Core Insights - Energizer Holdings (ENR) reported quarterly earnings of $1.13 per share, significantly exceeding the Zacks Consensus Estimate of $0.61 per share, and up from $0.79 per share a year ago, representing an earnings surprise of +85.25% [1] - The company achieved revenues of $725.3 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.39% and increasing from $701.4 million year-over-year [2] - Energizer has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates twice in the same period [2] Future Outlook - The immediate price movement of Energizer's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.44 on revenues of $824.33 million, while the estimate for the current fiscal year is $3.40 on revenues of $2.92 billion [7] - The Zacks Rank for Energizer is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Energizer belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Energizer Holdings, Inc. Fiscal 2025 Third Quarter Results Overview](index=1&type=section&id=Energizer%20Holdings%2C%20Inc.%20Fiscal%202025%20Third%20Quarter%20Results%20Overview) Summarizes Energizer Holdings, Inc.'s strong Q3 FY25 results and updated full-year outlook [Highlights of Third Quarter Performance](index=1&type=section&id=Highlights%20of%20Third%20Quarter%20Performance) Energizer Holdings, Inc. announced strong fiscal 2025 third-quarter results, exceeding outlooks for net sales, adjusted gross margin, and adjusted EPS, significantly benefiting from Advanced Manufacturing Production Credits and Project Momentum initiatives Third Quarter 2025 Key Financial Highlights | Metric | Value | Change YoY (Adjusted) | | :-------------------------------- | :---------------- | :-------------------- | | Reported Net Sales | $725.3 million | +3.4% | | Organic Net Sales Growth | +0.1% | | | Reported Gross Margin | 55.1% | | | Adjusted Gross Margin | 44.8% | +330 basis points | | Reported EPS | $2.13 | | | Adjusted EPS | $1.13 | +43% | | Adjusted EPS (prior to production credits) | $0.78 | | - The company's performance was bolstered by qualification for production credits due to investments in US manufacturing capabilities and the benefits of Project Momentum, which aims to restore margins, increase operational agility, and invest in growth[1](index=1&type=chunk) [Updated Full Year 2025 Outlook](index=1&type=section&id=Updated%20Full%20Year%202025%20Outlook) Energizer Holdings, Inc. has increased its full-year fiscal 2025 outlook for net sales, adjusted EBITDA, and adjusted earnings per share, reflecting higher earnings from pricing, tariff mitigation, and the inclusion of production credits Updated Full Year 2025 Outlook | Metric | Previous Outlook | New Outlook | | :-------------------- | :--------------- | :-------------------- | | Net Sales Growth | N/A | +1% to 3% | | Adjusted EPS Range | N/A | $3.55 to $3.65 | | Adjusted EBITDA | N/A | $630 to $640 million | - The company expects to generate **7% - 10% Adjusted Earnings Per Share growth** in Fiscal Year 2025 and is strongly positioned for continued earnings growth in Fiscal Year 2026[1](index=1&type=chunk) [CEO Statement](index=1&type=section&id=CEO%20Statement) CEO Mark LaVigne highlighted that the quarter's performance demonstrates the success of Project Momentum in restoring margins, increasing operational agility, and driving growth, further strengthened by production credits from US manufacturing investments - Project Momentum, launched three years ago, has successfully restored margins, increased operational agility, and fostered growth, as evidenced by organic top-line growth, strong gross margins, and robust earnings in the current quarter[1](index=1&type=chunk) - The business has been further strengthened by qualification for production credits, a direct result of investments and focus on US manufacturing capabilities[1](index=1&type=chunk) - The increased outlook reflects higher earnings driven by pricing strategies, tariff mitigation efforts, and the inclusion of production credits, with confidence in generating ongoing earnings growth and long-term shareholder value[1](index=1&type=chunk) [Third Quarter 2025 Financial Review](index=2&type=section&id=Third%20Quarter%202025%20Financial%20Review) Detailed Q3 FY25 financial review, covering net sales, gross margin, operating expenses, earnings, and cash flow [Net Sales](index=2&type=section&id=Net%20Sales) Net sales for the third fiscal quarter increased by 3.4% year-over-year, reaching $725.3 million, primarily driven by the acquisition of Advanced Power Solutions NV and a slight organic net sales increase Third Quarter Net Sales Performance (FY'25 vs FY'24) | Category | FY'25 Net Sales ($M) | FY'24 Net Sales ($M) | % Change | | :-------------------------------- | :------------------- | :------------------- | :------- | | Total Net Sales | 725.3 | 701.4 | +3.4% | | Organic | 0.8 | | +0.1% | | Acquisition impact (APS NV) | 20.8 | | +3.0% | | Change in hyperinflationary markets | 1.4 | | +0.2% | | Impact of currency | 0.9 | | +0.1% | - The Advanced Power Solutions NV (APS NV) acquisition, completed on May 2, 2025, contributed **$20.8 million** to Net sales[4](index=4&type=chunk) [Gross Margin](index=2&type=section&id=Gross%20Margin) Reported gross margin significantly increased to 55.1% from 39.5% in the prior year, largely due to $112.4 million in production credits, with adjusted gross margin also improving by 330 basis points to 44.8% Third Quarter Gross Margin Analysis (FY'25 vs FY'24) | Metric | FY'25 | FY'24 | | :------------------------------------------------ | :------ | :------ | | Reported Gross Margin | 55.1% | 39.5% | | Adjusted Gross Margin | 44.8% | 41.5% | | **Impact of Production Credits:** | | | | Estimated FY25 production credits | $33.9 million | | | Estimated FY23 & FY24 retroactive production credits | $78.5 million | | - Adjusted Gross margin improvement was driven by estimated **FY25 production credits ($33.9 million)** and **Project Momentum savings (approximately $12 million)**[6](index=6&type=chunk) - These benefits were partially offset by product cost impacts from increased freight and warehousing, production inefficiencies, planned strategic pricing and promotional investments, and a slightly lower margin on the APS NV business[6](index=6&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Details the company's operating expenses, including SG&A and A&P, and their key drivers [Selling, General and Administrative Expense (SG&A)](index=2&type=section&id=Selling%2C%20General%20and%20Administrative%20Expense%20(SG%26A)) SG&A, excluding certain non-recurring items, increased in dollar terms to $123.6 million, representing 17.0% of Net sales, primarily due to the APS NV acquisition, investments in digital transformation, and higher legal fees Third Quarter SG&A (Adjusted) | Metric | FY'25 | FY'24 | | :------------------------------------------------ | :---------------- | :---------------- | | SG&A (excluding restructuring, acquisition costs, litigation) | $123.6 million | $118.4 million | | SG&A as % of Net sales | 17.0% | 16.9% | - The year-over-year dollar increase in SG&A was primarily driven by increased SG&A from the APS NV business (**$4.5 million**), investment in digital transformation and growth initiatives, and increased legal fees[8](index=8&type=chunk) - These increases were partially offset by **Project Momentum savings of approximately $3 million** in the quarter[8](index=8&type=chunk) [Advertising and Promotion Expense (A&P)](index=3&type=section&id=Advertising%20and%20Promotion%20Expense%20(A%26P)) A&P expense increased by $5.5 million to 6.0% of Net sales, reflecting strategic investment in the launch of the Podium Series Third Quarter A&P Expense | Metric | FY'25 | FY'24 | | :-------------------- | :------ | :------ | | A&P Expense | $43.4 million | $37.9 million | | A&P as % of Net sales | 6.0% | 5.4% | - The increase in A&P was primarily driven by investment in the launch of the Podium Series[8](index=8&type=chunk) [Earnings Per Share (EPS) and Adjusted EBITDA](index=3&type=section&id=Earnings%20Per%20Share%20(EPS)%20and%20Adjusted%20EBITDA) Net earnings significantly improved to $153.5 million from a prior-year loss, with diluted EPS at $2.13, while Adjusted net earnings and Adjusted diluted EPS also saw substantial increases, driven by production credits and Project Momentum savings Third Quarter Earnings Per Share and Adjusted EBITDA | Metric | 2025 ($M) | 2024 ($M) | | :--------------------------------------- | :-------- | :-------- | | Net earnings/(loss) | 153.5 | (43.8) | | Diluted net earnings/(loss) per common share | 2.13 | (0.61) | | Adjusted Net earnings | 81.5 | 57.4 | | Adjusted Diluted net earnings per common share | 1.13 | 0.79 | | Adjusted EBITDA | 171.4 | 149.7 | | Currency neutral Adjusted Diluted net earnings per common share | 1.16 | | | Currency neutral Adjusted EBITDA | 173.9 | | - Net earnings, EPS, Adjusted EPS, and Adjusted EBITDA were positively impacted by **production credits** and **Project Momentum savings**[9](index=9&type=chunk) - These improvements were partially offset by higher A&P and SG&A spend and currency impacts compared to the prior year, with the prior year net loss due to a **$110.6 million non-cash pre-tax impairment charge** on indefinite-lived intangibles[9](index=9&type=chunk) [Free Cash Flow and Capital Allocation](index=3&type=section&id=Free%20Cash%20Flow%20and%20Capital%20Allocation) For the nine months ended June 30, 2025, operating cash flow was $85.6 million, resulting in free cash flow of $16.5 million, alongside strategic capital allocation activities including an acquisition, share repurchases, and dividend payments Nine Months Ended June 30, 2025 Cash Flow & Capital Allocation | Metric | Value ($M) | | :-------------------------------- | :----------- | | Operating cash flow | 85.6 | | Free cash flow | 16.5 | | APS NV acquisition cash consideration | 15.2 | | Common stock repurchased (Q3) | 62.6 | | Shares repurchased (Q3) | 2.8 million | | Average repurchase price (Q3) | $22.40 per share | | Dividend payments (Q3) | 21.0 | | Dividends per common share (Q3) | $0.30 | - Subsequent to the quarter, the Company repurchased an additional **1.2 million shares of common stock at $22.49 per share**[14](index=14&type=chunk) [Fiscal Year 2025 Financial Outlook](index=3&type=section&id=Fiscal%20Year%202025%20Financial%20Outlook) Outlines updated fiscal year 2025 financial projections, including full-year guidance and Q4 expectations [Full Year Guidance](index=3&type=section&id=Full%20Year%20Guidance) Energizer Holdings, Inc. has updated its fiscal 2025 guidance, projecting Net sales growth of 1% to 3% and an increased Adjusted Earnings Per Share range of $3.55 to $3.65, with Adjusted EBITDA expected between $630 million and $640 million Fiscal Year 2025 Full Year Guidance | Metric | Range | | :-------------------------------- | :-------------------- | | Net Sales Growth | 1% to 3% | | Organic Net Sales | Flat to +2% | | Adjusted Earnings Per Share | $3.55 to $3.65 | | Adjusted EBITDA | $630 to $640 million | | Estimated production credits benefit (prior to reinvestment) | $40 to $45 million | - The Net Sales growth outlook includes **$40 to $50 million** from the recently acquired APS NV business[11](index=11&type=chunk) [Fourth Quarter Expectations](index=3&type=section&id=Fourth%20Quarter%20Expectations) For the fourth quarter, the company anticipates reported Net Sales growth of 2% to 4% and Adjusted Earnings Per Share in the range of $1.05 to $1.15, with gross margin expected to be impacted by transitory costs Fiscal Year 2025 Fourth Quarter Expectations | Metric | Range | | :-------------------------------- | :-------------------- | | Reported Net Sales Growth | 2% to 4% | | Organic Net Sales | Flat to down 2% | | Adjusted Earnings Per Share | $1.05 to $1.15 | | Estimated production credits benefit (prior to reinvestment) | $5 to $10 million | - Fourth quarter gross margin is expected to be impacted by approximately **$20 million of transitory costs**, including tariffs and short-term operational inefficiencies from network realignment and investment[13](index=13&type=chunk) [Webcast Information](index=3&type=section&id=Webcast%20Information) Energizer Holdings, Inc. provided details for accessing its investor conference call and webcast, which will cover third fiscal quarter earnings and recent business trends, with prepared comments and a replay available online - Prepared comments were posted under the Investor/Events & Presentations section of the Company website around **7:00 a.m. Eastern Time**[14](index=14&type=chunk) - An investor conference call was held at **10:00 a.m. Eastern Time on August 4, 2025**, focusing on third fiscal quarter earnings and recent business trends[14](index=14&type=chunk)[15](index=15&type=chunk) - A live webcast and replay are accessible via www.energizerholdings.com under 'Investors' and 'Events and Presentations' tabs[15](index=15&type=chunk) [Forward-Looking Statements and Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines the inherent uncertainties and potential risks associated with Energizer Holdings, Inc.'s forward-looking statements, detailing numerous factors that could cause actual results to differ materially from projections - Forward-looking statements are not guarantees of performance and are subject to known and unknown risks, uncertainties, and assumptions that could cause actual results to differ materially[17](index=17&type=chunk) - Key risk factors include global economic and financial market conditions, intense competition, changes