Enerpac Tool Group reported third-quarter fiscal 2026 results with net sales of $167.6 million, a 6% year-over-year increase and $29.8 million in net earnings ($0.58 diluted EPS). Adjusted diluted EPS was $0.60 for the quarter and adjusted EBITDA reached $46.9 million, reflecting margin expansion. The company also announced a definitive agreement to acquire SFE Group and repurchased roughly $15 million of stock in the quarter.

Financial Highlights

  • Revenue: Net sales of $167.6 million for the three months ended May 31, 2026 (6% increase vs. prior year; 3% organic growth).
  • Gross profit and margin: Gross profit of $88.8 million; gross margin of 53.0% (up 260 basis points year over year, including expected IEEPA tariff refund benefit).
  • Operating income: Operating profit of $41.4 million for the quarter.
  • Net income and EPS: Net earnings of $29.8 million; diluted EPS of $0.58 for the quarter.
  • Adjusted results: Adjusted diluted EPS of $0.60 and adjusted EBITDA of $46.9 million (adjusted EBITDA margin 28.0%).

Business Highlights

  • Segment performance: Industrial Tool & Service (IT&S) product sales increased 5% organically year over year while IT&S service revenue declined 8% organically; service revenue improved 17% sequentially.
  • Growth drivers: Cortland Biomedical delivered 25% year-over-year growth in the quarter, contributing to consolidated organic sales growth.
  • Capital allocation: Returned approximately $15 million to shareholders via repurchases (about 420,000 shares); $120 million remains available under the $200 million authorization.
  • Acquisition activity: Signed a definitive agreement to acquire Specialized Fabrication Equipment (SFE) Group to expand complementary product offerings and reach in higher-growth markets and geographies.
  • Cash generation and liquidity: Year-to-date cash provided by operations of $69.3 million; cash balance of $115.7 million and net debt to adjusted EBITDA of 0.5x as of May 31, 2026.

Original SEC Filing:

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