The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Will Gildea - CJS Securities - Analyst
: Paul, Darren, this is Will on for Dan. Could you add some more color to what you're hearing from your customers in real time? And how are they
managing or reacting to tariffs and macro uncertainty? Are they putting projects on hold? Have you seen an uptick in order cancellations?
Question: Will Gildea - CJS Securities - Analyst
: Super helpful. And did you see any revenue being pulled forward at all in Q3 in anticipation of tariffs? And what are your thoughts on inventory in
the channel today?
Question: Will Gildea - CJS Securities - Analyst
: Thank you. And then just one more. Could you provide any more additional detail regarding the restructuring actions during the quarter? And
what is the anticipated cost savings?
Question: Thomas Hayes - ROTH Capital Partners - Analyst
: Good morning, guys. Thanks for taking the call. Hey, Darren, maybe one more question on the pricing actions you guys took. Were those implemented
in the quarter? And then do you see the positive impact or those pricing actions going into effect in the quarter?
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JUNE 27, 2025 / 12:30PM, EPAC.N - Q3 2025 Enerpac Tool Group Corp Earnings Call
Question: Thomas Hayes - ROTH Capital Partners - Analyst
: Okay. And then Paul, on the North American performance, up high single digits. I might have missed it a little bit. I think you called out aerospace
and one other segment kind of helped drive that actions.
Question: Thomas Hayes - ROTH Capital Partners - Analyst
: Okay. I guess one more along those same lines, and I think it's buried in the one big beautiful bill. I'm just wondering your thoughts on your wind
business. It seems that the -- a lot of the renewable energy credits are maybe on the chopping block. Just any feedback you're getting from your
wind customers as far as the outlook for that market?
Question: Thomas Hayes - ROTH Capital Partners - Analyst
: Okay. I appreciate the color. Maybe just lastly, with the current tariff environment and maybe kind of a more sluggish industrial environment, have
you seen any change in the appetite for M&A? Obviously, know it takes two to get a transaction done, but just any change in the environment for
that? I appreciate it.
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JUNE 27, 2025 / 12:30PM, EPAC.N - Q3 2025 Enerpac Tool Group Corp Earnings Call
Question: Thomas Hayes - ROTH Capital Partners - Analyst
: Great, I appreciate the time this morning. Thank you.
Question: Sam Karlov - William Blair - Analyst
: Hey, good morning. This is Sam Karlov on for Ross. So you provided a gross annualized tariff impact of $18 million, but is there any way to frame
what the net impact of tariffs is expected to be in the fourth quarter and fiscal 2026?
Question: Sam Karlov - William Blair - Analyst
: Okay. That's helpful. And then just a couple on DTA. It looks like DTA sales were better than expected in the quarter, but still trending below the
EUR20 million guidance. Has your expectation for the EUR20 million guidance changed?
Question: Steve Silver - Argus Research - Analyst
: Thanks, operator, and thanks for taking my questions. I was hoping you guys could put some context around the pipeline size and the scalability
for the new in-house innovation lab and maybe just some thoughts around previous new products, whether most of those were using outsourced
vendors compared to your previous in-house capabilities and maybe the thoughts on the potential impact on overall R&D costs given the high
number of SKUs in the portfolio.
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JUNE 27, 2025 / 12:30PM, EPAC.N - Q3 2025 Enerpac Tool Group Corp Earnings Call
Question: Steve Silver - Argus Research - Analyst
: Great. That's helpful. And on a similar note, you guys mentioned on the last call that the first half of fiscal '25 was more focused on commercializing
some of the fiscal year '24 launches but that second half of '25 would be more focused on new product innovation. Curious as to how Q3 played
out compared to your expectations.
Question: Steve Silver - Argus Research - Analyst
: Great, thanks for all the color and best of luck for the rest of the year navigating the challenging markets.
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JUNE 27, 2025 / 12:30PM, EPAC.N - Q3 2025 Enerpac Tool Group Corp Earnings Call
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