Enerpac Tool Group Corp. (EPAC) Q1 2026 Financial Results Summary
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Enerpac Tool Group (EPAC) Q1 2026 Financial Results Summary
Release Date: December 17, 2025
Enerpac Tool Group Corp. (NYSE: EPAC) announced solid but mixed results for its first fiscal quarter ended November 30, 2025. The highlights from the report encapsulate both increases in specific sales as well as some declines in earnings compared to the same quarter a year ago. Below is a summary of key financial metrics and operational updates from the report:
Consolidated Results (in millions USD)
- Net Sales:
- Q1 2026: $144.2
- Q1 2025: $145.2
- Decrease: 1%
- Net Earnings:
- Q1 2026: $19.1
- Q1 2025: $21.7
- Decrease: 12%
- Diluted EPS:
- Q1 2026: $0.36
- Q1 2025: $0.40
- Decrease: 10%
- Adjusted EBITDA:
- Q1 2026: $32.4
- Q1 2025: $34.3
- Decrease: 6%
Key Performance Comparisons
- Consolidated net sales declined 1% compared to the same quarter last year, with an organic sales decline of 2%.
- Industrials & Tools Services (IT&S) saw a declining segment with IT&S sales down 3% organically, offset by 27% growth in Cortland Biomedical.
- Within IT&S, product sales improved by 4% organically, while service revenue dropped by 26%, primarily driven by a downturn in the UK market.
- Adjusted EBITDA margin decreased by 120 basis points to 22.4% due to a lower gross margin and slight deleveraging of operating expenses linked to the sales decline.
Cash Flow and Balance Sheet Overview
- Net Cash Provided by Operating Activities:
- Q1 2026: $16.0 million (up from $8.6 million in Q1 2025)
- Cash Balance:
- Q1 2026: $139.0
- Q4 2025: $151.6
- Decrease: 8%
- Debt Balance:
- Q1 2026: $188.5
- Q4 2025: $189.7
- Decrease: 1%
- Net Debt to Adjusted EBITDA Ratio:
- 0.3x for Q1 2026, unchanged from the previous quarter, down from 0.5x YoY.
Shareholder Actions
- Enerpac repurchased approximately 377,000 shares of its common stock for a total of $14.9 million under its previously announced share repurchase program.
- A quarterly dividend was declared amounting to $2.119 million, marginally down from the $2.167 million in the prior-year period.
Outlook for Fiscal Year 2026
- Enerpac remains optimistic with projections for fiscal 2026 net sales in the range of $635 million to $655 million (year-over-year growth of 1% to 4%).
- The company forecasts adjusted EBITDA of $158 million to $168 million and adjusted EPS ranging from $1.85 to $2.00.
- Free cash flow expectations are between $100 million to $110 million, based on stable foreign exchange rates and no drastic changes in tariffs or regulations.
Additional Information
An investor conference call is scheduled for December 18, 2025, at 7:30 AM CT. For further details, stakeholders are directed to the Enerpac Tool Group website.
Conclusion
Overall, Enerpac Tool Group’s Q1 2026 results underscore some challenges in earnings and sales growth while maintaining adequate cash flow stability and operational leverage. The their outlook remains optimistic, projecting growth in both sales and earnings for the remainder of the fiscal year.
Condensed Consolidated Statements of Earnings (In thousands)
| November 30, 2025 | November 30, 2024 | |
|---|---|---|
| Net sales | $144,208 | $145,196 |
| Cost of products sold | $144,208 | $145,196 |
| Gross profit | $71,026 | $70,544 |
| Selling, general and administrative expenses | $73,182 | $74,652 |
| Amortization of intangible assets | $43,095 | $42,318 |
| Operating profit | $1,597 | $1,202 |
| Financing costs, net | $28,490 | $31,132 |
| Other expense, net | $2,265 | $2,770 |
| Earnings before income tax expense | $668 | $487 |
| Income tax expense | $25,557 | $27,875 |
| Net earnings | $19,131 | $21,723 |
| Earnings per share | ||
| Basic | $0.36 | $0.40 |
| Diluted | $0.36 | $0.40 |
| Weighted average common shares outstanding | ||
| Basic | 52,980 | 54,242 |
| Diluted | 53,348 | 54,812 |
Condensed Consolidated Balance Sheets (In thousands)
| Assets | November 30, 2025 | August 31, 2025 |
|---|---|---|
| Cash and cash equivalents | $139,047 | $151,558 |
| Accounts receivable, net | $98,067 | $106,085 |
| Inventories, net | $90,307 | $78,774 |
| Other current assets | $45,054 | $39,701 |
| Total current assets | $372,475 | $376,118 |
| Property, plant and equipment, net | $52,739 | $53,275 |
| Goodwill | $287,988 | $289,787 |
| Other intangible assets, net | $44,954 | $46,942 |
| Other long-term assets | $59,905 | $61,745 |
| Total assets | $818,061 | $827,867 |
| Liabilities and Shareholders’ Equity | ||
| Current liabilities | ||
| Current maturities of long-term debt | $8,750 | $7,500 |
| Trade accounts payable | $41,698 | $42,944 |
| Accrued compensation and benefits | $21,746 | $28,108 |
| Income taxes payable | $9,841 | $5,425 |
| Other current liabilities | $49,743 | $53,125 |
| Total current liabilities | $131,778 | $137,102 |
| Long-term debt, net | $179,710 | $182,168 |
| Deferred income taxes | $7,337 | $6,192 |
| Pension and postretirement benefit liabilities | $6,744 | $7,147 |
| Other long-term liabilities | $61,438 | $61,564 |
| Total liabilities | $387,007 | $394,173 |
| Shareholders’ equity | ||
| Capital stock | $10,555 | $10,589 |
| Additional paid-in capital | $240,842 | $243,137 |
| Retained earnings | $288,408 | $284,102 |
| Accumulated other comprehensive loss | $-108,751 | $-104,134 |
| Stock held in trust | $-3,542 | $-3,542 |
| Deferred compensation liability | $3,542 | $3,542 |
| Total shareholders’ equity | $431,054 | $433,694 |
| Total liabilities and shareholders’ equity | $818,061 | $827,867 |