NPO

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Enpro (NYSE:NPO) and its peers. Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 13 engineered components and systems stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.4% while next quarter’s revenue guidance was 1.6% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.6% since the latest earnings results. Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE:NPO) designs, manufactures, and sells products used for machinery in various industries. Enpro reported revenues of $338.8 million, up 17.6% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was an exceptional quarter for the company with full-year EBITDA guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. “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. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 11.3% since reporting and currently trades at $296.26. Is now the time to buy Enpro? Access our full analysis of the earnings results here, it’s free. Formerly called The Ohio Ball Bearing Company, Applied Industrial (NYSE:AIT) distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries. Applied Industrial reported revenues of $1.35 billion, up 10.4% year on year, outperforming analysts’ expectations by 4.6%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8% since reporting. It currently trades at $323.94. Is now the time to buy Applied Industrial? Access our full analysis of the earnings results here, it’s free. Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets. Worthington reported revenues of $371.5 million, up 16.9% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. Worthington delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2.2% since the results and currently trades at $57.45. Read our full analysis of Worthington’s results here. With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries. RBC Bearings reported revenues of $519.5 million, up 19.2% year on year. This number topped analysts’ expectations by 2.1%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. RBC Bearings had the weakest guidance update among its peers. The stock is down 12.2% since reporting and currently trades at $493.19. Read our full, actionable report on RBC Bearings here, it’s free. Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE:MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries. Mayville Engineering reported revenues of $163 million, up 23.2% year on year. This result surpassed analysts’ expectations by 7.9%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. Mayville Engineering achieved the highest full-year guidance raise of the whole group. The stock is down 30.3% since reporting and currently trades at $19.34. Read our full, actionable report on Mayville Engineering here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Enpro’s second quarter reflected strong demand across its Advanced Surface Technologies segment, with management crediting robust semiconductor market activity and successful recent acquisitions as key growth drivers. CEO Eric Vaillancourt highlighted the impact of “significant order and backlog growth” in products serving advanced node chip production and noted that Sealing Technologies benefited from domestic industrial and aerospace markets. The company pointed to operational leverage, pricing discipline, and ongoing integration of acquisitions as central to the improved operating margin this quarter. Is now the time to buy NPO? Find out in our full research report (it’s free). Revenue: $338.8 million vs analyst estimates of $323.7 million (17.6% year-on-year growth, 4.7% beat) Adjusted EPS: $2.50 vs analyst estimates of $2.32 (7.6% beat) Adjusted EBITDA: $86.9 million vs analyst estimates of $81.48 million (25.6% margin, 6.7% beat) Management raised its full-year Adjusted EPS guidance to $9.55 at the midpoint, a 4.1% increase EBITDA guidance for the full year is $335 million at the midpoint, above analyst estimates of $324.1 million Operating Margin: 17.1%, up from 15.7% in the same quarter last year Market Capitalization: $6.98 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jeffrey Hammond (KeyBanc Capital Markets) asked if the raised guidance was driven mostly by Advanced Surface Technologies or if Sealing Technologies contributed. CFO Joe Bruderek clarified most of the increase comes from AST, but Sealing is also showing improved orders, especially in industrial and aerospace. Jeffrey Hammond (KeyBanc Capital Markets) followed up on capital expenditures, asking about areas of incremental investment. CEO Eric Vaillancourt said investments are being accelerated in AST cleaning capacity, especially in Arizona, California, and Taiwan. Tomohiko Sano (JPMorgan) questioned the sustainability of the 430 basis point margin improvement in AST. Bruderek explained that while some margin uplift was due to normalization of FX, most was attributable to higher volumes and operating leverage, which management expects to continue. Steve Ferazani (Sidoti & Company) asked about the performance and outlook for compositional analysis products, especially after recent acquisitions. Vaillancourt highlighted opportunities to expand applications, geographic reach, and pursue further M&A. Ian Zaffino (Oppenheimer & Company) inquired about the strength across AST’s product lines and commercial vehicle trends. Vaillancourt described demand as broad-based within AST and expressed optimism for a gradual commercial vehicle recovery. In the coming quarters, the StockStory team will be monitoring (1) the pace of semiconductor demand and progress on capacity expansion projects, (2) the integration and performance of AlpHa and Overlook in expanding Enpro’s analytics and biopharmaceutical offerings, and (3) signs of stabilization and recovery in commercial vehicle markets. Execution on new product launches and aftermarket growth initiatives will also be key focus areas. Enpro currently trades at $332.60, in line with $334.11 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Eric Vaillancourt Executive Vice President and Chief Financial Officer - Joe Bruderek Vice President, Investor Relations - James Gentile Operator: Greetings, and welcome to the Enpro Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Mr. James Gentile, Vice President, Investor Relations. Thank you. You may begin. James Gentile: Thanks, Melissa, and good morning, everyone. Thank you for joining us today as we review Enpro's second quarter 2026 earnings results and discuss our increased outlook for 2026. I will remind you that this conference call is being webcast at enpro.com, where you can find the presentation that accompanies this call. With me today is Eric Vaillancourt, our President and Chief Executive Officer; and Joe Bruderek, Executive Vice President and Chief Financial Officer. During this morning's call, we will reference a number of non-GAAP financial measures. Tables reconciling the historical non-GAAP measures to the comparable GAAP measures are included in the appendix to the presentation materials. Also a friendly reminder that we will be making statements on this call, including our current perspectives for full year 2026 guidance that are not historical facts and that are considered forward-looking in nature. These statements involve a number of risks and uncertainties, including those described in our filings with the SEC. We do not undertake any obligation to update these forward-looking statements. It is now my pleasure to turn the call over to Eric Vaillancourt, our President and Chief Executive Officer. Eric? Eric Vaillancourt: Thanks, James, and good morning, everyone. Thank you for your interest in Enpro as we discuss our strong second quarter results, provide an update on strategic initiatives and share our current views for the balance of 2026. Before I review our results, I'd like to recognize our colleagues across the company who are accelerating their personal and professional growth Enpro 3.0. The individual growth aspect of Enpro 3.0 is not a side program. It is half of the strategy itself. Earlier this year, our colleagues set bold goals that range from deepening subject matter expertise to expanding leadership