Enerpac Tool Group: Solid Conclusion of Fiscal Year 2024 and Optimistic Forecast for 2025

Enerpac Tool Group has presented its financial results for the fourth quarter of fiscal year 2024, and the company's executives were largely satisfied with the progress. Despite a slowdown in the growth rate over the year, the company was still able to achieve a 2.2% increase in organic revenue, particularly thanks to the Industrial Tools & Services (IT&S) sector, which grew by 2.7%. This sector proved to be a strong driver, even though the company’s total revenue declined by 1.5% due to the sale of Cortland Industrial in the late fiscal year 2023. Through the optimization of efficiency measures, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 8%, helping Enerpac achieve an impressive EBITDA margin of 25%. A highlight of the year was the completion of the ASCEND transformation program, which has led to an almost doubling of adjusted EBITDA since its inception in fiscal year 2022. For the coming year, Enerpac plans to extend its geographical reach and strengthen growth through the recent acquisition of DTA. This addition is expected to provide valuable synergies, particularly in the area of horizontal movement of heavy loads. For fiscal year 2025, Enerpac anticipates revenue of $610 to $625 million and an adjusted EBITDA of $150 to $160 million, resulting in an approximately stable EBITDA margin, despite the initial margin dilution from the DTA acquisition. The company is optimistic due to strong market opportunities in the wind and rail sectors and its continuous improvement initiatives, such as the "Powering Enerpac Performance" (PEP) program. These initiatives aim to standardize and simplify business processes and build on the successes of the ASCEND program. As usual, Enerpac Tool Group will leverage continued support through strategic growth investments and efficiency improvements to capitalize on both organic and inorganic growth opportunities.