Enpro 2025 Q1 Earnings Strong Performance as Net Income Surges 96%

Enpro (NPO) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Enpro surpassed analysts' revenue expectations with sales reaching $273.2 million, a 6.1% year-on-year increase, outperforming the anticipated $266.2 million. Adjusted EPS also exceeded forecasts, coming in at $1.90, significantly above the $1.67 expected by analysts. However, the company's full-year revenue guidance midpoint misses analysts' estimates. Nonetheless, Enpro maintains its full-year guidance for adjusted EPS and EBITDA, reflecting confidence in its fiscal strategy.

Revenue

Earnings/Net Income
Enpro's EPS rose 93.3% to $1.16 in 2025 Q1 from $0.60 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $24.50 million in 2025 Q1, marking 96.0% growth from $12.50 million in 2024 Q1. The impressive EPS growth highlights strong operational performance.

Price Action
The stock price of Enpro has climbed 5.49% during the latest trading day, has jumped 9.61% during the most recent full trading week, and has jumped 11.73% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Enpro (NPO) shares after a revenue increase quarter-over-quarter and holding for 30 days has historically resulted in poor performance over the past five years, yielding a mere 0.51% return. This significantly underperformed compared to the benchmark return of 83.12%. The strategy produced a negative excess return of -82.61% and a compound annual growth rate (CAGR) of only 0.10%. Furthermore, it exhibited a high maximum drawdown of -19.58% and a Sharpe ratio of 0.01, indicating significant risk with minimal return for the risk taken. This highlights the challenges in using this strategy for generating substantial returns over the specified period.

CEO Commentary
"Enpro's strong first quarter performance again highlights the resilience of the Enpro portfolio and reflects continued excellent execution amidst a dynamic macroeconomic backdrop," said Eric Vaillancourt, President and Chief Executive Officer. "AST grew organic sales more than 9% and expanded segment margins while continuing investments in growth initiatives. In Sealing Technologies, sales increased nearly 5% with improved profitability, as differentiated execution across the segment continues. Order rates remain positive as we enter the second quarter. Our portfolio of leading-edge products and solutions, strong balance sheet, and consistent free cash flow generation will enable us to maintain momentum as we drive long-term profitable growth."

Guidance
Enpro maintains its prior full-year 2025 guidance, expecting revenue growth in the low to mid-single-digit range. Adjusted EBITDA is projected to be between $262 million and $277 million, while adjusted diluted earnings per share are anticipated to be in the range of $7.00 to $7.70 per share. The company believes the direct cost impact of recently announced tariffs will be minimal and manageable, allowing for continued momentum amidst the broader economic environment.

Additional News
Enpro Inc. declared a regular quarterly dividend of $0.31 per share on April 30, 2025. The dividend is payable on June 18, 2025, to shareholders of record as of June 4, 2025. This announcement underscores Enpro's commitment to returning value to its shareholders. Additionally, Enpro amended its existing credit agreement on April 9, 2025, extending its revolving credit facility to 2030 and securing borrowings up to $800 million. This move enhances Enpro's financial flexibility for strategic investments. On the leadership front, there were no reported changes in the C-level management within the recent three-week period.