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Enerpac Tool Group Reports Third Quarter Fiscal 2025 Results
Globenewswireยท 2025-06-26 20:30
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]