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Nov 30, 2022
Enerpac Q1 2023 Earnings Report
Enerpac Tool Group's Q1 2023 earnings increased due to solid broad-based demand and ASCEND transformation program.
Key Takeaways
Enerpac Tool Group reported a strong first quarter in fiscal year 2023, driven by solid broad-based demand across all regions and double-digit core growth in the Americas and Europe. The company's performance was highlighted by strong core sales growth, continued year-over-year EBITDA margin expansion, and solid free cash flow generation. The company remains focused on supporting its customers and executing on its ASCEND transformation program to deliver profitable growth.
Net sales were $139 million, with a 13% year-over-year increase in core sales.
GAAP operating margin was 8.8% and adjusted operating margin was 16.6%.
GAAP diluted EPS was $0.11 and adjusted diluted EPS was $0.29.
Generated cash flow from operations of $18 million and free cash flow of $16 million.
Enerpac
Enerpac
Enerpac Revenue by Segment
Revenue by Segment
Industrial Tools & Services Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company is not making any changes to its fiscal 2023 guidance announced in September, which continues to be full-year net sales of $565 to $585 million and an adjusted EBITDA range of $113 to $123 million, including an ASCEND EBITDA benefit of $12 to $18 million. The guidance is based on foreign exchange rates as noted in September and assumes that there is not a broad-based recession.
Positive Outlook
- ASCEND transformation program is expected to drive significant changes and enhancements across the organization.
- New management team, mission, and strategic focus are expected to unlock the full potential of Enerpac Tool Group.
- Full-year net sales are projected to be between $565 and $585 million.
- Adjusted EBITDA is expected to range from $113 to $123 million.
- ASCEND EBITDA benefit is projected to be between $12 and $18 million.
Challenges Ahead
- Guidance is based on foreign exchange rates as noted in September.
- Guidance assumes that there is not a broad-based recession.
- Economic uncertainty may impact market conditions in various industries.
- Geopolitical activity, including the invasion of Ukraine by Russia, could pose risks.
- Supply chain risks and material, labor, or overhead cost increases could affect results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income