Investors with an interest in Technology Services stocks have likely encountered both JBT Marel (JBTM) and Enpro (NPO) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision t ...

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Enpro (NPO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.Enpro is a member of our Business Services group, which includes 237 different companies and ...

Financial Performance - Total third-party sales for the year ended December 31, 2025, were $1,143.3 million, with the semiconductor market contributing $367.1 million, representing 32.1% of total sales[32]. - The company’s fixed rate debt obligations as of December 31, 2025, totaled $450.7 million, with an average interest rate of 6.1%[256]. Order Backlog - The order backlog as of December 31, 2025, was valued at $256.7 million, an increase from $240.6 million at December 31, 2024, with $126.2 million related to Sealing Technologies and $130.6 million to Advanced Surface Technologies[60]. Sales Distribution - Approximately 41% of Sealing Technologies segment sales in 2025 were delivered to customers outside the United States[46]. - Advanced Surface Technologies segment sales included approximately 48% delivered to customers outside the United States in 2025[54]. Segments and Operations - The Sealing Technologies segment generates approximately two-thirds of its total revenue from aftermarket or recurring revenue[35]. - The Sealing Technologies segment includes three operating divisions: Garlock, Technetics, and STEMCO, focusing on critical environments and safety[33]. - The Advanced Surface Technologies segment applies proprietary technologies to deliver products for high-growth markets, including semiconductor manufacturing and life sciences[49]. Research and Development - Research and development efforts are directed towards developing new solutions for demanding environments and advancing technology for semiconductor manufacturing equipment[59]. Quality Assurance - As of December 31, 2025, 29 manufacturing and service facilities were ISO 9001 certified, and four facilities were ISO 14001 certified, indicating a strong commitment to quality assurance[62]. Workforce and Employee Development - As of December 31, 2025, the company had approximately 4,000 employees, with 63% in North America, 27% in Asia Pacific, and 10% in Europe[65]. - The company launched "Enpro 3.0" in Q1 2025, a multi-year transformation initiative aimed at driving long-term profitable growth and enhancing employee development[67]. - The company maintains a dual-bottom line philosophy, emphasizing both financial results and human development[67]. - The company has improved its employee benefits programs, including a minimum wage of $17 per hour and enhanced healthcare benefits[73]. - The company has implemented an AI-based ergonomic assessment tool to reduce ergonomic-related injuries across its facilities[71]. Safety Performance - In 2025, the company achieved an OSHA recordable injury case rate of 0.64 and a lost time injury case rate of 0.09, representing improvements of 33% and 70% compared to 2024 rates[69]. Community Engagement - The company has contributed $2.25 million to the Enpro Foundation since its formation in 2020, with $1.6 million in donations made to charitable organizations[78]. Labor Relations - The company’s collective bargaining agreement at the Garlock facility expired on February 15, 2026, leading to a work stoppage pending negotiations[65]. Financial Instruments - The company entered into a forward contract to hedge a €95 million exposure related to an intercompany note agreement, with notional amounts of $103.7 million and $110.5 million as of December 31, 2024 and 2023, respectively[257].

Enpro (NPO) reported $295.4 million in revenue for the quarter ended December 2025, representing a year-over-year increase of 14.3%. EPS of $1.99 for the same period compares to $1.57 a year ago.The reported revenue represents a surprise of +5.31% over the Zacks Consensus Estimate of $280.5 million. With the consensus EPS estimate being $1.91, the EPS surprise was +4.01%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

