Introduction and Highlights Executive Summary Enerpac Tool Group reported record FY2025 revenue, strong margins, and cash flow, returning $71 million to investors, with DTA integration progressing - Enerpac Tool Group posted record revenue, maintained industry-leading margins, generated strong cash flow, and returned $71 million to investors in fiscal 20254 - The integration of the acquired DTA business is fully on track, with an excellent sales funnel for cross-selling technology4 Fiscal 2025 and Q4 2025 Key Financial Highlights | Metric | FY2025 (Millions USD) | Q4 FY2025 (Millions USD) | | :------------------- | :-------------------- | :----------------------- | | Net Sales | $616.9 | $167.5 | | Net Earnings | $92.7 | $28.1 | | Diluted EPS | $1.70 | $0.52 | | Adjusted Diluted EPS | $1.81 | $0.52 | | Adjusted EBITDA | $153.6 | $44.5 | About Enerpac Tool Group Enerpac Tool Group is a premier global provider of industrial tools, services, technology, and solutions for mission-critical applications - Enerpac Tool Group is a premier industrial tools, services, technology, and solutions provider serving diverse customers and end markets globally25 - The Company's businesses are global leaders in high-pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads25 Fiscal 2025 Financial Results Consolidated Financial Performance Enerpac Tool Group achieved record net sales of $616.9 million in FY2025, with 4.6% growth and 37% increase in cash from operations Fiscal 2025 Consolidated Net Sales Performance | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | YoY Change (%) | Organic Growth (%) | | :------- | :-------------------- | :-------------------- | :------------- | :----------------- | | Net Sales | $616.9 | $589.5 | 4.6% | 1.0% | - Industrial Tools & Services (IT&S) segment sales increased 4.3%, driven by DTA acquisition and organic growth; Cortland Biomedical grew 14.8%67 Fiscal 2025 Profitability Metrics | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | YoY Change (%) | | :------------------- | :-------------------- | :-------------------- | :------------- | | Net Earnings | $92.7 | $82.2 | 12.8% | | Diluted EPS | $1.70 | $1.50 | 13.3% | | Adjusted Diluted EPS | $1.81 | $1.72 | 5.2% | | Adjusted EBITDA | $153.6 | $147.5 | 4.1% | - Gross profit margin declined 60 basis points year-over-year to 50.5%, influenced by service margins and DTA acquisition7 - Selling, general and administrative expenses (SG&A) decreased by $3.2 million year-over-year to $172.8 million, primarily due to the absence of ASCEND-related charges9 - Net cash provided by operating activities was $111.3 million, an increase of 37% from $81.3 million in fiscal 2024811 Fourth Quarter Fiscal 2025 Financial Results Consolidated Financial Performance Q4 FY2025 net sales reached $167.5 million, a 5.5% increase, with 20.1% net earnings growth and 26.5% adjusted EBITDA margin Q4 Fiscal 2025 Consolidated Net Sales Performance | Metric | Q4 FY2025 (Millions USD) | Q4 FY2024 (Millions USD) | YoY Change (%) | Organic Growth (%) | | :------- | :----------------------- | :----------------------- | :------------- | :----------------- | | Net Sales | $167.5 | $158.7 | 5.5% | -1.8% | - IT&S segment sales increased 5.4% due to DTA acquisition, while organic product revenue declined 1.0% and service revenue declined 7.4%; Cortland Biomedical grew 10.4%1213 Q4 Fiscal 2025 Profitability Metrics | Metric | Q4 FY2025 (Millions USD) | Q4 FY2024 (Millions USD) | YoY Change (%) | | :------------------- | :----------------------- | :----------------------- | :------------- | | Net Earnings | $28.1 | $23.4 | 20.1% | | Diluted EPS | $0.52 | $0.43 | 20.9% | | Adjusted Diluted EPS | $0.52 | $0.50 | 4.0% | | Adjusted EBITDA | $44.5 | $38.6 | 15.3% | - Gross profit margin returned to normalized levels at 50.1% in Q4 FY2025, up from 48.8% in the prior-year period13 - Adjusted EBITDA margin improved 220 basis points year-over-year to 26.5%815 - SG&A expenses decreased by $4.5 million year-over-year to $42.1 million, primarily due to the absence of restructuring and ASCEND charges14 Financial Position and Capital Allocation Balance Sheet and Leverage Enerpac maintained a robust financial position in FY2025, with a 0.3x net debt to adjusted EBITDA ratio, reflecting strong financial flexibility Balance Sheet and Leverage (August 31, 2025) | Metric | Amount (Millions USD) | | :---------------------- | :-------------------- | | Cash Balance | $151.6 | | Debt Balance | $189.7 | | Net Debt | $38.1 | | Net Debt to Adjusted EBITDA | 0.3x | Share Repurchase Program The Board authorized a new $200 million share repurchase program, with Q4 FY2025 marking the largest quarterly return of capital at $40.1 million - A new $200 million share repurchase program was authorized on October 10, 2025, immediately replacing the existing authorization18 - In Q4 FY2025, the company repurchased 1.0 million shares for $40.1 million, marking the largest return of capital in a single quarter since March 2022816 - Since March 2022, approximately $240 million has been returned to shareholders through the repurchase of about 9.0 million shares at an average cost of $26.71 per share17 Fiscal Year 2026 Outlook Fiscal Year 2026 Guidance Enerpac Tool Group projects FY2026 net sales between $635 million and $655 million, with 1% to 4% organic growth and $158 million to $168 million adjusted EBITDA Fiscal 2026 Guidance | Metric | Low (Millions USD) | High (Millions USD) | | :----------------- | :----------------- | :----------------- | | Net Sales | $635 | $655 | | Organic Growth | 1% | 4% | | Adjusted EBITDA | $158 | $168 | | Adjusted EPS | $1.85 | $2.00 | | Free Cash Flow | $100 | $110 | - Guidance is based on key foreign exchange rate assumptions and assumes no substantial change to the current tariff or regulatory environment20 Supplemental Financial Data and Disclosures Condensed Consolidated Financial Statements This section presents condensed consolidated balance sheets, statements of earnings, and cash flows, detailing Enerpac Tool Group's financial position and performance Balance Sheets This section presents the company's consolidated balance sheets, detailing assets, liabilities, and equity for fiscal years 2025 and 2024 Condensed Consolidated Balance Sheets (Thousands USD) | Metric | August 31, 2025 | August 31, 2024 | | :-------------------------- | :-------------- | :-------------- | | Total Assets | $827,867 | $777,328 | | Total Current Assets | $376,118 | $372,258 | | Total Liabilities | $394,173 | $385,349 | | Total Shareholders' Equity | $433,694 | $391,979 | Statements of Earnings This section details the company's revenues, expenses, and net earnings for fiscal years 2025 and 2024 Condensed Consolidated Statements of Earnings (Thousands USD) | Metric (Twelve Months Ended August 31) | 2025 | 2024 | | :------------------------------------- | :--- | :--- | | Net Sales | $616,899 | $589,510 | | Gross Profit | $311,829 | $301,011 | | Operating Profit | $133,471 | $121,587 | | Net Earnings from Continuing Operations | $92,749 | $82,207 | | Diluted EPS from Continuing Operations | $1.70 | $1.50 | Statements of Cash Flows This section outlines the cash inflows and outflows from operating, investing, and financing activities for fiscal years 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Thousands USD) | Metric (Twelve Months Ended August 31) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Cash provided by operating activities | $111,284 | $81,319 | | Cash used in investing activities | $(46,001) | $(13,946) | | Cash used in financing activities | $(81,457) | $(56,266) | | Cash and cash equivalents - end of period | $151,558 | $167,094 | Reconciliation of GAAP to Non-GAAP Measures This section reconciles GAAP to non-GAAP financial measures, including net sales, SG&A, operating profit, EBITDA, and EPS, for clearer operational insights Sales, SG&A, Operating Profit, and EBITDA This section reconciles sales, SG&A, operating profit, and EBITDA to their adjusted non-GAAP equivalents for fiscal year 2025 Fiscal 2025 Non-GAAP Performance Highlights (Thousands USD) | Metric | FY2025 Total | | :------------------------------------ | :----------- | | Adjusted Selling, general and administrative expenses | $165,505 | | Adjusted Selling, general and administrative expenses % Enerpac Tool Group | 26.8% | | Adjusted Operating profit | $140,752 | | Adjusted Operating Profit % Enerpac Tool Group | 22.8% | | Adjusted EBITDA | $153,595 | | Adjusted EBITDA % Enerpac Tool Group | 24.9% | Fiscal 2025 Organic Sales Growth (YoY %) | Segment | FY2025 Total | | :------------------------------------ | :----------- | | Industrial Tools & Services Segment | 0.5% | | Other | 14.8% | | Enerpac Tool Group | 1.0% | | Product | 0.9% | | Service | 1.3% | Adjusted Earnings and Diluted EPS This section reconciles net earnings and diluted EPS from continuing operations to their adjusted non-GAAP counterparts for fiscal year 2025 Fiscal 2025 Adjusted Earnings and Diluted EPS (Thousands USD, except per share) | Metric | FY2025 Total | Q4 FY2025 | | :------------------------------------ | :----------- | :-------- | | Net Earnings from Continuing Operations | $92,749 | $28,080 | | Adjusted Net Earnings from Continuing Operations | $98,624 | $27,880 | | Diluted EPS from Continuing Operations | $1.70 | $0.52 | | Adjusted Diluted EPS from Continuing Operations | $1.81 | $0.52 | Guidance Reconciliation This section reconciles GAAP operating profit and cash from operating activities to non-GAAP adjusted EBITDA and free cash flow for FY2026 guidance Fiscal 2026 Guidance Reconciliation (Millions USD) | Metric | Low | High | | :------------------------------------ | :-- | :--- | | GAAP Operating profit | $141 | $153 | | Adjusted EBITDA | $158 | $168 | | Cash provided by operating activities | $115 | $120 | | Free Cash Flow | $100 | $110 | Other Disclosures This section covers investor conference call details, a safe harbor statement for forward-looking statements, and an explanation of non-GAAP financial measures Conference Call Information This section provides details for the upcoming investor conference call, including date, time, and access information - An investor conference call is scheduled for October 16, 2025, at 7:30 am CT, with webcast information and materials available on the Enerpac Tool Group website21 Safe Harbor Statement This section outlines the inherent risks and uncertainties associated with the company's forward-looking statements - The press release contains forward-looking statements subject to inherent risks and uncertainties, including general economic uncertainty, geopolitical activity, market conditions, supply chain risks, and impacts from tariffs and trade restrictions23 Non-GAAP Financial Information Explanation This section explains the company's use of non-GAAP financial measures to evaluate performance and provides context for their interpretation - Enerpac Tool Group uses non-GAAP financial measures (e.g., organic sales, adjusted EBITDA, adjusted EPS) to evaluate operating performance and financial position, providing reconciliations to comparable GAAP measures24 - Management acknowledges that non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies and are not intended to replace GAAP results24
Enerpac Tool(EPAC) - 2025 Q4 - Annual Results