Core Insights - Enpro reported a strong finish to 2025 with double-digit revenue growth and robust profitability, driven by performance in Sealing Technologies and sales improvement in Advanced Surface Technologies [1][2] Financial Performance Fourth Quarter 2025 Results - Adjusted diluted earnings per share increased 26.8% to $1.99 compared to $1.57 in the prior year [1] - Sales reached $295.4 million, a 14.3% increase, with organic sales growing 9.9% [1][2] - Adjusted EBITDA rose 19.2% to $69.4 million [1] - GAAP net loss was $32.0 million, influenced by a $67.2 million pension plan termination loss [1][2] Full Year 2025 Results - Adjusted diluted earnings per share increased 13.6% to $7.91 from $6.96 [1] - Total sales were $1.14 billion, up 9.0%, with organic sales increasing 7.6% [1][2] - Adjusted EBITDA for the year was $277.6 million, an 8.9% increase [1] Segment Performance Sealing Technologies - Sales increased 14.8% to $187.1 million in Q4 2025, with adjusted segment EBITDA rising 21.1% [2] - The segment benefited from improved volume and strategic pricing initiatives [2] Advanced Surface Technologies - Sales grew 13.4% to $108.4 million in Q4 2025, with adjusted segment EBITDA increasing 3.3% [2] - Growth was driven by demand in precision cleaning solutions and optical coatings [2] Guidance for 2026 - Enpro expects total revenue growth in the range of 8% to 12% for 2026 [1][2] - Adjusted EBITDA is projected to be between $305 million and $320 million, with adjusted diluted earnings per share anticipated to be between $8.50 and $9.20 [1][2] Balance Sheet and Cash Flow - The company generated $201.2 million in cash flow from operations, a 24% increase from the previous year [2] - Free cash flow rose 18% to $153.1 million [2] - Enpro ended 2025 with cash of $114.7 million and approximately $580 million available under its revolving credit facility [2] Dividend Information - Enpro declared a quarterly dividend of $0.32 per share, marking a 3.2% increase from the previous quarter [2]

Core Viewpoint - Enpro Inc. has announced a quarterly dividend increase to $0.32 per share, reflecting a 3.2% rise from the previous dividend of $0.31 per share, marking the eleventh consecutive year of dividend increases since 2015 [1]. Group 1: Dividend Announcement - The declared quarterly dividend is $0.32 per share, payable on March 18, 2026, to shareholders of record as of March 4, 2026 [1]. - The increase in dividend is attributed to the strength of the company's balance sheet, consistent cash generation, and a positive long-term outlook [1]. Group 2: Company Overview - Enpro Inc. is a leading industrial technology company focused on critical applications across various end-markets, including semiconductor, industrial process, commercial vehicle, sustainable power generation, aerospace, food and biopharma, photonics, and life sciences [1]. - The company is headquartered in Charlotte, North Carolina, and is listed on the New York Stock Exchange under the symbol "NPO" [1].

Core Viewpoint - Enpro Inc. will announce its financial results for the fourth quarter and the year ended December 31, 2025, on February 18, 2026, at 6:30 a.m. Eastern Time, followed by a conference call at 8:30 a.m. to discuss performance [1]. Group 1 - The conference call will be accessible via a live webcast and telephone, with details provided for access [2]. - Financial results and a slide presentation will be available on the company's website following the announcement [2]. Group 2 - Enpro is a leading industrial technology company involved in critical applications across various end-markets, including semiconductor, industrial process, commercial vehicle, sustainable power generation, aerospace, food and biopharma, photonics, and life sciences [3]. - The company is headquartered in Charlotte, North Carolina, and is listed on the New York Stock Exchange under the symbol "NPO" [3].

Core Viewpoint - The comparison between V2X (VVX) and Enpro (NPO) indicates that VVX is currently the more attractive option for value investors based on various financial metrics and an improving earnings outlook [1][7]. Valuation Metrics - VVX has a forward P/E ratio of 12.11, significantly lower than NPO's forward P/E of 27.36, suggesting VVX is undervalued relative to NPO [5]. - The PEG ratio for VVX is 0.61, indicating a favorable valuation when considering expected earnings growth, while NPO's PEG ratio stands at 1.82 [5]. - VVX's P/B ratio is 2, compared to NPO's P/B of 3.32, further supporting the argument that VVX is a better value investment [6]. Earnings Outlook - VVX is currently experiencing an improving earnings outlook, which is a positive indicator in the Zacks Rank model, contrasting with NPO's less favorable position [3][7]. - The Zacks Rank for VVX is 2 (Buy), while NPO holds a 3 (Hold) rating, reflecting a stronger earnings estimate revision trend for VVX [3]. Value Grades - VVX has received a Value grade of A, while NPO has a Value grade of C, highlighting the relative attractiveness of VVX for value investors [6].

