Enpro Reports Second Quarter 2026 Results; Raises Full-Year Guidance (Form 8-K)

Enpro Reports Second Quarter 2026 Results; Raises Full-Year Guidance

Second Quarter 2026 Highlights

(All results reflect comparisons to prior-year period, unless otherwise noted)

•Sales of $338.8 million up 17.6%

•AST sales up 21.8%; Sealing Technologies sales up 15.3%

•Net income of $27.1 million versus $26.4 million

•Adjusted EBITDA* of $86.9 million versus $71.1 million

•GAAP diluted earnings per share of $1.27 versus $1.25

•Adjusted diluted earnings per share* of $2.50 versus $2.03

•Raising full-year 2026 guidance: Revenue growth in the range of 14% to 16%, adjusted EBITDA* in the range of $330 million to $340 million, and adjusted diluted earnings per share* in the range of $9.30 to $9.80

CHARLOTTE, N.C., August 4, 2026 -- Enpro Inc. (NYSE: NPO) today announced its financial results for the second quarter ended June 30, 2026.

"Enpro delivered a strong second quarter with sales increasing 17.6% year-over-year, driven by accelerating semiconductor industry demand, solid organic performance in Sealing Technologies, and contributions from recent acquisitions," said Eric Vaillancourt, President and Chief Executive Officer. "Demand for our products and solutions supporting leading-edge chip production remains healthy, and we expect AST sales growth to accelerate in the second half of 2026 as a result. We also expect organic growth in Sealing Technologies to strengthen in the second half, while maintaining strong profit levels. Reflecting our robust performance and positive momentum in key growth areas of the portfolio, we are raising our full-year 2026 guidance."

"As we advance our Enpro 3.0 strategy, we continue to invest across the organization to support customer demand trends and drive long-term growth and value creation. At the same time, we continue to selectively pursue strategic acquisitions with our strong balance sheet," Mr. Vaillancourt continued.

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Financial Highlights

(Dollars in millions except per share data)

			Quarters Ended June 30,												Six Months Ended June 30,
			2026			2025			Change						2026			2025			Change
Net sales			$	338.8		$	288.1		17.6		%				$	641.8		$	561.3		14.3		%
Net income			$	27.1		$	26.4		2.7		%				$	54.5		$	50.9		7.1		%
Diluted earnings per share			$	1.27		$	1.25		1.6		%				$	2.55		$	2.40		6.3		%
Adjusted net income*			$	53.5		$	43.1		24.1		%				$	99.1		$	83.4		18.8		%
Adjusted diluted earnings per share*			$	2.50		$	2.03		23.2		%				$	4.64		$	3.93		18.1		%
Adjusted EBITDA*			$	86.9		$	71.1		22.2		%				$	163.3		$	138.9		17.6		%
Operating margin			17.0		%	15.9		%	110 bps						15.8		%	15.6		%	20 bps
Adjusted EBITDA margin*			25.6		%	24.7		%	90 bps						25.4		%	24.7		%	70 bps

*Non-GAAP measure. See the attached tables for adjustments and reconciliations of historical non-GAAP measures to comparable GAAP measures. Because of the forward-looking nature of non-GAAP guidance measures, reconciliations of such measures are not presented. Such non-GAAP guidance measures are calculated in a manner consistent with the historical presentation of these measures in the attached tables.

Second Quarter 2026 Consolidated Results

Sales of $338.8 million increased 17.6% compared to last year and 10.9% organically. Strong demand for semiconductor products and solutions, double-digit growth in domestic general industrial markets, strength in aerospace and compositional analysis applications, as well as strategic pricing initiatives, more than offset continued slow commercial vehicle demand in North America and tepid general industrial and food and biopharmaceutical sales in Europe.

Corporate expense of $15.7 million in the second quarter of 2026 increased from $12.1 million last year primarily due to higher incentive compensation accruals and $1.3 million in restructuring costs.

Net income was $27.1 million, compared to $26.4 million last year. Diluted earnings per share were $1.27, compared to $1.25 in the prior year. Operating leverage from revenue growth was largely offset by a $16.1 million increase in reserves addressing legacy environmental liabilities and increased expenses supporting growth initiatives.

Adjusted net income* of $53.5 million increased 24.1% compared to the second quarter of 2025 and adjusted diluted earnings per share* increased 23.2% to $2.50, versus $2.03 last year.

Adjusted EBITDA* of $86.9 million, or 25.6% of total sales, increased 22.2% year-over-year. Higher sales drove the increase, offset in part by increased operating expenses supporting growth initiatives.

