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- **Q3 Growth**: 10% organic sales, driven by 17% AST growth and 5.7% Sealing Technologies expansion. Adjusted EBITDA margin 24.2%.
- **Acquisition Boost**: $60+ million 2026 revenue from Overlook and AlpHa, with $17-18 million EBITDA contribution.
- **Segment Momentum**: Sealing Technologies targeting mid-single-digit growth; AST precision cleaning solutions lead semiconductor node adoption.
- **Financial Strength**: 14.3% EPS growth to $1.99; 2025 guidance updated to 7-8% revenue growth, $275-280 million EBITDA.
- **Future Investments**: Biopharma, aerospace, and semiconductor capacity expansions; 2026 capex to support organic and M&A growth.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Organic sales grew nearly 10%, with Sealing Technologies up 5.7% and Advanced Surface Technologies (AST) up 17.3%. Adjusted EBITDA margin was 24.2%.
- **Acquisitions**: Overlook Industries and AlpHa Measurement Solutions, closing in Q4, are expected to contribute $60+ million in 2026 revenue and $17-18 million in EBITDA. Both fit Enpro's strategic growth criteria.
- **Segment Growth**: Sealing Technologies targets mid-single-digit revenue growth; AST aims for high single to low double-digit growth. AST's precision cleaning solutions are driving advanced semiconductor node adoption.
- **Investments**: Expanding capacity in aerospace, biopharma, and semiconductor sectors to support long-term growth. Overlook enhances biopharma single-use technologies, while AlpHa broadens sensing capabilities.

**【CFO Financial Commentary】**
- **Q3 Financials**: Revenue $286.6 million (+9.8% YoY), adjusted EBITDA $69.3 million (+8%), adjusted EPS $1.99 (+14.3%).
- **Segment Margins**: Sealing Technologies EBITDA margin >32%; AST margin 20.1%, impacted by mix and investments.
- **Updated Guidance**: Full-year 2025 revenue growth 7-8%, EBITDA $275-280 million, EPS $7.75-8.05. Acquisitions contribute ~$10 million Q4 revenue.
- **Balance Sheet**: Net leverage ~1.2x; 2025 free cash flow $105 million. Share buyback authorization remains at $50 million.

**【Q&A Highlights】**
- **Acquisition Impact**: Both businesses expected to grow high single to low double-digit, with margins meeting or exceeding core. Overlook's biopharma expertise and AlpHa's sensing tech complement Enpro's portfolio.
- **AST Dynamics**: $12 million legacy tools sales in 2025 reflect regional demand shifts. 2026 outlook: choppy Q1-Q2, stronger H2 with advanced node qualification.
- **Compositional Analysis**: AMI and AlpHa acquisitions expand into liquid/gas sensing, targeting industrial, environmental, and biopharma markets. Additional M&A opportunities exist in this space.
- **CapEx Outlook**: ~$50 million 2025, supporting growth in semiconductor, biopharma, and aerospace. 2026 capex expected to remain elevated for organic expansion.


Enpro Inc. (NPO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NPO

NPO fundamentals

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