Enpro Reports Second Quarter 2026 Results; Raises Full-Year Guidance

Second Quarter 2026 Highlights

(All results reflect comparisons to prior-year period, unless otherwise noted)

• Sales of $338.8 million up 17.6%
• AST sales up 21.8%; Sealing Technologies sales up 15.3%
• Net income of $27.1 million versus $26.4 million
• Adjusted EBITDA* of $86.9 million versus $71.1 million
• GAAP diluted earnings per share of $1.27 versus $1.25
• Adjusted diluted earnings per share* of $2.50 versus $2.03
• Raising full-year 2026 guidance:  Revenue growth in the range of 14% to 16%, adjusted EBITDA* in the range of $330 million to $340 million, and adjusted diluted earnings per share* in the range of $9.30 to $9.80

CHARLOTTE, N.C.--(BUSINESS WIRE)--Enpro Inc. (NYSE: NPO) today announced its financial results for the second quarter ended June 30, 2026.

“Enpro delivered a strong second quarter with sales increasing 17.6% year-over-year, driven by accelerating semiconductor industry demand, solid organic performance in Sealing Technologies, and contributions from recent acquisitions," said Eric Vaillancourt, President and Chief Executive Officer. "Demand for our products and solutions supporting leading-edge chip production remains healthy, and we expect AST sales growth to accelerate in the second half of 2026 as a result. We also expect organic growth in Sealing Technologies to strengthen in the second half, while maintaining strong profit levels. Reflecting our robust performance and positive momentum in key growth areas of the portfolio, we are raising our full-year 2026 guidance."

"As we advance our Enpro 3.0 strategy, we continue to invest across the organization to support customer demand trends and drive long-term growth and value creation. At the same time, we continue to selectively pursue strategic acquisitions with our strong balance sheet," Mr. Vaillancourt continued.

Financial Highlights

(Dollars in millions except per share data)

Second Quarter 2026 Consolidated Results

Sales of $338.8 million increased 17.6% compared to last year and 10.9% organically. Strong demand for semiconductor products and solutions, double-digit growth in domestic general industrial markets, strength in aerospace and compositional analysis applications, as well as strategic pricing initiatives, more than offset continued slow commercial vehicle demand in North America and tepid general industrial and food and biopharmaceutical sales in Europe.

Corporate expense of $15.7 million in the second quarter of 2026 increased from $12.1 million last year primarily due to higher incentive compensation accruals and $1.3 million in restructuring costs.

Net income was $27.1 million, compared to $26.4 million last year. Diluted earnings per share were $1.27, compared to $1.25 in the prior year. Operating leverage from revenue growth was largely offset by a $16.1 million increase in reserves addressing legacy environmental liabilities and increased expenses supporting growth initiatives.

Adjusted net income* of $53.5 million increased 24.1% compared to the second quarter of 2025 and adjusted diluted earnings per share* increased 23.2% to $2.50, versus $2.03 last year.

Adjusted EBITDA* of $86.9 million, or 25.6% of total sales, increased 22.2% year-over-year. Higher sales drove the increase, offset in part by increased operating expenses supporting growth initiatives.

Second Quarter 2026 Segment Highlights

Sealing Technologies - Safeguarding environments with critical applications in diverse end markets — Garlock, STEMCO, and Technetics Group

• Sales increased 15.3% over last year. Excluding foreign exchange translation and contributions from the acquisitions of AlpHa Measurement Solutions and Overlook Industries completed in the fourth quarter of 2025, sales increased 5.0%. Strength in aerospace solutions, double-digit growth in domestic general industrial markets, solid demand growth for compositional analysis applications, as well as strategic pricing initiatives, were offset by continued soft demand in commercial vehicle markets and slow European general industrial and food and biopharmaceutical demand.
• Adjusted segment EBITDA of $71.7 million was up 13.3% year-over-year, with adjusted segment EBITDA margin remaining strong at 33.2%. Excluding foreign exchange translation and contributions from the recently completed acquisitions, adjusted segment EBITDA increased 3.8%.

