Fourth Quarter 2024 Results (All results reflect
comparisons to the respective prior-year period unless otherwise
noted)
- Sales of $258.4 million increased 3.7% and organic sales
increased 1.2%
- GAAP net income from continuing operations attributable to
Enpro Inc. improved to $13.9 million, compared to a GAAP loss of
$4.9 million last year
- Adjusted EBITDA* increased 24.1% to $58.2 million
- Diluted earnings per share from continuing operations
attributable to Enpro Inc. improved to $0.66, compared to a diluted
loss per share of $0.23
- Adjusted diluted earnings per share* increased 31.9% to $1.57
versus $1.19 last year
Full Year 2024 Results
- Sales of $1.05 billion down 1.0% and organic sales down
3.9%
- GAAP net income from continuing operations attributable to
Enpro Inc. increased to $72.9 million, compared to income of $10.8
million last year
- Adjusted EBITDA* increased 7.1% to $254.8 million
- Diluted earnings per share from continuing operations
attributable to Enpro Inc. increased to $3.45, compared to diluted
earnings per share of $0.51 last year
- Adjusted diluted earnings per share* increased 6.4% to $6.96
versus $6.54 last year
2025 Guidance
- Introducing guidance for 2025: revenue growth in the low to
mid-single-digit range, adjusted EBITDA* in the range of $262
million to $277 million and adjusted diluted earnings per share* of
$7.00 to $7.70
- Strong balance sheet and free cash flow generation provide
financial flexibility to further organic growth initiatives and
strategic acquisitions
Enpro Inc. (NYSE: NPO) today announced its financial results for
the three months and year ended December 31, 2024.
"Our strong finish to 2024 was driven by excellent performance
in Sealing Technologies and sequential improvement in sales and
segment profitability at AST," said Eric Vaillancourt, President
and Chief Executive Officer. "We are encouraged by the improvement
in our year-over-year results despite continued soft conditions in
semiconductor capital equipment spending and commercial vehicle OEM
markets, which reflects the resilience of our businesses and the
differentiated value of our critical solutions. As we enter 2025
and beyond, we will continue to deliver significant value to our
customers by demonstrating agility, exercising discipline and
applying our engineering expertise and technology advantages.”
Mr. Vaillancourt continued, "Our strong balance sheet and cash
flow generation enable us to pursue a number of high-margin organic
growth opportunities and select acquisitions that meet our rigorous
strategic and financial criteria. We continue to support and
empower our teams as we build on our strengths that drive
profitable growth, continuous improvement and long-term enterprise
value creation."
Financial Highlights (Amounts in millions except per
share data and percentages)
Quarters Ended December
31,
Years Ended December
31,
2024
2023
Change
2024
2023
Change
Net Sales
$
258.4
$
249.1
3.7
%
$
1,048.7
$
1,059.3
(1.0
)%
Income (Loss) from Continuing Operations
Attributable to Enpro Inc.
$
13.9
$
(4.9
)
nm
$
72.9
$
10.8
575.0
%
Diluted Earnings (Loss) Per Share
Attributable to Enpro Inc. Continuing Operations
$
0.66
$
(0.23
)
nm
$
3.45
$
0.51
576.5
%
Adjusted Income from Continuing Operations
Attributable to Enpro Inc.*
$
33.2
$
25.0
32.8
%
$
146.9
$
137.0
7.2
%
Adjusted Diluted Earnings Per Share*
$
1.57
$
1.19
31.9
%
$
6.96
$
6.54
6.4
%
Adjusted EBITDA*
$
58.2
$
46.9
24.1
%
$
254.8
$
238.0
7.1
%
Adjusted EBITDA Margin*
22.5
%
18.8
%
24.3
%
22.5
%
*Non-GAAP measure. See the attached
schedules for adjustments and reconciliations of historical
non-GAAP measures to GAAP measures. No reconciliation is presented
for the 2024 guidance range of adjusted EBITDA and adjusted diluted
earnings per share from continuing operations. Because of the
forward-looking nature of these estimates, it is impractical to
present quantitative reconciliations of such measures to comparable
GAAP measures.
Fourth Quarter 2024 Consolidated Results of Continuing
Operations
Sales of $258.4 million increased 3.7%. Strong sales in
aerospace, food and pharma, general industrial and nuclear power
generation, in addition to strategic pricing actions, offset
continued softness in semiconductor capital equipment spending and
commercial vehicle OEM markets. Excluding the impact of the AMI
acquisition completed in January 2024 and foreign currency exchange
translation, organic sales grew 1.2%.
Corporate expenses of $13.4 million were down from $14.7 million
a year ago primarily due to a decrease in share-price-based
long-term incentive compensation expense.
