Oct 29, 2026 earnings call — SFE acquisition and fiscal 2027 guidance
Completed SFE acquisition; guided fiscal 2027 revenue of $825 million-$845 million with organic growth 4%-6%.
Revenue $0.2B (est $0.2B) · EPS $0.53 (est $0.52) · Next-quarter revenue outlook $0.8B–$0.8B
Key quotes
"As announced yesterday, we are very pleased to have completed the acquisition of SFE Group with the closing effective October 28th."
"For the full year, the Americas drove our IT&S growth up 10%, led by Heavy Lifting Technology as the U.S. benefited from a strengthening industrial sector and reshoring activity."
"Fiscal 2026 free cash flow of $120 million expanded 30% year-over-year, driven by strong collections activity, inventory management, and reduced cash taxes."
Analyst Q&A 4
Assumptions behind fiscal 2027 guidance
Q (Will Gildea · CJS): He asked management to expand on the assumptions in the guidance. He also asked about drivers of Americas growth, reasons for lower margins in the quarter, and how to think about leverage, cash generation and the new credit facility.
A: They said SFE just closed and adds premium products, over 70% of SFE revenue in the Americas and expands addressable market by about $1 billion. They said 2027 includes only 10 months of SFE, organic sales of roughly 4%-6%, and investments back into SFE and PROPEL; at the midpoint they expect about a 24% EBITDA margin and $2.07 EPS, and leverage today is around 2.3x with a focus on debt paydown while keeping opportunistic M&A or buybacks on the table.
Data center exposure and one-time items
Q (Ross Sparenblek · William Blair): He asked if there were any one-time items in the quarter and whether data center or HLT sales are one-time or recurring. He also asked if equipment moves between job sites and about commercial efforts and competition.
A: They said there were no meaningful one-offs and the quarter was broad based. They said their exposure is usually one step back from hyperscalers—selling to makers of equipment that goes into data centers—and most work revolves around smaller HLT gantries that are mobile, have shorter lead times, generate repeat orders, and they are investing in inventory, operations, and commercial sellers focused on the data center market.
"Most of the work that we see tends to revolve around our smaller HLT gantries, which are really a very nice substitute for more permanent overhead crane solutions." — Paul Sternlieb (CEO)
Approved vendor wins and R&D plans
Q (Steve Silver · Argus): He asked for more color on approved vendor list wins and their implications. He also asked whether R&D spending will be accelerated in absolute terms or as a percent of sales.
A: They said the vendor wins show commercial traction and their ECX sales process is taking share in infrastructure, data center, power gen and defense, and approved vendor lists make Enerpac an easy one-stop option. They said they launched 11 products in fiscal 2026, expect a similar or better target in fiscal 2027, and that they will continue to increase their level of investment in R&D while also supporting field service and applications expertise.
"We have been, and we will continue to increase our level of investment in R&D here." — Paul Sternlieb (CEO)
Integration costs, inflation, and SFE accretion
Q (Ross Sparenblek · William Blair): He asked for specifics on integration and growth investment costs for 2027, whether material inflation is an issue, the core incrementals before new costs, and how SFE accretion and organic EPS should be thought about.
A: They said pure integration cost is in the ballpark of $10 million-$14 million, plus some recurring core investments in SFE for things like SEC reporting and legal. They said material inflation is not exorbitant and looks similar to 2026, they plan to offset inflation with pricing (typically one to two price increases a year) and productivity, and on SFE accretion they said you must adjust for 10 months, the interest rate environment, and incremental investments which could result in a bit less than the simple pro rata accretion.
"We think that is in the ballpark of $10 million-$14 million." — Darren Kozik (CFO)