Enerpac Tool Group Reports Fourth Quarter and Full-Year Fiscal 2024 Results; Introduces Full-Year Fiscal 2025 Outlook

Core Insights - Enerpac Tool Group Corp. reported a net sales decline of 1.5% year-over-year for fiscal 2024, with net sales totaling $590 million, while organic growth was 2.2% [1][5] - The company achieved a gross margin expansion of 180 basis points to 51.1% and an operating margin of 20.6% [1][5] - Net earnings increased by 53% year-over-year to $82 million, with diluted EPS rising to $1.50 [1][5] Fiscal 2024 Performance - Net sales for fiscal 2024 were $589.5 million, down from $598.2 million in fiscal 2023, with organic sales growth of 2.2% [5] - Gross margin improved to 51.1%, driven by pricing actions and a favorable sales mix [5] - Operating profit rose 45% year-over-year to $121.6 million, with an operating profit margin of 20.6% [5] - Adjusted EBITDA increased by 8% to $147.5 million, with an adjusted EBITDA margin of 25.0% [5] Fourth Quarter Highlights - Fourth quarter net sales were $158.7 million, a 1.2% decline from the previous year, with organic sales growth of 0.9% [6] - Operating profit for the fourth quarter was $30 million, down 7% year-over-year, with an operating profit margin of 18.9% [6] - Net earnings for the fourth quarter were $23.4 million, compared to $23.1 million in the same quarter of the previous year [6] Segment Performance - The Industrial Tools & Services (IT&S) segment reported net sales of $571.2 million for fiscal 2024, a 2.9% increase, with organic sales growth of 2.7% [8] - Fourth quarter net sales for IT&S were approximately flat year-over-year at $153.4 million, with a 0.8% increase in organic sales [8] Shareholder Returns and Capital Management - The company returned $38 million to shareholders through share repurchases and dividends in fiscal 2024 [3] - Cash from operations was $81 million, with free cash flow of $70 million [1] Outlook for Fiscal 2025 - The company anticipates continued challenges in the general industrial market but expects to achieve net sales between $610 million and $625 million for fiscal 2025, with organic growth of 0% to 2% [10][11]