Net income from continuing operations attributable to Enpro Inc.
was $13.9 million, compared to a loss of $4.9 million. Adjusted
income from continuing operations attributable to Enpro Inc. of
$33.2 million increased 32.8% compared last year. Diluted earnings
per share attributable to Enpro Inc. continuing operations was
$0.66, compared to a diluted loss per share of $0.23 in the
prior-year period, and adjusted diluted earnings per share* of
$1.57 increased 31.9%.
Adjusted EBITDA* of $58.2 million increased 24.1% from $46.9
million last year primarily driven by improved year-over-year
performance across the Sealing Technologies segment.
Fourth Quarter 2024 Segment Highlights of Continuing
Operations
Sealing Technologies -
Safeguarding environments with critical applications in diverse end
markets
Garlock, STEMCO and Technetics Group
Quarters Ended December
31,
Years Ended December
31,
(Amounts in millions except
percentages)
2024
2023
Change
2024
2023
Change
Sales
$
163.0
$
147.0
10.9
%
$
687.2
$
658.4
4.4
%
Adjusted Segment EBITDA
$
50.6
$
38.4
31.8
%
$
224.1
$
192.3
16.5
%
Adjusted Segment EBITDA Margin
31.0
%
26.1
%
32.6
%
29.2
%
- Sales increased 10.9% versus the prior-year period. Excluding
the impact of foreign exchange translation and the AMI acquisition,
sales increased 6.7%. Strong demand in aerospace and nuclear
markets, strategic pricing actions and a recovery in food and
pharma and European general industrial markets offset continued
weakness in commercial vehicle OEM and Asian industrial
markets.
- Adjusted segment EBITDA increased 31.8% versus the prior-year
period. Improved volume, positive mix, and strategic pricing
initiatives contributed to increased segment profitability.
Excluding the impact of foreign exchange translation and the AMI
acquisition, adjusted segment EBITDA increased 23.4% compared to
last year.
Advanced Surface
Technologies - Leading edge precision manufacturing,
coatings, innovative optical solutions and cleaning and
refurbishment solutions - NxEdge, Technetics Semi, LeanTeq and
Alluxa
Quarters Ended December
31,
Years Ended December
31,
(Amounts in millions except
percentages)
2024
2023
Change
2024
2023
Change
Sales
$
95.6
$
102.1
(6.4
)%
$
362.2
$
401.2
(9.7
)%
Adjusted Segment EBITDA
$
21.1
$
22.7
(7.0
)%
$
76.7
$
95.5
(19.7
)%
Adjusted Segment EBITDA Margin
22.1
%
22.2
%
21.2
%
23.8
%
- Sales decreased 6.4% versus the prior-year period driven
primarily by continued weakness in semiconductor capital equipment
spending, partially offset by strength in solutions serving
leading-edge applications.
- Adjusted segment EBITDA decreased 7.0% versus last year.
Positive mix and continuous improvement initiatives largely offset
the overall volume decline, material cost increases and operating
costs related to growth investments.
Full Year 2024 Consolidated Results
Sales of $1.05 billion decreased 1.0% compared to last year. On
an organic basis, sales declined 3.9% year-over-year driven
primarily by the continued slowdown in semiconductor capital
equipment spending and a sharp decline in commercial vehicle OEM
markets partially offset by strength in the nuclear energy,
aerospace, firm demand in commercial vehicle aftermarket and
recovery in European general industrial and food and pharma
markets.
Corporate expenses for 2024 of $46.4 million decreased $4.7
million compared to last year primarily due to a decrease in
share-price-based long-term incentive compensation expense.
Income from continuing operations attributable to Enpro Inc.
increased to $72.9 million, compared to $10.8 million in the prior
year. Adjusted income from continuing operations attributable to
Enpro Inc. of $146.9 million increased 7.2% compared to 2023.
Diluted earnings per share attributable to Enpro Inc. continuing
operations increased to $3.45, compared to diluted earnings per
share of $0.51 in the prior year. Adjusted diluted earnings per
share* increased 6.4% to $6.96.
Adjusted EBITDA* of $254.8 million increased 7.1% compared to
last year. Adjusted EBITDA margin* of 24.3% increased 180 basis
points compared to last year driven primarily by improved mix,
continuous improvement initiatives and cost mitigation
activities.
Balance Sheet, Cash Flow and Capital Allocation
The company generated $162.9 million of cash flow from
continuing operations during the year ended December 31, 2024 and
$130.0 million of free cash flow, net of $32.9 million in capital
expenditures and capitalized software. This compares to $208.4
million of cash flow from continuing operations and $174.1 million
of free cash flow, net of $34.3 million in capital expenditures and
capitalized software, in 2023. During the fourth quarter, the
company paid a regular quarterly dividend of $0.30 per share, with
dividends totaling $25.3 million for the year ended December 31,
2024.
