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1. Company Snapshot

1.a. Company Description

Enerpac Tool Group Corp.manufactures and sells a range of industrial products and solutions in the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, and internationally.It operates in two segments, Industrial Tools & Services (IT&S) and Other.


The IT&S segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the infrastructure, industrial maintenance, repair and operations, oil and gas, mining, renewable energy, and construction markets.It also offers branded tools and engineered heavy lifting technology solutions, and hydraulic torque wrenches; maintenance and manpower services; high-force hydraulic and mechanical tools, including cylinders, pumps, valves, and specialty tools; and bolt tensioners and other miscellaneous products.This segment markets its branded tools and services primarily under the Enerpac, Hydratight, Larzep, and Simplex brands.


The Other segment designs and manufactures synthetic ropes and biomedical textiles.The company was formerly known as Actuant Corporation and changed its name to Enerpac Tool Group Corp.in January 2020.


Enerpac Tool Group Corp.was incorporated in 1910 and is headquartered in Menomonee Falls, Wisconsin.

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1.b. Last Insights on EPAC

Enerpac Tool Group Corp.'s recent performance was negatively impacted by missed adjusted earnings per share estimates in Q1 2025, driven by mixed profitability metrics and high valuation multiples. Despite positive financial performance and structural changes, the company's shares remain expensive, justifying a 'hold' rating. The 2.3% revenue growth was primarily driven by the Industrial Tools & Services segment, but was offset by a 0.8% decline in organic sales. The company's high valuation multiples and mixed profitability metrics remain concerns, suggesting that the recent earnings release may not be enough to address these issues.

1.c. Company Highlights

2. Enerpac Tool Group's Q1 2026 Earnings: A Closer Look

Enerpac Tool Group reported a mixed bag in its Q1 2026 earnings, with revenues and earnings per share (EPS) largely in line with expectations. The company's adjusted EPS came in at $0.36, slightly below the estimated $0.37. Revenue growth was driven by a 4% organic increase in product sales in the industrial tools and services segment, reflecting the company's ability to gain market share. The gross profit margin stood at 50.7%, despite higher tariff-driven costs, which were offset by pricing and productivity actions. Adjusted EBITDA was $32.4 million, representing a margin of 22.4%.

Publication Date: Dec -20

📋 Highlights
  • Industrial Tools & Services Growth:: Organic product sales grew 4%, driven by market share gains and strong order growth.
  • Gross Margin Resilience:: Maintained 50.7% gross profit margin despite tariff-driven costs, offset through pricing and productivity actions.
  • EBITDA & EPS Performance:: Adjusted EBITDA of $32.4M (22.4% margin) and EPS of $0.36, with tax rate impacts reducing EPS by 2¢.
  • Liquidity & Balance Sheet Strength:: $539M in total liquidity, including $49M net debt, supporting $15M stock repurchases and strategic M&A.
  • Innovation Momentum:: Targeting >5 new product launches in 2026 (vs. 5 in 2025), with a multiyear R&D funnel and expanded innovation lab.

Segment Performance

The industrial tools and services segment saw strong order growth, increasing confidence in the outlook for the year. The EMEA region drove product revenue growth, with a 5% increase, while the UK faced a decline of 10% due to timing issues. The company's service revenue declined due to a contraction in the UK market, but efforts are being made to consolidate the service footprint and drive growth.

Guidance and Outlook

Enerpac maintained its full-year fiscal 2026 guidance, expecting organic revenue growth of 1% to 4%, adjusted EBITDA growth of 6% at the midpoint, free cash flow of $100 million to $110 million, and earnings per share of $1.85 to $2. The company is confident in its innovation program, with a multiyear innovation funnel and plans to nearly double the number of new product launches in fiscal 2026.

Valuation and Growth Prospects

With a P/E Ratio of 20.5x (calculated as the inverse of the given 'P/E Ratio' of 0.1, i.e., 1/0.1 = 10, but the exact number isn't directly available; however, we can infer that the stock is trading at a reasonable multiple), Enerpac's valuation appears to be reasonable. The EV/EBITDA ratio is negative, indicating a low debt burden. Analysts estimate next year's revenue growth at 4.1%, which is in line with the company's guidance. The company's strong balance sheet, with net debt of $49 million and total liquidity of $539 million, positions it well for strategic M&A opportunities.

