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Enpro (NPO)
NYSE:NPO
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Enpro
(NYSE:NPO)
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Rating:71Outperform
Price Target:
$307.00
▲(19.29% Upside)
Action:UpgradedDate:02/20/26
The score is driven primarily by solid underlying financial performance (strong and improving free cash flow, better operating profitability) and bullish technical momentum. These positives are balanced by a very expensive valuation (high P/E, low yield) and financial-quality watch items such as volatile net profitability and lower recent ROE, despite upbeat 2026 guidance.
Positive Factors
Free Cash Flow Generation
Sustained and improving free cash flow that tracks closely to net income provides durable funding for dividends, capex, and M&A without heavy equity issuance. >$150M FCF in 2025 strengthens balance sheet flexibility and supports repeatable capital allocation over the next several quarters.
Sealing Technologies Margin Leadership
A high-margin, consistently outperforming segment (≈32% EBITDA margin) provides structural earnings resilience. Durable margin leadership in Sealing Technologies supports overall corporate profitability, funds reinvestment and cushions cyclicality in weaker end markets across the 2–6 month horizon.
Manageable Leverage & Liquidity
A ~2.0x net leverage profile plus a large committed revolver provides durable financial flexibility to fund strategic M&A and absorb shocks. This liquidity buffer reduces refinancing risk and supports planned acquisition-driven growth without immediate deleterious effects on operations.
Negative Factors
Volatile Net Profitability & ROE
Marked swings in net margin and a declining ROE indicate inconsistent bottom-line conversion and weakening capital efficiency. This variability undermines earnings predictability, makes forward EPS less reliable, and reduces confidence in sustaining returns for shareholders over the coming quarters.
Pension Settlement Non-Cash Loss
A large non-cash pension settlement loss creates accounting volatility and reduced reported net income, complicating comparability and performance metrics. While cash obligations were met by plan assets, legacy pension issues can persist as a governance and balance-sheet overhang for several reporting periods.
Higher Interest Expense From M&A Funding
Reliance on revolver draws to fund recent acquisitions elevates interest costs and reduces free cash flow conversion, increasing sensitivity to rising rates. Higher financing expense can pressure margins and constrain discretionary investment or deal activity over the medium term.
Enpro (NPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.47B
Dividend Yield0.56%
Average Volume (3M)179.20K
Price to Earnings (P/E)111.0
Beta (1Y)1.37
Revenue Growth6.44%
EPS Growth101.24%
CountryUS
Employees3,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.99
Shares Outstanding21,248,001
10 Day Avg. Volume204,234
30 Day Avg. Volume179,204
Financial Highlights & Ratios
PEG Ratio-2.48
Price to Book (P/B)2.91
Price to Sales (P/S)3.93
P/FCF Ratio28.25
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue5.26
Enterprise Value/Gross Profit12.33
Enterprise Value/Ebitda30.91
Forecast
1Y Price Target
$297.50Price Target Upside15.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)8.77
Revenue Forecast (FY)$1.24B
Enpro Business Overview & Revenue Model
Company DescriptionEnPro Industries, Inc. engages in the design, development, manufacture, marketing, and service of engineered industrial products in the United States, Europe, and internationally. It operates through three segments: Sealing Technologies, Advanced Surface Technologies, and Engineered Materials. The Sealing Technologies segment offers single-use hygienic seals, tubing, components and assemblies; metallic, non-metallic, and composite material gaskets; compression packing products; hydraulic components; expansion joints; wall penetration products; and dynamic, flange, resilient metal, elastomeric, and custom-engineered mechanical seals for chemical and petrochemical processing, pulp and paper processing, power generation, food and pharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, heavy-duty trucking, aerospace, medical, filtration, and semiconductor fabrication industries. This segment also provides aseptic fluid transfer products for the pharmaceutical and biopharmaceutical industries. The Advanced Surface Technologies segment offers cleaning, coating, testing, refurbishment, and verification services for critical components and assemblies used in semiconductor manufacturing equipment, as well as for critical applications in the space, aerospace, and defense markets; and specialized optical filters and thin-film coatings for various applications in the industrial technology, life sciences, and semiconductor markets. The Engineered Materials segment provides self-lubricating, non-rolling, metal polymer, engineered plastics, and fiber reinforced composite bearing products for various applications in the automotive, pharmaceutical, pulp and paper, natural gas, health, power generation, machine tools, air treatment, refining, petrochemical, and general industrial markets. The company was incorporated in 2002 and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneyEnpro generates revenue through a combination of grants, donations, and service fees. Key revenue streams include government and foundation grants aimed at funding specific environmental projects and educational programs. Additionally, Enpro offers consultancy services to businesses and local governments, charging fees for expert advice on sustainability practices. The organization also engages in fundraising activities and partnerships with corporations that align with its mission, which provide financial support and resources in exchange for community visibility and corporate social responsibility fulfillment.
