Company: NPO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001164863-25-000009
Chunk: 207

Company: Enpro Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 207
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9 %(0.2)%(0.3)%4.4 %Advanced Surface Technologies— %— %(9.7)%(9.7)%

Following is a discussion of operating results for each segment during 2024 compared to 2023:

Sealing Technologies. Sales of $687.2 million in 2024 reflect a 4.4% increase compared to $658.4 million in 2023. Excluding the unfavorable foreign exchange translation ($1.5 million) and the sales from a recent acquisition ($32.1 million), sales were down 0.3% or $1.8 million.  Organic sales were relatively flat as strong demand in aerospace and nuclear markets, strategic pricing actions, and recovery in food and pharmaceuticals and European general industrial markets were offset by a sharp decline in commercial vehicle OEM and Asian industrial markets.

Segment AEBITDA of $224.1 million in 2024 increased 16.5% from $192.3 million in 2023. Segment AEBITDA margin increased from 29.2% in 2023 to 32.6% in 2024. Excluding the unfavorable foreign exchange translation ($0.7 million) and the contribution from a business recently acquired of ($16.9 million), Adjusted Segment EBITDA increased 8.1%, or $15.6 million. The increase in Segment AEBITDA was driven primarily by pricing gains ($20.0 million), favorable sales mix ($5.7 million), decreased labor and overhead costs ($3.9 million), and lower selling, general, and administrative costs ($1.5 million), partially offset by decreased sales volume ($15.5 million).

Advanced Surface Technologies. Sales of $362.2 million in 2024 reflect a 9.7% decrease compared to $401.2 million in 2023 driven primarily by continued weakness in semiconductor capital equipment spending, partially offset by solutions serving leading-edge applications. 

Segment AEBITDA of $76.7 million in 2024 decreased 19.6% from $95.5 million in 2023. Segment AEBITDA margin decreased from 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