Enerpac Tool Group (EPAC) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $617 million in fiscal 2025, with adjusted EBITDA margin near 25% despite industrial sector weakness and economic uncertainty.

• Launched five new products, completed successful DTA integration, and enhanced cross-selling opportunities.

• E-commerce business grew 32% globally, with commercial excellence initiatives expanding to APAC.

• Returned $69 million to shareholders in fiscal 2025, including a record $40 million in Q4, and opened a new service center in Saudi Arabia.

• Relocated global headquarters to Milwaukee, expanding innovation capabilities.

Financial highlights

• Fiscal 2025 revenue was $617 million, up 4.6% year-over-year; organic growth was 1%.

• Adjusted EBITDA grew 4% to $154 million, with a margin of 24.9%.

• Adjusted EPS increased 5.2% to $1.81; Q4 adjusted EPS was $0.52, up 4%.

• Gross profit margin was 50.5% for FY25, slightly down year-over-year, but Q4 margin improved to 50.1%.

• Free cash flow rose 32% to $92 million; cash flow from operations was $111 million, up 37%.

Outlook and guidance

• Fiscal 2026 revenue guidance: $635–$655 million, with 1–4% organic growth.

• Adjusted EBITDA forecast: $158–$168 million, midpoint margin of 25.3%.

• Free cash flow expected at $100–$160 million; CapEx of $10–$15 million.

• Adjusted EPS guidance: $1.85–$2.00.

• Q1 2026 margins to face tariff-related cost pressure, expected to normalize through the year.