Enerpac Tool Group Reports Second Quarter Fiscal 2026 Results

Rhea-AI Summary

Enerpac Tool Group (NYSE: EPAC) reported second quarter fiscal 2026 results with net sales of $154.8 million, a 6% increase versus prior year and 2% organic growth. Adjusted EBITDA was $33.0 million (21.3% margin). Net earnings were $16.3 million, or $0.31 diluted EPS; adjusted net earnings were $20.3 million, or $0.39 adjusted EPS.

Year-to-date operating cash flow rose to $29 million from $16 million. The company repurchased approximately $51 million of shares and reported net debt to adjusted EBITDA of 0.6x. Full-year guidance narrowed: net sales $635M–$650M; adjusted EBITDA $158M–$163M; adjusted EPS $1.85–$1.92; free cash flow $100M–$110M.

Positive

• Operating cash flow increased to $29M (vs $16M prior year)
• $51M returned to shareholders via share repurchases
• Net debt to adjusted EBITDA of 0.6x indicating low leverage

Negative

• Service revenue declined 17% organically, driven by EMEA market softness
• Gross profit margin fell 410 basis points to 46.4%
• SG&A rose due to $3.3M restructuring and $1.1M M&A charges

News Market Reaction – EPAC

-7.84%

30 alerts

-7.84% News Effect

-5.8% Trough in 21 hr 13 min

-$168M Valuation Impact

$1.98B Market Cap

0.9x Rel. Volume

On the day this news was published, EPAC declined 7.84%, reflecting a notable negative market reaction. Argus tracked a trough of -5.8% from its starting point during tracking. Our momentum scanner triggered 30 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $168M from the company's valuation, bringing the market cap to $1.98B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q2 2026 Net Sales: $154.8M Q2 2026 Net Earnings: $16.3M Q2 2026 Diluted EPS: $0.31 +5 more

8 metrics

Q2 2026 Net Sales $154.8M Three months ended February 28, 2026; up 6% year-over-year

Q2 2026 Net Earnings $16.3M Three months ended February 28, 2026; vs $20.9M prior year

Q2 2026 Diluted EPS $0.31 Three months ended February 28, 2026; vs $0.38 prior year

Q2 2026 Adjusted EPS $0.39 Three months ended February 28, 2026; equal to prior year

Q2 2026 Adjusted EBITDA $33.0M Three months ended February 28, 2026; vs $33.8M prior year

FY 2026 Net Sales Guidance $635–650M Updated full-year fiscal 2026 outlook

FY 2026 Adjusted EBITDA Guide $158–163M Updated full-year fiscal 2026 outlook

Q2 2026 Share Repurchases $51M Approximate cash returned via buybacks in second quarter

Market Reality Check

Price: $34.38 Vol: Volume 269,960 vs 20-day ...

normal vol

$34.38 Last Close

Volume Volume 269,960 vs 20-day average 361,594, indicating lighter-than-typical trading ahead of results. normal

Technical Shares at $37.53, about 20.61% below the 52-week high of $47.27 and trading below the 200-day MA of $40.2.

Peers on Argus

Momentum data flagged only one peer (MWA) moving, up ~1.84%, while the scanner s...

1 Up

Momentum data flagged only one peer (MWA) moving, up ~1.84%, while the scanner showed EPAC moving down, suggesting today’s action was stock-specific rather than a broad specialty industrial machinery move.

Historical Context

5 past events · Latest: Mar 06 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 06	Earnings call scheduling	Neutral	-4.9%	Set date for Q2 2026 earnings release and conference call.
Dec 17	Q1 2026 earnings	Negative	-8.8%	Reported modest sales decline and maintained full-year 2026 guidance.
Dec 10	Earnings call scheduling	Neutral	+4.0%	Announced timing and access details for Q1 2026 earnings call.
Oct 30	Conference participation	Neutral	-1.4%	Outlined management presentation at the Baird Global Industrial Conference.
Oct 15	FY 2025 earnings	Positive	+4.8%	Reported higher FY 2025 sales, margins, cash flow, and announced 2026 outlook.

Pattern Detected

Earnings-related releases in the past six months have often produced relatively sharp one-day moves in both directions.

