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May 31, 2024
Enerpac Q3 2024 Earnings Report
Enerpac Tool Group reported a decrease in net sales but an increase in organic sales, along with significant margin expansion and improved profitability.
Key Takeaways
Enerpac Tool Group reported a decrease in net sales by 3.8% to $150.4 million, but organic sales increased by 1.2%. The company experienced margin expansion, with gross margin up 200 basis points to 51.8%. Operating profit increased by 31% to $33.4 million, and net earnings rose to $22.6 million, or $0.41 per diluted share.
Consolidated net sales decreased by 3.8% year-over-year to $150.4 million.
Organic sales increased by 1.2% year-over-year.
Gross margin expanded by 200 basis points to 51.8%.
Operating profit increased by 31% year-over-year to $33.4 million.
Revenue by Segment
Forward Guidance
The Company is narrowing its fiscal 2024 guidance, projecting organic sales growth of approximately 2% to 3%. With a $5 million headwind from new foreign exchange rate assumptions, that translates to a net sales range of $585 million to $590 million. Projecting a range of $147 million to $150 million based on better-than-expected margin performance. Free cash flow guidance is unchanged at $60 million to $70 million.
Positive Outlook
- Organic sales growth projected at approximately 2% to 3%.
- Adjusted EBITDA guidance range increased to $147 million to $150 million
- Free cash flow guidance is unchanged at $60 million to $70 million.
- Better-than-expected margin performance.
- Strong balance sheet.
Challenges Ahead
- Net sales range of $585 million to $590 million due to a $5 million headwind from new foreign exchange rate assumptions.
- General economic uncertainty.
- Market conditions in various industries.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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