Enerpac Tool Group (NYSE:EPAC) outlined a plan to grow organic revenue faster than its markets through fiscal 2030, while integrating its newly acquired SFE fabrication tools business and expanding profit margins.
At its 2026 Investor Day, the company introduced a growth strategy called PROPEL and set targets for annual organic revenue growth of 4% to 6% and earnings per share growth of 10% to 13% over the four-year period. Enerpac also aims for free cash flow conversion above 100% over the period.
CFO Darren Kozik said the company expects to approach $1 billion in annual revenue and a 26% adjusted EBITDA margin by fiscal 2030 through organic growth. The outlook excludes potential benefits from future acquisitions, management said.
Growth Plan Targets Market Share Gains
Enerpac estimates its addressable market, including SFE, at roughly $5.5 billion and expects it to grow 2% to 3% annually over the next four years. Its goal is to exceed market growth by 2 to 3 percentage points through sales initiatives, new products and operational improvements.
PROPEL has three pillars: growing sales, differentiating products and expanding margins. The company plans to extend its Enerpac Commercial Excellence sales program to SFE, pursue commercial synergies and invest in battery-powered tools, connected technologies and standardized product platforms.
Chief Commercial Officer Phil Jefferson said the company has added dedicated U.S. sales resources focused on data centers and related infrastructure. He cited recent wins of $5 million with a modular design and manufacturing company, $1.5 million with a U.S. engineering contractor and $825,000 with a heavy equipment rental provider.
Jefferson also said Enerpac generated $7 million in e-commerce sales in fiscal 2026, with a 55% compound annual growth rate since fiscal 2022. The company is evaluating which SFE products might be suitable for its online platform.
SFE Adds Fabrication Tools and Acquisition Pipeline
Enerpac closed its $472 million acquisition of SFE at the end of October. The business had approximately $170 million in revenue and $44 million in EBITDA for the trailing 12 months through March, according to the presentation.
Management said SFE adds more than 20% of the combined company’s sales and expands its addressable market by about $1 billion. SFE makes fabrication technologies used for applications including cutting, beveling and welding pipes and tubes.
SFE President Vinay Varma said the combined company is targeting $4 million to $6 million in adjusted EBITDA synergies by the end of the third year. He said an integration leader has been appointed and teams are identifying commercial and operational opportunities.
Kozik said Enerpac’s immediate priorities include integrating SFE and paying down debt, although the company continues to evaluate smaller and midsize acquisitions. Enerpac was approximately 2.3 times levered following the transaction, within its target range of 1.5 to 2.5 times, he said.
Margin Expansion and Fiscal 2027 Outlook
For fiscal 2027, Enerpac reiterated revenue guidance of $825 million to $845 million, including 10 months of SFE, and organic growth guidance of 4% to 6%. Kozik said the midpoint of the outlook implies approximately $200 million in EBITDA, or a 24% margin.
The company expects to invest in PROPEL and working capital in fiscal 2027. Kozik said further investment could follow if initiatives show opportunities to accelerate growth, while management expects margin improvement generally in each subsequent year, subject to market conditions and other developments.
Executive Vice President of Operations Eric Chack said Enerpac is working on sourcing, product cost reductions and potential plant consolidations. One initial product-family review reduced material costs by more than 30%, although Chack cautioned that the company does not expect to replicate that result across every product family.
Enerpac’s service business, which represents approximately 15% of pro forma revenue and carries lower margins than products, posted 9% organic growth in the fiscal fourth quarter, management said. Kozik said the company expects service growth of 2% to 3% over the longer-term planning period, while directing larger investments toward its higher-margin product businesses.
About Enerpac Tool Group (NYSE:EPAC)
Enerpac Tool Group Corp. is an industrial tools and services company that provides engineered solutions for lifting, moving, positioning, maintenance and assembly applications. Its products are used in industries such as energy, infrastructure, construction, manufacturing, mining and heavy equipment.
The company offers high-pressure hydraulic tools and systems, including hydraulic pumps, cylinders, jacks, tensioners, torque tools and specialized lifting and positioning equipment. It also provides bolting, machining, flange-management and other field services designed to support the installation, maintenance and repair of large-scale industrial assets.
Enerpac Tool Group markets products under brands that include Enerpac, Hydratight, Equalizer, Mirage, Simplex and Larzep.
