Enpro Q4 sales increase 3.7%
Enpro Inc. announced its 2024 sales of $1.05 billion were down 1.0% YoY, and organic sales for the year were down 3.9%. For the three months ended December 31, the company reported sales of $258.4 million, an increase of 3.7%, and organic sales increased 1.2%.
"Our strong finish to 2024 was driven by excellent performance in Sealing Technologies and sequential improvement in sales and segment profitability at AST," said President and Chief Executive Officer Eric Vaillancourt. "We are encouraged by the improvement in our year-over-year results despite continued soft conditions in semiconductor capital equipment spending and commercial vehicle OEM markets, which reflects the resilience of our businesses and the differentiated value of our critical solutions. As we enter 2025 and beyond, we will continue to deliver significant value to our customers by demonstrating agility, exercising discipline and applying our engineering expertise and technology advantages.
"Our strong balance sheet and cash flow generation enable us to pursue a number of high-margin organic growth opportunities and select acquisitions that meet our rigorous strategic and financial criteria," he continuned. "We continue to support and empower our teams as we build on our strengths that drive profitable growth, continuous improvement and long-term enterprise value creation."
Fourth quarter sales were strong in aerospace, food and pharma, general industrial, and nuclear power generation, in addition to strategic pricing actions, offset continued softness in semiconductor capital equipment spending and commercial vehicle OEM markets. Excluding the impact of the AMI acquisition completed in January 2024 and foreign currency exchange translation, organic sales grew 1.2%.
Enpro said its full-year sales decline was driven primarily by the continued slowdown in semiconductor capital equipment spending and a sharp decline in commercial vehicle OEM markets partially offset by strength in the nuclear energy, aerospace, firm demand in commercial vehicle aftermarket and recovery in European general industrial and food and pharma markets.
Fourth Quarter 2024 Segment Highlights of Continuing Operations
Sealing Technologies
- Sales increased 10.9% versus the prior-year period. Excluding the impact of foreign exchange translation and the AMI acquisition, sales increased 6.7%. Strong demand in aerospace and nuclear markets, strategic pricing actions and a recovery in food and pharma and European general industrial markets offset continued weakness in commercial vehicle OEM and Asian industrial markets.
- Adjusted segment EBITDA increased 31.8% versus the prior-year period. Improved volume, positive mix, and strategic pricing initiatives contributed to increased segment profitability. Excluding the impact of foreign exchange translation and the AMI acquisition, adjusted segment EBITDA increased 23.4% compared to last year.
Advanced Surface Technologies
- Sales decreased 6.4% versus the prior-year period driven primarily by continued weakness in semiconductor capital equipment spending, partially offset by strength in solutions serving leading-edge applications.
- Adjusted segment EBITDA decreased 7.0% versus last year. Positive mix and continuous improvement initiatives largely offset the overall volume decline, material cost increases and operating costs related to growth investments.
The company expects 2025 revenue growth to be in the low to mid-single digit range, adjusted EBITDA* to be in the range of $262 million to $277 million and adjusted diluted earnings per share* from continuing operations to be in the range of $7.00 to $7.70.
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