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Mar 31, 2023

Enpro Q1 2023 Earnings Report

Enpro reported a strong first quarter with sales up, driven by record performance in the Sealing Technologies segment.

Key Takeaways

Enpro Industries reported a strong start to 2023, with a 4.6% increase in sales to $282.6 million and a 16.3% increase in adjusted EBITDA to $68.6 million. The company's performance was driven by record profitability in the Sealing Technologies segment.

Sales increased by 4.6% to $282.6 million, with organic sales up 6.3%.

Adjusted EBITDA increased by 16.3% to $68.6 million, with adjusted EBITDA margin up over 240 bps to 24.3%.

Diluted earnings per share from continuing operations increased to $1.24, compared to $0.57 last year.

The company maintains its full-year 2023 guidance for revenue growth and adjusted EBITDA.

Total Revenue
$283M
Previous year: $329M
-14.0%
EPS
$1.95
Previous year: $1.83
+6.6%
Adjusted EBITDA
$68.6M
Previous year: $67.9M
+1.0%
Adjusted EBITDA Margin
24.3%
Previous year: 20.7%
+17.4%
Segment Margin
15.5%
Previous year: 8.34%
+85.9%
Gross Profit
$116M
Previous year: $115M
+1.3%
Cash and Equivalents
$336M
Previous year: $293M
+14.6%
Free Cash Flow
$21.4M
Previous year: $26.9M
-20.4%
Total Assets
$2.67B
Previous year: $2.91B
-8.3%

Enpro

Enpro

Enpro Revenue by Segment

Forward Guidance

EnPro Industries, Inc. continues to expect 2023 revenue growth in the flat-to-low single digits, adjusted EBITDA is in the range of $248 million to $260 million and adjusted diluted earnings per share in the range of $6.45 to $7.05 per share.

Positive Outlook

  • Revenue growth in the flat-to-low single digits.
  • Adjusted EBITDA between $248 million and $260 million
  • Adjusted diluted earnings per share between $6.45 and $7.05

Challenges Ahead

  • Changes in the number of shares outstanding
  • Impacts from future and pending acquisitions
  • Dispositions and related transaction costs
  • Restructuring costs
  • Incremental impacts of tariffs and trade tensions on market demand and costs subsequent to March 31, 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income