Slides
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Second Quarter 2025 Earnings Review August 5, 2025
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Forward-Looking Statements 2Second Quarter 2025 Earnings Review Statements in this presentation that express a belief, expectation or intention, including the 2025 guidance and other statements that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: economic conditions in the markets served by the company’s businesses and the businesses of its customers, some of which are cyclical and experience periodic downturns and may be affected by the imposition or threat of imposition of tariffs; the impact of geopolitical activity on those markets, including instabilities associated with the armed conflicts in Ukraine and in the Middle East region and any conflict or threat of conflict that may affect Taiwan; uncertainties with respect to the imposition, or threat of imposition, of government tariffs, including the significant tariffs announced by the U.S. government in 2025, and retaliatory tariffs announced in response thereto; uncertainties with respect to the imposition of government embargoes and other trade protection measures, such as “anti-dumping” duties applicable to classes of products, and import or export licensing requirements, as well as the imposition of trade sanctions against a class of products imported from or sold and exported to, or the loss of “normal trade relations” status with, countries in which Enpro conducts business, could significantly increase the company’s cost of products or otherwise reduce its sales and harm its business; uncertainties with respect to prices and availability of raw materials, including as a result of instabilities from geopolitical conflicts and the imposition of tariffs; uncertainties with respect to the company’s ability to achieve anticipated growth within the semiconductor, life sciences, and other technology-enabled markets, including uncertainties with respect to receipt of CHIPS Act support and the timing of completion of the new Arizonafacility; the impact of fluctuations in relevant foreign currency exchange rates or unanticipated increases in applicable interest rates; unanticipated delays or problems in introducing new products; the impact of any labor disputes; announcements by competitors of new products, services or technological innovations; changes inthe company’s pricing policies or the pricing policies of its competitors; risks related to the reliance of the Advanced Surface Technologies segment on a small number of significant customers; uncertainties with respect to the company’s ability to identify and complete business acquisitions consistent with its strategy and to successfully integrate any businesses that it acquires; and uncertainties with respect to the amount of any payments required to satisfy contingent liabilities, including those related to discontinued operations, other divested businesses and discontinued operations of the company’s predecessors, including liabilities for certain products, environmental matters, employee benefit and statutory severance obligations and other matters. Enpro’s filings with the Securities and Exchange Commission, including its most recent Form 10-K and 10- Q reports, describe these and other risks and uncertainties in more detail. Enpro does not undertake to update any forward-looking statements made in this press release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based. Full-year guidance is subject to the risks and uncertainties discussed above and specifically excludes changes in the number of shares outstanding, impacts from future and pending acquisitions, dispositions and related transaction costs, restructuring costs and the impact of changes in foreign exchange rates, in each case subsequent to June 30, 2025, and any incremental impact on demands and costs arising from tariffs announced, or trade tensions arising, subsequent to August 4, 2025. This presentation also contains certain non-GAAP financial measures (*) as defined by the Securities and Exchange Commission. A reconciliation of historical non-GAAP measures to the most directly comparable GAAP equivalents is included as an appendix to this presentation. Adjusted EBITDA and adjusted diluted earnings per share anticipated for the full-year 2025 are calculated in a manner consistent with the historical presentation of these measures in the appendix. Because of the forward- looking nature of these estimates, it is impractical to present quantitative reconciliations of such measures to comparable GAAP measures, and accordingly no such GAAP measures are presented.
