Enpro : Investor Presentation - May-June 2026 document
NPO
Published on 05/05/2026 at 10:51 am EDT
May-June 2026
1.0 2.0
Resolution of Significant Spin-Off Liabilities
Portfolio Transformation & Optimization
Accelerate Profitable
Growth
2002-2018 2019-2024 2025+
Permanently resolved legacy liabilities
Weighted to cyclical, capital-intensive end-markets
Below 15% EBITDA margins
13 Divestitures
$1B Proceeds
+
5 Acquisitions for $1.7B
Innovative industrial
technology focus
Creation of AST Segment
Growth markets with secular tailwinds
Aftermarket / recurring
revenues
>20% EBITDA margins
Organic Profitable Growth
+
Disciplined, High Quality M&A
Premium industrial technology compounder
Mid-to-High Single Digit Organic Growth
Strong Free Cash Flow
Select Strategic Acquisitions
>25% EBITDA margins
Enpro 3.0: Focused on Revenue Growth at Premium Profitability & Returns
May-June 2026 Investor Presentation
Enpro (NYSE: NPO) | Leading-Edge Portfolio of Businesses
Company Overview
Headquarters
Charlotte, NC
Primary Manufacturing
Facilities
15
Global Employees
~4,000
Financial Overview
Market-Cap1
~$6.0B
LTM Revenue3
$1.2B
LTM Adj. EBITDA (Margin)2,3
$286M (24.4%)
LTM Aftermarket Rev. %
54%
Dividend Yield1
0.5%
1 As of 05/04/26; 2 Refer to appendix for Non-GAAP reconciliation; 3 As of 03/31/26;
Sales by Segment
LTM Revenue Contribution as of March 31, 2026
Sales by Channel
Sales by Geography
Sales by Market
May-June 2026 Investor Presentation
Profile
Select Products
Composed of Garlock, STEMCO, and Technetics divisions
Includes Garlock Hygienic Technologies and Compositional Analysis Products and Solutions
Enduring, applied engineering expertise using leading-edge technologies and processes
Strong aftermarket in critical applications that safeguard environments
Extensive proprietary knowledge and strong customer relationships
+10.8%
11%
9%
37%
21%
59%
63%
United States Europe Asia Pacific RoW
General Industrial Power Generation
Aerospace
Commercial Vehicle Food & Pharma
Oil & Gas
Aftermarket
OE
Safeguarding Critical Environments
May-June 2026 Investor Presentation
Innovative critical process solutions supporting safety and reliability
Metallic Seals
Soft Gaskets
Wheel-end Products
Gas & Liquid Analyzers and Sensors
1Q:26 Sales & Adjusted Segment EBITDA Margin
LTM Revenue Contribution as of March 31, 2026
By Geography
By Market
By Channel
10%
11%
8%
39%
10%
22%
Profile
Solutions
Utilizes proprietary technologies and processes with highly differentiated products and solutions
Vertical integration strategy solves challenging applications for semiconductor production and process reliability with leading-edge technologies
Investing in infrastructure globally to answer the needs of the global semiconductor supply chain with consistent and reliable execution
64%
United States Asia Pacific Europe RoW
Semiconductor Aerospace
General Industrial Oil & Gas
Aftermarket
OE
Leading Positions in Secular Growth Markets
May-June 2026 Investor Presentation
1%
2%
36%
+11.1%
53%
44%
Precision-Engineered Tools
Cleaning, Coating and Refurbishment Solutions
Optical Filters & Coatings
1Q:26 Sales & Adjusted Segment EBITDA Margin
LTM Revenue Contribution as of March 31, 2026
By Geography
By Market
By Channel
6% 4% 2%
88%
Strong Balance Sheet Supports Optionality
Net leverage approximately 1.8x at
the end of 1Q:26.
$630 million of availability under
$800 million revolving credit facility maturing in 2030.
