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Enerpac Tool Group EPAC Form 8-K filing Earnings

Filed
Jul 8, 2026, 8:29 AM EDT
Accession
0001171843-26-004528

EXHIBIT 99.1

Enerpac Tool Group Reports Third Quarter Fiscal 2026 Results*

Announces Definitive Agreement to Acquire SFE Group

  • Net sales were $168 million, a 6% increase compared to the prior year, with a 3% increase in organic sales¹.
  • IT&S Product sales increased 5% organically year over year.
  • Net earnings were $29.8 million, or $0.58 per diluted share. Adjusted net earnings were $31.0 million, or $0.60 per diluted share. Reported and adjusted EPS include a $0.08 benefit related to the expected refund of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
  • Year-to-date operating cash flow was $69 million, up from $56 million in the prior year.
  • Returned approximately $15 million in the quarter to shareholders through share repurchases.
  • The company has updated its Fiscal 2026 guidance to reflect current conditions.
  • For more details on the acquisition, refer to ir.enerpactoolgroup.com/news.

*******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. 1**Organic 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. MILWAUKEE, July 07, 2026 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company” or “Enerpac”) today announced results for its fiscal third quarter ended May 31, 2026.

“We were pleased with the performance of our business and the solid growth we delivered in the third quarter of fiscal 2026,” said Paul Sternlieb, Enerpac Tool Group's President & CEO. “Within the Industrial Tool & Service (IT&S) segment, product sales increased 5 percent organically year over year, reflecting the underlying strength of the business. While we saw continued market challenges in the quarter due to the conflict in the Middle East, we are encouraged by the strong sequential growth in our Service business and expect to see continued improvement as we realize the benefits of our focused commercial activities and restructuring actions over the coming quarters.”

As announced in a press release issued earlier today, Enerpac signed a definitive agreement to acquire Specialized Fabrication Equipment Group LLC (SFE Group), a global provider of specialized fabrication, welding, portable machining, and material-handling equipment. Sternlieb explained, “The acquisition of SFE Group will add a premium brand platform of complementary products with a record of strong growth and profitability, while expanding our presence in higher-growth end markets and geographies.” The press release is available on the Enerpac Tool Group investor relations website at ir.enerpactoolgroup.com/news.

Consolidated Results

US$ in millions, except per share

View SEC source
Line itemThree Months EndedMay 31, 2026Three Months EndedMay 31, 2025Nine Months EndedMay 31, 2026Nine Months EndedMay 31, 2025
Net Sales$167.6$158.7$466.6$449.4
Net Earnings29.822.065.264.7
Diluted EPS0.580.411.241.18
Adjusted Diluted EPS0.600.511.351.29
Adjusted EBITDA46.941.0112.2109.1

Third Quarter Fiscal 2026 Consolidated Results Comparisons

Consolidated net sales for the third quarter of fiscal 2026 were $167.6 million compared to $158.7 million in the prior-year period, an increase of 6%. On an organic basis, sales increased 3% year over year, consisting of 2% growth at IT&S and 25% growth at Cortland Biomedical.

Within IT&S, product sales increased 5% organically while service revenue declined 8% organically year over year. Service revenue improved 17% sequentially, demonstrating progress toward the Company’s profitable growth objectives.

Gross profit margin increased 260 basis points year over year to 53.0%, including the benefit from the expected refund of IEEPA tariffs.

Selling, general and administrative expenses (SG&A) of $45.8 million decreased $1.2 million year over year. SG&A expense includes M&A charges of $1.6 million in the third quarter of fiscal 2026 and $6.6 million of restructuring and M&A charges in the third quarter of fiscal 2025.

Third quarter fiscal 2026 net earnings and diluted EPS were $29.8 million and $0.58 respectively, compared to $22.0 million and $0.41, respectively, in the year-ago period.

Third quarter adjusted EBITDA was $46.9 million, which includes a $5.7 million net benefit from the expected refund of IEEPA tariffs, compared to $41.0 million in the year-ago period. Adjusted EBITDA margin increased 210 basis points year over year to 28.0%.

