Start here if you're new
what it is
Enerpac sells the hydraulic tools and lifting systems you use when something huge, heavy, and expensive has to move safely.
how it gets paid
Last year Enerpac Tool made $617M in revenue.
why it's growing
Revenue grew 4.6% last year. While it&s product sales grew 4% organically and orders improved.
what just happened
Latest quarter revenue slipped to $144.2M and EPS fell to $0.36, so the near-term slowdown is real.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
35/100 earnings predictability — expect surprises
21.2x trailing p/e — priced about right
0.1% dividend yield — cash in your pocket every quarter
17.5% return on capital — nothing to write home about
xvary composite: 58/100 — below average
What they do
Enerpac sells the hydraulic tools and lifting systems you use when something huge, heavy, and expensive has to move safely.
Enerpac sells into jobs where failure is expensive and downtime is worse. You do not swap out a lifting system vendor casually when the load is massive and the schedule is tight. That stickiness shows up in a 50.7% gross margin and a 28.0% operating margin, which is a fancy way of saying a lot of each sales dollar survives after costs.
How they make money
$617M
annual revenue · their business grew +4.6% last year
total revenue
$617M
+4.6%
The products that matter
hydraulic tools and motion systems
Industrial Tools
$617M revenue · 25.0% operating margin
It drives the full $617M revenue base and still converts that into a 25.0% operating margin. That's the core reason this stock gets treated like a quality industrial.
core
higher-margin aftermarket service work
Services
26% decline last quarter
The page does not give you a dollar figure for services. It does tell you this line fell 26% last quarter, especially in the U.K. oil and gas channel. That's the wrong line to see weaken because management describes it as higher-margin.
mix risk
project-based lifting solutions
Heavy Lifting Technology
pipeline building in APAC and the Americas
No revenue figure is disclosed here. What you do know is management said the pipeline is building in APAC and the Americas. For now, this is more backlog promise than current earnings engine.
future option
Key numbers
$49
18-month target
That is 27% above $38.59. You need sales moving toward the $655M fiscal 2026 estimate for that upside to make sense.
50.7%
gross margin
Gross margin means money left after making the product. At 50.7%, Enerpac sells pricey, specialized gear rather than commodity metal.
17.5%
return on capital
Return on capital means profit earned on the cash tied up in the business. At 17.5%, Enerpac is doing better than the average industrial grinder.
21.2x
trailing p/e
P/E means how many dollars you pay for one dollar of profit. At 21.2x, this is not priced like a broken company.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $180M (8% of capital)
- net profit margin 18.7% — keeps 19 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in EPAC 3 years ago → it's now worth $15,330.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Latest quarter revenue slipped to $144.2M and EPS fell to $0.36, so the near-term slowdown is real.
Revenue fell 1% vs. prior year and EPS fell 10%. Management still pointed to 4% organic product sales growth, but a 26% drop in heavy lifting technology did the damage.
$144.2M
revenue
$0.36
eps
50.7%
gross margin
the number that mattered
The 26% drop in heavy lifting technology mattered most because it erased the benefit of 4% organic product growth.
-
while it&s product sales grew 4% organically and orders improved, these gains were more than offset by a sharp 26% decline in higher-margined service revenue, particularly in the u.k. amid oil and gas customer consolidation.
-
emea and apac revenues fell 10% and 8%, respectively, reflecting macro softness, lumpy heavy lifting technology projects, and political uncertainty in asia.tariff-driven cost pressures weighed on margins, and a higher effective tax rate reduced earnings, masking underlying product momentum.
-
that said, we are optimistic about performance picking up pace over the next several quarters.
-
there are multiple tailwinds that should bolster gains for the remainder of the fiscal year.order growth remains encouraging across most regions, underpinned by more-stable demand in infrastructure, power generation, and defense. heavy lifting technology continues to build a healthy project pipeline, particularly in apac and the americas. meanwhile, investments in product innovation, commercial capabilities, and e-commerce are expected to improve conversion rates and accelerate product development. what’s more, enerpac’s commercial excellence strategy enhances sales funnel rigor, while a strong backlog and well-positioned specialized products enhance near-term revenue visibility.
-
the next 3 to 5 years are promising, but the stock already reflects much of the gains we envision.by our calculations, the company has ample capacity to fund growth initiatives, including m&a, product innovation, and geographic expansion. robust liquidity provides flexibility to invest in more high-return projects and help to buffer against macro volatility. consistent free cash flow generation, disciplined capital allocation, and controlled operating expenses support sustainable earnings growth prospects.
source: company earnings report, 2026
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What could go wrong
the #1 risk is another leg down in higher-margin service revenue tied to the u.k. oil and gas channel.
med
service mix keeps deteriorating
Services fell 26% last quarter. Management calls this work higher-margin, so weakness here matters more than the same percentage decline in a lower-margin product line.
If this keeps happening, the 25% operating margin starts looking less durable.
med
regional softness spreads
EMEA revenue fell 10% and APAC fell 8%. Management also cited political uncertainty in Asia and lumpy Heavy Lifting Technology projects.
A project-driven business can absorb one weak region. Two shrinking regions at once is a different conversation.
med
institutional sponsorship is fading
Institutions have been net sellers for three straight quarters. In 3Q2025, 107 funds bought versus 145 that sold.
That does not break the business, but it can cap multiple expansion while investors wait for cleaner growth.
med
cost and tax pressure masks operating progress
Tariff-driven cost pressure and a higher effective tax rate both reduced earnings in the latest period.
Even if product demand improves, margin translation can still disappoint you.
A business growing 4.6% cannot afford its higher-margin service work to keep shrinking 26%. That's the combined risk picture.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
service revenue after the 26% drop
This is the margin canary. If the higher-margin service line keeps falling, the quality multiple gets harder to defend.
earnings
next earnings for regional stabilization
Watch whether EMEA and APAC improve after falling 10% and 8%. You want to see the weakness stop spreading.
trend
orders and heavy lifting pipeline
Management said orders improved and the Heavy Lifting Technology pipeline is building in APAC and the Americas. That setup needs to turn into reported revenue.
risk
institutional selling streak
Three straight quarters of net selling is not fatal. A fourth would say the market still does not trust the rebound story.
Analyst rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts do not see a strong short-term edge here.
risk profile
average
Stability score 3 — typical risk for a stock like this. Not especially defensive. Not a wreck either.
chart momentum
average
Technical score 3 — the chart is not sending a dramatic message. You are mostly buying the business case, not price momentum.
earnings predictability
35 / 100
Low predictability means estimates can miss in either direction. Recent service volatility explains why.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 107 buyers vs. 145 sellers in 3q2025. total institutional holdings: 54.2M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$31
$66
$39
current price
$49
target midpoint · +27% from current · 3-5yr high: $65 (+70% · 14% ann'l return)
Want the deeper analysis?
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