capabilities, achieving personal health, fitness or academic gains. Through accountability, hard work, encouragement and feedback, our colleagues are achieving meaningful growth. In recent years, the energy spreading throughout the organization around empowerment with purpose is motivating. It shows in our financial results as well as the personal performance of our colleagues. I'm grateful for their hard work and dedication to their communities and loved ones. Enpro is built around highly engineered products and solutions that play a vital role in customers' mission-critical platforms across a number of key end markets supported by long-term tailwinds. Our products are integral components found in leading-edge applications such as advanced semiconductor production, customized biopharmaceutical processes, space exploration and satellite communications and sensing and instrumentation of critical gas and liquid paths. We also provide a variety of safety and contamination control capabilities that support the commercial transportation of goods across North America as well as enduring specification positions in a number of critical industrial process applications. We win with our strong technical capabilities, engineering, process knowledge and specialized small batch manufacturing footprint. We partner with our customers to develop innovative solutions and to continue to invest in new products and expand our technical capabilities as well as pursuing targeted capacity expansions and efficiency projects across the company that will drive strong organic growth, profitability and compelling returns over the long term. We are pleased with our strong first half results and improved outlook for the rest of the year as our products continue to help our customers solve critical problems and operate safely, reliably and efficiently. Now on to the highlights for the second quarter. Enpro reported strong second quarter sales up 17.6% year-over-year. Strong demand across semiconductor markets drove sales in the Advanced Surface Technologies segment up 21.8%. Sealing Technologies grew 15.3% overall and 5% organically. Total company adjusted EBITDA increased more than 22% to $86.9 million at a margin of 25.6% for the second quarter. In Sealing Technologies, revenue growth of over 15% was largely driven by contributions from the acquisitions of AlpHa Measurement Solutions and Overlook Industries as well as solid organic growth, including double-digit growth in general industrial markets domestically and strong performance in aerospace markets. Commercial vehicle markets remained soft in the second quarter, although we are seeing early signs of stabilization and improvement. We are pleased with how our commercial vehicle business is positioned ahead of the eventual recovery in trailer demand. We also saw softness in Europe in our smaller general industrial and food and biopharmaceutical positions during the quarter. Sealing Technologies segment profitability remained strong at 33.2% with positive volume growth, pricing discipline and excellent execution. Aftermarket sales remained at 60% of the Sealing segment revenue in the quarter. In AST, order patterns strengthened as semiconductor industry expectations rose during the second quarter. Various market forecasts and indications from our customers suggest an acceleration of capital spending to support the need for more chip production as artificial intelligence, advanced computing and communications infrastructure take a quantum leap. Currently, customer build plans and lead times extend healthy visibility through 2027 for our semiconductor-facing products and solutions. Demand is accelerating for precision cleaning solutions in all regions, prompting incremental investment in capacity. Demand is also very healthy for highly engineered critical and chamber tools and our optical coatings capabilities. We remain focused on delivering for our customers by maintaining flexibility in our capacity with innovation, supply chain management, recruitment, inventory and process controls. Our ongoing process and qualification work, 80/20 efforts focusing resources on our best opportunities, together with completed and ongoing investments in people and capacity to support growth opportunities and new platforms position the AST segment to perform well as demand continues to improve in coming periods. Before I pass the call over to Joe for a more detailed review of our results, I would like to provide updates on the integrations of AlpHa and Overlook, which are going very well. We are pleased with the process analytics and compositional analysis capabilities that AlpHa and AMI bring to Enpro. We are investing in new product development, technology and applications expansion in these exciting areas to drive above top line growth over the long term. With Overlook, we are delighted with how their fluid path technology for liquid dose biologics complement Enpro's single-use biopharmaceutical capabilities. We continue to support Overlook's growth with additional capital and access to our supply chain, safety, human resources and best-in-class financial management capabilities. In both cases, we aim to provide our newer colleagues with a safe and healthy working environment and opportunities for professional development and growth while sharing best practices across the company. Our strong specified aftermarket positions in Sealing Technologies provide ample resources and talent to reinvest in key growth areas of the segment to drive mid-single-digit organic growth over the long term, complemented by strategic acquisitions that can lift the segment's growth rate over time. We remain focused on advancing the growth priorities underpinning the Enpro 3.0 strategy, which will guide our performance through 2030. Over the long term, we are positioned to generate mid- to high single-digit organic top line growth with strong profitability and returns complemented by capability expanding acquisitions in key growth areas of our portfolio that meet our stringent strategic and financial criteria. During the Enpro 3.0 horizon, we are targeting mid-single-digit organic growth in Sealing Technologies, while at AST, we are targeting high single-digit to low double-digit organic growth with both segments capable of generating 30% adjusted EBITDA margins, plus or minus 250 basis points through 2030. Our cash flows allow us to maintain our strong balance sheet with a net leverage ratio currently at 1.6x after taking into account the fourth quarter 2025 acquisitions of AlpHa and Overlook and an $80 million reduction in revolving debt so far this year. Joe? Joe Bruderek: Thank you, Eric, and good morning, everyone. We are pleased to report these strong results for the second quarter of 2026 and an improved outlook for the balance of the year. For the second quarter, sales of $338.8 million increased 17.6% year-on-year, supported by 21.8% revenue growth at AST, 5% organic growth in Sealing Technologies as well as contributions from our recent acquisitions. Second quarter adjusted EBITDA of $86.9 million increased more than 22% compared to the prior year period. Total company adjusted EBITDA margin of 25.6% expanded 90 basis points year-over-year, driven by strong operating leverage on higher sales in the AST segment and consistent best-in-class performance in the Sealing Technologies segment. Corporate expenses of $15.7 million in the second quarter of 2026 increased from $12.1 million a year ago, primarily driven by higher incentive compensation accruals and $1.3 million in restructuring costs. Adjusted diluted earnings per share of $2.50 increased 23.2%, largely driven by the factors behind adjusted EBITDA growth year-over-year. Moving to a discussion of segment performance. Sealing Technologies sales increased 15.3% to $216.2 million. Growth was driven by contributions from the AlpHa and Overlook acquisitions, strong aerospace performance and double-digit organic growth in domestic general industrial markets. Nuclear and power generation applications were steady in the quarter, while commercial vehicle markets remained tepid, as Eric discussed earlier. We also observed weakness in our smaller European