Enerpac Tool Group Class A Stock Earnings Reports

Enerpac reported Q3 FY2025 revenue of $159M, up 6% reported and ~2% organic (adjusting for FX and the DTA acquisition). Results were driven by strong performance in the Americas and APAC, and 19% growth at Cortland Biomedical; EMEA was down organically (HLT lumpy). Gross margin declined 140 bps to 50.4% due to service project mix and DTA inclusion, while adjusted SG&A improved 160 bps (adjusted for one-time charges). The company recorded a $5.9M restructuring (primarily severance) to rightsize costs. Adjusted EBITDA rose 3.4% but margin fell 50 bps to 25.9%; adjusted EPS was $0.51, up 9%. Fiscal 2025 guidance is unchanged: net sales $610–625M (organic 0–2%) and adjusted EBITDA $150–160M, but management expects results toward the lower half of the range given current macro/geopolitical uncertainty. Balance sheet is strong: net debt $50M, net debt/EBITDA 0.4x, liquidity $539M; YTD operating cash flow $56M and FCF guidance maintained at $85–95M. The company repurchased ~$14M of stock in the quarter and remains active on disciplined M&A. Management highlighted actions to mitigate U.S. tariffs (imports subject to tariffs ~$50M annually; estimated incremental annual tariff impact ~$12M over FY24, total ~$18M annualized), implemented price increases/surcharges, and expects to be roughly price/cost neutral. Integration of DTA (heavy lifting/horizontal movement) is progressing: commercial traction and orders/backlog are strong but revenue may come in slightly below prior guidance as operational ramp continues. Investments in a new headquarters innovation lab (in-house prototyping/CNC/3D printing) should accelerate product development and reduce time-to-market.