Company: NPO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001164863-25-000017
Chunk: 16

Company: Enpro Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 16
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 offset by increased labor and manufacturing overhead expenses ($3.2 million) in support of new platforms and long-term growth initiatives. 

Corporate expenses for the first three months of 2025 decreased $0.9 million as compared to last year, driven by lower restructuring costs and professional fees. 

Interest expense, net in the first three months of 2025 remained relatively flat compared to the first three months of 2024.

Other expense in the first three months of 2025 decreased $4.0 million compared to the same period last year, primarily due to a 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), partially offset by higher non-service pension related costs ($0.8 million). 

The effective tax rates for the three months ended March 31, 2025 and 2024 were 24.3% and 12.6%, respectively. The  effective tax rate for the three months ended March 31, 2025 is higher than the U.S. Federal tax rate primarily driven by higher tax rates in most foreign jurisdictions, partially offset by an additional tax benefit related to share-based payment awards. The 

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effective tax rate for the three months ended March 31, 2024 is lower than the U.S. Federal tax rate primarily driven by favorable state amended return filings and additional tax benefit related to share-based payment awards, partially offset by higher tax rates in most foreign jurisdictions.

Net income was $24.5 million, or $1.15 per share, in the first three months of 2025 compared to $12.5 million, or $0.59 per share, in the first three  months of 2024. Earnings per share is expressed on a diluted basis. 

Backlog

As of March 31, 2025, the aggregate amount of transaction price of remaining performance obligations, or backlog, on a consolidated basis was $259.1 million. Approximately 95% of these obligations are expected to be satisfied within one year. There is no certainty these orders will result in actual sales at the times or in the amounts ordered. In addition, for most of our business, backlog is not particularly predictive of future performance due to shorter lead times for our leading-edge aftermarket or recurring solutions across both segments and some seasonality.

Liquidity and Capital Resources

Cash requirements for, but not limited to, working capital, capital