Enerpac Tool Group Class A Stock Earnings Reports

Enerpac Tool Group reported Q2 FY2026 revenue of $155.0M, up 2% organically. Product sales in the Industrial Tools & Service (IT&S) segment accelerated (+6% organic), driven by strength in the Americas, HLT (heavy lifting tools), India and select Asia Pacific markets; services declined materially (-17% in IT&S, driven by EMEA and Middle East weakness). Gross margin contracted ~410 bps year-over-year due to lower service volumes, though product margins improved and adjusted SG&A decreased to 26.4% of revenue. Adjusted EBITDA margin was 21.3% (vs. 23.2% prior year). GAAP EPS was $0.31; adjusted EPS was $0.39. The company took a $3.3M restructuring charge to rightsize EMEA HydroTite service operations (expecting savings beginning in Q3 with ~1-year payback). Balance sheet remains strong: net debt $89M (0.6x net debt/adjusted EBITDA), total liquidity ~$499M, year-to-date free cash flow $23M. The company repurchased $51M of stock in the quarter and has ~$135M remaining under the $200M authorization. Management narrowed FY2026 guidance to $635M–$650M in net sales (organic growth ~1%–3%), adjusted EBITDA $158M–$163M, adjusted EPS $1.85–$1.92, and maintained free cash flow guidance of $100M–$110M. Key strategic positives: a new five-year HydroTite service contract in the U.K. North Sea worth several million annually, continued product innovation (six product launches at CONEXPO including split flow pumps and IntelliLift 2.0), ongoing M&A pipeline activity, and continued focus on the PEP program to drive procurement and manufacturing productivity.