Through the first nine months of fiscal 2026, the Company generated $69 million in cash from operations, up from $56 million in the prior-year comparable period.

Balance Sheet and Leverage(US$ in millions)May 31, 2026February 28, 2026May 31, 2025
Cash Balance$115.7$98.7$140.5
Debt Balance$184.8$187.3$190.9
Net Debt to Adjusted EBITDA²0.5x0.6x0.4x

Net debt on May 31, 2026, was $69.1 million, resulting in a net debt to adjusted EBITDA ratio of 0.5 times. The Company repurchased approximately 420,000 shares of its common stock in the third quarter of fiscal 2026 for a total of $15 million under its share repurchase program announced in October 2025. Out of the $200 million authorized by the board of directors, approximately $120 million remains.

Outlook

“We were pleased with the solid organic growth in our product business as well as the sequential improvement in Service,” said Darren Kozik, Executive Vice President and Chief Financial Officer. “While we continue to implement the Service improvement plan, we expect to see near-term pressure from the Service business and geopolitical events.”

The Company has narrowed and updated its fiscal 2026 guidance:

MetricPrevious Full-Year GuidanceRevised Full-Year Guidance
Net Sales$635 million to $650 million$635 million to $645 million
Organic Growth1% to 3%1% to 2%
Adjusted EBITDA$158 million to $163 million$151 million to $156 million
Adjusted Diluted EPS$1.85 to $1.92$1.84 to $1.89
Free Cash Flow$100 million to $110 millionNo Change

Conference Call Information

An investor conference call is scheduled for 7:30 am CT on July 8, 2026. Webcast information and conference call materials, including an earnings presentation, are available on the Investor section of the Enerpac Tool Group website (www.enerpactoolgroup.com).

1**Organic 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.

2**Calculated in accordance with the terms of the Company’s September 2022 Senior Credit Facility.

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 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)

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Enerpac Tool Group Corp. · Condensed Consolidated Statements of Earnings

In thousands, except per share amounts · Unaudited · Unaudited

View SEC source
Line itemThree Months EndedMay 31, 2026Three Months EndedMay 31, 2025Nine Months EndedMay 31, 2026Nine Months EndedMay 31, 2025
Net sales$⁠167,553$158,661$466,568449,385
Cost of products sold78,76978,758232,787221,400
Gross profit88,78479,903233,781227,985
Selling, general and administrative expenses45,81941,125130,958124,865
Amortization of intangible assets1,5971,2354,6633,625
Restructuring charges-5,8623,2835,862
Operating profit41,36831,68194,87793,633
Financing costs, net2,2622,3956,6377,535
Other expense, net4139471,8752,184
Earnings before income tax expense38,69328,33986,36583,914
Income tax expense8,8956,29521,12719,246
Net earnings$⁠29,798$22,044$65,23864,668
Earnings per share
Basic$⁠0.58$0.41$1.251.19
Diluted0.580.411.241.18
Weighted average common shares outstanding
Basic51,31654,05152,05954,230
Diluted51,56854,41752,40554,679

Enerpac Tool Group Corp. · Condensed Consolidated Balance Sheets

In thousands

View SEC source
Line item(Unaudited)May 31, 2026August 31, 2025
Assets
Current assets
Cash and cash equivalents$⁠115,680151,558
Accounts receivable, net105,866106,085
Inventories, net84,99578,774
Other current assets51,97539,701
Total current assets358,516376,118
Property, plant and equipment, net54,84353,275
Goodwill289,516289,787
Other intangible assets, net44,41246,942
Other long-term assets64,25661,745
Total assets$⁠811,543827,867
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt$⁠10,0007,500
Trade accounts payable38,14642,944
Accrued compensation and benefits25,00128,108
Income taxes payable9,1785,425
Other current liabilities51,94553,125
Total current liabilities134,270137,102
Long-term debt, net174,793182,168
Deferred income taxes7,2236,192
Pension and postretirement benefit liabilities6,3497,147
Other long-term liabilities64,88061,564
Total liabilities387,515394,173
Shareholders' equity
Common stock10,22610,589
Additional paid-in capital247,909243,137
Retained earnings268,620284,102
Accumulated other comprehensive loss(102,727)(104,134)
Stock held in trust(4,860)(3,542)
Deferred compensation liability4,8603,542
Total shareholders' equity424,028433,694
Total liabilities and shareholders' equity$⁠811,543827,867

