Enerpac Tool Group Corp Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tom Hayes - C.L. King & Associates - Analyst : Paul, I was just wondering, I think when we spoke on the fourth quarter and you called it out today, obviously, the industrial environment is a little bit weaker and continues to be weak. I was just wondering, obviously you guys don't provide quarterly guidance but did one key play out generally or as you had expected anything maybe positive that you saw in the quarter besides pretty strong results.

Question: Tom Hayes - C.L. King & Associates - Analyst : Great and an option that you mentioned a little bit of that with the change in administration and the talk of tariffs. I think you make a good percentage of products here in the US. But do you have any early thoughts on the -- you talk of tariffs with China and Mexico and any potential impact for you guys?

Question: Tom Hayes - C.L. King & Associates - Analyst : Okay, I appreciate. Maybe one or two more. Shifting gears a little bit on the geographic front. Happy to see that the up low-single digits on the EMEA, I was just wondering, I mean, we continue to hear about challenging business environments, especially in Germany. I think you called out as one of your larger segments. Just any other color -- you seem to be outperforming the market there. You say your thoughts on your EMEA performance.

Question: Tom Hayes - C.L. King & Associates - Analyst : Okay. I appreciate it. Maybe just lastly on the services business, a two-part question. You continue to call out or put up good year-over-year organic growth on the services business, I guess one, what do you attributed that those drivers to and two, I think you called it out as maybe a drag on overall margins. I apologize if I got that wrong. But I just -- is there a pathway to get that to more of a companywide or a product margins? Just any thoughts on that? Appreciate it. Thank you.

Question: Tom Hayes - C.L. King & Associates - Analyst : Great. Appreciate the call. Thank you.

Question: Ross Sparenblek - William Blair & Company - Analyst : Apologies? Yeah, I was on mute. Forgive me. Maybe I missed it but anything on pricing within the US in the quarter and what you're seeing more globally.

Question: Ross Sparenblek - William Blair & Company - Analyst : Okay. Do you guys give a inter-year price increases if it's warranted? Can't remember. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 19, 2024 / 1:30PM, EPAC.N - Q1 2025 Enerpac Tool Group Corp Earnings Call

Question: Ross Sparenblek - William Blair & Company - Analyst : Okay, a couple more here. It seems like there's early chatter about the infrastructure spending in the US picking up. A lot of companies are calling for second half project activity time dependent. So just anything you're hearing from your distributors and maybe expectations on what the lead times look like for restocking, if we were to start to see acceleration in greenfield activity.

Question: Ross Sparenblek - William Blair & Company - Analyst : Awesome. Well, that's great to hear. And just maybe lastly for Darren, two months into the role, but any initial impressions and can you give us a sense of what your priorities are in the coming 6, 12 months?

Question: Ross Sparenblek - William Blair & Company - Analyst : Okay. Welcome to the team. We look forward to working with you. Thanks, guys.

Question: Steve Silver - Argus Research - Analyst : So great to see the return to growth in APAC this quarter. I'm curious whether you could provide some context in terms of what drove that return to growth given the soft -- the continued softness in mining, whether it was just return to growth among the core products or whether there was some benefit of the implementation of the second brand strategy.

Question: Steve Silver - Argus Research - Analyst : Great. And so you guys have a lot of programs going on at the same time, all working towards improving the efficiency of the business, whether it be PEP or ECX or the digital transformation strategies. A lot of those in like investing in yourself strategies. Can you put any context around where you guys see yourselves within this this goal? I know it's probably early stage overall, but just in terms of where you guys are within these initiatives.

Question: Steve Silver - Argus Research - Analyst : Great. And then one last one, if I may. The integration of the DTA acquisition, just curious as to how that's going in terms of I guess the reception from the marketplace around the combined capabilities now, combining both the vertical and horizontal lifting technologies. Just curious as to how the messaging is being received in the early days of the integration.

Question: Steve Silver - Argus Research - Analyst : Great. Thanks for all the color and congratulations on the execution and some challenging markets.