Enerpac Tool Group Corp. (NYSE:EPAC) Q3 2024 Earnings Conference Call June 24, 2024 8:30 AM ET

Company Participants

Travis Williams - Director of IR
Paul Sternlieb - President and CEO
Shannon Burns - Interim Principal Financial Officer

Conference Call Participants

Ross Sparenblek - William Blair
Tom Hayes - CL King
Steve Silver - Argus Research

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Enerpac Tool Group's Third Quarter Fiscal 2024 Earnings Conference Call. As a reminder, this conference is being recorded June 25, 2024.

It is now my pleasure to turn the conference over to Travis Williams, Director of Investor Relations. Please go ahead, Mr. Williams.

Travis Williams

Thank you, operator. Good morning and thank you for joining us for Enerpac Tool Group's third quarter fiscal 2024 earnings call.

On the call today to present the company's results are Paul Sternlieb, President and Chief Executive Officer; and Shannon Burns, our Interim Principal Financial Officer. Our slides and a recording of today's call will be available on the Enerpac's website in the Investors section.

Today's call will reference non-GAAP measures. You can find a reconciliation of GAAP to non-GAAP measures in the press release issued yesterday. Our comments will also include forward-looking statements that are subject to business risks that could cause actual results to be materially different. Those risks include matters noted in our latest SEC filings.

Now, I will turn it over to Paul.

Paul Sternlieb

Thanks, Travis, and good morning.

We continue to be pleased with the strategic progress we made in the quarter, particularly our ability to capture further margin expansion as we enhance operational efficiency and SG&A productivity.

While we saw a sequentially slower growth in the third quarter of fiscal 2024, we believe we have continued to outpace the soft general industrial marketplace. Moreover, we demonstrated solid and continued progress toward our long-term financial objectives and the positioning of Enerpac as a premier industrial solutions provider.

Let me turn the call over to Shannon to review our third quarter performance and our refined full year guidance. Then I'll speak about geographic trends, our exciting progress on innovation, and our continued growth in e-commerce.

I'll also provide some additional color on our targeted vertical end markets. Shannon?

Shannon Burns

Thanks, Paul.

With a more challenging industrial environment and backdrop, Enerpac still delivered modest organic revenue growth in our Industrial Tool and Services business or IT&S with a 1.8% year-over-year gain in the quarter. Product revenue growth of 1% was impacted by a shortfall in HLT revenue in the Asia-Pacific region.