Enerpac Tool Group Corp. (EPAC) Q1 2026 Earnings Call Transcript
Revenue Enerpac's first quarter revenue of $144 million decreased 1% year-over-year. The decline was attributed to a 3% organic decline in IT&S sales, offset by a 4% increase in product revenue.
Product Revenue Product revenue increased 4% year-over-year. Standard products were up low single digits, and the Heavy Lifting Technology business experienced double-digit growth due to capturing additional applications in the infrastructure end market.
Service Revenue Service revenue declined 26% year-over-year, primarily in the EMEA region, particularly in the U.K., due to lower production and customer consolidation in the oil and gas industry.
Gross Profit Margin Gross profit margin was 50.7%, consistent with recent quarters. Margins were impacted by higher tariff-driven costs, which were offset by pricing and productivity actions. A favorable mix shift was offset by lower service margins.
Adjusted EBITDA Adjusted EBITDA was $32.4 million, representing a margin of 22.4%. This was impacted by flat year-over-year SG&A spending, which offset inflationary compensation and incremental innovation spending.
Adjusted Earnings Per Share (EPS) Adjusted EPS was $0.36, down from $0.40 in the prior year. A higher effective tax rate negatively impacted earnings by $0.02 per share.
Net Debt Net debt was $49 million at quarter end, resulting in a net debt to adjusted EBITDA ratio of 0.3.
Free Cash Flow Free cash flow was $13 million, an increase of $10 million year-over-year. This increase was due to the timing of receipts and payments in the quarter, as well as lower capital expenditures compared to the prior year.
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Enerpac Tool Group to Release Q2 Fiscal 2026 Earnings on March 25
- Earnings Release Schedule: Enerpac Tool Group announced it will release its Q2 fiscal 2026 earnings after market close on March 25, 2026, with management emphasizing transparency and investor communication through a follow-up conference call on March 26.
- Conference Call Details: The call is scheduled for 8:30 a.m. ET on March 26, providing a real-time webcast for investors, while a replay will be available for 90 days, ensuring all stakeholders can access critical information regardless of their availability.
- Company Background: Founded in 1910 and headquartered in Milwaukee, Wisconsin, Enerpac Tool Group is a leading provider of industrial tools and solutions, serving customers in over 100 countries, highlighting its leadership in high-pressure hydraulic tools and precise load positioning solutions.
- Market Positioning and Impact: The company focuses on delivering safe and efficient solutions for complex and hazardous jobs, showcasing its significance in the global market and responsiveness to customer needs, thereby reinforcing its competitive edge in the industrial tools sector.
Transcript of Enerpac (EPAC) Q1 2026 Earnings Call
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Enerpac Tool Group Corp. Sees Decline in Q1 Profit
Earnings Decline: Enerpac Tool Group Corp. reported a decrease in earnings for the first quarter, with net earnings of $19.13 million ($0.36 per share) compared to $21.72 million ($0.40 per share) in the same period last year.
Adjusted Earnings: Excluding certain items, the adjusted earnings for the quarter were $19.20 million, maintaining the same earnings per share of $0.36.
Revenue Decrease: The company's revenue fell by 0.7%, totaling $144.21 million, down from $145.20 million in the previous year.
Financial Summary: Key financial figures include earnings of $19.13 million, EPS of $0.36, and revenue of $144.21 million, all reflecting a decline compared to the previous year.
Enerpac Reports $144M in Q1 Sales, $15M Returned to Shareholders
- Sales Decline: Enerpac's Q1 net sales reached $144 million, a 1% decrease year-over-year, primarily driven by a 3% organic sales decline in the IT&S segment, although Cortland Biomedical achieved a notable 27% growth, indicating market demand variability.
- Profitability Fluctuations: The company reported net earnings of $19.1 million and diluted EPS of $0.36, down from $21.7 million and $0.40 in the prior year, reflecting a decrease in gross margin and slight operating expense deleveraging.
- Cash Flow Improvement: Operating cash flow increased to $16 million from $8.6 million in the previous year, demonstrating enhanced cash management and operational efficiency, which supports future investments and shareholder returns.
- Stable Outlook: Enerpac maintains its fiscal 2026 sales outlook, projecting net sales between $635 million and $655 million, reflecting the company's confidence in the market despite external economic uncertainties.
Enerpac Reports $144M in Q1 Sales, $15M Returned to Shareholders
- Sales Decline: Enerpac's Q1 net sales reached $144.2 million, a 1% decrease year-over-year, primarily driven by a 3% organic sales decline in the IT&S segment, although Cortland Biomedical saw a significant 27% growth, indicating market demand disparities.
- Profitability Decline: The company reported net earnings of $19.1 million and diluted EPS of $0.36, down from $21.7 million and $0.40 in the prior year, reflecting lower gross margins and slight increases in operating expenses.
- Cash Flow Improvement: Operating cash flow improved to $16 million from $8.6 million in the previous year, indicating better cash management that supports future investments and shareholder returns.
- Shareholder Return Program: In Q1, the company repurchased approximately 377,000 shares for about $14.9 million, demonstrating a commitment to shareholder value while laying the groundwork for future returns.
