Enerpac Tool Group — Fiscal 2026 Earnings Summary

Financial Performance:

• Fourth quarter net sales increased 11% year-over-year to $186 million, with organic growth of 10%; full-year net sales rose 6% to $652 million, a record annual revenue level, with organic growth of 4%.
• Fourth quarter net earnings were $24 million (13.1% of net sales), or $0.47 per diluted share, compared to $28 million (16.8% of net sales), or $0.52 per diluted share in the prior year; full-year net earnings were $90 million (13.7% of net sales), or $1.72 per diluted share, versus $93 million (15.0% of net sales), or $1.70 per diluted share in the prior year.
• Adjusted diluted EPS for the fourth quarter was $0.53 versus $0.52 in the prior year; full-year adjusted diluted EPS was $1.87 versus $1.81.
• Fourth quarter adjusted EBITDA was $42 million at a 22.6% margin; full-year adjusted EBITDA was $154 million at a 23.7% margin.
• Full-year cash from operations was $130 million, up 17% year-over-year, and free cash flow was $120 million, up 30% year-over-year.
• Net debt to adjusted EBITDA was 0.1x at year-end fiscal 2026.

Guidance and Future Outlook:

• The Company introduced fiscal 2027 guidance including approximately 10 months of SFE Group results.
• Fiscal 2027 net sales guidance is $825 million to $845 million.
• Fiscal 2027 organic sales growth guidance is 4% to 6%.
• Fiscal 2027 adjusted EBITDA guidance is $195 million to $205 million.
• Fiscal 2027 adjusted diluted EPS guidance is $2.00 to $2.15.
• Guidance assumes no substantial change to the current tariff or regulatory environment and is based on key foreign exchange rate assumptions.

Business Segments and Product Lines:

• In the fourth quarter, IT&S product sales increased 11% and service sales increased 9% organically year-over-year.
• On an organic basis, fourth quarter sales increased 10%, with IT&S up 10% and Cortland Biomedical up 13%.
• For the full year, organic sales increased 4%, with IT&S up 3% and Cortland Biomedical up 23%.
• Restructuring and M&A charges were $0.15 per diluted share in fiscal 2026, compared to $0.11 in fiscal 2025.

Market and Competitive Landscape:

• The press release does not contain specific details regarding market share, specific competitors, or broader market trends beyond general references to industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck, and automotive industries in the Safe Harbor statement.

Risks and Challenges:

• Risks include general economic uncertainty, geopolitical activity (including conflicts in the Middle East and Ukraine), supply chain disruptions, and uncertainties regarding tariffs and trade restrictions.
• Risks related to the SFE Group acquisition include the ability to recognize anticipated benefits, potential disruption to current plans, and challenges in retaining key personnel and maintaining customer/vendor relationships.
• Other risks include market acceptance of products, price increases, integration of acquired businesses, operating margin risks due to competitive pricing, reliance on independent agents, cost increases (material, labor, overhead), tax law changes, foreign currency risk, interest rate risk, commodity risk, litigation, and cybersecurity risk.

Management Commentary and Tone:

• Paul Sternlieb, President and CEO, stated the company closed fiscal 2026 with a strong fourth quarter supported by broad-based product strength across the Americas, encouraging trends in the service business, and robust cash generation.
• Sternlieb noted that with the SFE Group acquisition complete and a strong balance sheet, the company has the financial flexibility to continue executing its disciplined capital allocation strategy.
• Darren Kozik, Executive Vice President and CFO, stated the fiscal 2027 guidance builds on healthy trends and expressed excitement to drive profitable growth through continued investments in commercial excellence, innovation, and productivity.

Other Key Points:

• The Company completed the acquisition of SFE Group on October 28, 2026.
• The Company returned $81 million to shareholders through share repurchases in fiscal 2026.
• An investor conference call is scheduled for 7:30 am CT on October 29, 2026.
• An Investor Day is scheduled for Wednesday, November 4, 2026, at the New York Stock Exchange.