Enerpac Tool Group Reports 6% Sales Increase and Restructuring Charge in Q3 2025

Enerpac Tool Group Corp. reported its financial results for the third quarter and nine months ended May 31, 2025, revealing a net sales increase of 6% to $158.7 million compared to $150.4 million in the same period last year. The company’s gross profit for the quarter was $79.9 million, yielding a gross margin of 50.4%, down from 51.8% in the prior year. Net earnings from continuing operations were $22.0 million, or $0.41 per diluted share, slightly lower than the $22.6 million, or $0.41 per diluted share, reported in the same quarter of the previous year. For the nine-month period, net sales reached $449.4 million, a 4% increase from $430.8 million, with net earnings from continuing operations totaling $64.7 million, up from $58.8 million.

The company experienced notable changes in its operational metrics, including a 3% contribution to sales from the acquisition of DTA The Smart Move, S.A., which was completed in September 2024. This acquisition is expected to enhance Enerpac's Heavy Lifting Technology product line. The company also reported a 2% organic sales growth for the quarter, driven by a $7 million increase in product sales, while service sales rose by 3%. However, the gross profit margin was impacted by pressures in the service business and the integration of DTA.

Enerpac's operational developments included a restructuring charge of $5.9 million in the third quarter, primarily related to personnel actions and costs associated with the former headquarters location. The company’s total assets increased to $828.1 million as of May 31, 2025, compared to $777.3 million at the end of the previous fiscal year, driven by higher accounts receivable and inventory levels. The company’s employee headcount remained stable, with no significant changes reported.

Looking ahead, Enerpac Tool Group Corp. anticipates continued growth driven by its strategic initiatives, including the integration of DTA and ongoing operational improvements. The company remains focused on enhancing its product offerings and expanding its market presence, particularly in emerging markets. Management expressed confidence in the company’s ability to navigate market challenges, including supply chain issues and geopolitical uncertainties, while maintaining compliance with its financial covenants. The outlook for the remainder of fiscal 2025 remains cautiously optimistic, with expectations for further organic growth and improved profitability.