Enerpac Tool Group Corp. · Condensed Consolidated Statements of Cash Flows

In thousands · Unaudited

View SEC source
Line itemNine Months EndedMay 31, 2026Nine Months EndedMay 31, 2025
Operating Activities
Cash provided by operating activities$⁠69,26356,030
Investing Activities
Capital expenditures(9,241)(16,360)
Cash paid for business acquisitions, net of cash acquired-(26,744)
Other(2,007)-
Cash used in investing activities$⁠(11,248)(43,104)
Financing Activities
Principal repayments on term loan(5,000)(3,750)
Borrowings on revolving credit facility14,00014,421
Principal repayments on revolving credit facility(14,000)(14,421)
Purchase of treasury shares(81,134)(28,594)
Stock options and taxes paid related to the net share settlement of equity awards(4,570)(5,460)
Payment of cash dividend(2,119)(2,167)
Other(949)-
Cash used in financing activities$⁠(93,772)(39,971)
Effect of exchange rate changes on cash(121)457
Net decrease from cash and cash equivalents$⁠(35,878)(26,588)
Cash and cash equivalents - beginning of period151,558167,094
Cash and cash equivalents - end of period$⁠115,680140,506

Enerpac Tool Group Corp. · Supplemental Unaudited Data · Reconciliation of GAAP Measures to Non-GAAP Measures

Dollars in thousands

View SEC source
Line itemFiscal 2025Q1Fiscal 2025Q2Fiscal 2025Q3Fiscal 2025Q4Fiscal 2025TOTALFiscal 2026Q1Fiscal 2026Q2Fiscal 2026Q3Fiscal 2026Q4Fiscal 2026TOTAL
Net Sales
Industrial Tools & Services Segment$140,134$140,716$153,374$161,602$595,825$137,762$148,685$160,966-$447,413
Other5,0624,8125,2875,91321,0746,4466,1226,587-19,155
Enerpac Tool Group$145,196$145,528$158,661$167,515$616,899$144,208$154,807$167,553-$466,568
% Net Sales Growth (Decline) Year over Year
Industrial Tools & Services Segment2%4%5%5%4%-2%6%5%-3%
Other3%33%19%10%15%27%27%25%-26%
Enerpac Tool Group2%5%6%6%5%-1%6%6%-4%
Adjusted Selling, general and administrative expenses
Selling, general and administrative expenses$42,318$41,423$41,125$42,055$166,920$43,095$42,042$45,819-$130,958
M&A charges (1)(152)(258)(714)(292)(1,415)(91)(1,118)(1,577)-(2,786)
Adjusted Selling, general and administrative expenses$42,166$41,165$40,411$41,763$165,505$43,004$40,924$44,242-$128,172
Adjusted Selling, general and administrative expenses %
Enerpac Tool Group29.0%28.3%25.5%24.9%26.8%29.8%26.4%26.4%-27.5%
Adjusted Operating profit
Operating profit$31,132$30,820$31,681$39,837$133,471$28,490$25,020$41,368-$94,877
Restructuring charges--5,862-5,862-3,283--3,283
M&A charges1522617142921,419911,1201,577-2,788
Adjusted Operating profit$31,284$31,081$38,257$40,129$140,752$28,581$29,423$42,945-$100,948
Adjusted Operating profit by Segment
Industrial Tools & Services Segment$38,074$38,748$42,837$47,092$166,751$35,740$34,834$48,739-$119,312
Other1,3191,3012,0831,3606,0632,2141,5952,073-5,882
Corporate / General(8,109)(8,968)(6,663)(8,323)(32,062)(9,373)(7,006)(7,867)-(24,246)
Adjusted operating profit$31,284$31,081$38,257$40,129$140,752$28,581$29,423$42,945-$100,948
Adjusted Operating profit %
Industrial Tools & Services Segment27.2%27.5%27.9%29.1%28.0%25.9%23.4%30.3%-26.7%
Other26.1%27.0%39.4%23.0%28.8%34.3%26.1%31.5%-30.7%
Adjusted Operating Profit %21.5%21.4%24.1%24.0%22.8%19.8%19.0%25.6%-21.6%
EBITDA (2)
Net earnings$21,723$20,901$22,044$28,080$92,749$19,131$16,308$29,798-$65,238
Financing costs, net2,7702,3712,3952,3769,9112,2652,1112,262-6,637
Income tax expense6,1526,7986,2958,73427,9806,4265,8078,895-21,127
Depreciation & amortization3,5143,4713,7214,96815,6744,4484,3364,349-13,133
EBITDA$34,159$33,541$34,455$44,158$146,314$32,270$28,562$45,304-$106,135
Adjusted EBITDA (2)
EBITDA$34,159$33,541$34,455$44,158$146,314$32,270$28,562$45,304-$106,135
Restructuring charges--5,862-5,862-3,283--3,283
M&A charges1522617142921,419911,1201,577-2,788
Adjusted EBITDA (2)$34,311$33,802$41,031$44,450$153,595$32,361$32,965$46,881-$112,206
Adjusted EBITDA (2) by Segment
Industrial Tools & Services Segment$40,807$41,313$45,317$50,726$178,163$38,903$37,916$51,901-$128,719
Other1,5461,5252,3091,5796,9592,4621,8082,266-6,536
Corporate / General(8,042)(9,036)(6,595)(7,855)(31,527)(9,004)(6,759)(7,286)-(23,049)
Adjusted EBITDA (2)$34,311$33,802$41,031$44,450$153,595$32,361$32,965$46,881-$112,206
Adjusted EBITDA % (2)
Industrial Tools & Services Segment29.1%29.4%29.5%31.4%29.9%28.2%25.5%32.2%-28.8%
Other30.5%31.7%43.7%26.7%33.0%38.2%29.5%34.4%-34.1%
Adjusted EBITDA % (2)23.6%23.2%25.9%26.5%24.9%22.4%21.3%28.0%-24.0%
Notes:
(1) Minimal amounts of M&A Charges were recorded in cost of products sold in Q2 Fiscal 2026 and 2025
(2) EBITDA represents net earnings 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.

