Transcript: Enerpac Tool Group Q3 2026 Earnings Conference Call

Enerpac Tool Group (NYSE: EPAC ) held its third-quarter earnings conference call on Wednesday.

Below is the complete transcript from the call.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Enerpac Tool Group Corp announced a definitive agreement to acquire SFE Group, expected to close in fiscal Q1 2027, expanding Enerpac's addressable market by approximately $1 billion.

The company reported a 5% organic increase in product sales and a sequential improvement in service revenue, despite an 8% decline in the ITS services business.

Enerpac expects the acquisition to be accretive to adjusted EPS in fiscal 2027 and aims to reduce net debt leverage from 2.8 times to 2.2 times within 12 months post-acquisition.

Challenges included delayed service projects due to the conflict in the Middle East, impacting Q3 financial performance and leading to adjusted full-year guidance for fiscal 2026.

Management highlighted strong cash flow, continued share repurchase, and a focus on leveraging SFE's management team and distribution network for future growth.

Full Transcript OPERATOR Thank you for standing by.

My name is Carli and I will be your conference operator today.

At this time, I would like to welcome everyone to the Enerpac Tool Group Q3 fiscal 2026 earnings conference call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question and answer session.

If you would like to ask a question during this time, simply press STAR followed by the number one on your telephone keypad.

If you would like to withdraw your question, press star one again.

Thank you.

I would now like to turn the call over to Darren Kozik, CFO.

Please go ahead.

Darren Kozik, EVP & Chief Financial Officer Thank you, Operator.

Good morning and thank you for joining us for Enerpac Tool Group's earnings call for the third quarter of fiscal 2026.

Joining me on the call today is our President and Chief Executive Officer, Paul Sternlieb.

Also joining us is our new Senior Director of Investor Relations, Christian Audi.

Christian brings more than 25 years of capital markets experience to Enerpac.

Most recently, he served as Head of Investor Relations at Adnoc Gas, one of the world's largest energy companies.

Earlier in his career, he was a top-ranked institutional investor analyst at Morgan Stanley and Santander.

I know you will all enjoy working with him as your primary contact.

Christian Audi, Senior Director of Investor Relations Thanks, Darren.

It's great to be here.

I look forward to working with all of you.

On today's call, we will reference non-GAAP measures.

You can find a reconciliation of GAAP to non-GAAP measures in the press release issued yesterday.

Our comments will also include forward-looking statements that are subject to risks that could cause actual results to be materially different.

Those risks include matters noted in our latest SEC filings.

The slides referenced on today's call are available on the Investor Relations section of the company's website, which you can download and follow along with us.

A recording of today's call will also be made available on our website.

Now, I'll turn it over to our CEO, Paul.