Company Overview - Enpro Industries provides engineered components and materials for critical applications in global industrial and technology sectors [1][9] - The company operates at scale with a diversified portfolio in the industrials sector, leveraging advanced engineering and manufacturing capabilities [6] Financial Performance - Enpro reported a total revenue of $1.11 billion and a net income of $86.40 million for the trailing twelve months (TTM) [4] - The company's stock price as of January 26 was $237.13, reflecting a 34.2% increase over the past year, outperforming the S&P 500 by 19.14 percentage points [3][4] Recent Transactions - Tributary Capital Management sold 31,471 shares of Enpro in the fourth quarter, valued at approximately $6.96 million, leading to a decrease in the fund's position value by $8.64 million from the prior quarter [2][3] - Following the sale, Enpro represented 2.71% of the fund's 13F assets under management (AUM) [3][8] Market Position and Strategy - Enpro's primary customers include businesses in the chemical, pharmaceutical, semiconductor, aerospace, defense, power generation, and general industrial sectors [9] - The company is transitioning toward more resilient, technology-driven end markets while maintaining solid margins and cash generation [12] Growth and Outlook - Enpro's third-quarter sales rose by 9.9% to $286.6 million, with adjusted EBITDA climbing to $69.3 million and adjusted EPS reaching $1.99 [10] - Management has raised full-year guidance and is committed to its Enpro 3.0 strategy, supported by approximately $280 million in two strategic acquisitions [10]

Group 1 - Gabelli Funds, LLC will host the 36th Annual Pump, Valve, & Water Systems Symposium on February 26, 2026, in New York, NY [1] - The symposium will focus on discussions related to critical infrastructure, aerospace and defense, machine tools, and the oil and gas industry [2] - Attendees will have opportunities for one-on-one meetings with management from participating companies [2] Group 2 - Participating companies include AMETEK, Graco, Badger Meter, ITT, Crane, Landis+Gyr, Enpro, Mueller Water Products, Flowserve, Oil States International, Franklin Electric, and Watts Water Technologies [2] - A lunch presentation will be given by Robert Powelson, President & CEO of the National Association of Water Companies [3]

Core Insights - The article compares two companies, JBT Marel (JBTM) and Enpro (NPO), to determine which is a better option for investors seeking undervalued stocks [1] Valuation Metrics - JBTM has a forward P/E ratio of 24.66, while NPO has a forward P/E of 27.91, indicating that JBTM may be more attractively priced [5] - JBTM's PEG ratio is 1.79, compared to NPO's PEG ratio of 1.86, suggesting JBTM offers better value relative to its expected earnings growth [5] - JBTM has a P/B ratio of 1.8, while NPO's P/B ratio is 3.03, further indicating that JBTM is undervalued compared to NPO [6] Analyst Outlook - JBTM holds a Zacks Rank of 2 (Buy), indicating a more favorable analyst outlook due to stronger earnings estimate revision activity compared to NPO, which has a Zacks Rank of 3 (Hold) [3][7] - The Value grade for JBTM is B, while NPO has a Value grade of C, reinforcing the notion that JBTM is the superior option for value investors at this time [6][7]

Core Points - Enpro Inc. has completed the acquisition of AlpHa Measurement Solutions, which was previously announced [1] Company Summary - The acquisition is part of Enpro Inc.'s strategy to enhance its capabilities and expand its market presence [1]

Core Insights - Ingram Micro (INGM) is currently viewed as a more attractive investment compared to Enpro (NPO) based on valuation metrics and earnings outlook [3][7] Valuation Metrics - INGM has a forward P/E ratio of 8.00, significantly lower than NPO's forward P/E of 30.41, indicating that INGM may be undervalued [5] - The PEG ratio for INGM is 0.89, while NPO's PEG ratio stands at 2.34, suggesting that INGM offers better value relative to its expected earnings growth [5] - INGM's P/B ratio is 1.3, compared to NPO's P/B of 3.29, further supporting the notion that INGM is a more favorable investment option [6] Analyst Outlook - INGM has a Zacks Rank of 2 (Buy), reflecting an improving earnings estimate revision activity, while NPO holds a Zacks Rank of 3 (Hold) [3][7] - The positive earnings outlook for INGM enhances its attractiveness as a value investment [7]