Enpro ended the fourth quarter with cash of $236.3 million and
$390 million available under its revolving credit facility. The
company exited 2024 with a net leverage ratio of approximately
1.6x.
Quarterly Dividend
On February 13, 2025, Enpro Inc. increased its quarterly
dividend by 3.3% to $0.31 per share, from $0.30 per share
previously. The dividend is payable on March 19, 2025, to
shareholders of record as of the close of business on March 5,
2025. The company has increased its quarterly dividend for ten
consecutive years since initiating a dividend in 2015.
2025 Guidance
The company expects 2025 revenue growth to be in the low to
mid-single digit range, adjusted EBITDA* to be in the range of $262
million to $277 million and adjusted diluted earnings per share*
from continuing operations to be in the range of $7.00 to
$7.70.
Conference Call, Webcast Information, and
Presentations
Enpro will hold a conference call today, February 19, 2025, at
8:30 a.m. Eastern Time to discuss fourth quarter and full year 2024
results. Investors who wish to participate in the call should dial
1-877-407-0832 approximately 10 minutes before the call begins and
provide conference ID number 13740581. A live audio webcast of the
call and accompanying slide presentation will be accessible from
the company’s website, https://www.enpro.com. To access the
earnings presentation, log on to the webcast by clicking the link
on the company’s home page.
Segment Operating Performance Measure
The segment profitability metric used by management to allocate
resources and assess segment performance is adjusted segment
EBITDA, which is segment revenue reduced by operating expenses and
other costs identifiable with the segment, excluding acquisition
and divestiture expenses, restructuring costs, impairment charges,
non-controlling interest compensation, amortization of the fair
value adjustment to acquisition date inventory, and depreciation
and amortization. Segment non-operating expenses and income,
corporate expenses, net interest expense, and income taxes are not
included in the computation of adjusted segment EBITDA. Under U.S.
generally accepted accounting principles (“GAAP”), the segment
profitability metric used by management to allocate resources and
assess segment performance is required to be disclosed in financial
statement footnotes, and accordingly such metric as presented for
each segment is not deemed to be a non-GAAP measure under
applicable regulations of the Securities and Exchange
Commission.
Non-GAAP Financial Information
This press release contains financial measures that have not
been prepared in conformity with GAAP. They include adjusted income
from continuing operations, adjusted diluted earnings per share,
adjusted EBITDA, adjusted EBITDA margin, total adjusted segment
EBITDA and free cash flow. Tables showing the reconciliation of
these historical non-GAAP financial measures to the comparable GAAP
measures are attached to the release. Adjusted EBITDA and adjusted
diluted earnings per share anticipated for full-year 2025 are
calculated in a manner consistent with the historical presentation
of these measures in the attached tables. Because of the
forward-looking nature of these estimates, it is impractical to
present quantitative reconciliations of such measures to comparable
GAAP measures, and accordingly no such GAAP measures are being
presented.
Management believes these non-GAAP metrics are commonly used
financial measures for investors to evaluate the company’s
operating performance and, when read in conjunction with the
company’s consolidated financial statements, present a useful tool
to evaluate the company’s ongoing operations and performance from
period to period. In addition, these are some of the factors the
company uses in internal evaluations of the overall performance of
its businesses. Management acknowledges that there are many items
that impact a company’s reported results and the adjustments
reflected in these non-GAAP measures are not intended to present
all items that may have impacted these results. In addition, these
non-GAAP measures are not necessarily comparable to similarly
titled measures used by other companies.
