Enerpac Tool Group Corp. is a specialized industrial equipment and services company with roots dating to 1910. The company was formerly known as Actuant Corporation and adopted the Enerpac Tool Group name in January 2020. It is headquartered in Milwaukee, Wisconsin, and serves customers across a broad international footprint that ...Enerpac Tool Group Corp. is a specialized industrial equipment and services company with roots dating to 1910. The company was formerly known as Actuant Corporation and adopted the Enerpac Tool Group name in January 2020. It is headquartered in Milwaukee, Wisconsin, and serves customers across a broad international footprint that includes the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, and other markets. Its products and services are used in applications where controlled force, precision movement, safe assembly, maintenance, and heavy lifting are essential.
The core business is the Industrial Tools & Services segment, commonly referred to as IT&S. This segment develops, manufactures, distributes, rents, and services branded hydraulic and mechanical equipment. Its portfolio includes hydraulic cylinders, pumps, valves, hydraulic torque wrenches, mechanical tools, bolt tensioners, high-force instruments, and engineered heavy-lifting systems. Enerpac products are often deployed for lifting, positioning, tensioning, bolting, machining, and maintenance of large or difficult-to-access assets. Hydratight contributes specialized bolting, joint integrity, and field services, while Enerpac, Larzep, and Simplex provide complementary tool and lifting product lines. The company also offers equipment rental, repair, maintenance, technical assistance, and specialized manpower, allowing customers to purchase an integrated solution rather than only a piece of equipment.
Enerpac serves infrastructure and construction projects, industrial maintenance and repair operations, oil and gas facilities, mining operations, power generation, renewable-energy installations, and other heavy industries. Demand is supported by aging industrial assets, safety requirements, infrastructure investment, plant turnarounds, equipment maintenance, and the need to reduce downtime during complex projects. Its tools are generally mission-critical, which can support customer loyalty and service revenue, although industrial demand can vary with capital spending, commodity cycles, project timing, and broader economic conditions.
The company also reports an Other category that has historically included synthetic ropes and biomedical textiles. These activities are less central to the company’s public identity than the industrial tools and services operation. Enerpac’s business model combines manufactured equipment, engineered solutions, aftermarket support, rental activity, and field services. This mix can provide recurring service opportunities in addition to product sales, but the company must manage inventory, global manufacturing, logistics, labor, raw-material costs, and foreign-exchange exposure.
Based on the supplied trailing-twelve-month information, Enerpac had approximately $1.94 billion in market capitalization and an enterprise value of about $2.01 billion. The data showed a gross margin near 49.0%, EBITDA margin near 23.8%, EBIT margin near 20.9%, and net profit margin near 14.7%. Its reported return on equity was approximately 22.0%, return on invested capital approximately 15.2%, and debt-to-equity ratio approximately 0.44. The current ratio of about 2.67 and interest-coverage ratio of roughly 15.3 indicated comparatively solid short-term liquidity and debt-service capacity in the supplied snapshot. The company paid a small quarterly dividend, with the supplied data showing a dividend of approximately $0.04 per share. Paul E. Sternlieb has served as President and Chief Executive Officer since October 2021. Enerpac’s primary strategic opportunity is to expand its global industrial tools, engineered lifting, aftermarket, rental, and field-services platforms while improving operational efficiency and maintaining high safety and reliability standards.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$616.9M
+4.6%
+8.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$92.7M
+8.2%
+82.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+49.6%
-2.8%
+14.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+22.6%
+9.5%
+35.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+15.0%
+3.4%
+68.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$91.9M
+31.5%
+267.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+14.9%
+25.7%
+239.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
52.5%
-10.2%
-5.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.74x
-4.6%
+4.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Darren Kozik: Thank you, operator. Good morning, and thank you for joining us for Enerpac Tool Group's earnings call for the third quarter of fiscal 2026. Joining me on the call today is our President and Chief Executive Officer, Paul Sternlieb. Also joining us is our new Senior Director of Investor Relations, Christian Audi. Christian brings more than 25 years of capital markets experience to Enerpac. Most recently, he served as Head of Investor Relations at ADNOC Gas, one of the world's largest energy companies. Earlier in his career, he was a top-ranked institutional investor analyst at Morgan Stanley and Santander. I know you will all enjoy working with him as your primary contact. Christian?
Christian Audi: Thanks, Darren. It's great to be here. I look forward to working with all of you. On today's call, we will reference non-GAAP measures. You can find a reconciliation of GAAP to non-GAAP measures in the press release issued yesterday. Our comments will also include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include matters noted in our latest SEC filings. The slides referenced on today's call are available on the Investor Relations section of the company's website, which you can download and follow along with us. A recording of today's call will also be made available on our website. Now I'll turn it over to our CEO, Paul.
Paul Sternlieb: Thanks, Christian, and welcome to the team. There was a lot to be pleased about in the third quarter of fiscal 2026. Last quarter, we said we expected to capture mid-single-digit growth in our product business and generate improving trends in our service operations. I'm very pleased to say that we delivered on that plan, albeit with a greater-than-anticipated headwind from the protracted conflict in the Middle East, but more on that in a few minutes. Clearly, the major news, which we announced yesterday afternoon, is that we have signed a definitive agreement to acquire Specialized Fabrication Equipment Group, or SFE Group, which we expect to close in the first quarter of fiscal 2027, subject to regulatory approvals and customary closing conditions. If I can step back a moment, over the past several years, we have communicated that M&A is a key aspect of Enerpac's overall growth strategy. We have also emphasized the disciplined nature of our process, ensuring that any transactions meet our strategic and financial objectives and create shareholder value. At the same time, we have been clear about our pursuit of high-quality assets that boast premium brands and strong margins similar to Enerpac. With SFE Group, we believe we have found a company that meets or exceeds all of these criteria. As shown on Slide 5, SFE Group is a leading global provider of specialized fabrication and industrial tool solutions for critical industries. Like Enerpac that dates its brands back to 1959, SFE Group is comprised of complementary …