Enerpac Tool Group (EPAC) Q1 2026 Revenue Decline Tests Bullish Undervaluation Narrative

Enerpac Tool Group (EPAC) kicked off Q1 2026 with revenue of about $144 million and EPS of $0.36, alongside trailing twelve month revenue of roughly $616 million and EPS of $1.68 that frame the latest quarterly print in a broader uptrend. Over the past few quarters, the company has seen revenue move from around $159 million in Q3 2025 and $168 million in Q4 2025 to $144 million in Q1 2026, while quarterly EPS tracked from $0.41 and $0.52 down to $0.36. This sets up a story where investors will be weighing resilient profitability against the quarter’s softer top line as they judge how durable margins really are.

See our full analysis for Enerpac Tool Group.

With the latest numbers on the table, the next step is to see how this mix of revenue, EPS, and margins lines up with the key narratives investors have been using to frame Enerpac’s outlook.

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Margins Stay Solid Around 14.6 Percent

• On a trailing twelve month basis, Enerpac generated about $615.9 million of revenue and $90.2 million of net income, which works out to a net margin of roughly 14.6 percent versus 14.4 percent a year earlier.
• Analysts' consensus view ties this stable margin picture to long term drivers like infrastructure and renewable spending, but also flags that ongoing industrial softness and service mix pressure can still pull on profitability.
  • Consensus commentary highlights that infrastructure and renewables demand is supporting "sustained revenue growth and improving profit margins," which fits with margins nudging up to 14.6 percent while revenue over the last year climbed from about $589.5 million to $615.9 million.
  • At the same time, the same narrative points to margin pressures from tariffs and project mix, echoing how one year earnings growth of 5.3 percent sits well below the 34.9 percent per year pace seen over five years, showing profitability is improving more steadily than rapidly.

5 Point 3 Percent Earnings Growth vs 34 Point 9 Percent History

• Over the last twelve months, earnings grew about 5.3 percent, which is noticeably lower than Enerpac's five year average earnings growth rate of roughly 34.9 percent per year.
• What is surprising for the bullish narrative is that, while bulls lean on long term growth drivers like acquisitions and innovation, the latest 5.3 percent annual earnings growth is much softer than that 34.9 percent five year trend.
  • The bullish case emphasizes disciplined acquisitions and commercial execution as engines for "long term earnings improvement," yet trailing EPS of about $1.68 is only modestly above the roughly $1.51 level from two years earlier, which is consistent with a slower recent step up.
  • Bulls also point to expanding higher margin service offerings and R and D productivity as catalysts for faster profit growth, but current forecasts of around 14.7 percent annual earnings growth still sit below the historical 34.9 percent, suggesting the expected ramp is more measured than the earlier breakout phase.

Analysts watching Enerpac now are asking whether the step down from 34.9 percent to 5.3 percent earnings growth is a pause before another leg up or a sign that a more mature growth phase is setting in, making execution on those service and innovation plans critical for the bullish case. 🐂 Enerpac Tool Group Bull Case

Valuation Discount vs 55 Point 05 DCF Fair Value

• With the stock at about $35.90, Enerpac is trading roughly 34.8 percent below a DCF fair value estimate of $55.05 and also on a trailing P or E of 21.1 times, compared with 25.4 times for the US Machinery industry and about 43.8 times for peers.
• Skeptics focusing on the bearish narrative argue that softer industrial demand and tariff costs can justify a lower multiple, yet the current 21.1 times trailing P or E and discount to the $55.05 DCF fair value suggest the market is already pricing in some of those headwinds.
  • Bears highlight Western Europe softness and incremental $12 million in annualized tariffs as risks to revenue and margins, which line up with quarterly revenue easing from around $167.5 million in Q4 2025 to $144.2 million in Q1 2026.
  • Even so, analysts still project about 5.7 percent annual revenue growth and 14.7 percent annual earnings growth, so the combination of that outlook with a valuation below both the DCF fair value and industry P or E indicates the current price reflects a cautious view on hitting those targets rather than optimism.

Investors who think Enerpac can deliver on those mid teens earnings growth forecasts may see a gap between the 21.1 times multiple today and the value implied if the $55.05 DCF fair value is reached. 🐻 Enerpac Tool Group Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Enerpac Tool Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Use that perspective to shape your own view in just a few minutes and share it with the community, Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Enerpac Tool Group.

See What Else Is Out There

Enerpac’s slowing earnings growth, softer recent revenue trends, and execution risks around tariffs and industrial demand suggest it may be entering a more mature and less dynamic phase.

If you want businesses that still combine robust balance sheets with consistent expansion, consider focusing on stable growth stocks screener (2096 results) to find companies built for steadier compounding.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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