Enersys (ENS) reported fourth-quarter fiscal 2025 (ended March 31, 2025) adjusted earnings of $2.97 per share, which surpassed the Zacks Consensus Estimate of $2.78. The bottom line increased 43% year over year.Enersys’ net sales of $974.8 million missed the consensus estimate of $975 million. The top line increased 7% year over year, driven by strength in the specialty and communications markets.  While organic sales increased 4%, acquisitions boosted sales by 4% and pricing had a positive impact of 1%. Fo ...

EnerSys (ENS -16.15%) reported Q4 FY2025 results on May 21, 2025, with revenue rose 7% year over year to $975 million and adjusted diluted EPS, excluding IRC45x tax benefits, reached a record $1.86. The company highlighted notable margin expansion across all segments, resilient order trends despite tariff headwinds, and announced a leadership transition, positioning for continued strategic execution. Key takeaways center on margin gains, tariff mitigation, and strategic capital allocation opportunities cata ...

EnerSys (ENS) Q4 2025 Earnings Call May 22, 2025 09:00 AM ET Company Participants Lisa Hartman - Vice President, Investor RelationsDavid Shaffer - Director & CEOShawn O'Connell - President & COOAndrea Funk - Executive VP & CFOBrian Drab - Co-Group Head–IndustrialsGregory Lewis - Managing Director Conference Call Participants Noah Kaye - Senior Research AnalystChip Moore - Managing Director & Senior Research Analyst Operator Good day, thank you for standing by. Welcome to EnerSys Fourth Quarter and Full Year ...

Financial Data and Key Metrics Changes - EnerSys reported fourth quarter net sales of $975 million, a 7% increase year-over-year, driven by a 4% increase in organic volume and a 4% positive impact from the Brentronics acquisition [30][34] - Adjusted diluted EPS for the fourth quarter was a record $1.86 per share, up $0.66 per share versus the prior year, demonstrating strong earnings power [32][33] - Full year net sales reached $3.6 billion, up 1% year-over-year, with adjusted diluted EPS increasing by 22% to $10.15 per share [33][34] Business Line Data and Key Metrics Changes - Energy Systems revenue increased 8% year-over-year to $399 million, with adjusted operating earnings growing for the fifth consecutive quarter [34][35] - Motive Power revenue remained flat at $392 million, with adjusted operating earnings up 15% year-over-year, driven by a favorable price mix [36] - Specialty revenue increased 21% year-over-year to $178 million, significantly benefiting from the Brentronics acquisition [37] Market Data and Key Metrics Changes - Energy Systems saw a 22% year-on-year increase in quarterly data center revenue, indicating strong market momentum [17][34] - Motive Power experienced a 14% year-over-year decline in orders, reflecting the impact of tariff disruptions [60][62] - Specialty markets, particularly aerospace and defense, showed robust demand, although Class eight truck OEM volume recovery was slower than anticipated [22][37] Company Strategy and Development Direction - The company is focusing on energy security and labor scarcity, aiming to help customers manage energy costs and consumption through maintenance-free products and automation [10][11] - EnerSys is committed to optimizing its manufacturing footprint and investing in high-speed, lower-cost production capacity to strengthen its foundation for future growth [7][26] - The company plans to deepen customer relationships and expand service capabilities while maintaining operational efficiencies [10][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and tariff impacts, emphasizing a disciplined approach to operations [11][43] - The outlook for the first quarter of fiscal 2026 anticipates typical seasonal volume softness in Motive Power, with expectations for recovery in subsequent quarters [43][44] - Management is awaiting clarity on reciprocal tariff negotiations before providing full-year guidance, indicating a cautious but optimistic approach to future performance [64][65] Other Important Information - The company has established a tariff task force to analyze and mitigate tariff impacts, with a focus on maintaining operational flexibility [11][12] - EnerSys is actively reshaping its manufacturing footprint, including closing a facility in Mexico and transitioning production to Kentucky, which is expected to optimize costs [26][27] - The company is optimistic about its domestic lithium battery manufacturing plans, with ongoing discussions with the Department of Energy [28][83] Q&A Session Summary Question: Clarification on Q1 guidance and EPS growth - Management explained that the Q1 guidance reflects lower volumes in Motive Power, with EPS growth driven by favorable price mix and operational efficiencies [51][59] Question: Order recovery and full-year guidance pause - Management noted that while there has been a rebound in orders, the pause in full-year guidance is due to uncertainty surrounding tariff negotiations [61][64] Question: Section 45X tax credits and IRS interactions - Management confirmed that other companies have received their tax credits and they expect to receive their refund soon, attributing delays to IRS staffing issues [78][79] Question: Opportunities for inorganic growth - Management indicated that the current economic uncertainty may create opportunities for acquisitions, emphasizing a proactive approach to identifying targets that fit their strategic criteria [94]

