EnPro Industries (NPO) stock surged over 5% in the pre-market session on Wednesday after the company reported better-than-expected Q4 2024 results and provided an upbeat outlook for 2025.
The industrial technology company reported adjusted earnings per share of $1.57 for Q4 2024, exceeding analysts' consensus estimate of $1.47. Revenue of $258.4 million also topped expectations of $250.1 million, driven by strong performance in the Sealing Technologies segment and strategic pricing actions.
Adjusted EBITDA rose 24.1% year-over-year to $58.2 million, reflecting improved profitability across the Sealing Technologies segment and continuous improvement initiatives. The company's adjusted EBITDA margin expanded by 180 basis points to 22.5%.
For the full year 2025, EnPro expects revenue growth in the low-to-mid single digit range and adjusted EBITDA between $262 million and $277 million. The company's adjusted EPS guidance for 2025 is $7.00 to $7.70, slightly ahead of the consensus estimate of $7.54.
EnPro's strong Q4 performance was driven by the Sealing Technologies segment, which saw sales increase by 10.9% year-over-year, benefiting from robust demand in aerospace and nuclear markets, as well as strategic pricing actions. The segment's adjusted EBITDA surged 31.8%, reflecting positive mix and pricing initiatives.
While the Advanced Surface Technologies segment experienced a 6.4% decline in sales due to continued weakness in semiconductor capital equipment spending, the company remains optimistic about growth opportunities in areas such as generative AI, autonomous driving, and robotaxis.