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EnPro Industries(NPO) - 2024 Q4 - Earnings Call Presentation
2025-02-19 19:06
Investor Overview February-March 2025 February-March 2025 Investor Presentation 2 Enpro Inc. (NYSE: NPO) | Attractive Portfolio of High-Margin Businesses Company Overview Headquarters Charlotte, NC Principal Manufacturing Facilities 15 Global Employees ~3,500 Financial Overview Market-Cap1 $4.0B LTM Revenue3 $1.0B LTM Adj. EBITDA (Margin)2,3 $255M (24.3%) 2024 YTD Aftermarket Rev. % 54% Dividend Yield1 0.6% 2024 Revenue Contribution Sales by Segment Sales by Channel Sales by Geography Sales by Market Highly ...
EnPro Industries(NPO) - 2024 Q4 - Earnings Call Transcript
2025-02-19 18:47
Financial Data and Key Metrics Changes - EnPro Industries, Inc. reported approximately $255 million in adjusted EBITDA for 2024, up 7% year over year, with adjusted EBITDA margins of 24.3%, an increase of 180 basis points from the prior year [15][32] - Fourth-quarter sales reached $258.4 million, a 3.7% increase, with organic sales rising 1.2% [23] - Adjusted diluted earnings per share increased 32% to $1.57 compared to the prior year period [25] Business Line Data and Key Metrics Changes - Sealing Technologies segment sales were $163 million in Q4, an 11% increase from the prior year, with adjusted segment EBITDA margin expanding almost 500 basis points to 31% [25][26] - Advanced Surface Technologies (AST) sales decreased 6.4% year over year to $95.6 million, with adjusted segment EBITDA margin of 22.1%, flat year over year [27][28] Market Data and Key Metrics Changes - AST revenue ended the year down roughly 10% due to weakness in semiconductor capital equipment spending, although there was strength in solutions for leading-edge applications [14] - The company expects continued weakness in semiconductor capital equipment spending throughout 2025, impacting overall market growth [38] Company Strategy and Development Direction - EnPro 3.0% is the next phase of the company's value creation journey, focusing on profitable growth and operational improvements [16][19] - The company aims for mid to high single-digit top-line growth over the long term, with specific targets of mid-single-digit growth in sealing and high single-digit growth in AST [20][36] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging, particularly in semiconductor capital equipment, but expressed confidence in the company's ability to navigate these challenges [10][48] - The company anticipates a choppy market in 2025 but expects to achieve growth through strategic investments and operational improvements [38][86] Other Important Information - The company generated $130 million in free cash flow in 2024 and maintained a strong balance sheet with a net leverage ratio of 1.6 times [32][34] - EnPro Industries, Inc. has committed to returning capital to shareholders, increasing the quarterly dividend to $0.31 per share [34] Q&A Session Summary Question: Semiconductor growth expectations - Management indicated that growth in AST is primarily driven by outgrowth and leading-edge applications, with expectations for a choppy market in 2025 [48][50] Question: AST sequential performance - Management expects some choppiness in the first half of 2025 but anticipates a stronger second half for AST [52][54] Question: Tariff risks and pricing actions - Management stated that most sourcing is done regionally, with minimal exposure to tariffs, and plans to implement pricing actions to mitigate any impacts [56][58] Question: AST margins and certification process - Management noted that despite higher costs associated with certification, favorable mix and strong volume contributed to improved margins in AST [66][70] Question: CapEx expectations - Management confirmed that higher CapEx in 2025 is due to projects being pushed from 2024, with confidence in executing these investments [73][76]
EnPro Industries(NPO) - 2024 Q4 - Annual Results
2025-02-19 12:09
Financial Performance - Fourth quarter 2024 sales reached $258.4 million, a 3.7% increase year-over-year, while full year sales totaled $1.05 billion, down 1.0%[4][15] - GAAP net income from continuing operations for Q4 2024 was $13.9 million, compared to a loss of $4.9 million in the prior year, and full year net income increased to $72.9 million from $10.8 million[4][17] - Adjusted EBITDA for Q4 2024 was $58.2 million, a 24.1% increase from $46.9 million last year, with full year adjusted EBITDA rising 7.1% to $254.8 million[4][10][18] - Diluted earnings per share from continuing operations for Q4 2024 improved to $0.66, compared to a diluted loss per share of $0.23 in the prior year, while full year diluted earnings per share increased to $3.45 from $0.51[4][17] - Net income attributable to Enpro Inc. for 2024 was $72.9 million, up from $22.2 million in 2023, marking a 228.8% increase[33] - Basic earnings per share for continuing operations were $3.48 in 2024, compared to $0.52 in 2023, indicating a substantial increase[33] - Adjusted income from continuing operations attributable to Enpro Inc. for Q4 2024 was $33.2 million, or $1.57 per diluted share, compared to $25.0 million, or $1.19 per diluted share in Q4 2023[48] - Adjusted income from continuing operations attributable to Enpro Inc. was $146.9 million for 2024, with diluted