Q1 Fiscal 2026 Earnings February 5, 2026 + Forward-Looking Statements This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future sales, gross margins, costs, earnings, cash flows, tax rates, packaging transition, and performance of the Company. These statements generally can be identified by the ...

First Quarter Highlights (1) ST. LOUIS, Feb. 5, 2026 /PRNewswire/ -- Energizer Holdings, Inc. (NYSE: ENR) today announced results for the first fiscal quarter ended December 31, 2025. "Energizer's strategic priorities in Fiscal 2026 are grounded in simple principles – restore growth, rebuild margins impacted by tariffs, and return to our longterm historical cash flow profile. We are exiting the first fiscal quarter having taken the necessary steps to drive these priorities forward," said Mark LaVigne, Presi ...

Financial Data and Key Metrics Changes - The company has 68,570,616 shares of common stock outstanding, each entitled to one vote [2] - The meeting confirmed that a quorum was present, allowing the meeting to proceed [3] Business Lines Data and Key Metrics Changes - No specific data on business lines or key metrics was provided in the meeting [6][9] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [6][9] Company Strategy and Development Direction and Industry Competition - The company plans to release fiscal 2026 first-quarter results on February 5, indicating a focus on transparency and communication with shareholders [6] - The company has nominated a slate of directors for a one-year term, suggesting a stable governance structure [4] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [8][9] Other Important Information - The company will file a Form 8-K with the SEC to report the full results of the voting within four business days [7] Q&A Session All Questions and Answers - No questions were submitted during the Q&A portion of the meeting [9]

Financial Data and Key Metrics Changes - The company has 68,570,616 shares of common stock outstanding, each entitled to one vote [2] - The meeting confirmed that a quorum was present, allowing the meeting to proceed [3] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company plans to release fiscal 2026 first-quarter results on February 5, indicating a focus on transparency and communication with shareholders [6] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting Other Important Information - All director nominees were elected, and the proposals regarding the appointment of the independent auditor and executive compensation were passed [7] Summary of Q&A Session - No questions were submitted during the Q&A session, leading to its adjournment [9]

Financial Data and Key Metrics Changes - As of the record date, there were 68,570,616 shares of common stock outstanding, each entitled to one vote [2] - The meeting was held with a quorum present, indicating that a majority of the shares eligible to vote were represented [3] Business Lines Data and Key Metrics Changes - No specific data on business lines or key metrics was provided during the meeting [6] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [6] Company Strategy and Development Direction and Industry Competition - The company is focused on inclusivity by hosting the annual shareholders meeting virtually, allowing greater shareholder participation [1] - The company plans to release fiscal 2026 first quarter results on February 5, indicating a commitment to transparency and timely communication with shareholders [6] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [6] Other Important Information - The company has nominated 10 director nominees for a 1-year term, and the appointment of PricewaterhouseCoopers as the independent auditor for fiscal 2026 was ratified [4][5] - An advisory non-binding vote on executive compensation was also approved [5] Q&A Session All Questions and Answers - No questions were submitted during the Q&A session, leading to the adjournment of this portion of the meeting [9]

Core Viewpoint - Energizer Holdings, Inc. is set to report its First Quarter Fiscal Year 2026 results on February 5, 2026, before the market opens, followed by an investor conference call [1]. Group 1: Earnings Report Details - The earnings report will be discussed during a conference call hosted by CEO Mark LaVigne and CFO John Drabik, starting at 10 a.m. ET [1]. - Interested parties can access the live webcast, earnings press release, and prepared materials on Energizer's website [2]. Group 2: Company Overview - Energizer Holdings is one of the largest manufacturers and distributors of primary batteries, portable lights, and auto care products globally [3]. - The company’s portfolio includes well-known brands such as Energizer, Armor All, Eveready, and Rayovac, among others [3]. - Energizer's mission is to lead in its categories by better serving consumers and customers [3].

