Net sales were $155 million, a 6% increase compared to the prior year, with a 2% increase in organic sales1.
IT&S Product sales increased 6% organically, the highest growth in 10 quarters.
Operating profit margin was 16.2% and adjusted operating profit margin was 19.0%.
Net earnings were $16.3 million, or $0.31 per diluted share. Adjusted net earnings were $20.3 million, or $0.39 per diluted share.
Adjusted EBITDA was $33.0 million and adjusted EBITDA margin was 21.3%.
Year-to-date operating cash flow was $29 million, up from $16 million in the prior year.
Returned approximately $51 million to shareholders through share repurchases.
Won a five-year service contract with a major UK oil & gas customer.
Launched six new products at ConExpo, including the recently acquired Hydra Pac diesel split flow pump.
*This press release contains financial measures in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") in addition to non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to the comparable GAAP measures are presented in the tables accompanying this release.
MILWAUKEE, March 25, 2026 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE:EPAC) (the "Company" or "Enerpac") today announced results for its fiscal second quarter ended February 28, 2026.
"We were encouraged by the performance of our product business in the second quarter of fiscal 2026," said Paul Sternlieb, Enerpac Tool Group's President & CEO. "Within the Industrial Tool & Service (IT&S) segment, product revenue increased 6 percent organically– the highest year-over-year gain in 10 quarters. We also enjoyed mid-single-digit growth in order rates, with gains in all three regions. At the same time, we took decisive action to address market-related challenges in IT&S's EMEA region service business, with a restructuring to rightsize our cost structure to align with the softer demand environment. Additionally, the signing of a five-year service contract with a leading UK oil & gas customer, worth several million dollars annually, will support our strategic focus on higher-margin business."
Consolidated Results
(US$ in millions, except per share)
Three Months Ended
Six Months Ended
February 28,2026
February 28,2025
February 28,2026
February 28,2025
Net Sales
$154.8
$145.5
$299.0
$290.7
Net Earnings
16.3
20.9
35.4
42.6
Diluted EPS
0.31
0.38
0.67
0.78
Adjusted Diluted EPS
0.39
0.39
0.75
0.79
Adjusted EBITDA
33.0
33.8
65.3
68.1
Second Quarter Fiscal 2026 Consolidated Results Comparisons
Consolidated net sales for the second quarter of fiscal 2026 were $154.8 million compared to $145.5 million in the prior-year period, an increase of 6%. On an organic basis, sales increased 2% year-over-year, consisting of 1% growth at IT&S and 27% growth at Cortland Biomedical.
Within IT&S, product sales increased 6% organically while service revenue declined 17% organically year over year due to market softness, particularly in the EMEA region.
Gross profit margin declined 410 basis points year-over-year to 46.4% due to continued pressure on the service business. Gross margins on the product business remained strong.
Selling, general and administrative expenses (SG&A) of $45.3 million increased $3.9 million year-over-year. The increase in SG&A expense was driven by restructuring charges of $3.3 million related primarily to the service business in the EMEA region and M&A charges of $1.1 million in the second quarter of fiscal 2026. Adjusted SG&A expense, excluding restructuring and M&A charges, improved 190 basis points as a percent of sales to 26.4%.
Second quarter fiscal 2026 net earnings and diluted EPS were $16.3 million and $0.31 respectively, compared to $20.9 million and $0.38, respectively, in the year-ago period.
Second quarter adjusted EBITDA was $33.0 million compared to $33.8 million in the year-ago period. Adjusted EBITDA margin declined 190 basis points year-over-year to 21.3%.
Through the first six months of fiscal 2026, the company generated $29 million in cash from operations, up from $16 million in the prior year comparable period.
Balance Sheet and Leverage
(US$ in millions)
February 28,2026
November 30,2025
February 28,2025
Cash Balance
$98.7
$139.0
$119.5
Debt Balance
$187.3
$188.5
$192.1
Net Debt to Adjusted EBITDA2
0.6x
0.3x
0.5x
Net debt on February 28, 2026, was $88.5 million, resulting in a net debt to adjusted EBITDA ratio of 0.6 times. The Company repurchased approximately 1.3 million shares of its common stock in the second quarter of fiscal 2026 for a total of $51 million under its share repurchase program announced in October 2025.
