Tulsa, Oklahoma – Enpro Inc., a leading industrial technology company traded on the New York Stock Exchange under the ticker symbol NPO, recently held its Q2 2024 earnings conference call on August 6 at 8:30 AM. During the call, company executives discussed the company’s performance in the second quarter, highlighting strong profitability in the Sealing Technologies segment and improved sales and adjusted segment EBITDA in Advanced Surface Technologies.

Eric Vaillancourt, President and Chief Executive Officer of Enpro, commended the team’s agility in achieving strong profitability despite soft demand in certain areas of the business. He praised the company’s 3,500 employees for their outstanding contributions to Enpro’s success. The Sealing Technologies segment saw adjusted segment EBITDA margins exceed 35%, driven by strength in nuclear and aerospace markets, strategic pricing actions, and contributions from AMI, offsetting weaknesses in other markets.

In the Advanced Surface Technologies segment, revenue declined by 12% year-over-year, but adjusted segment EBITDA margins improved by 160 basis points sequentially. The company expressed confidence in the segment’s sequential growth for the rest of 2024, fueled by developments in precision cleaning, coatings, refurbishment solutions, and critical end-chamber tools. Enpro remains focused on executing its long-term growth strategy in AST’s markets, aiming for enhanced technological advancements and process efficiencies.

Enpro’s balance sheet remains strong, with a net leverage ratio of approximately two times trailing 12-month adjusted EBITDA. The company reported free cash flow of $35.5 million in the first half of 2024, down from the previous year due to timing of working capital and higher cash tax payments. Enpro expects free cash flow to exceed $100 million for the year, with capital expenditures likely to surpass $60 million. Investments in organic growth opportunities, including capacity expansions and efficiency improvements, are expected to drive high-margin growth in the future.

Looking ahead, Enpro revised its full-year 2024 earnings guidance, expecting total sales to be flat compared to the previous year. Adjusted EBITDA is now projected to range from $260 million to $270 million, with adjusted diluted earnings per share in the range of $7 to $7.60. The company anticipates sequential improvement in AST in the second half of the year, driven by growth in advanced node cleaning and refurbishment business, as well as increased demand for certain critical end-chamber tools.

Overall, Enpro remains optimistic about its future growth prospects, emphasizing its commitment to strategic initiatives, disciplined capital allocation, and sustainable long-term value creation. The company’s focus on innovation, operational excellence, and market diversification positions it well for continued success in the industrial technology sector.