Financial Data and Key Metrics Changes - Enerpac Tool Group reported record revenue of $617 million for fiscal 2025, representing a 5% increase year-over-year, with organic growth of 1% after adjusting for foreign exchange and the acquisition of DTA [6][11] - Adjusted EBITDA for the year grew by 4% to $154 million, resulting in a margin of 24.9% [11][12] - Adjusted earnings per share increased by 5% to $1.81 compared to $1.72 in fiscal 2024 [11][12] - Gross profit margin was 50.5%, slightly down from the previous year, primarily due to the inclusion of DTA [10][11] Business Line Data and Key Metrics Changes - The IT&S business saw a 1% organic revenue increase for the year, while including DTA, revenue increased by 4% [6] - Heavy lifting technology (HLT) experienced double-digit growth in the Americas, although overall performance was down compared to a strong fiscal 2024 [9][10] - E-commerce business grew by 32% in fiscal 2025, indicating strong traction with customers [5] Market Data and Key Metrics Changes - Growth was observed in two of the three regions, with low single-digit growth in the Americas and strong high single-digit growth in APAC [8] - The EMEA region experienced a mid-single-digit revenue decline, attributed to ongoing economic weakness in Central and Southern Europe [9][10] - Latin America faced softer performance due to macroeconomic issues and tariff-related policies [9] Company Strategy and Development Direction - The company is focused on continuous improvement through the Powering Enerpac Performance (PEP) initiatives, which aim to simplify and automate operations [18][20] - Enerpac is investing in differentiated and value-added service opportunities, including transitioning to a direct business model in certain countries [18] - The company plans to expand its presence in the infrastructure market and enhance its digital transformation efforts [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for fiscal 2026, citing potential benefits from lower interest rates and healthy infrastructure activity, despite uncertainties in Europe [5][15] - The company anticipates revenue for fiscal 2026 to be between $635 million and $655 million, with organic growth projected at 1% to 4% [15][16] - Management highlighted the importance of maintaining a balanced capital allocation strategy, focusing on both M&A opportunities and shareholder returns [13][66] Other Important Information - The company repurchased a record $40 million in stock during the fourth quarter, totaling $69 million for fiscal 2025 [5][12] - Enerpac's net debt was $38 million at year-end, resulting in a net debt-to-adjusted EBITDA ratio of 0.3 times, indicating strong financial flexibility [13][14] - The company opened a new service center in Saudi Arabia, expecting it to be a significant growth engine [18][20] Q&A Session Summary Question: Insights on the EMEA market's performance - Management indicated that the EMEA market's weakness is primarily due to challenges in Central and Southern Europe, compounded by a tough year-over-year comparison due to a large project in the previous year [28][29] Question: E-commerce performance and global rollout - The e-commerce initiative has been rolled out globally, with strong performance in the U.S. and expansion into European and Australian markets [32][33] Question: DTA integration and growth opportunities - Management expressed satisfaction with DTA's integration, noting robust orders and significant growth opportunities, particularly in the U.S. market [34][35] Question: Overall pipeline of opportunities entering fiscal 2026 - The company views the pipeline as similar to the previous year, with ongoing macroeconomic uncertainties but optimism around infrastructure projects [40][42] Question: M&A outlook and potential sellers - Management noted an increase in the quality and pace of M&A opportunities, with a focus on high-quality businesses rather than distressed situations [54][56] Question: Outlook for Cortland Biomedical - Management remains bullish on Cortland Biomedical, expecting continued strong growth and margin accretion from this segment [70]

Financial Data and Key Metrics Changes - Enerpac reported record revenue of $617 million for fiscal 2025, an increase of 5% year-over-year, with organic growth of 1% after adjusting for foreign exchange and the acquisition of DTA [8][14] - Adjusted EBITDA for the year was $154 million, representing a growth of 4% and a margin of 24.9% [14][19] - Adjusted earnings per share increased by 5% to $1.81 compared to $1.72 in fiscal 2024 [14][19] Business Line Data and Key Metrics Changes - The IT and S business saw a 1% organic revenue increase for the year, while including DTA, revenue increased by 4% [9] - DTA's full-year revenue reached $20 million, with a strong performance in the fourth quarter contributing significantly to overall growth [9][12] - Product revenue declined by 1% year-over-year on an organic basis, while service revenue declined by 7% [14] Market Data and Key Metrics Changes - Growth was observed in two of the three regions, with low single-digit growth in The Americas and strong high single-digit growth in APAC [10] - The EMEA region experienced a mid single-digit decline, primarily due to ongoing economic weakness in Central and Southern Europe [12] - In APAC, double-digit growth was driven by enhanced sales coverage in India and improvements in the mining industry in Australia [10][11] Company Strategy and Development Direction - The company is cautiously optimistic about fiscal 2026, with expectations of lower interest rates and healthy activity in the infrastructure sector [7][19] - Enerpac continues to invest in its Powering Enerpac Performance Program (PEP) to drive continuous improvement and operational capabilities [20] - The company is focusing on capturing more differentiated and value-added service opportunities, including transitioning to a direct business model in certain countries [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging and dynamic environment marked by weakness in the industrial sector and economic uncertainty [5] - There is cautious optimism regarding the macro environment, with expectations of some pressure on margins due to higher tariff costs [19][20] - The company remains focused on infrastructure market opportunities and digital transformation initiatives [13][19] Other Important Information - Enerpac repurchased a record $40 million in stock during the fourth quarter, totaling $69 million for fiscal 2025 [7][16] - The company has a strong balance sheet with net debt of $38 million and total liquidity of $551 million, allowing for continued capital allocation flexibility [17][19] Q&A Session Summary Question: Insights on the EMEA market's performance - Management indicated that the EMEA market, primarily Europe, has seen softening due to macroeconomic challenges, particularly in Central and Southern Europe [32][34] Question: E-commerce performance and global rollout - E-commerce has been rolled out globally, with strong performance in the U.S. and expansion into Europe and Australia [37][38] Question: DTA integration and growth opportunities - DTA has shown robust performance, particularly in the U.S. market, with significant cross-selling opportunities identified [40][42] Question: Overall pipeline of opportunities entering fiscal 2026 - The pipeline remains uncertain but is similar to the previous year, with cautious optimism depending on macroeconomic conditions [50][52] Question: M&A outlook and potential sellers - The company is seeing a more constructive outlook for M&A, with a healthy balance sheet and increased deal flow opportunities [70][73] Question: Growth outlook for Cortland - Management remains bullish on Cortland, expecting continued strong growth and margin accretion [90]