Forward-Looking Statements and Guidance
Statements in this press release that express a belief,
expectation or intention, including the 2025 guidance and other
statements that are not historical fact, are forward-looking
statements under the Private Securities Litigation Reform Act of
1995. They involve a number of risks and uncertainties that may
cause actual events and results to differ materially from such
forward-looking statements. These risks and uncertainties include,
but are not limited to: economic conditions in the markets served
by the company’s businesses and the businesses of its customers,
some of which are cyclical and experience periodic downturns; the
impact of geopolitical activity on those markets, including
instabilities associated with the armed conflicts in Ukraine and in
the Middle East region and any conflict or threat of conflict that
may affect Taiwan; uncertainties with respect to the imposition, or
threat of imposition, of government tariffs, embargoes and other
trade protection measures, such as “anti-dumping” duties applicable
to classes of products, and import or export licensing
requirements, as well as the imposition of trade sanctions against
a class of products imported from or sold and exported to, or the
loss of “normal trade relations” status with, countries in which
the company conducts business, could significantly increase the
company’s cost of products or otherwise reduce its sales and harm
its business; uncertainties with respect to prices and availability
of raw materials, including as a result of instabilities from
geopolitical conflicts; uncertainties with respect to the company’s
ability to achieve anticipated growth within the semiconductor,
life sciences, and other technology-enabled markets, including
uncertainties with respect to receipt of CHIPS Act support and the
timing of completion of the new Arizona facility; the impact of
fluctuations in relevant foreign currency exchange rates or
unanticipated increases in applicable interest rates; unanticipated
delays or problems in introducing new products; the impact of any
labor disputes; announcements by competitors of new products,
services or technological innovations; changes in the company’s
pricing policies or the pricing policies of its competitors; risks
related to the reliance of the Advanced Surface Technologies
segment on a small number of significant customers; uncertainties
with respect to the company’s ability to identify and complete
business acquisitions consistent with its strategy and to
successfully integrate any businesses that it acquires; and
uncertainties with respect to the amount of any payments required
to satisfy contingent liabilities, including those related to
discontinued operations, other divested businesses and discontinued
operations of the company’s predecessors, including liabilities for
certain products, environmental matters, employee benefit and
statutory severance obligations and other matters. Enpro’s filings
with the Securities and Exchange Commission, including its most
recent Form 10-K and Form 10-Q reports, describe these and other
risks and uncertainties in more detail. Enpro does not undertake to
update any forward-looking statements made in this press release to
reflect any change in management's expectations or any change in
the assumptions or circumstances on which such statements are
based.
Full-year guidance is subject to the risks and uncertainties
discussed above and specifically excludes changes in the number of
shares outstanding, impacts from future and pending acquisitions,
dispositions and related transaction costs, restructuring costs and
the impact of changes in foreign exchange rates, in each case
subsequent to December 31, 2024, and any incremental impact on
demands and costs arising from tariffs announced, or trade tensions
arising, subsequent to February 18, 2025.
About Enpro
Enpro is a leading industrial technology company focused on
critical applications across many end-markets, including
semiconductor, industrial process, commercial vehicle, sustainable
power generation, aerospace, food and pharma, photonics and life
sciences. Headquartered in Charlotte, North Carolina, Enpro is
listed on the New York Stock Exchange under the symbol "NPO". For
more information about Enpro Inc., visit the company’s website at
http://www.enpro.com.
APPENDICES
Consolidated Financial Information and
Reconciliations
Enpro Inc.
Consolidated Statements of Operations
(Unaudited)
For the Quarters and Years Ended December
31, 2024 and 2023
(In Millions, Except Per Share Data)
Quarters Ended
Years Ended
December 31,
December 31,
December 31,
December 31,
2024
2023
2024
2023
Net sales
$
258.4
$
249.1
$
1,048.7
$
1,059.3
Cost of sales
149.1
152.8
603.9
632.5
Gross profit
109.3
96.3
444.8
426.8
Operating expenses:
Selling, general and administrative
76.9
73.9
296.3
284.2
Goodwill impairment
—
—
—
60.8
Other
0.2
1.9
6.2
5.0
Total operating expenses
77.1
75.8
302.5
350.0
Operating income
32.2
20.5
142.3
76.8
Interest expense
(9.5
)
(10.1
)
(40.9
)
(45.0
)
Interest income
1.7
3.6
6.4
14.9
Other expense
(4.7
)
(4.7
)
(13.4
)
(9.0
)
Income from continuing operations before
income taxes
19.7
9.3
94.4
37.7
Income tax expense
(5.8
)
(13.8
)
(21.5
)
(30.8
)
Income (loss) from continuing
operations
13.9
(4.5
)
72.9
6.9
Income from discontinued operations,
including gain on sale, net of taxes
—
—
—
11.4
Net income (loss)
13.9
(4.5
)
72.9
18.3
Less: net income (loss) attributable to
redeemable non-controlling interests
—
0.4
—
(3.9
)
Net income (loss) attributable to Enpro
Inc.
$
13.9
$
(4.9
)
$
72.9
$
22.2
Income (loss) attributable to Enpro Inc.
common shareholders:
Income (loss) from continuing operations,
net of tax
$
13.9
$
(4.9
)
$
72.9
$
10.8
Income from discontinued operations, net
of tax
—
—
—
11.4
Net income (loss) attributable to Enpro
Inc.
$
13.9
$
(4.9
)
$
72.9
$
22.2
Basic earnings (loss) per share
attributable to Enpro Inc.:
Continuing operations
$
0.66
$
(0.23
)
$
3.48
$
0.52
Discontinued operations
—
—
—
0.54
Basic earnings (loss) per share
$
0.66
$
(0.23
)
$
3.48
$
1.06
Average common shares outstanding
21.0
20.9
21.0
20.9
Diluted earnings (loss) per share
attributable to Enpro Inc.:
Continuing operations
$
0.66
$
(0.23
)
$
3.45
$
0.51
Discontinued operations
—
—
—
0.54
Diluted earnings (loss) per share
$
0.66
$
(0.23
)
$
3.45
$
1.05
Average common shares outstanding
21.2
21.0
21.1
21.0
Enpro Inc.
