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Nov 30, 2023

Enerpac Q1 2024 Earnings Report

Enerpac Tool Group reported a solid start to fiscal year 2024 with top-line growth and expanded profitability.

Key Takeaways

Enerpac Tool Group reported a 1.9% increase in net sales to $142 million, with organic growth of 5.5%. The company's gross margin expanded by 360 basis points to 52.3%, and net earnings were $18 million, or $0.33 per share. Adjusted EBITDA increased by 31% to $35 million.

Net sales increased by 1.9% year-over-year to $142 million, with organic growth of 5.5%.

Gross margin expanded 360 basis points year-over-year to 52.3%.

GAAP operating margin was 20.2% and adjusted operating margin was 22.8%.

Net earnings were $18 million, or $0.33 per share.

Total Revenue
$142M
Previous year: $139M
+1.9%
EPS
$0.39
Previous year: $0.29
+34.5%
Adj. EBITDA Margin
24.6%
Previous year: 19.1%
+28.8%
Gross Profit
$74.3M
Previous year: $67.9M
+9.3%
Cash and Equivalents
$148M
Previous year: $129M
+14.5%
Free Cash Flow
-$8.24M
Previous year: $15.9M
-151.7%
Total Assets
$766M
Previous year: $774M
-1.1%

Enerpac

Enerpac

Enerpac Revenue by Segment

Forward Guidance

The Company affirms its fiscal 2024 guidance, projecting a net sales range of $590 million to $605 million, with expected adjusted EBITDA in the range of $142 million to $152 million, and free cash flow between $60 million to $70 million.

Positive Outlook

  • Net sales range of $590 million to $605 million is projected.
  • Organic growth of approximately 2% to 4% is anticipated.
  • Adjusted EBITDA is expected in the range of $142 million to $152 million.
  • Free cash flow is projected between $60 million to $70 million.
  • The company is on track to achieve its full-year financial objectives.

Challenges Ahead

  • Forecast is based on key foreign exchange rate assumptions.
  • Guidance assumes the absence of a broad-based global recession.
  • General economic uncertainty.
  • Potential impacts from geopolitical activity.
  • Risks related to supply chain and inflation.