Enerpac stock holds steady after Q4 earnings beat estimates

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Enerpac Tool Group (NYSE:EPAC [https://seekingalpha.com/symbol/EPAC]) shares were little changed in extended trading on Wednesday after the industrial tools manufacturer reported fiscal fourth-quarter results that beat Wall Street’s profit estimates and slightly exceeded expectations for revenue.

The company reported adjusted earnings of $0.52 per share, greater than the consensus forecast of $0.51, while revenue came in at $167.5 million, topping analysts’ expectations of $164.7 million.

RECORD REVENUE

For the full fiscal year ended August 31, Enerpac (NYSE:EPAC [https://seekingalpha.com/symbol/EPAC]) posted net sales of $617 million, up 4.6% year over year, representing its highest annual revenue since the company’s 2019 relaunch. On an organic basis, sales grew 1.0%, reflecting steady demand across its Industrial Tools & Services (IT&S) and Cortland Biomedical segments, the company said.

“In what remains a challenging macro-environment for the general industrial marketplace, the company posted record revenue, maintained industry-leading margins, generated strong cash flow” and returned money to investors, President and Chief Executive Paul Sternlieb said in a statement.

Enerpac (EPAC [https://seekingalpha.com/symbol/EPAC]) reported operating margins of 21.6% and adjusted operating margins of 22.8%, while net earnings rose 13% to $93 million. Adjusted net income climbed 4% to $99 million, and adjusted earnings before interest, taxes, depreciation and amortization increased 4% to $154 million, representing a 24.9% margin.

FOURTH-QUARTER MARGINS

In the fiscal fourth quarter, net sales increased 5.5% year over year to $167.5 million, though organic sales fell 1.8%. Net income rose to $28.1 million, or $0.52 a diluted share, compared with $23.4 million, or $0.43 a share, in the same period last year.

Adjusted ebitda grew 15% to $44.5 million, and the adjusted ebitda margin improved 220 basis points to 26.5%, reflecting efficiency gains and cost controls. The company repurchased 1.0 million shares for $40 million during the quarter, the largest single-quarter capital return since its 2022 buyback authorization.

CASH FLOW AND NEW $200 MILLION BUYBACK

Enerpac (EPAC [https://seekingalpha.com/symbol/EPAC]) generated $111 million in cash from operations during fiscal 2025, a 37% increase from the prior year, supported by working capital improvements and higher earnings. The company ended the year with $151.6 million in cash and net debt of $38.1 million, or 0.3 times adjusted ebitda.

The board also authorized a new $200 million share repurchase program on October 10, replacing the previous authorization. Since 2022, Enerpac has returned about $240 million to shareholders through buybacks totaling roughly 9 million shares.

FISCAL 2026 OUTLOOK

Looking ahead, Enerpac (EPAC [https://seekingalpha.com/symbol/EPAC]) expects net sales of $635 million to $655 million in fiscal 2026, representing 1% to 4% organic growth. The company projected adjusted ebitda of $158 million to $168 million, adjusted earnings of $1.85 to $2.00 a share, and free cash flow of $100 million to $110 million.

MORE ON ENERPAC TOOL

* Enerpac Tool Non-GAAP EPS of $0.52 beats by $0.01, revenue of $167.51M beats by $2.81M [https://seekingalpha.com/news/4504536-enerpac-tool-non-gaap-eps-of-0_52-beats-by-0_01-revenue-of-167_51m-beats-by-2_81m]
* Seeking Alpha’s Quant Rating on Enerpac Tool [https://seekingalpha.com/symbol/EPAC/ratings/quant-ratings]
* Historical earnings data for Enerpac Tool [https://seekingalpha.com/symbol/EPAC/earnings]
* Dividend scorecard for Enerpac Tool [https://seekingalpha.com/symbol/EPAC/dividends/scorecard]
* Financial information for Enerpac Tool [https://seekingalpha.com/symbol/EPAC/income-statement]