Analysis EPAC
Enerpac's cash nearly matched its debt. Then came SFE.
Enerpac completed its $472 million SFE acquisition after ending August with only $7.6 million of net debt. The deal changes its borrowing and growth outlook.
Ticker Byline
Enerpac Tool Group Corp.
Enerpac Tool Group makes hydraulic and mechanical tools, lifting systems and industrial services; the completed SFE acquisition adds fabrication, welding and machining equipment.
- Ticker
- EPAC
- Exchange
- XNYS
- SEC CIK
- 0000006955
Tools, service and a broader product range
Enerpac Tool Group Corp. trades on the New York Stock Exchange under EPAC. It sells hydraulic and mechanical tools, industrial lifting systems, maintenance services and equipment rentals. Most revenue comes from Industrial Tools & Services. Cortland Biomedical supplies specialized medical-device components.
The SFE Group purchase, completed October 28, 2026, adds fabrication, welding, machining and material-handling equipment, including the Climax, B&B Sumner and Axxair brands. SFE's approximately $170 million of trailing sales refers to the year ended March 31, 2026, not Enerpac's August fiscal year.
The financial record before SFE
Fiscal years ended August 31. Dollar amounts are millions except diluted earnings per share. Figures refer to continuing operations and exclude the October 2026 acquisition.
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue | $589.5 | $616.9 | $652.3 |
| Reported net income | $82.2 | $92.7 | $89.7 |
| Reported earnings per share | $1.50 | $1.70 | $1.72 |
| Adjusted EBITDA | $147.5 | $153.6 | $154.3 |
| Operating cash flow | $81.3 | $111.3 | $130.2 |
Adjusted EBITDA removes financing costs, tax, asset-related accounting charges and specified restructuring and acquisition costs. It is not net income or cash flow. In FY2026, net income fell even though earnings per share rose: fewer shares helped the per-share result. Enerpac spent $81.1 million on share repurchases during the year. Operating cash flow less $10.6 million of capital spending produced $119.6 million of free cash flow, compared with $92 million a year earlier.
Earlier promises against the result
FY2026 guidance and actual results. Revenue, adjusted EBITDA and free cash flow are millions of dollars; adjusted earnings per share are dollars.
| Metric | October 2025 | July 2026 | Actual |
|---|---|---|---|
| Revenue | $635 to $655 | $635 to $645 | $652.3 |
| Adjusted EBITDA | $158 to $168 | $151 to $156 | $154.3 |
| Adjusted earnings per share | $1.85 to $2.00 | $1.84 to $1.89 | $1.87 |
| Free cash flow | $100 to $110 | $100 to $110 | $119.6 |
Sales finished above July's reduced range but within the original range. Adjusted EBITDA met the reduced range and missed the original one; free cash flow exceeded both forecasts. Adjusted earnings remove specified restructuring and acquisition costs, with their tax effects.
The acquisition changes the balance sheet
At August 31, 2025, cash was $151.6 million and debt $189.7 million. At August 31, 2026, cash was $174.7 million and debt $182.3 million, leaving $7.6 million of net debt. These dates precede the SFE closing.
The roughly $472 million purchase comprises about $452 million of cash, subject to closing adjustments, and $20 million of share awards in place of transaction bonuses. Cash funding combined existing cash, a refinanced $300 million term loan and $312 million borrowed under the new revolving facility. Part of the new borrowing refinanced existing debt. The credit agreement totals $850 million, including a $550 million revolving limit; the entire limit is not borrowed cash.
Management estimated closing net debt at 2.3 times adjusted EBITDA under the new credit agreement. That calculation adds SFE's $44 million of trailing adjusted EBITDA to Enerpac's annual measure. It is an estimated post-acquisition ratio, not a newly reported closing balance sheet.
What the next results can establish
Fiscal 2027 guidance includes about 10 months of SFE: revenue of $825 million to $845 million, adjusted EBITDA of $195 million to $205 million and adjusted earnings of $2.00 to $2.15 a share. Expected organic sales growth, excluding acquisitions and currency effects, is 4% to 6%.
The next results can show the first acquired sales, borrowing and cash balances after closing, and whether the existing business improves its profit margin. Management expects $4 million to $6 million of annual combined benefits by year three, with estimated integration costs of $10 million to $14 million and transaction costs of about $8 million. Those are future estimates, not completed savings.
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