Enpro raises 2026 outlook after third-quarter sales grow 22.4%
Key Facts
Enpro reported results on November 3 for the third quarter ended September 30, 2026, with sales of $350.8 million, up 22.4% from $286.6 million a year earlier. Adjusted diluted earnings per share were $2.66, compared with $1.99 in the corresponding quarter of 2025, an increase of 33.7%. GAAP diluted earnings per share came to $1.88, versus $1.01, up 86.1%. The figures reflect growth in sales and earnings, with a clear difference between the growth rates of adjusted and reported earnings. Chief Executive Eric Vaillancourt said the performance "reflects our disciplined execution and the success of Enpro 3.0 in continuing to accelerate profitable growth across the company."
Net income rose to $40.3 million in the third quarter, compared with $21.6 million a year earlier. Adjusted EBITDA was $91.3 million, versus $69.3 million in the third quarter of 2025. These metrics add to the picture of improved results alongside growth in sales and earnings per share, with net income and adjusted EBITDA both above their year-earlier levels. The available data did not detail the factors behind changes in either measure. The company cited demand for semiconductors, strength in domestic aerospace and general industry, acquisitions and pricing as sales drivers.
By segment, Advanced Surface Technologies posted sales of $136.5 million, up 25.8% from $108.5 million in the third quarter of 2025. Vaillancourt said rising demand in the semiconductor industry drove sales in the segment up about 26%. Sealing Technologies generated sales of $214.7 million, up 20.5% from $178.4 million a year earlier. Organic sales rose about 12%, and growth exceeded 20% including acquisitions. The two segments therefore grew on different drivers, while the chief executive specifically linked semiconductor demand to Advanced Surface Technologies' performance.
Enpro raised its fiscal 2026 revenue outlook to a range of $1.33 billion to $1.34 billion, equivalent to annual growth of 16% to 17%. The company had previously expected revenue growth of 14% to 16%, making the latest update an increase in its projected growth range. The raise follows an August update, when the company moved its revenue growth outlook from a range of 10%–14% to 14%–16%. Enpro also raised its adjusted EBITDA outlook to $340–345 million, from $330–340 million previously. It raised its full-year adjusted diluted earnings-per-share range to $9.70–$9.95, compared with a previous outlook of $9.30–$9.80.
In the context of its quarterly results, Enpro recorded sales of about $338.8 million in the second quarter of 2026, up 17.6% year over year, while adjusted diluted earnings per share reached $2.50, compared with $2.03 in the second quarter of 2025. The quarterly sales comparison in the data shows an increase from $338.8 million in the second quarter to $350.8 million in the third. In August, the company had raised its annual revenue growth outlook to 14%–16%, from a previous forecast of between 10% and 14%; the 16%–17% range followed in the November update. Management said customer build plans and delivery schedules provide visibility into demand for semiconductor-related products and solutions through at least 2027. That is the time horizon the company set for its demand visibility, alongside its updated financial outlook for the current year.
Before the market opened on November 3, Enpro shares rose 4.75% to $281.80 after closing Monday, November 2, down 0.94%. The company said its call to discuss third-quarter results would be held on November 3 at 8:30 a.m. Eastern time. The premarket share move came on the results-announcement day, following a decline in the previous session. The announcement also coincided with higher revenue and adjusted earnings outlooks for fiscal 2026. Management set its semiconductor-related demand visibility through at least 2027, based on customer plans and delivery schedules.