Core Insights - Energizer Holdings, Inc. reported fourth-quarter fiscal 2025 results with net sales exceeding estimates while earnings fell short, indicating a mixed performance [1][10] - The company is entering a transition period in fiscal 2026, facing temporary tariff costs and has extended Project Momentum to protect margins [2] 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 [3] - Net sales reached $832.8 million, surpassing the Zacks Consensus Estimate of $831 million, marking a 3.4% increase from the previous year [4] - Organic net sales declined by 2.2%, primarily due to a 2.9% decrease in volumes from softer consumer demand in North America [5][10] Segment Performance - Batteries & Lights segment net sales increased by 3.9% to $677.2 million, while segment profit decreased by 15.4% to $151.8 million [6] - Auto Care segment net sales rose by 1% to $155.6 million, with segment profit increasing by 29% to $25.8 million [6] 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% [7] - Adjusted SG&A expenses increased by 4.2% year over year to $128.2 million, driven by higher costs in the APS business and digital transformation investments [9] Future Outlook - For fiscal 2026, the company expects organic net sales to be flat to slightly higher, with modest gross margin pressure anticipated [17] - Adjusted earnings per share are projected to range from $3.30 to $3.60, while adjusted EBITDA is expected between $580 million and $610 million [18] - The first quarter of fiscal 2026 is expected to reflect a high single-digit percentage decline in organic net sales, with adjusted EPS anticipated in the range of 20 to 30 cents [19]

Financial Data and Key Metrics Changes - For fiscal 2025, net sales grew by 2.3% to nearly $3 billion, while adjusted earnings per share increased by 6% to $3.52, supported by organic growth and disciplined cost management [6][7][8] - The company returned $177 million to shareholders through dividends and share repurchases, reducing outstanding shares by approximately 5% [6][7] Business Line Data and Key Metrics Changes - Significant growth was noted in e-commerce, with a 35% increase in Q4 and a 25% increase for the year, with expectations of 15% growth in 2026 [35][36] - The auto care segment also experienced meaningful innovation, contributing to overall sales growth [5][6] Market Data and Key Metrics Changes - The macro environment has been challenging, with tariffs increasing costs and consumer demand softening late in the year [6][7] - The battery category is projected to decline by 2% for the year, with expectations of stabilization in the latter half of the fiscal year [18][25] Company Strategy and Development Direction - The company has extended Project Momentum into a fourth year, focusing on operational efficiency and the integration of Advanced Power Solutions [5][6] - The innovation pipeline is robust, aimed at driving category growth and strengthening leadership in batteries and auto care [5][6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a transitional first quarter for fiscal 2026, reflecting challenging sales comparisons and moderating consumer sentiment [7][18] - The company expects double-digit adjusted earnings per share growth over the final three quarters of fiscal 2026, driven by network realignment and Project Momentum savings [7][18] Other Important Information - The company achieved over $200 million in savings from Project Momentum to date, with a focus on restoring gross margins and enhancing free cash flow [11][12] - Management indicated that consumer behavior is changing, with a tendency to reduce household inventory and skip purchase cycles, but expects a return to historical growth patterns [46] Q&A Session Summary Question: Insights on the ramp needed to hit full-year expectations following a challenging first quarter - Management acknowledged the need for a ramp and highlighted the successful execution of Project Momentum, which has delivered significant savings and improved margins [11][12] Question: Perspective on consumer slowdown and cost environment changes - Management noted a softening consumer sentiment and projected a decline in the battery category, but remains bullish on long-term growth [24][25] Question: Channel dynamics and consumer behavior in response to the current environment - Management observed that consumers are seeking value and shifting channels, with e-commerce being a significant growth area [35][36] Question: Incremental benefits from optimizing U.S. manufacturing - Management anticipates an additional $15 million-$20 million in benefits from domestic production credits starting in fiscal 2026 [40][41] Question: Expectations for consumer behavior and category performance - Management expects consumers to revert to historical purchasing behaviors, stabilizing the category growth in the future [46] Question: Retail partners' inventory management and its impact - Management indicated tighter inventory management from retail partners, affecting replenishment dynamics as they head into the holiday season [53][54]