general industrial and food and biopharmaceutical markets during the quarter. For the second quarter, adjusted segment EBITDA increased 13.3%, driven by strong operational performance, strategic pricing initiatives, contributions from AlpHa and Overlook and foreign exchange tailwinds. These drivers were partially offset by continued softness in the commercial vehicle market and investments supporting growth initiatives across the segment. Adjusted segment EBITDA margin was 33.2% and remained above 30% for the 10th consecutive quarter. Turning now to Advanced Surface Technologies. Sales for the second quarter increased 21.8% with orders improving sequentially. Demand for precision cleaning solutions tied to advanced node chip production is very strong. In addition, book-to-bills for our capital equipment and coatings facing solutions have also materially increased. Our teams are working tirelessly to deliver these important products and solutions while collaborating with customers to advance and expand leading-edge semiconductor production capabilities. For the second quarter, adjusted segment EBITDA increased 48.5% over last year. Adjusted segment EBITDA margin expanded 430 basis points to 23.9%. Operating leverage on higher sales growth and production volumes were the primary drivers of the increase. We also saw the foreign exchange headwinds experienced in last year's second quarter normalize. We continue to progress qualifications on a number of new solutions, many requiring multiple steps to our vertical integration process and are also responding to customer demand by advancing capital investments to support new platforms driving future growth. Our #1 priority is to serve our customers and remain agile as we enter the early stages of a stronger period in semiconductor capital equipment spending. Moving to the balance sheet and cash flow. Our balance sheet remains strong, and we have ample financial flexibility to execute on our long-term organic growth initiatives and consider select acquisitions that align with our strategic priorities and deliver attractive returns. We generated strong free cash flow of more than $60 million year-to-date, including investment in working capital to support strong customer demand, while capital expenditures and capitalized software approached $30 million year-to-date in support of growth and efficiency projects. In the first half, we repaid $80 million in revolving debt, bringing our leverage ratio to 1.6x trailing 12-month adjusted EBITDA. Net debt as of June 30, 2026, stands at approximately $500 million, which includes $450 million in senior notes due 2033 and $130 million outstanding on our $800 million revolving credit facility, net of $77 million in cash and cash equivalents. We expect to continue generating strong free cash flow in 2026 while increasing our capital expenditure expectations to $60 million to $65 million, up from our previous expectation of around $50 million. These incremental investments are supporting growth opportunities, particularly in the AST segment in alignment with customer demand. Finally, our strong balance sheet and cash generation provide us with ample liquidity to make these investments while continuing to return capital to shareholders. In the second quarter, we paid a [ $0.32 ] per share quarterly dividend totaling $6.9 million. We also have an outstanding $50 million share repurchase authorization. Moving now to our increased guidance. We are raising our total year 2026 guidance issued in early May and now expect total Enpro sales to increase in the 14% to 16% range, up from 10% to 14%, adjusted EBITDA in the range of $330 million to $340 million, up from $315 million to $330 million and adjusted diluted earnings per share to a range of $9.30 to $9.80, up from $8.85 to $9.50 previously. The normalized tax rate used to calculate adjusted diluted earnings per share remains at 25% and fully diluted shares outstanding are 21.4 million. In Sealing Technologies, shorter cycle order patterns remain strong, and organic growth is expected to be in the high single digits in the second half of 2026, excluding the contributions from AlpHa and Overlook, which we still expect to be in the range of $60 million to $65 million this year. Areas such as aerospace, digital infrastructure and communications, water and compositional analysis applications are the primary drivers of the expected strong second half performance in Sealing. We are still not contemplating a significant improvement in commercial vehicle markets in our increased 2026 guidance ranges. On profitability, we continue to expect Sealing segment margins to remain at the high end of our long-term target range of 30%, plus or minus 250 basis points for the year, with ongoing growth investments continuing throughout the segment. In the Advanced Surface Technologies segment, market conditions are bright. Significant multiyear investment in advanced semiconductor infrastructure continues to accelerate, and we are seeing strong demand for the balance of the year with increased visibility through 2027. Through close partnership with our key customers responding to industry demand, we have seen significant order and backlog growth, supporting our improved outlook for the AST segment. We now expect 20% year-over-year growth in the second half of 2026 with segment revenue growth rates and adjusted segment EBITDA margin both approaching 25% exiting the year. Thank you for your time today, and I will now turn the call back to Eric for closing comments. Eric Vaillancourt: Thank you, Joe. Our primary goal is to maximize the potential of our business while creating an environment for our colleagues to grow and flourish. There is purposeful balance inherent in the Enpro portfolio in addition to consistent execution and disciplined capital allocation focused on organic growth and strategic M&A position the company to perform well in a variety of macroeconomic environments, while driving our goals to increase enterprise value and generate attractive returns for our shareholders. As I have said many times in the past, there is no better time to be a part of Enpro. Thank you for your interest in Enpro. We'll now welcome your questions. Operator: [Operator Instructions] Our first question comes from the line of Jeff Hammond with KeyBanc Capital Markets. Jeffrey Hammond: Eric, thanks for the Enpro 3.0 update. That was great. Just on the guide, I mean, it seems like most or all of the raise is AST. Is that right? Or are we feeling a little bit better about Sealing? And maybe just what underpins kind of that acceleration in growth in Sealing into the second half? Joe Bruderek: Yes. Jeff, the majority of the guidance raise is AST, although Sealing is improving through the year. I mean we talked about it last quarter that we would see mid-single digits to high single-digit organic growth in Sealing for the second half of the year, and that's coming to fruition. I mean we've seen improved orders in both general industrial, aerospace, and compositional analysis in a couple of our other end markets. So the majority is AST, but we're definitely seeing strong organic industrial demand in Sealing as well. Jeffrey Hammond: Okay. And then just on the CapEx raise, is this just simply adding capacity around AST or maybe talk more about some of the incremental growth investments? Eric Vaillancourt: Yes, Jeff, we're just pulling forward some investments just to accelerate the growth really in the cleaning space in AST. So we talked before about our Arizona investment. We're pulling forward to the second phase of that. We're also adding capacity in Milpitas, California and continuing to invest in Taiwan to keep up with customer demand. Jeffrey Hammond: Okay. If I could just slip one more in. Just you mentioned domestic general industrial up double digits. I know that's kind of a catch-all category. But maybe just expand on what you're seeing there? Is that just PMI driven or something broader than that? Joe Bruderek: Jeff, it's really in our core industrial markets in the U.S. So think of chemical, process industries, other industrial applications. There's no doubt we're benefiting from some of