Enerpac Tool Group Reports First Quarter Fiscal 2026 Results

Enerpac Tool Group Corp. (NYSE: EPAC) announced its financial results for the first quarter of fiscal 2026, revealing a total net sales of $144.2 million, a slight decline of 1% compared to the previous year. Effective management of margins and operating cash flow, combined with a robust return to shareholders, highlight the company's ongoing strategic focus. The report was released on December 17, 2025, and signals a cautiously optimistic outlook for 2026.

First Quarter Fiscal 2026 Financial Highlights

• Net Sales: $144.2 million (down 1% from $145.2 million year-over-year)
• Net Earnings: $19.1 million, or $0.36 per diluted share
• Adjusted EBITDA: $32.4 million, representing a margin of 22.4%
• Operating Cash Flow: Increased to $16 million from $9 million in the prior year
• Share Repurchase: Returned approximately $15 million to shareholders through buybacks

Consolidated Results Overview

For the three months ended November 30, 2025, Enerpac's consolidated net sales declined by 1% year-over-year. An organic comparison shows a 2% decrease in sales, influenced by a 3% drop in IT&S segment sales, slightly mitigated by a 27% growth in the Cortland Biomedical segment. Within IT&S, while product sales grew by 4%, service revenue faced a substantial decrease of 26%, largely stemming from declines in the UK market.

Operating Performance and Shareholder Returns

The operating margin and adjusted operating margin for the quarter stood at 19.8%. The company's net earnings and adjusted EBITDA saw a dip, with reported figures of $19.1 million and $32.4 million respectively. The adjusted EBITDA margin faced a 120 basis points year-over-year reduction due to decreased gross margin rates and slight operational deleveraging.

Enerpac’s commitment to maximizing shareholder value is evident with the repurchase of approximately 377,000 shares of common stock during the quarter, totaling around $14.9 million.

Outlook for Fiscal 2026

The company has maintained its fiscal 2026 outlook, projecting net sales to be in the range of $635 million to $655 million. Additionally, Enerpac expects organic sales growth between 1% to 4%, an adjusted EBITDA range of $158 million to $168 million, and adjusted EPS between $1.85 to $2.00. Such guidance relies on stable foreign exchange rates and no substantial changes in the regulatory landscape.

Conference Call Information

To discuss these results, Enerpac will hold an investor conference call at 7:30 AM CT on December 18, 2025. Interested parties can access webcast information and other call materials through the Enerpac Tool Group’s official website, www.enerpac.com.

Forward-Looking Statements and Cautionary Notes

This press release contains forward-looking statements that involve risks and uncertainties. Factors that could cause actual results to differ include economic conditions, geopolitical risks, market demands, and operational challenges. For a comprehensive overview of the risks, please refer to the company's filings with the Securities and Exchange Commission (SEC).

Non-GAAP Financial Information

This announcement includes financial measures not presented in accordance with GAAP, such as organic sales and adjusted EBITDA. Management believes these measures provide a better evaluation of the company’s performance and position. Reconciliations to GAAP measures are available in the accompanying financial tables.