EnPro Industries(NPO)2025-05-06 14:00Financial Performance - Net sales for the first three months of 2025 were $273.2 million, a 6.1% increase from $257.5 million in the same period of 2024[123]. - Net income for Q1 2025 was $24.5 million, compared to $12.5 million in Q1 2024, representing a 96% increase[123]. - Adjusted diluted earnings per share rose to $1.90 in Q1 2025 from $1.57 in Q1 2024, an increase of 21%[123]. - Adjusted EBITDA for Q1 2025 was $67.8 million, up from $58.4 million in Q1 2024, reflecting a 16% growth[179]. - For the three months ended March 31, 2025, net sales for Enpro Inc. and its Guarantor Subsidiaries were $190.4 million, with a gross profit of $71.9 million and a net income of $3.2 million[166]. - For the year ended December 31, 2024, net sales were $738.2 million, with a gross profit of $270.5 million and a net loss of $8.9 million[167]. Segment Performance - Sealing Technologies segment sales increased by 4.7% to $179.6 million in Q1 2025, driven by demand in aerospace and food and pharmaceuticals[128]. - Advanced Surface Technologies segment sales grew by 9.1% to $93.8 million in Q1 2025, supported by increased demand for optical coatings and aerospace applications[130]. - Adjusted Segment EBITDA for Sealing Technologies was $58.7 million in Q1 2025, a 10.8% increase from $53.0 million in Q1 2024[129]. - Adjusted Segment EBITDA for Advanced Surface Technologies increased by 18.5% to $20.5 million in Q1 2025, with a margin expansion to 21.9%[131]. Cash Flow and Investments - Operating activities generated $21.0 million in cash in Q1 2025, up from $6.3 million in Q1 2024, driven by increased revenue and improved profit margins[139]. - Investing activities used $9.4 million in cash in Q1 2025, significantly lower than $217.0 million in Q1 2024, primarily due to the prior year's acquisition of AMI[139]. - Financing activities used $13.3 million in cash in Q1 2025, including $6.6 million for dividends and $4.0 million for debt repayments[140]. Balance Sheet - As of March 31, 2025, total assets amounted to $1,854.8 million, with current assets of $307.5 million and non-current assets of $1,547.3 million[166]. - Total liabilities as of March 31, 2025, were $926.0 million, with current liabilities of $127.9 million and non-current liabilities of $798.1 million[166]. - Shareholders' equity at March 31, 2025, was $928.8 million, reflecting a significant increase from $757.6 million at December 31, 2024[168]. Tax and Foreign Operations - The effective tax rate for Q1 2025 was 24.3%, up from 12.6% in Q1 2024, primarily due to higher tax rates in foreign jurisdictions[134]. - The company repatriated $60.0 million during the first three months of 2025 from foreign subsidiaries[138]. Corporate Developments - Enpro acquired Advanced Micro Instruments, Inc. on January 29, 2024, enhancing its capabilities in application-specific analyzers and sensing technologies[122]. - A new share repurchase authorization of up to $50.0 million was approved in October 2024, replacing the previous authorization that had expired[159]. Risk Management - The company entered into cross-currency swap agreements with an aggregate notional amount of $100.0 million to manage foreign currency risk[183]. - The company has a weighted average interest rate of 3.5% on Euro-denominated debt related to the cross-currency swap agreements[183]. - The company does not hedge commodity risk with any market risk sensitive instruments[185]. - The company aims to pass along commodity price increases to customers to avoid profit margin erosion[185].