Enerpac Tool Group Corp (NYSE:EPAC) stock rose 11.77% (As on October 17, 11:47:31 AM UTC-4, Source: Google Finance) after the company has reported the consolidated net sales in fiscal 2023 were $598.2 million, compared to $571.2 million in fiscal 2022. Core sales increased 8% year over year, with product sales up 12% and service revenues down 7%, the latter due to the implementation of 80/20 analysis and a more selective process for quoting projects in the MENAC region. Core growth was driven by the execution of ASCEND go-to-market initiatives to accelerate organic growth and the implementation of our growth strategy. Consolidated net sales for the fourth quarter of fiscal 2023 were $160.6 million compared to $151.8 million in the prior-year period. Core sales improved 9% year over year, with product sales up 14% and service revenues down 12%. Adjusted operating profit increased 36% to $36.9 million in the fourth quarter of 2023 with a 510 basis points expansion in the adjusted operating margin to 23.0%. Fourth quarter adjusted EBITDA was $40.1 million compared to $30.5 million in the year-ago period, achieving an adjusted EBITDA margin of 24.9%, up from 20.1% in the year-ago period.

The company set its full-year fiscal 2024 net sales guidance range at $590 million to $605 million, with core growth of approximately 2 to 4 percent, adjusted EBITDA guidance at $142 million to $152 million, and anticipated free cash flow of $60 million to $70 million. EPAC remains committed to the multi-year financial framework of 6% to 7% compound annual growth of organic revenue through fiscal 2026.

Moreover, fourth quarter fiscal 2023 net sales for IT&S were $152.9 million, ahead 9% year over year with an 8% increase in core sales. The segment’s operating profit margin increased 720 basis points to 27.9% and its adjusted operating profit margin increased 680 basis points to 29.6%. The drivers of the year over year improvement in operating margin and adjusted operating margin for the IT&S segment. Net debt at August 31, 2023 was $60 million, resulting in a net debt to adjusted EBITDA ratio of 0.6x. The company purchased approximately 1.4 million shares of its common stock in the fourth quarter of fiscal 2023 for a total of approximately $37 million under its share repurchase program announced in March 2022.

In fiscal 2023, the first full year of the ASCEND transformation program, the company remains on track to attain the 25% adjusted EBITDA margin target by fiscal 2025.