Enpro Inc.

Enpro Inc. (NYSE: NPO) supplies engineered products for demanding industrial applications. Advanced Surface Technologies provides precision manufacturing, cleaning, refurbishment and coatings used in semiconductor equipment, plus optical technologies. Sealing Technologies supplies seals, gaskets, sensing equipment and other products used in industrial processes, aerospace, energy and commercial vehicles.

Growth broadens within the existing businesses

In August 2026, CEO Eric Vaillancourt expected Advanced Surface Technologies sales growth to accelerate and Sealing's organic growth to strengthen during the second half. Q3 delivered progress in both businesses. Organic growth excludes currency movements and acquisitions; it can include price increases as well as changes in volume and mix.

Our comparison of the original August and November reports finds that faster growth extends beyond the semiconductor business.

Advanced Surface Technologies' Q3 sales reached $136.5 million. Its adjusted segment profit margin rose to 25.1% from 20.1% a year earlier and 23.9% in Q2. Sealing sold $214.7 million and earned a 32.6% adjusted segment margin, above the prior year's 32.2% but below Q2's 33.2%.

Reported earnings and adjustments

Individual adjusted segment profit removes depreciation, amortization and specified costs, while excluding corporate expenses, interest and taxes. Group adjusted EBITDA adds back interest, income taxes, depreciation, amortization and selected items. Adjusted EPS removes acquisition amortization and specified costs and uses a normalized 25% tax rate.

A $16.1 million legacy environmental reserve expense arose in Q2. It is removed from adjusted results and added back as a noncash item in the operating cash statement. It was already disclosed in August.

The forecast rises again

Enpro's February annual forecast called for 8% to 12% revenue growth, $305 million to $320 million adjusted EBITDA and $8.50 to $9.20 adjusted EPS. August's forecast was already higher: 14% to 16% revenue growth, $330 million to $340 million adjusted EBITDA and $9.30 to $9.80 adjusted EPS.

November raises those ranges to 16% to 17% revenue growth, $340 million to $345 million adjusted EBITDA and $9.70 to $9.95 adjusted EPS. The stronger quarter continues a recovery that was already visible last year.

Acquisitions, cash and funding

Overlook Industries closed on October 8, 2025, and AlpHa Measurement Solutions on November 14, 2025. Enpro paid $273.9 million in 2025, net of acquired cash, for the two Sealing businesses. A subsequent $0.8 million working-capital refund was received in the first half of 2026. The deals contributed 8.5 percentage points of Sealing's reported Q3 sales growth.

Nine-month operating cash was $172.8 million, versus $138.5 million. Cash purchases of equipment and capitalized software totaled $43.6 million, leaving company-defined free cash flow of $129.2 million versus $104.9 million. Cash income taxes fell to $19.8 million from $33.6 million, helping the increase.

September cash was $83.4 million, versus $77.0 million in June and $114.7 million at year-end. Debt carrying amounts fell to $520.7 million from $575.5 million in June and $655.3 million in December. Enpro repaid $135 million of revolving debt over nine months. Its $715.2 million remaining revolving availability is borrowing capacity, separate from cash.

October's $50 million repurchase renewal replaced an unused authorization of the same size. The replacement expires in October 2028. Read our comparison of Enpro's growth and forecast for the latest analysis.