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• Revenue: $273.2 million, increased more than 6% year-over-year.

• Adjusted EBITDA: $67.8 million, increased more than 16% year-over-year.

• Adjusted EBITDA Margin: Expanded to 24.8%, a 210 basis point increase year-over-year.

• Adjusted Diluted Earnings Per Share: $1.90, increased 21% year-over-year.

• Sealing Technologies Sales: $179.6 million, increased 4.7% year-over-year.

• Sealing Technologies Adjusted Segment EBITDA Margin: 32.7%.

• Advanced Surface Technologies Sales: Increased more than 9% to almost $94 million.

• Advanced Surface Technologies Adjusted Segment EBITDA Margin: 21.9%, expanded 180 basis points year-over-year.

• Corporate Expenses: $11.3 million, decreased from $12.2 million year-over-year.

• Free Cash Flow: $11.6 million for the first quarter.

• Cash Balance: Approximately $193 million as of May 1, 2025.

• Net Leverage Ratio: 1.5 times trailing 12-month EBITDA as of March 31.

• Dividend: $0.31 per share, totaling $6.6 million for the quarter.

• 2025 Guidance: Sales growth in the low- to mid-single-digit range; Adjusted EBITDA between $262 million to $277 million; Adjusted diluted EPS between $7 to $7.70.

• Warning! GuruFocus has detected 5 Warning Signs with LIND.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enpro Inc (NYSE:NPO) reported a 6% increase in organic sales for the first quarter, driven by strong execution and operational leverage.

• The Sealing Technologies segment saw a 4.5% increase in organic sales, with significant strength in aerospace, general industrial, and food and pharma markets.

• Advanced Surface Technologies (AST) segment sales increased by 9.1% year over year, with double-digit growth in Precision Cleaning Solutions and optical coatings and filters.

• Total company adjusted EBITDA increased over 16% on the 6% increase in sales, with margins expanding to 24.8%.

• The company's balance sheet remains strong, with a new revolving credit facility of up to $800 million, providing ample financial flexibility for strategic growth initiatives.

Negative Points

• There is continued weakness in commercial vehicle OEM demand, which has impacted sales in the Sealing Technologies segment.

• The semiconductor capital equipment spending remains choppy, affecting the Advanced Surface Technologies segment.

• Despite strong performance, the company faces macroeconomic and geopolitical uncertainties that could impact future results.

• The company has not seen a recovery in commercial vehicle markets, which is expected to remain weak for the balance of the year.

• M&A activity has slowed due to market uncertainty, requiring more diligent due diligence efforts.