Core Insights - The article discusses the urgent need for AI companies to bypass the aging public power grid by building their own gas power plants to meet the exponential demand for computing power, which has become a critical constraint for timely deployment [1][3][4]. Group 1: Power Crisis and AI Demand - The real bottleneck for AI data centers is not the lack of electricity but the slow delivery of power that cannot keep pace with the rapid expansion of computing needs [4][8]. - AI data centers are now being constructed in 12-24 months, while the typical cycle for power grid expansion and approval is still 3-5 years, making waiting for the grid a significant risk [5][6]. Group 2: Economic Implications of Power Supply - The time value of computing power is reshaping decision-making, with a 1GW AI data center potentially generating annual revenues of up to $10 billion, making it economically viable to incur higher electricity costs for faster deployment [9][10]. - Power is no longer just an operational cost but a prerequisite for the existence of AI projects, emphasizing the need for immediate power solutions [10][22]. Group 3: Onsite Power Generation Solutions - The BYOG (Bring Your Own Generation) model has emerged as a practical solution, allowing data centers to quickly start operations without waiting for grid connections [11][48]. - Major AI companies, including xAI, OpenAI, and Oracle, are leading the trend of onsite power generation, with significant projects underway, such as a 2.3GW gas power plant in Texas [16][29]. Group 4: Gas as the Preferred Energy Source - Natural gas has become the dominant choice for onsite power generation due to its scalability, stability, and rapid deployment capabilities, unlike nuclear or renewable sources [20][21]. - The competition in AI is increasingly defined by speed rather than cost, with companies prioritizing quick power access over traditional cost considerations [22]. Group 5: Market Dynamics and New Entrants - The onsite gas power generation market is experiencing unprecedented growth, with over a dozen suppliers securing contracts for AI data centers, indicating a shift in how power is viewed within AI infrastructure [17][30]. - New entrants, such as Doosan Energy and Wärtsilä, are capitalizing on this trend, with significant orders for gas turbines to support AI data centers [30][31]. Group 6: Challenges and Considerations - While onsite power generation offers speed, it also presents challenges, including higher long-term costs compared to grid power and complex permitting processes [34][36]. - The deployment of onsite power systems requires careful planning to ensure redundancy and reliability, as the complexity of managing power independently from the grid increases [94][100].

Core Viewpoint - Energizer Holdings reported mixed results in its fourth-quarter fiscal 2025 earnings, with net sales exceeding estimates but earnings per share falling short, leading to concerns about future performance and organic sales decline [2][3][12]. Financial Performance - Adjusted earnings per share were $1.05, missing the Zacks Consensus Estimate of $1.12, and decreased by 13.9% year over year [2]. - Net sales reached $832.8 million, surpassing the Zacks Consensus Estimate of $831 million, and increased by 3.4% from the previous year [3]. - Organic net sales declined by 2.2% year over year, primarily due to a 2.9% decrease in volumes linked to softer consumer demand in North America [4]. Segment Performance - The Batteries & Lights segment saw net sales increase by 3.9% to $677.2 million, but segment profit decreased by 15.4% to $151.8 million [5]. - The Auto Care segment's net sales rose by 1% to $155.6 million, with segment profit increasing by 29% to $25.8 million [5]. Margin and Cost Analysis - Adjusted gross profit was $320.3 million, down 5.7% year over year, with adjusted gross margin contracting by 370 basis points to 38.5% due to higher input costs and production inefficiencies [6]. - Adjusted SG&A expenses increased by 4.2% year over year to $128.2 million, driven by additional costs from the APS business and higher investments in digital transformation [8]. - Adjusted EBITDA was $171.2 million, down 8.6% year over year, with the adjusted EBITDA margin decreasing by 260 basis points to 20.6% [9]. Financial Health - As of September 30, 2025, cash and cash equivalents were $236.2 million, with long-term debt at $3.41 billion and shareholders' equity of $169.9 million [11]. - Operating cash flow for the fiscal fourth quarter was $147.1 million, and free cash flow was $63.2 million [11]. Future Outlook - For fiscal 2026, the company anticipates organic net sales to be flat to slightly higher, with a modest decline in gross margin expected [12]. - Adjusted earnings per share are projected to range from $3.30 to $3.60, with adjusted EBITDA expected between $580 million and $610 million [13]. - The first quarter is expected to reflect a difficult sales comparison, with organic net sales anticipated to decline by a high single-digit percentage [13]. Market Position - Estimates for Energizer have trended downward, leading to a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [16]. - In comparison, National Vision, a peer in the consumer products industry, has seen a 14.9% increase in stock price over the past month, with positive earnings growth [17].