Recent Company History

Over the last six months, Enerpac has alternated between corporate updates and earnings reports. The company introduced fiscal 2026 guidance with full-year net sales of $635–655M, adjusted EBITDA of $158–168M, and adjusted EPS of $1.85–2.00 in October 2025. Q1 2026 results in December 2025 showed slightly lower sales but solid margins and cash flow. The latest Q2 2026 report maintains similar revenue and earnings targets, while narrowing guidance ranges and highlighting continued capital returns via repurchases.

Market Pulse Summary

The stock moved -7.8% in the session following this news. A negative reaction despite modest top-lin...

Analysis

The stock moved -7.8% in the session following this news. A negative reaction despite modest top-line growth fits concerns around profitability and guidance. Q2 net earnings fell to $16.3M with diluted EPS of $0.31, down from $0.38 a year earlier, while adjusted EBITDA edged down to $33.0M. Management also narrowed full‑year adjusted EBITDA guidance to $158–163M. Investors may weigh these pressures against the $51M in quarterly share repurchases and relatively low leverage.

Key Terms

gaap, diluted eps, adjusted ebitda, organic sales, +4 more

8 terms

gaap financial

"This press release contains financial measures in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

diluted eps financial

"Net earnings were $16.3 million, or $0.31 per diluted share. Adjusted net earnings were $20.3 million, or $0.39 per diluted share."

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

adjusted ebitda financial

"Adjusted EBITDA was $33.0 million and adjusted EBITDA margin was 21.3%."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

organic sales financial

"On an organic basis, sales increased 2% year-over-year, consisting of 1% growth at IT&S and 27% growth at Cortland Biomedical."

Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.

free cash flow financial

"Free cash flow guidance remains unchanged at $100 million to $110 million."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

net debt to adjusted ebitda financial

"Net debt on February 28, 2026, was $88.5 million, resulting in a net debt to adjusted EBITDA ratio of 0.6 times."

Net debt to adjusted EBITDA is a leverage ratio that compares a company’s net debt (total interest-bearing debt minus cash) to its recurring operating earnings after removing one-off items. Think of it like how many years of steady take-home pay the business would need to pay off its outstanding debt; investors use it to gauge debt burden, financial risk and relative creditworthiness, with lower ratios generally indicating a safer balance sheet.

form 4 regulatory

"[Form 4] ENERPAC TOOL GROUP CORP Insider Trading Activity"

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

schedule 13g regulatory

"[SCHEDULE 13G/A] ENERPAC TOOL GROUP CORP Amended Passive Investment Disclosure"

A Schedule 13G is a formal document that investors file with the government when they acquire a large ownership stake in a company, usually for investment purposes rather than control. It helps keep the public informed about who owns significant parts of a company's shares, which can influence how the company is managed and how investors make decisions. Filing this schedule is important for transparency and understanding the ownership landscape of publicly traded companies.

AI-generated analysis. Not financial advice.

Second Quarter of Fiscal 2026 Highlights^*

• Net sales were $155 million, a 6% increase compared to the prior year, with a 2% increase in organic sales¹.
• IT&S Product sales increased 6% organically, the highest growth in 10 quarters.
• Operating profit margin was 16.2% and adjusted operating profit margin was 19.0%.
• Net earnings were $16.3 million, or $0.31 per diluted share. Adjusted net earnings were $20.3 million, or $0.39 per diluted share.
• Adjusted EBITDA was $33.0 million and adjusted EBITDA margin was 21.3%.
• Year-to-date operating cash flow was $29 million, up from $16 million in the prior year.
• Returned approximately $51 million to shareholders through share repurchases.
• Won a five-year service contract with a major UK oil & gas customer.
• Launched six new products at ConExpo, including the recently acquired Hydra Pac diesel split flow pump.
  

^*This press release contains financial measures in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) in addition to non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to the comparable GAAP measures are presented in the tables accompanying this release.

MILWAUKEE, March 25, 2026 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company” or “Enerpac”) today announced results for its fiscal second quarter ended February 28, 2026.

"We were encouraged by the performance of our product business in the second quarter of fiscal 2026," said Paul Sternlieb, Enerpac Tool Group's President & CEO. "Within the Industrial Tool & Service (IT&S) segment, product revenue increased 6 percent organically– the highest year-over-year gain in 10 quarters. We also enjoyed mid-single-digit growth in order rates, with gains in all three regions. At the same time, we took decisive action to address market-related challenges in IT&S’s EMEA region service business, with a restructuring to rightsize our cost structure to align with the softer demand environment. Additionally, the signing of a five-year service contract with a leading UK oil & gas customer, worth several million dollars annually, will support our strategic focus on higher-margin business."

