Enerpac Tool Group Corp Q2 2025 Earnings Call Transcript

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

Question: Will Gildea - CJS Securities - Analyst : Can you provide some more color regarding the mix shift toward HLT? And where are you seeing strength from a geographic and end market perspective? And what are your expectations for the back half of the year from a mix and gross margin perspective? Thank you.

Question: Will Gildea - CJS Securities - Analyst : Thank you, Super helpful. And then just one more. How is the DTA integration going relative to your expectations? Any surprises so far, either positively or anything more challenging than expected? Thank you.

Question: Tom Hayes - C.L. King & Associates - Analyst : I appreciate all the color. Maybe just, Paul, on the geographic breakdown. In Q1, the Americas was down mid-single digits. Now it was up high single digits in the second quarter. I think Darren called out the commercial excellence program. I was just wondering maybe you can provide a little bit more detail on that in addition to kind of some of your internal initiatives. Was there any maybe end markets that kind of stood out in the second quarter that kind of helped push the Americas forward?

Question: Tom Hayes - C.L. King & Associates - Analyst : Okay. Appreciate it. That's great. Maybe just lastly, you touched on a little bit in your prepared remarks, and I know it tends to change by the hour, by the day or the tweet. Just wondering if you could provide any thoughts on the talk of the tariffs, whether they're coming from Mexico, Canada, and kind of how you're positioned, whether from either selling into those regions or buying products from those regions?

Question: Tom Hayes - C.L. King & Associates - Analyst : I appreciate that. Maybe just lastly, I think it was you and Darren both mentioned the expectations for some new product rollouts this year. Is that pace different from the last couple of years? I know you were pretty robust in rolling out products last year. Just wondering any more color you can provide on, I don't want to steal your thunder, on the new product rollouts, but just kind of the pace of the rollouts there?

Question: Tom Hayes - C.L. King & Associates - Analyst : I appreciate it. Looking forward to seeing your new offices this year. So best of luck. I appreciate the time. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 25, 2025 / 12:30PM, EPAC.N - Q2 2025 Enerpac Tool Group Corp Earnings Call

Question: Steve Silver - Argus Research - Analyst : Thanks, operator, and good morning and congratulations in advance on the new headquarter opening next week. You guys talked -- in the prepared remarks, you touched on ECX and the positive impact that it's having in the Americas. I'm curious as to whether there's any color you could provide on the implementation progress in Europe and maybe where you are in the process as compared to the Americas.

Question: Steve Silver - Argus Research - Analyst : That's helpful. Thanks. And one more, if I may. On previous calls, you discussed the digital transformation of the business and progress in your e-commerce initiatives. Curious as to whether there's any update that you could give on the direct business.

Question: Will Gildea - CJS Securities - Analyst : Just to follow up, and thank you for your time today, with two quarters left, how should we think about the cadence of revenue margins and profitability from Q3 to Q4 embedded in your FY25 guidance?

Question: Will Gildea - CJS Securities - Analyst : Very helpful. And then just one more. Do you have any incremental updates on the M&A pipeline? And what parts of the portfolio are you most focused on enhancing? Thank you.