Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Q1 2025 Earnings Presentation
16 slides from Enerpac Tool's earnings presentation, Dec 19, 2024
Slide 1: Q1 FY25 Earnings
Q1 FY25 EARNINGS DECEMBER 19, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. In addition to statements with respect to guidance, the terms “outlook
Slide 3: Continued Softness in Industrial Macro Environment
Continued Softness in Industrial Macro Environment Latest Manufacturing PMI (Including Flash) Industrial Production (U.S.): Total Index (y/y change) 2.0% 1.4% 1.5% 1.2% 1.0% 0.4% 0.3% 0.5% 0.2% 0.0% 0.0% -0.5% -0.2% -0.4% -0.4% -0.4% -0.5% -0.6% -0.5% -0.6% -0.7% -0.7% -0.6% -1.0% -0.8% -0.9% -1.0%
Slide 4: Q1 Fiscal 2025 Revenue
Q1 Fiscal 2025 Revenue ($ in millions) Net Sales Net Sales Organic 1Q24 1Q25 Change Growth* Industrial Tools & Service (IT&S) $137 $140 2.3% -1.0% IT&S Product $105 $106 1.1% -3.0% IT&S Service $32 $34 6.0% +5.6% Other (Cortland Biomedical) $5 $5 2.6% +2.6% Enerpac Tool Group $142 $145 2.3% -0.8% *O
Slide 5: Q1 Fiscal 2025 Profitability
Q1 Fiscal 2025 Profitability ($ in millions, except EPS) YoY 1Q24 1Q25 Change Gross Margin 52.3% 51.4% -90bps Adjusted SG&A * 29.0% 29.0% flat Adjusted EBITDA* $35 $34 -2% Adjusted EBITDA Margin 24.6% 23.6% -100 bps Adjusted EPS* $0.39 $0.40 3% *Adjusted SG&A, adjusted EBITDA, and adjusted EPS are n
Slide 6: Strong Liquidity & Balance Sheet, Balanced Capital Allocation Strategy
Strong Liquidity & Balanced Capital Balance Sheet Allocation Strategy ($ in millions) Cash & Equivalents $131 Revolver Capacity (Undrawn) $399 Total Liquidity $529 Total Debt $193 Invest in Ourselves Disciplined M&A Net Debt/Adj. EBITDA* 0.5x Investments in Digital, Product Innovation, R&D, Operatio
Slide 7: IT&S Organic Growth by Region
IT&S Organic Growth by Region * Region 1Q24 1Q25 FY24 IT&S APAC +LSD% +MSD% Regional Sales APAC 13% Americas EMEA +HSD% +LSD% 46% EMEA 41% Americas +MSD% -MSD% *Organic revenue growth excludes the impact of foreign exchange rates, acquisitions, and dispositions. 7
Slide 8: PEP in Action: Continued Margin Expansion
PEP in Action: Continued Margin Expansion Strategic Efforts Focus Areas Accelerating Growth Execution and monitoring of growth strategy Continuous improvement projects in Optimizing Operations manufacturing and procurement Continuing to streamline SG&A through greater Minimizing Inefficiencies effic
Slide 9: Appendix
Appendix TOOL GROUP
Slide 10: FY25 Guidance
NET SALES FY25 Guidance $610 - $625M ~0-2% Organic Growth ~3-6% Total Growth Key Assumptions: ▪ Targeting to outperform industry and gain market share ADJ. EBITDA* ▪ No broad-based global recession Depreciation & Amortization ~$14 - $16M $150 - $160M Interest Expense ~$13 - $15M Adjusted Tax Rate ~2
Slide 11: Historical Quarterly Results
Historical Quarterly Results ($ in millions, except per share) Net Sales & YoY Organic Growth* Adjusted EBITDA and Margin* $161 $159 $156 $40 $40 $150 $37 $39 $142 $142 $35 $34 $139 $138 $32 $27 26.4% 13% 24.9% 24.6% 24.8% 24.0% 24.3% 22.7% 9% 5% 6% 19.1% 4% 2% 1% 1% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q
Slide 12: IT&S Organic Growth by Region
IT&S Organic Growth by Region Regional IT&S Organic Growth by Region Fiscal Fiscal 1Q23 2Q23 3Q23 4Q23 2023 1Q24 2Q24 3Q24 4Q24 2024 Americas +HT +LDD +MSD +HSD +LDD +MSD +LSD -LSD Flat +LSD EMEA +HSD +MSD Flat +MSD +MSD +HSD +MSD +LDD +LSD +HSD APAC +LSD +MSD +HT +HT +LDD +LSD -LSD -LDD -MSD -MSD L
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Consolidated Organic Q1 FY25 Organic Sales Sales by Quarter by Category ETG Organic Sales - Q1 FY23 vs. Q1 FY22 ETG Organic Sales - Q1 FY24 vs. Q1 FY23 IT&S Organic Sales - Q1 FY25 vs. Q1 FY24 Q1 FY23 Q1 FY22 % Change Q1 FY24 Q1 FY23 % Change Q1
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions, except per share) Net Sales Adjusted Net Earnings from Continuing Operations Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Enerpac Tool Group $ 139
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Adjusted Selling, general and administrative expenses Free Cash Flow Q1 FY24 Q1 FY25 FY2021 FY2022 FY2023 FY2024 Selling, general and administrative expenses $ 45 $ 42 Cash provided by operating activities 54 52 78 81 Selling, general and adminis
Slide 16: Notes to Reconciliation of Non-GAAP Measures
Notes to Reconciliation of Non-GAAP Measures (1) Approximately $0.4 million of the Q4 fiscal 2024 restructuring charges were recorded in cost of products sold. (2) EBITDA represents net earnings from continuing operations before financing costs, net, income tax expense, and depreciation & amortizati