Second Quarter 2026 Segment Highlights

Sealing Technologies - Safeguarding environments with critical applications in diverse end markets -

Garlock, STEMCO, and Technetics Group

			Quarters Ended June 30,												Six Months Ended June 30,
(Dollars in millions)			2026			2025			Change						2026			2025			Change
Sales			$216.2			$187.5			15.3%						$415.2			$367.1			13.1%
Adjusted segment EBITDA			$71.7			$63.3			13.3%						$136.3			$122.0			11.7%
Adjusted segment EBITDA margin			33.2%			33.8%									32.8%			33.2%

•Sales increased 15.3% over last year. Excluding foreign exchange translation and contributions from the acquisitions of AlpHa Measurement Solutions and Overlook Industries completed in the fourth quarter of 2025, sales increased 5.0%. Strength in aerospace solutions, double-digit growth in domestic general industrial markets, solid demand growth for compositional analysis applications, as well as strategic pricing

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initiatives, were offset by continued soft demand in commercial vehicle markets and slow European general industrial and food and biopharmaceutical demand.

•Adjusted segment EBITDA of $71.7 million was up 13.3% year-over-year, with adjusted segment EBITDA margin remaining strong at 33.2%. Excluding foreign exchange translation and contributions from the recently completed acquisitions, adjusted segment EBITDA increased 3.8%.

Advanced Surface Technologies - Leading edge precision manufacturing, coatings, cleaning and refurbishment solutions and innovative optical coatings - NxEdge, Technetics Semi, LeanTeq, and Alluxa

			Quarters Ended June 30,												Six Months Ended June 30,
(Dollars in millions)			2026			2025			Change						2026			2025			Change
Sales			$122.9			$100.9			21.8%						$227.1			$194.7			16.6%
Adjusted segment EBITDA			$29.4			$19.8			48.5%						$53.7			$40.3			33.3%
Adjusted segment EBITDA margin			23.9%			19.6%									23.6%			20.7%

•Sales increased 21.8% organically. Strong performance in leading-edge precision cleaning solutions and healthy demand for semiconductor capital equipment were the primary growth drivers.

•Adjusted segment EBITDA increased 48.5%, with adjusted segment EBITDA margin up 430 basis points to 23.9%. Strong sales growth, fixed cost absorption, and foreign exchange tailwinds drove improved AST operating leverage during the quarter, despite continued investments supporting a strong growth outlook for the segment.

Balance Sheet, Cash Flow and Capital Allocation

During the six months ended June 30, 2026, the company generated $90.9 million of cash flow from operating activities and $61.4 million of free cash flow, net of $29.5 million in capital expenditures. This compares to $73.2 million of cash flow from operating activities, or $52.8 million of free cash flow, net of $20.4 million in capital expenditures last year. Higher net income and lower cash taxes were the primary drivers of these increases in cash flow, partially offset by investment in working capital supporting increased customer demand.

During the second quarter, the company paid a regular quarterly dividend of $0.32 per share, with dividend payments totaling $13.8 million for the six months ended June 30, 2026.

Enpro ended the second quarter with total debt of $575.5 million and cash and cash equivalents of $77.0 million, after reducing outstanding revolving debt by $30 million during the second quarter, resulting in a net leverage ratio of 1.6x to trailing twelve month adjusted EBITDA.

Quarterly Dividend

Enpro declared a regular quarterly dividend of $0.32 per share on July 30, 2026. The dividend is payable on September 16, 2026, to shareholders of record as of the close of business on September 2, 2026.

2026 Guidance Increase

Enpro is raising guidance for full-year 2026 and now expects revenue growth in the range of 14%-16%, adjusted EBITDA* in the range of $330 million to $340 million and adjusted diluted earnings per share* in the range of $9.30 to $9.80.

This compares to the prior guidance of revenue growth of 10%-14%, adjusted EBITDA* in the range of $315 million to $330 million and adjusted diluted earnings per share* in the range of $8.85 to $9.50 per share.

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Conference Call, Webcast Information, and Presentations

Enpro will hold a conference call today, August 4, at 8:30 a.m. Eastern Time to discuss second quarter 2026 financial results. Investors who wish to participate in the call should dial 1-877-407-0832 approximately 10 minutes before the call begins and provide conference access code 13750603. A live audio webcast of the call and accompanying slide presentation will be accessible from the company's website, https://www.enpro.com. To access the earnings presentation, log on to the webcast by clicking the link on the company's home page.

Segment Operating Performance Measure

The segment profitability metric used by management to allocate resources and assess segment performance is adjusted segment EBITDA, which is segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition and divestiture expenses, restructuring expense, net, impairment charges, amortization of the fair value adjustment to acquisition date inventory, and depreciation and amortization. Segment non-operating expenses and income, corporate expenses, net interest expense, and income taxes are not included in the computation of adjusted segment EBITDA. Under U.S. generally accepted accounting principles ("GAAP"), the segment profitability metric used by management to allocate resources and assess segment performance is required to be disclosed in financial statement footnotes, and accordingly such metric as presented for each segment is not deemed to be a non-GAAP measure under applicable regulations of the Securities and Exchange Commission.

Non-GAAP Financial Information