Enerpac Q3 Sales Rise 6% to $167.6M, Margin Jumps to 28%, Agrees SFE Acquisition
EPAC•Enerpac’s third-quarter net sales rose 6% to $167.6 million (3% organic) with net earnings of $29.8 million ($0.58 EPS) and adjusted EPS of $0.60, including a $0.08 tariff refund. Adjusted EBITDA margin expanded 210 basis points to 28%, and the company agreed to acquire SFE Group.
1. Q3 Financial Highlights
Enerpac reported third-quarter net sales of $167.6 million, a 6% year-over-year increase (3% organic), delivering net earnings of $29.8 million ($0.58 diluted EPS) and adjusted net earnings of $31.0 million ($0.60 diluted EPS), which includes a $0.08 per share benefit from a tariff refund.
2. Profitability and Cash Flow
Gross profit margin improved by 260 basis points to 53.0%, while adjusted EBITDA rose to $46.9 million, lifting the EBITDA margin by 210 basis points to 28.0%. Year-to-date operating cash flow reached $69 million, up from $56 million in the prior-year period.
3. Shareholder Returns and Leverage
During the quarter, Enerpac repurchased approximately 420,000 shares for $15 million under its buyback program. At quarter end, the company held $115.7 million in cash against $184.8 million in debt, resulting in net debt of $69.1 million and a net debt to adjusted EBITDA ratio of 0.5 times.
4. Strategic Acquisition
Enerpac signed a definitive agreement to acquire Specialized Fabrication Equipment (SFE) Group LLC, aiming to expand its industrial tool and service portfolio, enhance growth in higher-margin end markets and broaden its global presence.