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Second Quarter 2025 Update Eric Vaillancourt President & Chief Executive Officer
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Overview of Financial Results Joe Bruderek Executive Vice President & Chief Financial Officer
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Second Quarter 2025 Financial Performance 5 $ in millions, except per share data * Non-GAAP measure; refer to appendix for reconciliation to GAAP. • Strength in aerospace and food and pharma applications, precision cleaning, and optical coatings markets, as well as firm general industrial demand and improved demand for certain in-chamber semiconductor tools and assemblies more than offset continued soft commercial vehicle OEM demand and timing of nuclear orders • Organic sales increased 5.6% year over year • Strong sales performance drove the increase in gross profit • Gross margin narrowed slightly primarily due to increased expenses supporting growth initiatives and timing of nuclear orders • Adjusted EBITDA* of $71.1 million decreased 3.9% primarily due to increased operating expenses supporting growth initiatives and transactional foreign exchange headwinds • Adjusted EBITDA margin* was 24.7% • Adjusted diluted earnings per share of $2.03 was down slightly from last year driven by the factors impacting adjusted EBITDA Adjusted Diluted EPS*Adjusted EBITDA* & Margin*Gross Profit & MarginSales +6.0% +4.9% -3.9% -2.4% Second Quarter 2025 Earnings Review
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Sealing Technologies – Second Quarter 2025 Performance 6 $ in millions Adjusted EBITDA & MarginSales • Sales increased year-over-year as strength in aerospace and food and pharma demand, firm general industrial performance and strategic pricing more than offset continued softness in the commercial vehicle OEM market. Timing of nuclear deliveries also impacted the year-over-year comparison • Adjusted segment EBITDA of $63.3 million decreased 3.2% compared to the prior-year period • Adjusted segment EBITDA margin contracted 170 bps to 33.8% driven by transactional foreign exchange headwinds and timing of nuclear deliveries. Last year, segment profitability exceeded 35% for the first time • Sequentially, adjusted segment EBITDA margin expanded 110 bps +1.9% -3.2% Second Quarter 2025 Earnings Review
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Advanced Surface Technologies – Second Quarter 2025 Performance • Sales increase driven primarily by growth in leading-edge precision cleaning solutions and optical coatings, as well as improved demand for certain in-chamber semiconductor tools and assemblies • Adjusted segment EBITDA increased 3.7% • Operating leverage on sales growth was offset primarily by transactional foreign currency headwinds and increased operating expenses supporting growth initiatives 7 Adjusted EBITDA & MarginSales +14.5% +3.7% Second Quarter 2025 Earnings Review $ in millions
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Balance Sheet, Cash Flow & Capital Allocation 8 • Upsized senior notes to $450M (2033) and doubled revolving credit facility to $800M (2030) • Revolving credit facility with $770M2 of capacity as of June 30, 2025 • Current leverage ratio of 1.4x trailing 12-month adjusted EBITDA* • Free cash flow* for the six months ended June 30, 2025 was $52.8M, up from $35.5M from the prior year • Paid $13.2M in dividends for the six months ended June 30, 2025 1 Outstanding balance of debt instrument. 2 The $770.4M available for borrowing under revolver is net of outstanding borrowings and letters of credit totaling $29.6M. * Non-GAAP measure; refer to appendix for reconciliation to GAAP. CommentaryNet Leverage Second Quarter 2025 Earnings Review $ in millions Reported June 30, 2025 $800M Revolving Credit Facility $ 20 Senior Notes1 $ 450 Capital Lease Obligations $ 1 A Debt Components $ 471 B Cash and Cash Equivalents $ 107 C = (A – B) Net Debt $ 364
