Enerpac Tool Group reports Q3 record gross profit margins

Enerpac Tool Group reported its third quarter net sales were $156 million, 3% higher than the prior fiscal year’s third quarter net sales. The company also stated it achieved record gross profit margins and adjusted EBITDA margins since its launch in 2019.

Additional highlights include:

  • GAAP operating margin was 16.3% and adjusted operating margin was 21.7%
  • Adjusted EBITDA margin was 24.0%, up from 12.0% in the prior-year period
  • GAAP diluted earnings per share (“EPS”) was $0.30 and adjusted diluted EPS was $0.39, an increase of 144% year over year.
  • Leverage (Net Debt to Adjusted EBITDA) was 1.0x at May 31, 2023
  • Repurchased 0.8 million additional shares for approximately $21 million
  • FY23 full-year guidance: Updating revenue to high-end of the range, and raising adjusted EBITDA

“We delivered solid performance in the third quarter, driven by the focused execution of our global team," said Enerpac Tool Group President & CEO Paul Sternlieb. "Once again, we saw year-over-year core growth in three out of four regions, highlighted by double digit core growth in Europe and Asia Pacific ... In addition, reflecting the board’s confidence in management and in alignment with our balanced capital allocation strategy, we returned approximately $21 million to shareholders during the quarter through share repurchases under our March 2022 authorization.

“We continue working towards further developing our culture of continuous improvement," he continued. "We are driving sustainable improvements to our cost structure, simplifying the business for efficiency and greater productivity, and enhancing how we bring products and services to market. While the global macroeconomic environment remains dynamic, we believe the structural improvements underway at Enerpac coupled with our vertical and geographic diversity have us well positioned to deliver enhanced shareholder value.”

View more details here.