Enpro Delivers Strong Q4 Results, Guides for 2025 Growth

Enpro Inc. (NYSE: NPO) reported robust fourth quarter and full-year 2024 results, demonstrating the company's resilience and strategic execution despite challenging market conditions. The industrial technology solutions provider's strong performance was driven by operational excellence and strategic growth initiatives in both Sealing Technologies and Advanced Surface Technologies (AST) segments.

Fourth Quarter and Full Year 2024 Results
Enpro's fourth quarter 2024 sales increased by 3.7% year-over-year to $258.4 million, with organic sales growth of 1.2%. The company's Q4 GAAP net income improved to $13.9 million from a loss of $4.9 million last year, while adjusted EBITDA increased by 24.1% to $58.2 million. For the full year 2024, sales decreased by 1.0% to $1.05 billion, with organic sales down by 3.9%. GAAP net income rose significantly to $72.9 million from $10.8 million in 2023, driven by strong performance in Sealing Technologies and effective cost control in AST.



2025 Guidance and Outlook
Enpro introduced 2025 guidance projecting low to mid-single-digit revenue growth, adjusted EBITDA of $262-277 million, and adjusted EPS of $7.00-7.70. The company's strong market position in critical applications and operational excellence initiatives position it favorably for sustained value creation in the coming year. Enpro's robust financial position, with $236.3 million in cash and $390 million available under its credit facility, provides significant flexibility for strategic investments and acquisitions.



Enpro's Q4 2024 results demonstrate remarkable operational resilience and strategic execution, with a 24.1% increase in adjusted EBITDA to $58.2 million and margin expansion to 22.5%. The Sealing Technologies segment emerged as a standout performer, with 10.9% revenue growth and an impressive 31.8% increase in adjusted segment EBITDA. This performance, driven by aerospace and nuclear markets, showcases the segment's strong market positioning in high-value applications and robust pricing power. The segment's margin expansion to 31.0% indicates effective cost management and a focus on return on investment.

The Advanced Surface Technologies segment's performance reflects broader semiconductor industry dynamics, with revenue declining by 6.4%. However, the segment maintained relatively stable margins at 22.1%, demonstrating effective cost control and mix optimization despite volume challenges. As the semiconductor industry recovers, this segment is expected to contribute more significantly to Enpro's overall performance.

Enpro's strong balance sheet and robust free cash flow position the company to further organic growth initiatives and strategic acquisitions in 2025. The company's ability to navigate market environments with solid execution and disciplined cost mitigation efforts, combined with its focus on return on investment and continuous improvement initiatives, underscores its resiliency and positions it favorably for sustained value creation. Enpro's 2025 guidance suggests continued momentum, with projected adjusted EBITDA of $262-277 million and adjusted EPS of $7.00-7.70, reflecting the company's strong market position and operational excellence.