Enpro (NPO) Q4 2025 earnings summary

Executive summary

• Achieved 9% sales growth to $1.14 billion in 2025, with organic sales up 7.6%, driven by strength in aerospace, food, biopharma, and improving semiconductor markets.

• Adjusted diluted EPS rose 13.6% to $7.91, and adjusted EBITDA margin held steady at 24.3% despite increased growth investments.

• Free cash flow increased 18% to $153.1M, supporting reinvestment in organic growth and strategic M&A.

• Completed acquisitions of AlpHa, Overlook, and Alpha Measurement Solutions for $280 million, contributing to growth and segment performance.

• Recorded best-ever safety statistics in 2025, with a total recordable incident rate of 0.64.

Financial highlights

• Fourth quarter sales increased 14.3% to $295.4 million; organic sales up 9.9%.

• Fourth quarter Adjusted EBITDA rose 19.2% to $69.4 million; margin up 100 bps to 23.5%.

• Adjusted diluted EPS for Q4 was $1.99, up 26.8% year-over-year.

• Full-year adjusted EBITDA grew 8.9% to $277.6M.

• Free cash flow for 2025 was $153.1M, up 18% from 2024.

Outlook and guidance

• 2026 sales growth expected at 8%-12%, including $60 million from recent acquisitions.

• 2026 Adjusted EBITDA guidance: $305M-$320M; Adjusted EPS: $8.50-$9.20.

• Capital expenditures for 2026 projected at $50 million (~4% of sales).

• Focus on organic growth and strategic acquisitions, leveraging strong cash flow and balance sheet.

• Sealing Technologies and AST segments expect margin expansion and stronger second-half performance.