Core Insights - EnerSys reported revenue of $974.8 million for the quarter ended March 2025, reflecting a 7% increase year-over-year, with EPS at $2.97 compared to $2.08 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate by -0.06%, while the EPS exceeded the consensus estimate by +6.83% [1] Financial Performance Metrics - Specialty Net Sales reached $177.80 million, surpassing the estimated $164.85 million, marking a +21.4% change year-over-year [4] - Motive Power Net Sales were reported at $392.30 million, slightly below the average estimate of $396.19 million, indicating a -0.6% change year-over-year [4] - Energy Systems Net Sales totaled $398.80 million, compared to the average estimate of $415.83 million, reflecting an +8% change year-over-year [4] - Operating Earnings for Energy Systems were $27 million, below the estimated $30.23 million [4] - Operating Earnings for Motive Power were $57.90 million, compared to the average estimate of $61.79 million [4] - Operating Earnings for Specialty were reported at $10.20 million, below the average estimate of $12.40 million [4] Stock Performance - EnerSys shares have returned +19.4% over the past month, outperforming the Zacks S&P 500 composite's +12.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

EnerSys (ENS) came out with quarterly earnings of $2.97 per share, beating the Zacks Consensus Estimate of $2.78 per share. This compares to earnings of $2.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.83%. A quarter ago, it was expected that this maker of industrial batteries would post earnings of $3.03 per share when it actually produced earnings of $3.12, delivering a surprise of 2.97%.Over the last four quarters, t ...

Q4'25 & FY'25 Earnings MAY 21, 2025 May 2025 2 Q4'25 & FY'25 Overview D AV E S H A F F E R Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements on this call that are based on Management's current expectations and views regarding future events and operating performance and are subject to uncertainties and changes in circumstances. Our actual results may differ materially from the forward- looking statements for a number of reasons. Our forward-looking statements ...

