Enpro Inc.'s Q4 2024: Diverging Views on AstraSeal Growth, Tariff Impacts, and Market Recovery

These are the key contradictions discussed in Enpro Inc.'s latest 2024Q4 earnings call, specifically including: AstraSeal Technologies (AST) growth expectations, tariff risks, AST's growth and market recovery expectations, and the impact of tariffs:



EnPro's Financial Performance:
- EnPro Inc. reported approximately $255 million in adjusted EBITDA for 2024, up 7% year-over-year.
- The improvement was driven by strong performance in Sealing Technologies despite weak demand in semiconductor capital equipment and commercial vehicle OEM demand.

Sealing Technologies Segment Growth:
- Sales in Sealing Technologies increased by 11% in Q4, with an adjusted segment EBITDA margin of 31%.
- Growth was fueled by efficient operations, strategic pricing actions, and contributions from the AMI acquisition.

Advanced Surface Technologies' Challenges and Outlook:
- Sales in AST decreased by 6.4% year-over-year in Q4, with adjusted segment EBITDA margin improving to 22.1% sequentially.
- Weakness in semiconductor capital equipment spending was offset by strength in leading-edge applications, with expectations for high single-digit long-term growth.

Outlook for 2025:
- EnPro expects total sales growth to be in the low to mid-single-digit range in 2025, with adjusted EBITDA in the range of $262 million to $277 million.
- The outlook is informed by persistent weakness in semiconductor capital equipment demand and an expectation of low to mid-single-digit growth in WFE for the market.