Earnings call transcript: Enpro beats Q3 2026 estimates and lifts outlook

Enpro Industries exceeded analyst expectations in the third quarter of 2026, reporting adjusted earnings of $2.66 per share and revenue of $350.8 million, surpassing forecasts for $2.42 per share and $333.98 million. The industrial company also increased its full-year outlook for 2026. Shares of Enpro rose 5.18% in pre-market trading to $282.90, up from the previous close of $268.98. The earnings beat was notable as the company reported superior growth in both revenue and earnings on a year-over-year basis.

Revenue increased by 22.4% from the previous year, while adjusted earnings per share (EPS) grew by 33.7%. Sealing Technologies, one of Enpro's main businesses, posted revenue of $214.7 million, a 20.5% increase from the prior year, while Advanced Surface Technologies reported a 25.8% boost in sales. Both segments contributed to margin expansion and stronger cash generation.

Enpro's management attributed the strong performance to its overall Enpro 3.0 strategy, which focuses on organic growth, portfolio optimization, and targeted investments.

The company's adjusted EBITDA for the quarter was between $91.3 million and $91.4 million, up 31.7% year-over-year, and the margin expanded by 180 basis points to 26.0%. Management forecasted 2026 revenue between $1.33 billion and $1.34 billion, adjusted EBITDA between $340 million and $345 million, and adjusted EPS between $9.70 and $9.95. Enpro's stock saw a 5.18% increase in pre-market trading to $282.90, reflecting positive investor sentiment towards the earnings beat and higher outlook.