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Jun 30, 2025
Enpro Q2 2025 Earnings Report
Enpro's financial results for the second quarter ended June 30, 2025, were announced, showing strong sales growth driven by double-digit revenue increase in AST and continued momentum in Sealing Technologies, despite impacts from investments and foreign exchange headwinds.
Key Takeaways
Enpro delivered a strong second quarter in 2025 with a 6.0% increase in net sales to $288.1 million, primarily driven by robust performance in Advanced Surface Technologies and continued momentum in Sealing Technologies. Despite a slight decrease in net income and adjusted EBITDA due to increased operating expenses supporting growth initiatives and transactional foreign exchange headwinds, the company raised its full-year guidance, reflecting confidence in aerospace, general industrial, and food and pharma orders.
Net sales increased by 6.0% to $288.1 million in Q2 2025 compared to the prior year, driven by growth in both segments.
Advanced Surface Technologies (AST) segment revenue grew by 14.5% to $100.9 million, while Sealing Technologies revenue increased by 1.9% to $187.5 million.
Net income slightly decreased by 1.1% to $26.4 million, and adjusted diluted EPS decreased by 2.4% to $2.03, impacted by growth investments and foreign exchange.
Enpro raised its full-year 2025 guidance for revenue growth, adjusted EBITDA, and adjusted diluted EPS, signaling a positive outlook for the second half of the year.
Revenue by Segment
Forward Guidance
Enpro is increasing its full-year 2025 guidance, expecting revenue growth of 5%-7%, adjusted EBITDA in the range of $270 million to $280 million, and adjusted diluted earnings per share in the range of $7.60 to $8.10.
Positive Outlook
- Increased full-year guidance for revenue growth, adjusted EBITDA, and adjusted diluted EPS.
- Strength seen in aerospace, general industrial, and food and pharma orders.
- Incrementally positive sales outlook for Advanced Surface Technologies (AST) for the second half of the year.
- Ample financial flexibility due to successful notes offering and increased revolver capacity.
- Continued strong free cash flow generation supporting growth strategy.
Challenges Ahead
- Guidance excludes changes in shares outstanding subsequent to June 30, 2025.
- Guidance excludes impacts from future and pending acquisitions, dispositions, and related transaction costs.
- Guidance excludes restructuring costs.
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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