Customer Base and Market Presence - EnerSys serves over 10,000 customers in more than 100 countries, with no single customer accounting for more than 10% of revenues[26]. - The company operates four segments: Energy Systems, Motive Power, Specialty, and New Ventures, each serving diverse markets[22]. - EnerSys has a strong presence in the industrial energy storage market, competing with companies like East Penn Manufacturing and Exide Technologies[34]. - The company’s Energy Systems customers include those in telecommunications, data centers, and electric utilities, reflecting a diverse market base[27]. - Approximately 40% of net sales were generated outside of the United States in fiscal 2025, exposing the company to significant foreign currency translation risks[125]. Acquisitions and Growth Strategy - The company completed the acquisition of Bren-Tronics Defense LLC for $206.4 million, enhancing its Specialty line of business with portable power solutions for military applications[25]. - EnerSys has made thirty-six acquisitions globally from fiscal years 2003 through 2025, with no significant acquisitions in fiscal 2023 or 2024[25]. - The growth strategy is heavily dependent on acquisitions, and failure to identify suitable candidates or integrate acquired businesses could materially affect operations[100][102]. - Future acquisitions may involve issuing equity securities, which could dilute stockholder ownership and adversely impact the market price of the stock[103]. Financial Performance and Costs - The company estimates that raw material costs account for over 50% of its cost of goods sold, and fluctuations in the prices of materials like lead, lithium, and nickel could significantly impact financial results[85]. - The Company experienced lead prices ranging from approximately $0.85 to $1.00 per pound in fiscal 2025, impacting production costs[211]. - Approximately 25% of the Company's revenue is subject to agreements that adjust pricing based on a market-based index for lead[212]. - The Company anticipates that selling prices will be higher in fiscal 2026 compared to fiscal 2025 due to inflationary cost increases[213]. - The trailing three months net sales annualized was $3,899.2 million at March 31, 2025, compared to $3,642.8 million at March 31, 2024[215]. Sustainability and Environmental Goals - The company has committed to reducing its energy intensity by 25% over the next 10 years from a 2020 baseline[56]. - The company has set net-neutral goals for Scope 1 emissions by 2040 and Scope 2 emissions by 2050[56]. - The company has published its Climate Action Plan Roadmap in October 2024, detailing plans to achieve climate goals[56]. - The company has released comprehensive Sustainability Reports in 2022 and 2023, aligned with GRI and SASB standards[56]. - The company has a dedicated sustainability steering committee that includes members of senior management to oversee sustainability performance[73]. Risks and Challenges - The company is subject to significant pricing pressures due to competition from major international manufacturers and regional competitors, which could adversely affect profitability and cash flows[77]. - The company relies on third-party relationships for key aspects of its business, and any failure of these parties could expose it to risks of business disruption and higher costs[78]. - The company faces risks related to the introduction of new products and technologies, as failure to innovate could lead to reduced market acceptance[94]. - Cybersecurity incidents, including ransomware and phishing attacks, pose significant risks to the integrity and privacy of the company's data[106][107]. - The company faces risks from public health epidemics, such as COVID-19, which have previously disrupted global operations and supply chains[115][116]. Regulatory and Compliance Issues - Regulatory scrutiny in various countries may lead to substantial fines or operational disruptions, harming the company's reputation and business[119][120]. - The company is subject to extensive environmental liability, which could result in significant fines or operational restrictions if noncompliance occurs[143]. - The company is currently subject to conflict mineral disclosure regulations, which may increase costs and affect supplier relationships[153]. - The company is impacted by the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which impose stringent requirements on data handling[155]. Financial Position and Capital Management - The company's total consolidated debt as of March 31, 2025, was $1,113 million, which may restrict operational flexibility and increase vulnerability to economic conditions[136]. - The company has $343 million in available cash and cash equivalents as of March 31, 2025[216]. - The company has approximately $653 million available and undrawn under all lines of credit as of March 31, 2025[216]. - A third amendment to the 2017 Credit Facility provided a new incremental delayed-draw senior secured term loan of up to $300 million[217]. - The company has a share repurchase program authorized for up to $200 million, with approximately $178.9 million remaining as of March 31, 2025[164]. Employee and Labor Relations - The company reported that approximately 28% of its 10,858 employees are covered by collective bargaining agreements, with 8% of these agreements expiring in the next twelve months[45]. - The company faces significant competition for qualified personnel, which could impact its ability to retain key employees and affect business continuity[166].