in retail environment and consumer preferences, loss of brand reputation or principal customers, and challenges in product innovation[17](index=17&type=chunk) - Additional risks encompass international operations (tariffs, currency fluctuations), supply chain disruptions, production cost changes (inflation), reliance on suppliers, IT system failures, ability to attract/retain employees, significant debt obligations, and the uncertainty of benefiting from Section 45X production tax credits[17](index=17&type=chunk)[19](index=19&type=chunk) [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) Presents unaudited consolidated financial statements: earnings, balance sheets, and cash flows, for a comprehensive financial overview [Consolidated Statement of Earnings](index=6&type=section&id=Consolidated%20Statement%20of%20Earnings) The condensed consolidated statement of earnings shows a significant turnaround from a net loss in the prior year to net earnings in Q3 FY25 and for the nine months ended June 30, 2025, primarily driven by increased gross profit and the absence of prior-year impairment charges Consolidated Statement of Earnings (Condensed) - Q3 and Nine Months Ended June 30 | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9 Months 2025 ($M) | 9 Months 2024 ($M) | | :-------------------------------- | :----------- | :----------- | :----------------- | :----------------- | | Net sales | 725.3 | 701.4 | 2,119.9 | 2,081.3 | | Cost of products sold | 325.6 | 424.2 | 1,191.6 | 1,283.8 | | Gross profit | 399.7 | 277.2 | 928.3 | 797.5 | | Selling, general and administrative expense | 128.3 | 129.6 | 395.6 | 380.2 | | Advertising and sales promotion expense | 43.4 | 37.9 | 117.6 | 106.3 | | Impairment of intangible assets | — | 110.6 | — | 110.6 | | Net earnings/(loss) | 153.5 | (43.8) | 204.1 | (9.5) | | Diluted net earnings/(loss) per common share | 2.13 | (0.61) | 2.80 | (0.13) | - Cost of products sold in Q3 2025 includes an estimated **$112.4 million in production credits**, with **$33.9 million for FY25** and **$78.5 million as a retroactive adjustment for FY23 & FY24**[21](index=21&type=chunk) - The prior year's net loss was significantly impacted by a **$110.6 million impairment of intangible assets** related to the Rayovac and Varta trade names[21](index=21&type=chunk) [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet as of June 30, 2025, shows an increase in total assets, driven by higher inventories and other current assets, and a corresponding increase in total liabilities, primarily long-term debt and notes payable, with shareholders' equity also increasing Consolidated Balance Sheets (Condensed) - June 30, 2025 vs. September 30, 2024 | Metric | June 30, 2025 ($M) | September 30, 2024 ($M) | | :-------------------------------- | :----------------- | :---------------------- | | Total assets | 4,516.0 | 4,342.4 | | Total current assets | 1,642.4 | 1,478.9 | | Inventories | 870.1 | 657.3 | | Total liabilities | 4,332.8 | 4,206.6 | | Long-term debt | 3,218.4 | 3,193.0 | | Notes payable | 134.6 | 2.1 | | Total shareholders' equity | 183.2 | 135.8 | - The increase in total assets is largely attributable to a significant rise in **inventories** and **other current assets**[23](index=23&type=chunk) - The increase in total liabilities is primarily due to higher **long-term debt** and a substantial increase in **notes payable**[23](index=23&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2025, net cash from operating activities decreased significantly compared to the prior year, primarily due to changes in current assets and liabilities and the impact of production credits, while cash used in investing activities remained stable and financing activities decreased Consolidated Statements of Cash Flows (Condensed) - Nine Months Ended June 30 | Metric | 2025 ($M) | 2024 ($M) | | :-------------------------------- | :-------- | :-------- | | Net cash from operating activities | 85.6 | 260.7 | | Net cash used by investing activities | (81.9) | (89.0) | | Net cash used by financing activities | (49.8) | (223.9) | | Net decrease in cash, cash equivalents, and restricted cash | (45.8) | (76.6) | | Cash, cash equivalents, and restricted cash, end of period | 171.1 | 146.7 | - The decrease in net cash from operating activities in 2025 was influenced by a negative impact from **production credits ($112.4 million)** and changes in current assets and liabilities used in operations[25](index=25&type=chunk) - Financing activities in 2025 included significant debt issuance and payments, as well as **common stock repurchases ($62.6 million)** and **dividend payments ($66.6 million)**[25](index=25&type=chunk) [Supplemental Non-GAAP Financial Information](index=9&type=section&id=Supplemental%20Non-GAAP%20Financial%20Information) Provides supplemental non-GAAP financial information: measure explanations, segment performance, and GAAP to adjusted reconciliations [Explanation of Non-GAAP Measures](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Energizer Holdings, Inc. provides various non-GAAP financial measures to offer additional insights into its ongoing operating performance, excluding items not reflective of core business, such as restructuring costs, acquisition expenses, and certain production credits, aiding investors in year-over-year comparability and analysis - Non-GAAP measures exclude items like restructuring and related costs, network transition costs, acquisition and integration costs, FY23 & FY24 production credits, impairment of intangible assets, litigation matters, debt extinguishment/modification losses, and the December 2023 Argentina Economic Reform[27](index=27&type=chunk) - Key non-GAAP measures defined include Segment Profit, Adjusted Net Earnings and Adjusted Diluted Net Earnings per Common Share (EPS), Non-GAAP Tax Rate, Organic growth, Adjusted Comparisons, EBITDA and Adjusted EBITDA, Free Cash Flow, Net Debt, and Currency-neutral results[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - The company emphasizes that non-GAAP measures should be considered in addition to, not as a substitute for, comparable GAAP measures[27](index=27&type=chunk) [Segment Performance](index=10&type=section&id=Segment%20Performance) Analyzes Batteries & Lights and Auto Care segment performance, detailing net sales, profit, and depreciation/amortization [Segment Net Sales and Profit](index=10&type=section&id=Segment%20Net%20Sales%20and%20Profit) The Batteries & Lights segment showed strong net sales and profit growth in Q3 FY25, driven by organic growth and acquisition impact, while the Auto Care segment experienced a slight decline in net sales but an increase in segment profit for the nine months Segment Net Sales - Q3 and Nine Months Ended June 30 | Segment | Q3 2025 Net