Enerpac Tool Group (EPAC) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 reached $159 million, up 6% year-over-year, with 2% organic growth, driven by IT&S and Cortland Biomedical, and supported by the DTA acquisition.

• Adjusted EBITDA increased 3.4% to $41 million, with a margin of 25.9%, while adjusted EPS rose 9% to $0.51.

• Gross margin declined 140 bps to 50.4% due to service mix and DTA inclusion.

• Operating profit was $32 million, down $2 million year-over-year, mainly due to higher restructuring expenses.

• Continued focus on innovation, operational efficiency, and disciplined M&A as part of growth strategy.

Financial highlights

• Reported revenue up 6% year-over-year to $159 million; organic growth of 2%.

• Adjusted EBITDA margin was 25.9%, down 50 bps year-over-year.

• Adjusted EPS rose 9% to $0.51, driven by higher earnings, lower tax rate, and reduced share count.

• Free cash flow for the quarter was $40 million, up 24% year-over-year.

• Cash from operating activities for the first nine months was $56 million, up from $37 million year-over-year.

Outlook and guidance

• Fiscal 2025 net sales guidance maintained at $610–$625 million, with 3–6% total revenue growth and 0–2% organic growth.

• Adjusted EBITDA expected at $150–$160 million, likely toward the lower end of the range.

• Free cash flow guidance for the year remains $85–$95 million.

• Guidance assumes no broad-based global recession and continued market share gains.

• Company expects to deliver toward the lower half of guidance due to macroeconomic conditions.