Enerpac Tool Group Corp. (NYSE: EPAC) reported fiscal third-quarter results in Milwaukee on July 7, with Enerpac Q3 results showing net sales of $167.6 million for the quarter ended May 31, 2026, up 6% from $158.7 million a year earlier. Organic sales increased 3%, according to the company’s earnings release.
The results came alongside a separate announcement that Enerpac signed a definitive agreement to acquire Specialized Fabrication Equipment Group LLC, known as SFE Group. Enerpac said the SFE Group acquisition is valued at approximately $472 million in cash and is expected to close in the first quarter of fiscal 2027, subject to regulatory approvals and customary closing conditions. The company expects to fund the deal with cash on hand and borrowings under its senior credit facility, with net debt-to-adjusted EBITDA expected to rise to about 2.8 times at closing. The company said further details on that transaction were available through its investor relations website, while the earnings release focused on quarterly financial performance and updated guidance.
#Enerpac Q3 Results Show Product Sales Increased Organically
Enerpac reported net earnings of $29.8 million, or $0.58 per diluted share, compared with $22 million, or $0.41 per diluted share, in the prior-year quarter. Adjusted net earnings were $31 million, or $0.60 per diluted share.
The company said reported and adjusted earnings per share included a $0.08 benefit tied to the expected refund of tariffs imposed under the International Emergency Economic Powers Act. Enerpac also reported adjusted EBITDA of $46.9 million, compared with $41 million in the same period a year earlier.
Within its Industrial Tools & Services segment, product sales increased 5% organically from the prior year. Service revenue declined 8% organically year over year, although the company said service revenue improved 17% sequentially.
Gross profit margin rose 260 basis points from the year-ago quarter to 53%. Enerpac attributed part of the improvement to the expected refund of IEEPA tariffs.
“We were pleased with the performance of our business and the solid growth we delivered in the third quarter of fiscal 2026,” Paul Sternlieb, President and CEO of Enerpac Tool Group, said in the release. He said product sales in the Industrial Tool & Service segment increased 5% organically year over year.
#Enerpac Narrows Fiscal 2026 Sales And EBITDA Guidance
Enerpac narrowed its fiscal 2026 net sales outlook to a range of $635 million to $645 million, compared with its previous guidance of $635 million to $650 million. The company also revised its expected organic growth range to 1% to 2%, from an earlier range of 1% to 3%.
The company lowered its adjusted EBITDA guidance to $151 million to $156 million, from its previous outlook of $158 million to $163 million. Adjusted diluted earnings per share guidance was revised to $1.84 to $1.89, compared with the earlier range of $1.85 to $1.92.
Enerpac left its free cash flow guidance unchanged at $100 million to $110 million. Through the first nine months of fiscal 2026, cash provided by operating activities was $69.3 million, compared with $56 million in the prior-year period.
Darren Kozik, Enerpac’s Executive Vice President and Chief Financial Officer, said the company continued to implement its service improvement plan. “While we continue to implement the Service improvement plan, we expect to see near-term pressure from the Service business and geopolitical events,” Kozik said in the release.
#Enerpac Repurchased $15 Million Of Shares In The Quarter
Enerpac repurchased about 420,000 shares of common stock during the third quarter for approximately $15 million. The repurchases were made under a share repurchase program announced in October 2025.
The company said its board authorized $200 million under the program, with about $120 million remaining as of the end of the quarter. Enerpac also reported a cash balance of $115.7 million and debt of $184.8 million as of May 31, 2026.
Net debt was $69.1 million at quarter-end, resulting in a net debt-to-adjusted EBITDA ratio of 0.5 times. The company said the ratio was calculated under the terms of its September 2022 senior credit facility.
Enerpac’s forward-looking statements cited several risks that could affect its outlook, including geopolitical activity, tariff-related uncertainty, supply chain disruptions, market conditions in industrial and energy-related end markets, acquisition integration risks and regulatory approvals tied to the SFE Group transaction. Management expects continued work on service improvements, while the company’s revised guidance reflects near-term pressure from service activity and geopolitical conditions.