Enpro Raises 2026 Guidance After 11% Q1 Revenue Growth to $303M
Enpro reported first-quarter revenue of $303 million, up 10.9%, and net income of $27.4 million, up 11.8% year-over-year. Strong semiconductor demand and recent acquisitions drove 13.2% adjusted net income growth, prompting an upward revision to full-year 2026 guidance.
1. Q1 Financial Results and Guidance
Enpro delivered first-quarter net sales of $303.0 million, a 10.9% increase, and net income of $27.4 million, an 11.8% gain. Adjusted net income rose 13.2% to $45.6 million and adjusted EBITDA increased 12.7% to $76.4 million, leading the company to raise its full-year 2026 guidance.
2. Segment Performance
The Sealing Technologies segment generated $199.0 million in sales, up 10.8%, with adjusted EBITDA of $64.6 million and a 32.5% margin. Advanced Surface Technologies saw organic sales growth of 11.1% to $104.2 million and adjusted EBITDA of $24.3 million, improving its margin to 23.3%.
3. Cash Flow and Balance Sheet
Operating cash flow reached $39.6 million, while free cash flow was $26.5 million after $13.1 million in capex. The company ended the quarter with $79.2 million in cash, $605.4 million in debt, a net leverage ratio of 1.9x, and paid a $0.32 per share dividend.
4. Strategic Growth Drivers
Stronger semiconductor capital equipment demand, contributions from recent AlpHa Measurement Solutions and Overlook Industries acquisitions, and strategic pricing initiatives under Enpro 3.0 propelled growth. Increased incentive compensation and $1.2 million in restructuring costs supported ongoing investment in the organization’s roadmap.