Enerpac Tool Group Corp
NYSE:EPAC

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Enerpac Tool Group Corp Logo
Enerpac Tool Group Corp
NYSE:EPAC
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Price: 36.39 USD -1.78% Market Closed
Market Cap: $1.9B

Enerpac Tool Group Corp
Investor Relations

Enerpac Tool Group Corp., an industrial tools and services behemoth, originates from a legacy embedded in precision and performance. The company, rooted in muscle and mechanics, specializes in high-force hydraulic tools, torque wrenches, heavy lifting equipment, and solutions that serve a myriad of industries including oil & gas, aerospace, and mining. Their product range isn’t just about raw force; it's an epitome of engineering finesse, providing specialized equipment that performs in the pressure-cooker environments of major industrial operations. The sophistication of Enerpac’s offerings lies in their design to perform indispensable roles in lifting, bending, and maneuvering applications where precision and reliability can't be compromised.

The heartbeat of Enerpac's business model is their expansive service and product portfolio that caters to both routine maintenance and complex, customized operation solutions. Revenue flows from not just the sale of cutting-edge tools but also from providing indispensable support services, including safety training, system diagnosis, and maintenance, which are crucial for their clients who demand zero downtime in operations. By ensuring their products perform in challenging conditions, Enerpac cultivates a brand reputation grounded in reliability, thereby fostering enduring client relationships. Through continual innovation in both products and service solutions, the company manages to uphold not just its legacy but also its financial health, sustaining its growth engine in an ever-demanding industrial market landscape.

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Last Earnings Call
Fiscal Period
Q2 2026
Call Date
Mar 26, 2026
AI Summary
Q2 2026

Revenue: Q2 revenue of $155 million, up 2% on an organic basis, driven by product strength but offset by weaker service revenue.

Products vs Services: IT&S product sales accelerated to +6% organic (highest in 10 quarters) while IT&S service revenue dropped 17% organic, pressuring overall growth and margins.

Guidance: Fiscal 2026 sales now guided to $635M–$650M (organic growth 1%–3%); adjusted EBITDA $158M–$163M; adjusted EPS $1.85–$1.92; free cash flow $100M–$110M (unchanged).

Margins & Costs: Gross margins down 410 bps YoY; adjusted EBITDA margin 21.3% vs 23.2% prior year; SG&A disciplined at 26.4% of revenue (down from 28.3%).

Restructuring: Announced EMEA service rightsizing with a $3.3 million charge in Q2, expected to show initial savings in Q3 with ~1-year payback.

Balance sheet & capital return: Net debt $89M (0.6x adjusted EBITDA), liquidity $499M, repurchased $51M of stock in the quarter with ~$135M remaining authorization.

Commercial & Innovation: Strong order rates across regions, successful ConExpo presence with six new product launches (including split-flow pumps and Intelli Lift 2.0); product revenue to ramp over multiple years.

Geopolitical risk: Middle East represents ~10% of revenue; conflict has caused some near-term service pauses and uncertainty, though some work is expected to be deferred rather than lost.

Key Financials
Revenue
$155 million
IT&S product sales
6% organic growth
IT&S service revenue
down 17% (quarter)
Cortland revenue
up 27%
Americas revenue
up 4%
EMEA product revenue
up 7%
EMEA overall revenue
down 1%
Gross margin
declined 410 basis points year-over-year
Adjusted SG&A
26.4% of revenue
Adjusted EBITDA margin
21.3%
Earnings per share
$0.31
Restructuring charge
$3.3 million
Net debt
$89 million
Net debt to adjusted EBITDA
0.6x
Total liquidity
$499 million
Cash flow from operations (YTD)
$29 million
Free cash flow (YTD)
$23 million
Share repurchases
$51 million in the quarter
Middle East revenue exposure
about 10% of total company revenue
Earnings Call Recording
Other Earnings Calls

Management

Mr. Paul E. Sternlieb
CEO, President & Director
No Bio Available
Mr. James P. Denis III
Executive VP, General Counsel, Company Secretary & Chief Compliance Counsel
No Bio Available
Mr. Benjamin J. Topercer
Executive VP & Chief Human Resource Officer
No Bio Available
Mr. Darren M. Kozik
Executive VP & CFO
No Bio Available
Mr. Eric T. Chack
Executive Vice President of Operations
No Bio Available
Mr. Patrick Dawson
Interim Principal Accounting Officer & Corporate Controller
No Bio Available
Mr. Travis Williams
Senior Director of Investor Relations
No Bio Available
Mr. Patrick Shannon Burns
Head of Financial Planning, Operations & Decision Support
No Bio Available
Art Donaldson
Vice President of Engineering - Industrial Segment
No Bio Available

Contacts

Address
WISCONSIN
Menomonee Falls
Attn: Bryan Johnson, N86 W12500 Westbrook Crossing
Contacts
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