Enerpac Tool Group (EPAC) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2025 rose 5.1% year-over-year to $146M, with organic growth of 5.0% and strong performance in HLT and Americas and APAC regions.

• Adjusted EBITDA was $34M with a margin of 23.2%, slightly down due to mix and the DTA acquisition.

• Adjusted EPS increased 8% to $0.39; GAAP EPS was $0.38, both up year-over-year.

• Headquarters relocation to downtown Milwaukee, with new innovation lab and expanded facilities, scheduled for March 31.

• DTA acquisition completed in September 2024, contributing to IT&S segment growth and global expansion.

Financial highlights

• Revenue increased 5.1% year-over-year on a reported basis; organic growth was 5%.

• Adjusted EBITDA margin declined 160 basis points to 23.2% year-over-year.

• Adjusted EPS was $0.39, up 8% from $0.36 year-over-year.

• Net debt at quarter end was $73 million; net debt to adjusted EBITDA ratio of 0.5x.

• Cash and equivalents stood at $120M; total liquidity at $518M as of February 28, 2025.

Outlook and guidance

• Full-year fiscal 2025 net sales guidance is $610–$625 million, with organic growth of 0–2%.

• Adjusted EBITDA expected at $150–$160 million; free cash flow forecasted at $85–$95 million.

• Stronger profitability and margin improvement anticipated in the back half, with Q4 expected to be the strongest.

• Guidance maintained despite macro uncertainty, potential tariff impacts, and no broad-based global recession assumed.

• Management maintains a cautious tone due to macro uncertainty and potential impacts from tariffs or geopolitical events.