Enpro (NPO) AI Stock Analysis

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Enpro

(NYSE:NPO)

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Rating:68Neutral

Price Target:$310.00▲(14.17% Upside)

Action:reiterated

Date:08/05/26

The score is driven by solid financial stability and cash generation (deleveraging balance sheet and strong free cash flow) plus a notably upbeat earnings update with raised guidance and strong segment momentum (especially AST). These positives are offset by expensive valuation (very high P/E with low yield) and only neutral-to-mixed technical momentum.

Positive Factors

AST growth and margin expansionAdvanced Surface Technologies is showing strong structural momentum, combining rapid revenue growth with substantial EBITDA and margin expansion. Strengthening orders, improving book-to-bill, and customer visibility into 2027 support the segment’s prospects for sustained growth over the coming quarters.

Negative Factors

Legacy environmental liabilitiesThe increased environmental reserve creates a lasting liability that can require future remediation spending and management attention. Although meaningful cash outflows are not expected for roughly three years, the remediation period may extend up to a decade, preserving uncertainty around long-term cash obligations.

Enpro Key Performance Indicators (KPIs)

Revenue by GeographyBreaks down sales by region to show where Enpro generates its revenue and where growth or risk is concentrated. Highlights exposure to regional economic slowdowns, currency headwinds, supply-chain constraints, and opportunities from faster-growing markets.

Chart Insights

U.S. revenue is the steady growth engine while Europe shows modest improvement; the notable story is the abrupt APAC emergence together with a large RoW decline in the latest quarter — most likely a reporting/reclassification and acquisition- or capacity-driven shift (consistent with management’s comments on AST momentum, Taiwan capacity and recent bolt‑ons). That reallocation helps explain the upgraded guidance, but investors should normalize for the reporting change and monitor AST order conversion and qualification risk to confirm this isn’t a one‑time accounting/assignment effect.

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The Fly

Enpro (NPO) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.75B
Dividend Yield: 0.47%
Average Volume (3M): 177.05K
Price to Earnings (P/E): 130.5
Beta (1Y): 1.31
Revenue Growth: 13.25%
EPS Growth: -48.12%
Country: US
Employees: 4,000
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Enpro Business Overview & Revenue Model

Company Description

EnPro Industries, Inc. is a global enterprise focused on the development, manufacturing, sales, and support of advanced industrial components. Its operations span the United States, Europe, and numerous other international regions. The company's busi...

How the Company Makes Money

Enpro makes money primarily by selling engineered products and related services to industrial and technology customers through its two operating segments. 1) Sealing Technologies revenue - Product sales: The largest revenue stream is the sale of engi...

Enpro Earnings Call Summary

Earnings Call Date:Aug 03, 2026(Q2-2026)|% Change Since:-18.64%|Next Earnings Date:Nov 02, 2026

Earnings Call SentimentPositive

The call conveyed strong operational momentum: meaningful top-line growth, notable margin expansion (particularly in AST), raised full-year guidance, solid free cash flow and successful integration of recent acquisitions. Headwinds were limited but material—commercial vehicle softness, regional pockets of weakness in Europe and increased legacy environmental reserves and corporate expenses. Overall the positives (strong revenue, EBITDA growth, raised guidance, AST backlog and healthy balance sheet) substantially outweigh the identified lowlights.

Positive Updates

Strong Top-Line Growth

Total company sales of $338.8M in Q2 2026, up 17.6% year-over-year, driven by broad-based demand and recent acquisitions.

Negative Updates

Commercial Vehicle Weakness

Commercial vehicle end market—primarily trailer exposure—remained soft in Q2; management does not expect a meaningful improvement in commercial vehicle markets within the 2026 guidance and characterized recovery as still early.

Company Guidance

Enpro raised full‑year 2026 guidance, now expecting total sales growth of 14%–16% (up from 10%–14%), adjusted EBITDA of $330M–$340M (up from $315M–$330M) and adjusted diluted EPS of $9.30–$9.80 (up from $8.85–$9.50), using a 25% normalized tax rate and 21.4M fully diluted shares; Q2 revenue was $338.8M (+17.6% YoY) with adjusted EBITDA $86.9M (25.6% margin). Management said the majority of the raise is AST‑driven, with AST now expecting ~20% YoY growth in H2 and segment revenue growth and adjusted EBITDA margin approaching 25% exiting the year (AST long‑term target: high single‑ to low double‑digit organic growth and ~30% adjusted EBITDA margin ±250 bps by 2030). Sealing Technologies is expected to deliver high‑single‑digit organic growth in H2 excluding AlpHa/Overlook (the two acquisitions are forecast to contribute $60M–$65M in 2026), with Sealing margins at the high end of its long‑term 30% ±250 bps target. Balance sheet and cash metrics include >$60M YTD free cash flow, YTD capex + capitalized software ~ $30M (2026 capex guidance raised to $60M–$65M from ~ $50M), $80M revolver paydown bringing trailing‑12m net leverage to ~1.6x, net debt ~ $500M, a $0.32/share Q2 dividend ($6.9M) and a $50M repurchase authorization.