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2025 Guidance 9 (1) Full-year guidance excludes changes in the number of shares outstanding, impacts from future and pending acquisitions, dispositions and related transaction costs, restructuring costs, and the impact of foreign exchange rate changes, in each case, subsequent to the end of the second quarter, any incremental impact on demand and costs arising from tariffs announced, or trade tensions arising, subsequent to August 4, 2025, increases in interest rates beyond those assumed in the preparation of the guidance, impacts from geopolitical activity, including the outbreak (or threat of outbreak) of armed hostilities, and environmental and litigation charges. (2) Amortization of acquisition-related intangible assets of $75 million excluded from the calculation of adjusted diluted EPS. 2025 Guidance (as of August 5, 2025) Prior 2025 Guidance (as of May 6, 2025) Revenue Growth(1) 5% to 7% Low to Mid-Single Digits Adjusted EBITDA*(1) $270M – $280M $262M – $277M Adjusted Diluted EPS*(1)(2) $7.60 – $8.10 $7.00 – $7.70 ~$100-101M Depreciation and Amortization(2) ~$50M Capital Expenditures ~$26-28M Net Interest Expense (From $34M-$36M previously) 25% Normalized Tax Rate Second Quarter 2025 Earnings Review
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Closing Comments Eric Vaillancourt President & Chief Executive Officer
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Q&A
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Appendix
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Enpro (NYSE: NPO) | Attractive Portfolio of Businesses 13 Leading Provider of Highly-Engineered Solutions for Critical Applications Company Overview Headquarters Charlotte, NC Principal Manufacturing Facilities 15 Global Employees ~3,500 Financial Overview Market-Cap1 $4.4B LTM Revenue3 $1.1B LTM Adj. EBITDA (Margin)2,3 $261M (24.2%) 2025 Aftermarket Rev. % 54% Dividend Yield1 0.6% LTM Revenue Contribution as of June 30, 2025 1 As of 8/1/25; 2 Refer to appendix for Non-GAAP reconciliation; 3 As of 6/30/2025; Sales by MarketSales by GeographySales by ChannelSales by Segment 2025 Q2 Earnings Review
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Reconciliation of LTM Results 14Second Quarter 2025 Earnings Review Enpro Inc. Adjusted Adjusted ($ in millions) Revenue EBITDA EBITDA Margin Six Months Ended June 30, 2025 $ 561.3 $ 138.9 24.7% Plus: Year Ended December 31, 2024 1,048.7 254.8 24.3% Less: Six Months Ended June 30, 2024 529.4 132.5 25.0% LTM Ended June 30, 2025 $ 1,080.6 $ 261.2 24.2%
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15 Consolidated Adjusted EBITDA (1/2) For the Year Ended December 31, 2024 (In Millions) 2024 Net income $ 72.9 Adjustments to arrive at earnings before interest, income taxes, depreciation, amortization, and other selected items ("Adjusted EBITDA"): Interest expense, net 34.5 Income tax expense 21.5 Depreciation and amortization expense 100.3 Restructuring and impairment expense 6.2 Environmental reserve adjustments 5.7 Costs associated with previously disposed businesses 1.4 Acquisition expenses 4.3 Pension income (non-service cost) 0.1 Asbestos receivable adjustment (0.6) Amortization of the fair value adjustment to acquisition date inventory 1.7 Foreign exchange losses related to the divestiture of a discontinued operation 1.8 Long-term promissory note reserve1 4.5 Other 0.5 Adjusted EBITDA $ 254.8 1We received a long-term promissory note in connection to the sale of a divested business. As part of our regular review of the note, in the first quarter of 2024 we concluded a reserve was needed for expected future credit losses. We monitor the note quarterly and make adjustments as needed. Second Quarter 2025 Earnings Review
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Consolidated Adjusted EBITDA (2/2) 16 1 We received a long-term promissory note in connection to the sale of a divested business. As part of our regular review of the note, in the first quarter of 2024 we concluded a reserve was needed for expected future credit losses. We monitor the note quarterly and make adjustments as needed. For the Quarters and Six Months Ended June 30, 2025 and 2024 Quarters Ended June 30, Six Months Ended June 30, (In Millions) 2025 2024 2025 2024 Net income $ 26.4 $ 26.7 $ 50.9 $ 39.2 Adjustments to arrive at earnings before interest, income taxes, depreciation, amortization, and other selected items ("Adjusted EBITDA"): Interest expense, net 7.5 9.5 15.5 17.7 Income tax expense 9.1 9.7 16.9 11.5 Depreciation and amortization expense 25.2 25.2 50.4 49.8 Restructuring expense (income), net (0.1) 0.7 0.6 1.5 Environmental reserve adjustments (0.7) 2.1 (0.7) 2.3 Costs associated with previously disposed businesses 0.4 0.1 0.6 0.4 Acquisition expenses 0.3 0.2 0.5 3.5 Pension expense 0.8 0.1 1.6 0.1 Asbestos receivable adjustment — (0.6) — (0.6) Amortization of the fair value adjustment to acquisition date inventory — — — 1.7 Loss on extinguishment 1.7 — 1.7 — Foreign exchange losses related to the divestiture of a discontinued operation — 0.4 0.4 0.9 Long-term promissory note reserve1 — — — 4.5 Other 0.5 (0.1) 0.5 — Adjusted EBITDA $ 71.1 $ 74.0 $ 138.9 $ 132.5 Second Quarter 2025 Earnings Review
