Company: NPO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001164863-25-000009
Chunk: 448

Company: Enpro Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 448
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23.8% in 2023 to 21.2% in 2024. The $18.7 million decrease in Adjusted Segment EBITDA was driven primarily by lower volumes ($25.5 million), higher labor costs ($1.3 million), increased selling, general, and administrative costs ($2.3 million) and a higher level of start-up expenses for LeanTeq's new production site in Arizona, partially offset by favorable sales mix ($14.7 million).

Corporate expenses for 2024 decreased $4.7 million as compared to 2023. The decrease was driven primarily by a decrease in share-price-based long-term incentive compensation expenses ($4.9 million).

Interest expense, net in 2024 increased by $4.4 million as compared to 2023 primarily due to lower interest income on cash balances following the acquisition of AMI, partially offset by lower average outstanding debt.

Other expense, net in 2024 increased by $4.4 million as compared to 2023, primarily due to the 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) and increased environmental related costs ($2.8 million) partially offset by lower non-service pension related costs ($1.4 million), income realized from the settlement of a legacy claim ($0.6 million), decreased foreign exchange losses related to an intercompany note denominated in Euros ($0.4 million) and decreased costs related to divested businesses ($0.3 million).

26

Income tax expense from continuing operations was $21.5 million in 2024 and $30.8 million in 2023. The effective tax rates for 2024 and 2023 were 22.8% and 81.6% respectively. The effective tax rate for 2024 is higher than the U.S. federal tax rate primarily driven by higher tax rates in most foreign jurisdictions, partially offset by the favorable impact of tax credits. The effect of these items resulted in a net $3.2 million increase in income tax expense from the federal statutory rate. In 2024, we had a decrease in tax expense relative to 2023, primarily driven by 2023 goodwill impairment, which is not deductible for tax purposes.

Income from continuing operations attributable to Enpro Inc. was $72.9 million, or $3.48 per share, in 2024 compared to income from continuing operations