$450 million of 6.125% senior notes due 2033
Consistent free cash flow generation provides ample financial flexibility to execute on long-term strategic growth initiatives
Investing in Long-Term Organic Growth & Strategic Acquisitions
Disciplined and Balanced Capital Allocation
Prudent allocation of capital for growth opportunities and selective acquisitions that fit our strategic and financial criteria
2026 increase in quarterly dividend marks the 11th consecutive year of dividend increases
$50 million share repurchase authorization
Multiple sources of long-term organic growth, while encouraging innovation, applied engineering expertise and new market development
Pursuing growth markets with high cash flow return on operating capital and recurring revenue
Differentiated products and solutions that safeguard critical environments with high barriers to entry, specification position, transferable intellectual property, high switching costs and stringent customer qualifications
May-June 2026 Investor Presentation
Enpro Advances 3.0 Strategy with Two Acquisitions
Headquartered in Easthampton, Massachusetts Headquartered in Houston, Texas
Manufacturer of single-use technologies for biopharma manufacturing, specializing in filling needles, nozzles, and tube sets
Critical, single-use consumables used in
drug and vaccine production
Biologics production expected to accelerate over the next decade
Strong reputation for quality, regulatory compliance, and customer intimacy
Example Products
Provider of liquid analytical sensors and instrumentation for pH, conductivity, and other parameters
Serves diverse markets such as industrial process control, water & wastewater, environmental monitoring and laboratory
Known for technical expertise, strong product innovation, and entrenched customer relationships
Example Products
Strong Strategic Fit with Enpro
Overlook Industries adds proprietary single-use technologies for biopharmaceutical manufacturing to Garlock Hygienic Technologies
AlpHa Measurement Solutions will broaden Enpro's compositional analysis strategy by adding liquid sensing and instrumentation
technologies
Both businesses characterize the qualities of an Enpro business, while meeting stringent growth and financial criteria
Overlook acquired on October 8, 2025; acquisition of AlpHa completed on November 14, 2025.
AlpHa and Overlook are included in the Sealing Technologies segment
May-June 2026 Investor Presentation
Balance Sheet, Cash Flow & Capital Allocation
$ in millions
Net Leverage
Commentary
B Cash and Cash Equivalents $ 79
1 Outstanding balance of debt instrument.
2 The $630.6M available for borrowing under revolver is net of outstanding borrowings and letters of credit totaling $169.4M.
* Non-GAAP measure; refer to appendix for reconciliation to GAAP.
Strong balance sheet; ample liquidity consisting of
As of March
31, 2026
Revolver Senior Notes1
$ 160
$ 450
A
Debt Components
$ 610
$79.2M in cash and $630.6M2 available under revolver
Free cash flow* for the three months ended March 31,
2026 was $26.5M, up from $11.6M from the prior year
D = (A - B + C) Net Debt $ 531
Paid $6.9M in dividends for the three months ended March 31, 2026
Repaid $50M in revolving debt during the quarter, reducing our net leverage ratio to 1.9x trailing twelve-month adjusted EBITDA
Strong balance sheet position enables us to invest in the company and pursue capability-expanding acquisitions that meet our rigorous strategic and financial criteria
2026 Guidance Increase
2026 Guidance
(as of May 5, 2026)
Prior 2026 Guidance
(as of February 18, 2026)
Revenue Growth(1)
10% to 14%
8% to 12%
Adjusted EBITDA*(1)
$315M - $330M
$305M - $320M
Adjusted Diluted EPS*(1)(2)
$8.85 - $9.50
$8.50 - $9.20
~$111M-$113M
Depreciation
and Amortization(2)
~$50M
Capital Expenditures
~$32M-$34M
Net Interest Expense
25%
Normalized Tax Rate
(1) Full-year guidance is subject to the risks and uncertainties described above and excludes changes in the number of shares outstanding, impacts from future acquisitions, dispositions and related transaction costs, restructuring costs, and the impact of foreign exchange rate changes, in each case, subsequent to the end of the first quarter, any incremental impact on demand and costs arising from tariffs announced, or trade tensions arising, subsequent to May 4, 2026.
(2) Amortization of acquisition-related intangible assets of $82 million excluded from the calculation of adjusted diluted EPS.
11
Reconciliation of LTM Results
Enpro Inc.
