Enerpac Tool(US:EPAC)2025-12-22 20:36Financial Performance - Net sales for the three months ended November 30, 2025, were $144.208 million, a decrease of 0.7% compared to $145.196 million in the same period of 2024[13] - Gross profit for the same period was $73.182 million, down from $74.652 million, reflecting a gross margin of 50.8%[13] - Net earnings decreased to $19.131 million, compared to $21.723 million in the prior year, resulting in earnings per share of $0.36, down from $0.40[13] - Operating profit for the quarter was $28.490 million, down from $31.132 million in the previous year[13] - Comprehensive income of $14.514 million for the three months ended November 30, 2025, compared to $12.047 million in the same period of 2024[15] - Basic and diluted earnings per share for Q4 2025 were both $0.36, down from $0.40 in Q4 2024[61] - Operating profit for the consolidated total in Q4 2025 was $28,490,000, down from $31,132,000 in Q4 2024[67] Assets and Liabilities - Total assets as of November 30, 2025, were $818.061 million, a decrease from $827.867 million at the end of August 2025[18] - Cash and cash equivalents decreased to $139.047 million from $151.558 million, indicating a net decrease of $12.511 million during the quarter[21] - The Company reported a net property, plant, and equipment value of $52.7 million as of November 30, 2025, down from $53.3 million as of August 31, 2025[26] - The Company’s accumulated other comprehensive loss increased to $108.8 million as of November 30, 2025, up from $104.1 million as of August 31, 2025, primarily due to foreign currency translation adjustments[25] - As of November 30, 2025, the total long-term debt, less current maturities, is $179.7 million, a decrease from $182.2 million as of August 31, 2025[48] - The Company has a total senior indebtedness of $188.8 million as of November 30, 2025, down from $190 million as of August 31, 2025[48] Cash Flow and Financing - The company reported cash provided by operating activities of $16.0 million, an increase from $8.6 million in the same quarter of the previous year[21] - The Company incurred financing costs of $2.265 million, a decrease from $2.770 million in the prior year[13] - The Company has $399.5 million available for borrowing under the revolving line of credit facility after accounting for outstanding letters of credit[51] - The Company repurchased and retired 376,814 shares for $14.9 million in the three months ended November 30, 2025, with a total of $200 million authorized for repurchase[60] Operational Highlights - The company continues to focus on operational improvements and strategic growth initiatives despite facing challenges in supply chain and market conditions[9] - The IT&S segment reported net sales of $137,762,000 in Q4 2025, compared to $140,134,000 in Q4 2024, with product sales increasing to $112,111,000[66] - The IT&S segment's operating profit margin decreased to 25.9% in Q4 2025 from 27.1% in Q4 2024[67] - Capital expenditures for the consolidated total in Q4 2025 were $2,677,000, significantly lower than $5,857,000 in Q4 2024[67] Legal and Compliance - The Company provided voluntary self-disclosures to Dutch and U.S. authorities regarding sales linked to the Crimea region of Ukraine, which potentially violated EU and U.S. sanctions[71] - The U.S. investigation closed without further implication, while the Dutch investigation concluded in March 2022, finding that sales transactions violated EU sanctions[71] - The Company has not adjusted its estimate of financial penalties related to ongoing legal proceedings in the Netherlands, believing there will be no material adverse effect on its financial position[72]