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Q2 FY25 EARNINGS 3.25.2025
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2 Forward-Looking Statements and Non-GAAP Measures Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. In addition to statements with respect to guidance, the terms “outlook,” “guidance,” “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. In addition to the assumptions and other factors referred to specifically in connection with such statements, risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements include, without limitation, general economic uncertainty, market conditions in the industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck and automotive industries, supply chain risks, including disruptions in deliveries from suppliers due to political tensions or the imposition, or threat of imposition, of tariffs, the impact of geopolitical activity, including the invasion of Ukraine by Russia and international sanctions imposed in response thereto, as well as armed conflicts in the Middle East, including the impact on shipping in the Red Sea, 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 its plans or objectives related to the PEP program, 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, tariffs, 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, 2024. 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. All estimates of future performance are as of March 24, 2025. This presentation also contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted operating profit from continuing operations, segment adjusted operating profit and adjusted EBITDA, adjusted SG&A, and net debt. The supplemental financial schedules appended at the end of this presentation include reconciliations of these non-GAAP measures to the most comparable GAAP measure. Enerpac Tool Group 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.
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3 Q2 Fiscal 2025 Revenue *Organic net sales is a non-GAAP measure and excludes the impact of foreign exchange rates, acquisitions, and dispositions identified in the accompanying reconciliations to GAAP measures. ($ in millions) Net Sales Net Sales Organic 2Q25 2Q24 Change Growth* Industrial Tools & Service (IT&S) $141 $135 4.4% 4.2% IT&S Product $114 $108 5.5% 4.4% IT&S Service $27 $27 -0.2% 3.4% Other (Cortland Biomedical) $5 $4 33.1% 33.1% Enerpac Tool Group $146 $138 5.1% 5.0%
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4 IT&S Organic Growth by Region * *Organic revenue growth excludes the impact of foreign exchange rates, acquisitions, and dispositions. FY24 IT&S Regional Sales Americas 46% EMEA 41% APAC 13% Region 2Q242Q25 LSD = low single digit, MSD = mid single digit, HSD = high single digit
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5 Q2 Fiscal 2025 Profitability *Adjusted SG&A, adjusted EBITDA, and adjusted EPS are non-GAAP measures and exclude restructuring and other charges identified in the accompanying reconciliations to GAAP measures. ($ in millions, except EPS) YoY 2Q25 2Q24 Change Gross Margin 50.5% 51.6% -110 bps Adjusted SG&A * 28.3% 28.4% -10 bps Adjusted EBITDA* $34 $34 -1% Adjusted EBITDA Margin 23.2% 24.8% -160 bps Adjusted EPS* $0.39 $0.36 8%
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6 Balanced Capital Allocation Strategy Invest in Ourselves Investments in Digital, Product Innovation, R&D, Operational Excellence Improvements Maintain Our Strong Balance Sheet Target Leverage of 1.5x – 2.5x Disciplined M&A Opportunistically Returning Capital to Shareholders ~2.4M shares remaining on current 10M share repurchase authorization Asset-Light Model Enables Strong FCF ** Strong Liquidity & Balance Sheet *As of February 28, 2025, calculated in accordance with the terms of the Company’s September 2022 senior credit facility. **The Company calculates free cash flow as cash from operations, less capital expenditures. ($ in millions) $54 $52 $78 $81 $12 $7 $9 $11 $42 $44 $69 $70 FY21 FY22 FY23 FY24 Cash & Equivalents $120 Revolver Capacity (Undrawn) $399 Total Liquidity $518 Total Debt $192 Net Debt/Adj. EBITDA* 0.5x
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7 Infrastructure Project Enerpac's SyncHoist System in use in Chile Making complex, often hazardous jobs possible, safely and efficiently
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8 Relocating our Headquarters to the Enerpac Center in Downtown Milwaukee on March 31
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9 Appendix
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N E T S A L E S $610 - $625M ~0-2% Organic Growth ~3-6% Total Growth A D J . E B I T D A* $150 - $160M F R E E C A S H F L O W $85 - $95M FY25 Guidance Key Assumptions: ▪ Targeting to outperform industry and gain market share ▪ No broad-based global recession 10 Depreciation & Amortization ~$14 - $16M Interest Expense ~$13 - $15M Adjusted Tax Rate ~21 - 26% Cash Taxes ~$35 - $40M Capex ~$19 - $24M Key FX Rates $1.10/1€, $1.31/1£*Adjusted for one-time merger and acquisition costs.
