Core Viewpoint - The analysis revisits Energizer Holdings (ENR) following a previous recommendation to buy based on its strong market position and potential for growth [1]. Group 1: Company Analysis - Energizer Holdings was rated as a Buy in mid-September of the previous year due to its strong fundamentals and market opportunities [1]. - The company operates in a financial environment where stocks that are less followed by average investors may present better profit opportunities [1]. Group 2: Market Perspective - The financial markets are viewed as efficient, with most stocks reflecting their real current value, suggesting that mispriced stocks can offer investment opportunities [1].

Core Viewpoint - The analysis revisits Energizer Holdings (ENR) following a previous recommendation to buy based on its strong market position and potential for growth [1]. Group 1: Company Analysis - Energizer Holdings was rated as a Buy in mid-September of the previous year due to its strong fundamentals and market opportunities [1]. - The company operates in a financial environment where stocks that are less followed by average investors may present better profit opportunities [1]. Group 2: Market Perspective - The financial markets are viewed as efficient, with most stocks reflecting their real current value, suggesting that mispriced stocks can offer investment opportunities [1].

Key Takeaways ENR posted Q1 EPS of 31 cents, topping estimates, though profits fell year over year from tariff pressures.ENR's sales rose 6.5% on APS acquisition and currency gains, while organic sales fell amid softer U.S. demand.ENR reaffirmed plans for margin recovery and stronger earnings in fiscal 2026's second half.Energizer Holdings, Inc. (ENR) reported first-quarter fiscal 2026 results, wherein net sales and earnings surpassed the Zacks Consensus Estimate. While the top line increased year over year ...

Core Viewpoint - The article emphasizes the investment philosophy focused on identifying mispriced securities through understanding the financial drivers of companies, often revealed by DCF model valuation [1]. Group 1: Investment Philosophy - The investment approach is centered on small cap companies across US, Canadian, and European markets [1]. - The methodology is flexible, not confined to traditional value, dividend, or growth investing, but considers all prospects of a stock to assess risk-to-reward [1].

