Investment Rating - The report suggests a positive outlook for companies benefiting from the transition to 800V HVDC systems in AI data centers, recommending a focus on leading companies such as GE Vernova, Siemens Energy, and Hitachi [4][10]. Core Insights - The existing power distribution systems are inadequate for the energy efficiency demands of AI data centers, necessitating a shift to higher voltage architectures [6][9]. - Major technology firms are proposing new power distribution architectures, with NVIDIA planning to transition to 800V HVDC by 2027 to support data center racks exceeding 1MW [4][6]. - High-voltage architectures reduce the number of power conversion devices, improving efficiency and reliability while minimizing operational risks [2][7]. Summary by Sections Current Power Distribution Challenges - Current 54V distribution systems are reaching their limits due to increased power demands, leading to proposals for new architectures from major tech companies [6][9]. - Google's Rack 4 and Meta's High Power Rack are examples of innovative solutions aimed at enhancing power distribution efficiency [6]. Advantages of High-Voltage Architecture - High-voltage systems allow for fewer power racks, optimizing space within data centers and improving overall efficiency [2][7]. - The reduction in power conversion steps enhances reliability and decreases maintenance risks, leading to lower operational costs [2][7]. Technical Challenges - Transitioning to 800V HVDC requires overcoming significant technical hurdles, including safety, new standards, and training for personnel [3][8]. - The lack of established industry standards for high-voltage systems poses challenges for implementation and requires collaboration among stakeholders [3][8]. Future Demand and Investment Opportunities - The shift to 800V HVDC will necessitate substantial investments in electrical products and infrastructure, particularly in the aging U.S. power grid [4][9]. - Companies involved in power generation and transmission are expected to benefit from increased demand driven by the needs of AI data centers [4][10].

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]

Financial Data and Key Metrics Changes - The company reported organic sales growth of nearly 1.5% for the fourth consecutive quarter, with adjusted earnings per share of $0.67 at the upper end of the guided range [6][12] - Adjusted gross margin increased by 30 basis points to 40.8%, driven by project momentum savings of $16 million [12] - Free cash flow declined by $44.1 million year over year, primarily due to investments in inventory and capital expenditures [13][14] Business Line Data and Key Metrics Changes - The battery business experienced strong performance with 3% organic growth, benefiting from distribution wins and strong international results [8][11] - Auto care saw a 5.5% organic growth in the appearance segment, driven by the launch of the new Podium Series product line, although overall auto care declined by approximately 2.5% due to shipment timing [9][11] Market Data and Key Metrics Changes - The battery category is expected to deliver low single-digit growth over the long term, but weakened consumer confidence may pressure volumes in the short term [21] - In auto care, consumer caution is expected to have mixed impacts, with some consumers shifting to DIY categories while others prioritize spending in less discretionary categories [21] Company Strategy and Development Direction - The company is focused on distribution, innovation, digital commerce, pricing, revenue management, and market expansion to drive fiscal 2025 results [7] - Strategic acquisitions and investments in supply chain transformation are aimed at improving cost, agility, and resiliency, particularly in response to tariff impacts [17][18] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in navigating the current macroeconomic challenges, emphasizing the importance of understanding consumer sentiment and spending behavior [20][25] - The outlook for the remainder of fiscal 2025 has been tempered due to recent volatility and consumer caution, with expectations for flat to 2% growth in reported and organic net sales [26][27] 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 [13] - 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 [59] Q&A Session Summary Question: Can you run through the mitigation impacts of tariffs? - Management clarified that they have mitigated the impact of tariffs for fiscal 2025 and are working on plans to reduce exposure for fiscal 2026, aiming to offset most of the $150 million gross exposure [31][33][34] Question: What is the evaluation of devices that use batteries in light of potential price increases? - Management acknowledged that higher prices for devices could lead to consumer pullback, impacting battery replenishment cycles, but emphasized ongoing communication with OEM partners [44][45] Question: Have you seen any retailer destocking? - Management noted a slight uptick in retailer inventory due to softer point-of-sale sales, but did not consider it significant [55][56] Question: Can you provide details on the APS acquisition? - The acquisition is expected to enhance the company's European business scale and manufacturing capabilities, with a transition from Panasonic to Energizer brands planned [58][59] Question: What is the long-term leverage target? - The company aims to reduce leverage to below four times, with debt paydown being a top priority [98]

Energizer Holdings (ENR) came out with quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.47%. A quarter ago, it was expected that this battery and personal care products company would post earnings of $0.64 per share when it actually produced earnings of $0.67, delivering a surprise of 4.69%. Ove ...

Q2 Fiscal 2025 Earnings May 6, 2025 + 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 and performance of the Company. These statements generally can be identified by the use of forward-looking words or phrases such as "believ ...

