Enerpac Tool Group Corp Q4 2025 Earnings Call Transcript

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

Question: Daniel Moore - CJS Securities Inc - Analyst : Thank you. Paul, Darren, good morning. Thanks for taking the questions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 16, 2025 / 12:30PM, EPAC.N - Q4 2025 Enerpac Tool Group Corp Earnings Call

Question: Daniel Moore - CJS Securities Inc - Analyst : You gave good color, and so maybe it's a little redundant. And I know you don't disclose backlogs per se, but just entering fiscal '26, obviously, Europe a little weaker, you just described that. Overall, pipeline of opportunities, how would you describe it relative to maybe how we entered the year [end] and a year ago in fiscal '25? And any other color by geography would be great.

Question: Daniel Moore - CJS Securities Inc - Analyst : Absolutely. Good color on DTA and obviously, good progress there. Maybe just the cadence for your fiscal '26 outlook, Darren. I appreciate the color on margins for Q1. When we think about growth overall fiscal '25, up 1% organically, Q4, down 1% to 2%. So do we think of fiscal Q1 kind of starting off similar to Q4 or closer to the low-end of your full range? Just want to get a better sense for how you see things playing out for the first quarter or two?

Question: Daniel Moore - CJS Securities Inc - Analyst : That's helpful. And then maybe sneak in one more. Just obviously, really good progress continues on SG&A. Just talk a little color around the assumptions for gross margin as well as SG&A embedded in the '26 guide? And I'll circle back for any follow-ups. Thanks again.

Question: Daniel Moore - CJS Securities Inc - Analyst : Perfect, I'll circle back, thank you again.

Question: Steven Silver - Argus Research - Analyst : Thanks, operator, and congratulations on a productive year as well. In the prepared remarks, it sounded like the outlook for M&A maybe sounded a little bit more bullish compared to some recent quarters. And in the past, I know you guys have talked about the philosophy of acquiring high-quality and performing businesses not really looking at distressed or turnaround situations. So I was hoping you could provide a little color in terms of what the thinking is for the more constructive outlook on M&A? Whether it's just more the strength of Enerpac's balance sheet or any other competitive landscape changes that you're seeing?

Question: Steven Silver - Argus Research - Analyst : Great, thanks for the color. And one more, if I may. So APAC was really a key growth driver in fiscal '25 with the high-single-digit growth. Curious as to what proportion of that growth was seen from the second-brand strategy and really as you're entering fiscal '26, the outlook for continued growth in that second-brand strategy?

Question: Steven Silver - Argus Research - Analyst : Great, thanks for the additional color, and best of luck in the new year.

Question: Daniel Moore - CJS Securities Inc - Analyst : Thank you, again. I appreciate the comments on the M&A outlook. Obviously, balance sheet extremely strong and cash flow is only going to tick higher. Just talk about with the stock pulling back [year over year], maybe if not the cadence, willingness to be a little bit more aggressive in terms of redeploying the $200 million repurchase authorization and how you're thinking about balancing M&A versus buybacks here in the near term?

Question: Daniel Moore - CJS Securities Inc - Analyst : Really helpful. And just on the M&A front, you gave a lot of color, but are you seeing potential sellers now willing to come back and have dialogues at rational multiples? I guess, obviously, early days of the tariffs, a lot of uncertainty put things on pause. Are you seeing that -- those discussions open back up a little bit?

Question: Daniel Moore - CJS Securities Inc - Analyst : Perfect. Cortland Bio, up again, mid-teens this year, 10% Q4. Just talk about the outlook and whether double-digit growth again is reasonable and embedded in your guide? Thank you.

Question: Daniel Moore - CJS Securities Inc - Analyst : Thank you.