Enpro (NPO) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 22.4% to $350.8M; organic sales grew 16.9%, adjusted EBITDA increased 31.7% to $91.3M, and adjusted diluted EPS rose 33.7% to $2.66.

• Strong semiconductor demand and growth across both segments supported results; FY2026 revenue, adjusted EBITDA and adjusted diluted EPS guidance was raised.

Financial highlights

• Q3 net income increased to $40.3M from $21.6M; adjusted net income was $57.0M versus $42.4M.

• Gross profit increased 27.5% to $153.2M; gross margin expanded to 43.7% from 41.9%, primarily on AST operating leverage and favorable mix.

• Nine-month sales rose 17.1% to $992.6M; adjusted EBITDA increased to $254.6M from $208.3M.

• Nine-month operating cash flow was $172.8M, up from $138.5M, primarily on higher adjusted segment EBITDA and lower net income-tax payments.

Outlook and guidance

• FY2026 revenue guidance increased to $1.33B–$1.34B, or 16%–17% growth, from prior guidance of 14%–16%.

• Adjusted EBITDA guidance rose to $340M–$345M from $330M–$340M; adjusted diluted EPS guidance rose to $9.70–$9.95 from $9.30–$9.80.

• FY2026 guidance assumes $60M–$65M of capital expenditures, $33M–$34M of net interest expense and a 25% normalized tax rate; adjusted EPS guidance excludes $81M of acquisition-related intangible amortization.

• Sealing order patterns support strong Q4 organic growth; AST is expected to improve sequentially, with Q4 YoY revenue growth and margin rates both above 25%; semiconductor visibility extends through at least 2027.