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11 Historical Quarterly Results ($ in millions, except per share) *Adjusted Operating Profit, Adjusted EBITDA and Adjusted Diluted EPS exclude restructuring and other charges identified in the accompanying reconciliations to GAAP measures. Organic net sales excludes the impact of foreign exchange rates, acquisitions, and dispositions. The Enerpac Tool Group quarterly earnings releases and full GAAP to non-GAAP reconciliations are available online at https://ir.enerpactoolgroup.com/ $142 $156 $161 $142 $138 $150 $159 $145 $146 6% 4% 9% 5% 2% 1% 1% -1% 5% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Net Sales & YoY Organic Growth* $29 $34 $37 $32 $32 $37 $36 $31 $31 20% 22% 23% 23% 23% 25% 23% 22% 21% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Adjusted Operating Profit and Margin* $32 $37 $40 $35 $34 $40 $39 $34 $34 23% 24% 25% 25% 25% 26% 24% 24% 23% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Adjusted EBITDA and Margin* $0.35 $0.39 $0.42 $0.39 $0.36 $0.47 $0.50 $0.40 $0.39 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Adjusted Diluted EPS*
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12LSD = low single digit, MSD = mid single digit, HSD = high single digit, LDD = low double digit , HT = high teens IT&S Organic Growth by Region Regional IT&S Organic Growth by Region Americas EMEA APAC 1Q23 +HT +HSD +LSD 2Q23 +LDD +MSD +MSD 3Q23 +MSD Flat +HT 4Q23 +HSD +MSD +HT 2023 +LDD +MSD +LDD 1Q24 +MSD +HSD +LSD 2Q24 +LSD +MSD -LSD 3Q24 -LSD +LDD -LDD 4Q24 Flat +LSD -MSD 2024 +LSD +HSD -MSD 1Q25 -MSD +LSD +MSD 2Q25 +HSD -LSD +HSD
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13 Reconciliation of Non-GAAP Measures The Enerpac Tool Group fiscal 2025 Q2 earnings release and full GAAP to non-GAAP reconciliation is available online at https://ir.enerpactoolgroup.com/ The summation of individual components may not equal the total due to rounding. (US$ in millions) Consolidated Organic Sales by Quarter Q1 FY23 Q1 FY22 % Change Net Sales $139 $131 6.5% Fx Impact - (7) Total $139 $124 12.6% Q2 FY23 Q2 FY22 % Change Net Sales $142 $137 3.9% Fx Impact - (3) Total $142 $133 6.4% Q3 FY23 Q3 FY22 % Change Net Sales $156 $152 2.9% Fx Impact - (2) Total $156 $150 4.3% Q4 FY23 Q4 FY22 % Change Net Sales $161 $152 5.8% Fx Impact - 1 Divestiture - (6) Total $160 $148 8.8% ETG Organic Sales - Q4 FY23 vs. Q4 FY22 ETG Organic Sales - Q1 FY23 vs. Q1 FY22 ETG Organic Sales - Q2 FY23 vs. Q2 FY22 ETG Organic Sales - Q3 FY23 vs. Q3 FY22 Q1 FY24 Q1 FY23 % Change Net Sales $142 $139 1.9% Fx Impact - 2 Divestiture - (7) Total $142 $135 5.5% Q2 FY24 Q2 FY23 % Change Net Sales $138 $142 -2.5% Fx Impact - 0 Divestiture - (6) Total $138 $136 1.8% Q3 FY24 Q3 FY23 % Change Net Sales $150 $156 -3.8% Fx Impact - (1) Divestiture - (7) Total $150 $149 1.2% Q4 FY24 Q4 FY23 % Change Net Sales $590 $598 -1.5% Fx Impact - 1 Divestiture - (23) Total $590 $577 2.2% ETG Organic Sales - Q4 FY24 vs. Q4 FY23 ETG Organic Sales - Q1 FY24 vs. Q1 FY23 ETG Organic Sales - Q2 FY24 vs. Q2 FY23 ETG Organic Sales - Q3 FY24 vs. Q3 FY23 Q1 FY25 Q1 FY24 % Change Net Sales $145 $142 2.3% Fx Impact - 1 Acquisition (3) 0 Total $142 $143 -0.8% Q2 FY25 Q2 FY24 % Change Net Sales $146 $138 5.1% Fx Impact - (3) Acquisition (3) 0 Total $142 $136 5.0% ETG Organic Sales - Q1 FY25 vs. Q1 FY24 ETG Organic Sales - Q2 FY25 vs. Q2 FY24 Q2 FY25 Organic Sales by Category Q2 FY25 Q2 FY24 % Change Net Sales $141 $135 4.4% Fx Impact - (3) Acquisitions (3) - Total $138 $132 4.2% Q2 FY25 Q2 FY24 % Change Net Sales $114 $108 5.5% Fx Impact - (2) Acquisitions (3) - Total $111 $106 4.4% Q2 FY25 Q2 FY24 % Change Net Sales $27 $27 -0.2% Fx Impact - (1) Total $27 $26 3.4% Q2 FY25 Q2 FY24 % Change Net Sales $5 $4 33.1% Fx Impact - - Total $5 $4 33.1% Other Sales - Q2 FY25 vs. Q2 FY24 IT&S Organic Sales - Q2 FY25 vs. Q2 FY24 IT&S Organic Product Sales - Q2 FY25 vs. Q2 FY24 IT&S Organic Service Sales - Q2 FY25 vs. Q2 FY24
