Enpro Inc.NPO
Enpro Inc. Segments Disclosure
| 18. | Business Segment Information | ||||
We identify our two operating businesses, Sealing Technologies and Advanced Surface Technologies, as reportable segments. Factors considered in determining our reportable segments include the economic similarity of the businesses, the nature of products sold, or solutions provided, the production processes and the types of customers. Our President and Chief Executive Officer, which we have identified as our Chief Operating Decision Maker ("CODM"), regularly evaluates the individual performance of both operating segments by reviewing segment earnings before interest, income taxes, depreciation, amortization, and other selected items ("Adjusted Segment EBITDA"), which is segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition and divestiture expenses, restructuring costs, impairment charges, non-controlling interest compensation, amortization of the fair value adjustment to acquisition date inventory, and depreciation and amortization. Adjusted Segment EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies. The CODM assesses Adjusted Segment EBITDA in comparison to prior periods, previously forecasted results and anticipated/experienced market trends in determining how to
allocate operating and capital resources between the operating segments. The only significant segment expense categories reviewed by the CODM are cost of sales and selling, general, and administrative costs.
Our Sealing Technologies segment engineers and manufactures value-added products and solutions that safeguard a variety of critical environments, including: metallic, non-metallic and composite material gaskets; dynamic seals; compression packing; elastomeric components; custom-engineered mechanical seals used in diverse applications; hydraulic components; test, measurement and sensing applications; sanitary gaskets; hoses and fittings for hygienic process industries; fluid transfer products for the pharmaceutical and biopharmaceutical industries; and commercial vehicle solutions used in wheel-end and suspension components that customers rely upon to ensure safety on our roadways.
These products are used in a variety of markets, including chemical and petrochemical processing, nuclear energy, hydrogen, natural gas, food and biopharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, commercial vehicle, aerospace (including commercial space), medical, filtration and semiconductor fabrication. In all these industries, the performance and durability of our proprietary products and solutions are vital for the safety and environmental protection of our customers’ processes. Many of our products and solutions are used in highly demanding applications, often in harsh environments, where the cost of failure is extremely high relative to the cost of our offerings to our customers. These environments include those where extreme temperatures, extreme pressures, corrosive agents, strict tolerances, or worn equipment create challenges for product performance. Sealing Technologies offers customers widely recognized applied engineering, innovation, process know- how and enduring reliability, driving a lasting aftermarket for many of our products and solutions.
Our Advanced Surface Technologies (AST) segment applies proprietary technologies, processes, and capabilities to deliver a highly differentiated suite of products and solutions for challenging applications in high-growth markets. The segment’s products and solutions are used in demanding environments requiring performance, precision and repeatability, with a low tolerance for failure. AST’s capabilities include: (i) engineering, manufacturing and precision machining of complex front-end wafer processing sub-systems, including critical components used in and around semiconductor process chambers that enable the manufacture of leading-edge chips, as well as edge-welded metal bellows that support critical applications in the space, aerospace and defense markets; (ii) cleaning, coating, testing, refurbishment and verification for critical components and assemblies used in state-of-the-art advanced node semiconductor manufacturing equipment, (iii) designing, manufacturing and selling specialized optical filters and proprietary thin-film coatings for the most challenging applications in the industrial technology, life sciences, communications and semiconductor markets. In many instances, AST capabilities drive products and solutions that enable the performance of our customers’ high-value processes through an entire life cycle.
The accounting policies of the reportable segments are the same as those for Enpro.
Non-controlling interest compensation allocation represents compensation expense associated with a portion of the rollover equity from the acquisition of Alluxa being subject to reduction for certain types of employment terminations of the Alluxa Executives. This expense was recorded in selling, general, and administrative expenses on our Consolidated Statements of Operations and is directly related to the terms of the acquisitions. In the first quarter of 2024, Enpro acquired all of the Alluxa non-controlling interests from the Alluxa Executives.
Segment operating results and other financial data for the years ended December 31, 2025, 2024, and 2023 were as follows:
Year Ended December 31, 2025 | |||||||||||||||||
| (in millions) | Sealing Technologies | Advanced Surface Technologies | Total | ||||||||||||||
| Sales from external customers | $ | 732.3 | $ | 411.0 | $ | 1,143.3 | |||||||||||
| Intersegment sales | 0.1 | 0.6 | 0.7 | ||||||||||||||
| 732.4 | 411.6 | 1,144.0 | |||||||||||||||
| Reconciliation of sales | |||||||||||||||||
| Elimination of intersegment sales | (0.7) | ||||||||||||||||
| Total consolidated sales | 1,143.3 | ||||||||||||||||
| Cost of sales | (370.3) | (286.6) | |||||||||||||||
| Selling, General, and Administrative | (167.7) | (108.3) | |||||||||||||||
Other Operating1 | (0.5) | (1.7) | |||||||||||||||
| Adjusting Items: | |||||||||||||||||
| Acquisition expenses | 8.5 | — | |||||||||||||||
| Amortization of fair value adjustment to acquisition date inventory | 2.2 | — | |||||||||||||||
| Restructuring and impairment expense, net | 0.5 | 1.7 | |||||||||||||||
| Depreciation and amortization expense | 35.6 | 67.2 | |||||||||||||||
| Adjusted Segment EBITDA | $ | 240.7 | $ | 83.9 | $ | 324.6 | |||||||||||
Restructuring and impairment expense, net in the table above for the year ended December 31, 2025, includes income related to gains on the sale of fixed assets as a result of restructuring actions.