Core Viewpoint - EnerSys (ENS) is set to release its fourth-quarter fiscal 2025 results on May 21, with a history of positive earnings surprises averaging 2.2% [1] Group 1: Financial Performance Expectations - The consensus estimate for ENS's fourth-quarter revenues is $975.4 million, reflecting a 7.1% increase from the previous year [5] - The expected adjusted earnings per share for the quarter is $2.78, indicating a significant 33.7% increase from the year-ago quarter [5] Group 2: Segment Performance Insights - The Motive Power segment is projected to achieve net sales of $396 million, a slight increase of 0.3% year-over-year, driven by sales of maintenance-free thin plate pure lead and lithium products [2] - The Specialty segment is expected to report net sales of $165 million, representing a robust 12.2% increase from the previous year, benefiting from strong momentum in aerospace and defense markets [3] - The Energy Systems segment is anticipated to reach net sales of $416 million, reflecting a 12.7% increase year-over-year, supported by the expansion of U.S. communications networks driven by AI data demand [4] Group 3: Investment and Market Risks - EnerSys has been making significant investments to enhance growth, although high capital expenditures may negatively impact performance [6] - The company's international operations expose it to currency fluctuation risks, which could affect its performance in the upcoming quarter [6] Group 4: Earnings Prediction Insights - The current Earnings ESP for ENS is 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are at $2.78, indicating uncertainty in predicting an earnings beat [8] - ENS holds a Zacks Rank of 3, suggesting a neutral outlook for earnings performance [8]

EnerSys (ENS) FY Conference Summary Company Overview - **Company**: EnerSys (ENS) - **Event**: Oppenheimer's 20th Annual Industrial Growth Conference - **Date**: May 08, 2025 - **Speakers**: Sean O'Connell (President and CEO), Andy Funk (CFO) Key Points Industry Context - The macroeconomic environment for EnerSys is described as the strongest in the company's history, focusing on energy security and labor efficiency [5][6][7] - The company is navigating challenges related to tariffs and supply chain adjustments, particularly in response to the current administration's policies [6][18] Strategic Priorities - Immediate focus on building credibility with investors and executing operational strategies [7][8] - Mid-term strategy includes leveraging macroeconomic trends to identify growth opportunities [8] - The company is enhancing its U.S. manufacturing footprint, including the closure of capacity in Mexico to expand in the U.S. [17][18] Leadership Changes - Keith Fisher has been appointed to lead the energy systems division, bringing extensive experience from Honeywell, particularly in managing energy transitions and operational efficiency [9][10][11] Product Innovations - EnerSys is implementing advanced technologies such as the Insight controller and energy router to optimize energy management for clients, particularly in the telecommunications sector [14][15][16] - The company is focusing on maintenance-free battery solutions and transitioning from flooded lead-acid batteries to newer technologies [18][19] Investment and Growth Opportunities - EnerSys is exploring mergers and acquisitions (M&A) in the aerospace and defense sectors, leveraging its strong relationship with the U.S. Department of Defense [22][23] - The company is committed to investing in research and development, particularly in software and control systems to enhance product offerings [24] Supply Chain and Tariff Management - EnerSys has diversified its supply chain to mitigate risks associated with tariffs, moving production from China to Vietnam and Mexico [30][31] - The company has established a dedicated task force to address tariff impacts and improve pricing strategies [34][36] Market Outlook - Positive trends are observed in the data center and telecommunications markets, with expectations of increased spending in these sectors [40][41][42] - The company anticipates a multi-year recovery driven by deferred maintenance and upgrades in technology infrastructure [46][47] Financial Resilience - EnerSys has demonstrated resilience during economic downturns, maintaining cash flow and operational efficiency [59][63] - The company expects revenue growth of approximately 10% over five years, with operating earnings projected to increase by over 50% [63] Specialty Markets - EnerSys is targeting growth in the aerospace, defense, and transportation sectors, emphasizing the importance of managing fleet assets and reducing downtime costs [66][67][68] Electric Vehicle (EV) Incentives - While there are some state-level incentives for electric forklifts, the overall economics of electric conversion are favorable without significant subsidies [70][71] Additional Insights - The company is well-positioned to capitalize on the growing demand for energy management solutions across various sectors, including material handling and data centers [49][50][55] - EnerSys is actively adapting its product offerings to meet the evolving needs of customers in a rapidly changing energy landscape [52][54]