Enerpac Tool Group Corp. (NYSE: EPAC) provides industrial tools and solutions in over 100 countries. The company specializes in high-pressure hydraulic tools, controlled force products, and solutions for precisely positioning heavy loads. Enerpac is experiencing stable growth. For the second quarter of fiscal 2025, net sales rose 5.1% year-over-year to $145.5 million, driven by a 5% increase in organic sales. Adjusted EBITDA reached $33.8 million, resulting in an adjusted EBITDA margin of 23.2%.
The company’s gross profit margin declined to 50.5%, down 110 basis points from the previous year, largely due to a product mix shift toward the Heavy Lifting Technology (HLT) business. Despite this, adjusted net earnings increased to $21.2 million, translating to an adjusted earnings per share of $0.39, reflecting an 8% rise year-over-year. The operating profit margin for the quarter was reported at 21.2%, and the adjusted operating profit margin was 21.4%.
In terms of expenses, selling, general, and administrative costs (SG&A) were $41.4 million, a 0.7% increase from the prior year, which adjusted for specific charges, resulted in a 4.6% increase. In terms of cash flow, the company generated $16 million from operations in the first half of fiscal 2025, compared to $7 million for the same period last year, achieving a free cash flow of $5 million.
On the balance sheet, Enerpac held $119.5 million in cash with a debt balance of $192.1 million. The company’s leverage remained strong, with a net debt to adjusted EBITDA ratio of 0.5x. For the full year, Enerpac is maintaining its guidance with expected net sales ranging between $610 million and $625 million, anticipating adjusted EBITDA growth of about 5% at the midpoint.
Enerpac reported approximately $10 million returned to shareholders via stock repurchases in the quarter, actively managing its capital allocation strategy as it aims for future growth. The integration of the DTA acquisition continues to progress, with expectations to strengthen the HLT business. The company’s initiatives in Europe are leveraging previous lessons learned in other regions to further enhance sales effectiveness.