Enerpac Tool Group Corp. · Supplemental Unaudited Data · Reconciliation of GAAP Measures to Non-GAAP Measures (Continued)

Dollars in thousands

View SEC source
Line itemFiscal 2025Q1Fiscal 2025Q2Fiscal 2025Q3Fiscal 2025YTDFiscal 2026Q1Fiscal 2026Q2Fiscal 2026Q3Fiscal 2026YTD
Net Sales
Industrial Tools & Services Segment$140,134$140,716$153,374$434,224$137,762$148,685$160,966$447,413
Other5,0624,8125,28715,1616,4466,1226,58719,155
Enerpac Tool Group$145,196$145,528$158,661$449,385$144,208$154,807$167,553$466,568
Adjustment: Fx Impact on Net Sales
Industrial Tools & Services Segment$2,532$6,057$3,746$12,336----
Other--------
Enerpac Tool Group$2,532$6,057$3,746$12,336----
Adjustment: Impact from Divestitures or Acquisitions on Net Sales
Industrial Tools & Services Segment--------
Other--------
Enerpac Tool Group--------
Organic Sales by Segment (3)
Industrial Tools & Services Segment$142,666$146,773$157,120$446,560$137,762$148,685$160,966$447,413
Other5,0624,8125,28715,1616,4466,1226,58719,155
Enerpac Tool Group$147,728$151,585$162,407$461,721$144,208$154,807$167,553$466,568
Organic Sales Growth (Decline) % (3)
Industrial Tools & Services Segment(3%)1%2%0%
Other27%27%25%26%
Enerpac Tool Group(2%)2%3%1%
Industrial Tools & Services Segment Net Sales by Product Line
Industrial Tools & Services Product$106,087$113,880$124,308$344,274$112,111$125,313$133,531$370,956
Industrial Tools & Services Service34,04726,83629,06689,95025,65123,37227,43576,457
Industrial Tools & Services Segment$140,134$140,716$153,374$434,224$137,762$148,685$160,966$447,413
Adjustment: Fx Impact on Net Sales
Industrial Tools & Services Product$1,760$4,788$2,878$9,427----
Industrial Tools & Services Service7721,2698682,909----
Industrial Tools & Services Segment$2,532$6,057$3,746$12,336----
Adjustment: Impact from Divestitures or Acquisitions on Net Sales
Industrial Tools & Services Product--------
Industrial Tools & Services Service--------
Industrial Tools & Services Segment--------
Industrial Tools & Services Segment Organic Sales by Product Line (3)
Industrial Tools & Services Product$107,847$118,668$127,186$353,701$112,111$125,313$133,531$370,956
Industrial Tools & Services Service34,81928,10529,93492,85925,65123,37227,43576,457
Industrial Tools & Services Segment$142,666$146,773$157,120$446,560$137,762$148,685$160,966$447,413
Organic Sales Growth (Decline) % (3)
Industrial Tools & Services Product4%6%5%5%
Industrial Tools & Services Service(26%)(17%)(8%)(18%)
Industrial Tools & Services Segment(3%)1%2%0%
Notes continued:
(3) Organic Sales is defined as sales excluding the impact to foreign currency changes and the impact from recent acquisitions and divestitures to net sales.

