Key Highlights

  • Adjusted diluted EPS of USD 2.66 rose from USD 1.99 and topped the consensus estimate of USD 2.42.
  • Sales of USD 350.8 million rose 22.4% and exceeded the consensus estimate of USD 334.04 million.
  • Advanced Surface Technologies sales rose 25.8%, while its adjusted segment EBITDA climbed 57.3% to USD 34.3 million.
  • Long-term Debt fell to USD 520.5 million from USD 655.1 million at year end 2025.

Enpro Inc. (NYSE:NPO) reported third quarter 2026 sales of USD 350.8 million, up 22.4% from USD 286.6 million a year earlier and above a consensus estimate of USD 334.04 million. Adjusted diluted EPS, a non-GAAP measure, was USD 2.66 against USD 1.99 and a consensus estimate of USD 2.42, while GAAP diluted EPS rose to USD 1.88 from USD 1.01. Net Income reached USD 40.3 million versus USD 21.6 million, and adjusted EBITDA rose to USD 91.3 million from USD 69.3 million. Gross Profit increased to USD 153.2 million from USD 120.2 million, lifting gross Margin to about 43.7% from about 41.9%, and Operating Income rose to USD 63.3 million from USD 40.9 million.

Segment Drivers Behind the Gain

Sealing Technologies sales rose 20.5% to USD 214.7 million, or 11.6% excluding currency and USD 15.1 million from acquisitions completed in the fourth quarter of 2025. Pricing and mix contributed USD 6.0 million, and strength in space, general industrial and compositional analysis applications more than offset softness in European biopharmaceutical Demand and the timing of power generation deliveries. Segment adjusted EBITDA rose 21.8% to USD 69.9 million at a 32.6% margin. Advanced Surface Technologies sales rose 25.8% to USD 136.5 million on precision cleaning solutions, in-chamber semiconductor tools and assemblies, and coatings, while its margin improved 500 basis points. That segment absorbed USD 4.9 million of added personnel and qualification costs for new platforms and USD 2.0 million of higher incentive compensation accruals. Corporate expenses rose to USD 13.5 million from USD 10.2 million.

Balance Sheet, Dividend and Capital Allocation

Operating activities provided USD 172.8 million of cash in the first nine months against USD 138.5 million a year earlier, helped by higher adjusted segment EBITDA and lower net tax payments. The company repaid USD 135.2 million of debt over the period and said it is pursuing Acquisition opportunities. The board declared a dividend of USD 0.32 per share payable on December 16, 2026 to holders of record on December 2, 2026. In October 2026 it approved a two-year share repurchase authorization of up to USD 50.0 million, replacing an earlier authorization of the same size that expired, and no shares have been bought under either.

Nine Month Results and Leverage Against Prior Periods

Nine month sales of USD 992.6 million compare with USD 847.9 million a year earlier, and nine month adjusted diluted EPS of USD 7.30 compares with USD 5.92. Third quarter adjusted EBITDA of USD 91.3 million compares with USD 254.6 million for nine months. Cash and equivalents stood at USD 83.4 million against USD 114.7 million at year end 2025, of which USD 67.2 million sits outside the United States. Net interest expense rose to USD 8.2 million from USD 6.4 million in the quarter, while repayments of debt were USD 135.2 million against USD 871.6 million in the prior year period.