Enerpac Tool Group Reports First Quarter Fiscal 2026 Results

Core Insights - Enerpac Tool Group Corp. reported its fiscal first quarter results for 2026, showing a slight decline in net sales and earnings compared to the previous year, but expressed cautious optimism due to positive trends in order growth, particularly in the Americas [2][3]. Consolidated Results - Consolidated net sales for Q1 2026 were $144.2 million, a decrease of 1% from $145.2 million in Q1 2025. On an organic basis, sales declined by 2% year-over-year [4]. - Net earnings for Q1 2026 were $19.1 million, down from $21.7 million in the same period last year, resulting in diluted EPS of $0.36 compared to $0.40 [5][8]. - Adjusted EBITDA for the quarter was $32.4 million, a decline from $34.3 million in Q1 2025, with an adjusted EBITDA margin of 22.4%, down 120 basis points year-over-year [6][8]. Segment Performance - Within the Industrial Tools & Services (IT&S) segment, product sales increased by 4% organically, while service revenue declined by 26% year-over-year, primarily due to weakness in the UK market [5][4]. - Cortland Biomedical, another segment, experienced significant growth with a 27% increase in sales [4]. Balance Sheet and Cash Flow - As of November 30, 2025, the company had a cash balance of $139.0 million and a debt balance of $188.5 million, resulting in a net debt to adjusted EBITDA ratio of 0.3x [7]. - Net cash provided by operating activities was $16.0 million for Q1 2026, compared to $8.6 million in the prior-year period [6][8]. Outlook - The company maintains its fiscal 2026 outlook, projecting net sales between $635 million and $655 million, with organic sales growth of 1% to 4%. Adjusted EBITDA is forecasted to be between $158 million and $168 million, with adjusted EPS expected to be in the range of $1.85 to $2.00 [9].