Consolidated Statements of Cash Flows
(Unaudited)
For the Years Ended December 31, 2024 and
2023
(In Millions)
2024
2023
Operating activities of continuing
operations
Net income
$
72.9
$
18.3
Adjustments to reconcile net income to net
cash provided by operating activities of continuing operations:
Income from discontinued operations, net
of taxes
—
(11.4
)
Taxes paid related to sale of discontinued
operations
—
(3.3
)
Depreciation
23.9
24.5
Amortization
76.4
70.0
Goodwill impairment
—
60.8
Promissory note reserve
4.5
—
Deferred income taxes
(18.4
)
(7.7
)
Stock-based compensation
12.0
9.8
Other non-cash adjustments
9.2
4.6
Change in assets and liabilities, net of
effects of acquisitions and divestitures of businesses:
Accounts receivable, net
1.6
21.6
Inventories
6.3
10.3
Accounts payable
(5.4
)
(5.2
)
Income taxes, net
2.0
24.2
Other current assets and liabilities
(7.6
)
(5.8
)
Other non-current assets and
liabilities
(14.5
)
(2.3
)
Net cash provided by operating activities
of continuing operations
162.9
208.4
Investing activities of continuing
operations
Purchases of property, plant and
equipment
(29.1
)
(33.9
)
Payments for capitalized internal-use
software
(3.8
)
(0.4
)
Proceeds from sale of businesses, net of
cash sold
—
25.9
Acquisitions, net of cash acquired
(209.4
)
—
Purchase of short-term investments
—
(35.8
)
Redemption of short-term investments
—
35.8
Other
0.8
1.0
Net cash used in investing activities of
continuing operations
(241.5
)
(7.4
)
Financing activities of continuing
operations
Proceeds from debt
52.5
—
Repayments of debt
(60.6
)
(145.1
)
Acquisition of non-controlling interests
of Enpro subsidiaries
(18.3
)
—
Dividends paid
(25.3
)
(24.3
)
Other
1.2
(1.5
)
Net cash used in financing activities of
continuing operations
(50.5
)
(170.9
)
Cash flows of discontinued operations
Operating cash flows
—
(0.6
)
Net cash used in discontinued
operations
—
(0.6
)
Effect of exchange rate changes on cash
and cash equivalents
(4.4
)
5.9
Net increase (decrease) in cash and cash
equivalents
(133.5
)
35.4
Cash and cash equivalents at beginning of
period
369.8
334.4
Cash and cash equivalents at end of
period
$
236.3
$
369.8
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest, net
$
38.9
$
43.3
Income taxes, net
$
36.1
$
17.2
Enpro Inc.
Consolidated Balance Sheets
(Unaudited)
As of December 31, 2024 and 2023
(In Millions)
2024
2023
Current assets
Cash and cash equivalents
$
236.3
$
369.8
Accounts receivable, net
115.9
116.7
Inventories
138.8
142.6
Other current assets
21.3
21.2
Total current assets
512.3
650.3
Property, plant and equipment, net
193.2
193.8
Goodwill
896.2
808.4
Other intangible assets
790.3
733.5
Other assets
99.5
113.5
Total assets
$
2,491.5
$
2,499.5
Current liabilities
Current maturities of long-term debt
$
16.0
$
8.1
Accounts payable
66.0
68.7
Accrued expenses
116.0
119.6
Total current liabilities
198.0
196.4
Long-term debt
624.1
638.7
Deferred taxes and non-current income
taxes payable
126.9
120.7
Other liabilities
113.9
116.1
Total liabilities
1,062.9
1,071.9
Redeemable non-controlling interests
—
17.9
Shareholders’ equity
Common stock
0.2
0.2
Additional paid-in capital
319.4
304.9
Retained earnings
1,175.6
1,128.0
Accumulated other comprehensive income
(loss)
(65.4
)
(22.2
)
Common stock held in treasury, at cost
(1.2
)
(1.2
)
Total shareholders’ equity
1,428.6
1,409.7
Total liabilities and equity
$
2,491.5
$
2,499.5
Enpro Inc.
Segment Information (Unaudited)
For the Quarters and Years Ended December
31, 2024 and 2023
(Dollars in Millions)
Sales
Quarters Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Sealing Technologies
$
163.0
$
147.0
$
687.2
$
658.4
Advanced Surface Technologies
95.6
102.1
362.2
401.2
258.6
249.1
1,049.4
1,059.6
Elimination of intersegment sales
(0.2
)
—
(0.7
)
(0.3
)
$
258.4
$
249.1
$
1,048.7
$
1,059.3
Income (loss) from continuing
operations attributable to Enpro Inc.
