Industrial technology solutions provider EnPro Industries (NYSE: NPO) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 14.3% year on year to $295.4 million. Its non-GAAP profit of $1.99 per share was 4% above analysts’ consensus estimates.

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"Enpro delivered a strong finish to 2025 with double-digit revenue growth and robust profitability, supported by best-in-class performance in Sealing Technologies and continued sales improvement in AST," said Eric Vaillancourt, President and Chief Executive Officer.

Company Overview

Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Enpro’s 1.3% annualized revenue growth over the last five years was weak. This fell short of our benchmarks and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Enpro’s annualized revenue growth of 3.9% over the last two years is above its five-year trend, which is encouraging.

This quarter, Enpro reported year-on-year revenue growth of 14.3%, and its $295.4 million of revenue exceeded Wall Street’s estimates by 5.1%.

Looking ahead, sell-side analysts expect revenue to grow 9.6% over the next 12 months, an improvement versus the last two years. This projection is healthy and implies its newer products and services will spur better top-line performance.

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Operating Margin

Enpro has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 13.5%. This result isn’t surprising as its high gross margin gives it a favorable starting point.

Looking at the trend in its profitability, Enpro’s operating margin rose by 2.7 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q4, Enpro generated an operating margin profit margin of 11.2%, down 3.8 percentage points year on year. Since Enpro’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Enpro’s EPS grew at an astounding 20.8% compounded annual growth rate over the last five years, higher than its 1.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Enpro’s earnings to better understand the drivers of its performance. As we mentioned earlier, Enpro’s operating margin declined this quarter but expanded by 2.7 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Enpro, its two-year annual EPS growth of 9.9% was lower than its five-year trend. We hope its growth can accelerate in the future.

In Q4, Enpro reported adjusted EPS of $1.99, up from $1.57 in the same quarter last year. This print beat analysts’ estimates by 4%. Over the next 12 months, Wall Street expects Enpro’s full-year EPS of $7.91 to grow 11%.

Key Takeaways from Enpro’s Q4 Results

We were impressed by how significantly Enpro blew past analysts’ revenue expectations this quarter. We were also glad its full-year EBITDA guidance slightly exceeded Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $269.38 immediately following the results.

Big picture, is Enpro a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).