Enpro (NPO) Reports Mixed Q2 Financial Results

By Bobby Samwell • Tuesday, August 06 08:10 • Permanent Link

Enpro Inc. (NYSE: NPO) has released its financial results for the second quarter of 2024, reporting a mix of positive and negative changes compared to the prior-year period. Here are the specific figures and highlights from the press release:

Sales for the second quarter of 2024 were $271.9 million, down 1.8% compared to the same period in 2023. Organic sales, excluding the impact of the AMI acquisition and foreign exchange translation, decreased by 5.0% year-over-year.
GAAP income from continuing operations attributable to Enpro Inc., net of tax, was reported at $26.7 million, a significant improvement from the loss of $18.6 million in the prior-year period.
Adjusted EBITDA increased by 14.0% to $74.0 million, with an adjusted EBITDA margin improvement of 380 basis points to 27.2%.
GAAP diluted earnings per share from continuing operations were $1.27, compared to a loss of $0.89 in the second quarter of 2023.
Adjusted diluted earnings per share from continuing operations increased by 13.7% to $2.08, up from $1.83 in the prior-year period.
Enpro narrowed its full-year 2024 earnings guidance for adjusted EBITDA to the range of $260 to $270 million and adjusted diluted earnings per share guidance to the range of $7.00 to $7.60. The company also adjusted its full-year 2024 revenue guidance to be approximately flat, compared to the previous expectation of low-to-mid single-digit growth.

Looking at the performance of Enpro's segments:

Sealing Technologies: * Sales in this segment increased by 4.1% to $184.0 million, with adjusted segment EBITDA increasing by 16.2% to $65.4 million. The adjusted segment EBITDA margin expanded by approximately 360 basis points.

Advanced Surface Technologies: * Sales in this segment decreased by 12.2% to $88.1 million, with adjusted segment EBITDA declining by 20.7% to $19.1 million. The adjusted segment EBITDA margin declined by 230 basis points.

Cash flow and capital allocation: * During the six months ended June 30, 2024, Enpro generated $49.5 million of cash flow from operating activities of continuing operations and $35.5 million of free cash flow, compared to $78.5 million of cash flow from operating activities and $66.5 million of free cash flow in the prior year.

The company ended the second quarter with total debt of $661.5 million and cash and cash equivalents of $175.9 million.

Dividend: * Enpro declared a regular quarterly dividend of $0.30 per share on August 1, 2024, payable on September 18, 2024.

Guidance: * Enpro's 2024 revenue is now expected to be approximately flat with 2023, with adjusted EBITDA and adjusted diluted earnings per share expected to be in the ranges of $260 million to $270 million and $7.00 to $7.60, respectively.

As a result of these announcements, the company's shares have moved -4.8% on the market, and are now trading at a price of $146.02. If you want to know more, read the company's complete 8-K report here.

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