EnPro Industries(NPO) - 2025 Q1 - Quarterly Results

Financial Performance - Sales for Q1 2025 were $273.2 million, an increase of 6.1% year-over-year, with organic sales growth of 6.0%[3] - GAAP net income rose to $24.5 million, a 96.0% increase from $12.5 million in the prior year, with diluted earnings per share at $1.15 compared to $0.59[4] - Adjusted EBITDA increased by 16.1% to $67.8 million, with an adjusted EBITDA margin of 24.8%, up 210 basis points from the previous year[3] - Adjusted net income for Q1 2025 was $40.3 million, a 21.8% increase year-over-year, with adjusted diluted earnings per share at $1.90, up 21.0%[7] - Net sales for Q1 2025 increased to $273.2 million, up 6.6% from $257.5 million in Q1 2024[26] - Gross profit rose to $118.2 million, representing a 11.9% increase compared to $106.2 million in the previous year[26] - Operating income improved significantly to $41.8 million, up 49.3% from $28.0 million in Q1 2024[26] - Basic earnings per share increased to $1.16, compared to $0.60 in the same quarter last year[26] - Adjusted EBITDA for Q1 2025 reached $67.8 million, up from $58.4 million in Q1 2024, indicating a 16.8% growth[38] - The company reported an adjusted diluted earnings per share of $1.90 for Q1 2025, compared to $1.57 in Q1 2024, marking a 20.9% increase[34] Segment Performance - The Sealing Technologies segment reported sales of $179.6 million, a 4.7% increase, while the Advanced Surface Technologies segment saw sales rise by 9.1% to $93.8 million[8][9] - Adjusted Segment EBITDA for Sealing Technologies was $58.7 million, up from $53.0 million, with a margin of 32.7%[30] - Advanced Surface Technologies reported Adjusted Segment EBITDA of $20.5 million, an increase from $17.3 million, with a margin of 21.9%[30] Cash Flow and Debt - Free cash flow for Q1 2025 was $11.6 million, a significant improvement from $(2.0) million in the prior year, driven by strong operating results[10] - Total debt at the end of Q1 2025 was $636.4 million, with cash and cash equivalents of $240.3 million[11] - Cash and cash equivalents at the end of Q1 2025 were $240.3 million, up from $236.3 million at the end of Q4 2024[28] - The company reported a net cash provided by operating activities of $21.0 million, significantly higher than $6.3 million in Q1 2024[27] Guidance and Future Outlook - The company maintains its full-year 2025 guidance, projecting revenue growth in the low to mid-single-digit range and adjusted EBITDA between $262 million and $277 million[14] - Order rates remain positive entering Q2 2025, with minimal expected impact from recently announced tariffs[2] Other Financial Metrics - The effective tax rate used for adjusted income tax expense was normalized at 25.0%[35] - Acquisition expenses decreased to $0.2 million in Q1 2025 from $3.3 million in Q1 2024[38] - Restructuring expenses were $0.6 million in Q1 2025, slightly down from $0.8 million in Q1 2024[38] - The company recorded foreign exchange losses of $0.4 million related to a divestiture in Q1 2025, compared to $0.5 million in Q1 2024[38] - Approximately 47% of the adjusted EBITDA in Q1 2025 was attributable to subsidiaries that do not guarantee the company's 5.75% Senior Notes due 2026[38]