Core Insights - Energizer Holdings, Inc. (NYSE:ENR) is recognized as one of the best dividend stocks to buy, with an average price target suggesting a 26% upside and a Street high indicating a potential upside of 92% [1][2] - The company reported fourth-quarter financial results for FY2025, with net sales reaching $832.8 million, a 3.4% increase, driven by acquisition net sales of $42.8 million, although organic net sales decreased by 2.2% [2][3] - Net earnings for the fourth quarter were $34.9 million, down from $47.6 million in the same period last year, primarily due to a non-cash pre-tax impairment of $5.9 million and increased losses from debt payoff [3] Financial Performance - Net sales for the fourth quarter were $832.8 million, reflecting a 3.4% increase [2] - Acquisition net sales contributed $42.8 million, while organic net sales fell by 2.2% [2] - Net earnings decreased to $34.9 million from $47.6 million year-over-year [2][3] Dividend Information - The company paid out $21.3 million in dividends for the quarter, equating to $0.30 per share [3] Company Overview - Energizer Holdings, Inc. is based in Saint Louis and was founded in 2015, focusing on manufacturing batteries, lighting products, and car and household care items globally [3]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Global Capital Goods** industry, specifically the **data center** sector, which is experiencing significant growth in power demand and generation strategies [2][3][4]. Core Insights and Arguments 1. **Power Generation Bottleneck**: Power availability is a critical bottleneck for data center development, influencing site selection and expansion strategies. Off-grid power generation is becoming increasingly important [2][4]. 2. **Data Center Pipeline Growth**: The US data center pipeline capacity has grown significantly, exceeding **245 GW** with monthly additions of **435 MW**. The top 15 developers account for **59%** of this capacity [3][10][11]. 3. **On-Site Power Generation**: There is a shift towards on-site power generation due to constraints in the US grid infrastructure. Gas accounts for approximately **50%** of planned capacity increases, followed by battery storage, solar, and nuclear [4][51]. 4. **Gas Turbines vs. Gas Engines**: With gas turbine lead times extending to **4-6 years**, gas engines are becoming a viable alternative for data center developers, despite their lower efficiency and higher costs [5][54][76]. 5. **Investment Recommendations**: Analysts recommend buying stocks in **Wartsila** and **Siemens Energy** due to favorable demand and pricing dynamics in the gas turbine market [6][76]. 6. **Long-Term Power Demand**: The demand for power generation is expected to grow significantly between **2026-2030**, driven by the expansion of data center capacity [3][13]. 7. **Regulatory Environment**: Proposed federal regulations may favor data centers with on-site power generation, potentially increasing electricity costs for those relying solely on grid connections [44][45]. Additional Important Insights 1. **Reliability and Redundancy**: Reliability is crucial for data center design, with most larger facilities classified as Tier III or IV, necessitating backup systems for critical infrastructure [22][23]. 2. **Shift in Data Center Locations**: There is a trend of data centers moving from urban to more remote locations, which may increase the demand for off-grid power generation solutions [30][34]. 3. **Intermittent Power Sources**: Renewable energy sources like solar and wind face challenges due to their intermittent nature, which complicates their integration into data center power strategies [40][58]. 4. **Fuel Cells and Alternative Technologies**: While fuel cells offer rapid deployment advantages, their high costs and limited operational history make them a niche solution compared to gas turbines and engines [98]. 5. **Market Dynamics**: The gas turbine market is expected to face supply constraints, leading to increased prices and longer lead times, which may benefit gas engine manufacturers in the short term [72][76]. This summary encapsulates the critical insights and trends discussed in the conference call, highlighting the evolving landscape of power generation for data centers and the implications for investment strategies in the capital goods sector.