Interview, CEO Adam Holland & CFO Will Wilkins of Mpac
Why It Matters
EMPAC’s robust margins and successful integration of high‑margin acquisitions give it a competitive edge in automation, positioning the company to capitalize on post‑conflict capital spending and deliver shareholder value in 2026.
Key Takeaways
- •2025 revenue surged 42% to $174 million, PBT up 27%.
- •Operating margin hit double digits at 10.4%, first time ever.
- •Acquisitions, especially CSI, drove higher gross margins and cost synergies.
- •Order intake flat in H2 2025; Q1 2026 remains steady.
- •Outlook 2026 aligned with expectations despite geopolitical uncertainty.
Summary
EMPAC’s CEO Adam Holland and CFO Will Wilkins discussed the company’s FY2025 performance and the outlook for 2026 amid lingering trade tariffs and the Middle‑East conflict. The interview highlighted a record year with revenue up 42% to $174 million and PBT rising 27% to $13.5 million, while operating profit margin broke the 10% threshold for the first time. Gross margins improved by 6.2 percentage points to 36.3%, driven largely by the CSI acquisition, which added a high‑margin palletizing business and enabled cost‑saving initiatives that reduced overhead and lowered net debt to $47.9 million, comfortably within covenant limits. Key data points included a 26% jump in order intake to $150 million, a 52% order‑book coverage for 2026, and flat order flow in the second half of 2025 that persisted into Q1 2026. The company’s strategic consolidation of North American facilities and the integration of CSI’s systems—HR, safety, finance—have yielded operational efficiencies and enabled the first turnkey line that combines pre‑acquisition equipment with CSI’s palletizer and autonomous mobile robot for a blue‑chip client. Holland emphasized the “first time double‑digit operating margin” and praised the successful integration that allowed a production build in Romania, freeing Dutch resources for more complex projects. Wilkins noted that short‑cycle service revenue, representing about 25% of total 2026 sales, provides additional visibility and that the company remains on target despite pricing pressure and heightened competition. The discussion underscores EMPAC’s resilience: strong margins, diversified geography, and advanced automation offerings position it to capture secular demand once capital‑spending cycles normalize. Investors should monitor the timing of customer investment decisions and competitive dynamics, but the firm’s cost‑synergy runway and order‑book coverage suggest a solid foundation for continued growth.
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