Enerpac Tool Group Corp. · Supplemental Unaudited Data · Reconciliation of GAAP Measures to Non-GAAP Measures (Continued)

In thousands, except per share amounts

View SEC source
Line itemFiscal 2025Q1Fiscal 2025Q2Fiscal 2025Q3Fiscal 2025Q4Fiscal 2025TOTALFiscal 2026Q1Fiscal 2026Q2Fiscal 2026Q3Fiscal 2026Q4Fiscal 2026TOTAL
Adjusted Earnings (4)
Net Earnings$21,723$20,901$22,044$28,080$92,749$19,131$16,308$29,798-$65,238
Restructuring charges--5,862-5,862-3,283--3,283
M&A charges1522617142921,419911,1201,577-2,788
Net tax effect of reconciling items above(4)1(910)(492)(1,406)(20)(365)(373)-(759)
Adjusted Net Earnings$21,871$21,163$27,710$27,880$98,624$19,202$20,346$31,002-$70,550
Adjusted Diluted Earnings per share (4)
Diluted Earnings per share$0.40$0.38$0.41$0.52$1.70$0.36$0.31$0.58-$1.24
Restructuring charges, net of tax effect--0.09(0.01)0.09-0.060.00-0.05
M&A charges, net of tax effect0.000.000.010.000.020.000.020.03-0.05
Adjusted Diluted Earnings per share$0.40$0.39$0.51$0.52$1.81$0.36$0.39$0.60-$1.35
Notes continued:
(4) Adjusted earnings 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 Enerpac Tool Group.
For all reconciliations of GAAP measures to Non-GAAP measures, the summation of the individual components may not equal the total due to rounding.
Enerpac Tool Group Corp. · Supplemental Unaudited Data · Reconciliation of GAAP To Non-GAAP Guidance(In millions)Fiscal 2026LowFiscal 2026High
Reconciliation of GAAP Operating Profit
To Adjusted EBITDA (5)
GAAP Operating profit$132$139
Restructuring charges33
Other expense, net(2)(2)
Depreciation & amortization1816
Adjusted EBITDA$151$156
Reconciliation of GAAP Cash Flow From Operations to Free Cash Flow
Cash provided by operating activities$115$120
Capital expenditures(15)(10)
Free Cash Flow$100$110
Notes continued:
(5) Management does not provide guidance on certain GAAP financial measures as we are unable to predict and estimate with certainty items such as potential impairments, refinancing costs, business divestiture gains/losses, discrete tax adjustments, or other items impacting GAAP financial metrics. As a result, we have included only those items about which we are aware and are reasonably likely to occur during the guidance period covered.

Contact: Christian Audi Sr. Director, Investor Relations +1 914 771 1770­