EnPro Industries, Inc. (NYSE:NPO) Q2 2023 Earnings Conference Call August 8, 2023 8:30 AM ET

Company Participants

James Gentile - VP, Investor Relations

Eric Vaillancourt - President, CEO & Director

Milton Childress - EVP & CFO

Conference Call Participants

Jeffrey Hammond - KeyBanc Capital Markets

Stephen Ferazani - Sidoti & Company

Operator

Greetings. Welcome to EnPro's Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note this conference is being recorded. It is now my pleasure to turn the conference over to James Gentile, Vice President of Investor Relations. Mr. Gentile, you may begin.

James Gentile

Thanks, Rob, and good morning, everyone. Welcome to EnPro's Second Quarter 2023 Earnings Conference Call. I'll remind you that our call is being webcast at enproindustries.com, where you can find the presentation that accompanies this call. With me today is Eric Vaillancourt, our President and Chief Executive Officer; and Milt Childress, Executive Vice President and Chief Financial Officer.

During today's call, we will reference a number of non-GAAP financial measures. Tables reconciling the historical non-GAAP measures to the comparable GAAP measures are included in the appendix to the presentation materials. Also a friendly reminder that we will be making statements on this call that are not historical facts that are considered forward-looking in nature. These statements involve a number of risks and uncertainties, including those described in our filings with the SEC, including our most recent Form 10-K.

Also note, during this call, we'll be discussing our full year 2023 guidance which includes unforeseen impacts from these risks and uncertainties as well as changes in the number of shares outstanding, impacts from future acquisitions, dispositions and related transaction costs restructuring costs, incremental impacts of inflation, subsequent to the end of the second quarter, the impact of foreign exchange rate changes subsequent to the end of the second quarter and interest rate increases differing from the assumptions outlined in guidance. We do not undertake any obligation to update these forward-looking statements. It is now my pleasure to turn the call over to Eric Vaillancourt, the President and Chief Executive Officer. Eric?

Eric Vaillancourt

Thanks, James, and good morning, everyone. We are pleased to have delivered another solid quarter with total adjusted segment EBITDA margins of 29%. Our optimized portfolio is showing balance as strong performance in Sealing Technologies roughly offset weakness in AST that was driven by ongoing headwinds in semiconductor markets. Consistent with our strategic priorities, we will continue to invest in multiple growth and productivity opportunities that t will build upon our strong foundation as we position EnPro for long-term growth and value creation. In the second quarter, sales were essentially flat year-over-year with organic sales up slightly. We saw a steady demand in several of our Sealing Technologies markets with strong profitability in Q2 and year-to-date.