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14 Reconciliation of Non-GAAP Measures The Enerpac Tool Group fiscal 2025 Q2 earnings release and full GAAP to non-GAAP reconciliation is available online at https://ir.enerpactoolgroup.com/ The summation of individual components may not equal the total due to rounding. (US$ in millions, except per share) Net Sales 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Enerpac Tool Group 142$ 156$ 161$ 142$ 138$ 150$ 159$ 145$ 146 EBITDA 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Net earnings from continuing operations 7$ 17$ 23$ 18$ 18$ 23$ 23$ 22$ 21 Financing costs, net 3 3 3 4 4 3 3 3 2 Income tax expense 3 5 5 6 7 7 3 6 7 Depreciation & amortization 4 4 4 3 3 3 3 4 3 EBITDA 17$ 29$ 35$ 31$ 32$ 36$ 33$ 34$ 34$ Adjusted Operating Profit 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Operating Profit 14$ 25$ 32$ 29$ 30$ 33$ 30$ 31$ 31 Impairment & divestiture (benefit) charges - - (6) 0 - - - - - Restructuring charges (1) 3 2 1 2 0 2 3 - - Leadership transition charges 0 0 0 - - - - - - M&A charges 0 0 1 - - - 0 0 0 ASCEND transformation program charges 11 6 9 1 2 2 2 - - Adjusted Operating Profit 29$ 34$ 37$ 32$ 32$ 37$ 36$ 31$ 31$ Adjusted Operating Profit % 20.2% 21.7% 23.0% 22.8% 22.8% 24.6% 22.5% 21.5% 21.4% Adjusted EBITDA 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 EBITDA 17$ 29$ 35$ 31$ 32$ 36$ 33$ 34$ 34 Impairment & divestiture (benefit) charges - - (6) - - - - - - Restructuring charges (1) 3 2 1 2 0 2 4 - - Leadership transition charges 0 0 0 - - - - - - M&A charges - - 1 - - - 0 0 0 ASCEND transformation program charges 11 6 9 1 2 2 2 - - Adjusted EBITDA 32$ 37$ 40$ 35$ 34$ 40$ 39$ 34$ 34$ Adjusted EBITDA % 22.7% 24.0% 24.9% 24.6% 24.8% 26.4% 24.3% 23.6% 23.2% Adjusted Net Earnings from Continuing Operations 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Net Earnings 4$ 12$ 22$ 18$ 18$ 26$ 24$ 22$ 21 Earnings (loss) from Discontinued Operations, net of income tax (3) (5) (1) (1) - 3 1 - - Net Earnings from Continuing Operations 7$ 17$ 23$ 18$ 18$ 23$ 23$ 22$ 21 Impairment & divestiture (benefit) charges - - (6) - - - - - - Restructuring charges (1) 3 2 1 2 0 2 3 - - Leadership transition charges 0 0 0 - - - - - - M&A charges - - 1 - - - 0 0 0 ASCEND transformation program charges 11 6 9 1 2 2 2 - - Accelerated debt issuance costs - - - - - - - - - Net tax effect of reconciling items above (2) (3) (4) - - (1) (2) 0 0 Other income tax expense - - - - 0 - - - - Adj. Net Earnings from Cont. Operations 20$ 22$ 23$ 22$ 20$ 26$ 27$ 22$ 21 Adjusted Diluted Earnings per share from Continuing Operations 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Net Earnings 0.08$ 0.22$ 0.40$ 0.32$ 0.33$ 0.47$ 0.44$ 0.40$ 0.38 Earnings (loss) from Discontinued Operations, net of income tax (0.05) (0.08) (0.02) (0.01) (0.00) 0.06 0.02 - - Net Earnings from Continuing Operations 0.12$ 0.30$ 0.41$ 0.33$ 0.33$ 0.41$ 0.43$ 0.40$ 0.38 Impairment & divestiture (benefit) charges, net of tax effect - - (0.11) 0.00 - - - - - Restructuring charges (1), net of tax effect 0.05 0.03 0.01 0.04 0.00 0.02 0.04 - - Leadership transition charges, net of tax effect 0.00 0.00 0.00 - - - - - - M&A charges, net of tax effect - - 0.01 - - - 0.00 0.00 0.00 ASCEND transformation program charges, net of tax effect 0.17 0.06 0.10 0.02 0.03 0.03 0.03 - - Accelerated debt issuance costs, net of tax effect 0.00 0.00 0.00 - - - - - - Other income tax expense - - - - 0.00 - - - - Adj. Diluted EPS from Cont. Operations 0.35$ 0.39$ 0.42$ 0.39$ 0.36$ 0.47$ 0.50$ 0.40$ 0.39
