Enerpac Tool Group (EPAC) Q3 2026 & Acquisition earnings summary

Executive summary

• Net sales for Q3 FY2026 increased 6% year-over-year to $168 million, driven by strong product sales, favorable foreign currency impacts, and growth in infrastructure, power generation, and defense verticals, while service sales declined due to Middle East conflict.

• Announced definitive agreement to acquire SFE Group, a global provider of specialized fabrication and industrial tool solutions, for $472 million, expected to close in Q1 FY2027 and expand the addressable market by $1 billion.

• SFE Group acquisition is expected to be accretive to adjusted EPS in FY2027 and strengthens position in high-growth verticals such as defense, power generation, semiconductors, and data centers.

• Launched eight new products in FY2026, on track for ten by year-end, with targeted marketing for heavy lifting and moving solutions, especially for data center builds.

• Operating profit rose to $41 million from $31 million in the prior-year quarter, reflecting higher product sales and a $5.7 million benefit from tariff refunds.

Financial highlights

• Q3 FY2026 net sales reached $168 million, up 6% year-over-year; organic sales up 3%.

• Adjusted EBITDA for Q3 was $46.9 million (28.0% margin), up from $41.0 million (25.9%) a year ago.

• Adjusted EPS for Q3 was $0.60, including $0.08 from tariff recovery, up from $0.51 year-over-year.

• Year-to-date cash flow from operations reached $69 million, up from $56 million last year; free cash flow expanded to $60 million for the first nine months.

• Share repurchases totaled $15 million in Q3; $120 million remains under $200 million authorization.

Outlook and guidance

• FY2026 guidance: net sales $635–$645 million, organic growth 1–2%, adjusted EBITDA $151–$156 million, adjusted EPS $1.84–$1.89, free cash flow $100–$110 million.

• Service business and Middle East conflict expected to pressure results; minimal recovery in Q4, with more likely improvement in FY2027.

• SFE acquisition expected to be accretive to adjusted EPS in FY2027.

• Management remains focused on organic growth, margin expansion, and disciplined capital deployment.