Financial Data and Key Metrics Changes - Enpro's total sales increased by 9% to $1.14 billion in 2025, driven by strong performance in aerospace, food and biopharma, and semiconductor markets [5][12] - Adjusted EBITDA for the fourth quarter was $69.4 million, up 19.2%, with an adjusted EBITDA margin of 23.5%, an increase of 100 basis points [14] - Adjusted diluted earnings per share rose nearly 27% to $1.99 compared to the prior year period [14] Business Line Data and Key Metrics Changes - Sealing Technologies sales increased by almost 15% to $187.1 million in the fourth quarter, with organic sales up nearly 8% year-over-year [15] - Advanced Surface Technologies (AST) sales grew by 13.4% to $108.4 million, with continued strength in precision cleaning solutions [16] - Adjusted segment EBITDA margin for Sealing Technologies expanded to 32.8%, while AST maintained a margin above 20% [16][17] Market Data and Key Metrics Changes - The aerospace and food and biopharma markets showed healthy demand, while commercial vehicle OEM demand remained weak [15][38] - The overall industrial business is strong, with order demand remaining robust across various sectors [38] Company Strategy and Development Direction - Enpro's strategy focuses on organic growth of mid- to high single digits through 2030, with a commitment to strategic acquisitions that enhance capabilities [4][10] - The company aims to maintain premium profitability and return levels while investing in growth and efficiency projects [3][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2026, anticipating improved order flow and recovery in semiconductor capital equipment spending [9][21] - The company remains well-positioned to participate in a stronger semiconductor market and expects to leverage recent investments for growth [9][23] Other Important Information - Enpro generated over $150 million in free cash flow in 2025, up 18% from the previous year [19] - The company recorded its best safety statistics ever in 2025, with a total recordable incident rate of 0.64 [25][26] - A quarterly dividend increase to $0.32 per share was approved, marking the eleventh consecutive annual increase since 2015 [20] Q&A Session Summary Question: Can you provide more detail on AST's margin expectations for the first and second halves of the year? - Management indicated that the second half is expected to be considerably stronger, with growth rates accelerating and margins improving as growth programs contribute [34][35] Question: What are the current order patterns and customer sentiments? - Management noted that order patterns are improving, with customers showing increased confidence and order rates returning to previous levels [35][38] Question: How did the fourth quarter performance compare to previous guidance? - Sales were at the higher end of expectations, while margins were slightly impacted by increased corporate expenses and medical costs [43] Question: What is the outlook for free cash flow conversion in 2026? - Management expects strong free cash flow conversion to remain around 100% of adjusted EPS, despite higher capital expenditures [46][47] Question: Has the focus on M&A shifted? - The company continues to pursue strategic acquisitions aggressively, maintaining a strong pipeline of potential targets [50][51]

Financial Data and Key Metrics Changes - Enpro reported a 9% increase in sales for 2025, reaching $1.14 billion, driven by strength in aerospace, food and biopharma, and semiconductor markets [5][12] - Adjusted EBITDA for the fourth quarter was $69.4 million, up 19.2%, with an Adjusted EBITDA margin of 23.5%, an increase of 100 basis points [14] - Adjusted diluted earnings per share increased nearly 27% to $1.99 compared to the prior year period [14] Business Line Data and Key Metrics Changes - Sealing Technologies sales increased almost 15% in the fourth quarter to $187.1 million, with organic sales up nearly 8% year-over-year [15] - Advanced Surface Technologies (AST) sales increased 13.4% to $108.4 million, with continued strength in precision cleaning solutions [16] - Adjusted segment EBITDA margin for Sealing Technologies expanded 180 basis points to 32.8% [15] Market Data and Key Metrics Changes - The aerospace and food and biopharma markets showed healthy demand, while commercial vehicle OEM demand remained weak [15][38] - The semiconductor capital equipment market is expected to recover in the second half of 2026, with improved order patterns noted [9][23] Company Strategy and Development Direction - Enpro's strategy, Enpro 3.0, aims for mid- to high single-digit organic growth through 2030, focusing on growth and efficiency projects [4][10] - The company plans to allocate two-thirds of capital expenditures towards growth initiatives and strategic acquisitions [3][10] - Enpro is committed to maintaining premium profitability and strong returns on invested capital [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate robust free cash flow and maintain a strong balance sheet despite recent acquisitions [9][19] - The outlook for 2026 includes total sales growth of 8%-12%, with Adjusted EBITDA expected to be in the range of $305 million-$320 million [21] - Management noted that while commercial vehicle OEM demand is expected to remain flat, aftermarket drivers in that market are stable [22][38] Other Important Information - Enpro recorded its best safety statistics ever in 2025, with a total recordable incident rate of 0.64 [25][26] - The company has expanded its revolving credit facility to $800 million, maintaining over $580 million in available capacity [20] Q&A Session Summary Question: Can you provide more detail on AST's margin expectations for the first and second half of the year? - Management indicated that the second half is expected to be considerably stronger than the first half, with growth programs starting to contribute significantly [33][34] Question: What are the current order patterns and customer sentiments? - Management noted that order patterns are improving, with customers showing increased excitement in placing orders, particularly in the semiconductor sector [35][37] Question: How did the fourth quarter performance compare to previous guidance? - Management stated that sales were at the higher end of expectations, while margins were slightly softer due to increased corporate expenses [42][43] Question: What is the outlook for cash conversion in 2026 given the higher CapEx? - Management expects strong free cash flow conversion to remain around 100% of Adjusted EPS, despite higher interest expenses due to recent acquisitions [46][47] Question: Has the focus on M&A shifted? - Management confirmed that the focus remains aggressive on M&A, with a disciplined approach to pursuing strategic opportunities [50][51]