Outlook
"While our product business remains quite healthy, given the market pressure on our service business in the EMEA region, which could be further exacerbated by the conflicts in the Middle East, we have updated our guidance for full-year fiscal 2026 to narrow the range," said Darren Kozik, Executive Vice President and Chief Financial Officer.
The Company projects a net sales range of $635 million to $650 million and organic sales growth of 1% to 3%, adjusted EBITDA of $158 million to $163 million, and adjusted EPS of $1.85 to $1.92. Free cash flow guidance remains unchanged at $100 million to $110 million.
Conference Call Information
An investor conference call is scheduled for 7:30 am CT on March 26, 2026. Webcast information and conference call materials, including an earnings presentation, are available on the Enerpac Tool Group website (www.enerpactoolgroup.com).
1Organic sales represent net sales excluding the impact of foreign exchange rates, acquisitions, and divestitures. A reconciliation of organic sales to comparable net sales is presented in the tables accompanying this release.
2Calculated in accordance with the terms of the Company's September 2022 Senior Credit Facility.
Safe Harbor Statement
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In addition to statements with respect to guidance, the terms "outlook," "may," "should," "could," "anticipate," "believe," "estimate," "expect," "objective," "plan," "project" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from the forward-looking statements, general economic uncertainty; the impact of geopolitical activity, including the armed conflicts in the Middle East, including the impact on shipping in the area and the invasion of Ukraine by Russia and international sanctions imposed in response thereto; market conditions in the industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck and automotive industries, including as a result of significant volatility in oil prices resulting from disruptions in the oil markets as a result of geopolitical activity; supply chain risks, including disruptions in deliveries from suppliers due to political tensions and armed conflicts; impacts from the imposition, or threat of imposition, of tariffs and other trade restrictions; the ability of the Company to achieve its plans or objectives related to its growth strategy; market acceptance of existing and new products; market acceptance of price increases; successful integration of acquisitions, the impact of dispositions and restructurings; the ability of the Company to continue to achieve or maintain operational improvements related to restructuring actions; operating margin risk due to competitive pricing and operating efficiencies; risks related to reliance on independent agents and distributors for the distribution and service of products; material, labor, or overhead cost increases; tax law changes; foreign currency risk; interest rate risk; commodity risk; litigation matters; cybersecurity risk; impairment of goodwill or other intangible assets; the Company's ability to access capital markets and other risks and uncertainties that may be referred to or noted in the Company's reports filed with the Securities and Exchange Commission from time to time, including those described in the Company's Form 10-K for the fiscal year ended August 31, 2025. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason, except to the extent required by law.
Non-GAAP Financial Information
This press release contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net earnings, adjusted diluted earnings per share, adjusted operating profit, segment adjusted operating profit and adjusted EBITDA, adjusted corporate expense, adjusted SG&A expense, free cash flow and net debt. This press release includes reconciliations of non-GAAP measures to the most comparable GAAP measure, included in the tables attached to this press release or in footnotes to the tables included in this press release. Management believes the non-GAAP measures presented in this press release are commonly used financial measures for investors to evaluate Enerpac Tool Group's operating performance and financial position with respect to the periods presented and, when read in conjunction with the condensed consolidated financial statements, present a useful tool to evaluate ongoing operations and provide investors with metrics they can use to evaluate aspects of the Company's performance from period to period. In addition, these are some of the financial metrics management uses in internal evaluations of the overall performance of the Company's business. Management acknowledges that there are many items that impact a company's reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. Adjusted diluted earnings per share anticipated for fiscal year 2026 is calculated in a manner consistent with the historical presentation of that measure in the accompanying tables. Because of the forward-looking nature of this estimate, it is impractical to present a quantitative reconciliation of this non-GAAP measure to the comparable GAAP measure, and accordingly no such GAAP measure for that period is being presented.
About Enerpac Tool Group
Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries. The Company makes complex, often hazardous jobs possible safely and efficiently. Enerpac Tool Group's businesses are global leaders in high pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world. The Company was founded in 1910 and is headquartered in Milwaukee, Wisconsin. Enerpac Tool Group common stock trades on the NYSE under the symbol EPAC. For further information on Enerpac Tool Group and its businesses, visit the Company's website at www.enerpactoolgroup.com.