Enpro Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported strong top-line growth (FY sales +9%, Q4 sales +14.3%), solid margin and EBITDA expansion, robust free cash flow, a healthy balance sheet (2.0x net leverage) and a clear M&A and growth strategy with optimistic 2026 guidance. Notable near-term headwinds include a large non-cash pension settlement loss, elevated AST operating investments that pressure near-term margins, persistent weakness in select end markets (commercial vehicle OEM and some semiconductor pockets), and some nonrecurring 2025 items that complicate year-over-year comparisons. Overall, the positives — organic growth, margin resilience (especially in Sealing Technologies), free cash flow generation, and a constructive outlook for 2026 — outweigh the limited but material lowlights.Q4-2025 Updates
Positive Updates
Full-Year Sales Growth
Sales increased 9% in FY2025 to $1,140,000,000, driven by aerospace, food & biopharma, domestic general industrial strength and improving semiconductor markets; organic sales growth was 7.6% for the year.
Fourth Quarter Momentum
Q4 2025 sales rose 14.3% to $295,400,000 with organic sales up ~10%; strong contributions from Sealing Technologies and improved AST order flow; partial-quarter contributions from Alpha and Overlook acquisitions.
Profitability and EBITDA Expansion
Q4 adjusted EBITDA was $69,400,000, up 19.2% year-over-year, with an adjusted EBITDA margin of 23.5% (up 100 bps). Full-year adjusted metrics show maintenance of premium profitability.
Sealing Technologies Outperformance
Sealing Technologies delivered Q4 sales of $187,100,000 (almost +15% YoY) with organic sales up nearly 8% and adjusted segment EBITDA margin expanding 180 bps to 32.8%; segment margin exceeded 32% for the second consecutive year and management expects ~mid single-digit organic growth and margin >30% in 2026.
Advanced Surface Technologies (AST) Recovery Signs
AST Q4 sales increased 13.4% to $108,400,000; adjusted segment EBITDA rose ~3% with margins above 20%. Management reports accelerating order patterns and expects high-single-digit sales growth for 2026, stronger second-half performance, and margin expansion through the year.
Strong Free Cash Flow and Balance Sheet
Generated >$150,000,000 of free cash flow in 2025 (net of $48,000,000 capex), an 18% increase from $130,000,000 in 2024; exited 2025 with net leverage ratio of 2.0x and >$580,000,000 available on an expanded $800,000,000 revolver.
Strategic M&A and Capital Allocation
Deployed $280,000,000 to acquire Alpha Measurement Solutions and Overlook Industries (2025) and completed AMI acquisition in late 2024; management targets $250,000,000–$300,000,000 (or more) for strategic M&A and reports a robust pipeline of targets.
Guidance and Forward Outlook
2026 guidance: total sales growth expected 8%–12% (including ~$60,000,000 from Alpha/Overlook), adjusted diluted EPS $8.50–$9.20, adjusted EBITDA indicated in the range disclosed, and capex expected around $50,000,000 (~4% of sales) focused on growth.