Financial Data and Key Metrics Changes - Enpro reported a 9% increase in sales for 2025, reaching $1.14 billion, driven by strong performance in aerospace, food and biopharma, and semiconductor markets [5][12] - Adjusted EBITDA for Q4 2025 was $69.4 million, up 19.2%, with an adjusted EBITDA margin of 23.5%, an increase of 100 basis points [13] - Adjusted diluted earnings per share for Q4 2025 increased nearly 27% to $1.99, primarily due to higher adjusted EBITDA and lower interest expenses [13] Business Line Data and Key Metrics Changes - Sealing Technologies sales increased almost 15% in Q4 2025 to $187.1 million, with organic sales up nearly 8% year-over-year [14] - Advanced Surface Technologies (AST) sales rose 13.4% to $108.4 million in Q4 2025, driven by strength in precision cleaning solutions [15] - Adjusted segment EBITDA margin for Sealing Technologies expanded 180 basis points to 32.8%, while AST maintained a margin above 20% [15][16] Market Data and Key Metrics Changes - The aerospace and food and biopharma markets showed strong demand, while commercial vehicle OEM demand remained weak [14][38] - The semiconductor capital equipment market is expected to recover in the second half of 2026, with improved order flow anticipated [9][23] Company Strategy and Development Direction - Enpro's strategy focuses on organic growth of mid- to high single digits through 2030, with a commitment to strategic acquisitions that enhance capabilities [4][10] - The company aims to maintain premium profitability and return levels, with a focus on leveraging engineering expertise and applied capabilities [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong free cash flow and maintain a robust balance sheet despite recent acquisitions [9][19] - The outlook for 2026 includes total sales growth of 8%-12%, with expectations for adjusted EBITDA between $305 million and $320 million [20][21] Other Important Information - Enpro recorded its best safety statistics in 2025, with a total recordable incident rate of 0.64 and a lost time case rate of 0.09 [25] - The company plans to increase its quarterly dividend to $0.32 per share, marking the eleventh consecutive annual increase since initiating dividends in 2015 [19] Q&A Session Summary Question: Can you provide more detail on AST's margin expectations for the first and second halves of the year? - Management indicated that the second half is expected to be considerably stronger, with growth rates accelerating and margins improving as new growth programs contribute [34][35] Question: How did the last couple of months of the year compare to your November guidance? - Sales were at the higher end of expectations, while margins were slightly softer due to increased corporate expenses, particularly in medical costs [42][43] Question: What is the outlook for cash conversion in 2026 given the higher CapEx? - Management expects strong free cash flow conversion to remain around 100% of adjusted EPS, despite higher interest expenses due to recent acquisitions [46][47] Question: Has the focus on M&A shifted at all? - No, the company continues to pursue strategic acquisitions aggressively, maintaining a strong pipeline of potential targets [48][50] Question: How are the newly acquired businesses performing? - Both Alpha and Overlook are exceeding expectations with strong backlogs and order rates, contributing positively to the Sealing Technologies segment [57][58]

Core Viewpoint - Enpro (NPO) reported quarterly earnings of $1.99 per share, exceeding the Zacks Consensus Estimate of $1.91 per share, and showing an increase from $1.57 per share a year ago, indicating a positive earnings surprise of +4.01% [1] Financial Performance - Enpro achieved revenues of $295.4 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 5.31%, and up from $258.4 million in the same quarter last year [2] - The company has exceeded consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times in the same period [2] Stock Performance - Enpro shares have increased approximately 25.8% since the beginning of the year, contrasting with the S&P 500's zero return [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $2.08 for the coming quarter and $8.77 for the current fiscal year [7] - The Zacks Rank for Enpro is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Technology Services industry, to which Enpro belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Statements in this presentation that express a belief, expectation, or intention, including 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 co ...

Exhibit 99.1 News Release Enpro Reports Fourth Quarter and Full-Year 2025 Results, Introduces 2026 Guidance Fourth Quarter 2025 Results (All results reflect comparisons to the respective prior-year period unless otherwise noted) Full Year 2025 Results 2026 Guidance CHARLOTTE, N.C., February 18, 2026 -- Enpro Inc. (NYSE: NPO) today announced its financial results for the fourth quarter and year ended December 31, 2025. "Enpro delivered a strong finish to 2025 with double-digit revenue growth and robust profi ...