Consolidated Results
(US$ in millions, except per share)
	Three Months Ended									Six Months Ended
	February 28, 2026				February 28, 2025					February 28, 2026				February 28, 2025
Net Sales	$154.8				$145.5					$299.0				$290.7
Net Earnings		16.3				20.9					35.4				42.6
Diluted EPS		0.31				0.38					0.67				0.78
Adjusted Diluted EPS		0.39				0.39					0.75				0.79
Adjusted EBITDA		33.0				33.8					65.3				68.1

Second Quarter Fiscal 2026 Consolidated Results Comparisons

Consolidated net sales for the second quarter of fiscal 2026 were $154.8 million compared to $145.5 million in the prior-year period, an increase of 6%. On an organic basis, sales increased 2% year-over-year, consisting of 1% growth at IT&S and 27% growth at Cortland Biomedical.

Within IT&S, product sales increased 6% organically while service revenue declined 17% organically year over year due to market softness, particularly in the EMEA region.

Gross profit margin declined 410 basis points year-over-year to 46.4% due to continued pressure on the service business. Gross margins on the product business remained strong.

Selling, general and administrative expenses (SG&A) of $45.3 million increased $3.9 million year-over-year. The increase in SG&A expense was driven by restructuring charges of $3.3 million related primarily to the service business in the EMEA region and M&A charges of $1.1 million in the second quarter of fiscal 2026. Adjusted SG&A expense, excluding restructuring and M&A charges, improved 190 basis points as a percent of sales to 26.4%.

Second quarter fiscal 2026 net earnings and diluted EPS were $16.3 million and $0.31 respectively, compared to $20.9 million and $0.38, respectively, in the year-ago period.

Second quarter adjusted EBITDA was $33.0 million compared to $33.8 million in the year-ago period. Adjusted EBITDA margin declined 190 basis points year-over-year to 21.3%.

Through the first six months of fiscal 2026, the company generated $29 million in cash from operations, up from $16 million in the prior year comparable period.

Balance Sheet and Leverage
(US$ in millions)		February 28, 2026		November 30, 2025		February 28, 2025
Cash Balance		$98.7		$139.0		$119.5
Debt Balance		$187.3		$188.5		$192.1
Net Debt to Adjusted EBITDA2		0.6x		0.3x		0.5x

Net debt on February 28, 2026, was $88.5 million, resulting in a net debt to adjusted EBITDA ratio of 0.6 times. The Company repurchased approximately 1.3 million shares of its common stock in the second quarter of fiscal 2026 for a total of $51 million under its share repurchase program announced in October 2025.

Outlook

“While our product business remains quite healthy, given the market pressure on our service business in the EMEA region, which could be further exacerbated by the conflicts in the Middle East, we have updated our guidance for full-year fiscal 2026 to narrow the range,” said Darren Kozik, Executive Vice President and Chief Financial Officer.

The Company projects a net sales range of $635 million to $650 million and organic sales growth of 1% to 3%, adjusted EBITDA of $158 million to $163 million, and adjusted EPS of $1.85 to $1.92. Free cash flow guidance remains unchanged at $100 million to $110 million.

Conference Call Information

An investor conference call is scheduled for 7:30 am CT on March 26, 2026. Webcast information and conference call materials, including an earnings presentation, are available on the Enerpac Tool Group website (www.enerpactoolgroup.com).

¹Organic sales represent net sales excluding the impact of foreign exchange rates, acquisitions, and divestitures. A reconciliation of organic sales to comparable net sales is presented in the tables accompanying this release.

²Calculated in accordance with the terms of the Company’s September 2022 Senior Credit Facility.