$
13.9
$
(4.9
)
$
72.9
$
10.8
Earnings before interest, income taxes,
depreciation,
amortization and other selected items
(Adjusted Segment EBITDA)
Quarters Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Sealing Technologies
$
50.6
$
38.4
$
224.1
$
192.3
Advanced Surface Technologies
21.1
22.7
76.7
95.5
$
71.7
$
61.1
$
300.8
$
287.8
Adjusted Segment EBITDA Margin
Quarters Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Sealing Technologies
31.0 %
26.1 %
32.6 %
29.2 %
Advanced Surface Technologies
22.1 %
22.2 %
21.2 %
23.8 %
27.7 %
24.5 %
28.7 %
27.2 %
Reconciliation of Adjusted Segment
EBITDA to Income (Loss) from Continuing Operations Attributable to
Enpro Inc.
Quarters Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Income (loss) from continuing operations
attributable to Enpro Inc.
$
13.9
$
(4.9
)
$
72.9
$
10.8
Plus: net income (loss) attributable to
redeemable non-controlling interests
—
0.4
—
(3.9
)
Income (loss) from continuing
operations
13.9
(4.5
)
72.9
6.9
Income tax expense
(5.8
)
(13.8
)
(21.5
)
(30.8
)
Income from continuing operations before
income taxes
19.7
9.3
94.4
37.7
Acquisition expense
0.5
1.1
4.3
1.1
Non-controlling interest compensation
allocation
—
—
—
(0.3
)
Amortization of the fair value adjustment
to acquisition date inventory
—
—
1.7
—
Restructuring and impairment expense
0.3
1.4
5.8
4.0
Depreciation and amortization expense
25.3
23.4
100.3
94.3
Corporate expenses
13.4
14.7
46.4
51.1
Interest expense, net
7.8
6.5
34.5
30.1
Goodwill impairment
—
—
—
60.8
Other expense, net
4.7
4.7
13.4
9.0
Adjusted Segment EBITDA
$
71.7
$
61.1
$
300.8
$
287.8
Adjusted Segment EBITDA is total segment
revenue reduced by operating expenses and other costs identifiable
with the segment, excluding acquisition and divestiture expenses,
restructuring and impairment expense, non-controlling interest
compensation, amortization of the fair value adjustment to
acquisition date inventory, and depreciation and amortization.
Corporate expenses include general
corporate administrative costs. Expenses not directly attributable
to the segments, corporate expenses, net interest expense,
gains/losses related to the sale of assets, and income taxes are
not included in the computation of Adjusted Segment EBITDA. The
accounting policies of the reportable segments are the same as
those for the Company.
In 2024, we refined our definition of
adjusted segment EBITDA and corporate expenses to include certain
other income or expenses previously reported in other expense, net.
These items were primarily comprised of bank fees and certain
foreign exchange transaction gains and losses. As a result of this
change, for the quarter ended December 30, 2023, we recast our
results to decrease Advanced Surface Technologies Adjusted Segment
EBITDA by $0.2 million and increase corporate expenses by $0.3
million. For the year ended December 31, 2023, we increased
corporate expenses by $1.6 million.
Enpro Inc.
Adjusted Segment EBITDA Reconciling
Items by Segment (Unaudited)
For the Quarters and Years Ended December
31, 2024 and 2023
(In Millions)
Quarter Ended December 31,
2024
Sealing Technologies
Advanced Surface Technologies
Total Segments
Acquisition expense
$
0.5
$
—
$
0.5
Restructuring and impairment expense
$
0.3
$
—
$
0.3
Depreciation and amortization expense
$
8.4
$
16.9
$
25.3
Quarter Ended December 31,
2023
Sealing Technologies
Advanced Surface Technologies
Total Segments
Acquisition expense
$
1.1
$
—
$
1.1
Restructuring and impairment expense
$
1.4
$
—
$
1.4
Depreciation and amortization expense
$
6.2
$
17.2
$
23.4
Year Ended December 31, 2024
Sealing Technologies
Advanced Surface Technologies
Total Segments
Acquisition expense
$
4.3
$
—
$
4.3
Amortization of the fair value adjustment
to acquisition date inventory
$
1.7
$
—
$
1.7
Restructuring and impairment expense
$
2.3
$
3.5
$
5.8
Depreciation and amortization expense
$
32.8
$
67.5
$
100.3
Year Ended December 31, 2023
Sealing Technologies
Advanced Surface Technologies
Total Segments
Acquisition expense
$
1.1
$
—
$
1.1
Non-controlling interest compensation
allocation
$
—
$
(0.3
)
$
(0.3
)
Restructuring and impairment expense
$
3.0
$
1.0
$
4.0
Depreciation and amortization expense
$
25.1
$
69.2
$
94.3
Enpro Inc.
