Company: NPO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048610
Chunk: 19

Company: Enpro Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 19
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 $36.6 million, compared to $266.6 million in the prior-year period. Continued growth in leading-edge precision cleaning solutions and optical coatings, as well as improved demand for certain semiconductor tools and assemblies drove the increase in sales. 

Adjusted Segment EBITDA of $62.1 million in the first nine months of 2025 increased 11.7%, or $6.5 million, from $55.6 million in the comparable period of 2024. Adjusted Segment EBITDA margin of 20.5%  was down slightly from 20.9% last year. Contribution from the increase in sales was partially offset by increased personnel and qualification costs supporting new platforms and long-term growth initiatives ($10.0 million), a mix shift toward certain semiconductor tools and assemblies ($4.6 million), and unfavorable foreign currency exchange rates ($2.6 million).

Corporate expenses for the first nine months of 2025 of $33.6 million increased slightly ($0.6 million) compared to last year.

Interest expense, net in the first nine months of 2025 decreased by $4.8 million compared to the first nine months of 2024 primarily driven by lower outstanding debt in 2025.

Other expense in the first nine months of 2025 decreased $2.1 million compared to the same period last year, primarily due to the prior-year increase in the valuation reserve on a long-term promissory note received in partial consideration for the sale of a non-strategic business in 2020 ($4.5 million), a decrease in environmental costs ($3.0 million) and decreased foreign exchange losses related to an intercompany note denominated in Euros ($1.1 million), partially offset by a loss on the extinguishment of debt ($1.7 million), higher costs related to previously divested businesses ($1.5 million), higher non-service pension related costs ($2.2 million), and an increase to insurance receivables in the prior year as a result of selling a claim from an insolvent carrier related to legacy matters ($0.6 million).

The effective tax rates for the nine months ended September 30, 2025 and 2024 were 27.4% and 21.0%, respectively. The effective tax rate for the nine months ended September 30, 2025 is higher than the U.S. Federal tax rate primarily driven by higher tax rates in most foreign jurisdictions and state tax on domestic earnings, as well as unfavorable adjustments resulting from