Sales ($M) | Q3 2024 Net Sales ($M) | Q3 % Chg | 9 Months 2025 Net Sales ($M) | 9 Months 2024 Net Sales ($M) | 9 Months % Chg | | :---------------- | :--------------------- | :--------------------- | :--------- | :--------------------------- | :--------------------------- | :------------- | | Batteries & Lights | 535.1 | 509.1 | +5.1% | 1,655.5 | 1,607.9 | +3.0% | | Auto Care | 190.2 | 192.3 | -1.1% | 464.4 | 473.4 | -1.9% | | **Total Net Sales** | **725.3** | **701.4** | **+3.4%** | **2,119.9** | **2,081.3** | **+1.9%** | Segment Profit - Q3 and Nine Months Ended June 30 | Segment | Q3 2025 Segment Profit ($M) | Q3 2024 Segment Profit ($M) | Q3 % Chg | 9 Months 2025 Segment Profit ($M) | 9 Months 2024 Segment Profit ($M) | 9 Months % Chg | | :---------------- | :-------------------------- | :-------------------------- | :--------- | :-------------------------------- | :-------------------------------- | :------------- | | Batteries & Lights | 158.8 | 129.4 | +22.7% | 390.4 | 375.3 | +4.0% | | Auto Care | 24.1 | 26.8 | -10.1% | 79.8 | 74.1 | +7.7% | | **Total Segment Profit** | **182.9** | **156.2** | **+17.1%** | **470.2** | **449.4** | **+4.6%** | - Batteries & Lights organic net sales increased **0.5% in Q3** and **2.6% for the nine months**, while Auto Care organic net sales decreased **0.9% in Q3** and **0.9% for the nine months**[52](index=52&type=chunk) [Segment Depreciation and Amortization](index=10&type=section&id=Segment%20Depreciation%20and%20Amortization) Both segments experienced an increase in depreciation and amortization for Q3 and the nine months ended June 30, 2025, contributing to the overall rise in total depreciation and amortization Segment Depreciation and Amortization - Q3 and Nine Months Ended June 30 | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9 Months 2025 ($M) | 9 Months 2024 ($M) | | :-------------------------------- | :----------- | :----------- | :----------------- | :----------------- | | Batteries & Lights | 13.7 | 12.9 | 40.6 | 37.2 | | Auto Care | 3.5 | 3.3 | 9.9 | 8.9 | | **Total segment depreciation and amortization** | **17.2** | **16.2** | **50.5** | **46.1** | | Amortization of intangible assets | 14.7 | 14.5 | 44.1 | 43.5 | | **Total depreciation and amortization** | **31.9** | **30.7** | **94.6** | **89.6** | [GAAP EPS to Adjusted EPS Reconciliation](index=11&type=section&id=GAAP%20EPS%20to%20Adjusted%20EPS%20Reconciliation) The reconciliation highlights the significant impact of non-GAAP adjustments, particularly the FY23 & FY24 production credits, which transformed a GAAP net loss in the prior year to a positive adjusted net earnings, demonstrating the underlying operational performance GAAP EPS to Adjusted EPS Reconciliation - Q3 and Nine Months Ended June 30 | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9 Months 2025 ($M) | 9 Months 2024 ($M) | | :--------------------------------------- | :----------- | :----------- | :----------------- | :----------------- | | Net earnings/(loss) | 153.5 | (43.8) | 204.1 | (9.5) | | Total adjustments, pre-tax | (70.0) | 132.2 | (6.6) | 204.2 | | Total adjustments, after tax | (72.0) | 101.2 | (23.8) | 161.5 | | Adjusted Net earnings | 81.5 | 57.4 | 180.3 | 152.0 | | Diluted net earnings/(loss) per common share | 2.13 | (0.61) | 2.80 | (0.13) | | Adjusted Diluted net earnings per diluted common share | 1.13 | 0.79 | 2.47 | 2.09 | | Adjusted EPS excluding production credits | 0.78 | 0.79 | 2.12 | 2.09 | - The FY23 & FY24 production credits had a significant positive impact on adjusted earnings, reducing pre-tax adjustments by **$78.5 million** in Q3 and for the nine months ended June 30, 2025[43](index=43&type=chunk) - The effective tax rate for Adjusted Net earnings and Adjusted Diluted EPS for Q3 2025 was **13.5% (23.2% in Q3 2024)** and for the nine months was **19.5% (23.4% in 9M 2024)**[44](index=44&type=chunk) [Currency Neutral Results](index=12&type=section&id=Currency%20Neutral%20Results) Currency-neutral results demonstrate stronger underlying growth for Adjusted diluted net earnings per common share and Adjusted EBITDA, indicating that foreign currency fluctuations had a negative impact on reported figures Currency Neutral Results - Q3 and Nine Months Ended June 30 | Metric | Q3 2025 As Reported | Q3 2025 Currency Neutral | Q3 2024 | Q3 % Change As Reported | Q3 % Change Currency Neutral | | :--------------------------------------- | :------------------ | :----------------------- | :-------- | :---------------------- | :--------------------------- | | Adjusted diluted net earnings per common share | $1.13 | $1.16 | $0.79 | 43.0% | 46.8% | | Adjusted EBITDA | $171.4 | $173.9 | $149.7 | 14.5% | 16.2% | | | 9 Months 2025 As Reported | 9 Months 2025 Currency Neutral | 9 Months 2024 | 9 Months % Change As Reported | 9 Months % Change Currency Neutral | | Adjusted diluted net earnings per common share | $2.47 | $2.51 | $2.09 | 18.2% | 20.1% | | Adjusted EBITDA | $452.4 | $456.1 | $425.1 | 6.4% | 7.3% | - The impact of currency for Q3 2025 was a **negative $0.03** on Adjusted diluted net earnings per common share and **negative $2.5 million** on Adjusted EBITDA[47](index=47&type=chunk) - For the nine months, the currency impact was **negative $0.04** on Adjusted diluted net earnings per common share and **negative $3.7 million** on Adjusted EBITDA[47](index=47&type=chunk) [Reconciliation of Gross Profit, SG&A, and Other Items, Net](index=15&type=section&id=Reconciliation%20of%20Gross%20Profit%2C%20SG%26A%2C%20and%20Other%20Items%2C%20Net) This section provides detailed reconciliations of reported to adjusted figures for Gross Profit, SG&A, and Other items, net, highlighting the specific impacts of restructuring, network transition costs, acquisition and integration costs, and production credits on these financial metrics across quarters Gross Profit Reconciliation - Q1-Q3 FY25 vs FY24 | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9 Months 2025 ($M) | 9 Months 2024 ($M) | | :-------------------------------- | :----------- | :----------- | :----------------- | :----------------- | | Reported Gross profit | 399.7 | 277.2 | 928.3 | 797.5 | | Adjustments (net) | 0.6 | 13.4 | (43.1) | 3.1 | | Adjusted Gross profit | 400.3 | 290.8 | 888.4 | 842.3 | | Reported Gross margin | 55.1% | 39.5% | 43.8% | 38.3% | | Adjusted Gross margin | 44.8% | 41.5% | 41.9% | 40.5% | SG&A Reconciliation - Q1-Q3 FY25 vs FY24 | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9 Months 2025 ($M) | 9 Months 2024 ($M) | | :-------------------------------- | :----------- | :----------- | :----------------- | :----------------- | | Reported SG&A | 128.3 | 129.6 | 395.6 | 380.2 | | Adjustments (net) | 4.7 | 11.2 | 28.3 | 30.1 | | SG&A Adjusted - subtotal | 123.6 | 118.4 | 367.3 | 350.1 | | Reported SG&A % of Net