EnPro Industries(US:NPO)2025-11-04 12:17Financial Performance - Sales for the third quarter of 2025 were $286.6 million, reflecting a 9.9% increase compared to the prior year[5] - Net income for the quarter was $21.6 million, up 9.1% from $19.8 million in the previous year[9] - Adjusted EBITDA for the quarter was $69.3 million, representing an 8.1% year-over-year increase, with an adjusted EBITDA margin of 24.2%[10] - Adjusted diluted earnings per share for the quarter were $1.99, a 14.4% increase from $1.74 in the prior year[9] - Operating income increased to $40.9 million in Q3 2025, compared to $34.1 million in Q3 2024, representing a 19.9% growth[39] - Net income for the nine months ended September 30, 2025, was $72.5 million, a 22.0% increase from $59.0 million in the same period of 2024[39] - Adjusted segment EBITDA for the quarter ended September 30, 2025, was $79.2 million, up 6.6% from $74.3 million in the same quarter of 2024[49] - Adjusted net income for the nine months ended September 30, 2025, was $125.8 million, compared to $113.7 million in the same period of 2024, reflecting a 10.5% increase[63] Sales Growth - Advanced Surface Technologies (AST) sales grew by 17.3%, driven by strong demand in precision cleaning solutions and certain semiconductor tools[5] - Sealing Technologies sales increased by 5.7%, supported by strong performance in aerospace and food and pharma applications[11] - Enpro's net sales for Q3 2025 were $286.6 million, a 9.9% increase from $260.9 million in Q3 2024[39] Cash Flow and Debt - Free cash flow for the nine months ended September 30, 2025, was $104.9 million, up from $82.8 million in the prior-year period[18] - The company ended the quarter with total debt of $445.2 million and cash and cash equivalents of $132.9 million, resulting in a net leverage ratio of 1.2x[20] - Enpro's cash and cash equivalents decreased to $132.9 million as of September 30, 2025, down from $236.3 million at the end of 2024[43] - The company reported a net cash provided by operating activities of $138.5 million for the nine months ended September 30, 2025, compared to $103.5 million in the same period of 2024[41] Guidance and Acquisitions - The company updated its full-year 2025 guidance, projecting revenue growth of 7%-8% and adjusted EBITDA in the range of $275 million to $280 million[24] - Enpro completed the acquisition of Overlook Industries on October 8, 2025, and expects to finalize the acquisition of AlpHa Measurement Solutions in the fourth quarter[3] - The company expects partial-quarter contributions from the acquisitions of Overlook and AlpHa, with the latter anticipated to close in Q4 2025[35] Expenses and Tax - The company incurred acquisition expenses of $2.7 million in Q3 2025, compared to $0.3 million in Q3 2024[55] - Interest expense of $6.4 million for Q3 2025, down from $9.0 million in Q3 2024, reflecting a decrease of 29.0%[49] - Income tax expense increased to $10.5 million in Q3 2025 from $4.2 million in Q3 2024, representing a 150% increase[67] - Restructuring and impairment expenses for the quarter ended September 30, 2025, were $0.2 million, significantly lower than $4.4 million in the same quarter of 2024[55] Asset and Liability Management - Total assets as of September 30, 2025, were $2,398.8 million, a decrease from $2,491.5 million at the end of 2024[43] - Enpro's total liabilities decreased to $877.7 million as of September 30, 2025, compared to $1,062.9 million at the end of 2024[43]