the infrastructure build-out around data centers and other key applications that are sort of core to Garlock. So yes, that's really driving compositional analysis, another area that falls into our general industrial space, and we're seeing strong demand in AMI and some of those core natural gas applications. Operator: Our next question comes from the line of Tomo Sano with JPMorgan. Tomohiko Sano: Congrats on the quarter. On the 430 bps AST margin improvement, could you talk about the key contributions? And if you could distinguish what portion of the AST margin uplift is sustainable versus transient going forward? Joe Bruderek: Yes. So Tomo, as you said, we saw about 430 basis points of year-over-year margin improvement in AST. If you recall looking back, we did have an unfavorable FX related to transactional Taiwanese working capital last year. So that was a little over $2 million. So that did -- that was more of a prior year issue that was favorable item year-over-year. The rest is really all driven by stronger volume, both on the sales side, improved production, the leverage we're getting on that and improved volumes related to increased inventory. We're seeing incredibly strong demand for the second half of the year and now into 2027. So our teams in AST have worked hard to build inventory to support that demand and support our customers as we expect that to ramp up. So we have been able to build a little inventory, which is bringing us some volume leverage as well. Tomohiko Sano: And one follow-up on the -- could you walk us through the environmental reserve build and how you frame the risk range for incremental reserves and cash outflows, please? Joe Bruderek: Yes. So the increase in environmental reserves that we took this quarter was related to legacy related environmental liabilities from many decades before Enpro was founded. So our teams have been working really hard over the years to kind of manage these legacy liabilities and have done a really nice job partnering with the local communities, the government, et cetera, to manage them to the right outcome. So this was specifically related to uranium mines in Arizona that go back many decades. And we've come to what we think is a probable solution with the government and the local communities that will require some management of the soil and some other movements of that in the coming years. So that was now a probable solution, and we've increased our reserve to reflect that likely outcome. James Gentile: And just to add on that, the $60 million reserves at a pretty strong midpoint with the EPA and other governmental agencies. And first, cash outflow won't happen for the next 3 years or so. So we think we're more than amply reserved to make sure that we're bringing those areas that were going back is [indiscernible] as far as 1950s back to proper condition. Joe Bruderek: Yes. And that will be as long as potentially a 10-year project. So cash outflow will not be -- we don't expect to be meaningful in any given year. Operator: [Operator Instructions] Our next question comes from the line of Steve Ferazani with Sidoti & Company. Steve Ferazani: Appreciate all the detail on the call. Eric, can you talk a little bit about the performance of compositional analysis really since you acquired AMI and now adding AlpHa? Obviously, on the AMI side, probably when you acquired it, you weren't expecting the kind of domestic natural gas production growth and demand that we're seeing. I'm assuming that's got to be outperforming your expectations from a couple of years ago. And now adding it AlpHa, your outlook for an opportunities in compositional analysis, do you see ability to grow the addressable market, take share? And what are the opportunities ahead even on an M&A side? Eric Vaillancourt: That's a lot. Yes, we did expect growth in natural gas. That was part of the thesis, although we also expect that we can take the same technology and the same sensors and put them in other spaces. So measuring moisture, oxygen, H2S. So those sensors can be used in a whole bunch of applications, including biopharmaceutical and a range of products. We expect to be able to expand the geography. So they're basically North American focused. We can take the same technology in Europe and other places and all other applications. So yes, we can grow the TAM. It's a wide opportunity, and we're accelerating that growth and really excited about it. AlpHa is just another one. In addition, we remain active and looking at targets all the time for extra M&A. And so we remain active and hopeful. Steve Ferazani: Excellent. In terms of the growth, can you talk about where you are in pricing across your segments, the opportunities there to drive further revenue and margin growth? And if I can just add this into this question, we're hearing a lot about this through the earnings season. Were there any tariff refunds in the number? Eric Vaillancourt: The tariff refunds, we always say were minimal and manageable. We said that all the way on the way up. So it will be the same on the way down. So there's a little bit, but not a significant impact. In terms of pricing power, yes, there's still pricing opportunities a little bit with AlpHa and our newer acquisitions. We don't have the same pricing discipline as we do, I would say, throughout Enpro. There's still also a little bit of price opportunity always in just targeted applications, but it's niche. We'll get our standard industrial raise in Sealing every year, 2% or so. We don't do cost plus pricing, Steve. It's all value pricing. So it looks at the application and what we contribute and how -- so it's always strategic pricing. It's not broad-based other than our general increases that happen basically once a year. And so I never think there -- I always think there is opportunity for price someplace, and it's being agile enough to figure out where to apply it. James Gentile: Yes. Our qualified and specified positions with strong aftermarket, especially in Sealing Technologies is a key element to driving strategic pricing initiatives in the future. Operator: Our next question comes from the line of Ian Zaffino with Oppenheimer & Company. Ian Zaffino: Just like to dig down in AST a little bit more. Maybe talk about kind of where the strength is as far as maybe cleaning versus components, optical coatings, where is that? And as we look into second quarter, is that all kind of -- I'm sorry, second half. Is that all just leading edge driven? Or any other kind of commentary you could give us around maybe your whole product lineup? Eric Vaillancourt: It's broad-based. So it's throughout our cleaning business is growing strong. Precision Machining is growing very well as well. Optical coatings is a little bit slower than that, but still doing great. So all in all, it's broad-based and wide. So mostly it is still leading edge, but there is -- we're benefiting it throughout the whole cycle, if you will. Joe Bruderek: Ian, I'll just add. As you know, our Precision Cleaning business is all leading edge, right? So as they continue to see leading edge infrastructure build-out and increased production, we're benefiting very well with our key customers from a cleaning perspective. We continue to invest in new capacity across all of our geographies really based on the current demand and projected future demand over the next couple of years. So that's all leading edge. Our equipment business is a little bit of mix of both. But there's clear significant investment going on right now in leading-edge chip architecture and infrastructure for advanced AI and other computing, which is driving a lot of that build-out for equipment. Ian Zaffino: Okay. And then on the commercial vehicle, is that all on the trailer side? And anything else you're kind of seeing? And then what's kind of your outlook? And I know it's been relatively soft, but we're kind of seeing an improvement in the truck side. And I know they're not exactly correlated, but kind of same [indiscernible] in the ecosystem. So wondering what kind of visibility is there? Any kind of optimism you have in that segment? Or any other color you could give us? Eric Vaillancourt: Yes. It is mostly