Shares of Enerpac Tool Group surged +10.5% to $39.44 on October 29, bucking a weaker broad market, after the industrial tools maker delivered a fiscal Q4 earnings beat, closed its largest-ever acquisition, and introduced fiscal 2027 guidance that far exceeded Wall Street's revenue expectations.

A Revenue Surprise Driven by the Americas

Enerpac posted adjusted EPS of $0.53 versus the $0.52 consensus, and revenue of $185.7 million, well above the $173.1 million forecast — a 7.3% revenue beat. The Americas were the main growth engine, with 24% organic growth in the quarter. That matters because it signals the company's core North American industrial customer base is spending more, not just holding steady. Full-year sales hit $652 million, a record since the company's 2019 relaunch.

Margins Fell, and That's the Catch

Adjusted EBITDA margin dropped to 22.6% in Q4, down from 26.5% a year earlier.

Net earnings declined year-over-year, primarily due to product mix, higher incentive compensation, and investments for future growth. Investors clearly looked past that margin compression, betting the growth spending pays off — but profitability will need to rebound in fiscal 2027 to justify today's price.

A $472 Million Deal Reshapes the Revenue Base

Enerpac acquired SFE Group for approximately $472 million — $452 million in cash plus $20 million in equity awards — closing on October 28, the same day it reported earnings.

SFE generated roughly $170 million in sales and $44 million of adjusted EBITDA over the trailing twelve months.

Post-deal leverage sits at about 2.3x net debt-to-adjusted EBITDA , a manageable but meaningful load. Management expects to reduce that to roughly 2x by the end of fiscal 2027.

Guidance Blew Past Old Estimates — but the Bar Is Now Higher

Enerpac guided fiscal 2027 revenue to $825–$845 million, dwarfing the prior $671 million consensus, and EPS of $2.00–$2.15 versus the $2.06 consensus.

The outlook includes roughly 10 months of SFE and assumes 4–6% organic growth.

At the midpoint, adjusted EPS of $2.08 would represent roughly a 10% increase over fiscal 2026's $1.87. At $39.44, the stock trades at approximately 19x the midpoint of forward earnings — a valuation that now prices in successful integration and margin recovery, leaving limited room for missteps.