Year Ended December 31, 2024 | |||||||||||||||||
| (in millions) | Sealing Technologies | Advanced Surface Technologies | Total | ||||||||||||||
| Sales from external customers | $ | 687.2 | $ | 361.5 | $ | 1,048.7 | |||||||||||
| Intersegment sales | — | 0.7 | 0.7 | ||||||||||||||
| 687.2 | 362.2 | 1,049.4 | |||||||||||||||
| Reconciliation of sales | |||||||||||||||||
| Elimination of intersegment sales | (0.7) | ||||||||||||||||
| Total consolidated sales | 1,048.7 | ||||||||||||||||
| Cost of sales | (356.3) | (248.0) | |||||||||||||||
| Selling, General, and Administrative | (145.6) | (105.0) | |||||||||||||||
Other Operating1 | (2.4) | (3.5) | |||||||||||||||
| Adjusting Items: | |||||||||||||||||
| Acquisition expenses | 4.3 | — | |||||||||||||||
| Amortization of fair value adjustment to acquisition date inventory | 1.7 | — | |||||||||||||||
| Restructuring and impairment expense | 2.4 | 3.5 | |||||||||||||||
| Depreciation and amortization expense | 32.8 | 67.5 | |||||||||||||||
| Adjusted Segment EBITDA | $ | 224.1 | $ | 76.7 | $ | 300.8 | |||||||||||
Year Ended December 31, 2023 | |||||||||||||||||
| (in millions) | Sealing Technologies | Advanced Surface Technologies | Total | ||||||||||||||
| Sales from external customers | $ | 658.4 | $ | 400.9 | $ | 1,059.3 | |||||||||||
| Intersegment sales | — | 0.3 | 0.3 | ||||||||||||||
| 658.4 | 401.2 | 1,059.6 | |||||||||||||||
| Reconciliation of sales | |||||||||||||||||
| Elimination of intersegment sales | (0.3) | ||||||||||||||||
| Total consolidated sales | 1,059.3 | ||||||||||||||||
| Cost of sales | (361.0) | (271.7) | |||||||||||||||
| Selling, General, and Administrative | (131.3) | (102.9) | |||||||||||||||
| Goodwill impairment | — | (60.8) | |||||||||||||||
Other Operating1 | (3.0) | (1.0) | |||||||||||||||
| Adjusting Items: | |||||||||||||||||
| Acquisition expenses | 1.1 | — | |||||||||||||||
| Non-controlling interest compensation allocation | — | (0.3) | |||||||||||||||
| Restructuring and impairment expense | 3.0 | 1.0 | |||||||||||||||
| Depreciation and amortization expense | 25.1 | 69.2 | |||||||||||||||
| Goodwill impairment | — | 60.8 | |||||||||||||||
| Adjusted Segment EBITDA | $ | 192.3 | $ | 95.5 | $ | 287.8 | |||||||||||
1 Other Operating consists primarily of restructuring and other impairment related expenses.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Reconciliation of income from continuing operations before income taxes to Adjusted Segment EBITDA | |||||||||||||||||
| Income from continuing operations before income taxes | $ | 57.6 | $ | 94.4 | $ | 37.7 | |||||||||||
| Acquisition and divestiture expenses | 8.5 | 4.3 | 1.1 | ||||||||||||||
| Non-controlling interest compensation allocation | — | — | (0.3) | ||||||||||||||
| Amortization of fair value adjustment to acquisition date inventory | 2.2 | 1.7 | — | ||||||||||||||
| Restructuring and impairment expense | 1.7 | 5.8 | 4.0 | ||||||||||||||
| Depreciation and amortization expense | 102.8 | 100.3 | 94.3 | ||||||||||||||
| Corporate expenses | 47.8 | 46.4 | 51.1 | ||||||||||||||
| Interest expense, net | 28.2 | 34.5 | 30.1 | ||||||||||||||
| Goodwill impairment | — | — | 60.8 | ||||||||||||||
| Loss on pension settlement | 67.2 | — | — | ||||||||||||||
| Other expense, net | 8.6 | 13.4 | 9.0 | ||||||||||||||
| Adjusted Segment EBITDA | $ | 324.6 | $ | 300.8 | $ | 287.8 | |||||||||||
In the table above, corporate expenses include general corporate administrative costs. Expenses not directly attributable to the segments, corporate expenses, net interest expense, and income taxes are not included in the computation of Adjusted Segment EBITDA
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Net Sales by Geographic Area | |||||||||||||||||
| United States | $ | 647.1 | $ | 601.7 | $ | 640.3 | |||||||||||
| Asia Pacific | 247.3 | 210.1 | 183.1 | ||||||||||||||
| Europe | 162.4 | 152.4 | 149.6 | ||||||||||||||
| Rest of World | 86.5 | 84.5 | 86.3 | ||||||||||||||
| Total | $ | 1,143.3 | $ | 1,048.7 | $ | 1,059.3 | |||||||||||
Net sales are attributed to countries based on location of the customer.