trailer. It's more than what, 70% trailer. So it's a large -- certainly the largest part of it. I think it might be larger than that. We are -- I am optimistic. Let me say this, FPR (sic) [ FTR ] is posting double-digit growth next year, I think 17%, 18% last time I saw. I do think that will happen. The investment in truck came ahead of the trailer, if you look -- and some of that was to be pollution controls and extra cost in trucks. So first, they invested there. You saw the growth in trucking this year. We're starting to see some signs of it improving in the second half of this year, although still not significant. But I think we're at definitely -- I would say we're at the bottom and getting better, and there's starting to be momentum there. I'm excited about next year for that business. James Gentile: [indiscernible] more than 2/3 as a percentage of revenue in commercial vehicle as well. Eric Vaillancourt: The other thing, that team performs very, very well. We've maintained very good margins through this whole cycle. The team executes well. And so I'm excited they'll see a little bit recovery and do very well. It's kind of upturn here. We've also taken some share in the downturn that will show up later. Unknown Executive: And we've also made some select capacity and process expansions to position the business well to perform as the market inevitably recovers. Eric Vaillancourt: Yes. I could give you a little more color on that. We basically added a line during this downturn to support aftermarket. In the past, we've had challenges when the market was growing fast with keeping up with both OEM and aftermarket. And so we added a second line there that will help us in this upturn. Operator: Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Gentile for any final comments. James Gentile: We're seeing strong momentum across the portfolio, and we want to thank you all for your support and look forward to talking to you and report Q3 in early November. Thanks. Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Enpro, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enpro wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Enpro (NPO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Enpro Inc.? Here are five stocks we like better. Strong second-quarter performance: Sales rose 17.6% year over year to $338.8 million, while adjusted EBITDA increased 22% to $86.9 million and adjusted EPS climbed 23.2% to $2.50. Semiconductor demand drove growth: Advanced Surface Technologies sales increased 21.8%, supported by precision cleaning for advanced-node chip production, while Enpro is expanding capacity in Arizona, California and Taiwan. Enpro raised its 2026 outlook: The company now expects 14%–16% sales growth, $330 million–$340 million in adjusted EBITDA and adjusted EPS of $9.30–$9.80, with much of the increase attributable to AST. Enpro (NYSE:NPO) reported higher second-quarter sales and earnings as demand strengthened across its Advanced Surface Technologies business, particularly in semiconductor-related applications, while its Sealing Technologies segment benefited from acquisitions, aerospace demand and domestic industrial growth. Sales rose 17.6% year over year to $338.8 million in the second quarter, while adjusted EBITDA increased more than 22% to $86.9 million. Adjusted EBITDA margin expanded 90 basis points to 25.6%, and adjusted diluted earnings per share increased 23.2% to $2.50. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control President and Chief Executive Officer Eric Vaillancourt said the company’s products serve mission-critical applications including advanced semiconductor manufacturing, biopharmaceutical processes, space and satellite communications, gas and liquid sensing, commercial transportation and industrial processing. “We are pleased with our strong first half results and improved outlook for the rest of the year,” Vaillancourt said, citing customers’ needs for products that help them operate “safely, reliably, and efficiently.” → 3 Drone Stocks That Should Soar After the Summer Slump Advanced Surface Technologies, or AST, posted 21.8% sales growth during the quarter, with improving sequential orders and particularly strong demand for precision cleaning services linked to advanced-node chip production. The segment’s adjusted EBITDA rose 48.5% from a year earlier, while its adjusted EBITDA margin increased 430 basis points to 23.9%. Chief Financial Officer Joe Bruderek said the margin improvement was primarily driven by stronger sales, production volumes and operating leverage. The year-over-year comparison also benefited from the normalization of an unfavorable foreign-exchange item in the prior-year quarter involving Taiwanese working capital. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Management said semiconductor customer build plans and lead times provide visibility through 2027 for its semiconductor-facing products and solutions. Demand is also healthy for in-chamber tools, precision machining and optical coatings, although Vaillancourt said coatings growth was somewhat slower than the company’s cleaning and machining businesses. James Gentile, vice president of investor relations, said Enpro’s precision-cleaning business is entirely tied to leading-edge semiconductor production. The company is increasing capacity across geographies in response to current and anticipated demand. Enpro raised its expected capital expenditures and capitalized software spending for 2026 to $60 million to $65 million, from a prior expectation of about $50 million. Vaillancourt said the additional spending will accelerate AST cleaning capacity investments, including the second phase of an Arizona project, capacity additions in Milpitas, California, and further investment in Taiwan. Sealing Technologies sales increased 15.3% to $216.2 million. The segment recorded 5% organic growth, with the balance supported by the fourth-quarter 2025 acquisitions of AlpHa Measurement Solutions and Overlook Industries. The segment benefited from strong aerospace demand and double-digit organic growth in domestic general industrial markets. Bruderek said the domestic industrial performance included chemical process industries, data-center-related infrastructure activity and demand in compositional analysis, including natural-gas applications. Sealing Technologies adjusted EBITDA increased 13.3%, and its 33.2% adjusted EBITDA margin remained above 30% for the 10th consecutive quarter. Management attributed the result to operating performance, strategic pricing, acquisition contributions and foreign-exchange tailwinds, partly offset by commercial-vehicle softness and growth investments. Commercial vehicle markets remained weak, primarily in trailers, though management said it is seeing early signs of improvement. Vaillancourt said Enpro has added capacity to better serve both original-equipment and aftermarket demand when the trailer market recovers. Aftermarket sales represented 60% of Sealing Technologies revenue in the quarter. Management also cited softness in Europe, including smaller general industrial and food and biopharmaceutical positions. For the second half, Enpro expects Sealing Technologies organic growth in the high single digits, excluding acquisition contributions. AlpHa and Overlook are expected to contribute $60 million to $65 million of revenue in 2026. Enpro increased its full-year 2026 outlook, with the majority of the raise tied to AST, according to Bruderek. The company now expects: Sales growth of 14% to 16%, compared with prior guidance of 10% to 14%. Adjusted EBITDA of $330 million to $340 million, up from $315 million to $330 million. Adjusted diluted EPS of $9.30 to $9.80, compared with prior guidance of $8.85 to $9.50. For AST, Enpro expects approximately 20% year-over-year growth in the second half of 2026. The company expects both segment revenue growth and adjusted EBITDA margin to approach 25% as it exits the year. Vaillancourt said Enpro is targeting long-term mid-single-digit organic growth in Sealing Technologies and high-single-digit to low-double-digit organic growth in AST through 2030. Both segments are targeted to generate adjusted