Financial Data and Key Metrics Changes - For fiscal 2025, net sales grew by 2.3% to nearly $3 billion, while adjusted earnings per share increased by 6% to $3.52, supported by organic growth and disciplined cost management [6][7][8] - The company returned $177 million to shareholders through dividends and share repurchases, reducing outstanding shares by approximately 5% [6][7] Business Line Data and Key Metrics Changes - Significant growth was noted in e-commerce, with a 35% increase in Q4 and a 25% growth for the year, with expectations of 15% growth in 2026 [35][36] - The auto care segment also experienced meaningful innovation, contributing to overall sales growth [5] Market Data and Key Metrics Changes - The macro environment has been challenging, with tariffs increasing costs and consumer demand softening late in the year [6][7] - The battery category is projected to decline by 2% for the year, with expectations of stabilization in the latter half of the fiscal year [18][25] Company Strategy and Development Direction - The company has extended Project Momentum into a fourth year, focusing on operational efficiency and the integration of Advanced Power Solutions [5][6] - A robust innovation pipeline is in place to drive category growth and strengthen leadership across batteries and auto care [5][6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a transitional first quarter for fiscal 2026, reflecting challenging sales comparisons and moderating consumer sentiment [7][18] - Despite current challenges, management expects double-digit adjusted earnings per share growth over the final three quarters of the year [7][18] Other Important Information - The company has achieved over $200 million in savings through Project Momentum, enhancing free cash flow and gross margins [6][12] - Management is focused on optimizing U.S. manufacturing to maximize future benefits from production credits, anticipating an incremental benefit of $15 million to $20 million annually starting in fiscal 2026 [40][41] Q&A Session Summary Question: Can you speak to the degree of confidence or visibility on the implied ramp following a challenging first quarter? - Management acknowledged the need for a strong Q4 but emphasized the achievements in fiscal 2025, highlighting the successful execution of Project Momentum and the expected ramp in performance as the year progresses [11][12][14] Question: What has changed in the consumer and cost environment since the last update? - Management noted a softening consumer sentiment and projected a decline in the battery category for the first quarter, with expectations of stabilization later in the year [24][25][27] Question: How are consumers responding in terms of channel dynamics? - Management observed that consumers are seeking value and shifting channels, with e-commerce being a significant area of growth, showing a 35% increase in Q4 [35][36] Question: What is the expectation for consumer behavior regarding pantry inventory? - Management indicated that consumers are likely to drain household inventory and may skip purchase cycles, but they expect a return to historical growth patterns in the battery category [46] Question: What is the plan for debt reduction and cash flow normalization? - Management prioritized paying down debt, aiming to reduce $150 million to $200 million, while also expecting to normalize cash flow in fiscal 2026 [47][48]

Financial Data and Key Metrics Changes - For fiscal 2025, net sales grew by 2.3% to nearly $3 billion, while adjusted earnings per share increased by 6% to $3.52, supported by organic growth and disciplined cost management [5][6][7] - The company returned $177 million to shareholders through dividends and share repurchases, reducing outstanding shares by approximately 5% [5][6] Business Line Data and Key Metrics Changes - Significant growth was observed in e-commerce, with a 35% increase in Q4 and a 25% growth for the year [35] - The company’s innovation pipeline is robust, particularly in auto care, which is expected to drive category growth [5] Market Data and Key Metrics Changes - The macro environment has been challenging, with tariffs increasing costs and consumer demand softening late in the year [5][6] - The battery category is projected to decline by approximately 2% for the year, with expectations of stabilization in the category as the year progresses [26][28] Company Strategy and Development Direction - The company has extended Project Momentum into a fourth year, focusing on operational efficiency and the integration of Advanced Power Solutions [5] - The strategy includes realigning the manufacturing footprint to minimize tariff exposure and executing pricing actions to protect margins [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a transitional first quarter for fiscal 2026, reflecting challenging sales comparisons and moderating consumer sentiment [6][7] - The company expects double-digit adjusted earnings per share growth over the final three quarters of fiscal 2026, driven by network realignment and Project Momentum savings [7][18] Other Important Information - The company has achieved over $200 million in savings from Project Momentum to date, with a focus on restoring gross margins and enhancing free cash flow [11][12] - Management indicated that consumer behavior is changing, with consumers likely to reduce pantry inventory and skip purchase cycles temporarily [46] Q&A Session Summary Question: Confidence in ramping up after a challenging first quarter - Management acknowledged the need for a ramp and highlighted the successful execution of Project Momentum, which has delivered significant savings and improved margins [11][12] Question: Changes in consumer behavior and cost environment - Management noted a softening consumer sentiment and projected a decline in the battery category for the first quarter, with expectations of stabilization later [25][26] Question: Channel dynamics and consumer shopping patterns - Management reported strong growth in e-commerce, with a focus on winning in this channel as consumers seek value [35] Question: Incremental benefits from optimizing U.S. manufacturing - Management anticipates an additional $15 million-$20 million in benefits from domestic production credits starting in fiscal 2026 [41][42] Question: Expectations for consumer behavior and category decline - Management expects temporary changes in consumer behavior, with a return to historical growth patterns as the market stabilizes [46] Question: Retail partners' inventory management - Management observed tighter inventory management from retail partners, impacting replenishment dynamics [53]

Core Insights - Energizer Holdings reported revenue of $832.8 million for the quarter ended September 2025, marking a year-over-year increase of 3.4% [1] - The company's EPS for the same period was $1.05, down from $1.22 a year ago, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $831.03 million by 0.21%, while the EPS fell short of the consensus estimate of $1.12 by 6.25% [1] Revenue Breakdown - Net Sales from Batteries & Lights reached $677.2 million, slightly above the average estimate of $676.43 million, reflecting a year-over-year increase of 3.9% [4] - Net Sales from Auto Care amounted to $155.6 million, surpassing the estimated $154.58 million, with a year-over-year change of 1% [4] Segment Profit Analysis - Segment Profit for Auto Care was reported at $25.8 million, exceeding the average estimate of $21.89 million from two analysts [4] - Segment Profit for Batteries & Lights was $151.8 million, which fell short of the average estimate of $189.59 million from two analysts [4] Stock Performance - Shares of Energizer have returned -1.8% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Fiscal 2025 & Q4 Earnings Fiscal 2026 Outlook November 18, 2025 + Forward-Looking Statements •Free Cash Flow. Free Cash Flow is defined as net cash provided by operating activities reduced by capital expenditures, net of the proceeds from asset sales. 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 limitatio ...

Core Viewpoint - Energizer Holdings, Inc. reported a decline in adjusted earnings per share for the fourth quarter, missing analyst expectations, despite a slight increase in quarterly sales [1][5]. Financial Performance - The company reported fourth-quarter adjusted earnings per share of $1.05, below the consensus estimate of $1.12 [1]. - Quarterly sales reached $832.80 million, reflecting a year-over-year increase of 3.4%, surpassing the expected $827.962 million [1]. - Organic net sales decreased by 2.2% compared to the previous year [2]. - Volumes fell by 2.9% due to softened consumer demand in North America, although e-commerce and international markets showed growth in the Batteries & Lights segment [3]. - Adjusted gross margin was 38.5%, down 370 basis points from the prior year, attributed to higher input and logistics costs [3][4]. Cost Management and Initiatives - Project Momentum has generated over $200 million in savings over three years, with the program being extended into a fourth year to target tariff mitigation and operational efficiency [2]. - The company faced production inefficiencies related to network rebalancing and the lower-margin APS business, contributing to the decline in gross margin [4]. Future Outlook - For the first quarter of fiscal 2026, Energizer expects adjusted earnings per share between 20 cents and 30 cents, significantly lower than the analyst estimate of 70 cents [5]. - The company anticipates a GAAP loss of 8 to 9 cents per share for the first quarter, contrasting with the projected profit of 70 cents [5]. - The outlook for 2026 adjusted EPS is estimated to be between $3.30 and $3.60, slightly below the analyst estimate of $3.59 [6]. - Following the earnings report, ENR shares fell by 19.25% to $19.26 in premarket trading [6].