earnings per share of $6.96, up from $137.0 million and $6.54 in 2023[49] Sales and Segment Performance - Strong performance in Sealing Technologies contributed to Q4 sales growth, with a 10.9% increase in segment sales to $163.0 million[12] - Advanced Surface Technologies segment sales decreased by 6.4% in Q4 2024, totaling $95.6 million, reflecting ongoing challenges in semiconductor capital equipment spending[14][18] - Sales for Sealing Technologies increased to $163.0 million in Q4 2024, up 10.9% from $147.0 million in Q4 2023[39] - Advanced Surface Technologies reported sales of $95.6 million in Q4 2024, a decrease of 6.4% from $102.1 million in Q4 2023[39] - Total sales for Enpro Inc. reached $258.4 million in Q4 2024, compared to $249.1 million in Q4 2023, reflecting a growth of 3.7%[39] Cash Flow and Financial Position - The company generated $162.9 million in cash flow from continuing operations in 2024, with free cash flow of $130.0 million after capital expenditures[19] - Enpro ended 2024 with cash of $236.3 million and $390 million available under its revolving credit facility, resulting in a net leverage ratio of approximately 1.6x[20] - Cash and cash equivalents decreased to $236.3 million in 2024 from $369.8 million in 2023, a decline of 36.0%[37] - The company reported a net cash provided by operating activities of $162.9 million for 2024, down from $208.4 million in 2023[35] - Enpro's total liabilities decreased to $1,062.9 million in 2024 from $1,071.9 million in 2023, a reduction of 0.8%[37] Guidance and Future Outlook - The company introduced 2025 guidance, expecting revenue growth in the low to mid-single-digit range, adjusted EBITDA between $262 million and $277 million, and adjusted diluted earnings per share of $7.00 to $7.70[4][22] - The company is focused on expanding its presence in semiconductor and life sciences markets, with ongoing investments in new technologies and facilities[29] Operational Efficiency - Gross profit for the year ended December 31, 2024, was $444.8 million, compared to $426.8 million in 2023, reflecting a 4.7% increase[33] - Operating income for the year increased significantly to $142.3 million from $76.8 million in 2023, representing an 85.5% growth[33] - Corporate expenses for the year ended December 31, 2024, totaled $46.4 million, down from $51.1 million in 2023[42] - Adjusted EBITDA for the year ended December 31, 2024, was $254.8 million, an increase from $238.0 million in 2023, indicating a growth of approximately 7.2%[54] - Free cash flow for the year ended December 31, 2024, was $130.0 million, down from $174.1 million in 2023, reflecting a decrease of about 25.4%[55] Environmental and Acquisition Expenses - The company incurred acquisition expenses of $4.3 million in 2024, compared to $1.1 million in 2023, indicating increased investment in growth initiatives[49] - Environmental reserve adjustments amounted to $5.7 million in 2024, up from $2.9 million in 2023, highlighting a focus on environmental liabilities[54] Depreciation and Tax Management - Depreciation and amortization expense increased to $100.3 million in 2024 from $94.5 million in 2023, reflecting ongoing capital investments[54] - The effective tax rate used for adjusted income tax expense was normalized at 25.0%, providing a clearer view of the company's tax obligations[52]
Enpro (NPO) Lags Q3 Earnings and Revenue Estimates
ZACKS· 2024-11-05 13:51
Company Performance - Enpro (NPO) reported quarterly earnings of $1.74 per share, missing the Zacks Consensus Estimate of $1.93 per share, but showing an increase from $1.58 per share a year ago, resulting in an earnings surprise of -9.84% [1] - The company posted revenues of $260.9 million for the quarter ended September 2024, which was 1.14% below the Zacks Consensus Estimate and an increase from $250.7 million year-over-year [2] - Over the last four quarters, Enpro has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Market Context - Enpro shares have declined approximately 6.4% since the beginning of the year, contrasting with the S&P 500's gain of 19.8% [3] - The current consensus EPS estimate for the upcoming quarter is $1.82 on revenues of $265.9 million, and for the current fiscal year, it is $7.40 on revenues of $1.06 billion [7] - The Zacks Industry Rank indicates that the Technology Services sector is in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stocks in this category [8] Future Outlook - The sustainability of Enpro's stock price movement will largely depend on management's commentary during the earnings call and the revisions of earnings estimates in the near future [3][4] - The estimate revisions trend for Enpro is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market [6]
EnPro Industries(NPO) - 2024 Q3 - Quarterly Results
2024-11-05 12:16
Exhibit 99.1 News Release Enpro Reports Third Quarter 2024 Results Updates Guidance for Full Year 2024 Third Quarter 2024 Highlights (All results reflect comparisons to prior-year period, from continuing operations, unless otherwise noted) (*Non-GAAP measure. See the attached schedules for adjustments and reconciliations of historical measures to GAAP measures) • Sales of $260.9 million up 4.1%; organic sales up 0.9% • GAAP income from continuing operations attributable to Enpro Inc., net of tax of $19.8 mi ...