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Segment Information (1/2) 17 Adjusted segment EBITDA is total segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition expenses, restructuring and impairment expense, amortization of the fair value adjustment to acquisition date inventory, and depreciation and amortization. Corporate expenses include general corporate administrative costs. Non-operating expenses not directly attributable to the segments, corporate expenses, net interest expense, and income taxes are not included in the computation of Adjusted Segment EBITDA. The accounting policies of the reportable segments are the same as those for the Company. For the Quarters and Six Months Ended June 30, 2025 and 2024 (In Millions) Sales Quarters Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Sealing Technologies $ 187.5 $ 184.0 $ 367.1 $ 355.6 Advanced Surface Technologies 100.9 88.1 194.7 174.1 288.4 272.1 561.8 529.7 Less: intersegment sales (0.3) (0.2) (0.5) (0.3) $ 288.1 $ 271.9 $ 561.3 $ 529.4 Net income $ 26.4 $ 26.7 $ 50.9 $ 39.2 Earnings before interest, income taxes, depreciation, amortization and other selected items (Adjusted Segment EBITDA) Quarters Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Sealing Technologies $ 63.3 $ 65.4 $ 122.0 $ 118.4 Advanced Surface Technologies 19.8 19.1 40.3 36.4 $ 83.1 $ 84.5 $ 162.3 $ 154.8 Adjusted Segment EBITDA Margin Quarters Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Sealing Technologies 33.8 % 35.5 % 33.2 % 33.3 % Advanced Surface Technologies 19.6 % 21.7 % 20.7 % 20.9 % 28.8 % 31.1 % 28.9 % 29.2 % Reconciliation of Income, Net of Tax to Adjusted Segment EBITDA Quarters Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 26.4 $ 26.7 $ 50.9 $ 39.2 Income tax expense (9.1) (9.7) (16.9) (11.5) Income before income taxes 35.5 36.4 67.8 50.7 Acquisition expenses 0.3 0.2 0.5 3.5 Amortization of the fair value adjustment to acquisition date inventory — — — 1.7 Restructuring expense (income), net (0.2) 0.6 0.5 1.1 Depreciation and amortization expense 25.2 25.2 50.4 49.8 Corporate expenses 12.1 10.5 23.4 22.7 Interest expense, net 7.5 9.5 15.5 17.7 Other expense 2.7 2.1 4.2 7.6 Adjusted Segment EBITDA $ 83.1 $ 84.5 $ 162.3 $ 154.8 Second Quarter 2025 Earnings Review
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Segment Information (2/2) 18 For the Quarters and Six Months Ended June 30, 2025 and 2024 (In Millions) Quarter Ended June 30, 2025 Sealing Technologies Advanced Surface Technologies Total Segments Acquisition and divestiture expenses $ 0.3 $ — $ 0.3 Restructuring expense (income), net $ (0.4) $ 0.2 $ (0.2) Depreciation and amortization expense $ 8.3 $ 16.9 $ 25.2 Quarter Ended June 30, 2024 Sealing Technologies Advanced Surface Technologies Total Segments Acquisition and divestiture expenses $ 0.2 $ — $ 0.2 Restructuring expense (income), net $ 0.6 $ — $ 0.6 Depreciation and amortization expense $ 8.3 $ 16.9 $ 25.2 Six Months Ended June 30, 2024 Sealing Technologies Advanced Surface Technologies Total Segments Acquisition expenses $ 3.5 $ — $ 3.5 Amortization of the fair value adjustment to acquisition date inventory $ 1.7 $ — $ 1.7 Restructuring expense (income), net $ 1.1 $ — $ 1.1 Depreciation and amortization expense $ 16.1 $ 33.7 $ 49.8 Six Months Ended June 30, 2025 Sealing Technologies Advanced Surface Technologies Total Segments Acquisition expenses $ 0.5 $ — $ 0.5 Restructuring expense (income), net $ (0.4) $ 0.9 $ 0.5 Depreciation and amortization expense $ 16.5 $ 33.9 $ 50.4 Second Quarter 2025 Earnings Review