Operational & Safety Achievements
World-class safety results in 2025 with total recordable incident rate of 0.64 and lost time case rate of 0.09; enterprise-wide training commitment (minimum 16 hours per colleague) and two-thirds of capex targeted to growth/efficiency projects.
Negative Updates
Pension Plan Settlement Non-Cash Loss
Substantial completion and settlement of the U.S. defined benefit pension plan triggered a non-cash settlement loss of $67,200,000 recorded to other non-operating expense, reflecting recognition of life-to-date actuarial losses (cash settlement obligations were satisfied by plan assets).
AST Near-Term Cost Pressure
AST incurred elevated operating expenses supporting growth programs (~$2,000,000 in Q4 and >$8,000,000 for the full year) which weighed on near-term margins; management expects these investments to leverage as revenue ramps later in 2026.
Persistent End-Market Weaknesses
Ongoing weakness noted in parts of semiconductor capital equipment demand (multi-year choppiness) and commercial vehicle OEMs; slow industrial sales internationally and choppy nuclear sales in Europe were also cited as headwinds.
One-Time Sales Tailwind Not Recurring
Company shipped $12,000,000 of safety stock inventory in 2025 to support customer transitions, which management does not expect to recur in 2026 and could reduce comparable revenue early in the year.
Incremental Corporate Costs
Corporate expenses increased (corporate expense of $14,200,000 in Q4 was up $800,000 YoY) primarily due to higher medical costs and higher short-term incentive costs tied to strong performance, modestly pressuring margins.
Higher Interest Expense Expected
With late-2025 M&A, management expects to be materially drawn on the revolver through much of 2026, resulting in higher interest expense that will modestly reduce adjusted EPS and free cash flow relative to otherwise lower borrowing scenarios.
Company Guidance
EnPro guided 2026 sales growth of 8–12% (including roughly $60M from the Alpha and Overlook acquisitions), adjusted EBITDA of about $320M–$350M (including $16M–$17M from those acquisitions) and adjusted diluted EPS of $8.50–$9.20 (using a 25% normalized tax rate and ~21.3M fully diluted shares). Capital expenditures are expected to be roughly $50M (~4% of sales); the company finished 2025 with net leverage of ~2x, >$580M of revolver capacity, generated >$150M of free cash flow in 2025 (net of $48M capex), and deployed $280M on acquisitions in 2025. By segment, Sealing Technologies is expected to approach ~15% revenue growth in 2026 (mid-single-digit organic) with adjusted segment EBITDA margin again above 30%, while AST is expected to grow high single digits (noting $12M of 2025 equipment sales that will not recur) with margins expanding through the year and materially stronger in H2. Long‑term targets remain mid‑to‑high single‑digit organic top‑line growth and segment adjusted EBITDA margins of ~30% ±250 bps; the board also raised the quarterly dividend to $0.32 per share (from $0.31), after $26.2M of dividends paid in 2025.Enpro Financial Statement Overview
Summary
Solid cash generation and improving operating profitability support the score (FCF improved in 2024–2025 and is consistently close to net income). Offsetting this, net profitability was volatile with a sharp net margin drop in 2025, and return on equity has declined materially in recent years despite improving leverage.Income Statement
Revenue has been fairly stable with a return to modest growth in 2025 (up ~3.3% after slight declines in 2023–2024). Profitability at the operating line improved meaningfully versus 2022–2023 (higher gross and operating margins), showing better cost control and/or mix. However, net profitability is volatile—net margin fell to ~3.5% in 2025 from ~7.0% in 2024, and results are inconsistent across years, which reduces confidence in earnings quality and durability.63
Positive
Balance Sheet
