Enpro (NYSE:NPO) Posts Earnings Results

Key Points

• Enpro beat quarterly expectations: EPS came in at $2.50 versus the $2.32 consensus, while revenue rose 17.6% year over year to $338.8 million. Adjusted EBITDA increased more than 22% to $86.9 million, with margins expanding to 25.6%.
• The company raised its 2026 outlook to 14%–16% sales growth, $330 million–$340 million in adjusted EBITDA and adjusted diluted EPS of $9.30–$9.80. Capital spending was also increased to $60 million–$65 million to expand semiconductor-related precision-cleaning capacity.
• Semiconductor demand is driving growth in Enpro’s Advanced Surface Technologies segment, supported by AI and advanced-computing investment, while commercial vehicle markets remain weak but may be stabilizing.

Enpro (NYSE:NPO - Get Free Report) released its quarterly earnings results on Tuesday. The industrial products company reported $2.50 EPS for the quarter, beating the consensus estimate of $2.32 by $0.18, FiscalAI reports. Enpro had a net margin of 3.70% and a return on equity of 11.33%. The firm had revenue of $338.80 million during the quarter, compared to analyst estimates of $323.68 million. During the same quarter in the prior year, the firm earned $1.25 EPS. The business's revenue for the quarter was up 17.6% compared to the same quarter last year. Enpro updated its FY 2026 guidance to 9.300-9.800 EPS.

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

• Enpro raised its 2026 outlook, now expecting sales growth of 14%-16%, adjusted EBITDA of $330 million-$340 million, and adjusted diluted EPS of $9.30-$9.80.
• Second-quarter sales rose 17.6% year over year to $338.8 million, while adjusted EBITDA increased more than 22% to $86.9 million; the adjusted EBITDA margin expanded 90 basis points to 25.6%.
• Advanced Surface Technologies is benefiting from accelerating semiconductor investment tied to AI, advanced computing, and communications infrastructure, with customer visibility extending through 2027. Enpro expects AST revenue to grow 20% in the second half and margins to approach 25% by year-end.
• Enpro is increasing 2026 capital expenditure expectations to $60 million-$65 million, primarily to expand AST precision-cleaning capacity in Arizona, California, and Taiwan in response to customer demand.
• Commercial vehicle markets, particularly trailers, remain soft but showed early signs of stabilization; management believes the business may be at a bottom and expects a more meaningful recovery next year, while noting that the 2026 guidance does not assume significant improvement.

Enpro Stock Performance

NYSE NPO traded down $4.30 on Tuesday, reaching $329.81. 96,767 shares of the stock were exchanged, compared to its average volume of 242,935. The company has a current ratio of 2.20, a quick ratio of 1.40 and a debt-to-equity ratio of 0.39. Enpro has a one year low of $202.00 and a one year high of $390.42. The firm has a market capitalization of $6.97 billion, a PE ratio of 162.47, a PEG ratio of 2.28 and a beta of 1.51. The company's 50-day simple moving average is $336.39 and its two-hundred day simple moving average is $292.06.

Enpro Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Wednesday, September 2nd will be paid a dividend of $0.32 per share. The ex-dividend date is Wednesday, September 2nd. This represents a $1.28 dividend on an annualized basis and a yield of 0.4%. Enpro's dividend payout ratio (DPR) is presently 63.05%.

Institutional Trading of Enpro

A number of hedge funds and other institutional investors have recently modified their holdings of NPO. Wasatch Advisors LP lifted its stake in shares of Enpro by 8.2% during the 3rd quarter. Wasatch Advisors LP now owns 1,153,237 shares of the industrial products company's stock valued at $260,632,000 after buying an additional 87,446 shares in the last quarter. Invesco Ltd. increased its stake in Enpro by 7.4% in the 4th quarter. Invesco Ltd. now owns 886,043 shares of the industrial products company's stock worth $189,728,000 after buying an additional 60,704 shares in the last quarter. Alliancebernstein L.P. increased its stake in Enpro by 1,651.9% in the 2nd quarter. Alliancebernstein L.P. now owns 409,798 shares of the industrial products company's stock worth $78,497,000 after buying an additional 386,406 shares in the last quarter. Price T Rowe Associates Inc. MD increased its stake in Enpro by 32.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 350,948 shares of the industrial products company's stock worth $75,149,000 after buying an additional 85,667 shares in the last quarter. Finally, Bamco Inc. NY raised its holdings in Enpro by 23.0% during the second quarter. Bamco Inc. NY now owns 287,128 shares of the industrial products company's stock valued at $54,999,000 after acquiring an additional 53,713 shares during the period. 98.31% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. KeyCorp boosted their price objective on shares of Enpro from $345.00 to $370.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. JPMorgan Chase & Co. began coverage on Enpro in a report on Monday, July 20th. They issued an "overweight" rating and a $420.00 target price on the stock. Finally, Weiss Ratings upgraded Enpro from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, July 29th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $358.33.

About Enpro

Enpro Group, Inc NYSE: NPO is a global industrial technology company specializing in engineered products designed to perform in critical and harsh environments. The company's product portfolio spans proprietary bearing materials and surface enhancement technologies, high-performance sealing solutions, and fluid handling components. Enpro's offerings are tailored for markets such as semiconductor manufacturing, aerospace, energy, chemical processing, life sciences and general industrial applications.

Formed in December 2002 as a spin-off from the aerospace and defense supplier Goodrich Corporation, Enpro has grown through a combination of targeted acquisitions and focused organic investment in research and development.

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