Key Highlights

  • Fiscal fourth quarter net sales rose 11% to USD 185.7 million, with organic growth of 10%.
  • Adjusted diluted EPS were USD 0.53 versus USD 0.52, while GAAP diluted EPS declined to USD 0.47 from USD 0.52.
  • Full-year free cash flow reached USD 119.6 million, up 30%, and net debt to adjusted EBITDA stood at 0.1x.
  • Fiscal 2027 net sales guidance of USD 825 million to USD 845 million includes about ten months of SFE Group.

Enerpac Tool Group Corp. (NYSE:EPAC) reported fiscal fourth-quarter 2026 net sales of USD 185.7 million for the period ended August 31, 2026, up 11% from USD 167.5 million and above a consensus estimate of USD 172.68 million. Adjusted diluted earnings per share of USD 0.53 were above a consensus estimate of USD 0.52 and compared with USD 0.52 a year earlier.

GAAP results were softer. Net earnings were USD 24.4 million, or USD 0.47 per diluted share, against USD 28.1 million, or USD 0.52, as gross margin narrowed to 47.0% from 50.1% and selling, general and administrative expense rose to USD 51.4 million from USD 42.0 million, which included USD 4.1 million of M&A charges. The company attributed the decline in net earnings to mix, higher incentive compensation and growth investments.

Segment Detail and Full-Year Results

The Industrial Tools and Services segment produced USD 179.0 million of sales, up 11%, with product sales of USD 149.3 million rising 11% organically and service sales of USD 29.7 million rising 9%. The service line had declined 12% on an organic basis over the full year, so the quarter marked a reversal. Cortland Biomedical and other businesses added USD 6.7 million, up 13%. Adjusted EBITDA was USD 42.1 million at a 22.6% margin, compared with USD 44.5 million and 26.5%.

For fiscal 2026, net sales rose 6% to USD 652.3 million, which the company described as the highest annual revenue since its 2019 relaunch. Net earnings were USD 89.7 million, or USD 1.72 per diluted share, while adjusted diluted EPS were USD 1.87 versus USD 1.81. Operating cash flow reached USD 130.2 million, and the company spent USD 81.1 million on share repurchases.

Fiscal 2027 Guidance and the SFE Group Deal

CEO Paul Sternlieb pointed to broad product strength in the Americas, encouraging trends in service and strong cash generation, and said the completed SFE Group acquisition and a strong balance sheet give the company flexibility for its capital allocation plans. The deal closed on October 28, 2026.

The company introduced fiscal 2027 guidance of net sales of USD 825 million to USD 845 million, organic growth of 4% to 6%, adjusted EBITDA of USD 195 million to USD 205 million and adjusted diluted EPS of USD 2.00 to USD 2.15. Its chief financial officer said the range includes about ten months of SFE Group, and the guidance assumes no substantial change to the tariff or regulatory environment.

Areas of Focus Going Forward

Four items stand out. The first is margin, since fourth-quarter gross margin of 47.0% and adjusted EBITDA margin of 22.6% sit below the year-earlier 50.1% and 26.5%. The second is service, which grew 9% organically in the quarter after a 12% decline for the full year. The third is the balance sheet: cash of USD 174.7 million and net debt of USD 7.6 million at year-end, before SFE Group is reflected. The fourth is dated, with an Investor Day set for November 4, 2026 at the New York Stock Exchange and an earnings call on October 29 at 7:30 a.m. Central Time. The guided adjusted EBITDA range of USD 195 million to USD 205 million compares with USD 154.3 million in fiscal 2026.