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Consolidated Adjusted Net Income 19Second Quarter 2025 Earnings Review Management of the Company believes that it would be helpful to the readers of the financial statements to understand the impact of certain selected items on the Company's reported income and diluted earnings per share, including items that may recur from time to time. The items adjusted for in this schedule are those that are excluded by management in budgeting or projecting for performance in future periods, as they typically relate to events specific to the period in which they occur. This presentation enables readers to better compare Enpro Inc. to other diversified industrial technology companies that do not incur the sporadic impact of restructuring activities, costs associated with previously disposed of businesses, acquisitions, or other selected items. Management acknowledges that there are many items that impact a company's reported results and this list is not intended to present all items that may have impacted these results. Other adjustments are included in selling, general, and administrative, cost of sales, and other operating expenses on the consolidated statements of operations. The adjusted income tax expense presented above is calculated using a normalized company-wide effective tax rate excluding discrete items of 25.0%. Per share amounts were calculated by dividing by the weighted-average shares of diluted common stock outstanding during the periods. 1We received a long-term promissory note in connection to the sale of a divested business. As part of our regular review of the note, in the first quarter of 2024 we concluded a reserve was needed for expected future credit losses. We monitor the note quarterly and make adjustments as needed. 2 Adjusted diluted earnings per share. (In Millions, Except Per Share Data) Quarters Ended June 30, 2025 2024 $ Average common shares outstanding, diluted Per Share $ Average common shared outstanding, diluted Per Share Net income $ 26.4 21.2 $1.25 $ 26.7 21.1 $ 1.27 Income tax expense 9.1 9.7 Income before income taxes 35.5 36.4 Adjustments from selling, general, and administrative: Acquisition expenses 0.3 0.2 Amortization of acquisition-related intangible assets 19.1 19.2 Adjustments from other operating expense and cost of sales: Restructuring expense (income), net (0.1) 0.7 Adjustments from other non-operating expense: Asbestos receivable adjustment — (0.6) Environmental reserve adjustment (0.7) 2.1 Costs associated with previously disposed businesses 0.4 0.1 Pension expense - non-service cost 0.8 0.1 Loss on extinguishment 1.7 — Foreign exchange losses related to the divestiture of a discontinued operation — 0.4 Other adjustments: Other 0.5 (0.1) Adjusted income before income taxes 57.5 58.5 Adjusted income tax expense (14.4) (14.6) Adjusted net income $ 43.1 21.2 $2.03 2 $ 43.9 21.1 $ 2.08 2 (In Millions, Except Per Share Data) Six Months Ended June 30, 2025 2024 $ Average common shares outstanding, diluted Per Share $ Average common shared outstanding, diluted Per Share Net income $ 50.9 21.2 $ 2.40 $ 39.2 21.1 $ 1.86 Income tax expense 16.9 11.5 Income before income taxes 67.8 50.7 Adjustments from selling, general, and administrative: Acquisition expenses 0.5 3.5 Amortization of acquisition-related intangible assets 38.1 37.7 Adjustments from other operating expense and cost of sales: Restructuring expense (income), net 0.6 1.5 Amortization of the fair value adjustment to acquisition date inventory — 1.7 Adjustments from other non-operating expense: Asbestos receivable adjustment — (0.6) Environmental reserve adjustments (0.7) 2.3 Costs associated with previously disposed businesses 0.6 0.4 Pension expense - non-service cost 1.6 0.1 Loss on extinguishment 1.7 — Foreign exchange losses related to the divestiture of a discontinued operation 0.4 0.9 Long-term promissory note reserve 1 — 4.5 Other adjustments: Other 0.5 — Adjusted income before income taxes 111.1 102.7 Adjusted income tax expense (27.7) (25.7) Adjusted net income $ 83.4 21.2 $ 3.93 2 $ 77.0 21.1 $ 3.65 2
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Free Cash Flow 20 (In Millions) Free Cash Flow - Six Months Ended June 30, 2025 Net cash provided by operating activities $ 73.2 Purchases of property, plant, and equipment (17.9) Payments for capitalized internal-use software (2.5) $ 52.8 Free Cash Flow - Six Months Ended June 30, 2024 Net cash provided by operating activities $ 49.5 Purchases of property, plant, and equipment (13.1) Payments for capitalized internal-use software (0.9) $ 35.5 Second Quarter 2025 Earnings Review