Enerpac Tool Group Reports Q2 Earnings

Company sees product growth but service pressure in EMEA region

Mar. 27, 2026 at 11:06am

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Enerpac Tool Group reported second-quarter fiscal 2026 results, with revenue up 2% organically led by accelerating product growth in its Industrial Tools & Service segment and continued momentum at Cortland. However, the company acknowledged ongoing near-term pressure in its service business, particularly in EMEA, prompting additional restructuring actions and a narrowed full-year outlook.

Why it matters

Enerpac Tool Group is a global provider of industrial tools and solutions, so its quarterly results provide insight into the state of manufacturing, energy, infrastructure, and other key end markets. The company's commentary on product versus service performance, regional dynamics, and restructuring efforts offer a window into broader industrial sector trends.

The details

Second-quarter revenue was $155 million, up 2% organically. Industrial Tools & Service sales increased 1% organically, as a 6% organic increase in product sales was partially offset by a 17% decline in service revenue. The company cited strength in power generation, infrastructure, and defense end markets, but weakness in industrial MRO. In the Americas, the company delivered 4% growth, while EMEA revenue declined 1% due to a 21% drop in service revenue. Gross margin declined 410 basis points year over year, pressured by lower service volume. Enerpac recorded a $3.3 million restructuring charge primarily related to the service business and expects initial savings benefits beginning in the third quarter.

  • Enerpac reported second-quarter fiscal 2026 results on March 27, 2026.
  • The company expects revenue from a new five-year contract award with a major oil and gas company to begin flowing in the fourth quarter of fiscal 2026.

The players

Enerpac Tool Group

A global provider of high-pressure hydraulic tools, controlled force products and precision positioning equipment.

Darren Kozik

Chief Financial Officer of Enerpac Tool Group.

Randy Sternlieb

Chief Executive Officer of Enerpac Tool Group.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, Grocery employee

What’s next

The company expects initial savings benefits from its service business restructuring to begin in the third quarter of fiscal 2026, with about a one-year payback period.

The takeaway

Enerpac Tool Group's results highlight the challenges facing industrial companies, with strength in product sales offset by pressure in the service business, particularly in the EMEA region. The company's restructuring efforts and new contract wins suggest it is taking steps to adapt to the evolving market conditions.