EnerSys ( ENS ) turned in a solid but uneven quarter for Q3 that was driven by cost cuts, better pricing, and improved product mix despite revenues barely growing and missing estimates due to weaker demandI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their invested capital over l ...

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Key Takeaways ENS posted Q3 adjusted EPS of $2.77, beating estimates, though earnings declined 11% year over year.ENS sales rose 1% to $919.1M, helped by pricing and FX gains despite a 4% drop in organic volume.ENS saw Energy Systems and Specialty growth, while Motive Power sales fell on weak demand.EnerSys (ENS) reported third-quarter fiscal 2026 (ended Dec. 31, 2025) adjusted earnings of $2.77 per share, which surpassed the Zacks Consensus Estimate of $2.73. The bottom line decreased 11% year over year.En ...

EnerSys (NYSE:ENS) Q3 2026 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsAndrea Funk - EVP and CFOBrian Drab - Partner and Co-Group Head of IndustrialsLisa Hartman - VP of Investor RelationsShawn O'Connell - President of Energy Systems GlobalConference Call ParticipantsChip Moore - Managing Director and Senior Equity Research AnalystGreg Lewis - Managing Director and Senior Equity Research AnalystNoah Kaye - Managing Director and Senior AnalystOperatorHello, and thank you for standing by. ...

EnerSys (NYSE:ENS) Q3 2026 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsAndrea Funk - EVP and CFOBrian Drab - Partner and Co-Group Head of IndustrialsLisa Hartman - VP of Investor RelationsShawn O'Connell - President of Energy Systems GlobalConference Call ParticipantsChip Moore - Managing Director and Senior Equity Research AnalystGreg Lewis - Managing Director and Senior Equity Research AnalystNoah Kaye - Managing Director and Senior AnalystOperatorHello, and thank you for standing by. ...

EnerSys (NYSE:ENS) Q3 2026 Earnings call February 05, 2026 09:00 AM ET Speaker6Hello, and thank you for standing by. My name is Bella, and I will be your conference operator today. At this time, I would like to welcome everyone to EnerSys's Q3 Fiscal 2026 Earnings Webcast and Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. We do request for today's session that you please limit to one question and ...

February 2026 © 2026 EnerSys. All Rights Reserved. Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements on this call that are based on Management's current expectations and views regarding future events and operating performance and are subject to uncertainties and changes in circumstances. Our actual results may differ materially from the forward-looking statements for a number of reasons. Our forward-looking statements are applicable only as of the date of thi ...

EnerSys (ENS) came out with quarterly earnings of $2.77 per share, beating the Zacks Consensus Estimate of $2.73 per share. This compares to earnings of $3.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.34%. A quarter ago, it was expected that this maker of industrial batteries would post earnings of $2.36 per share when it actually produced earnings of $2.56, delivering a surprise of +8.47%.Over the last four quarters, ...

READING, Pa.--(BUSINESS WIRE)-- #EnerSys--EnerSys (NYSE: ENS), a global leader in stored energy solutions announced today that its Board of Directors has declared a quarterly cash dividend of $0.2625 per share of common stock payable on March 27, 2026, to holders of record as of March 13, 2026. About EnerSys EnerSys is a global leader in stored energy solutions for industrial applications and designs, manufactures and distributes energy systems solutions and motive power batteries, specialty batteries, ba. ...