Core Insights - Energizer Holdings reported quarterly earnings of $1.05 per share, missing the Zacks Consensus Estimate of $1.12 per share, and down from $1.22 per share a year ago, representing an earnings surprise of -6.25% [1] - The company posted revenues of $832.8 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.21%, and up from $805.7 million year-over-year [2] - Energizer shares have declined approximately 31.6% year-to-date, contrasting with the S&P 500's gain of 13.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $762.57 million, and for the current fiscal year, it is $3.77 on revenues of $3.04 billion [7] - The estimate revisions trend for Energizer was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Energizer belongs, is currently in the bottom 25% of over 250 Zacks industries, suggesting potential challenges for stock performance [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]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Olema Pharmaceuticals, Inc. (OLMA) has seen a substantial increase of 213%, trading at $26.68 - Diginex Limited (DGNX) is up 12%, currently priced at $15.25 - Gorilla Technology Group Inc. (GRRR) has risen by 11%, trading at $14.05 - Amer Sports, Inc. (AS) is up 9%, priced at $33.47 - Click Holdings Limited (CLIK) has increased by 9%, trading at $7.38 - Beamr Imaging Ltd. (BMR) is up 9%, currently at $2.14 - James Hardie Industries plc (JHX) has risen by 8%, trading at $18.22 - Arvinas, Inc. (ARVN) is up 8%, priced at $12.00 - Axalta Coating Systems Ltd. (AXTA) has increased by 7%, trading at $30.28 - Genprex, Inc. (GNPX) is up 6%, currently at $4.31 [3] Premarket Losers - LifeMD, Inc. (LFMD) has decreased by 22%, trading at $3.65 - Alpha Technology Group Limited (ATGL) is down 21%, currently priced at $17.00 - Intellinetics, Inc. (INLX) has fallen by 19%, trading at $7.25 - Energizer Holdings, Inc. (ENR) is down 16%, priced at $20.00 - Invivyd, Inc. (IVVD) has decreased by 14%, currently at $2.42 - BellRing Brands, Inc. (BRBR) is down 12%, trading at $22.30 - Sadot Group Inc. (SDOT) has fallen by 9%, currently priced at $3.99 - CEVA, Inc. (CEVA) is down 8%, trading at $21.60 - Helmerich & Payne, Inc. (HP) has decreased by 7%, currently at $25.44 - Opendoor Technologies Inc. (OPEN) is down 5%, trading at $7.39 [4]

Financial Performance - Net sales for fiscal year 2025 increased by 2.3% to $2,952.7 million, with fourth quarter net sales rising 3.4% to $832.8 million[5][3] - Reported EPS for fiscal year 2025 was $3.32, with adjusted EPS increasing by 6% to $3.52[3][13] - Adjusted EBITDA for fiscal year 2025 reached $623.6 million, compared to $612.4 million in the prior year[13] - Gross margin for fiscal year 2025 was reported at 41.7%, up from 38.3% in the prior year, while adjusted gross margin was consistent at 40.9%[7][9] - Net sales for the quarter ended September 30, 2025, were $832.8 million, an increase of 3.9% compared to $805.7 million for the same period in 2024[28] - Gross profit for the twelve months ended September 30, 2025, was $1,232.7 million, up from $1,104.3 million in 2024, reflecting a significant improvement in profitability[28] - Net earnings for the quarter ended September 30, 2025, were $34.9 million, a decrease of 26.5% from $47.6 million in the same quarter of 2024[28] - Basic net earnings per share for the twelve months ended September 30, 2025, were $3.37, compared to $0.53 in 2024, indicating a strong year-over-year performance[28] - Net earnings for the year ended September 30, 2025, were $239.0 million, a significant increase from $38.1 million in 2024[35] - Total net sales for the twelve months ended September 30, 2025, reached $2,952.7 million, up from $2,887.0 million in 2024, representing a growth