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- **Revenue and Margin Excellence**: $617M revenue (+5% YoY), 24.9% EBITDA margin, $20M DTA revenue with 45% cross-sell success.
- **Growth Drivers**: 32% e-commerce growth, Saudi Arabia service center, and India mining expansion.
- **FY26 Outlook**: 1%-4% organic growth, $1.85-$2.00 EPS, $100M+ free cash flow, and $200M buyback authorization.
- **Strategic Moves**: DTA integration success, M&A pipeline expansion, and disciplined capital allocation.

**【CEO Summary Section】**
- **Record Revenue and Margin Growth**: Fiscal 2025 revenue reached $617 million (+5% YoY), with adjusted EBITDA of $154 million (24.9% margin). DTA acquisition contributed $20 million in revenue, with 45% cross-sell success to existing customers.
- **Product Innovation and Expansion**: 5 new products launched, including battery-powered torque wrenches, driving 32% e-commerce growth. New service center in Saudi Arabia and direct model in Algeria to boost margins.
- **Share Buybacks and Capital Allocation**: $69 million in share repurchases (FY25), with a new $200 million authorization approved. Free cash flow of $92 million (+32% YoY) supports M&A and growth initiatives.

**【CFO Financial Commentary】**
- **Regional Performance**: Americas (+1%), APAC (+high single digits), EMEA (-mid-single digits). APAC growth driven by India and Australia mining recovery. HLT revenue down YoY due to lumpy capital equipment demand.
- **Gross Margin and Efficiency**: 50.5% gross margin (slight YoY decline due to DTA mix). SG&A improved 80bps to 26.8% of revenue, benefiting from cost optimization and lower-cost centers.
- **FY26 Guidance**: Revenue $635-$655 million (+1%-4% organic), adjusted EBITDA $158-$168 million (+6% at midpoint). Free cash flow $100-$110 million, with $1.85-$2.00 EPS target.

**【Q&A Highlights】**
- **EMEA Challenges**: Central/Southern Europe weakness and lapping large Q4 FY24 Service projects. Q1 FY26 expects margin pressure from tariffs, but H2 recovery anticipated.
- **M&A Outlook**: Stronger deal flow and $200M buyback authorization balance capital allocation. Focus on high-quality, non-distressed targets with strategic fit.
- **Cortland Bio Growth**: Mid-teens revenue growth driven by high-margin, niche end markets. Consistent with FY26 guidance assumptions.

Enerpac Tool Group Corp. (EPAC) Q4 2025 Earnings Call Transcript

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