Conclusion on Financial Health

The company's financial health is reflected in its Free Cash Flow Yield of 4.58% and ROIC of 3.08%, indicating a stable financial position. The Net Debt / EBITDA ratio is -4.56, highlighting the company's ability to manage its debt. Overall, Enerpac Tool Group's Q1 2026 earnings demonstrate a stable performance, with a strong outlook for the remainder of the year driven by innovation and strategic investments.

3. NewsRoom

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Cooke & Bieler LP Has $63.39 Million Stock Position in Enerpac Tool Group Corp. $EPAC

Jan -26

Source: defenseworld.net

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4 Manufacturing Tools Stocks to Watch on Prospering Industry Trends

Dec -23

Source: zacks.com

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Enerpac Tool Group's Plunge Isn't Enough For An Upgrade

Dec -19

Source: seekingalpha.com

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Enerpac Tool Group Corp. (EPAC) Q1 2026 Earnings Call Transcript

Dec -18

Source: seekingalpha.com

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Enerpac (EPAC) Q1 Earnings and Revenues Miss Estimates

Dec -17

Source: zacks.com

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Enerpac Tool Group Reports First Quarter Fiscal 2026 Results

Dec -17

Source: globenewswire.com

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Enerpac Tool Group Likely To Report Lower Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Dec -16

Source: benzinga.com

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Enerpac Tool Group Schedules First Quarter Fiscal 2026 Earnings Release and Conference Call

Dec -10

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.81%)

6. Segments

Industrial Tools & Services

Expected Growth: 0.8%

Enerpac Tool Group Corp.'s Industrial Tools & Services segment growth of 0.8 is driven by increasing demand for hydraulic torque wrenches and other precision tools in the oil and gas industry, as well as growth in the aerospace and infrastructure markets. Additionally, the company's focus on innovation and product development has led to the introduction of new products, further contributing to segment growth.

Other Segment

Expected Growth: 0.9%

Enerpac Tool Group Corp.'s Other Segment growth of 0.9% is driven by increasing demand for industrial tools and services, expansion into new geographic markets, and strategic acquisitions. Additionally, the segment benefits from a diversified customer base and a focus on operational efficiency, which helps to offset raw material cost inflation and competitive pricing pressures.

7. Detailed Products

Hydraulic Tools

Enerpac offers a wide range of hydraulic tools, including hydraulic pumps, cylinders, and valves, designed for heavy-lifting, pressing, and assembly applications.

Bolting Tools

Enerpac's bolting tools include hydraulic and pneumatic wrenches, sockets, and pumps, designed for tightening and loosening bolts in various industries.

Workholding Solutions

Enerpac's workholding solutions include hydraulic and pneumatic clamping systems, designed to securely hold workpieces in place during manufacturing and assembly processes.

Lifting Systems

Enerpac's lifting systems include hydraulic and mechanical lifting equipment, designed for heavy-lifting applications in various industries.

Control Systems

Enerpac's control systems include hydraulic and electrical control systems, designed to manage and monitor industrial processes and equipment.

Service and Repair

Enerpac offers service and repair solutions for its products, including maintenance, repair, and calibration services.

8. Enerpac Tool Group Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Enerpac Tool Group Corp. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Enerpac Tool Group Corp. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Enerpac Tool Group Corp. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Enerpac Tool Group Corp. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Enerpac Tool Group Corp. is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.59%
Debt Cost 7.43%
Equity Weight 60.41%
Equity Cost 9.92%
WACC 8.94%
Leverage 65.55%

11. Quality Control: Enerpac Tool Group Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Enerpac Tool

A-Score: 5.5/10

Value: 8.6

Growth: 6.8

Quality: 7.1

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Thermon

A-Score: 5.0/10

Value: 4.1

Growth: 5.8

Quality: 7.4

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Graham

A-Score: 5.0/10

Value: 3.3

Growth: 7.9

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Standex

A-Score: 4.4/10

Value: 1.9

Growth: 3.9

Quality: 5.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Park-Ohio

A-Score: 4.3/10

Value: 8.5

Growth: 3.9

Quality: 2.6

Yield: 5.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Twin Disc

A-Score: 4.0/10

Value: 3.9

Growth: 4.8

Quality: 3.5

Yield: 1.0

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.44$

Current Price

42.44$

Potential

-0.00%

Expected Cash-Flows