EnPro Industries(NPO) - 2024 Q2 - Earnings Call Transcript
2024-08-06 17:40
Financial Data and Key Metrics Changes - Sales for Q2 2024 were $271.9 million, a decrease of 1.8% compared to the prior year, with organic sales declining by 5% primarily due to lower results in the Advanced Surface Technologies (AST) segment [8][10] - Adjusted EBITDA for Q2 2024 was $74 million, an increase of 14% year-over-year, with an adjusted EBITDA margin of 27.2%, up 380 basis points [9][10] - Adjusted diluted earnings per share were $2.08, an increase of almost 14% year-over-year [10] Business Line Performance Changes - In the Sealing Technologies segment, sales were $184 million, an increase of over 4%, with adjusted segment EBITDA margin exceeding 35% [10][11] - The Advanced Surface Technologies segment saw sales of $88.1 million, down approximately 12% year-over-year, but adjusted segment EBITDA margins improved to 21.7%, up 160 basis points sequentially [7][13] Market Performance Changes - The semiconductor market remains soft, particularly for semiconductor capital equipment, but there are signs of recovery in certain areas [5][12] - Demand in food and pharma increased during Q2, although it remains choppy, especially in Europe [6] Company Strategy and Industry Competition - The company is focused on executing a multi-year strategy to drive growth in AST's attractive markets through capacity expansions and efficiency improvements [7][18] - The company continues to pursue strategic opportunities in adjacent markets that build upon core competencies [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Sealing Technologies segment's performance and outlook, citing strong profitability despite soft demand in some markets [4][19] - The company narrowed its full-year 2024 earnings guidance, now expecting total sales to be approximately flat compared to 2023, primarily due to the expected recovery in semiconductor capital equipment being delayed [16][18] Other Important Information - The balance sheet remains strong, with a net leverage ratio of approximately two times trailing 12-month adjusted EBITDA [14] - Free cash flow in the first half of 2024 was $35.5 million, down from $66.5 million last year, but the company expects free cash flow to exceed $100 million for the year [15] Q&A Session Summary Question: Sustainability of Sealing Margins - Management indicated that they expect to maintain pricing and have seen supply chain savings, with a shift in mix from OEM to aftermarket sales supporting margins [21][22] Question: Contribution of New Products - New products like Auto-Torq are contributing incrementally but are not yet material [23][24] Question: Trends in AST - Management noted that the cleaning business is performing well, with gradual recovery in coatings and refurbishment solutions [33] Question: Capital Expenditures - The expected capital expenditures of approximately $60 million may see some spending pushed into 2025 due to timing and supply chain issues [42]
Enpro (NPO) Q2 Earnings and Revenues Surpass Estimates
ZACKS· 2024-08-06 12:46
Enpro (NPO) came out with quarterly earnings of $2.08 per share, beating the Zacks Consensus Estimate of $1.85 per share. This compares to earnings of $1.83 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 12.43%. A quarter ago, it was expected that this industrial products maker would post earnings of $1.54 per share when it actually produced earnings of $1.57, delivering a surprise of 1.95%. Over the last four quarters, the c ...
EnPro Industries(NPO) - 2024 Q1 - Quarterly Report
2024-05-08 13:25
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _________________________________________ (Mark One) ENPRO INC. (Exact name of registrant, as specified in its charter) _____________________________________ North Carolina 01-0573945 (State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.) 5605 Carnegie Boulevard Suite 500 Charlotte North Carolina 28209 (Address of principal executive offices) (Zip Code) (704) 731-1500 (Registrant's telephone number ...
EnPro Industries(NPO) - 2024 Q1 - Earnings Call Transcript
2024-05-07 17:35
Enpro Inc. (NYSE:NPO) Q1 2024 Earnings Conference Call May 7, 2024 8:30 AM ET Company Participants James Gentile ??? Vice President-Investor Relations Eric Vaillancourt ??? President and Chief Executive Officer Milt Childress ??? Executive Vice President Joe Bruderek ??? Executive Vice President and Chief Financial Officer Conference Call Participants Jeff Hammond ??? KeyBanc Capital Markets Steve Ferazani ??? Sidoti & Co. Isaac Sellhausen ??? Oppenheimer Operator Hello, and welcome to the Enpro Q1 2024 Ear ...
EnPro Industries(NPO) - 2024 Q1 - Earnings Call Presentation
2024-05-07 13:59
| --- | --- | --- | |------------------------------------|-------|-------| | | | | | | | | | First Quarter 2024 Earnings Review | | | | May 7, 2024 | | | Forward-Looking Statements Statements in this presentation that express a belief, expectation or intention, including the 2024 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 an ...