Enpro (NYSE:NPO) Releases Quarterly Earnings Results, Beats Estimates By $0.24 EPS

Key Points

• Enpro beat quarterly estimates: EPS came in at $2.66, $0.24 above expectations, while revenue rose 22.4% year over year to $350.8 million. Adjusted EBITDA increased 31.7% to $91.3 million, expanding the margin to 26%.
• Full-year 2026 guidance was raised to revenue of $1.33 billion-$1.34 billion, adjusted EBITDA of $340 million-$345 million, and adjusted EPS of $9.70-$9.95, supported by growth in both operating segments.
• Advanced Surface Technologies led growth with sales up 25.8% and segment EBITDA up 57.3%, while Enpro also maintained strong financial flexibility through $129.2 million in free cash flow, lower leverage, and a new $50 million share-repurchase authorization.

Enpro (NYSE:NPO - Get Free Report) released its quarterly earnings results on Tuesday. The industrial products company reported $2.66 EPS for the quarter, topping the consensus estimate of $2.42 by $0.24, reports. Enpro had a net margin of 3.60% and a return on equity of 11.83%. The business had revenue of $350.80 million during the quarter, compared to analyst estimates of $334.04 million. During the same quarter in the prior year, the firm earned $1.01 earnings per share. The company's quarterly revenue was up 22.4% on a year-over-year basis.

Here are the key takeaways from Enpro's conference call:

• Strong Q3 performance: Revenue rose 22.4% year over year to $350.8 million, adjusted EBITDA increased 31.7% to $91.3 million, and adjusted EPS grew 33.7% to $2.66, with the EBITDA margin expanding to 26%.
• Full-year 2026 guidance was raised to revenue of $1.33 billion-$1.34 billion, adjusted EBITDA of $340 million-$345 million, and adjusted EPS of $9.70-$9.95, reflecting stronger expected performance across both segments.
• Advanced Surface Technologies accelerated: AST sales grew 25.8%, while segment EBITDA increased 57.3% and margins expanded 500 basis points to 25.1%. Strong semiconductor demand and customer visibility extend through at least 2027, though increased capacity investments are expected in 2027.
• Sealing Technologies continued to deliver premium profitability: Sales increased 20.5% including acquisitions, and segment EBITDA rose 21.8% with a 32.6% margin. Growth was broad-based across aerospace, general industrial, digital infrastructure, compositional analysis, and improving commercial vehicle markets.
• Balance-sheet flexibility remains strong: Enpro generated $129.2 million of free cash flow through nine months, reduced revolving debt by $135 million year to date, and lowered net leverage to 1.4 times EBITDA. The board also approved a new $50 million share-repurchase authorization, while management continues to evaluate strategic acquisitions.

Enpro Stock Performance

Shares of NPO traded up $22.79 during trading hours on Tuesday, reaching $291.77. 12,390 shares of the company's stock traded hands, compared to its average volume of 222,205. Enpro has a twelve month low of $202.00 and a twelve month high of $390.42. The business's fifty day simple moving average is $297.22 and its two-hundred day simple moving average is $295.92. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.28 and a quick ratio of 1.43. The firm has a market capitalization of $6.18 billion, a price-to-earnings ratio of 141.77, a P/E/G ratio of 1.97 and a beta of 1.58.

Enpro Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 16th. Stockholders of record on Wednesday, December 2nd will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Wednesday, December 2nd. Enpro's dividend payout ratio (DPR) is 62.44%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on NPO shares. Zacks Research lowered shares of Enpro from a "strong-buy" rating to a "hold" rating in a research note on Friday, September 18th. JPMorgan Chase & Co. initiated coverage on shares of Enpro in a research note on Monday, July 20th. They issued an "overweight" rating and a $420.00 price target on the stock. Weiss Ratings cut Enpro from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, August 12th. Wall Street Zen cut Enpro from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. Finally, KeyCorp boosted their price objective on Enpro from $345.00 to $370.00 and gave the stock an "overweight" rating in a research report on Monday, July 13th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, Enpro presently has an average rating of "Moderate Buy" and an average price target of $358.33.

About Enpro

Enpro Inc NYSE: NPO is an industrial technology company that designs and manufactures engineered products for demanding applications. Its offerings are used in industries including semiconductor manufacturing, aerospace, power generation, chemical processing, oil and gas, and general industrial markets, where reliability, precision, and resistance to heat, pressure, and corrosive environments are important.

Enpro operates through businesses focused on sealing technologies and advanced surface technologies.

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