Industrial technology company ENPRO INC (NYSE:NPO) delivered a strong finish to 2025, reporting fourth-quarter results that surpassed analyst expectations and providing an optimistic outlook for the year ahead. The company's performance, characterized by double-digit revenue growth and robust profitability, was met with a positive initial market reaction.
Earnings and Revenue Highlights
Enpro's fourth-quarter results for 2025 demonstrated solid execution, with both top and bottom-line figures coming in ahead of Wall Street forecasts. The company reported net sales of $295.4 million, a 14.3% increase over the prior year period. This result exceeded the analyst consensus estimate of approximately $283.8 million.
On the profitability front, the company's adjusted earnings per share (EPS) of $1.99 outpaced the estimated $1.93. This represents a significant 26.8% increase compared to the $1.57 adjusted EPS reported in the fourth quarter of 2024. It is important to note that the company's GAAP results were significantly impacted by a one-time, non-cash charge of $67.2 million related to the termination of its U.S. defined benefit pension plan. This event resulted in a reported net loss of $32.0 million, or $1.52 per share, for the quarter.
The key financial results versus estimates are summarized below:
-
Reported Revenue: $295.4 million
-
Estimated Revenue: ~$283.8 million
-
Beat by: ~$11.6 million (4.1%)
-
Reported Adjusted EPS: $1.99
-
Estimated Adjusted EPS: $1.93
-
Beat by: $0.06 (3.1%)
Market Reaction and Performance
The market responded favorably to the earnings beat and forward guidance. In pre-market trading following the release, Enpro's stock was up approximately 4.6%. This positive momentum reflects investor confidence in the company's ability to exceed expectations and its growth trajectory for 2026. The stock's performance over recent weeks has also been positive, with gains of about 10.7% over the past month.
Press Release Summary and 2026 Outlook
President and CEO Eric Vaillancourt highlighted a "strong finish to 2025," driven by best-in-class performance in the Sealing Technologies segment and continued sales improvement in Advanced Surface Technologies (AST). He noted improved order activity in AST, which is expected to begin contributing more substantially in the second half of 2026.
The company's full-year 2025 sales reached $1.14 billion, a 9.0% increase, with adjusted EBITDA growing 8.9% to $277.6 million. Operational cash flow saw a healthy 24% increase to $201.2 million.
Looking ahead, Enpro introduced formal guidance for 2026 that appears ambitious relative to current analyst projections. The company anticipates:
- Revenue growth in the range of 8% to 12%.
- Adjusted EBITDA between $305 million and $320 million.
- Adjusted diluted EPS in the range of $8.50 to $9.20.
This outlook compares to current analyst estimates for 2026 sales of approximately $1.26 billion and EPS of $8.86. The midpoint of Enpro's EPS guidance range ($8.85) aligns closely with the consensus, while its revenue growth target suggests confidence in continued market strength.
Segment Performance and Financial Position
The results were driven by strength across both business segments:
- Sealing Technologies: Sales grew 14.8% to $187.1 million, with adjusted segment EBITDA margin expanding to 32.8%. Strength was noted in aerospace, food and biopharma, and domestic general industrial markets.
- Advanced Surface Technologies: Sales increased 13.4% to $108.4 million, driven by precision cleaning solutions and optical coatings, with some recovery in semiconductor demand.
The company ended the year with a strong balance sheet, holding $114.7 million in cash and approximately $580 million available under its revolving credit facility. Its net leverage ratio stood at a manageable 2.0x. Enpro also announced a 3.2% increase in its quarterly dividend to $0.32 per share, marking the eleventh consecutive annual increase.
For a detailed view of historical earnings, future estimates, and analyst projections, visit the Enpro earnings and estimates page on Chartmill: Enpro (NPO) Earnings Estimates.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
