Basis of Presentation

9 Months Ended

May 31, 2025

Note 1. Basis of Presentation

General

Enerpac Tool Group Corp. (the "Company") is a premier industrial tools, services, technology and solutions company serving a broad and diverse set of customers in more than 100 countries. The Company has one reportable segment, Industrial Tools & Services ("IT&S"), and an Other operating segment, which does not meet the criteria to be considered a reportable segment.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated balance sheet data as of August 31, 2024 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes in the Company’s fiscal 2024 Annual Report on Form 10-K.

In the opinion of management, all adjustments considered necessary for a fair statement of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for the three and nine months ended May 31, 2025 are not necessarily indicative of the results that may be expected for the entire fiscal year ending August 31, 2025.

Accumulated Other Comprehensive Loss

The following is a summary of the components included within the Company's accumulated other comprehensive loss (in thousands):


	May 31, 2025		August 31, 2024
Foreign currency translation adjustments	$	94,037	$	99,215
Pension and other postretirement benefit plans	16,393		17,187
Cash flow hedges	(46)		(4)
Accumulated other comprehensive loss	$	110,384	$	116,398

Property Plant and Equipment

The following is a summary of the components included within the Company's property, plant and equipment (in thousands):


	May 31, 2025		August 31, 2024
Land, buildings and improvements	$	26,847	$	14,670
Machinery and equipment	148,930		145,604
Gross property, plant and equipment	175,777		160,274
Less: Accumulated depreciation	(122,864)		(119,989)
Property, plant and equipment, net	$	52,913	$	40,285

Product Warranty Costs

The Company generally offers its customers an assurance warranty on products sold, although warranty periods may vary by product type and application. The reserve for future warranty claims, which is recorded within the "Other current liabilities" line in the Condensed Consolidated Balance Sheets, is based on historical claim rates and current warranty cost experience. The following is a roll-forward of the changes in product warranty reserves for the nine months ended May 31, 2025 and 2024, respectively (in thousands):


	Nine Months Ended May 31,
	2025		2024
Beginning balance	$	534	$	856
Provision for warranties	802		269
Warranty payments and costs incurred	(849)		(547)
Warranty activity for acquired businesses	381		—
Impact of changes in foreign currency rates	37		—
Ending balance	$	905	$	578

Product Warranty Costs


	Nine Months Ended May 31,
	2025		2024
Beginning balance	$	534	$	856
Provision for warranties	802		269
Warranty payments and costs incurred	(849)		(547)
Warranty activity for acquired businesses	381		—
Impact of changes in foreign currency rates	37		—
Ending balance	$	905	$	578