Enpro Financial Statement Overview

Summary

Overall fundamentals are solid but not pristine. Balance sheet leverage has improved materially (debt-to-equity down to ~0.36) and cash generation is strong (TTM free cash flow ~$190M with +13% growth). The main drag is earnings quality/consistency: net margins are low (~3.6%) with notable profit volatility and subdued ROE (~2.8%).

Income Statement

61Positive

Balance Sheet

72Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.22B	1.14B	1.05B	1.06B	1.10B	840.40M
Gross Profit	523.50M	487.50M	444.80M	426.80M	423.30M	328.10M
EBITDA	199.90M	194.40M	235.60M	177.20M	167.00M	146.00M
Net Income	44.10M	40.50M	72.90M	22.20M	205.10M	177.90M
Balance Sheet
Total Assets	2.66B	2.66B	2.49B	2.50B	2.65B	2.97B
Cash, Cash Equivalents and Short-Term Investments	77.00M	114.70M	236.30M	369.80M	334.40M	338.10M
Total Debt	588.50M	668.00M	694.70M	656.80M	799.90M	1.14B
Total Liabilities	1.07B	1.12B	1.06B	1.07B	1.23B	1.65B
Stockholders Equity	1.59B	1.54B	1.43B	1.41B	1.40B	1.27B
Cash Flow
Free Cash Flow	163.40M	159.20M	130.00M	173.90M	97.60M	127.00M
Operating Cash Flow	218.90M	201.20M	162.90M	207.80M	127.40M	141.90M
Investing Cash Flow	-323.30M	-316.90M	-241.50M	-7.40M	297.60M	-651.20M
Financing Cash Flow	75.50M	-17.40M	-50.50M	-170.90M	-402.10M	618.20M

Enpro Technical Analysis

Technical Analysis SentimentNegative

Last Price271.53

Price Trends

50DMA298.02Negative

100DMA318.32Negative

200DMA295.83Negative

Market Momentum

MACD-8.27Positive

RSI37.81Neutral

STOCH54.42Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPO, the sentiment is Negative. The current price of 271.53 is below the 20-day moving average (MA) of 293.74, below the 50-day MA of 298.02, and below the 200-day MA of 295.83, indicating a bearish trend. The MACD of -8.27 indicates Positive momentum. The RSI at 37.81 is Neutral, neither overbought nor oversold. The STOCH value of 54.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NPO.

Enpro Risk Analysis

Enpro disclosed 28 risk factors in its most recent earnings report. Enpro reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.The conflict between the United States, Israel, and Iran and related geopolitical instability may adversely affect our business.Q2, 2026

Enpro Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

NPO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IEX	79Outperform	$17.18B	32.39	13.31%	1.24%	6.93%	14.08%
GEV	76Outperform	$227.06B	22.31	85.62%	0.23%	16.82%	518.92%
ITT	75Outperform	$17.75B	38.77	10.35%	0.76%	28.07%	-19.95%
NPO	68Neutral	$5.75B	130.54	2.84%	0.47%	13.25%	-48.12%
GTES	67Neutral	$6.03B	16.43	10.70%	―	3.98%	56.96%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLS	63Neutral	$10.02B	39.51	11.35%	1.10%	0.21%	-42.26%

* Industrials Sector Average

Performance Comparison

NPO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NPO	Enpro Industries, Inc.	271.53	38.78	16.66%
FLS	Flowserve	79.01	8.00	11.27%
IEX	Idex Corporation	233.84	67.87	40.89%
ITT	ITT Corporation	198.50	14.41	7.83%
GTES	Gates Industrial Corp	23.83	1.70	7.68%
GEV	GE Vernova Inc.	857.87	278.02	47.95%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 05, 2026

Enpro AI Stock Analysis