Company: NPO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048610
Chunk: 20

Company: Enpro Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 20
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 the completion of the 2024 year-end U.S. Federal income tax return. The effective tax rate for the nine months ended September 30, 2024 is consistent with the U.S. Federal tax rate as a result of higher tax rates in most foreign jurisdictions offset 

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by the favorable adjustments resulting from the completion of the 2023 year-end U.S. Federal income tax return and an additional tax benefit related to share-based payment awards.

Net income was $72.5 million, or $3.41 per share, in the first nine months of 2025 compared to $59.0 million, or $2.80 per share, in the first nine  months of 2024. Earnings per share is expressed on a diluted basis. 

Backlog

As of September 30, 2025, the aggregate amount of transaction price of remaining performance obligations, or backlog, on a consolidated basis was $249.4 million. Approximately 96% 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 expenditures, acquisitions, and debt repayments have been funded from cash balances on hand, revolver borrowings and cash generated from operations. We are proactively pursuing acquisition opportunities. Should we need additional capital, we have resources available, which are discussed in this section under the heading “Capital Resources.”

As of September 30, 2025, we held $38.0 million of cash and cash equivalents in the United States and $94.9 million of cash outside of the United States. If the funds held outside the United States were needed for our operations in the U.S., we have several methods to repatriate without significant tax effects, including repayment of intercompany loans, distributions subject to a 100 percent dividends-received deduction for income tax purposes, or distributions of previously-taxed earnings. 

Because of the transition tax, GILTI, and Subpart F provisions, undistributed earnings of our foreign subsidiaries totaling $254.1 million at December 31, 2024 have been subjected to U.S. income tax or are eligible for the 100 percent dividends-received deduction under Section 245