Due to the diversified nature of our business and the wide array of products that we offer, we sell into a number of end markets. Underlying economic conditions within these markets are a major driver of our segments' sales performance. Below is a summary of our third-party sales by major end market with which we did business for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, 2025 | |||||||||||||||||
| (in millions) | |||||||||||||||||
| Sealing Technologies | Advanced Surface Technologies | Total | |||||||||||||||
| Aerospace | $ | 75.6 | $ | 17.3 | $ | 92.9 | |||||||||||
| Commercial vehicle | 168.1 | — | 168.1 | ||||||||||||||
| Food and biopharmaceutical | 76.3 | — | 76.3 | ||||||||||||||
| General industrial | 272.5 | 26.9 | 299.4 | ||||||||||||||
| Oil and gas | 60.6 | 7.6 | 68.2 | ||||||||||||||
| Power generation | 71.3 | — | 71.3 | ||||||||||||||
| Semiconductors | 7.9 | 359.2 | 367.1 | ||||||||||||||
| Total third-party sales | $ | 732.3 | $ | 411.0 | $ | 1,143.3 | |||||||||||
Year Ended December 31, 2024 | |||||||||||||||||
| (in millions) | |||||||||||||||||
| Sealing Technologies | Advanced Surface Technologies | Total | |||||||||||||||
| Aerospace | $ | 58.0 | $ | 13.8 | $ | 71.8 | |||||||||||
| Commercial vehicle | 174.0 | — | 174.0 | ||||||||||||||
| Food and biopharmaceutical | 67.7 | — | 67.7 | ||||||||||||||
| General industrial | 255.5 | 25.3 | 280.8 | ||||||||||||||
| Oil and gas | 52.0 | 5.7 | 57.7 | ||||||||||||||
| Power generation | 72.0 | — | 72.0 | ||||||||||||||
| Semiconductors | 8.0 | 316.7 | 324.7 | ||||||||||||||
| Total third-party sales | $ | 687.2 | $ | 361.5 | $ | 1,048.7 | |||||||||||
Year Ended December 31, 2023 | |||||||||||||||||
| (in millions) | |||||||||||||||||
| Sealing Technologies | Advanced Surface Technologies | Total | |||||||||||||||
| Aerospace | $ | 47.5 | $ | 10.8 | $ | 58.3 | |||||||||||
| Commercial vehicle | 198.4 | — | 198.4 | ||||||||||||||
| Food and biopharmaceutical | 65.4 | — | 65.4 | ||||||||||||||
| General industrial | 250.7 | 26.9 | 277.6 | ||||||||||||||
| Oil and gas | 19.8 | 8.0 | 27.8 | ||||||||||||||
| Power generation | 68.3 | — | 68.3 | ||||||||||||||
| Semiconductors | 8.3 | 355.2 | 363.5 | ||||||||||||||
| Total third-party sales | $ | 658.4 | $ | 400.9 | $ | 1,059.3 | |||||||||||
Sales to one customer of our Advanced Surface Technologies segment represented approximately $271.3 million, $225.4 million, and $270.3 million of our consolidated sales for the years ended December 31, 2025, 2024, and 2023, respectively.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Capital Expenditures | |||||||||||||||||
| Sealing Technologies | $ | 16.4 | $ | 14.1 | $ | 17.1 | |||||||||||
| Advanced Surface Technologies | 24.4 | 15.0 | 16.8 | ||||||||||||||
| Total capital expenditures | $ | 40.8 | $ | 29.1 | $ | 33.9 | |||||||||||
| Depreciation and Amortization Expense | |||||||||||||||||
| Sealing Technologies | $ | 35.6 | $ | 32.8 | $ | 25.1 | |||||||||||
| Advanced Surface Technologies | 67.2 | 67.4 | 69.2 | ||||||||||||||
| Corporate | — | 0.1 | 0.2 | ||||||||||||||
| Total depreciation and amortization | $ | 102.8 | $ | 100.3 | $ | 94.5 | |||||||||||
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Assets | |||||||||||
| Sealing Technologies | $ | 1,210.1 | $ | 883.9 | |||||||
| Advanced Surface Technologies | 1,287.4 | 1,330.6 | |||||||||
| Corporate | 165.5 | 277.0 | |||||||||
| $ | 2,663.0 | $ | 2,491.5 | ||||||||
| Long-Lived Assets | |||||||||||
| United States | $ | 208.5 | $ | 184.7 | |||||||
| Asia Pacific | 47.7 | 33.1 | |||||||||
| Europe | 14.0 | 13.0 | |||||||||
| Rest of World | 15.1 | 14.9 | |||||||||
| Total | $ | 285.3 | $ | 245.7 | |||||||
Corporate assets include all of our cash and cash equivalents and long-term deferred income taxes. Long-lived assets consist of property, plant and equipment and lease right of use assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 11, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.