Enerpac Tool Group Corp (NYSE:EPAC)
$ 34.87 -0.070 (-0.2%) Market Cap: 1.80 Bil Enterprise Value: 1.89 Bil PE Ratio: 21.79 PB Ratio: 4.41 GF Score: 76/100

Q3 2025 Enerpac Tool Group Corp Earnings Call Transcript

Jun 27, 2025 / 12:30PM GMT
Release Date Price: $41.53 (-5.91%)

Key Points

Positve
  • Enerpac Tool Group Corp (EPAC) reported a 6% year-over-year revenue growth, marking a record third-quarter revenue since its relaunch in 2019.
  • The company's Cortland Biomedical segment posted a strong 19% growth, driven by existing products and new product launches.
  • Enerpac Tool Group Corp (EPAC) achieved high single-digit organic growth in the Americas, with strong demand in aerospace, infrastructure, and nuclear industry services.
  • The company has invested in a new innovation lab at its headquarters, enhancing its R&D capabilities and reducing product development time significantly.
  • Enerpac Tool Group Corp (EPAC) maintained a strong balance sheet with a net debt to adjusted EBITDA ratio of 0.4 and total liquidity of $539 million.
Negative
  • The EMEA region experienced a high single-digit decline in organic revenue, primarily due to a decline in the Heavy Lifting Technology (HLT) business.
  • Gross profit margin declined by 140 basis points year-over-year to 50.4%, impacted by service project mix and the inclusion of DTA.
  • The company recorded a restructuring charge of $5.9 million, primarily related to severance and noncash lease impairment.
  • Enerpac Tool Group Corp (EPAC) anticipates delivering towards the lower half of its fiscal 2025 earnings guidance due to macroeconomic and geopolitical conditions.
  • The integration of the DTA acquisition is progressing slower than expected, with revenue likely to fall short of initial guidance.
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Enerpac Tool Group's third-quarter fiscal 2025 earnings conference call. As a reminder, this conference is being recorded June 27, 2025. It is now my pleasure to turn the conference over to Travis Williams, Senior Director of Investor Relations. Please go ahead, Mr. Williams.

Travis Williams
Enerpac Tool Group Corp - Director of Investor Relations

Thank you, operator. Good morning, and thank you for joining us for Enerpac Tool Group's third quarter fiscal 2025 earnings call. On the call today to present the company's results are Paul Sternlieb, President and Chief Executive Officer; and Darren Kozik, Chief Financial Officer.

The slides referenced on today's call are available on the Investor Relations section of the company's website which you can download or follow along. A recording of today's call will also be made available on our website. Today's call will reference non-GAAP measures.

You can find a reconciliation of GAAP to non-GAAP measures in the press release issued

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