Company: NPO
Filing Date: 2025-03-24
Form Type: DEF 14A
Source: 0001171200-25-000088
Chunk: 18

Company: Enpro Inc.
Filing Date: 2025-03-24
Form: DEF 14A
Chunk 18
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-term shareholder value. Our long-term value creating strategy remains unchanged. Our Sealing Technologies segment produced excellent results in 2024, despite overall sluggish demand, particularly in our commercial vehicle market, which represents 17% of total company revenue. Commercial excellence, disciplined pricing initiatives, organic investment, cost management, operational improvements, despite flat revenue for the total segment in 2024, drove segment profitability higher versus last year’s record performance. In January 2024, we completed the acquisition of Advanced Micro Instruments, Inc. (“AMI”) as we continue to broaden our leading-edge capabilities into analytical equipment and sensing applications. Differentiated market and technology positions driving organic growth investment and our applied engineering strengths and focus on the aftermarket, are key long-term drivers for continued success in the segment. Our Advanced Surface Technologies (“AST”) segment, largely participating in the semiconductor market, performed well despite continued soft conditions in the overall industry. Our exposures on leading-edge applications driving artificial intelligence and increasing complex chip architectures, and our advanced cleaning solutions, performed well, while overall semiconductor capital equipment spending remained slow. Throughout this slower demand environment, we continue to invest in areas where we are strongest, while implementing our continuous improvement playbooks to drive optimized segment level performance. Strategic highlights. In January 2024, we completed our acquisition of AMI, located in Costa Mesa, California, for $210 million in cash. The company generated significant free cash flow, and the absence of further acquisition actions in 2024, led to leverage at the low-end of our desired range at the end of the year. We have ample financial and strategic flexibility to continue executing on our long-term value-creating strategy. Financial highlights. Reported sales decreased 1% in 2024, with more than half of our company’s served markets in a slow demand environment. Sales for the Sealing Technologies segment sales increased more than 4%, driven by strategic pricing and sales optimization initiatives, along with strong demand in nuclear energy, aerospace, space and the partial-year contribution from the acquisition of AMI. The AST segment’s sales were down 9.7%, as the semiconductor industry remained slow again in 2024. Our balance sheet and our ability to generate operating cash flow are strong, giving us ample capacity for reinvestment in several future growth initiatives. Shareholder engagement At our 2024 annual meeting held in May, we asked our shareholders to support a non-binding resolution to approve the compensation paid to our named executive officers as reported in our proxy statement for that meeting. Of the shares voted “for