Enpro’s first quarter results for 2025 received a strong positive response from the market, reflecting meaningful operational execution and growth in its core business segments. Management credited the performance to robust sales in Sealing Technologies, particularly in aerospace, general industrial, and food and pharma end markets, alongside continued momentum in Advanced Surface Technologies. CEO Eric Vaillancourt highlighted that “operational leverage and a favorable mix led to year-on-year earnings growth,” while the company’s diversified aftermarket exposure helped offset weakness in commercial vehicle OEM demand. Additionally, ongoing cost discipline and targeted investments supported higher segment margins and profitability.
Is now the time to buy NPO? Find out in our full research report (it’s free).
Enpro (NPO) Q1 CY2025 Highlights:
- Revenue: $273.2 million vs analyst estimates of $266.2 million (6.1% year-on-year growth, 2.6% beat)
- Adjusted EPS: $1.90 vs analyst estimates of $1.67 (14% beat)
- Adjusted EBITDA: $67.8 million vs analyst estimates of $61.97 million (24.8% margin, 9.4% beat)
- Management reiterated its full-year Adjusted EPS guidance of $7.35 at the midpoint
- EBITDA guidance for the full year is $269.5 million at the midpoint, above analyst estimates of $267.3 million
- Operating Margin: 15.1%, up from 12.2% in the same quarter last year
- Market Capitalization: $3.97 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Enpro’s Q1 Earnings Call
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Jeff Hammond (KeyBanc Capital Markets) asked for specifics on direct tariff exposure and pricing actions. CEO Eric Vaillancourt explained that exposure is minimal due to regional production and agile supply chains, “very little impact there,” with supply alternatives already in place.
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Hammond (KeyBanc Capital Markets) also pressed on end market sentiment and share gains. Vaillancourt responded that while commercial vehicle demand remains flat, innovation and aftermarket strength support the outlook, and the company seeks to capitalize on competitors’ pricing pressures.
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Steve Ferazani (Sidoti & Company) inquired about distributor destocking and AST facility progress. Vaillancourt noted no destocking trends and reported that the Arizona AST facility is ramping as planned, with revenue contributions expected later in the year.
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Ferazani (Sidoti & Company) followed up on capital allocation and M&A activity. CFO Joe Bruderek stated that M&A pace has slowed due to diligence in the current environment, but the company remains focused on high-quality targets and has flexibility from its new credit facility.
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Ian Zaffino (Oppenheimer) asked about margin drivers in Sealing Technologies and AST’s growth outlook. Bruderek said margin gains were primarily mix-driven, especially in aerospace and aftermarket, and confirmed confidence in mid to high single-digit AST growth for 2025.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be closely monitoring (1) the continued ramp-up and revenue contributions from the Arizona AST facility, (2) the trajectory of demand in aerospace and advanced cleaning solutions as the semiconductor cycle evolves, and (3) the company’s ability to sustain high segment margins despite persistent macroeconomic uncertainty. Execution on targeted growth investments and progress in supply chain agility will also be key signposts of Enpro’s performance.
Enpro currently trades at $191.72, up from $155.32 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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