Leverage looks manageable and improving: debt relative to equity declined from elevated levels in 2021 to a more moderate level by 2025, while equity has grown over time. Total assets have been broadly steady, suggesting a stable balance sheet footprint. The key weakness is returns to shareholders: return on equity has dropped sharply in recent years (low in 2023–2025 versus very strong 2021–2022), indicating weaker profit generation on the capital base despite the healthier leverage profile.70
Positive
Cash Flow
Cash generation is a clear positive. Operating cash flow and free cash flow both improved in 2024–2025, and free cash flow growth turned positive again in 2025. Cash flow also holds up well relative to reported profits, with free cash flow consistently close to net income across years, which supports earnings credibility. The main concern is variability in how well operating cash flow covers near-term obligations over time (stronger in 2023 and 2025, weaker in 2021–2022), pointing to some cyclicality or working-capital swings.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.14B | 1.05B | 1.06B | 1.10B | 840.40M |
| Gross Profit | 487.50M | 444.80M | 426.80M | 423.30M | 328.10M |
| EBITDA | 194.40M | 235.60M | 177.20M | 167.00M | 146.00M |
| Net Income | 40.50M | 72.90M | 22.20M | 205.10M | 177.90M |
Balance Sheet | |||||
| Total Assets | 2.66B | 2.49B | 2.50B | 2.65B | 2.97B |
| Cash, Cash Equivalents and Short-Term Investments | 114.70M | 236.30M | 369.80M | 334.40M | 338.10M |
| Total Debt | 655.30M | 694.70M | 656.80M | 799.90M | 1.14B |
| Total Liabilities | 1.12B | 1.06B | 1.07B | 1.23B | 1.65B |
| Stockholders Equity | 1.54B | 1.43B | 1.41B | 1.40B | 1.27B |
Cash Flow | |||||
| Free Cash Flow | 159.20M | 130.00M | 173.90M | 97.60M | 127.00M |
| Operating Cash Flow | 201.20M | 162.90M | 207.80M | 127.40M | 141.90M |
| Investing Cash Flow | -316.90M | -241.50M | -7.40M | 297.60M | -651.20M |
| Financing Cash Flow | -17.40M | -50.50M | -170.90M | -402.10M | 618.20M |
Enpro Technical Analysis
Positive
257.35
Price Trends
245.05
Positive
232.63
Positive
219.88
Positive
Market Momentum
4.56
Positive
52.97
Neutral
34.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPO, the sentiment is Positive. The current price of 257.35 is below the 20-day moving average (MA) of 267.30, above the 50-day MA of 245.05, and above the 200-day MA of 219.88, indicating a neutral trend. The MACD of 4.56 indicates Positive momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 34.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPO.
Enpro Risk Analysis
Enpro disclosed 26 risk factors in its most recent earnings report. Enpro reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enpro Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.52B | 21.55 | 21.55% | 1.09% | 8.75% | 64.82% | |
71 Outperform | $5.47B | 111.03 | 5.80% | 0.56% | 6.44% | 101.24% | |
71 Outperform | $4.08B | 33.07 | 11.32% | 0.46% | -0.96% | -11.55% | |
70 Outperform | $4.34B | 29.38 | 10.89% | 1.06% | 5.06% | -22.73% | |
66 Neutral | $4.48B | 118.57 | 12.02% | 0.26% | 14.87% | 15.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $5.34B | 82.72 | 1.71% | ― | 7.81% | ― |
* Industrials Sector Average
NPO
Enpro
257.35
82.87
47.49%
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Enpro Corporate Events
Executive/Board Changes
Enpro Announces Non-Contentious Board Transition as Director Departs
Neutral
Jan 8, 2026
On January 6, 2026, Enpro Inc. announced that director Ronald C. Keating has chosen not to stand for reelection to the board at the company’s 2026 annual meeting of shareholders. The company noted that Keating’s decision was not due to any disagreement over Enpro’s operations, policies, or practices, suggesting an orderly and non-contentious board transition for stakeholders.
The most recent analyst rating on (NPO) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Enpro stock, see the NPO Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.