Enpro (NPO) Oppenheimer 21st Annual Industrial Growth Virtual Conference summary

Portfolio Transformation and Strategic Focus

• Completed significant portfolio transformation from 2017–2024, divesting non-strategic businesses and reinvesting in high-margin, high-cash-flow segments, notably in semiconductors and sealing technologies.

• Transitioned from resolving legacy liabilities (2002–2018) to portfolio optimization (2019–2024) and now focuses on accelerating profitable growth as a premium industrial technology compounder from 2025 onward.

• Entered Enpro 3.0 phase in 2025, emphasizing accelerated personal and profitable growth, with no major divestitures planned and a focus on organic and strategic M&A-driven expansion.

• Emphasizes organic growth, strategic acquisitions, and strong free cash flow to support expansion.

• Achieved over 20% EBITDA margins during portfolio transformation and targets over 25% EBITDA margins in the current phase.

Financial Performance and Guidance

• Reported LTM revenue of $1.2B and adjusted EBITDA of $286M (24.4% margin) as of March 31, 2026.

• Increased 2026 guidance: revenue growth now expected at 10–14% (up from 8–12%), adjusted EBITDA at $315M–$330M, and adjusted diluted EPS at $8.85–$9.50.

• Free cash flow for Q1 2026 was $26.5M, up from $11.6M in the prior year.

• Raised guidance for AST segment, expecting strong growth and margin improvement in H2 2024 and into 2027.

• Sealing Technologies expected to maintain premium margins and mid-single-digit organic growth, with additional upside from recent acquisitions.

Segment Highlights and Recent Acquisitions

• Sealing Technologies segment includes Garlock, STEMCO, and Technetics, with strong aftermarket presence and proprietary solutions for critical environments.

• Advanced Surface Technologies focuses on semiconductor and industrial markets, leveraging proprietary processes and global infrastructure investments.

• Acquired Overlook Industries (biopharma single-use technologies) and Alpha Measurement Solutions (liquid analytical sensors) in late 2025, both integrated into Sealing Technologies.

• Sealing Technologies targets mid-single-digit organic growth and maintains strong 30% EBITDA margins, serving as a cash generator and M&A focus.

• AST manages the full lifecycle of in-chamber semiconductor tools, offering design, manufacturing, coating, and precision cleaning, with a strong presence in advanced node manufacturing.