of approximately 2.3%[48] Expenses and Costs - SG&A expenses for fiscal year 2025 were $495.5 million, or 16.8% of net sales, compared to 16.4% in the prior year[11] - Advertising and promotion expenses for the twelve months ended September 30, 2025, were $151.7 million, up from $143.7 million in 2024, reflecting increased marketing efforts[28] - The company incurred restructuring and related costs of $20.3 million in Q1'25, contributing to a total of $68.7 million for the fiscal year[67] - Restructuring and related costs are estimated at $49 million for the full fiscal year, impacting EPS by $0.70[69] - Acquisition and integration costs for Fiscal 2026 are projected to total $8 million, affecting EPS by $0.12[69] Cash Flow and Debt - Operating cash flow for fiscal year 2025 was $147.1 million, with free cash flow at $63.2 million, representing 2.1% of net sales[19] - Cash flow from operating activities for the year was $147.1 million, a decrease from $429.6 million in 2024[35] - Free cash flow for the year was defined as net cash provided by operating activities reduced by capital expenditures, net of proceeds from asset sales[45] - Net debt as of September 30, 2025, was $3,195.5 million, an increase from $2,990.8 million on September 30, 2024[67] - Long-term debt rose to $3,407.9 million as of September 30, 2025, compared to $3,193.0 million in 2024, indicating increased leverage[33] Future Outlook - The company expects organic net sales for fiscal 2026 to be flat to slightly up, with adjusted EPS projected between $3.30 and $3.60[18] - For the first quarter of fiscal 2026, the company anticipates organic net sales to decline in the high-single digits and adjusted EPS in the range of $0.20 to $0.30[20] - The fiscal 2026 outlook anticipates continued growth in net sales and profitability, with strategic investments in new product development and market expansion[68] - Fiscal 2026 adjusted net earnings are projected to be between $231 million and $254 million, with adjusted EPS ranging from $3.30 to $3.60[69] - Adjusted EBITDA for Fiscal 2026 is expected to be between $580 million and $610 million[69] Shareholder Actions - The company repurchased 4.0 million shares of common stock during fiscal 2025 at an average price of $22.42 per share[19] - Total shareholders' equity increased to $169.9 million as of September 30, 2025, from $135.8 million in 2024, indicating a strengthening balance sheet[33] Segment Performance - Segment profit for Batteries & Lights decreased to $542.2 million in 2025 from $554.8 million in 2024, while Auto Care segment profit increased to $105.6 million from $94.1 million[48] - Organic net sales growth for Auto Care was negative 1.2% for FY '25, with total net sales of $620.0 million[63] - Segment profit for Batteries & Lights in Q4'25 was $151.8 million, a decrease of 15.4% year-over-year[63] - The company reported a total segment profit of $647.8 million for FY '25, a slight decrease of 0.2% from the prior year[63] Miscellaneous - The company completed the Advanced Power Solutions acquisition on May 2, 2025, which will transition to legacy brands by December 31, 2025[41] - The company recorded a non-cash impairment of intangible assets of $5.9 million for the quarter ended September 30, 2025, related to proprietary formulas[29] - The effect of exchange rate changes resulted in a net decrease of $0.5 million on cash, cash equivalents, and restricted cash[35] - The company experienced a loss on extinguishment/modification of debt of $6.8 million for the quarter ended September 30, 2025, due to the redemption of $300.0 million Senior Notes[30] - The loss on extinguishment of debt is projected to be $2 million for the full fiscal year, impacting EPS by $0.03[69]