EPAC Stock Forecast & Price Target

Enerpac Tool Group Corp. has demonstrated significant growth in its operational and capital expenditures, increasing by 19% and 43%, respectively, from 2019 to 2023, indicating a robust investment in its business capabilities. In its latest quarter, the company reported net sales of $159 million, marking a 5.5% increase year over year, with an organic growth contribution of 2%. Moreover, the company has achieved a gross margin expansion of 510 basis points from fiscal year 2021 to 2024, reflecting improved profitability and efficiency in its operations.

Enerpac Tool Group reported an adjusted EBITDA of $41 million and a margin of 25.9%, reflecting a decrease of 50 basis points year over year, indicating declining operational efficiency. Challenges such as slowing industrial production activity, higher-than-anticipated tariff rates, and difficulties in acquisitions threaten the company’s growth prospects. Additionally, the ongoing under-investment in U.S. infrastructure, which is rated a "D" for health, further complicates the market environment for Enerpac, particularly in the context of its key market segments.