Q3 FY25 EARNINGS JUNE 27, 2025 Forward-Looking Statements and Non-GAAP Measures Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. In addition to statements with respect to guidance, the terms "outlook," "guidance," "may," "should," "could," "anticipate," "believe," "estimate," "expect," "objective," "plan," "project" and similar expressions are intended to identify forward-looki ...

Core Insights - Enerpac Tool Group Corp. reported a total revenue growth of 6% and organic revenue growth of 2% for the third quarter of fiscal 2025, outperforming the soft industrial sector [3][5] - The company is maintaining its full-year guidance, expecting net sales between $610 million and $625 million, reflecting growth of 3% to 6% [12] Financial Performance - Consolidated net sales for the third quarter of fiscal 2025 were $158.7 million, up from $150.4 million in the prior-year period, marking a 5.5% increase [5][10] - Net earnings for the third quarter were $22.0 million, with diluted EPS remaining stable at $0.41 compared to the previous year [8][10] - Adjusted EBITDA for the third quarter was $41.0 million, an increase from $39.7 million year-over-year, with an adjusted EBITDA margin of 25.9% [8][10] Segment Performance - The Industrial Tools & Services (IT&S) segment saw a 5.1% increase in net sales, driven by organic growth and the acquisition of DTA [6] - Organic growth in IT&S product revenue was 1.0%, while service revenue increased by 3.4% [6] Cost Management - Selling, general and administrative expenses (SG&A) rose to $47.0 million, primarily due to restructuring charges of $5.9 million [7] - Adjusted SG&A expenses, excluding restructuring and M&A charges, decreased slightly to $40.4 million from $40.6 million in the prior year [7] Cash Flow and Capital Expenditures - The company generated $56.0 million in cash from operating activities in the first nine months of fiscal 2025, compared to $37.0 million in the same period last year [9] - Capital expenditures for the first nine months were $16.4 million, significantly higher than $5.0 million in the prior year [9] Balance Sheet and Shareholder Returns - As of May 31, 2025, the company had a cash balance of $140.5 million and a debt balance of $190.9 million, resulting in a net debt to adjusted EBITDA ratio of 0.4x [11] - Approximately $14 million was returned to shareholders through share repurchases during the third quarter [10] Strategic Initiatives - The company completed its relocation to a new headquarters in downtown Milwaukee, enhancing its collaborative environment and R&D capabilities [13]