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

Third Quarter 2026 Highlights

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

• Sales of $350.8 million, up 22.4%
• AST sales up 25.8%; Sealing Technologies sales up 20.5%
• Net income of $40.3 million versus $21.6 million
• Adjusted EBITDA* of $91.3 million versus $69.3 million
• GAAP diluted earnings per share of $1.88 versus $1.01
• Adjusted diluted earnings per share* of $2.66 versus $1.99
• Raising full-year 2026 guidance: Revenue expected to be in the range of $1.33 billion to $1.34 billion, adjusted EBITDA* in the range of $340 million to $345 million and adjusted diluted earnings per share* in the range of $9.70 to $9.95

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

“Our strong third quarter performance reflects our disciplined execution and success of Enpro 3.0 as we continue to accelerate profitable growth across the organization," said Eric Vaillancourt, President and Chief Executive Officer. Increased semiconductor industry demand drove AST sales up nearly 26%, while Sealing Technologies delivered nearly 12% organic sales growth — and more than 20% including acquisitions. We are raising our outlook for the balance of the year to reflect robust demand across the portfolio and our strong momentum as we head into 2027."

"We remain focused on reinvesting in attractive organic growth opportunities across both segments to deliver on our Enpro 3.0 growth targets. Strong cash generation and a healthy balance sheet provide us with significant flexibility to invest in areas of the portfolio with higher growth rates and superior profitability and pursue strategic acquisitions that expand our capabilities and align with our disciplined financial criteria," Mr. Vaillancourt continued.

Financial Highlights

(Dollars in millions except per share data)

Third Quarter 2026 Consolidated Results

Sales of $350.8 million increased 22.4% compared to last year. Excluding foreign exchange translation and contributions from the AlpHa Measurement Solutions and Overlook Industries acquisitions completed in the fourth quarter of 2025, sales increased 16.9%. Improved demand across AST for our semiconductor products and solutions, strength in aerospace, domestic general industrial and compositional analysis applications, as well as strategic pricing initiatives more than offset slow European general industrial and food and biopharmaceutical demand. Nuclear and commercial vehicle OEM revenue improved during the third quarter compared to last year.

Corporate expense of $13.5 million in the third quarter of 2026 increased from $10.2 million last year primarily due to higher incentive compensation accruals and restructuring costs.

Net income of $40.3 million increased 86.6% compared to $21.6 million last year. Diluted earnings per share were $1.88, compared to $1.01 in the prior year. Operating leverage from strong sales growth was partially offset by increased expenses supporting growth initiatives across both segments.

Adjusted net income* of $57.0 million increased 34.4% compared to the third quarter of 2025 and adjusted diluted earnings per share* increased 33.7% to $2.66, versus $1.99 last year.

Adjusted EBITDA* of $91.3 million, or 26.0% of total sales, increased 31.7% year-over-year. Higher sales drove the increase, offset in part by increased operating expenses supporting growth initiatives.

Third Quarter 2026 Segment Highlights

Sealing Technologies - Safeguarding environments with critical applications in diverse end markets

• Sales increased 20.5% over last year. Excluding the positive impact of foreign exchange translation (0.4%) and contributions from the acquisitions of AlpHa Measurement Solutions and Overlook Industries (8.5%) completed in the fourth quarter of 2025, sales increased 11.6%. Strength in aerospace, domestic general industrial and compositional analysis applications, as well as strategic pricing initiatives drove the sales increase, offset in part by slow European general industrial and food and biopharmaceutical demand during the quarter. Commercial vehicle OEM demand improved year-over-year.
• Adjusted segment EBITDA of $69.9 million was up 21.8% year-over-year, with adjusted segment EBITDA margin remaining strong at 32.6%. Excluding foreign exchange translation and contributions from recently completed acquisitions, adjusted segment EBITDA increased 13.2%.

Advanced Surface Technologies - Leading edge precision manufacturing, coatings, cleaning and refurbishment solutions and innovative optical coatings and filters

• Sales increased 25.8% organically. Strong performance across the AST segment was led by leading-edge precision cleaning solutions, as well as increased demand for semiconductor capital equipment and coatings.
• Adjusted segment EBITDA increased 57.3%. Strong sales growth, despite continued growth investments, drove improved AST operating leverage during the quarter, with adjusted segment EBITDA margin expanding 500 basis points.

Balance Sheet, Cash Flow and Capital Allocation

During the nine months ended September 30, 2026, the company generated $172.8 million of cash flow from operating activities and $129.2 million of free cash flow, net of $43.6 million in capital expenditures. This compares to $138.5 million of cash flow from operating activities, or $104.9 million of free cash flow, net of $33.6 million in capital expenditures last year. Higher net income and lower cash taxes were the primary drivers of the strong increase in free cash flow, which also includes investments in working capital supporting strong demand and higher capital expenditures supporting growth initiatives.

During the third quarter, the company paid a regular quarterly dividend of $0.32 per share, with dividend payments totaling $20.6 million for the nine months ended September 30, 2026.

Enpro ended the third quarter with total debt of $520.7 million and cash and cash equivalents of $83.4 million and reduced outstanding revolving debt by $55.0 million during the third quarter, and $135.0 million year-to-date, resulting in a net leverage ratio of 1.4x to trailing twelve month adjusted EBITDA.

Share Repurchase Authorization

Enpro’s Board of Directors approved a new share repurchase authorization in October 2026, replacing the previous $50 million authorization that recently expired. No shares were purchased under the prior repurchase program. Under the replacement authorization, which is identical to the prior authorization, the company may repurchase up to $50 million of shares in both open market and privately negotiated transactions. The company’s management is authorized to determine the timing and amount of any such repurchases based on its evaluation of market conditions, capital alternatives, and other factors. Repurchases may also be made under Rule 10b5-1 plans, which permit the company to repurchase shares when it otherwise would be precluded from doing so under insider trading laws. The renewed share repurchase authorization expires in October 2028.

Quarterly Dividend

Enpro declared a regular quarterly dividend of $0.32 per share on October 28, 2026. The dividend is payable on December 16, 2026, to shareholders of record as of the close of business on December 2, 2026.

2026 Guidance Increase

Enpro is raising guidance for full-year 2026 and now expects revenue to be in the range of $1.33 billion to $1.34 billion, or a 16% to 17% increase year over year, adjusted EBITDA* in the range of $340 million to $345 million and adjusted diluted earnings per share* in the range of $9.70 to $9.95.

This compares to the prior guidance of revenue growth 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 per share.

Conference Call, Webcast Information, and Presentations

Enpro will hold a conference call today, November 3, at 8:30 a.m. Eastern Time to discuss third 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 13750604. 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 costs, impairment charges, non-controlling interest compensation, 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 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 Form 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 September 30, 2026, and any incremental impact on demands and costs arising from tariffs announced, or trade tensions arising, subsequent to November 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