Enerpac Tool Group Doubles Operating Earnings to $154M, Trades at 12x
EPAC•Product division revenue rose 6% organically, while EMEA services revenue dropped 17% on project deferrals and consolidation. Operating earnings doubled from $75 million in fiscal 2021 to $154 million in fiscal 2025, and shares trade at about 12 times operating earnings with $105 million in annual free cash flow.
1. Operating Earnings and ASCEND Program
Operating earnings rose from $75 million in fiscal 2021 to $154 million in fiscal 2025 after a $75 million ASCEND investment in manufacturing, sales infrastructure and cost reductions. The program delivered a payback in under 12 months and embedded permanent earnings improvements.
2. Product Growth vs Service Weakness
The product division achieved 6% organic growth in the latest quarter—the strongest in ten quarters—driven by standard tools, heavy lifting technology and the DTA acquisition. In contrast, services revenue in EMEA fell 17% as oil and gas project deferrals and industry consolidation reduced available work.
3. Valuation and Cash Flow Uses
Shares trade at roughly 12 times expected operating earnings, valuing the business at a discount to its embedded profitability. The company generates about $105 million in annual free cash flow, providing capacity for share repurchases, bolt-on acquisitions or balance sheet enhancement.
