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Jun 30, 2020

Enpro Q2 2020 Earnings Report

EnPro Industries reported a decrease in sales and a loss from continuing operations due to the economic impacts of the COVID-19 pandemic and weaker market conditions.

Key Takeaways

EnPro Industries reported a 22.1% decrease in sales to $247.0 million and a loss from continuing operations of ($3.3) million. Adjusted EBITDA margin remained relatively stable at 15.2%. The company is focusing on cost management and portfolio shaping to navigate the economic downturn.

Sales decreased 22.1% to $247.0 million.

Adjusted EBITDA margin remained relatively stable at 15.2%, with adjusted EBITDA of $37.5 million.

Diluted loss per share from continuing operations was ($0.16), while adjusted diluted earnings per share decreased 41.9% to $0.54.

Announced final steps toward completion of reshaping the heavy-duty truck business.

Total Revenue
$247M
Previous year: $387M
-36.2%
EPS
$0.54
Previous year: $1.32
-59.1%
Adjusted EBITDA
$37.5M
Adjusted EBITDA Margin
15.2%
Gross Profit
$82.5M
Previous year: $125M
-34.1%
Cash and Equivalents
$424M
Previous year: $124M
+241.1%
Free Cash Flow
$29.4M
Total Assets
$2.06B
Previous year: $1.73B
+19.1%

Enpro

Enpro

Enpro Revenue by Segment

Forward Guidance

EnPro Industries expects a 15% to 25% full-year revenue decline compared to 2019, with adjusted EBITDA margins ranging from 13% to 14%.

Positive Outlook

  • Strong second quarter results.
  • Revised scenario planning ranges provided last quarter.
  • Focus on cost management
  • Benefits of portfolio shaping work completed during the last year
  • Anticipate a modest sequential improvement in the fourth quarter

Challenges Ahead

  • Continue to model a 15% to 25% full-year revenue decline compared to 2019
  • Typically experience softer demand in the third quarter due to seasonal patterns
  • Expecting longer lead time orders to also affect third quarter results.
  • Economic uncertainty caused by the COVID-19 pandemic
  • Weaker conditions across many of our core markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income