Safe Harbor Statement

Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In addition to statements with respect to guidance, the terms “outlook,” “may,” “should,” “could,” “anticipate,” “believe,” “estimate,” “expect,” “objective,” “plan,” “project” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from the forward-looking statements, general economic uncertainty; the impact of geopolitical activity, including the armed conflicts in the Middle East, including the impact on shipping in the area and the invasion of Ukraine by Russia and international sanctions imposed in response thereto; market conditions in the industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck and automotive industries, including as a result of significant volatility in oil prices resulting from disruptions in the oil markets as a result of geopolitical activity; supply chain risks, including disruptions in deliveries from suppliers due to political tensions and armed conflicts; impacts from the imposition, or threat of imposition, of tariffs and other trade restrictions; the ability of the Company to achieve its plans or objectives related to its growth strategy; market acceptance of existing and new products; market acceptance of price increases; successful integration of acquisitions, the impact of dispositions and restructurings; the ability of the Company to continue to achieve or maintain operational improvements related to restructuring actions; operating margin risk due to competitive pricing and operating efficiencies; risks related to reliance on independent agents and distributors for the distribution and service of products; material, labor, or overhead cost increases; tax law changes; foreign currency risk; interest rate risk; commodity risk; litigation matters; cybersecurity risk; impairment of goodwill or other intangible assets; the Company’s ability to access capital markets and other risks and uncertainties that may be referred to or noted in the Company’s reports filed with the Securities and Exchange Commission from time to time, including those described in the Company’s Form 10-K for the fiscal year ended August 31, 2025. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason, except to the extent required by law.

Non-GAAP Financial Information

This press release contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net earnings, adjusted diluted earnings per share, adjusted operating profit, segment adjusted operating profit and adjusted EBITDA, adjusted corporate expense, adjusted SG&A expense, free cash flow and net debt. This press release includes reconciliations of non-GAAP measures to the most comparable GAAP measure, included in the tables attached to this press release or in footnotes to the tables included in this press release. Management believes the non-GAAP measures presented in this press release are commonly used financial measures for investors to evaluate Enerpac Tool Group’s operating performance and financial position with respect to the periods presented and, when read in conjunction with the condensed consolidated financial statements, present a useful tool to evaluate ongoing operations and provide investors with metrics they can use to evaluate aspects of the Company’s performance from period to period. In addition, these are some of the financial metrics management uses in internal evaluations of the overall performance of the Company’s business. Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. Adjusted diluted earnings per share anticipated for fiscal year 2026 is calculated in a manner consistent with the historical presentation of that measure in the accompanying tables. Because of the forward-looking nature of this estimate, it is impractical to present a quantitative reconciliation of this non-GAAP measure to the comparable GAAP measure, and accordingly no such GAAP measure for that period is being presented.

About Enerpac Tool Group

Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries. The Company makes complex, often hazardous jobs possible safely and efficiently. Enerpac Tool Group’s businesses are global leaders in high pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world. The Company was founded in 1910 and is headquartered in Milwaukee, Wisconsin. Enerpac Tool Group common stock trades on the NYSE under the symbol EPAC. For further information on Enerpac Tool Group and its businesses, visit the Company's website at www.enerpactoolgroup.com.

(tables follow)

Enerpac Tool Group Corp.
Condensed Consolidated Balance Sheets
(In thousands)
	(Unaudited)
	February 28,				August 31,
		2026				2025
Assets
Current assets
Cash and cash equivalents	$	98,719			$	151,558
Accounts receivable, net		110,106				106,085
Inventories, net		92,559				78,774
Other current assets		47,713				39,701
Total current assets		349,097				376,118
Property, plant and equipment, net		52,985				53,275
Goodwill		290,617				289,787
Other intangible assets, net		44,239				46,942
Other long-term assets		58,557				61,745
Total assets	$	795,495			$	827,867
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt	$	10,000			$	7,500
Trade accounts payable		42,330				42,944
Accrued compensation and benefits		18,417				28,108
Income taxes payable		5,898				5,425
Other current liabilities		59,775				53,125
Total current liabilities		136,420				137,102
Long-term debt, net		177,251				182,168
Deferred income taxes		7,438				6,192
Pension and postretirement benefit liabilities		6,605				7,147
Other long-term liabilities		60,246				61,564
Total liabilities		387,960				394,173
Shareholders' equity
Capital stock		10,308				10,589
Additional paid-in capital		244,208				243,137
Retained earnings		253,947				284,102
Accumulated other comprehensive loss		(100,928	)			(104,134	)
Stock held in trust		(6,654	)			(3,542	)
Deferred compensation liability		6,654				3,542
Total shareholders' equity		407,535				433,694
Total liabilities and shareholders' equity	$	795,495			$	827,867

