Enpro's sales accelerated. How much growth came without acquisitions?

Enpro's growth picked up in both of its businesses during the third quarter, putting substance behind management's August promise of a stronger second half. The industrial technology supplier raised its annual profit forecast again as semiconductor demand strengthened and its larger sealing business grew faster.

The distinction is how that growth arrived. Last year's acquisitions helped reported sales, but the improvement also holds after removing acquisitions and currency movements.

Testing the August promise

In August, CEO Eric Vaillancourt expected sales growth to accelerate in Advanced Surface Technologies and organic growth to strengthen in Sealing Technologies during the second half of 2026.

Research by Ticker Byline shows that both businesses delivered faster organic growth in Q3 than in Q2. Our comparison of the original August and November reports finds a particularly large improvement in Sealing, rather than an acceleration confined to semiconductor equipment.

Advanced Surface Technologies cleans, coats and supplies precision parts for semiconductor manufacturing. Stronger demand helped its adjusted segment profit rise to $34.3 million from $21.8 million a year earlier. Sealing's adjusted segment profit rose to $69.9 million from $57.4 million.

That segment measure removes depreciation, amortization and selected costs, and excludes corporate and financing expenses. Across the group, GAAP operating profit also increased, to $63.3 million from $40.9 million.

Acquisitions help, but do not explain everything

Sealing's reported sales grew 20.5%. Acquisitions contributed 8.5 percentage points and currency added 0.4 points. Stronger aerospace and U.S. industrial demand helped produce the remaining 11.6% growth. Demand for equipment that analyzes materials and price increases also contributed. European industrial, food and biopharmaceutical demand remained slow.

Sealing's adjusted profit margin improved from a year earlier but slipped to 32.6% from Q2's 33.2%.

A higher forecast, backed by cash

Enpro now forecasts annual adjusted EBITDA of $340 million to $345 million, versus August's $330 million to $340 million. EBITDA removes interest, income taxes, depreciation and amortization; Enpro also excludes selected costs. Adjusted EPS is now expected at $9.70 to $9.95, up from $9.30 to $9.80.

Nine-month operating cash increased to $172.8 million from $138.5 million, helped by higher earnings and lower cash taxes. Free cash flow, after cash spending on equipment and capitalized software, rose to $129.2 million from $104.9 million. Debt fell as Enpro repaid its revolving credit line.

The Enpro company profile follows the forecast changes, acquisition contributions and cash supporting the broader recovery.