NPO - Enpro Reports Second Quarter 2026 Results; Raises Full-Year Guidance

Enpro (NYSE: NPO ) reported second-quarter financial results on Tuesday. The transcript from the company's second-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation. The full earnings call is available at Summary Enpro Industries reported a 17.6% year-over-year increase in second quarter sales, driven by strong demand in the semiconductor markets and significant growth in the Advanced Surface Technologies (AST) and Sealing Technologies segments. Adjusted EBITDA for the quarter increased by over 22% to $86.9 million, with a margin expansion to 25.6%, supported by strong operating leverage and strategic acquisitions. The company raised its full-year 2026 guidance, now expecting sales growth of 14% to 16%, adjusted EBITDA of $330 to $340 million, and adjusted diluted EPS of $9.30 to $9.80. Key strategic initiatives include capacity expansions in the AST segment to meet growing demand, successful integration of recent acquisitions Alpha Measurement Solutions and Overlook Industries, and continued investment in new product development. Management highlighted the company's ability to maintain strong profitability margins, with Sealing Technologies segment maintaining a margin above 30% for the tenth consecutive quarter and AST segment margins improving significantly. Despite softness in the commercial vehicle market, early signs of stabilization and improvement are noted, with positive outlook for a recovery in trailer demand. Strong cash flow generation allowed for a reduction in revolving debt by $80 million, with a leverage ratio of 1.6 times trailing 12-month adjusted EBITDA. Full Transcript OPERATOR Greetings and welcome to the Enpro second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Mr. James Gentile, Vice President, Investor Relations. Thank you. James Gentile, Vice President, Investor Relations Thanks, Melissa, and good morning, everyone. Thank you for joining us today as we review Enpro's second quarter 2026 earnings results and discuss our increased outlook for 2026. I will remind you that this conference call is being webcast at enpro.com, where you can find the presentation that accompanies this call. With me today is Eric Vaillancourt, our President and Chief Executive Officer, and Joe Bruderek, Executive Vice President and Chief Financial Officer. During this morning's call, we will reference a number of non-GAAP financial measures. Tables reconciling the historical non-GAAP measures to the comparable GAAP measures are included in the appendix to the presentation materials. Also, a friendly reminder that we wi