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1. Company Snapshot

1.a. Company Description

Enerpac Tool Group Corp.manufactures and sells a range of industrial products and solutions in the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, and internationally.It operates in two segments, Industrial Tools & Services (IT&S) and Other.


The IT&S segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the infrastructure, industrial maintenance, repair and operations, oil and gas, mining, renewable energy, and construction markets.It also offers branded tools and engineered heavy lifting technology solutions, and hydraulic torque wrenches; maintenance and manpower services; high-force hydraulic and mechanical tools, including cylinders, pumps, valves, and specialty tools; and bolt tensioners and other miscellaneous products.This segment markets its branded tools and services primarily under the Enerpac, Hydratight, Larzep, and Simplex brands.


The Other segment designs and manufactures synthetic ropes and biomedical textiles.The company was formerly known as Actuant Corporation and changed its name to Enerpac Tool Group Corp.in January 2020.


Enerpac Tool Group Corp.was incorporated in 1910 and is headquartered in Menomonee Falls, Wisconsin.

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1.b. Last Insights on EPAC

Enerpac Tool Group Corp.'s recent performance was negatively impacted by missed adjusted earnings per share estimates in Q1 2025, driven by mixed profitability metrics and high valuation multiples. Despite positive financial performance and structural changes, the company's shares remain expensive, justifying a 'hold' rating. The 2.3% revenue growth was primarily driven by the Industrial Tools & Services segment, but was offset by a 0.8% decline in organic sales. The company's high valuation multiples and mixed profitability metrics remain concerns, suggesting that the recent earnings release may not be enough to address these issues.

1.c. Company Highlights

2. Enerpac Q2: Resilient Growth Amid Service Shake‑Ups

Enerpac Tool Group Corp. delivered Q2 revenue of $155 million, up 2 % organically, while gross margins slipped 410 bps due to a 17 % drop in service revenue, predominantly in EMEA. SG&A fell to 26.4 % of sales, and adjusted EBITDA margin held at 21.3 %. EPS slipped to $0.31 from $0.38 a year earlier, yet adjusted EPS remained flat at $0.39, underscoring the impact of a $3.3 million restructuring charge in the service arm (Staff).

Publication Date: Apr -13

📋 Highlights
  • Revenue Growth:: Q2 revenue reached $155 million, reflecting a 2% organic increase, driven by 6% growth in the IT&S segment (highest in 10 quarters).
  • Service Revenue Decline:: Service revenue dropped 17% YoY, primarily due to reduced activity in the EMEA region.
  • Margin Pressures:: Gross margins fell 410 basis points, yet SG&A expenses improved to 26.4% of revenue, with adjusted EBITDA margin at 21.3%.
  • Restructuring Costs:: $3.3 million restructuring charge in Q2 and $6 million in 2025 to address service business challenges in Europe and the Middle East.
  • 2026 Guidance:: Net sales projected at $635–650 million (1–3% organic growth), with adjusted EBITDA expected at $158–163 million and free cash flow at $100–110 million.

Revenue & Margin Trends

The $155 million top line reflects steady product sales, with Industrial Tools & Service (IT&S) segment sales rising 6 % organically—the best in a decade—yet service revenue fell sharply, dragging gross margin down. The company attributes the margin compression mainly to lower service volumes and a shift toward higher‑margin product sales.

Profitability & Adjusted Metrics

Adjusted EBITDA margin of 21.3 % and adjusted EPS of $0.39 demonstrate that core profitability remains intact despite the service downturn. The company’s cost discipline, evidenced by a 26.4 % SG&A ratio, has helped cushion earnings from the restructuring hit.

Service Business Challenges

Service revenue declined 17 %, largely in EMEA, and the Middle East accounts for ~10 % of sales, where conflict‑related pauses have impacted work. Two restructurings last year ($6 m) and this quarter ($3.3 m) aimed to realign the footprint; management expects a Q4 rebound as service work resumes.

Growth Drivers & New Contracts

Enerpac secured a five‑year, multi‑million‑dollar North Sea contract with a major oil and gas company, expected to commence in Q4. The Hydropack tuck‑in added a split‑flow pump line, while six new products launched at CONEXPO should accelerate revenue over the next 12‑36 months.

Guidance & Capital Allocation

Fiscal 2026 net sales guidance tightened to $635‑$650 million (organic growth 1‑3 %). Adjusted EBITDA is projected at $158‑$163 million and EPS at $1.85‑$1.92, with free cash flow staying in the $100‑$110 million range. Capital allocation prioritizes organic reinvestment, share repurchases, and M&A, supported by a healthy balance sheet and a robust acquisition pipeline.