Reconciliation of Income (Loss) from
Continuing Operations Attributable to Enpro Inc. to Adjusted Income
from Continuing Operations Attributable to Enpro Inc. and Adjusted
Diluted Earnings Per Share (Unaudited)
For the Quarters and Years Ended December
31, 2024 and 2023
(In Millions, Except Per Share Data)
Quarters Ended December 31,
2024
2023
$
Average common shares
outstanding, diluted
Per Share
$
Average common shares
outstanding, diluted
Per Share
Income (loss) from continuing operations
attributable to Enpro Inc.
$
13.9
21.2
$
0.66
$
(4.9
)
21.0
$
(0.23
)
Net income from redeemable non-controlling
interests
—
0.4
Income tax expense
5.8
13.8
Income from continuing operations before
income taxes
19.7
9.3
Adjustments from selling, general, and
administrative:
Acquisition expense
0.5
1.1
Amortization of acquisition-related
intangible assets
19.1
16.8
Adjustments from other operating expense
and cost of sales:
Restructuring and impairment expense
0.3
1.9
Adjustments from other non-operating
expense:
Environmental reserve adjustment
3.4
2.5
Costs associated with previously disposed
businesses
0.6
0.9
Pension expense (income) (non-service
cost)
(0.1
)
0.4
Foreign exchange losses related to the
divestiture of a discontinued operation1
0.2
0.7
Other adjustments:
Other
0.5
0.2
Adjusted income from continuing operations
before income taxes
44.2
33.8
Adjusted income tax expense
(11.0
)
(8.4
)
Net income from redeemable non-controlling
interests
—
(0.4
)
Adjusted income from continuing operations
attributable to Enpro Inc.
$
33.2
21.2
$
1.57
3
$
25.0
21.0
$
1.19
3
Years Ended December 31,
2024
2023
$
Average common shares
outstanding, diluted
Per Share
$
Average common shares
outstanding, diluted
Per Share
Income from continuing operations
attributable to Enpro Inc.
$
72.9
21.1
$
3.45
$
10.8
21.0
$
0.51
Net loss from redeemable non-controlling
interests
—
(3.9
)
Income tax expense
21.5
30.8
Income from continuing operations before
income taxes
94.4
37.7
Adjustments from selling, general, and
administrative:
Acquisition expense
4.3
1.1
Non-controlling interest compensation
allocations
—
(0.3
)
Amortization of acquisition-related
intangible assets
75.9
68.4
Adjustments from other operating expense
and cost of sales:
Restructuring and impairment expense
6.2
5.0
Amortization of the fair value adjustment
to acquisition date inventory
1.7
—
Adjustments from other non-operating
expense:
Asbestos receivable adjustment
(0.6
)
—
Environmental reserve adjustment
5.7
2.9
Costs associated with previously disposed
businesses
1.4
1.7
Pension expense (non-service cost)
0.1
1.5
Goodwill impairment
—
56.5
Foreign exchange losses related to the
divestiture of a discontinued operation1
1.8
2.2
Long-term promissory note reserve2
4.5
—
Other adjustments:
Other
0.5
0.8
Adjusted income from continuing operations
before income taxes
195.9
177.5
Adjusted income tax expense
(49.0
)
(44.4
)
Net loss from redeemable non-controlling
interests
—
3.9
Adjusted income from continuing operations
attributable to Enpro Inc.
$
146.9
21.1
$
6.96
3
$
137.0
21.0
$
6.54
3
Management of the Company believes that it
would be helpful to the readers of the financial statements to
understand the impact of certain selected items on the Company's
reported income from continuing operations and diluted earnings per
share, including items that may recur from time to time. The items
adjusted for in this schedule are those that are excluded by
management in budgeting or projecting for performance in future
periods, as they typically relate to events specific to the period
in which they occur. This presentation enables readers to better
compare Enpro Inc. to other diversified industrial technology
companies that do not incur the sporadic impact of restructuring
activities, costs associated with previously disposed of
businesses, acquisitions and divestitures, or other selected items.
The adjustments in the table above relate solely to expenses
attributable to Enpro Inc. and have been adjusted to remove any
amounts attributable to non-controlling interests.
Management acknowledges that there are
many items that impact a company's reported results and this list
is not intended to present all items that may have impacted these
results.
Other adjustments are included in selling,
general, and administrative, cost of sales, and other operating
expenses on the consolidated statements of operations.
