Enpro (NPO) Q1 2026 earnings summary

Executive summary

• Sales reached $303.0 million in Q1 2026, up 10.9% year-over-year, driven by strong semiconductor demand, acquisitions, and growth in Advanced Surface and Sealing Technologies.

• Adjusted EBITDA rose 12.7% to $76.4 million, with margin improving to 25.2%.

• Adjusted diluted EPS increased 12.6% to $2.14, reflecting operational leverage and margin improvements.

• Net income increased to $27.4 million from $24.5 million year-over-year.

• Full-year 2026 guidance was raised for sales, adjusted EBITDA, and adjusted EPS, citing robust order momentum and improved outlook in Advanced Surface Technologies.

Financial highlights

• Net sales: $303.0 million, up 10.9% year-over-year; organic growth was 3.6%.

• Adjusted EBITDA: $76.4 million, up 12.7% year-over-year; margin at 25.2%.

• Adjusted diluted EPS: $2.14, up 12.6% year-over-year.

• Free cash flow: $26.5 million, more than doubled year-over-year.

• Capital expenditures: $13.1 million, up nearly 40% year-over-year, supporting growth and efficiency projects.

Outlook and guidance

• 2026 revenue growth guidance raised to 10–14% (from 8–12%).

• Adjusted EBITDA guidance increased to $315M–$330M (from $305M–$320M).

• Adjusted diluted EPS guidance raised to $8.85–$9.50 (from $8.50–$9.20).

• AST revenue growth expected in the mid-teens year-over-year, with segment profitability approaching 25% by year-end.

• Guidance assumes $111M–$113M depreciation/amortization, $50M capex, $32M–$34M net interest, and 25% normalized tax rate.