Enerpac Tool(EPAC) - 2025 Q3 - Quarterly Results

Financial Performance - Consolidated net sales for Q3 fiscal 2025 were $158.7 million, a 5.5% increase from $150.4 million in the prior year[6] - Organic revenue growth was 2%, with IT&S organic growth of 1.5% and 18.7% growth at Cortland Biomedical[6] - Net earnings for Q3 were $22.0 million, compared to $22.6 million in the same period last year, with diluted EPS remaining at $0.41[9] - Adjusted EBITDA for Q3 was $41.0 million, up from $39.7 million year-over-year, with an adjusted EBITDA margin of 25.9%[9] - The company expects full-year net sales guidance of $610 million to $625 million, representing growth of 3% to 6%[13] - Net sales for the three months ended May 31, 2025, increased to $158,661 million, up from $150,389 million in the same period of 2024, representing a growth of 7.5%[25] - Gross profit for the nine months ended May 31, 2025, was $227,985 million, compared to $223,608 million for the same period in 2024, reflecting a slight increase of 1.7%[25] - Operating profit for the three months ended May 31, 2025, was $31,681 million, down from $33,363 million in the prior year, indicating a decrease of 5.0%[25] - Net earnings from continuing operations for the nine months ended May 31, 2025, were $64,668 million, compared to $58,798 million in 2024, showing an increase of 10.0%[25] - The diluted earnings per share from continuing operations for the three months ended May 31, 2025, was $0.41, consistent with the prior year[25] - The company experienced a year-over-year net sales growth of 3.9% for the fiscal year 2025 compared to fiscal year 2024[28] Cash Flow and Capital Management - Cash generated from operating activities for the first nine months of fiscal 2025 was $56.0 million, an increase of approximately $19 million from the prior year[11] - The cash balance as of May 31, 2025, was $140.5 million, up from $132.4 million a year earlier[12] - The net debt to adjusted EBITDA ratio improved to 0.4x as of May 31, 2025, down from 0.5x in the prior year[12] - Cash provided by operating activities for continuing operations was $56,030 million for the nine months ended May 31, 2025, compared to $39,544 million in 2024, an increase of 41.5%[27] - Cash used in financing activities for the nine months ended May 31, 2025, was $39,971 million, down from $51,404 million in the same period of 2024[27] - The company reported a net decrease in cash and cash equivalents of $26,588 million for the nine months ended May 31, 2025, compared to a decrease of $22,053 million in 2024[27] - Free Cash Flow is projected to be between $85 million and $95 million[39] Shareholder Actions - The company repurchased approximately 330,000 shares for a total of $14.0 million in Q3[12] Operational Developments - The company completed its relocation to a new headquarters in downtown Milwaukee, enhancing its R&D capabilities[14] - Capital expenditures for the nine months ended May 31, 2025, were $16,360 million, significantly higher than $4,970 million in the same period of 2024[27] - Capital expenditures are anticipated to be between $19 million and $24 million[39] Adjusted Financial Metrics - Adjusted operating profit for Enerpac Tool was $32,439 million, showing a decrease from $37,000 million in the previous quarter[29] - EBITDA from continuing operations was $31,097 million, compared to $36,035 million in the prior quarter, indicating a decline[30] - Adjusted EBITDA reached $34,874 million, down from $39,672 million in the previous quarter[30] - The adjusted operating profit margin for the Industrial Tools & Services segment was 28.1%, slightly down from 29.9% in the previous quarter[29] - Adjusted net earnings from continuing operations for FY2024 totaled $94.6 million, with adjusted diluted earnings per share at $1.72[35] Future Outlook - The company anticipates continued market expansion and product development in FY2025, with a focus on enhancing operational efficiency[36] - Adjusted diluted earnings per share from continuing operations for Q1 FY2025 are projected at $0.40, reflecting a stable outlook[35] - GAAP Operating Profit for Fiscal 2025 is projected between $135 million and $147 million[39] - Adjusted EBITDA is expected to range from $150 million to $160 million[39] - Cash provided by operating activities is estimated to be between $109 million and $114 million[39]