(tables follow)
Enerpac Tool Group Corp.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
February 28,
August 31,
2026
2025
Assets
Current assets
Cash and cash equivalents
$
98,719
$
151,558
Accounts receivable, net
110,106
106,085
Inventories, net
92,559
78,774
Other current assets
47,713
39,701
Total current assets
349,097
376,118
Property, plant and equipment, net
52,985
53,275
Goodwill
290,617
289,787
Other intangible assets, net
44,239
46,942
Other long-term assets
58,557
61,745
Total assets
$
795,495
$
827,867
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt
$
10,000
$
7,500
Trade accounts payable
42,330
42,944
Accrued compensation and benefits
18,417
28,108
Income taxes payable
5,898
5,425
Other current liabilities
59,775
53,125
Total current liabilities
136,420
137,102
Long-term debt, net
177,251
182,168
Deferred income taxes
7,438
6,192
Pension and postretirement benefit liabilities
6,605
7,147
Other long-term liabilities
60,246
61,564
Total liabilities
387,960
394,173
Shareholders' equity
Capital stock
10,308
10,589
Additional paid-in capital
244,208
243,137
Retained earnings
253,947
284,102
Accumulated other comprehensive loss
(100,928
)
(104,134
)
Stock held in trust
(6,654
)
(3,542
)
Deferred compensation liability
6,654
3,542
Total shareholders' equity
407,535
433,694
Total liabilities and shareholders' equity
$
795,495
$
827,867
Enerpac Tool Group Corp.
Condensed Consolidated Statements of Earnings
(In thousands)
(Unaudited)
(Unaudited)
Three Months Ended
Six Months Ended
February 28,
February 28,
February 28,
February 28,
2026
2025
2026
2025
Net sales
$
154,807
$
145,528
$
299,015
$
290,724
Cost of products sold
82,992
72,097
154,018
142,641
Gross profit
71,815
73,431
144,997
148,083
Selling, general and administrative expenses
42,042
41,423
85,137
83,741
Amortization of intangible assets
1,470
1,188
3,067
2,390
Restructuring charges
3,283
-
3,283
-
Operating profit
25,020
30,820
53,510
61,952
Financing costs, net
2,111
2,371
4,376
5,140
Other expense, net
794
750
1,463
1,237
Earnings before income tax expense
22,115
27,699
47,671
55,575
Income tax expense
5,807
6,798
12,232
12,951
Net earnings
$
16,308
$
20,901
$
35,439
$
42,624
Earnings per share
Basic
$
0.31
$
0.38
$
0.68
$
0.78
Diluted
0.31
0.38
0.67
0.78
Weighted average common shares outstanding
Basic
51,880
54,397
52,430
54,319
Diluted
52,300
54,808
52,824
54,810
Enerpac Tool Group Corp.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended
February 28,
February 28,
2026
2025
Operating Activities
Cash provided by operating activities
$
29,027
$
16,108
Investing Activities
Capital expenditures
(5,734
)
(11,517
)
Deferred acquisition payment
(949
)
-
Cash paid for business acquisitions, net of cash acquired
-
(27,196
)
Cash used in investing activities
$
(6,683
)
$
(38,713
)
Financing Activities
Principal repayments on term loan
(2,500
)
(2,500
)
Borrowings on revolving credit facility
14,000
14,421
Principal repayments on revolving credit facility
(14,000
)
(14,421
)
Purchase of treasury shares
(65,924
)
(14,555
)
Stock options, taxes paid related to the net share settlement of equity awards & other
(4,796
)
(5,847
)
Payment of cash dividend
(2,119
)
(2,167
)
Cash used in financing activities
$
(75,339
)
$
(25,069
)
Effect of exchange rate changes on cash
156
89
Net decrease from cash and cash equivalents
$
(52,839
)
$
(47,585
)
Cash and cash equivalents - beginning of period
151,558
167,094
Cash and cash equivalents - end of period
$
98,719
$
119,509
Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures
(In thousands)
Fiscal 2025
Fiscal 2026
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
Net Sales
Industrial Tools & Services Segment
$
140,134
$
140,716
$
153,374
$
161,602
$
595,825
$
137,762
$
148,685
$
-
$
-
$
286,448
Other
5,062
4,812
5,287
5,913
21,074
6,446
6,122
-
-
12,567
Enerpac Tool Group
$
145,196
$
145,528
$
158,661
$
167,515
$
616,899
$
144,208
$
154,807
$
-
$
-
$
299,015
% Net Sales Growth (Decline) Year over Year
Industrial Tools & Services Segment
2
%
4
%
5
%
5
%
4
%
-2
%
6
%
-
-
2
%
Other