EBITDA margins of 30%, plus or minus 250 basis points, over that period. Enpro generated more than $60 million of free cash flow in the first half, even as it invested in working capital and spent nearly $30 million on capital expenditures and capitalized software. The company repaid $80 million of revolving debt during the first half, reducing its leverage ratio to 1.6 times trailing 12-month adjusted EBITDA. Net debt stood at approximately $500 million as of June 30, including $450 million of senior notes due in 2033 and $130 million drawn on its revolving credit facility, net of $77 million in cash. During the quarter, Enpro paid a quarterly dividend of $0.32 per share, totaling $6.9 million, and said it retains a $50 million share repurchase authorization. In response to an analyst question, Bruderek said the company increased environmental reserves related to legacy uranium mines in Arizona dating back decades before Enpro was founded. Gentile said the reserve totaled $16 million and reflected what the company considers a probable remediation solution with government agencies and local communities. The first cash outflow is not expected for about three years, and the project could extend for as long as a decade, he said. Enpro Group, Inc (NYSE: NPO) is a global industrial technology company specializing in engineered products designed to perform in critical and harsh environments. The company's product portfolio spans proprietary bearing materials and surface enhancement technologies, high-performance sealing solutions, and fluid handling components. Enpro's offerings are tailored for markets such as semiconductor manufacturing, aerospace, energy, chemical processing, life sciences and general industrial applications. Formed in December 2002 as a spin-off from the aerospace and defense supplier Goodrich Corporation, Enpro has grown through a combination of targeted acquisitions and focused organic investment in research and development. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enpro Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 17.6% was primarily propelled by a 21.8% surge in Advanced Surface Technologies (AST) as semiconductor industry demand for precision cleaning and chamber tools accelerated. Sealing Technologies achieved 5% organic growth, bolstered by double-digit gains in domestic general industrial markets and strong aerospace performance, offsetting soft commercial vehicle demand. Management attributes margin expansion to strong operating leverage in AST and consistent pricing discipline within the Sealing segment, which maintained margins above 30% for the 10th consecutive quarter. The integration of AlpHa and Overlook is expanding capabilities in process analytics and fluid path technology for biologics, contributing to the segment's overall 15.3% growth. Operational focus remains on the 'Enpro 3.0' strategy, which balances high-engineered product innovation with a significant emphasis on employee empowerment and professional development. Commercial vehicle markets are showing early signs of stabilization, with the company maintaining a strong specification position to capture the eventual recovery in trailer demand. Full-year 2026 sales guidance was raised to 14%-16% growth, reflecting increased visibility into semiconductor capital spending through 2027. AST segment revenue growth and EBITDA margins are both projected to approach 25% by the end of the year, driven by demand for advanced node chip production. Capital expenditure expectations increased to $60 million-$65 million to pull forward capacity expansions in Arizona, California, and Taiwan to meet customer lead times. Sealing Technologies is expected to deliver high single-digit organic growth in the second half of 2026, supported by aerospace and digital infrastructure tailwinds. Management's guidance assumes no significant improvement in the commercial vehicle market for the remainder of 2026, despite internal signs of a potential bottoming out. A $60 million environmental reserve was established for legacy uranium mine liabilities dating back to the 1950s, though cash outflows are not expected for at least three years. Corporate expenses increased to $15.7 million due to higher incentive compensation accruals and $1.3 million in restructuring costs. Softness in European general industrial and food and biopharmaceutical markets was noted as a localized headwind during the quarter. The company reduced revolving debt by $80 million year-to-date, maintaining a net leverage ratio of 1.6x to preserve M&A flexibility. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the majority of the raise is attributed to AST, though Sealing is also showing improved organic industrial demand. The acceleration in Sealing is supported by strong orders in aerospace, general industrial, and compositional analysis applications. The 430 basis point improvement was partly due to a $2 million favorable year-over-year FX comparison in Taiwan. Core sustainability is driven by volume leverage and proactive inventory building to meet high demand projected through 2027. Enpro plans to expand AMI and AlpHa technology into new geographies like Europe and new applications such as moisture and oxygen sensing. The company remains active in evaluating M&A targets that align with its high-margin, niche technology criteria. While the market remains soft, management is optimistic for 2027 based on industry forecasts of double-digit trailer growth. Enpro added a new production line during the downturn to specifically support aftermarket demand and capture market share during the eventual upturn.

Enpro (NPO) came out with quarterly earnings of $2.5 per share, beating the Zacks Consensus Estimate of $2.3 per share. This compares to earnings of $2.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.70%. A quarter ago, it was expected that this industrial products maker would post earnings of $2.08 per share when it actually produced earnings of $2.14, delivering a surprise of +2.88%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Enpro, which belongs to the Zacks Technology Services industry, posted revenues of $338.8 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.92%. This compares to year-ago revenues of $288.1 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Enpro shares have added about 56% since the beginning of the year versus the S&P 500's gain of 11%. While Enpro has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Enpro was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.31 on $324.9 million in revenues for the coming quarter and $9.16 on $1.28 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Bit Digital, Inc. (BTBT), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Bit Digital, Inc.'s revenues are expected to be $21.71 million, down 15.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enpro Inc. (NPO) : Free Stock Analysis Report Bit Digital, Inc. (BTBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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 04, 2026--(BUSINESS WIRE)--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. Financial Highlights (Dollars in millions except per share data) 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 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 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 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. 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 This press release contains financial measures that have not been prepared in conformity with GAAP. They include adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, total adjusted segment EBITDA, and free cash flow. Tables showing the reconciliation of these historical non-GAAP financial measures to the comparable GAAP measures are attached to the release. Adjusted EBITDA and adjusted diluted earnings per share anticipated for full-year 2026 are calculated in a manner consistent with the historical presentation of these measures in the attached tables. Because of the forward-looking nature of these estimates, it is impractical to present quantitative reconciliations of such measures to comparable GAAP measures, and accordingly no such GAAP measures are being presented. Management believes these non-GAAP metrics are commonly used financial measures for investors to evaluate the company’s operating performance and, when read in conjunction with the company’s consolidated financial statements, present a useful tool to evaluate the company’s ongoing operations and performance from period to period. In addition, these are some of the factors the company uses in internal evaluations of the overall performance of its businesses. Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. Forward-Looking Statements and Guidance Statements in this press release that express a belief, expectation, or intention, including increased 2026 guidance and other statements that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: economic conditions in the markets served by the company’s businesses and the businesses of its customers, some of which are cyclical and experience periodic downturns and may be affected by the imposition or threat of imposition of tariffs; the impact of geopolitical activity on those markets and the global economy, including instabilities associated with the armed conflicts in the Middle East region, and impacts on shipping in that region, and in Ukraine and any conflict or threat of conflict that may affect Taiwan; uncertainties with respect to the imposition, or threat of imposition, of government tariffs, embargoes and other trade protection measures, such as "anti-dumping" duties applicable to classes of products, and import or export licensing requirements, as well as the imposition of trade sanctions against a class of products imported from or sold and exported to, or the loss of "normal trade relations" status with, countries in which the company conducts business, could significantly increase the company’s cost of products or otherwise reduce its sales and harm its business; uncertainties with respect to prices and availability of raw materials, including as a result of instabilities from geopolitical conflicts and the imposition of tariffs; uncertainties with respect to the company’s ability to achieve anticipated growth within the semiconductor, life sciences, and other technology-enabled markets, including uncertainties with respect to the timing of completion of facility expansions; the impact of fluctuations in relevant foreign currency exchange rates or unanticipated increases in applicable interest rates; unanticipated delays or problems in introducing new products; the impact from any pending or potential labor disputes; announcements by competitors of new products, services or technological innovations; changes in the company’s pricing policies or the pricing policies of its competitors; risks related to the reliance of the Advanced Surface Technologies segment on a small number of significant customers and the geographic concentration of those customers; uncertainties with respect to the company’s ability to identify and complete business acquisitions consistent with its strategy and to successfully integrate any businesses that it acquires; and uncertainties with respect to the amount of any payments required to satisfy contingent liabilities, including those related to discontinued operations, other divested businesses and discontinued operations of the company’s predecessors, including liabilities for certain products, environmental matters, employee benefit and statutory severance obligations and other matters. Enpro’s filings with the Securities and Exchange Commission, including its most recent Form 10-K and 10-Q reports, describe these and other risks and uncertainties in more detail. Enpro does not undertake to update any forward-looking statements made in this press release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based. Full-year guidance is subject to the risks and uncertainties discussed above and specifically excludes changes in the number of shares outstanding, impacts from future acquisitions, dispositions and related transaction costs, restructuring costs and the impact of changes in foreign exchange rates, in each case subsequent to June 30, 2026, and any incremental impact on demands and costs arising from tariffs announced, or trade tensions arising, subsequent to August 3, 2026. About Enpro Inc. Enpro is a leading industrial technology company focused on critical applications across many end-markets, including semiconductor, industrial process, commercial vehicle, sustainable power generation, aerospace, food and biopharma, photonics, and life sciences. Headquartered in Charlotte, North Carolina, Enpro is listed on the New York Stock Exchange under the symbol "NPO". For more information, visit the company’s website at https://www.enpro.com. APPENDICES Consolidated Financial Information and Reconciliations View source version on businesswire.com: https://www.businesswire.com/news/home/20260804203240/en/ Contacts Investor Contacts:Joseph F. BruderekExecutive Vice President andChief Financial Officer James M. GentileVice President, Investor Relations Phone: 704-731-1527 Email: [email protected] Enpro Inc. 5605 Carnegie BoulevardCharlotte, North Carolina, 28209www.enpro.com

This article first appeared on GuruFocus. Revenue: $338.8 million, up 17.6% year-over-year. Adjusted EBITDA: $86.9 million, up more than 22% year-over-year. Adjusted EBITDA Margin: 25.6%, expanded 90 basis points year-over-year. Adjusted Diluted EPS: $2.50, up 23.2% year-over-year. Sealing Technologies Sales: $216.2 million, up 15.3% year-over-year, with 5% organic growth. Sealing Technologies Adjusted Segment EBITDA Margin: 33.2%, above 30% for the 10th consecutive quarter. Advanced Surface Technologies Sales: Up 21.8% year-over-year. Advanced Surface Technologies Adjusted Segment EBITDA: Up 48.5% year-over-year. Advanced Surface Technologies Adjusted Segment EBITDA Margin: 23.9%, expanded 430 basis points year-over-year. Free Cash Flow: More than $60 million year-to-date. Capital Expenditures and Capitalized Software: Approached $30 million year-to-date. Net Debt: Approximately $500 million as of June 30, 2026. Net Leverage Ratio: 1.6 times trailing 12-month adjusted EBITDA. Dividend: $0.32 per share quarterly dividend, totaling $6.9 million in the second quarter. 2026 Guidance: Sales expected to increase 14% to 16%; adjusted EBITDA expected in the range of $330 million to $340 million; adjusted diluted EPS expected in the range of $9.30 to $9.80. Warning! GuruFocus has detected 8 Warning Signs with ROK. Is NPO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong second quarter results with sales up 17.6% year-over-year and adjusted EBITDA up over 22% to $86.9 million. Advanced Surface Technologies (AST) segment saw 21.8% revenue growth, driven by strong demand in semiconductor markets with visibility through 2027. Sealing Technologies grew 15.3% overall and 5% organically, with double-digit growth in domestic general industrial markets and strong aerospace performance. Increased full-year 2026 guidance: sales growth now expected at 14%-16%, adjusted EBITDA at $330-$340 million, and adjusted EPS at $9.30-$9.80. Strong balance sheet with net leverage at 1.6 times, $60 million in free cash flow year-to-date, and $80 million in revolving debt repaid. Successful integration of AlpHa and Overlook acquisitions, expanding capabilities in process analytics and biopharmaceutical fluid path technology. AST segment profitability improved significantly, with adjusted EBITDA margin expanding 430 basis points to 23.9%. Commercial vehicle markets remained soft in the second quarter, with no significant improvement expected in 2026 guidance. Weakness observed in European general industrial and food and biopharmaceutical markets during the quarter. Corporate expenses increased to $15.7 million from $12.1 million a year ago, driven by higher incentive compensation and restructuring costs. Increased capital expenditure expectations to $60-$65 million, up from $50 million, to support AST growth, which may pressure near-term cash flow. Environmental reserve increased by $16 million for legacy uranium mine liabilities, with potential cash outflows over a 10-year period. Foreign exchange headwinds