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Jun 30, 2024
Enpro Q2 2024 Earnings Report
Enpro reported a strong second quarter, driven by record profitability in Sealing Technologies and sequential improvement in Advanced Surface Technologies.
Key Takeaways
Enpro Inc. reported a decrease in sales by 1.8% to $271.9 million, but experienced a significant increase in GAAP income from continuing operations, reaching $26.7 million compared to a loss of $18.6 million in the prior year. Adjusted EBITDA increased by 14.0% to $74.0 million, with adjusted diluted earnings per share up 13.7% to $2.08. The company has narrowed its full-year earnings guidance for adjusted EBITDA to $260 to $270 million and adjusted diluted earnings per share to $7.00 to $7.60.
Sales decreased by 1.8% to $271.9 million; organic sales declined by 5.0%.
GAAP income from continuing operations attributable to Enpro Inc. was $26.7 million, compared to a loss of $18.6 million.
Adjusted EBITDA increased by 14.0% to $74.0 million; adjusted EBITDA margin increased by 380 bps to 27.2%.
Adjusted diluted earnings per share from continuing operations increased by 13.7% to $2.08 versus $1.83.
Revenue by Segment
Forward Guidance
Enpro now expects 2024 revenue to be approximately flat with 2023. Expected adjusted EBITDA and adjusted diluted earnings per share for 2024 are now expected to be in the ranges of $260 million to $270 million and $7.00 to $7.60, respectively.
Positive Outlook
- Strong performance in Sealing Technologies
- Sequential improvement in sales in Advanced Surface Technologies
- Sequential improvement in adjusted segment EBITDA in Advanced Surface Technologies
- Resiliency of Enpro’s differentiated portfolio and business model
- Strength of balance sheet provides ample flexibility
Challenges Ahead
- Slower semiconductor markets
- Weaker demand in commercial vehicle OEM
- Weaker demand in general industrial in Asia
- Magnitude of recovery in semiconductor capital equipment spending expected to be more gradual
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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