Wed, Mar 26, 7:19 PM (31 days ago)
**Enerpac Tool Group Corp. (EPAC) Q2 2025 Financial Summary** Enerpac Tool Group Corp. (EPAC) reported a solid Q2 2025 with notable improvements in revenue and earnings. Here are the key points: **Financial Performance:** - **Revenue:** Q2 2025 revenue was $145,528,000, up 5% from $138,437,000 in Q2 2024. Year-to-date (YTD) revenue increased by 4% to $290,724,000 from $280,406,000. - **Gross Profit:** Gross profit margin decreased slightly to 50.5% from 51.6% in Q2 2024 due to unfavorable sales mix. - **Operating Profit:** Operating profit increased by 3% to $30,820,000 from $29,521,000 in Q2 2024, driven by sales growth and flat SG&A expenses. - **Net Earnings:** Net earnings rose by 17% to $20,901,000 from $17,817,000 in Q2 2024. YTD net earnings increased by 19% to $42,624,000 from $35,555,000. - **Earnings per Share (EPS):** Diluted EPS from continuing operations was $0.38, up from $0.33 in Q2 2024. **Segment Performance:** - **IT&S Segment:** Net sales increased by 5% to $140,716,000, with organic growth of 4%. Operating profit was $38,736,000, up from $37,415,000. - **Other Segment:** Net sales were $4,812,000, up from $3,615,000. **Cash Flow and Liquidity:** - **Operating Cash Flow:** Net cash provided by operating activities was $16,108,000, up from $12,065,000 in Q2 2024. - **Investing Activities:** Net cash used in investing activities was $38,713,000, primarily due to the acquisition of DTA and capital expenditures. - **Financing Activities:** Net cash used in financing activities was $25,069,000, driven by lower revolver borrowings and share repurchases. - **Cash Position:** Cash and cash equivalents were $119,509,000, down from $167,094,000 due to increased investing and financing activities. **Future Outlook and Uncertainties:** - **Growth Strategy:** Enerpac aims to drive shareholder value through organic growth, margin expansion, and disciplined capital deployment. - **Uncertainties:** The company faces risks related to supply chain issues, geopolitical activities, tariffs, and global economic conditions. - **Future Operations:** Enerpac plans to relocate its headquarters to Milwaukee, Wisconsin, and continues to focus on operational efficiency and innovation. **Conclusion:** Enerpac Tool Group Corp. demonstrated strong financial health and performance in Q2 2025, with notable increases in revenue, earnings, and cash flow. The company's strategic initiatives and focus on operational excellence position it for continued growth and success. However, it must navigate various uncertainties and risks in the global market.