Valuation Snapshot

Current multiples reflect the company’s growth profile: P/E 22.35, P/B 4.69, P/S 3.08, EV/EBITDA 14.03, with ROIC at 14.54 % and ROE at 20.01 %. Net debt/EBITDA sits at 0.62, underscoring a solid liquidity position.

Tax & Cash Flow Outlook

Tax guidance for fiscal 2026 ranges from 21‑26 %, with no material impact on the effective rate. Free cash flow yield is projected at 5.75 %, and the company expects modest benefits from its tax strategy, reinforcing its ability to fund future initiatives.

3. NewsRoom

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JPMorgan Chase & Co. Buys 18,262 Shares of Enerpac Tool Group Corp. $EPAC

Apr -06

Source: defenseworld.net

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Enerpac Tool Group Corp. (EPAC) Q2 2026 Earnings Call Transcript

Mar -26

Source: seekingalpha.com

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Enerpac (EPAC) Q2 Earnings Match Estimates

Mar -25

Source: zacks.com

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Enerpac Tool Group Reports Second Quarter Fiscal 2026 Results

Mar -25

Source: globenewswire.com

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4 Manufacturing Tools Stocks to Watch on Prospering Industry Trends

Mar -19

Source: zacks.com

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Enerpac Tool Group Corp. $EPAC Shares Purchased by Bamco Inc. NY

Mar -16

Source: defenseworld.net

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Enerpac Tool Group (NYSE:EPAC) Sets New 52-Week Low – Here’s What Happened

Mar -15

Source: defenseworld.net

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Enerpac Tool Group Corp. $EPAC Holdings Increased by Capital International Investors

Mar -12

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.81%)

6. Segments

Industrial Tools & Services

Expected Growth: 0.8%

Enerpac Tool Group Corp.'s Industrial Tools & Services segment growth of 0.8 is driven by increasing demand for hydraulic torque wrenches and other precision tools in the oil and gas industry, as well as growth in the aerospace and infrastructure markets. Additionally, the company's focus on innovation and product development has led to the introduction of new products, further contributing to segment growth.

Other Segment

Expected Growth: 0.9%

Enerpac Tool Group Corp.'s Other Segment growth of 0.9% is driven by increasing demand for industrial tools and services, expansion into new geographic markets, and strategic acquisitions. Additionally, the segment benefits from a diversified customer base and a focus on operational efficiency, which helps to offset raw material cost inflation and competitive pricing pressures.

7. Detailed Products

Hydraulic Tools

Enerpac offers a wide range of hydraulic tools, including hydraulic pumps, cylinders, and valves, designed for heavy-lifting, pressing, and assembly applications.

Bolting Tools

Enerpac's bolting tools include hydraulic and pneumatic wrenches, sockets, and pumps, designed for tightening and loosening bolts in various industries.

Workholding Solutions

Enerpac's workholding solutions include hydraulic and pneumatic clamping systems, designed to securely hold workpieces in place during manufacturing and assembly processes.

Lifting Systems

Enerpac's lifting systems include hydraulic and mechanical lifting equipment, designed for heavy-lifting applications in various industries.

Control Systems

Enerpac's control systems include hydraulic and electrical control systems, designed to manage and monitor industrial processes and equipment.

Service and Repair

Enerpac offers service and repair solutions for its products, including maintenance, repair, and calibration services.

8. Enerpac Tool Group Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Enerpac Tool Group Corp. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Enerpac Tool Group Corp. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Enerpac Tool Group Corp. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Enerpac Tool Group Corp. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Enerpac Tool Group Corp. is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.59%
Debt Cost 7.43%
Equity Weight 60.41%
Equity Cost 9.92%
WACC 8.94%
Leverage 65.55%

11. Quality Control: Enerpac Tool Group Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Enerpac Tool

A-Score: 5.5/10

Value: 8.6

Growth: 6.8

Quality: 7.1

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Thermon

A-Score: 5.0/10

Value: 4.1

Growth: 5.8

Quality: 7.4

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Graham

A-Score: 5.0/10

Value: 3.3

Growth: 7.9

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Standex

A-Score: 4.4/10

Value: 1.9

Growth: 3.9

Quality: 5.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Park-Ohio

A-Score: 4.3/10

Value: 8.5

Growth: 3.9

Quality: 2.6

Yield: 5.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Twin Disc

A-Score: 4.0/10

Value: 3.9

Growth: 4.8

Quality: 3.5

Yield: 1.0

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.39$

Current Price

36.39$

Potential

-0.00%

Expected Cash-Flows