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Enpro
🇺🇸 NYSE:NPO
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Jun 30, 2023

Enpro Q2 2023 Earnings Report

Enpro's Q2 2023 results reflected a mix of strong performance in Sealing Technologies and weakness in Advanced Surface Technologies, with overall sales remaining essentially flat and adjusted EBITDA declining due to incentive compensation expenses.

Key Takeaways

Enpro reported Q2 2023 results with sales of $276.9 million, essentially flat year-over-year, and a GAAP loss from continuing operations of $18.6 million. Adjusted EBITDA decreased by 11.9% to $64.9 million, and adjusted EPS decreased by 10.7% to $1.83. The company expects full-year revenue to be relatively flat and has increased adjusted diluted earnings per share guidance to $6.70 to $7.10.

Sales remained essentially flat with organic sales up 0.4%.

Sealing Technologies showed strong sales and earnings, offsetting weakness in Advanced Surface Technologies.

GAAP loss from continuing operations was $18.6 million, impacted by a goodwill impairment charge of $60.8 million related to Alluxa.

Adjusted EBITDA decreased by 11.9% to $64.9 million, with adjusted EBITDA margin down 320 bps to 23.4%.

Total Revenue
$277M
Previous year: $333M
-16.9%
EPS
$1.83
Previous year: $2.32
-21.1%
Adjusted EBITDA
$64.9M
Previous year: $82M
-20.9%
Adjusted EBITDA Margin
23.4%
Previous year: 24.6%
-4.9%
Gross Profit
$115M
Previous year: $131M
-12.0%
Cash and Equivalents
$375M
Previous year: $222M
+68.8%
Free Cash Flow
$66.6M
Previous year: $58.6M
+13.7%
Total Assets
$2.63B
Previous year: $2.81B
-6.5%

Enpro

Enpro

Enpro Revenue by Segment

Forward Guidance

Enpro expects 2023 revenue to be flat compared to 2022. Adjusted EBITDA is expected in the range of $248 million to $256 million. Adjusted diluted earnings per share guidance is increased and expected to be in the range of $6.70 to $7.10 per share.

Positive Outlook

  • Revenue expected to be flat compared to 2022.
  • Adjusted EBITDA expected in the range of $248 million to $256 million.
  • Adjusted diluted earnings per share guidance increased to $6.70 to $7.10 per share.
  • Guidance reflects share-price-driven incentive compensation expense recognized in the second quarter.
  • Guidance primarily reflecting lower net interest expense resulting from debt repayment and higher interest income on cash balances.

Challenges Ahead

  • Economic conditions in the markets served.
  • Impact of geopolitical activity.
  • Uncertainties with respect to government embargoes, tariffs and trade protection measures.
  • Uncertainties with respect to prices and availability of raw materials.
  • Impact of fluctuations in relevant foreign currency exchange rates or unanticipated increases in applicable interest rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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