Financial Performance - Net sales for Q3 2025 were $286.6 million, a 9.9% increase from $260.9 million in Q3 2024[133] - Net income for Q3 2025 was $21.6 million, compared to $19.8 million in Q3 2024, reflecting a 9.1% growth[133] - Adjusted diluted earnings per share for Q3 2025 increased to $1.99, up from $1.74 in Q3 2024, representing a 14.4% rise[133] - Total adjusted segment EBITDA for Q3 2025 was $79.2 million, a 6.6% increase from $74.3 million in Q3 2024[135] - Adjusted Segment EBITDA for the third quarter of 2025 was $57.4 million, a 4.2% increase from $55.1 million in the same quarter of 2024, with a margin of 32.2%[140] - Adjusted net income for the quarter ended September 30, 2025, was $42.4 million, or $1.99 per diluted share, compared to $36.7 million, or $1.74 per diluted share for the same period in 2024[181] - For the nine months ended September 30, 2025, adjusted net income was $125.8 million, or $5.92 per diluted share, compared to $113.7 million, or $5.39 per diluted share for the same period in 2024[182] - Adjusted EBITDA for Q3 2025 reached $69.3 million, up 8.1% from $64.1 million in Q3 2024[183] - Adjusted EBITDA for the nine months ended September 30, 2025, was $208.3 million, an increase of 5.9% from $196.6 million in the same period of 2024[183] Segment Performance - The Sealing Technologies segment reported sales of $178.2 million in Q3 2025, up from $168.6 million in Q3 2024, a growth of 9.5%[135] - The Advanced Surface Technologies segment achieved sales of $108.5 million in Q3 2025, compared to $92.5 million in Q3 2024, marking a 17.3% increase[135] - Sealing Technologies segment sales increased to $178.2 million, up 5.7% from $168.6 million year-over-year, driven by strong demand in aerospace and food and pharmaceuticals[139] - Advanced Surface Technologies segment sales rose 17.3% to $108.5 million, compared to $92.5 million in the prior year, fueled by growth in precision cleaning solutions and semiconductor tools[141] Cash Flow and Backlog - Operating activities generated $138.5 million in cash for the first nine months of 2025, up from $103.5 million in the same period of 2024[159] - As of September 30, 2025, the backlog of remaining performance obligations was $249.4 million, with approximately 96% expected to be satisfied within one year[156] Acquisitions and Strategic Initiatives - Enpro acquired Advanced Micro Instruments, Inc. on January 29, 2024, enhancing its capabilities in application-specific analyzers and sensing technologies[131] - Subsequent to September 30, 2025, Enpro announced acquisitions of Overlook Industries, Inc. and AlpHa Measurement Holdings, LLC for approximately $280 million in cash[132] - Enpro's strategic initiatives have focused on high-margin, proprietary industrial technology-related products with strong cash flow and recurring revenue[126] Debt and Financing - Enpro Inc. completed the offering of $450 million in aggregate principal amount of 6.125% Senior Notes due 2033, with interest payable semi-annually starting December 1, 2025[169] - The maximum consolidated total net leverage ratio is set at 4.0 to 1.0, which can be increased to 4.5 to 1.0 for four quarters following a significant acquisition[166] - The company has a minimum consolidated interest coverage ratio requirement of at least 2.5 to 1.0[166] - The company applied a portion of the net proceeds from the Senior Notes to redeem all outstanding 5.75% Senior Notes due 2026, totaling $350 million[172] Tax and Expenses - The effective tax rate for the first nine months of 2025 was 27.4%, compared to 21.0% in the same period of 2024, primarily due to higher tax rates in foreign jurisdictions[154] - Interest expense decreased to $6.4 million in Q3 2025 from $9.0 million in Q3 2024, reflecting a reduction of 29%[183] - Income tax expense increased significantly to $10.5 million in Q3 2025, compared to $4.2 million in Q3 2024, marking a 150% rise[183] - The company recorded a restructuring and impairment expense of $0.4 million in Q3 2025, down from $4.5 million in Q3 2024[183] Foreign Exchange and Commodity Risks - The company has a notional amount of $103.7 million in foreign exchange contracts as of December 31, 2024, related to a 95 million Euro exposure[185] - Cross-currency swap agreements with a notional amount of $100 million were established to manage foreign currency risk, maturing on October 15, 2026[187] - Commodity price fluctuations for materials like steel and copper could negatively impact results, with no hedging strategies in place for commodity risk[189] - The company aims to control foreign currency risks through normal operating activities and derivative instruments[185] Shareholder Actions - A share repurchase program was authorized for up to $50.0 million, which may be executed in open market and privately negotiated transactions[173]