NYSE$NPO

Enpro Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Enpro's Q2 2023 results reflected a mix of strong performance in Sealing Technologies and weakness in Advanced Surface Technologies, with overall sales remaining essentially flat and adjusted EBITDA declining due to incentive compensation expenses.

Enpro reported Q2 2023 results with sales of $276.9 million, essentially flat year-over-year, and a GAAP loss from continuing operations of $18.6 million. Adjusted EBITDA decreased by 11.9% to $64.9 million, and adjusted EPS decreased by 10.7% to $1.83. The company expects full-year revenue to be relatively flat and has increased adjusted diluted earnings per share guidance to $6.70 to $7.10.

  • Sales remained essentially flat with organic sales up 0.4%.
  • Sealing Technologies showed strong sales and earnings, offsetting weakness in Advanced Surface Technologies.
  • GAAP loss from continuing operations was $18.6 million, impacted by a goodwill impairment charge of $60.8 million related to Alluxa.
  • Adjusted EBITDA decreased by 11.9% to $64.9 million, with adjusted EBITDA margin down 320 bps to 23.4%.

Headline financials

Total Revenue

$277M

Previous: $333M-16.9%
EPS (adj)

$1.83

Previous: $2.32-21.1%
Adjusted EBITDA

$64.9M

Previous: $82M-20.9%
Adjusted EBITDA Margin

23.4%

Previous: 24.6%-4.9%
Capital Expenditures

-$11.9M

Previous: -$8.5M-40.0%
Free Cash Flow

-$30.5M

Previous: $24.6M-224.0%
Net Income

-$18.6M

Previous: $33.1M-156.2%
Operating Income

-$19.4M

Previous: $49.7M-139.0%
Gross Profit

$115M

Previous: $131M-12.0%
Cash & Equivalents

$375M

Previous: $222M+68.8%
Total Assets

$2.63B

Previous: $2.81B-6.5%
Stock-Based Comp

$3M

Previous: $1.6M+87.5%

Revenue & EPS history

Enpro · Revenue · Quarterly

$277M

Q2 2023-16.9%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Enpro · $277M total across 2 segments · Q2 2023

  • Sealing Technologies
    $177M+13.3%
  • Advanced Surface Tech
    $100M-17.4%

Forward guidance

Enpro expects 2023 revenue to be flat compared to 2022. Adjusted EBITDA is expected in the range of $248 million to $256 million. Adjusted diluted earnings per share guidance is increased and expected to be in the range of $6.70 to $7.10 per share.

Tailwinds

  • Revenue expected to be flat compared to 2022.
  • Adjusted EBITDA expected in the range of $248 million to $256 million.
  • Adjusted diluted earnings per share guidance increased to $6.70 to $7.10 per share.
  • Guidance reflects share-price-driven incentive compensation expense recognized in the second quarter.
  • Guidance primarily reflecting lower net interest expense resulting from debt repayment and higher interest income on cash balances.

Headwinds

  • Economic conditions in the markets served.
  • Impact of geopolitical activity.
  • Uncertainties with respect to government embargoes, tariffs and trade protection measures.
  • Uncertainties with respect to prices and availability of raw materials.
  • Impact of fluctuations in relevant foreign currency exchange rates or unanticipated increases in applicable interest rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+1.6%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+19.9%

Q4 2015

Best reaction

-16.5%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.6%+6.9%+9.5%
Q4 2025-0.1%+2.2%-8.0%
Q3 2025-5.8%-8.9%-3.4%
Q1 2025+6.8%+12.0%+21.6%
Q4 2024+6.2%+1.6%-11.8%
Q3 2024+13.1%+11.5%+33.1%
Q2 2024+1.1%+2.4%+1.3%
Q1 2024-4.0%-0.9%-1.4%
Q4 2023-6.0%-4.2%-0.4%
Q3 2023+1.4%+3.1%+11.6%
Q2 2023-4.5%-2.8%-9.4%
Q1 2023+7.4%+5.5%+8.8%
Q4 2022-7.7%-8.0%-18.7%
Q3 2022+4.0%+13.5%+11.6%
Q2 2022+5.0%+6.3%-3.6%
Q1 2022-1.9%-1.7%+4.3%
Q4 2021-3.2%-1.7%-8.3%
Q3 2021+13.8%+17.7%+17.4%
Q2 2021-7.5%-6.2%-6.6%
Q1 2021+3.4%-1.3%+6.5%
Q4 2020+1.7%+1.4%+6.8%
Q3 2020+0.2%+2.9%+16.9%
Q2 2020+12.1%+19.5%+19.3%
Q1 2020-4.7%+2.9%+13.6%
Q4 2019-2.6%-7.3%-27.2%
Q3 2019-7.3%-5.9%-11.6%
Q2 2019+6.4%-0.3%-10.7%
Q1 2019-12.8%-9.7%-25.3%
Q4 2018+1.1%+4.2%-3.2%
Q3 2018+14.7%+17.9%+17.1%
Q2 2018-8.2%-2.3%-1.7%
Q1 2018-10.0%-5.7%-2.8%
Q4 2017-9.3%-7.4%-6.3%
Q3 2017+3.3%+4.1%+6.0%
Q2 2017+4.7%+1.7%-4.6%
Q1 2017+2.8%+3.3%-5.4%
Q4 2016-6.0%-7.7%-2.9%
Q3 2016-0.5%+3.9%+14.3%
Q2 2016+9.9%+8.6%+17.9%
Q1 2016-16.5%
Q4 2015+19.9%
Q3 2015+11.9%
Q2 2015-3.5%
Q1 2015-8.8%
Q4 2014+2.1%
Q3 2014+1.6%
Q2 2014-8.3%
Q1 2014-0.1%
Q4 2013-0.3%
Q3 2013-3.4%
Q2 2013+3.7%
Q1 2013-0.5%
Q1 2010+2.3%
Q4 2012+0.1%
Q3 2012+4.3%
Q2 2012-2.9%
Q1 2009-1.0%
Q1 2012-1.2%
Q4 2009-0.2%
Q4 2011-0.2%
Q3 2009-3.3%
Q3 2010-3.3%
Q4 2010-3.3%
Q2 2010-1.8%
Q2 2009-1.8%

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