Enpro (NPO) Q2 2026 earnings summary

Executive summary

• Sales for Q2 2026 rose 17.6% year-over-year to $338.8M, driven by strong semiconductor, aerospace, and industrial demand, as well as contributions from recent acquisitions.

• Adjusted EBITDA increased 22.2% to $86.9M, with margin expanding to 25.6%; adjusted diluted EPS climbed 23.2% to $2.50.

• Organic revenue grew 10.9% year-over-year, surpassing long-term targets.

• Full-year 2026 guidance was raised for sales, adjusted EBITDA, and adjusted EPS, reflecting robust order visibility and ongoing capacity investments, especially in AST.

• Integration of AlpHa and Overlook acquisitions progressing well, enhancing compositional analysis and biopharmaceutical capabilities.

Financial highlights

• Q2 2026 net sales: $338.8M (+17.6% YoY); six-month sales: $641.8M (+14.3% YoY).

• Adjusted EBITDA for Q2: $86.9M (+22.2% YoY); adjusted EBITDA margin: 25.6%.

• Adjusted diluted EPS for Q2: $2.50 (+23.2% YoY); adjusted net income: $53.5M.

• Free cash flow for the first half: $61.4M–$90.9M, up from prior year; capital expenditures for the first half: $27.8M–$29.5M.

• Paid $0.32 per share quarterly dividend ($13.8M total for first half) and maintained a $50M share repurchase authorization.

Outlook and guidance

• 2026 revenue growth guidance raised to 14–16% (from 10–14%).

• Adjusted EBITDA guidance increased to $330M–$340M (from $315M–$330M).

• Adjusted diluted EPS guidance raised to $9.30–$9.80 (from $8.85–$9.50).

• Management expects accelerating AST sales and strengthening organic growth in Sealing Technologies in H2 2026.

• Capital expenditures for 2026 expected at $60–$65M.