“EBITDA margins came in at 23.2% for the quarter, down a bit from the prior year due to the impact of mix, but still at top-tier levels.”
— Paul Sternlieb
03Detailed Report
EPAC
Company EPAC
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
Enerpac Tool Group Corp (EPAC) delivered a resilient QQ2 2025 performance amid a soft industrial backdrop. Reported revenue was $145.5 million, up 5% year over year on a reported basis (5.1% organic growth when adjusting for FX and the DTA acquisition), led by the Industrial Tools & Services (ITS) segment and strength in Heavy Lifting Technology (HLT). EBITDA margins stood at 23.2% for the quarter, modestly pressured by mix (notably higher HLT contribution, which carries lower gross margins than standard tools) and the DTA integration, but remained within top-quartile levels for the sector. Management preserved full-year guidance, signaling confidence in a stronger second half driven by volume leverage, productivity initiatives (PEP), and the ramp of new products. The company stressed ongoing macro uncertainty and tariff risks, while highlighting meaningful strategic initiatives: cross-selling DTA, ECX rollout across regions (Americas, EMEA), a robust e-commerce program (notably 43% YoY growth in Q2), and a disciplined M&A pipeline. Balance sheet strength is notable: net debt of ~$72.6 million and net debt/adjusted EBITDA of ~0.5x, with total liquidity of ~$518 million. Investors should weigh EPAC’s exposure to cyclical end-markets (infrastructure, wind, oil & gas) against a diversified portfolio, strong gross margins, and a connective strategy (ECX, DTA, and innovation). Near-term price discipline and margin progression in H2 will be key drivers of the investment thesis.
Key Performance Indicators
Revenue
Increasing
145.53M
QoQ: 0.23% | YoY: 5.12%
Gross Profit
Increasing
73.43M
50.46% margin
QoQ: -1.64% | YoY: 3.95%
Operating Income
Increasing
30.82M
QoQ: -1.00% | YoY: 3.01%
Net Income
Increasing
20.90M
QoQ: -3.78% | YoY: 17.31%
EPS
Increasing
0.38
QoQ: -99.91% | YoY: 15.15%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability highlights:
- Revenue: $145.528 million in QQ2 2025, up 5.1% YoY on a reported basis; organic growth 5% YoY after FX and DTA adjustment.
- Gross margin: 50.46% ($73.431 million gross profit) vs. 50.6% in the prior year (margin pressured modestly by HLT mix and service project mix).
- EBITDA: $33.541 million, EBITDA margin 23.05% (EBITDA margin up/down modestly versus prior year due to mix and DTA contributions).
- Operating income: $30.820 million, operating margin 21.18%.
- Net income: $20.901 million, net margin 14.36%; EPS (GAAP and diluted) $0.38.
- Tax rate: 24.3% normalized vs. 27.3% year-ago, per the call.
- SG&A: Adjusted SG&A as a % of revenue 28.3% (vs. 28.4% in the prior-year period).
- Cash flow and liquidity: Operating cash flow $7.459 million; free cash flow $1.799 million; cash at period end $119.509 million. Net debt $72.578 million; net debt to adjusted EBITDA 0.5x; total liquidity $518 million including revolver.
- Capex and share repurchases: Capital expenditures $5.66 million; approximately 220k shares repurchased for $10.2 million in QQ2.
- Full-year guidance: Cash flow guidance maintained at $85–$95 million; expectations of higher profitability in H2 due to volume leverage and productivity actions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
145.53M
5.12%
0.23%
Gross Profit
73.43M
3.95%
-1.64%
Operating Income
30.82M
3.01%
-1.00%
Net Income
20.90M
17.31%
-3.78%
EPS
0.38
15.15%
-99.91%
Key Financial Ratios
Gross Profit Margin
Good
50.50%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Good
21.20%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
14.40%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.69%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.15%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
3.06
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.47
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
30.11x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
6.20x
Very high premium suggests asset-light business model or lofty expectations
Management Insights Available for Members
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