Enerpac Tool Group Corp.
Condensed Consolidated Statements of Earnings
(In thousands)
	(Unaudited)						(Unaudited)
	Three Months Ended						Six Months Ended
	February 28,			February 28,			February 28,			February 28,
		2026			2025			2026			2025
Net sales	$	154,807		$	145,528		$	299,015		$	290,724
Cost of products sold		82,992			72,097			154,018			142,641
Gross profit		71,815			73,431			144,997			148,083
Selling, general and administrative expenses		42,042			41,423			85,137			83,741
Amortization of intangible assets		1,470			1,188			3,067			2,390
Restructuring charges		3,283			-			3,283			-
Operating profit		25,020			30,820			53,510			61,952
Financing costs, net		2,111			2,371			4,376			5,140
Other expense, net		794			750			1,463			1,237
Earnings before income tax expense		22,115			27,699			47,671			55,575
Income tax expense		5,807			6,798			12,232			12,951
Net earnings	$	16,308		$	20,901		$	35,439		$	42,624
Earnings per share
Basic	$	0.31		$	0.38		$	0.68		$	0.78
Diluted		0.31			0.38			0.67			0.78
Weighted average common shares outstanding
Basic		51,880			54,397			52,430			54,319
Diluted		52,300			54,808			52,824			54,810

Enerpac Tool Group Corp.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Six Months Ended
	February 28,				February 28,
		2026				2025
Operating Activities
Cash provided by operating activities	$	29,027			$	16,108
Investing Activities
Capital expenditures		(5,734	)			(11,517	)
Deferred acquisition payment		(949	)			-
Cash paid for business acquisitions, net of cash acquired		-				(27,196	)
Cash used in investing activities	$	(6,683	)		$	(38,713	)
Financing Activities
Principal repayments on term loan		(2,500	)			(2,500	)
Borrowings on revolving credit facility		14,000				14,421
Principal repayments on revolving credit facility		(14,000	)			(14,421	)
Purchase of treasury shares		(65,924	)			(14,555	)
Stock options, taxes paid related to the net share settlement of equity awards & other		(4,796	)			(5,847	)
Payment of cash dividend		(2,119	)			(2,167	)
Cash used in financing activities	$	(75,339	)		$	(25,069	)
Effect of exchange rate changes on cash		156				89
Net decrease from cash and cash equivalents	$	(52,839	)		$	(47,585	)
Cash and cash equivalents - beginning of period		151,558				167,094
Cash and cash equivalents - end of period	$	98,719			$	119,509

Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures
(In thousands)
	Fiscal 2025																Fiscal 2026
	Q1			Q2			Q3			Q4			TOTAL				Q1			Q2			Q3		Q4		TOTAL
Net Sales
Industrial Tools & Services Segment	$	140,134		$	140,716		$	153,374		$	161,602		$	595,825			$	137,762		$	148,685		$	-	$	-	$	286,448
Other		5,062			4,812			5,287			5,913			21,074				6,446			6,122			-		-		12,567
Enerpac Tool Group	$	145,196		$	145,528		$	158,661		$	167,515		$	616,899			$	144,208		$	154,807		$	-	$	-	$	299,015
% Net Sales Growth (Decline) Year over Year
Industrial Tools & Services Segment		2	%		4	%		5	%		5	%		4	%			-2	%		6	%		-		-		2	%
Other		3	%		33	%		19	%		10	%		15	%			27	%		27	%		-		-		27	%
Enerpac Tool Group		2	%		5	%		6	%		6	%		5	%			-1	%		6	%		-		-		3	%
Adjusted Selling, general and administrative expenses
Selling, general and administrative expenses	$	42,318		$	41,423		$	41,125		$	42,055		$	166,920			$	43,095		$	42,042		$	-	$	-	$	85,137
M&A charges (1)		(152	)		(258	)		(714	)		(292	)		(1,415	)			(91	)		(1,118	)		-		-		(1,209	)
Adjusted Selling, general and administrative expenses	$	42,166		$	41,165		$	40,411		$	41,763		$	165,505			$	43,004		$	40,924		$	-	$	-	$	83,928
Adjusted Selling, general and administrative expenses %
Enerpac Tool Group		29.0	%		28.3	%		25.5	%		24.9	%		26.8	%			29.8	%		26.4	%		-		-		28.1	%
Adjusted Operating profit
Operating profit	$	31,132		$	30,820		$	31,681		$	39,837		$	133,471			$	28,490		$	25,020		$	-	$	-	$	53,510
Restructuring charges		-			-			5,862			-			5,862				-			3,283			-		-		3,283
M&A charges		152			261			714			292			1,419				91			1,120			-		-		1,211
Adjusted Operating profit	$	31,284		$	31,081		$	38,257		$	40,129		$	140,752			$	28,581		$	29,423		$	-	$	-	$	58,004
Adjusted Operating profit by Segment
Industrial Tools & Services Segment	$	38,074		$	38,748		$	42,837		$	47,092		$	166,751			$	35,740		$	34,834		$	-	$	-	$	70,573
Other		1,319			1,301			2,083			1,360			6,063				2,214			1,595			-		-		3,809
Corporate / General		(8,109	)		(8,968	)		(6,663	)		(8,323	)		(32,062	)			(9,373	)		(7,006	)		-		-		(16,378	)
Adjusted operating profit	$	31,284		$	31,081		$	38,257		$	40,129		$	140,752			$	28,581		$	29,423		$	-	$	-	$	58,004
Adjusted Operating profit %
Industrial Tools & Services Segment		27.2	%		27.5	%		27.9	%		29.1	%		28.0	%			25.9	%		23.4	%		-		-		24.6	%
Other		26.1	%		27.0	%		39.4	%		23.0	%		28.8	%			34.3	%		26.1	%		-		-		30.3	%
Adjusted Operating Profit %		21.5	%		21.4	%		24.1	%		24.0	%		22.8	%			19.8	%		19.0	%		-		-		19.4	%
EBITDA (2)
Net earnings	$	21,723		$	20,901		$	22,044		$	28,080		$	92,749			$	19,131		$	16,308		$	-	$	-	$	35,439
Financing costs, net		2,770			2,371			2,395			2,376			9,911				2,265			2,111			-		-		4,376
Income tax expense		6,152			6,798			6,295			8,734			27,980				6,426			5,807			-		-		12,232
Depreciation & amortization		3,514			3,471			3,721			4,968			15,674				4,448			4,336			-		-		8,784
EBITDA	$	34,159		$	33,541		$	34,455		$	44,158		$	146,314			$	32,270		$	28,562		$	-	$	-	$	60,831
Adjusted EBITDA (2)
EBITDA	$	34,159		$	33,541		$	34,455		$	44,158		$	146,314			$	32,270		$	28,562		$	-	$	-	$	60,831
Restructuring charges		-			-			5,862			-			5,862				-			3,283			-		-		3,283
M&A charges		152			261			714			292			1,419				91			1,120			-		-		1,211
Adjusted EBITDA (2)	$	34,311		$	33,802		$	41,031		$	44,450		$	153,595			$	32,361		$	32,965		$	-	$	-	$	65,325
Adjusted EBITDA (2) by Segment
Industrial Tools & Services Segment	$	40,807		$	41,313		$	45,317		$	50,726		$	178,163			$	38,903		$	37,916		$	-	$	-	$	76,818
Other		1,546			1,525			2,309			1,579			6,959				2,462			1,808			-		-		4,270
Corporate / General		(8,042	)		(9,036	)		(6,595	)		(7,855	)		(31,527	)			(9,004	)		(6,759	)		-		-		(15,763	)
Adjusted EBITDA (2)	$	34,311		$	33,802		$	41,031		$	44,450		$	153,595			$	32,361		$	32,965		$	-	$	-	$	65,325
Adjusted EBITDA % (2)
Industrial Tools & Services Segment		29.1	%		29.4	%		29.5	%		31.4	%		29.9	%			28.2	%		25.5	%		-		-		26.8	%
Other		30.5	%		31.7	%		43.7	%		26.7	%		33.0	%			38.2	%		29.5	%		-		-		34.0	%
Adjusted EBITDA % (2)		23.6	%		23.2	%		25.9	%		26.5	%		24.9	%			22.4	%		21.3	%		-		-		21.8	%
Notes:
(1) Minimal amounts of M&A Charges were recorded in cost of products sold in Q2 Fiscal 2026 and 2025
(2) EBITDA represents net earnings before financing costs, net, income tax expense, and depreciation & amortization. Neither EBITDA nor adjusted EBITDA are calculated based upon generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA and adjusted EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Earnings. EBITDA and adjusted EBITDA should not be considered as alternatives to net earnings, operating profit or operating cash flows. The Company has presented EBITDA and adjusted EBITDA because it regularly reviews these performance measures. In addition, EBITDA and adjusted EBITDA are used by many of our investors and lenders, and are presented as a convenience to them. The EBITDA and adjusted EBITDA measures presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.

Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures (Continued)
(In thousands)
	Fiscal 2025							Fiscal 2026
	Q1		Q2		YTD			Q1			Q2			YTD
Net Sales
Industrial Tools & Services Segment	$	140,134	$	140,716	$	280,850		$	137,762		$	148,685		$	286,448
Other		5,062		4,812		9,874			6,446			6,122			12,567
Enerpac Tool Group	$	145,196	$	145,528	$	290,724		$	144,208		$	154,807		$	299,015
Adjustment: Fx Impact on Net Sales
Industrial Tools & Services Segment	$	2,532	$	6,057	$	8,589		$	-		$	-		$	-
Other		-		-		-			-			-			-
Enerpac Tool Group	$	2,532	$	6,057	$	8,589		$	-		$	-		$	-
Adjustment: Impact from Divestitures or Acquisitions on Net Sales
Industrial Tools & Services Segment		-		-		-			-			-			-
Other		-		-		-			-			-			-
Enerpac Tool Group	$	-	$	-	$	-		$	-		$	-		$	-
Organic Sales by Segment (3)
Industrial Tools & Services Segment	$	142,666	$	146,773	$	289,439		$	137,762		$	148,685		$	286,448
Other		5,062		4,812		9,874			6,446			6,122			12,567
Enerpac Tool Group	$	147,728	$	151,585	$	299,313		$	144,208		$	154,807		$	299,015
Organic Sales Growth (Decline) % (3)
Industrial Tools & Services Segment									(3	%)		1	%		(1	%)
Other									27	%		27	%		27	%
Enerpac Tool Group									(2	%)		2	%		(0	%)
Industrial Tools & Services Segment Net Sales by Product Line
Industrial Tools & Services Product	$	106,087	$	113,880	$	219,966		$	112,111		$	125,313		$	237,425
Industrial Tools & Services Service		34,047		26,836		60,884			25,651			23,372			49,023
Industrial Tools & Services Segment	$	140,134	$	140,716	$	280,850		$	137,762		$	148,685		$	286,448
Adjustment: Fx Impact on Net Sales
Industrial Tools & Services Product	$	1,760	$	4,788	$	6,549		$	-		$	-		$	-
Industrial Tools & Services Service		772		1,269		2,040			-			-			-
Industrial Tools & Services Segment	$	2,532	$	6,057	$	8,589		$	-		$	-		$	-
Adjustment: Impact from Divestitures or Acquisitions on Net Sales
Industrial Tools & Services Product		-		-		-			-			-			-
Industrial Tools & Services Service		-		-		-			-			-			-
Industrial Tools & Services Segment	$	-	$	-	$	-		$	-		$	-		$	-
Industrial Tools & Services Segment Organic Sales by Product Line (3)
Industrial Tools & Services Product	$	107,847	$	118,668	$	226,515		$	112,111		$	125,313		$	237,425
Industrial Tools & Services Service		34,819		28,105		62,924			25,651			23,372			49,023
Industrial Tools & Services Segment	$	142,666	$	146,773	$	289,439		$	137,762		$	148,685		$	286,448
Organic Sales Growth (Decline) % (3)
Industrial Tools & Services Product									4	%		6	%		5	%
Industrial Tools & Services Service									(26	%)		(17	%)		(22	%)
Industrial Tools & Services Segment									(3	%)		1	%		(1	%)
Notes continued:
(3) Organic Sales is defined as sales excluding the impact to foreign currency changes and the impact from recent acquisitions and divestitures to net sales.

Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures (Continued)
(In thousands, except for per share amounts)
	Fiscal 2025															Fiscal 2026
	Q1			Q2		Q3			Q4			TOTAL				Q1			Q2			Q3		Q4		TOTAL
Adjusted Earnings (4)
Net Earnings	$	21,723		$	20,901	$	22,044		$	28,080		$	92,749			$	19,131		$	16,308		$	-	$	-	$	35,439
Restructuring charges		-			-		5,862			-			5,862				-			3,283			-		-		3,283
M&A charges		152			261		714			292			1,419				91			1,120			-		-		1,211
Net tax effect of reconciling items above		(4	)		1		(910	)		(492	)		(1,406	)			(20	)		(365	)		-		-		(385	)
Adjusted Net Earnings	$	21,871		$	21,163	$	27,710		$	27,880		$	98,624			$	19,202		$	20,346		$	-	$	-	$	39,548
Adjusted Diluted Earnings per share (4)
Net Earnings	$	0.40		$	0.38	$	0.41		$	0.52		$	1.70			$	0.36		$	0.31		$	-	$	-	$	0.67
Restructuring charges, net of tax effect		-			-		0.09			(0.01	)		0.09				-			0.06			-		-		0.06
M&A charges, net of tax effect		0.00			0.00		0.01			0.00			0.02				0.00			0.02			-		-		0.02
Adjusted Diluted Earnings per share	$	0.40		$	0.39	$	0.51		$	0.52		$	1.81			$	0.36		$	0.39		$	-	$	-	$	0.75
Notes continued:
(4) Adjusted earnings and adjusted diluted earnings per share represent net earnings and diluted earnings per share per the Condensed Consolidated Statements of Earnings net of charges or credits for items to be highlighted for comparability purposes. These measures are not calculated based upon GAAP and should not be considered as an alternative to net earnings or diluted earnings per share or as an indicator of the Company's operating performance. However, this presentation is important to investors for understanding the operating results of the current portfolio of Enerpac Tool Group companies.
For all reconciliations of GAAP measures to Non-GAAP measures, the summation of the individual components may not equal the total due to rounding.

Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP To Non-GAAP Guidance
(In millions)
	Fiscal 2026
	Low			High
Reconciliation of GAAP Operating Profit to Adjusted EBITDA (4)
GAAP Operating profit	$	141		$	148
Other expense, net		(1	)		(1	)
Depreciation & amortization		18			16
Adjusted EBITDA	$	158		$	163
Reconciliation of GAAP Cash Flow From Operations to Free Cash Flow
Cash provided by operating activities	$	115		$	120
Capital expenditures		(15	)		(10	)
Free Cash Flow	$	100		$	110
Notes continued:
(4) Management does not provide guidance on certain GAAP financial measures as we are unable to predict and estimate with certainty items such as potential impairments, refinancing costs, business divestiture gains/losses, discrete tax adjustments, or other items impacting GAAP financial metrics. As a result, we have included only those items about which we are aware and are reasonably likely to occur during the guidance period covered.

Contact:
Investor Relations
investor.relations@enerpac.com 

FAQ

What were Enerpac (EPAC) Q2 fiscal 2026 net sales and organic growth?

EPAC reported $154.8 million in Q2 net sales with 2% organic growth. According to the company, product sales grew while service revenue weakened, producing a 6% overall year-over-year sales increase.

How did Enerpac (EPAC) perform on profitability in Q2 FY2026?

EPAC posted adjusted EBITDA of $33.0 million and an adjusted EBITDA margin of 21.3%. According to the company, margins were pressured by the service business despite strong product margins.

What cash generation and shareholder returns did Enerpac (EPAC) report for Q2 2026?

Year-to-date operating cash flow rose to $29 million and the company repurchased $51 million of stock. According to the company, buybacks occurred under the October 2025 repurchase program.

Why did Enerpac (EPAC) report weaker margins in Q2 fiscal 2026?

Margins declined due to softer service demand and region-specific pressures, causing a 410 bps gross margin drop. According to the company, EMEA service softness and restructuring weighed on profitability.

What guidance did Enerpac (EPAC) provide for full-year fiscal 2026?

EPAC narrowed guidance to $635M–$650M net sales, adjusted EBITDA of $158M–$163M, and adjusted EPS of $1.85–$1.92. According to the company, free cash flow guidance remains $100M–$110M.