EPAC News & Events

Weakness in Semiconductors, Semi Equipment, and Memory weighed on sentiment in Tuesday trading, sending the tech-dominated Nasdaq down by over 1%.  Technology was also the third worst performing sector in the S&P 500, though it was Industrials - the sector heavily involved in the AI capex buildout - that was the worst performing space in the benchmark index.  Among the most notable decliners in the two sectors were Intel, Teradyneand Generacwith losses of nearly 10% and with all three names hitting multi-week lows.The winner circle was mostly occupied by Energy names - Exxon Mobiland Chevronwere up nearly 4%, though it was Occidental Petroleumleading the index with a near-6% gain.  Software names - which have recently traded in opposition to AI-buildout related tech stocks also benefited.  Workdaygained 4% and Intuitrallied 3%.In the evening hours, investors are monitoring re-escalation of conflict in the Middle East.  Following overnight strikes on commercial vessels by Iran in the Strait of Hormuz, U.S. military has retaliated with strikes on Iranian targets.  WTI Crude Oil futures are up as a result and Index futures are lower - WTI is above $72 per barrel while S&P e-minis and Nasdaq 100 are off by 0.1%.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Penguin Solutionsup 5.9%ALSO HIGHER -Enerpac Tool Groupup 7.4% after announcing SFE Group acquisitionTransoceanup 1.4% after insider buyingDOWN AFTER EARNINGS -Kura Sushi USAdown 7.3%Saratoga Investmentdown 3.0%ALSO LOWER -FuelCell Energydown 18.0% after equity offering

Changes FY26 revenue view to $635M-$650M from $635M-$645M. Consensus is for FY26 EPS $1.89 and for revenue $640.67M. "We were pleased with the solid organic growth in our product business as well as the sequential improvement in Service," said Darren Kozik, Executive Vice President and CFO. "While we continue to implement the Service improvement plan, we expect to see near-term pressure from the Service business and geopolitical events."

Reports Q3 revenue $167.6M, consensus $164.5M. "We were pleased with the performance of our business and the solid growth we delivered in the Q3," said Paul Sternlieb, Enerpac Tool Group's President & CEO. "Within the Industrial Tool & Service segment, product sales increased 5 percent organically year over year, reflecting the underlying strength of the business. While we saw continued market challenges in the quarter due to the conflict in the Middle East, we are encouraged by the strong sequential growth in our Service business and expect to see continued improvement as we realize the benefits of our focused commercial activities and restructuring actions over the coming quarters."

Enerpac Tool Group announced it has entered into a definitive agreement with SFEG Holdings, a portfolio company of Gladstone Investment Corporation, to acquire Specialized Fabrication Equipment Group for approximately $472M in cash. The purchase price represents a multiple of 10.6x trailing-twelve-month adjusted EBITDA and 9.5x trailing adjusted EBITDA with synergies anticipated to be realized within three years following the acquisition. SFE Group generated on a trailing twelve months basis sales of approximately $170M and approximately $44M of adjusted EBITDA. Headquartered in Houston, Texas, SFE Group is a global provider of specialized fabrication, welding, portable machining, and material-handling equipment serving critical industries. SFE Group operates a portfolio of 12 well-established brands, including Climax, B&B Sumner, Axxair, Sumner Material Lifts, TAG, Mathey Dearman, Magnatech, Bortech, Fit-Up Pro, H&S Tool, PPM, and Calder, with leading market positions and a reputation for quality, durability, reliability, and technical expertise. The acquisition is expected to be funded with cash on hand and borrowings under the Company's senior credit facility, which was amended in connection with the execution of the acquisition agreement to increase the revolving credit facility thereunder from $400M to $625M. Net debt-to-adjusted EBITDA is expected to be approximately 2.8 times upon closing. The transaction is expected to close in the Q1 of FY27 and is subject to regulatory approvals and customary closing conditions.