Adjusted
Adjusted
($ in millions)
Revenue
EBITDA
EBITDA Margin
Three Months Ended March 31, 2026 $ 303.0 $ 76.4 25.2% Plus:
Year Ended December 31, 2025 1,143.3 277.6 24.3%
Less:
Three Months Ended March 31, 2025 273.2 67.8 24.8%
LTM Ended March 31, 2026 $ 1,173.1 $ 286.2 24.4%
Consolidated Adjusted EBITDA (1/2)
For the Year Ended December 31, 2025 (In Millions)
2025
Net income $ 40.5
Adjustments to arrive at earnings before interest, income taxes,
depreciation, amortization, and other selected items ("Adjusted EBITDA"):
Income tax expense 17.1
Interest expense, net 28.2
Restructuring and impairment expense, net 2.5
Depreciation and amortization expense 102.8
Costs associated with previously disposed businesses 2.3
Environmental reserve adjustments 5.6
Pension income (non-service cost) 2.6
Acquisition expenses 8.5
Loss on extinguishment of debt 1.7
Amortization of the fair value adjustment to acquisition date inventory 2.2
Long-term promissory note reserve1 (4.5)
Foreign exchange losses related to the divestiture of a discontinued operation 0.4
Loss on pension settlement2 67.2
Other 0.5
Adjusted EBITDA $ 277.6
1We received a long-term promissory note in connection to the sale of a divested business. As part of our regular review of the note, in the first quarter of 2024, we concluded a reserve was needed for expected future credit losses. In the fourth quarter of 2025, the obligor of the note refinanced all of its long-term debt, which led to the repayment of the note in full, and a recovery of the corresponding loss.
2 The termination and settlement process for our defined benefit pension plan in the United States was substantially completed in the fourth quarter of 2025, resulting in the recognition of a non-cash settlement loss to recognize actuarial losses previously deferred in accumulated other comprehensive income on our consolidated balance sheet.
Consolidated Adjusted EBITDA (2/2)
For the Three Months Ended March 31, 2026 and 2025
(In Millions)
2026
2025
Net income
$
27.4
$
24.5
Adjustments to arrive at earnings before interest, income taxes,
depreciation, amortization, and other selected items ("Adjusted EBITDA"):
Interest expense, net
8.8
8.0
Income tax expense
6.5
7.8
Depreciation and amortization expense
27.5
25.2
Restructuring expense
1.2
0.6
Costs associated with previously disposed businesses
0.6
0.3
Acquisition expenses
1.0
0.2
Pension expense - non-service cost
0.1
0.8
Amortization of the fair value adjustment to acquisition date inventory
3.2
-
Other
0.1
0.4
Adjusted EBITDA
$
76.4
$
67.8
Segment Information (1/2)
For the Three Months Ended March 31, 2026 and 2025 (In Millions)
Reconciliation of Income, Net of Tax to Adjusted Segment EBITDA
Three Months Ended March 31,
Sales
2026
2025
2026
2025
Net income
$
27.4 $
24.5
Sealing Technologies
$ 199.0
$ 179.6
Income tax expense
(6.5)
(7.8)
Advanced Surface Technologies
104.2
93.8
Income before income taxes
33.9
32.3
303.2
273.4
Acquisition expenses
1.0
0.2
Less: intersegment sales
(0.2)
(0.2)
Amortization of the fair value adjustment to acquisition date inventory
3.2
-
$ 303.0
$ 273.2
Restructuring expense
-
0.7
Depreciation and amortization expense
27.5
25.2
Net income
$ 27.4
$ 24.5
Corporate expenses
13.7
11.3
Interest expense, net
8.8
8.0
Earnings before interest, income taxes, depreciation,
Other expense
0.8
1.5
amortization and other selected items (Adjusted Segment EBITDA)
Adjusted Segment EBITDA $ 88.9 $ 79.2
2026
2025
Sealing Technologies $ 64.6 $ 58.7
Advanced Surface Technologies
24.3
20.5
$ 88.9
$ 79.2
Adjusted Segment EBITDA Margin
2026
2025
Sealing Technologies
32.5 %
32.7 %
Advanced Surface Technologies
23.3 %
21.9 %
29.3 %
29.0 %
Adjusted segment EBITDA is total segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition expenses, restructuring and impairment expense, amortization of the fair value adjustment to acquisition date inventory, and depreciation and amortization.