sales | 17.7% | 18.5% | 18.7% | 18.3% | | SG&A Adjusted % of Net sales | 17.0% | 16.9% | 17.3% | 16.8% | - The Q3 2025 Gross Profit adjustments include **$2.9 million for restructuring and related costs**, **$0.9 million for network transition costs**, and a **negative $78.5 million for FY23 & FY24 production credits**[56](index=56&type=chunk) [EBITDA and Adjusted EBITDA Reconciliation](index=17&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) The reconciliation of EBITDA to Adjusted EBITDA demonstrates the impact of various non-GAAP adjustments, including restructuring costs, production credits, and share-based payments, on the company's core operational profitability, with LTM Adjusted EBITDA reaching $639.7 million EBITDA and Adjusted EBITDA Reconciliation - Q3 and LTM Ended June 30, 2025 | Metric | Q3 2025 ($M) | LTM 6/30/25 ($M) | Q3 2024 ($M) | | :-------------------------------- | :----------- | :--------------- | :----------- | | Net earnings/(loss) | 153.5 | 251.7 | (43.8) | | EBITDA | 235.1 | 573.1 | 12.9 | | Adjustments (net) | (60.7) | 66.6 | 136.8 | | Adjusted EBITDA | 171.4 | 639.7 | 149.7 | - Key adjustments for Q3 2025 include **$8.0 million for restructuring**, **$0.9 million for network transition costs**, a **negative $78.5 million for FY23 & FY24 production credits**, and **$6.3 million for share-based payments**[60](index=60&type=chunk) - The LTM Adjusted EBITDA of **$639.7 million** reflects the cumulative impact of these adjustments over the past year[60](index=60&type=chunk) [Free Cash Flow and Net Debt Reconciliation](index=17&type=section&id=Free%20Cash%20Flow%20and%20Net%20Debt%20Reconciliation) Free cash flow for the nine months ended June 30, 2025, was $16.5 million, a significant decrease from the prior year, while net debt increased to $3,190.3 million as of June 30, 2025, reflecting changes in total debt and cash balances Free Cash Flow - Nine Months Ended June 30 | Metric | 2025 ($M) | 2024 ($M) | | :-------------------------------- | :-------- | :-------- | | Net cash from operating activities | 85.6 | 260.7 | | Capital expenditures | (69.1) | (70.5) | | Proceeds from sale of assets | — | 4.9 | | Free cash flow | 16.5 | 195.1 | Net Debt - June 30, 2025 vs. September 30, 2024 | Metric | 6/30/2025 ($M) | 9/30/2024 ($M) | | :-------------------------------- | :------------- | :------------- | | Total debt per the balance sheet | 3,361.4 | 3,207.7 | | Cash and cash equivalents | 171.1 | 216.9 | | Net debt | 3,190.3 | 2,990.8 | - The substantial decrease in free cash flow is primarily due to lower net cash from operating activities[61](index=61&type=chunk) [Fiscal Year 2025 Outlook Reconciliation](index=18&type=section&id=Fiscal%20Year%202025%20Outlook%20Reconciliation) The fiscal 2025 outlook reconciliation provides a detailed breakdown of GAAP to Adjusted earnings and Adjusted EBITDA, illustrating the expected impact of various adjustments, including restructuring costs, production credits, and acquisition costs, on the full-year projections Fiscal 2025 Outlook Reconciliation - Adjusted Earnings and EPS | Metric | Fiscal Q4 2025 Outlook (Adjusted Net Earnings $M) | Fiscal Q4 2025 Outlook (Adjusted EPS) | Fiscal Year 2025 Outlook (Adjusted Net Earnings $M) | Fiscal Year 2025 Outlook (Adjusted EPS) | | :--------------------------------------- | :------------------------------------------ | :---------------------------- | :------------------------------------------ | :-------------------------- | | Fiscal 2025 - GAAP Outlook | $55 to $76 | $0.76 to $1.05 | $258 to $279 | $3.59 to $3.86 | | Impacts (net) | $21 to $7 | $0.29 to $0.10 | $(3) to $(15) | $(0.04) to $(0.21) | | Fiscal 2025 - Adjusted Outlook | $76 to $83 | $1.05 to $1.15 | $255 to $264 | $3.55 to $3.65 | Fiscal 2025 Outlook Reconciliation - Adjusted EBITDA | Metric | Fiscal Year 2025 Outlook ($M) | | :--------------------------------------- | :---------------------------- | | Net earnings | $258 to $279 | | EBITDA | $588 to $619 | | Adjustments (net) | $42 to $21 | | Adjusted EBITDA | $630 to $640 | - For the full fiscal year 2025, the outlook for Adjusted EBITDA includes an estimated impact of **negative $75 to $80 million from FY23 & FY24 production credits** and **positive impacts from restructuring ($57 to $52 million)** and **share-based payments ($28 to $23 million)**[63](index=63&type=chunk)

Core Insights - Energizer Holdings, Inc. reported strong financial performance for the third fiscal quarter ended June 30, 2025, exceeding expectations in net sales, adjusted gross margin, and adjusted earnings per share [1][2] - The company has improved its outlook for full-year net sales, adjusted EBITDA, and adjusted earnings per share, projecting a growth of 7% to 10% in adjusted earnings per share for fiscal year 2025 [1][2] Financial Performance - Net sales for the quarter reached $725.3 million, a 3.4% increase from $701.4 million in the prior year [3][4] - Organic net sales growth was modest at 0.1%, primarily driven by the acquisition of Advanced Power Solutions NV, which contributed $20.8 million to net sales [4][5] - Gross margin percentage improved significantly to 55.1% from 39.5% in the prior year, aided by $112.4 million in production credits related to U.S. battery production [5][8] Earnings and Adjusted Metrics - Reported earnings per share (EPS) was $2.13, compared to a loss of $0.61 in the prior year, while adjusted EPS increased by 43% year-over-year to $1.13 [11][12] - Adjusted EBITDA for the quarter was $171.4 million, up from $149.7 million in the previous year [11] Cost Management and Expenses - Selling, General and Administrative (SG&A) expenses were 17.0% of net sales, totaling $123.6 million, slightly up from 16.9% in the prior year [9] - Advertising and Promotion (A&P) expenses increased to 6.0% of net sales, driven by investments in the launch of the Podium Series [10] Future Outlook - The company has raised its fiscal 2025 guidance for adjusted earnings per share to a range of $3.55 to $3.65, with adjusted EBITDA expected between $630 million and $640 million [15][16] - For the fourth quarter, reported net sales growth is anticipated to be between 2% and 4%, with organic net sales expected to be flat to down 2% [16]

Core Viewpoint - Energizer Holdings, Inc. is set to report its Third Quarter Fiscal Year 2025 results on August 4, 2025, before market opening, followed by an investor conference call [1] Company Overview - Energizer Holdings, headquartered in St. Louis, is a leading manufacturer and distributor of primary batteries, portable lights, and auto care products [3] - The company’s portfolio includes well-known brands such as Energizer, Armor All, Eveready, Rayovac, STP, and Varta, among others [3] - Energizer aims to be a leader in its categories by better serving consumers and customers [3]