The adjusted income tax expense presented
above is calculated using a normalized company-wide effective tax
rate excluding discrete items of 25.0%. Per share amounts were
calculated by dividing by the weighted-average shares of diluted
common stock outstanding during the periods.
1In connection with the sale of GGB,
accounted for as a discontinued operation, in the fourth quarter of
2022, we issued an intercompany note between a domestic and foreign
entity that is denominated in a foreign currency. As a result of
this note, we have recorded losses due to the changes in the
foreign exchange rate. The outstanding note is hedged in order to
minimize related gains or losses.
2We received a long-term promissory note
in connection to the sale of a divested business. As part of our
regular review of the note, in the first quarter of 2024 we
concluded a reserve was needed for expected future credit losses.
We will continue to monitor the note regularly and make adjustments
to the reserve as needed based on known facts and
circumstances.
3Adjusted diluted earnings per share,
which amounts were calculated by dividing by the weighted-average
shares of diluted common stock outstanding during the periods.
Enpro Inc.
Reconciliation of Income (Loss) from
Continuing Operations Attributable to Enpro Inc. to Adjusted EBITDA
(Unaudited)
For the Quarters and Years Ended December
31, 2024 and 2023
(In Millions)
Quarters Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Income (loss) from continuing operations
attributable to Enpro Inc.
$
13.9
$
(4.9
)
$
72.9
$
10.8
Net income (loss) attributable to
redeemable non-controlling interests
—
0.4
—
(3.9
)
Income (loss) from continuing
operations
13.9
(4.5
)
72.9
6.9
Adjustments to arrive at earnings from
continuing operations before interest, income taxes, depreciation,
amortization, and other selected items (Adjusted EBITDA):
Interest expense, net
7.8
6.5
34.5
30.1
Income tax expense
5.8
13.8
21.5
30.8
Depreciation and amortization expense
25.3
23.4
100.3
94.5
Restructuring and impairment expense
0.3
1.9
6.2
5.0
Environmental reserve adjustments
3.4
2.5
5.7
2.9
Costs associated with previously disposed
businesses
0.6
0.9
1.4
1.7
Acquisition expense
0.5
1.1
4.3
1.1
Pension expense (income) (non-service
cost)
(0.1
)
0.4
0.1
1.5
Non-controlling interest compensation
allocation
—
—
—
(0.3
)
Asbestos receivable adjustment
—
—
(0.6
)
—
Amortization of the fair value adjustment
to acquisition date inventory
—
—
1.7
—
Goodwill impairment
—
—
—
60.8
Foreign exchange losses related to the
divestiture of a discontinued operation1
0.2
0.7
1.8
2.2
Long-term promissory note reserve2
—
—
4.5
—
Other
0.5
0.2
0.5
0.8
Adjusted EBITDA
$
58.2
$
46.9
$
254.8
$
238.0
1In connection with the sale of GGB,
accounted for as a discontinued operation, in the fourth quarter of
2022, we issued an intercompany note between a domestic and foreign
entity that is denominated in a foreign currency. As a result of
this note, we have recorded losses due to the changes in the
foreign exchange rate. The outstanding note is hedged in order to
minimize related gains or losses.
2 We received a long-term promissory note
in connection to the sale of a divested business. As part of our
regular review of the note, in the first quarter of 2024 we
concluded a reserve was needed for expected future credit losses.
We will continue to monitor the note regularly and make adjustments
to the reserve as needed based on known facts and
circumstances.
Supplemental disclosure: Adjusted EBITDA
as presented also represents the amount defined as "EBITDA" under
the indenture governing the Company's 5.75% Senior Notes due 2026.
For the year ended December 31, 2024 approximately 48% of the
adjusted EBITDA as presented above was attributable to Enpro's
subsidiaries that do not guarantee the Company's 5.75% Senior Notes
due 2026.
Enpro Inc.
Reconciliation of Free Cash Flow
(Unaudited)
(In Millions)
Free Cash Flow - Year Ended December 31,
2024
Net cash provided by operating activities
of continuing operations
$
162.9
Purchases of property, plant, and
equipment
(29.1
)
Payments for capitalized internal-use
software
(3.8
)
Free cash flow
$
130.0
Free Cash Flow - Year Ended December 31,
2023
Net cash provided by operating activities
of continuing operations
$
208.4
Purchases of property, plant, and
equipment
(33.9
)
Payments for capitalized internal-use
software
(0.4
)
Free cash flow
$
174.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219140586/en/
Investor Contacts: Joseph F. Bruderek Executive Vice
President and Chief Financial Officer
James M. Gentile Vice President, Investor Relations
Phone: 704-731-1527
Email: investor.relations@enpro.com
Enpro Inc. 5605 Carnegie Boulevard Charlotte, North
Carolina, 28209 Phone: 704-731-1500 www.enpro.com
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