Financial Performance - Net sales for the second fiscal quarter were $662.9 million, a slight decrease of 0.1% compared to $663.3 million in the prior year period, with organic growth of 1.4%[4] - Net earnings were $28.3 million, or $0.39 per share, while adjusted earnings per share were $0.67, down from $0.72 in the prior year[9] - Net sales for the quarter ended March 31, 2025, were $662.9 million, a slight decrease of 0.06% compared to $663.3 million for the same quarter in 2024[24] - Net earnings for the six months ended March 31, 2025, were $50.6 million, representing a significant increase of 47.5% compared to $34.3 million in 2024[28] - Total net sales for the current year reached $1,394.6 million, reflecting a 1.1% increase compared to the prior year[54] Margins and Profitability - Gross margin for the quarter was reported at 39.1%, with an adjusted gross margin of 40.8%, reflecting a 30 basis points improvement over the prior year[5] - Gross profit for the six months ended March 31, 2025, increased to $528.6 million, up 1.1% from $520.3 million in the prior year[24] - Segment profit for Batteries & Lights was $112.3 million for the quarter ended March 31, 2025, down 1.1% from $113.5 million in the prior year[41] - Total segment profit for the six months ended March 31, 2025, was $287.3 million, a decrease of 2.0% from $293.2 million in the same period of 2024[41] - Adjusted EBITDA for the quarter ended March 31, 2025, was $140.3 million, reflecting a decrease of 1.5% compared to $142.5 million in the prior year[51] Expenses and Costs - Selling, General and Administrative expenses (SG&A) were 18.8% of net sales, totaling $124.5 million, an increase from 17.2% or $113.9 million in the prior year[7] - Advertising and Promotion expenses decreased to 3.1% of net sales, down from 3.2% in the prior year[8] - The company incurred $8.1 million in research and development expenses for the quarter ended March 31, 2025, compared to $7.9 million in the same quarter of 2024[24] - Reported SG&A expenses for Q2'25 were $136.0 million, representing 20.5% of net sales[56] - Restructuring and related costs totaled $37.9 million for the six months ended March 31, 2025[57] Cash Flow and Debt - Free cash flow for the six months ended March 31, 2025, was $8.6 million, representing 0.6% of net sales[19] - Cash flow from operating activities for the six months ended March 31, 2025, was $64.2 million, a decrease of 70% from $214.9 million in 2024[28] - Total debt as of March 31, 2025, was $3,163.2 million, down from $3,207.7 million as of September 30, 2024[59] - The company reported a net debt of $3,023.9 million as of March 31, 2025, compared to $2,990.8 million as of September 30, 2024[59] Future Outlook - The company expects fiscal 2025 organic net sales to be flat to up 2%, with adjusted EBITDA projected between $610 million and $630 million, and adjusted earnings per share between $3.30 and $3.50[14] - The company anticipates a more cautious consumer outlook for the remainder of the year due to economic volatility and tariff uncertainties[13] - The fiscal 2025 outlook projects adjusted net earnings between $168 million and $194 million, with adjusted EPS ranging from $2.29 to $2.65[61] - The company anticipates adjusted EBITDA for fiscal 2025 to be between $492 million and $530 million[61] - Restructuring and related costs are expected to impact adjusted net earnings by approximately $40 million for fiscal 2025[61] Currency Impact - The impact of currency fluctuations reduced total net sales by $17.8 million, or 1.2%[54] - The company recorded $1.0 million and $22.0 million in currency exchange and related losses due to the December 2023 Argentina Economic Reform for the quarter and six months ended March 31, 2024, respectively[44]

Core Insights - Energizer Holdings, Inc. reported net sales of $662.9 million for the second fiscal quarter ended March 31, 2025, a slight decrease of 0.1% compared to $663.3 million in the prior year period, marking the fourth consecutive quarter of organic revenue growth of 1.4% [3][5][10] - The company achieved an adjusted gross margin of 40.8%, an improvement from 40.5% in the prior year, driven by Project Momentum initiatives [4][7][10] - Net earnings for the quarter were $28.3 million, or $0.39 per share, with adjusted earnings per share at $0.67, reflecting a decrease from $0.45 and $0.72 in the prior year, respectively [10][43] Financial Performance - Net sales for the second quarter were $662.9 million, down from $663.3 million in the same quarter last year, with organic growth of 1.4% [3][5] - Gross margin was reported at 39.1%, with an adjusted gross margin of 40.8%, up 30 basis points from the previous year's adjusted gross margin [5][7] - The company reported net earnings of $28.3 million, down from $32.4 million in the prior year, and adjusted EBITDA of $140.3 million, slightly lower than $142.5 million in the previous year [10][43] Strategic Initiatives - The company emphasized its investments in digital transformation and growth initiatives, which contributed to an increase in SG&A expenses to 18.8% of net sales, compared to 17.2% in the prior year [8][10] - Project Momentum delivered savings of approximately $16 million in the quarter, although this was partially offset by increased product costs and planned strategic pricing investments [7][10] - The company expects organic net sales for fiscal 2025 to be flat to up 2%, with adjusted EBITDA projected between $610 million and $630 million [12][14] Market Outlook - The CEO expressed a cautious outlook for the remainder of the year, anticipating a more cautious consumer environment impacting demand [2][12] - The company expects limited direct impact from tariffs due to completed sourcing shifts and pricing actions [5][12] - For the third quarter, reported and organic net sales are expected to be flat to down 2%, with adjusted earnings per share projected between $0.55 and $0.65 [14]