Company: NPO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048610
Chunk: 21

Company: Enpro Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 21
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A of the Internal Revenue Code provided in the Tax Cuts and Jobs Act. Additionally, undistributed earnings are estimated to be $181.4 million as of September 30, 2025. Whether through the application of the 100 percent dividends-received deduction, or distribution of these previously-taxed earnings, we do not intend to distribute foreign earnings that will be subject to any significant incremental U.S. or foreign tax. During the first nine months of 2025, we repatriated $164.6 million. We have determined that estimating any tax liability on our investment in foreign subsidiaries is not practicable. Therefore, we have not recorded any deferred tax liability on undistributed earnings of foreign subsidiaries.

Cash Flows

Operating activities provided $138.5 million of cash in the first nine months of 2025 and $103.5 million of cash in the first nine months of 2024.  The year-over-year increase was primarily driven by higher net income, lower cash payments of incentive compensation, and lower interest payments due to lower outstanding debt. 

Investing activities used $32.7 million of cash in the first nine months of 2025 compared to $229.5 million of cash used in investing activities last year. This decrease is primarily driven by the 2024 acquisition of AMI ($209.4 million).

Financing activities used $220.9 million of cash in the first nine months of 2025, primarily driven by $871.6 million in repayments of debt, $8.0 million in debt issuance costs, and $19.7 million used for dividends, partially offset by $680 million in proceeds from issuing debt. Financing activities in the first nine months of 2024 used $44.0 million, primarily from $18.3 million used for the acquisition of Alluxa non-controlling interests, $19.0 million used for dividends paid, and $6.1 million in net borrowings.

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Capital Resources and Uses

Senior Secured Credit Facilities. On April 9, 2025, we entered into a Second Amendment to Third Amended and Restated Credit Agreement dated as of April 9, 2025 (the “Amended Credit Facility Agreement”) among the Company and our subsidiary, EnPro Holdings, Inc. ("EnPro Holdings"), as borrowers, certain foreign subsidiaries of the Company from time to time party thereto, as designated borrowers, the guarantors party thereto, the lenders party thereto and Bank of America, N