Company: NPO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001164863-25-000017
Chunk: 15

Company: Enpro Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 15
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.7)%4.5 %4.7 %Advanced Surface Technologies— %— %9.1 %9.1 %

Discussion of year-over-year operating performance for each segment for the first three months of 2025: 

Sealing Technologies: Sales of $179.6 million in the first three months of 2025 increased 4.7% compared to $171.6 million last year. Excluding unfavorable foreign exchange translation ($3.0 million) and partial contribution from an acquisition completed in late January 2024 ($3.2 million), sales were up 4.5%, or $7.8 million. Higher demand increased sales $4.7 million, with pricing and mix contributing an additional $3.1 million. Strength in aerospace, general industrial and food and pharmaceutical drove the increase in sales, offset in part by weakness in the commercial vehicle market. 

Adjusted Segment EBITDA of $58.7 million in the first three months of 2025 increased 10.8% from $53.0 million last year. Adjusted Segment EBITDA margin of 32.7% in the first three months of 2025 expanded 180 basis points from 30.9% last year. Excluding the unfavorable foreign exchange translation ($1.2 million) and partial contribution from an acquisition completed in late January 2024 ($1.6 million), Adjusted Segment EBITDA increased 10.0%, or $5.3 million. The increase in adjusted segment EBITDA was primarily driven by the increase in sales ($7.3 million), partially offset by increased selling, general, and administrative expense ($2.0 million) primarily due to unfavorable foreign currency exchange rates, and increases in wages and professional fees.

Advanced Surface Technologies: Sales of $93.8 million in the first three months of 2025 increased 9.1%, or $7.8 million, compared to $86.0 million last year. Continued growth in leading-edge precision cleaning solutions, increased demand for optical coatings and filter solutions and strength in aerospace applications drove the increase in sales. 

Adjusted Segment EBITDA of $20.5 million in the first three months of 2025 increased 18.5% from $17.3 million last year. Adjusted Segment EBITDA margin expanded 180 basis points to 21.9% from 20.1% last year, driven by the increase in sales ($6.4 million), partially