in the prior year's second quarter normalized, but the company still faces some FX-related risks. Sealing Technologies segment profitability, while strong at 33.2%, was partially offset by continued softness in commercial vehicle markets and growth investments. Q: The guidance raise seems mostly driven by AST. Are you feeling better about Sealing, and what underpins the acceleration in growth there in the second half? A: Joe Bruderek (CFO): The majority of the guidance raise is AST, although Sealing is improving through the year. We are seeing improved orders in general industrial, aerospace, and compositional analysis. We expect high single-digit organic growth in Sealing for the second half of 2026, driven by strong organic industrial demand. Q: On the CapEx raise, is this simply adding capacity around AST? Can you talk more about the incremental growth investments? A: Eric Vaillancourt (CEO): We are pulling forward investments to accelerate growth in the cleaning space in AST. This includes pulling forward the second phase of our Arizona investment, adding capacity in Milpitas, California, and continuing to invest in Taiwan to keep up with customer demand. Q: On the 430 basis points AST margin improvement, what were the key contributions, and what portion is sustainable versus transient? A: Joe Bruderek (CFO): The improvement was driven by stronger volume, improved production, and operating leverage. We also had a favorable year-over-year comparison related to a prior-year FX issue in Taiwanese working capital of over $2 million. The rest is driven by strong demand and our teams building inventory to support the expected ramp-up in the second half and into 2027. Q: Can you walk us through the environmental reserve build and how you frame the risk range for incremental reserves and cash outflows? A: Joe Bruderek (CFO) and James Gentile (IR): The increase is related to legacy uranium mines in Arizona dating back decades. We have come to a probable solution with the government and local communities requiring soil management. The $16 million reserve is a strong midpoint with the EPA. First cash outflow won't happen for about three years, and it could be a 10-year project with no meaningful cash outflow in any given year. Q: Can you talk about the performance of compositional analysis since acquiring AMI and adding AlpHa? What are the opportunities to grow the addressable market and take share? A: Eric Vaillancourt (CEO): We expected growth in natural gas, but we also expect to take the same sensor technology into other spaces like biopharmaceutical and other applications. We can expand geographically beyond North America into Europe and other regions. We remain active in looking at M&A targets to further expand this area. Q: Where are you in pricing across your segments, and were there any tariff refunds in the numbers? A: Eric Vaillancourt (CEO): Tariff refunds were minimal and manageable. In terms of pricing, there are still opportunities, especially with newer acquisitions like AlpHa that don't have the same pricing discipline. We use value-based pricing, not cost-plus, and typically get a standard 2% industrial raise annually. We are always finding targeted opportunities to apply strategic pricing. Q: Can you dig into AST a bit more? Where is the strengthcleaning, components, or optical coatingsand is the second half all leading-edge driven? A: Eric Vaillancourt (CEO) and James Gentile (IR): The strength is broad-based across the business. Precision cleaning is growing strong, precision machining is growing very well, and optical coatings is a bit slower but still doing great. The demand is mostly leading-edge driven, with significant investment in leading-edge chip architecture and infrastructure for advanced AI and computing. Q: On commercial vehicle, is that all on the trailer side? What is your outlook and visibility for that segment? A: Eric Vaillancourt (CEO): It is mostly trailer, over 70%. We are at the bottom and seeing early signs of improvement. FTR is posting double-digit growth next year, and we are excited about that business. We added a second production line during the downturn to support aftermarket, which will help us in the upturn. The team has maintained good margins through the cycle and taken some share. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Cipher Digital Inc. CIFR is scheduled to report second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $29.28 million, indicating a 32.78% year-over-year decline.The consensus mark for loss is pegged at 21 cents per share, unchanged over the past 30 days. This implies a year-over-year deterioration from a loss of 12 cents.Cipher Digital’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, matched in another and missed on the remaining two occasions, with an average negative surprise of 354.05%.Let’s see how things have shaped up for CIFR before the announcement. Cipher Digital’s second-quarter 2026 results are likely to reflect its shift from Bitcoin mining toward hyperscale data-center development. The company entered the quarter with three long-term campus leases and 700 megawatts of contracted HPC capacity. However, meaningful lease revenues had not begun, leaving near-term performance reliant on mining as construction spending increased. This transition is expected to have improved long-term visibility but pressured second-quarter profitability.Construction progress at Barber Lake and Black Pearl should remain a central focus. Barber Lake had completed structural steel work and secured about 99% of required equipment, while Black Pearl’s retrofit and expansion phases were advancing with most equipment procured. Higher labor and procurement activity are likely to have increased capital expenditures and working-capital needs in the quarter.Stingray’s development is another key driver. Cipher began mobilization and substation work while targeting fourth-quarter 2026 energization. Project-level financing reduces funding uncertainty and limits reliance on corporate equity, but additional borrowing raises leverage and interest obligations. Stingray activity is, therefore, expected to have strengthened growth visibility while adding near-term financing costs.Odessa remained Cipher’s primary operating revenue source entering the second quarter. The 207-megawatt facility operated at roughly 11.6 exahash per second and benefited from power costs near 2.8 cents per kilowatt-hour. Still, revenues remained exposed to Bitcoin prices, network difficulty and production variability, while Black Pearl mining had been decommissioned. These factors may have limited sequential mining revenues despite Odessa’s favorable cost structure.Finally, operating and financing costs warrant attention. Cipher had expanded staffing to support development, increasing compensation and professional expenses, while project debt lifted interest expense. Higher overhead, financing costs and noncash valuation movements are likely to have kept reported earnings volatile in the quarter. Our proven model does not conclusively predict an earnings beat for Cipher Digital this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.Cipher Digital currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that they have the right combination of elements to beat on earnings in their upcoming releases:Dave Inc. DAVE currently has an Earnings ESP of +1.42% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. DAVE shares have gained 79.8% in the year-to-date period. DAVE is set to report second-quarter 2026 results on Aug. 5.Duolingo, Inc. DUOL currently has an Earnings ESP of +9.02% and a Zacks Rank #2.Duolingo shares have declined 22.2% in the year-to-date period. DUOL is slated to report second-quarter 2026 results on Aug. 5.Enpro Inc. NPO currently has an Earnings ESP of +0.87% and a Zacks Rank #2.NPO shares have appreciated 51.7% in the year-to-date period. NPO is scheduled to report second-quarter 2026 results on Aug. 4. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cipher Digital Inc. (CIFR) : Free Stock Analysis Report Dave Inc. (DAVE) : Free Stock Analysis Report Enpro Inc. (NPO) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research