Enerpac Tool Group Corp (EPAC) Q3 2024 Earnings Report

Enerpac Tool Group reported QQ3 2024 revenue of $150.389 million, with gross margin of ~51.2% and adjusted EBITDA margin near 26.4%, reflecting continued margin expansion driven by the ASCEND program, pricing actions, favorable mix, and Cortland Industrial disposition. Organic revenue grew modestly on a year-over-year basis (IT&S up ~1.8% YoY, total organic growth ~1.2% ex FX and divestitures), while total net sales declined 3.8% YoY due to the sale of Cortland Industrial. The quarter featured meaningful progress in efficiency, SG&A productivity, and higher services revenue (up 7% YoY). Management tightened full-year guidance to reflect FX headwinds (~$5 million), guiding organic revenue growth of 2–3% and adjusted EBITDA of $147–$150 million, implying an EBITDA margin of about 25.1–25.4% for the year. The company highlighted growth pillars—rail, infrastructure, wind, and industrial MRO—along with robust innovation, a ramp in e-commerce (Americas up 35% in FY2024; Europe e-commerce live in Q3), and select high-profile project wins (Fehmarnbelt tunnel; Tower Flange Alignment in wind). In addition, Enerpac provided a favorable near-term cash flow outlook, with Q3 operating cash flow of $30.3 million and free cash flow of $28.5 million, and a strong liquidity position (~$530 million). Investors should monitor regional demand dynamics (APAC softness vs. resilient EMEA), the pace of adoption of new products (battery torque wrenches, TFAs), the effectiveness of ECX in Americas, and the progression of FX headwinds on reported revenue and margins.