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15The Enerpac Tool Group fiscal 2025 Q2 earnings release and full GAAP to non-GAAP reconciliation is available online at https://ir.enerpactoolgroup.com/ The summation of individual components may not equal the total due to rounding. Reconciliation of Non-GAAP Measures (US$ in millions) Adjusted Selling, general and administrative expenses Q2 FY24 Q2 FY25 Selling, general and administrative expenses 41$ 41$ Selling, general and administrative expenses % 29.7% 29.1% Selling, general and administrative expenses 41$ 41$ SG&A Restructuring charges (1) 0 - Leadership transition charges - - M&A charges - (0) SG&A ASCEND transformation program charges (1) - Adjusted Selling, general and administrative expenses 39$ 41$ Adjusted Selling, general and administrative expenses % 28.4% 28.3% Free Cash Flow FY2021 FY2022 FY2023 FY2024 2Q25 YTD Cash provided by operating activities 54 52 78 81 16 Capital expenditures (12) (7) (9) (11) (12) Free Cash Flow 42 44 69 70 5
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16The Enerpac Tool Group fiscal 2025 Q2 earnings release and full GAAP to non-GAAP reconciliation is available online at https://ir.enerpactoolgroup.com/ The summation of individual components may not equal the total due to rounding. Notes to Reconciliation of Non-GAAP Measures (1) Approximately $0.4 million of the Q4 fiscal 2024 restructuring charges were recorded in cost of products sold. (2) EBITDA represents net earnings from continuing operations before financing costs, net, income tax expense, and depreciation & amortization. Neither EBITDA nor adjusted EBITDA are calculated based upon generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA and adjusted EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Earnings. EBITDA and adjusted EBITDA should not be considered as alternatives to net earnings, operating profit or operating cash flows. The Company has presented EBITDA and adjusted EBITDA because it regularly reviews these performance measures. In addition, EBITDA and adjusted EBITDA are used by many of our investors and lenders, and are presented as a convenience to them. The EBITDA and adjusted EBITDA measures presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. (3) Organic Sales (formerly referred to as "core sales") is defined as sales excluding the impact to foreign currency changes and the impact from recent acquisitions and divestitures to net sales (4) Adjusted earnings from continuing operations and adjusted diluted earnings per share represent net earnings and diluted earnings per share per the Condensed Consolidated Statements of Earnings net of charges or credits for items to be highlighted for comparability purposes. These measures are not calculated based upon GAAP and should not be considered as an alternative to net earnings or diluted earnings per share or as an indicator of the Company's operating performance. However, this presentation is important to investors for understanding the operating results of the current portfolio of Enerpac Tool Group companies. For all reconciliations of GAAP measures to Non-GAAP measures, the summation of the individual components may not equal the total due to rounding. With respect to the earnings per share reconciliations the impact of share dilution on the calculation of the net earnings or loss per share and discontinued operations per share may result in the summation of these components not equaling the total earnings per share from continuing operations.