Advanced Surface Technologies - Leading edge precision manufacturing, coatings, cleaning and refurbishment solutions and innovative optical coatings — NxEdge, Technetics Semi, LeanTeq, and Alluxa

• Sales increased 21.8% organically. Strong performance in leading-edge precision cleaning solutions and healthy demand for semiconductor capital equipment were the primary growth drivers.
• Adjusted segment EBITDA increased 48.5%, with adjusted segment EBITDA margin up 430 basis points to 23.9%. Strong sales growth, fixed cost absorption, and foreign exchange tailwinds drove improved AST operating leverage during the quarter, despite continued investments supporting a strong growth outlook for the segment.

Balance Sheet, Cash Flow and Capital Allocation

During the six months ended June 30, 2026, the company generated $90.9 million of cash flow from operating activities and $61.4 million of free cash flow, net of $29.5 million in capital expenditures. This compares to $73.2 million of cash flow from operating activities, or $52.8 million of free cash flow, net of $20.4 million in capital expenditures last year. Higher net income and lower cash taxes were the primary drivers of these increases in cash flow, partially offset by investment in working capital supporting increased customer demand.

During the second quarter, the company paid a regular quarterly dividend of $0.32 per share, with dividend payments totaling $13.8 million for the six months ended June 30, 2026.

Enpro ended the second quarter with total debt of $575.5 million and cash and cash equivalents of $77.0 million, after reducing outstanding revolving debt by $30 million during the second quarter, resulting in a net leverage ratio of 1.6x to trailing twelve month adjusted EBITDA.

Quarterly Dividend

Enpro declared a regular quarterly dividend of $0.32 per share on July 30, 2026. The dividend is payable on September 16, 2026, to shareholders of record as of the close of business on September 2, 2026.

2026 Guidance Increase

Enpro is raising guidance for full-year 2026 and now expects revenue growth in the range of 14%-16%, adjusted EBITDA* in the range of $330 million to $340 million and adjusted diluted earnings per share* in the range of $9.30 to $9.80.

This compares to the prior guidance of revenue growth of 10%-14%, adjusted EBITDA* in the range of $315 million to $330 million and adjusted diluted earnings per share* in the range of $8.85 to $9.50 per share.

Conference Call, Webcast Information, and Presentations

Enpro will hold a conference call today, August 4, at 8:30 a.m. Eastern Time to discuss second quarter 2026 financial results. Investors who wish to participate in the call should dial 1-877-407-0832 approximately 10 minutes before the call begins and provide conference access code 13750603. A live audio webcast of the call and accompanying slide presentation will be accessible from the company’s website, https://www.enpro.com. To access the earnings presentation, log on to the webcast by clicking the link on the company’s home page.

Segment Operating Performance Measure

The segment profitability metric used by management to allocate resources and assess segment performance is adjusted segment EBITDA, which is segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition and divestiture expenses, restructuring expense, net, impairment charges, amortization of the fair value adjustment to acquisition date inventory, and depreciation and amortization. Segment non-operating expenses and income, corporate expenses, net interest expense, and income taxes are not included in the computation of adjusted segment EBITDA. Under U.S. generally accepted accounting principles (“GAAP”), the segment profitability metric used by management to allocate resources and assess segment performance is required to be disclosed in financial statement footnotes, and accordingly such metric as presented for each segment is not deemed to be a non-GAAP measure under applicable regulations of the Securities and Exchange Commission.

Non-GAAP Financial Information

This press release contains financial measures that have not been prepared in conformity with GAAP. They include adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, total adjusted segment EBITDA, and free cash flow. Tables showing the reconciliation of these historical non-GAAP financial measures to the comparable GAAP measures are attached to the release. Adjusted EBITDA and adjusted diluted earnings per share anticipated for full-year 2026 are calculated in a manner consistent with the historical presentation of these measures in the attached tables. Because of the forward-looking nature of these estimates, it is impractical to present quantitative reconciliations of such measures to comparable GAAP measures, and accordingly no such GAAP measures are being presented.

