EnPro Industries, Inc.

Enpro reported Q2 2026 sales of $338.8 million, up 17.6% year over year. Adjusted EBITDA was $86.9 million, up more than 22%, and adjusted EBITDA margin was 25.6%, up 90 basis points. Adjusted diluted EPS was $2.50, up 23.2%. By segment, Sealing Technologies sales were $216.2 million, up 15.3%, with adjusted segment EBITDA margin of 33.2%; AST sales rose 21.8% and adjusted segment EBITDA margin reached 23.9%. For 2026, management raised total sales guidance to 14% to 16% growth from 10% to 14%, adjusted EBITDA guidance to $330 million to $340 million from $315 million to $330 million, and adjusted diluted EPS guidance to $9.30 to $9.80 from $8.85 to $9.50. Capex expectations were raised to $60 million to $65 million from around $50 million. Management also said Sealing organic growth should be in the high single digits in the second half, AlpHa and Overlook are still expected to contribute $60 million to $65 million this year, and AST is expected to grow 20% year over year in the second half with revenue growth and EBITDA margin both approaching 25% exiting the year.

Eric Vaillancourt framed the quarter as evidence that Enpro 3.0 is working, emphasizing strong execution, portfolio balance, and long-term growth across mission-critical end markets. He said AST is benefiting from a stronger semiconductor spending cycle with visibility through 2027, while Sealing remains supported by specified aftermarket positions and strategic pricing. His tone was upbeat and confident, with repeated emphasis on disciplined capital allocation, organic growth, and selective M&A.

Joe Bruderek highlighted the hard numbers behind the beat and raise: sales of $338.8 million, adjusted EBITDA of $86.9 million, adjusted EPS of $2.50, and adjusted EBITDA margin of 25.6%. He noted corporate expenses of $15.7 million, including higher incentive accruals and $1.3 million of restructuring costs, and said free cash flow was more than $60 million year to date. He also pointed to $80 million of revolver debt repayment, net debt of about $500 million, leverage of 1.6x, and $77 million of cash and equivalents. On capital allocation, he said capex is moving up to $60 million to $65 million to support AST growth, while the company still paid a $0.32 quarterly dividend and has a $50 million share repurchase authorization.

Analysts focused on whether the guidance raise was mostly AST-driven, and management said the majority of the increase is indeed AST, though Sealing is also improving into the second half. On AST margins, management said the 430 basis point improvement reflected both favorable foreign exchange comparisons and stronger volume/operating leverage, with added inventory helping support customer demand. Questions also pressed on environmental reserves, and management said the increase relates to legacy uranium mine liabilities in Arizona, with cash outflows not expected to be meaningful in any given year and potentially stretching over as long as 10 years. Analysts asked about pricing, tariffs, compositional analysis and commercial vehicle; management said tariff refunds were minimal, pricing opportunities remain but are mostly targeted, compositional analysis has room to expand geographically and across applications, and commercial vehicle appears to be near the bottom with signs of gradual improvement.