EPAC Stock Forecast & Price Target

Enerpac Tool Group Corp. has demonstrated strong growth in both operational and capital expenditures, which increased by 19% and 43%, respectively, from 2019 to 2023. The company reported net sales of $159 million for the quarter, reflecting a year-over-year increase of 5.5% and an organic growth of 2%. Additionally, early results indicate a significant expansion in gross margin by 510 basis points from FY21 to FY24, further highlighting the company's positive financial trajectory.

Enerpac Tool Group has reported an adjusted EBITDA of $41 million, reflecting a margin of 25.9%, which signifies a year-over-year decline of 50 basis points. The company faces potential headwinds including slowing industrial production, increased tariff rates, challenges in acquisitions and integrations, and a downturn in the international market, particularly within the Australian mining sector. Additionally, the persistent under-investment in U.S. infrastructure contributes to a negative outlook, as this may impact customer demand across Enerpac's key markets.