Corporate expenses include general corporate administrative costs. Corporate expenses also include $1.2 million of restructuring expense for the three months ended March 31, 2026. Non-operating expenses not directly attributable to the segments, corporate expenses, net interest expense, and income taxes are not included in the computation of adjusted segment EBITDA. The accounting policies of the reportable segments are the same as those for the Company.
Segment Information (2/2)
For the Three Months Ended March 31, 2026 and 2025 (In Millions)
Sealing Technologies
2026
Advanced Surface Technologies
Total Segments
Sealing Technologies
2025
Advanced Surface Technologies
Total Segments
Acquisition expenses $ 1.0 $ - $ 1.0
Amortization of the fair value adjustment to acquisition date inventory $ 3.2 $ - $ 3.2
Depreciation and amortization expense $ 11.2 $ 16.3 $ 27.5
Acquisition expenses $ 0.2 $ - $ 0.2
Restructuring expense $ - $ 0.7 $ 0.7
Depreciation and amortization expense $ 8.2 $ 17.0 $ 25.2
Consolidated Adjusted Net Income
(In Millions, Except Per Share Data) Three Months Ended March 31,
2026 2025
Average common Average common
$
shares outstanding, diluted
Per
Share
$
shared outstanding, diluted
Per
Share
Net income
$
27.4 21.3
$ 1.29
$
24.5 21.2
$ 1.15
Income tax expense
6.5
7.8
Income before income taxes
33.9
32.3
Adjustments from selling, general, and administrative:
Acquisition expenses
1.0
0.2
Amortization of acquisition-related intangible assets
20.6
19.1
Adjustments from other operating expense and cost of sales:
Restructuring expense
1.2
0.6
Amortization of the fair value adjustment to acquisition date inventory
3.2
-
Costs associated with previously disposed businesses
0.6
0.3
Pension expense - non-service cost
0.1
0.8
Other adjustments:
Other
0.2
0.4
Adjusted income before income taxes
60.8
53.7
Adjusted income tax expense (15.2) (13.4)
Adjusted net income $ 45.6 21.3 $ 2.14 1 $ 40.3 21.2 $ 1.90 1
Management of the Company believes that it would be helpful to the readers of the financial statements to understand the impact of certain selected items on the Company's reported income and diluted earnings per share, including items that may recur from time to time. The items adjusted for in this schedule are those that are excluded by management in budgeting or projecting for performance in future periods, as they typically relate to events specific to the period in which they occur. This presentation enables readers to better compare Enpro Inc. to other diversified industrial technology companies that do not incur the sporadic impact of restructuring activities, costs associated with previously disposed of businesses, acquisitions, or other selected items.
Management acknowledges that there are many items that impact a company's reported results and this list is not intended to present all items that may have impacted these results.
Other adjustments are included in selling, general, and administrative, cost of sales, and other operating expenses on the consolidated statements of operations.
The adjusted income tax expense presented above is calculated using a normalized company-wide effective tax rate excluding discrete items of 25.0%. Per share amounts were calculated by dividing by the weighted-average shares of diluted common stock outstanding during the periods.
1Adjusted diluted earnings per share, which amounts were calculated by dividing by the weighted-average shares of diluted common stock outstanding during the periods.
Free Cash Flow
(In Millions)
Free Cash Flow - Three Months Ended March 31, 2026
Net cash provided by operating activities
$
39.6
Purchases of property, plant, and equipment
(12.2)
Payments for capitalized internal-use software
(0.9)
$
26.5
Free Cash Flow - Three Months Ended March 31, 2025
Net cash provided by operating activities
$
21.0
Purchases of property, plant, and equipment
(8.0)
Payments for capitalized internal-use software
(1.4)
$
11.6
Disclaimer
EnPro Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 14:50 UTC.