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December 19, 2024 Newswires

First Quarter 2025 Presentation

U.S. Markets via PUBT

Q1 FY25 EARNINGS

DECEMBER 19, 2024

Continued Softness in Industrial Macro Environment

Latest Manufacturing PMI (Including Flash)

Source: S&P Global, Haver Analytics, Goldman Sachs Global Investment Research

Industrial Production (U.S.): Total Index (y/y change)

2.0%

1.5%													1.4%
	1.2%

1.0%
															0.4%		0.3%
0.5%
		0.2%

0.0%
																			0.0%

-0.5%																		-0.2%
					-0.4%	-0.6%			-0.4%		-0.4%				-0.5%		-0.6%

					-0.5%
-1.0%							-0.7%	-0.7%											-0.6%
									-0.8%												-0.9%
																	-1.0%

-1.5% -	1.3%		-1.3%						-1.7%
-2.0%												-1.8%
Dec-22						Jun-23	Jul-23			Oct-23	Nov-23	Dec-23		Apr-24		Jun-24	Jul-24		Oct-24	Nov-24
	Jan-23	Feb-23	Mar-23	Apr-23	May-23	Aug-23	Sep-23	Jan-24	Feb-24	Mar-24	May-24	Aug-24	Sep-24

Source: Board of Governors of the Federal Reserve System (US)

Q1 Fiscal 2025 Revenue

($ in millions)
	Net Sales	Net Sales		Organic
	1Q24	1Q25	Change	Growth*
Industrial Tools & Service (IT&S)	$137	$140	2.3%	-1.0%
IT&S Product	$105	$106	1.1%	-3.0%
IT&S Service	$32	$34	6.0%	+5.6%
Other (Cortland Biomedical)	$5	$5	2.6%	+2.6%
Enerpac Tool Group	$142	$145	2.3%	-0.8%

*Organic net sales is a non-GAAP measure and excludes the impact of foreign exchange rates, acquisitions, and dispositions identified in the accompanying reconciliations to GAAP measures.

Q1 Fiscal 2025 Profitability

($ in millions, except EPS)

					YoY
			1Q24	1Q25	Change
Gross Margin			52.3%	51.4%	-90bps
Adjusted SG&A	*		29.0%	29.0%	flat

Adjusted EBITDA	*	$35	$34	-2%

Adjusted EBITDA Margin	24.6%	23.6%	-100 bps
*			$0.39	$0.40	3%
Adjusted EPS

*Adjusted SG&A, adjusted EBITDA, and adjusted EPS are non-GAAP measures and exclude restructuring and other charges identified in the accompanying reconciliations to GAAP measures.

Strong Liquidity &

Balance Sheet

($ in millions)

Cash & Equivalents	$131
Revolver Capacity (Undrawn)	$399
Total Liquidity	$529
Total Debt	$193
Net Debt/Adj. EBITDA*	0.5x

Asset-Light Model Enables Strong FCF**

Balanced Capital

Allocation Strategy

Invest in Ourselves

Disciplined M&A

Investments in Digital, Product

Innovation, R&D, Operational

Excellence Improvements

$78

$81

$69$70

$54$52

$42$44

$12	$7	$9	$11



FY21	FY22	FY23	FY24

Maintain Our Strong	Opportunistically
Balance Sheet	Returning Capital
Target Leverage of	to Shareholders
1.5x - 2.5x	~2.6M shares remaining on

	current 10M share
	repurchase authorization

	*As of November 30, 2024, calculated in accordance with the terms of the Company's September 2022 senior credit facility.	6

	**The Company calculates free cash flow as cash from operations, less capital expenditures.

IT&S Organic Growth by Region*

Region

1Q24

1Q25

FY24 IT&S

Regional Sales

APAC

13%

Americas

46%

EMEA

41%

*Organic revenue growth excludes the impact of foreign exchange rates, acquisitions, and dispositions.	7

PEP in Action: Continued Margin Expansion

Strategic Efforts	Focus Areas
Accelerating Growth	Execution and monitoring of growth strategy
Optimizing Operations	Continuous improvement projects in
manufacturing and procurement

Minimizing Inefficiencies	Continuing to streamline SG&A through greater
efficiency and productivity

Standardizing Processes	Driving further global standardization and
simplification leveraging 80/20 framework

Solving Challenges	Structured problem-solving approach to determine
true root-cause and implement countermeasures

Appendix

FY25 Guidance

Key Assumptions:

Targeting to outperform industry and gain market share
No broad-based global recession

Depreciation & Amortization ~$14 - $16M
Interest Expense	~$13 - $15M
Adjusted Tax Rate	~21 - 26%
Cash Taxes	~$35 - $40M
Capex	~$19 - $24M
Key FX Rates	$1.10/1€, $1.31/1£

N E T S A L E S

$610 - $625M

~0-2% Organic Growth

~3-6% Total Growth

A D J . E B I T D A *

$150 - $160M

F R E E C A S H F L O W

$85 - $95M

*Adjusted for one-time merger and acquisition costs.

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Enerpac Tool Group Corporation published this content on December 19, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 19, 2024 at 12:35:03.840.