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• Organic Sales Growth: 5% year-over-year.

• EBITDA Margin: 23.2% for the quarter.

• Revenue Increase: 5.1% on a reported basis.

• IT&S Business Revenue Growth: 4% organically year-over-year.

• Cortland Biomedical Growth: 33% in the Other segment.

• Gross Profit Margin: 50.5%, a decline of 110 basis points year-over-year.

• Adjusted SG&A: Improved to 28.3% of revenue from 28.4% in the prior year.

• Adjusted EBITDA Margin Decline: 160 basis points due to mix impact and DTA acquisition.

• Effective Tax Rate: 24.3%, down from 27.3% in the prior year.

• Adjusted Earnings Per Share: $0.39, an 8% increase from $0.36 in the prior year.

• Net Debt: $73 million at quarter end.

• Total Liquidity: $518 million, including revolver availability.

• Cash Flow from Operations: $16 million, up from $7 million in the prior year.

• Free Cash Flow: $5 million, slightly up year-over-year.

• Share Repurchase: Approximately 220,000 shares totaling $10.2 million.

• Warning! GuruFocus has detected 8 Warning Signs with CSIQ.

Release Date: March 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enerpac Tool Group Corp (NYSE:EPAC) reported a 5% year-over-year organic sales growth, indicating strong execution in a challenging industrial sector.

• The company maintained its full-year fiscal 2025 guidance, reflecting confidence in its global brand leadership and targeted growth strategy.

• Enerpac's revenue increased by 5.1% in the second quarter of 2025, with notable growth in the Heavy Lifting Technology business.

• The Americas region experienced high single-digit growth, driven by the Enerpac Commercial Excellence program and strong performance in the Heavy Lifting Technology business.

• Enerpac's e-commerce business showed significant growth, with a 43% year-over-year increase in Q2, highlighting successful digital transformation efforts.

Negative Points

• EBITDA margins declined to 23.2% due to the impact of mix, particularly from the Heavy Lifting Technology business, which carries lower gross margins.

• Gross profit margins decreased by 110 basis points year-over-year, affected by the mix of service projects and lower-margin product sales.

• The EMEA region experienced a low single-digit decline in sales, breaking a two-year pattern of consistent growth due to macroeconomic pressures.

• The mining sector in Australia continues to face cost pressures and the impact of steel and aluminum tariffs, affecting performance in the region.

• Adjusted EBITDA margins declined by 160 basis points in the second quarter, influenced by the mix impact on gross margins and the inclusion of the DTA acquisition.