Enpro Raises 2026 Outlook as Q3 Sales Jump 22.4% and Adjusted EPS Climbs 33.7% to $2.66
Enpro raised its full-year 2026 outlook after third-quarter sales jumped 22.4% to $350.8 million and adjusted earnings per share climbed 33.7% to $2.66, powered by semiconductor demand in its Advanced Surface Technologies business.
Net income rose 86.6% to $40.3 million, and GAAP diluted EPS increased to $1.88 from $1.01 a year earlier, according to the earnings release the industrial technology company filed with an 8-K on Tuesday. Adjusted EBITDA grew 31.7% to $91.3 million, lifting the adjusted EBITDA margin to 26.0% from 24.2%.
Excluding foreign exchange and the AlpHa Measurement Solutions and Overlook Industries acquisitions completed in the fourth quarter of 2025, sales grew 16.9%. Operating margin widened to 18.0% from 14.3%.
"Our strong third quarter performance reflects our disciplined execution and success of Enpro 3.0 as we continue to accelerate profitable growth across the organization," CEO Eric Vaillancourt said in the release.
Semiconductor demand lifts AST
Advanced Surface Technologies was the standout. Segment sales rose 25.8%, all of it organic, to $136.5 million on leading-edge precision cleaning, semiconductor capital equipment and coatings demand. Adjusted segment EBITDA surged 57.3% to $34.3 million, and the segment margin expanded 500 basis points to 25.1%.
Sealing Technologies sales grew 20.5% to $214.7 million, or 11.6% excluding currency and acquisitions, on strength in aerospace, domestic general industrial and compositional analysis applications plus pricing. Slow European general industrial and food and biopharmaceutical demand partly offset that. Adjusted segment EBITDA rose 21.8% to $69.9 million, for a 32.6% margin.
Guidance raised
Enpro now expects 2026 revenue of $1.33 billion to $1.34 billion, a 16% to 17% increase, up from prior guidance for 14% to 16% growth. It raised its adjusted EBITDA range to $340 million to $345 million from $330 million to $340 million, and its adjusted diluted EPS range to $9.70 to $9.95 from $9.30 to $9.80.
Cash, debt and buybacks
Operating cash flow for the first nine months was $172.8 million, up from $138.5 million, and free cash flow rose to $129.2 million from $104.9 million. Enpro paid down $55.0 million of revolving debt in the quarter and $135.0 million year to date, ending September with total debt of $520.7 million, cash of $83.4 million and net leverage of 1.4 times trailing adjusted EBITDA.
The board approved a new $50 million share repurchase authorization in October, replacing an identical program that expired with no shares bought, the company said. The new authorization runs through October 2028. Enpro also declared its regular quarterly dividend of $0.32 per share, payable Dec. 16 to holders of record on Dec. 2.
By the numbers
- Sales: $350.8 million, up 22.4%
- GAAP diluted EPS: $1.88, up from $1.01
- Adjusted diluted EPS: $2.66, up 33.7%
- AST adjusted segment EBITDA: $34.3 million, up 57.3%
- 2026 adjusted EPS outlook: $9.70 to $9.95, raised
Sources
- Enpro Inc. Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001628280-26-069122)
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