Enerpac Tool Group Reports 5% Revenue Growth in Q2 Fiscal 2025

Enerpac Tool Group Corp. reported a solid financial performance for the second quarter of fiscal 2025, with net sales reaching $145.5 million, a 5% increase from $138.4 million in the same period last year. The company’s gross profit also saw a rise, totaling $73.4 million compared to $71.5 million in the prior year, resulting in an operating profit of $30.8 million, up from $29.5 million. Net earnings from continuing operations were $20.9 million, or $0.38 per diluted share, compared to $17.9 million, or $0.33 per diluted share, in the previous year. For the first half of fiscal 2025, net sales increased to $290.7 million from $280.4 million, with net earnings from continuing operations of $42.6 million, up from $36.2 million.

The company noted several strategic developments during the reporting period, including the acquisition of DTA The Smart Move, S.A., a leader in industrial heavy loads transportation, for an initial purchase price of $27.2 million. This acquisition is expected to enhance Enerpac's Heavy Lifting Technology product line and contributed $6.4 million to net sales in the first half of fiscal 2025. Additionally, the company completed its ASCEND transformation program, which aimed to improve operational efficiency and drive organic growth, resulting in approximately $54 million in annual operating profit.

Operationally, Enerpac reported a slight increase in customer engagement, with product sales growing by 6% year-over-year, while service sales remained flat. The company experienced organic sales growth of approximately 5% in the second quarter, driven by strong performance in its Heavy Lifting Technology product line. The total number of shares outstanding as of March 24, 2025, was 54,084,914. The company also reported a decrease in cash and cash equivalents to $119.5 million from $167.1 million at the end of the previous fiscal year, primarily due to increased capital expenditures related to the new headquarters in Milwaukee.

Looking ahead, Enerpac anticipates continued growth driven by its strategic initiatives and the integration of the DTA acquisition. The company remains focused on expanding its market presence, particularly in emerging markets, and optimizing its operational efficiencies to enhance profitability. However, management acknowledged potential risks, including supply chain challenges and geopolitical uncertainties, which could impact future performance. The company is committed to maintaining a strong balance sheet and disciplined capital allocation to support its growth objectives.