Enerpac Tool Q3 results top estimates but lowers FY adjusted EBITDA outlook on service business weakness

Enerpac Tool

07/07/2026 23:45

Overview
US industrial tools provider's fiscal Q3 sales rose 6%, beating analyst expectations
Adjusted EPS for fiscal Q3 was $0.60, beating analyst expectations
Company returned $15 mln to shareholders via share repurchases and announced SFE Group acquisition

Outlook
Enerpac narrows FY26 net sales outlook to $635 mln-$645 mln from $635 mln-$650 mln
Company lowers FY26 adjusted EBITDA forecast to $151 mln-$156 mln from $158 mln-$163 mln
Enerpac expects near-term pressure from Service business and geopolitical events

Result Drivers
PRODUCT SALES GROWTH - IT&S product sales rose 5% organically, reflecting underlying business strength, per CEO Paul Sternlieb
SERVICE REVENUE - Service revenue declined 8% organically year over year but improved 17% sequentially, as company implements service improvement plan
TARIFF REFUND BENEFIT - Gross profit margin increased, including benefit from expected refund of IEEPA tariffs

Company press release: ID:nGNX1k6stb

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$167.6 mln
$164.91 mln (3 Analysts)
Q3 Adjusted EPS
Beat
$0.60
$0.50 (3 Analysts)
Q3 EPS
 
$0.58
 
Q3 Adjusted Net Income
 
$31 mln
$25.60 mln (2 Analysts)
Q3 Net Income
 
$29.8 mln
 
Q3 Net Debt
 
$69.1 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Enerpac Tool Group Corp is $50.50, about 47.2% above its July 7 closing price of $34.31
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)