NPO

Enpro is a specialty industrial company making sealing products and semiconductor-related solutions. The operating performance in FY2025 was solid: revenue grew 9.0% to $1.14B, gross profit rose 9.6% to $488M (a healthy 42.6% gross margin), operating income increased 13.6% to $162M (14.1% operating margin), and operating cash flow grew 23.5% to $201M. The balance sheet is sound, with liabilities/equity of just 0.72x and $655M of long-term debt against $1.54B equity.

The headline GAAP earnings, however, look alarming and are misleading: net income fell 44.4% to $40.5M and diluted EPS dropped to $1.91, producing a 198.8x P/E. This GAAP figure is heavily distorted by acquisition-related amortization ($103M of D&A) and below-operating-line items rather than the core business, which the rising operating income and cash flow show is healthy. Enpro's net income has been volatile for exactly this reason ($22.2M in FY2023, $72.9M in FY2024, $40.5M in FY2025), so GAAP EPS is a poor gauge here.