Company Overview - Energizer Holdings, Inc. (NYSE: ENR) has seen its shares decline by over 45% since December 2024 due to a weak consumer environment and tariffs impacting its FY25 outlook [2]. Financial Performance - The company is currently facing significant debt, with a net leverage ratio of 4.9, indicating a high level of indebtedness relative to its earnings [2]. Investment Strategy - The Insiders Forum focuses on small and mid-cap stocks that insiders are purchasing, aiming to outperform the Russell 2000 benchmark over time [2].

Company Overview - Energizer Holdings (ENR) shares have increased by approximately 2.6% over the past month, underperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the catalysts affecting the stock [1] Earnings Estimates - Estimates for Energizer have trended downward over the past month, with the consensus estimate decreasing by 27.94% [2] VGM Scores - Energizer has a Growth Score of D, a Momentum Score of C, and a Value Score of A, placing it in the top 20% for the value investment strategy [3] - The overall aggregate VGM Score for Energizer is C, which is relevant for investors not focused on a single strategy [3] Outlook - The downward trend in estimates indicates a negative outlook for Energizer, reflected in its Zacks Rank of 4 (Sell) [4] - A below-average return is expected from the stock in the upcoming months [4] Industry Comparison - Energizer is part of the Zacks Consumer Products - Staples industry, where Procter & Gamble (PG) has seen a 4.2% increase in the past month [5] - Procter & Gamble reported revenues of $19.78 billion for the last quarter, showing a year-over-year decline of 2.1% [5] - P&G's expected earnings for the current quarter are $1.42 per share, reflecting a year-over-year increase of 1.4% [6] - P&G also has a Zacks Rank of 4 (Sell) and a VGM Score of D [6]

Core Insights - Energizer Holdings, Inc. reported second-quarter fiscal 2025 results with both net sales and earnings falling short of the Zacks Consensus Estimate, showing a year-over-year decline in both metrics [1][3][4] Financial Performance - Adjusted earnings were 67 cents per share, missing the estimate of 68 cents, and decreased by 6.9% from the previous year [4] - Net sales totaled $662.9 million, below the estimate of $669 million, and slightly decreased by 0.1% year-over-year, while organic net sales increased by 1.4% [4][5] - The battery segment saw a modest growth of 1.5% year-over-year, reaching $488 million, while the Auto Care segment experienced a decline of 4.1% to $174.9 million [6] Margin and Cost Analysis - Adjusted gross profit was $270.4 million, up 0.6% year-over-year, with an adjusted gross margin of 40.8%, an increase of 30 basis points [7] - Adjusted SG&A expenses rose by 9.3% year-over-year to $124.5 million, primarily due to investments in digital transformation and growth initiatives [8] - Adjusted EBITDA was $140.3 million, down 1.5% year-over-year, with an adjusted EBITDA margin of 21.2% [10] Financial Health - As of March 31, 2024, cash and cash equivalents stood at $139.3 million, with long-term debt of $3.15 billion and shareholders' equity of $133.9 million [11] - Operating cash flow for the fiscal second quarter was $64.2 million, and free cash flow was $8.6 million [11] Future Outlook - The company lowered its full-year guidance due to ongoing macroeconomic challenges, now expecting reported and organic net sales to range from flat to up 2% [3][13] - Adjusted EBITDA is projected to be between $610 million and $630 million, and adjusted earnings per share are expected to be in the range of $3.30 to $3.50 [14] - For the third quarter, reported and organic net sales are anticipated to be flat to down 2%, with adjusted EPS projected between 55 cents and 65 cents [15]

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, detailing financial performance and position for the periods ended March 31, 2025 [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show increased net sales and earnings for the six months ended March 31, 2025, despite a significant decrease in operating cash flow Consolidated Statement of Earnings Highlights (Six Months Ended March 31) | Metric | 2025 (in millions) | 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,394.6 | $1,379.9 | +1.1% | | Gross Profit | $528.6 | $520.3 | +1.6% | | Earnings Before Income Taxes | $66.5 | $51.8 | +28.4% | | Net Earnings | $50.6 | $34.3 | +47.5% | | Diluted EPS | $0.69 | $0.47 | +46.8% | Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in millions) | September 30, 2024 (in millions) | | :--- | :--- | :--- | | Total Current Assets | $1,394.8 | $1,478.9 | | Total Assets | $4,211.9 | $4,342.4 | | Total Current Liabilities | $749.5 | $819.8 | | Total Liabilities | $4,078.0 | $4,206.6 | | Total Shareholders' Equity | $133.9 | $135.8 | Consolidated Statement of Cash Flows Highlights (Six Months Ended March 31) | Metric | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $64.2 | $214.9 | | Net Cash used by Investing Activities | $(55.7) | $(64.6) | | Net Cash used by Financing Activities | $(81.7) | $(193.9) | | Net Decrease in Cash | $(77.6) | $(65.2) | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) These notes detail business segments, revenue recognition, strategic acquisitions, ongoing restructuring efforts, debt refinancing, and significant legal proceedings - The company operates in two main product categories: **Batteries & Lights** (Energizer, Rayovac brands) and **Auto Care** (Armor All, Nu Finish brands)[17](index=17&type=chunk)[18](index=18&type=chunk) Net Sales by Product (Six Months Ended March 31) | Product | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Batteries | $1,077.0 | $1,051.5 | | Auto Care | $274.2 | $281.1 | | Lights | $43.4 | $47.3 | | **Total** | **$1,394.6** | **$1,379.9** | - Acquired Centralsul in Brazil to expand Auto Care presence and battery manufacturing assets in Belgium to establish a European production location; a subsequent acquisition of Advanced Power Solutions NV was completed on May 2, 2025[31](index=31&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - The 'Project Momentum' restructuring program is expected to incur total pre-tax cash costs of **$180 million to $185 million** and capital expenditures of **$80 million to $90 million** by the end of fiscal 2025[38](index=38&type=chunk)[39](index=39&type=chunk) - In March 2025, the company refinanced its debt, extending the maturity of its **$760 million Term Loan** to 2032 and its **$500 million Revolving Credit Facility** to 2030, resulting in a **$5.2 million loss** on extinguishment of debt[71](index=71&type=chunk) - The company is defending against three consolidated class-action lawsuits alleging it conspired with Wal-Mart to