EnPro Industries(NPO) - 2024 Q4 - Annual Results

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]