4 million for Q3 2025, down from $9.0 million in Q3 2024, reflecting a decrease of 29.0%[49] - Income tax expense increased to $10.5 million in Q3 2025 from $4.2 million in Q3 2024, representing a 150% increase[67] - Restructuring and impairment expenses for the quarter ended September 30, 2025, were $0.2 million, significantly lower than $4.4 million in the same quarter of 2024[55] Asset and Liability Management - Total assets as of September 30, 2025, were $2,398.8 million, a decrease from $2,491.5 million at the end of 2024[43] - Enpro's total liabilities decreased to $877.7 million as of September 30, 2025, compared to $1,062.9 million at the end of 2024[43]

Core Points - Enpro Inc. will release its financial results for the third quarter of 2025 on November 4 at 6:30 a.m. Eastern Time, followed by a conference call at 8:30 a.m. to discuss the performance [1][5] - The conference call will be accessible via webcast and telephone, with details provided for participants [2] - Enpro is a leading industrial technology company involved in various sectors, including semiconductor, aerospace, and sustainable power generation [3][4] Financial Information - The third quarter 2025 financial results will be accompanied by a slide presentation available on the company's website [2] - Enpro has recently advanced its 3.0 strategy with agreements to acquire AlpHa Measurement Solutions and Overlook Industries, indicating growth and expansion plans [6] Company Overview - Enpro Inc. is headquartered in Charlotte, North Carolina, and is listed on the New York Stock Exchange under the symbol "NPO" [3] - The company focuses on critical applications across multiple end-markets, showcasing its diverse operational scope [3][4]

Core Points - Enpro Inc. will release its financial results for the third quarter of 2025 on November 4 at 6:30 a.m. Eastern Time, followed by a conference call at 8:30 a.m. to discuss the performance [1][5][8] - The conference call will be accessible via webcast and telephone, with details provided for participants [2] - Enpro is a leading industrial technology company involved in various sectors, including semiconductor, aerospace, and sustainable power generation [3][4] Financial Information - The third quarter 2025 financial results will be accompanied by a slide presentation available on the company's website [2] - Enpro has recently advanced its 3.0 strategy with agreements to acquire AlpHa Measurement Solutions and Overlook Industries, indicating growth and expansion plans [6] Investor Relations - Investor contacts for Enpro include James Gentile, Vice President of Investor Relations, and Jenny Yee, Corporate Access Specialist, with provided contact information for inquiries [4][10]

Core Insights - Enpro, Inc. has announced advancements to its 3.0 strategy through agreements to acquire AlpHa Measurement Solutions and Overlook Industries [1] Group 1 - The acquisitions are part of Enpro's strategic plan to enhance its capabilities and market position [1] - AlpHa Measurement Solutions and Overlook Industries are expected to contribute to Enpro's growth and operational efficiency [1]