inflate battery and lighting product prices, with no accrual recorded as a loss is not considered probable or estimable[126](index=126&type=chunk) [Management's Discussion and Analysis (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting sales growth, progress on the 'Project Momentum' program, and strategic management of liquidity and capital resources [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Results of operations show modest net sales growth driven by organic expansion, improved gross margins from restructuring savings, and varied performance across product segments Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) | Metric (in millions, except EPS) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Earnings (GAAP) | $28.3 | $32.4 | $50.6 | $34.3 | | Adjustments, after tax | $21.1 | $19.7 | $48.2 | $60.3 | | **Adjusted Net Earnings** | **$49.4** | **$52.1** | **$98.8** | **$94.6** | | Diluted EPS (GAAP) | $0.39 | $0.45 | $0.69 | $0.47 | | **Adjusted Diluted EPS** | **$0.67** | **$0.72** | **$1.35** | **$1.30** | Net Sales Change Analysis (YTD 2025 vs YTD 2024) | Component | % Change | | :--- | :--- | | Organic | +2.6% | | Change in hyperinflationary markets | -0.3% | | Impact of currency | -1.2% | | **Total Net Sales Change** | **+1.1%** | - Adjusted Gross Margin for Q2 2025 increased by **30 basis points** to **40.8%**, primarily driven by Project Momentum savings of approximately **$16 million**, offsetting increased freight costs and strategic pricing investments[167](index=167&type=chunk)[169](index=169&type=chunk) - Batteries & Lights Q2 organic sales grew **3.0%** due to new and expanded distribution, while Auto Care Q2 organic sales fell **2.6%** due to planned promotional investments and a shift in refrigerant sales timing to Q3[184](index=184&type=chunk)[185](index=185&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity and capital resources are managed through operating cash flow, debt refinancing, dividend payments, and share repurchase authorizations, with a focus on strategic investments and debt reduction - Operating cash flow decreased by **$150.7 million** year-over-year for the six months ended March 31, 2025, primarily due to a working capital change of approximately **$134 million**, driven by an **$85 million increase** in inventory[201](index=201&type=chunk) - In March 2025, the company extended the maturity of its **$760 million Term Loan** to 2032 and its **$500 million Revolving Facility** to 2030, with **$492.4 million** remaining available under the Revolving Facility as of March 31, 2025[198](index=198&type=chunk)[200](index=200&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.30 per share**, and a share repurchase authorization for **7.5 million shares** is active, with no shares repurchased in Q2 2025[206](index=206&type=chunk)[207](index=207&type=chunk)[240](index=240&type=chunk) - Anticipated capital expenditures for fiscal 2025 are **$80 million to $90 million**, including **$25 million to $35 million** for Project Momentum initiatives[202](index=202&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from currency fluctuations, commodity prices, and interest rates through hedging strategies, with operations in hyperinflationary economies noted - The company hedges cash flow uncertainty for inventory purchases in foreign currencies, with **64 open contracts** at March 31, 2025, having a notional value of approximately **$187 million**[97](index=97&type=chunk)[219](index=219&type=chunk) - To manage commodity risk, the company hedges future zinc purchases, with **16 open contracts** as of March 31, 2025, having a notional value of approximately **$29 million**[98](index=98&type=chunk)[223](index=223&type=chunk) - An interest rate swap is used to fix the benchmark rate (SOFR) at **1.042%** on **$600 million** of variable-rate debt, mitigating interest rate exposure[96](index=96&type=chunk)[225](index=225&type=chunk) - The economies of Egypt (effective Oct 1, 2024) and Argentina (effective July 1, 2018) are treated as highly inflationary, reflecting remeasurement gains and losses in current earnings[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[231](index=231&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2025, that materially affected or are likely to materially affect these controls[233](index=233&type=chunk) [PART II — OTHER INFORMATION](index=44&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending against consolidated class action lawsuits alleging price-fixing, believing it has substantial defenses and has not accrued for a probable loss - The company is defending against class action lawsuits alleging it conspired with Wal-Mart to inflate prices in violation of antitrust and consumer protection laws[126](index=126&type=chunk)[234](index=234&type=chunk) - Management believes that its liability from pending legal proceedings is not reasonably likely to be material to its financial position, results, or cash flows[234](index=234&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section emphasizes international operational risks, including tariffs, currency fluctuations, and geopolitical instability, given that approximately **40%** of fiscal 2024 sales originated from foreign countries - Approximately **40%** of the company's sales in fiscal year 2024 originated from foreign countries, exposing it to significant international risks[236](index=236&type=chunk) - Key international risks include unfavorable macroeconomic conditions, political instability, tariffs, trade restrictions, and currency fluctuations[236](index=236&type=chunk)[243](index=243&type=chunk) - Significant uncertainty exists regarding future trade policies and tariffs between the U.S. and other countries, which could materially impact the business[237](index=237&type=chunk) [Share Repurchases](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any equity securities during Q2 fiscal 2025, with an authorization for **7.5 million shares** remaining active Issuer Purchases of Equity Securities (Q2 FY2025) | Period | Total Number of Shares Purchased | | :--- | :--- | | January 2025 | 0 | | February 2025 | 0 | | March 2025 | 0 | | **Total** | **0** | - As of March 31, 2025, the maximum number of shares that may yet be purchased under the current plan is **7,500,000**[240](index=240&type=chunk)

