Enerpac Tool Group Reports Second Quarter Fiscal 2025 Results

Core Insights - Enerpac Tool Group Corp. reported solid performance in the second quarter of fiscal 2025, with organic revenue growth of 5% despite a soft industrial sector [2][4]. Financial Performance - Consolidated net sales for the second quarter of fiscal 2025 were $145.5 million, a 5.1% increase from $138.4 million in the prior-year period [4][9]. - Net earnings for the second quarter were $20.9 million, or $0.38 per diluted share, compared to $17.9 million and $0.33 per diluted share in the same period last year [6][9]. - Adjusted diluted EPS increased to $0.39 from $0.36 year-over-year [3][9]. - Adjusted EBITDA for the second quarter was $33.8 million, with an adjusted EBITDA margin of 23.2%, down from 24.8% in the prior year [7][9]. Segment Performance - The Industrial Tools & Services (IT&S) segment saw a 4.4% increase in net sales, driven by organic growth and the acquisition of DTA [5]. - IT&S product sales increased by 4.4% on an organic basis, while service revenue grew by 3.4% year-over-year [5]. Profitability Metrics - Gross profit margin declined by 110 basis points year-over-year to 50.5%, attributed to a shift in product sales towards Heavy Lifting Technologies and the mix of service projects [6][9]. - Selling, general and administrative expenses (SG&A) rose by 0.7% year-over-year to $41.4 million [6]. Balance Sheet and Cash Flow - As of February 28, 2025, the company had a cash balance of $119.5 million and a debt balance of $192.1 million, resulting in a net debt to adjusted EBITDA ratio of 0.5x [8]. - The company repurchased approximately 220,000 shares for a total of $10.2 million during the second quarter [8]. Outlook - The company maintains a cautious outlook due to macroeconomic uncertainties but reiterates full-year guidance, projecting net sales between $610 million and $625 million for fiscal 2025 [10]. - Expected organic sales growth is projected to be approximately 0% to 2%, with adjusted EBITDA anticipated in the range of $150 million to $160 million [10].