Management believes these non-GAAP metrics are commonly used financial measures for investors to evaluate the company’s operating performance and, when read in conjunction with the company’s consolidated financial statements, present a useful tool to evaluate the company’s ongoing operations and performance from period to period. In addition, these are some of the factors the company uses in internal evaluations of the overall performance of its businesses. 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.

Forward-Looking Statements and Guidance

Statements in this press release that express a belief, expectation, or intention, including increased 2026 guidance and other statements that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: economic conditions in the markets served by the company’s businesses and the businesses of its customers, some of which are cyclical and experience periodic downturns and may be affected by the imposition or threat of imposition of tariffs; the impact of geopolitical activity on those markets and the global economy, including instabilities associated with the armed conflicts in the Middle East region, and impacts on shipping in that region, and in Ukraine and any conflict or threat of conflict that may affect Taiwan; uncertainties with respect to the imposition, or threat of imposition, of government tariffs, embargoes and other trade protection measures, such as “anti-dumping” duties applicable to classes of products, and import or export licensing requirements, as well as the imposition of trade sanctions against a class of products imported from or sold and exported to, or the loss of “normal trade relations” status with, countries in which the company conducts business, could significantly increase the company’s cost of products or otherwise reduce its sales and harm its business; uncertainties with respect to prices and availability of raw materials, including as a result of instabilities from geopolitical conflicts and the imposition of tariffs; uncertainties with respect to the company’s ability to achieve anticipated growth within the semiconductor, life sciences, and other technology-enabled markets, including uncertainties with respect to the timing of completion of facility expansions; the impact of fluctuations in relevant foreign currency exchange rates or unanticipated increases in applicable interest rates; unanticipated delays or problems in introducing new products; the impact from any pending or potential labor disputes; announcements by competitors of new products, services or technological innovations; changes in the company’s pricing policies or the pricing policies of its competitors; risks related to the reliance of the Advanced Surface Technologies segment on a small number of significant customers and the geographic concentration of those customers; uncertainties with respect to the company’s ability to identify and complete business acquisitions consistent with its strategy and to successfully integrate any businesses that it acquires; and uncertainties with respect to the amount of any payments required to satisfy contingent liabilities, including those related to discontinued operations, other divested businesses and discontinued operations of the company’s predecessors, including liabilities for certain products, environmental matters, employee benefit and statutory severance obligations and other matters. Enpro’s filings with the Securities and Exchange Commission, including its most recent Form 10-K and 10-Q reports, describe these and other risks and uncertainties in more detail. Enpro does not undertake to update any forward-looking statements made in this press release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based.

Full-year guidance is subject to the risks and uncertainties discussed above and specifically excludes changes in the number of shares outstanding, impacts from future acquisitions, dispositions and related transaction costs, restructuring costs and the impact of changes in foreign exchange rates, in each case subsequent to June 30, 2026, and any incremental impact on demands and costs arising from tariffs announced, or trade tensions arising, subsequent to August 3, 2026.

About Enpro Inc.

Enpro is a leading industrial technology company focused on critical applications across many end-markets, including semiconductor, industrial process, commercial vehicle, sustainable power generation, aerospace, food and biopharma, photonics, and life sciences. Headquartered in Charlotte, North Carolina, Enpro is listed on the New York Stock Exchange under the symbol “NPO”. For more information, visit the company’s website at https://www.enpro.com.

APPENDICES

Consolidated Financial Information and Reconciliations

Investor Contacts:
Joseph F. Bruderek
Executive Vice President and
Chief Financial Officer

James M. Gentile
Vice President, Investor Relations

Phone: 704-731-1527

Email: investor.relations@enpro.com

Enpro Inc.
5605 Carnegie Boulevard
Charlotte, North Carolina, 28209
www.enpro.com