Enerpac Tool Group Surpasses 10-Quarter Growth Milestone as Industrial Tools and Services Segment Delivers Strong Performance
Enerpac Tool Group, a leading provider of industrial tools and services, has achieved a significant milestone with its strongest product sales growth in over a decade. The company's Industrial Tools and Service (ITNS) segment saw a 6% organic increase in the second quarter of fiscal 2026, surpassing the highest growth rate in 10 quarters since the fourth quarter of fiscal 2023.
"We are pleased to report that our industrial tools and service business has accelerated its growth, with product sales up 6% organically year-over-year," said Paul Sternlieb, President and Chief Executive Officer of Enerpac Tool Group. "This represents the highest growth in products we've enjoyed in 10 quarters since the fourth quarter of fiscal 2023."
According to the company's recent conference call transcript, the ITNS segment experienced favorable trends, with overall product order rates growing mid-single digits and gains in each of its three geographic regions. The segment's services business also saw significant changes, as Enerpac took decisive actions to address a market slowdown in the European, Middle Eastern, and African (EMEA) region.
The company initiated a restructuring process to right-size its Hydratight service operation in the region and reduce headcount to align with current market conditions. This strategic move is expected to support Enerpac's transition towards higher-margin service business and profitable growth objectives.
One notable highlight from the quarter was the announcement of a 5-year contract award with a major oil and gas company operating in the UK North Sea. The $several million annually contract will provide maintenance and pipeline service work, further solidifying Enerpac's position as a leading provider of industrial tools and services.
The contract win showcases the company's expertise and reputation for delivering high-quality technical know-how, value-added support, and world-class job performance. As Paul Sternlieb noted, "The customer indicated that Hydratight was selected for this critical work as they felt we are the only ones who could ensure reliably leak-free results."
Across all segments, Enerpac Tool Group demonstrated strong performance in various end markets, including power generation, infrastructure, and defense. The company's Cortland segment captured exceptional growth of 27% in the second quarter due to its success in generating new projects.
The Americas region delivered solid 4% growth, with nearly 6% year-over-year growth on the product side, offset by an 8% decline in service revenue. Despite a soft industrial MRO market, Enerpac continued to grow its power generation and infrastructure businesses globally.
As Darren Kozik, CFO of Enerpac Tool Group, noted, "We continue to enjoy growth in power generation, infrastructure, and defense end markets on a global basis." The company's performance demonstrates its ability to adapt and thrive in various market conditions, making it an attractive option for customers seeking reliable and high-quality industrial tools and services.