Acquisition and Business Performance - The Company acquired Advanced Power Solutions (APS) on May 2, 2025, contributing $64.6 million in net sales and $5.3 million in segment profit for the Batteries and Lights segment during the three months ended December 31, 2025[147]. - Batteries & Lights segment net sales increased by 8.3% to $685.2 million, driven by the APS acquisition, while organic sales declined by 3.8%[177]. - Energizer reported a net loss of $3.4 million, or a loss of $0.05 per common share, for the first fiscal quarter, compared to net earnings of $22.3 million, or $0.30 per common share, in the prior year[158]. - Adjusted diluted net earnings per common share were $0.31 for the first fiscal quarter, down from $0.67 in the prior year quarter[160]. - Net sales for the first fiscal quarter of 2026 were $778.9 million, an increase of $47.2 million, or 6.5%, compared to the prior year quarter[164]. - Organic net sales declined by 4.3%, primarily due to decreased volumes from softer consumer demand in the U.S.[164]. Cost Management and Restructuring - The Company achieved approximately $206 million in savings from the Project Momentum program as of September 30, 2025, primarily within COGS and SG&A[152]. - The Company incurred $20.3 million in pre-tax costs related to Project Momentum during the quarter ended December 31, 2024, primarily consisting of severance, accelerated depreciation, and consulting costs[152]. - The total estimated restructuring and related pre-tax costs for the fourth year of the program are expected to be between $35.0 million and $40.0 million, with additional costs of $25.0 million to $30.0 million related to U.S. manufacturing efficiency initiatives[155]. - The company incurred $30.9 million in pre-tax restructuring and related costs during the quarter, primarily for severance and other benefits[156]. Financial Outlook and Tax Credits - The Company expects future production tax credits from the Inflation Reduction Act to be approximately $55 to $65 million based on current regulations prior to the phase-out period[146]. - The Company recognized a credit of $9.7 million for production credits during the first fiscal quarter of 2026, following the achievement of reasonable assurance over the ability to claim these credits[145]. - The effective tax rate for adjusted net earnings was 22.5%, down from 24.8% in the prior year, attributed to production tax credits[173]. Macroeconomic and Operational Challenges - The Company anticipates continued macroeconomic pressures and geopolitical instability, which may negatively impact financial results and operations in fiscal 2026[149]. - The Company is subject to risks related to international operations, including tariffs and currency fluctuations, which could adversely affect results of operations[133]. - The Company extended Project Momentum into fiscal 2026 to help neutralize the impact of tariffs and optimize manufacturing and supply chain networks[150]. Segment Performance and Profitability - Global reported segment profit declined 17.9%, with an organic profit decline of $35.1 million, or 25.1%, due to decreased organic net sales and increased input costs[180]. - Batteries & Lights segment profit decreased by 11.4%, with an organic segment profit decline of $23.0 million, or 19.3%, impacted by tariffs and increased input costs[181]. - Auto Care reported a net sales decrease of 5.6% compared to the prior year, driven by an organic net sales decline of $6.9 million, or 6.9%[178]. - Auto Care segment profit decreased by 55.6%, with an organic segment profit decline of $12.1 million, or 59.0%, due to increased input costs from tariffs[182]. Cash Flow and Investments - Cash flow from operating activities was $149.5 million for the three months ended December 31, 2025, compared to $77.0 million in the prior year, driven by working capital changes[188]. - Net cash used by investing activities was $25.3 million for the three months ended December 31, 2025, primarily related to capital expenditures[189]. - Total investing cash outflows of approximately $75 to $85 million are anticipated in fiscal 2026 for capital expenditures, including investments from Project Momentum[190]. Debt and Financial Instruments - The Company had $214.8 million in cash and cash equivalents as of December 31, 2025, with approximately 90% held outside the U.S.[185]. - The Company has a Senior Secured Term Loan of $765.7 million due in 2032 and a $500 million Revolving Credit Facility due in 2030[186]. - As of December 31, 2025, Energizer had variable rate debt outstanding of $766.2 million under the Term Loan and international borrowings[209]. - The company recorded an unrealized pre-tax gain of $21.0 million on the interest rate swap as of December 31, 2025[211]. - The company has an interest rate swap that fixes the variable benchmark component (SOFR) at an interest rate of 1.042% on variable rate debt of $500.0 million[210]. - The weighted average interest rate on variable rate debt, inclusive of the interest rate swap, was 4.02% for the quarter ended December 31, 2025[211]. Currency and Inflation Accounting - The change in estimated fair value of foreign currency derivative contracts resulted in a loss of $0.9 million for the quarter ended December 31, 2025[206]. - The Egypt subsidiary's financial statements were consolidated under highly inflationary accounting effective October 1, 2024, due to a cumulative inflation rate exceeding 100 percent[213]. - The Argentina subsidiary's financial statements have been consolidated under highly inflationary accounting since July 1, 2018, also due to a cumulative inflation rate exceeding 100 percent[214]. - The financial impact of using highly inflationary accounting for Egypt and Argentina is difficult to determine and depends on exchange rate movements and monetary assets and liabilities[215]. - The company uses hedging instruments to reduce exposure to price volatility of raw materials[207]. - The company recorded an unrealized pre-tax gain of $2.6 million as of December 31, 2025, on the interest rate swap related to future zinc purchases[208].

Energizer (NYSE:ENR) Q1 2026 Earnings call February 05, 2026 10:00 AM ET Company ParticipantsAndrea Teixeira - Executive DirectorCarla Casella - Managing DirectorJohn Drabik - EVP and CFOJon Poldan - VP, Treasurer, and Head of Investor RelationsLauren Lieberman - Managing DirectorMark LaVigne - President and CEORobert Ottenstein - Senior Managing DirectorConference Call ParticipantsPeter Grom - Equity Research AnalystWilliam Reuter - Managing Director and Senior Research AnalystOperatorGood morning. My name ...

Energizer (NYSE:ENR) Q1 2026 Earnings call February 05, 2026 10:00 AM ET Company ParticipantsAndrea Teixeira - Executive DirectorCarla Casella - Managing DirectorJohn Drabik - EVP and CFOJon Poldan - VP, Treasurer, and Head of Investor RelationsLauren Lieberman - Managing DirectorMark LaVigne - President and CEORobert Ottenstein - Senior Managing DirectorConference Call ParticipantsPeter Grom - Equity Research AnalystWilliam Reuter - Managing Director and Senior Research AnalystOperatorGood morning. My name ...

Energizer (NYSE:ENR) Q1 2026 Earnings call February 05, 2026 10:00 AM ET Speaker7Good morning. My name is Julie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Energizer's first fiscal year 2026 conference call. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question, please press star, followed by the number one on your touchtone phone. If you'd like to withdraw your question, please press star, followed ...

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 ...

分组1 - Energizer Holdings reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $0.67 per share a year ago, representing an earnings surprise of +19.23% [1] - The company posted revenues of $778.9 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 8.97%, compared to year-ago revenues of $731.7 million [2] - Energizer shares have increased approximately 17.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $693.53 million, and for the current fiscal year, it is $3.41 on revenues of $3.01 billion [7] - The Consumer Products - Staples industry, to which Energizer belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stock performance [8]