Enpro (NPO) investor relations material

Executive summary

• Q2 2025 sales grew 6% year-over-year to $288.1M, led by 14.5% growth in Advanced Surface Technologies and 1.9% in Sealing Technologies, with organic sales up 5.6%.

• Adjusted EBITDA was $71.1M (24.7% margin), down 3.9% year-over-year due to higher operating expenses and FX headwinds.

• Net income for Q2 was $26.4M, with adjusted diluted EPS at $2.03, both slightly down from the prior year.

• Full-year 2025 guidance was raised, reflecting strong order momentum in aerospace, food, pharma, and semiconductor markets.

• Strong balance sheet and cash flow support ongoing investments, strategic acquisitions, and financial flexibility.

Financial highlights

• Q2 net sales: $288.1M (+6% YoY); net income: $26.4M; adjusted diluted EPS: $2.03.

• Adjusted EBITDA margin: 24.7%, down from 27.2% last year.

• Free cash flow for six months: $52.8M, up from $35.5M prior year.

• Net debt at quarter-end: $357.8M–$364M; net leverage ratio: 1.4x trailing twelve-month adjusted EBITDA.

• Dividend of $0.31/share declared, totaling $13.2M for six months.

Outlook and guidance

• 2025 revenue growth expected at 5–7%, up from prior low to mid-single digit guidance.

• Adjusted EBITDA guidance raised to $270–$280M; adjusted EPS now $7.60–$8.10.

• Guidance excludes impacts from future acquisitions, FX changes, and new tariffs post-Q2.

• Sealing Technologies expected to deliver mid-single digit top-line growth and segment profitability at the high end of the 30% ±250bps range.

• AST sales growth forecasted in the high single to low double digits, with segment profitability above 20%.