EnPro Industries(NPO) - 2024 Q4 - Annual Report

Sales and Revenue - Total third-party sales for the year ended December 31, 2024, were $1,048.7 million, with the semiconductor market contributing 31.0$324.7 million[30]. - The Sealing Technologies segment generated approximately two-thirds of its total revenue from aftermarket or recurring revenue[33]. - The order backlog as of December 31, 2024, was valued at $240.6 million, an increase from$225.4 million at December 31, 2023, with $122.7 million related to Sealing Technologies and$117.9 million to Advanced Surface Technologies[54]. - Approximately 42% of Sealing Technologies segment sales in 2024 were delivered to customers outside the United States[41]. - Advanced Surface Technologies segment sales included approximately 45% delivered to customers outside the United States in 2024[49]. - The Sealing Technologies segment serves a variety of markets, including aerospace, oil and gas, and food and pharmaceutical, with general industrial being the largest at 18.7% of total sales[30]. - The Advanced Surface Technologies segment includes four operating businesses focused on high-growth markets, such as semiconductor manufacturing and life sciences[44]. Quality and Certification - As of December 31, 2024, 26 manufacturing and service facilities were ISO 9001 certified, ensuring high-quality standards[57]. - The company achieved third-party certification for three major manufacturing locations under ISO 45001, promoting continuous improvement in health and safety management[63]. Employee and Culture - The company employs approximately 3,500 employees, with 65% located in North America[60]. - In 2024, the company enhanced performance management processes, focusing on manager engagement and employee ownership, with training sessions conducted enterprise-wide[62]. - The company maintains a company-wide minimum wage of $17 per hour and offers a comprehensive benefits program, including a 401k plan with above-market company match[65]. - Employee retention rates are at or above market level, attributed to the company’s culture and focus on employee well-being[68]. Research and Development - Research and development efforts are focused on creating breakthrough products and solutions for demanding environments, particularly in semiconductor manufacturing[52]. Financial Obligations and Risk Management - As of December 31, 2024, the company had$291.4 million outstanding on the Amended Credit Agreement with a variable interest rate, affecting interest expense and cash flows[252]. - The company entered into a forward contract to hedge a €95 million exposure related to intercompany loans, expected to be resolved in 2025[253]. - The company’s fixed-rate debt obligations totaled $350.9 million as of December 31, 2024, with an average interest rate of 5.8$103.7 million as of December 31, 2024[253]. Community Engagement - The company has contributed $2.25 million to the Enpro Foundation since 2020, with$1.1 million in donations to charitable organizations nominated by employees[69]. Health and Safety Initiatives - The company plans to apply an AI tool in 2025 to analyze work tasks and reduce ergonomic injuries, which are a top risk[64].