Enerpac (EPAC) Reports Q1 Earnings and Revenues Below Expectations
Earnings Performance: Enerpac (EPAC) reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.37, and showing a decline from $0.40 per share a year ago. The company has surpassed consensus EPS estimates only once in the last four quarters.
Revenue Results: The company posted revenues of $144.21 million for the quarter, falling short of the Zacks Consensus Estimate by 2.43% and down from $145.2 million year-over-year. Enerpac has exceeded revenue estimates twice in the past four quarters.
Stock Outlook: Enerpac shares have decreased by 4.1% since the start of the year, contrasting with the S&P 500's 15.6% gain. The stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Manufacturing - Tools & Related Products industry ranks in the top 7% of Zacks industries, suggesting a favorable outlook. Investors are encouraged to monitor earnings estimate revisions, which can significantly influence stock performance.
Enerpac Tool Group to Release Q2 Fiscal 2026 Earnings on March 25
- Earnings Release Schedule: Enerpac Tool Group announced it will release its Q2 fiscal 2026 earnings after market close on March 25, 2026, with management emphasizing transparency and investor communication through a follow-up conference call on March 26.
- Conference Call Details: The call is scheduled for 8:30 a.m. ET on March 26, providing a real-time webcast for investors, while a replay will be available for 90 days, ensuring all stakeholders can access critical information regardless of their availability.
- Company Background: Founded in 1910 and headquartered in Milwaukee, Wisconsin, Enerpac Tool Group is a leading provider of industrial tools and solutions, serving customers in over 100 countries, highlighting its leadership in high-pressure hydraulic tools and precise load positioning solutions.
- Market Positioning and Impact: The company focuses on delivering safe and efficient solutions for complex and hazardous jobs, showcasing its significance in the global market and responsiveness to customer needs, thereby reinforcing its competitive edge in the industrial tools sector.
Transcript of Enerpac (EPAC) Q1 2026 Earnings Call
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Enerpac Tool Group Corp. Sees Decline in Q1 Profit
Earnings Decline: Enerpac Tool Group Corp. reported a decrease in earnings for the first quarter, with net earnings of $19.13 million ($0.36 per share) compared to $21.72 million ($0.40 per share) in the same period last year.
Adjusted Earnings: Excluding certain items, the adjusted earnings for the quarter were $19.20 million, maintaining the same earnings per share of $0.36.
Revenue Decrease: The company's revenue fell by 0.7%, totaling $144.21 million, down from $145.20 million in the previous year.
Financial Summary: Key financial figures include earnings of $19.13 million, EPS of $0.36, and revenue of $144.21 million, all reflecting a decline compared to the previous year.
Enerpac Reports $144M in Q1 Sales, $15M Returned to Shareholders
- Sales Decline: Enerpac's Q1 net sales reached $144 million, a 1% decrease year-over-year, primarily driven by a 3% organic sales decline in the IT&S segment, although Cortland Biomedical achieved a notable 27% growth, indicating market demand variability.
- Profitability Fluctuations: The company reported net earnings of $19.1 million and diluted EPS of $0.36, down from $21.7 million and $0.40 in the prior year, reflecting a decrease in gross margin and slight operating expense deleveraging.
- Cash Flow Improvement: Operating cash flow increased to $16 million from $8.6 million in the previous year, demonstrating enhanced cash management and operational efficiency, which supports future investments and shareholder returns.
- Stable Outlook: Enerpac maintains its fiscal 2026 sales outlook, projecting net sales between $635 million and $655 million, reflecting the company's confidence in the market despite external economic uncertainties.
Enerpac Reports $144M in Q1 Sales, $15M Returned to Shareholders
- Sales Decline: Enerpac's Q1 net sales reached $144.2 million, a 1% decrease year-over-year, primarily driven by a 3% organic sales decline in the IT&S segment, although Cortland Biomedical saw a significant 27% growth, indicating market demand disparities.
- Profitability Decline: The company reported net earnings of $19.1 million and diluted EPS of $0.36, down from $21.7 million and $0.40 in the prior year, reflecting lower gross margins and slight increases in operating expenses.
- Cash Flow Improvement: Operating cash flow improved to $16 million from $8.6 million in the previous year, indicating better cash management that supports future investments and shareholder returns.
- Shareholder Return Program: In Q1, the company repurchased approximately 377,000 shares for about $14.9 million, demonstrating a commitment to shareholder value while laying the groundwork for future returns.
Enerpac (EPAC) Reports Q1 Earnings and Revenues Below Expectations
Earnings Performance: Enerpac (EPAC) reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.37, and showing a decline from $0.40 per share a year ago. The company has surpassed consensus EPS estimates only once in the last four quarters.
Revenue Results: The company posted revenues of $144.21 million for the quarter, falling short of the Zacks Consensus Estimate by 2.43% and down from $145.2 million year-over-year. Enerpac has exceeded revenue estimates twice in the past four quarters.
Stock Outlook: Enerpac shares have decreased by 4.1% since the start of the year, contrasting with the S&P 500's 15.6% gain. The stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Manufacturing - Tools & Related Products industry ranks in the top 7% of Zacks industries, suggesting a favorable outlook. Investors are encouraged to monitor earnings estimate revisions, which can significantly influence stock performance.
