10-Q · May 5, 2026
Enpro Inc. reported Q1 2026 results with revenue of $303 million, a notable increase of 10.9% year-over-year. Net income rose to $27.4 million, or $1.29 per share, reflecting continued growth despite missing the EPS…
Earnings analysis · 10-Q
NPO earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Enpro posted Q2 revenue of $338.8 million, up 17.6% year over year and 11.8% sequentially, led by 21.8% AST growth and significant AST margin expansion. GAAP EPS increased modestly to $1.27 from $1.25, but a $16.1…
Read full summary
Enpro posted Q2 revenue of $338.8 million, up 17.6% year over year and 11.8% sequentially, led by 21.8% AST growth and significant AST margin expansion. GAAP EPS increased modestly to $1.27 from $1.25, but a $16.1 million environmental reserve adjustment obscured underlying profitability; adjusted EPS rose to $2.50 from $2.03. First-half operating cash flow improved to $90.9 million, while the filing provides no quantitative outlook.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $1.27
What stood out
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Revenue accelerated to $338.8M
Q2 net sales reached $338.8 million, up 17.6% from $288.1 million in Q2 2025 and 11.8% from $303.0 million in Q1 2026. Growth comprised 10.9% organic growth, 5.7% acquisitions, and 1.0% favorable foreign currency.
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Adjusted EPS rose despite reserve charge
GAAP diluted EPS was $1.27 versus $1.25 a year ago, while adjusted diluted EPS increased to $2.50 from $2.03. The GAAP EPS result was slightly below Q1 2026 EPS of $1.29, principally amid a $16.1 million environmental reserve adjustment.
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AST delivered strong growth and margin expansion
AST sales increased $22.0 million to $122.9 million, and adjusted segment EBITDA rose 48.5% to $29.4 million. Segment adjusted EBITDA margin expanded 430 basis points to 23.9%, driven by precision-cleaning, semiconductor-tool/assembly, and optical-coating demand.
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Sealing grew with acquisition and pricing support
Sealing Technologies sales rose 15.3% to $216.2 million, including $16.4 million from Q4 2025 acquisitions and $9.4 million of organic growth. Pricing and mix contributed $6.4 million.
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Operating cash generation improved
First-half operating cash flow increased 24.2% to $90.9 million from $73.2 million. The company attributed the improvement to higher adjusted net income and lower cash tax payments.
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Substantial revolver capacity remains
Liquidity remains ample: cash and cash equivalents were $77.0 million and revolver availability was $660.2 million at June 30, 2026, after $130.0 million of revolver borrowings and $9.8 million of letters of credit.
What to watch
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Environmental reserve materially constrained GAAP profit
A $16.1 million environmental reserve adjustment drove other expense higher and limited Q2 GAAP net income to $27.1 million, despite adjusted net income of $53.5 million.
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Sealing margin and end-market demand pressures
Sealing adjusted EBITDA margin declined 60 basis points to 33.2% from 33.8%, as $2.9 million of higher headcount and personnel costs partially offset pricing and volume gains. Management also cited continued commercial-vehicle OEM weakness and slow European industrial and food/biopharma demand.
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New geopolitical and supply-chain risk-factor update
The risk-factor update identifies the conflict that began in February 2026 involving the U.S., Israel, and Iran. Management cites potential disruption to energy, petroleum-based products and helium supply, a critical semiconductor raw material, while stating indirect effects could be material.
Management's outlook
The 10-Q MD&A does not provide a quantitative revenue or EPS outlook; outlook was deferred outside this filing.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.