Financial Data and Key Metrics Changes - The company reported a flat net sales for the second quarter, while organic revenue increased by 1.4%, marking the fourth consecutive quarter of organic growth [12][7] - Adjusted earnings per share (EPS) reached $0.67, at the upper end of the guidance range [7][14] - Adjusted gross margin increased by 30 basis points to 40.8%, driven by project momentum savings [13] - Free cash flow declined by $44.1 million year over year, primarily due to investments in inventory and capital expenditures [14][15] Business Line Data and Key Metrics Changes - The battery business experienced a strong performance with 3% organic growth, benefiting from distribution wins in the U.S. and strong international results [9][12] - Auto care saw strong growth in appearance and air freshener segments, with the appearance business delivering 5.5% organic growth, driven by the new Podium Series product line [10][12] - Overall, the auto business declined approximately 2.5% organically, attributed to a shift in refrigerant shipment timing [10][12] Market Data and Key Metrics Changes - The battery category is expected to deliver low single-digit growth over the long term, although weakened consumer confidence may pressure volumes in the short term [23] - In auto care, consumer caution is anticipated to have mixed impacts, with some consumers shifting to DIY categories while others prioritize spending in less discretionary categories [23] Company Strategy and Development Direction - The company is focused on distribution, innovation, digital commerce, pricing and revenue management, and market expansion to drive growth [8] - Strategic acquisitions have been made to enhance manufacturing capabilities and improve supply chain resilience [20] - The company aims to reduce exposure to tariffs through sourcing shifts and pricing adjustments [25][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and changing consumer sentiment, emphasizing the need to stay close to consumers [18][23] - The outlook for the remainder of the year has been tempered due to anticipated consumer pullback and inflationary pressures [24][30] - The company expects reported and organic net sales for the full year to be flat to up 2%, with adjusted EBITDA and EPS reflecting positive growth [30][31] Other Important Information - The company refinanced its $500 million revolving credit facility, extending maturities and improving debt portfolio flexibility [14] - The recent acquisition of APS in Europe is expected to enhance scale and manufacturing capabilities in key markets [69] Q&A Session Summary Question: Follow-up on tariff commentary and mitigation impacts - Management clarified that they have mitigated the impact of tariffs for fiscal year 2025 and are working on strategies to address future exposures [36][39] Question: Evaluation of devices using batteries and impact on forecasts - Management acknowledged that higher prices for devices could lead to consumer pullback, impacting battery replenishment cycles [50][53] Question: Retailer destocking and its impact - Management noted a slight uptick in retailer inventory due to softer sales, which is expected to normalize over time [65][66] Question: Details on the APS acquisition - The acquisition is expected to enhance the company's manufacturing capabilities and will involve transitioning from Panasonic to Energizer branding [69] Question: Long-term leverage target - The company aims to reduce leverage to below four times, with debt paydown being a top priority [108]

Financial Data and Key Metrics Changes - The company reported a flat net sales for the second quarter, while organic revenue increased by 1.4%, marking the fourth consecutive quarter of organic growth [12][7] - Adjusted earnings per share (EPS) reached $0.67, at the upper end of the guidance range [7][14] - Adjusted gross margin increased by 30 basis points to 40.8%, driven by project momentum savings [13] - Free cash flow declined by $44.1 million year over year, primarily due to investments in inventory and capital expenditures [14][15] Business Line Data and Key Metrics Changes - The battery business experienced a strong performance with 3% organic growth, benefiting from distribution wins in the U.S. and strong international results [9][12] - Auto care saw strong growth in appearance and air freshener segments, with the appearance business delivering 5.5% organic growth, driven by the new Podium Series product line [10][12] - Overall, the auto business declined by approximately 2.5% organically, attributed to a shift in refrigerant shipment timing [10][12] Market Data and Key Metrics Changes - The battery category is expected to deliver low single-digit growth over the long term, although weakened consumer confidence may pressure volumes in the short term [23] - In auto care, consumer caution is anticipated to have mixed impacts, with some consumers shifting to DIY categories while others prioritize spending on less discretionary items [23] Company Strategy and Development Direction - The company is focused on distribution, innovation, digital commerce, pricing and revenue management, and market expansion to drive growth [8] - Strategic acquisitions have been made to enhance manufacturing capabilities and improve supply chain resilience [20] - The company aims to reduce exposure to tariffs through sourcing shifts and pricing adjustments, with a clear path to mitigate impacts over the next twelve months [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and changing consumer sentiment, emphasizing the need to stay close to consumers [18][23] - The outlook for the remainder of the year has been tempered due to recent volatility and consumer caution [24][30] - The company expects reported and organic net sales for the full year to be flat to up 2%, with adjusted EBITDA and EPS reflecting positive growth at the midpoint [30][31] Other Important Information - The company has refinanced its $500 million revolving credit facility, extending maturities and improving the weighted average maturity of its total debt portfolio [14] - The recent acquisition of APS in Europe is expected to enhance scale and manufacturing capabilities, transitioning from Panasonic to Energizer brands over the next eight months [69] Q&A Session Summary Question: Follow-up on tariff mitigation impacts - Management clarified that they have mitigated the impact of tariffs for fiscal year 2025 and are working on strategies to address future exposures [36][39] Question: Evaluation of devices using batteries and pricing impacts - Management acknowledged that higher prices for devices could lead to consumer pullback, impacting battery replenishment cycles [50][53] Question: Retailer destocking and its impact - Management noted a slight uptick in retailer inventory due to softer sales, but does not expect it to be significant [65][66] Question: Insights on the APS acquisition - The acquisition is expected to enhance the company's European business and manufacturing capabilities, with a transition to Energizer branding planned [68][69] Question: Long-term leverage target - The company aims to reduce leverage to below four times, with debt paydown as a top priority [108]