Workforce Reduction and Restructuring - The company announced a reduction in force plan to reduce the global workforce by approximately 11%, or about 575 employees, with estimated one-time cash charges of $21.2 million and expected annualized savings of approximately $80 million starting in fiscal 2026[161]. - The company expects to realize approximately $30 million to $35 million in savings in fiscal 2026 from the restructuring plan, with material benefits beginning in the third quarter[161]. - The closure of the Monterrey, Mexico facility is expected to incur a pre-tax charge of approximately $13.7 million, with $12.2 million in cash charges related to severance and environmental expenses[198]. - The Company plans to stop production of residential renewable energy products, estimating total charges of $24.5 million, primarily non-cash charges of $23.6 million[200]. - The Spokane facility closure is estimated to incur total charges of approximately $3.6 million, including $1.4 million in cash charges for employee severance[203]. - The Sylmar facility closure is expected to result in total charges of approximately $13.7 million, with cash charges of $9.7 million primarily for severance[206]. - The Ooltewah facility closure is estimated to incur total charges of approximately $18.5 million, with cash charges of $9.2 million related to severance and cleanup[209]. Financial Performance - Net sales increased by $12.9 million or 1.4% in Q3 fiscal 2026 compared to Q3 fiscal 2025, driven by a 3% increase in pricing and a 2% increase from foreign currency translation[184]. - Net sales for the nine months ended December 28, 2025, increased by $120.6 million or 4.6% compared to the same period in fiscal 2025, attributed to a 2% increase from acquisitions and pricing[185]. - Gross profit for Q3 fiscal 2026 was $276.3 million, a decrease of $21.9 million or 7.3% compared to Q3 fiscal 2025, with a gross profit margin of 30.1%[191]. - Operating expenses for Q3 fiscal 2026 were $147.8 million, a decrease of $6.5 million or 4.2% compared to Q3 fiscal 2025, reflecting cost-saving initiatives[192]. - For the nine months ended December 28, 2025, total operating earnings decreased by $30.7 million or 9.2% compared to the same period in 2024, with operating earnings as a percentage of net sales decreasing by 160 basis points[222]. - Energy Systems operating earnings increased by 66.9% to $42.1 million in Q4 of fiscal 2025, compared to $25.3 million in Q4 of fiscal 2024[220]. - Corporate and other segment reported a significant decrease in operating earnings by 58.8%, from $67.8 million in Q4 of fiscal 2024 to $27.9 million in Q4 of fiscal 2025[220]. Market and Economic Conditions - The data center market is currently in a growth cycle driven by AI and increasing digitization, while the communications market is experiencing a modest recovery[168]. - Global defense budgets are increasing in response to rising geopolitical tensions, with spending in EMEA growing at a higher rate than in the US[168]. - The company experienced lead prices ranging from approximately $0.85 to $0.95 per pound in fiscal year 2026, with customer pricing changes generally lagging behind commodity price movements by six to nine months[169]. - The ongoing Israel-Hamas conflict has disrupted some shipments, leading to potential increases in ocean freight costs and transit times[167]. - The company is assessing the impacts of U.S. tariffs on imported goods, which could have substantial effects on its operations and supply chains[163]. Cash Flow and Financing - Operating activities generated cash of $403.6 million in the nine months of fiscal 2026, a significant increase from $125.1 million in the same period of fiscal 2025[244]. - Investing activities used cash of $75.7 million in the nine months of fiscal 2026, primarily for capital expenditures of $67.2 million and acquisitions of $12.7 million[245]. - Financing activities used cash of $241.4 million in the nine months of fiscal 2026, including treasury stock purchases totaling $301.4 million and cash dividends of $28.6 million[247]. - Total cash and cash equivalents increased by $107.0 million to $450.1 million in the nine months of fiscal 2026, compared to an increase of $129.8 million to $463.2 million in fiscal 2025[249]. - The Company entered into a sixth amendment to the 2017 Credit Facility, increasing the revolving credit facility to $1.0 billion, maturing on September 30, 2030[255]. Taxation and Interest - Interest expense for the nine months ended December 28, 2025, was $37.6 million, a decrease of $0.8 million from $38.4 million in the same period in 2024[228]. - Earnings before income taxes for the nine months ended December 28, 2025, decreased by $41.9 million or 14.4% compared to the same period in 2024, with earnings before income taxes as a percentage of total net sales at 9.0%[235]. - Income tax expense for the nine months ended December 28, 2025, was $32.0 million, an increase of $9.0 million or 39.2% compared to $23.0 million in the same period in 2024[237]. - The effective tax rate for the quarter ended December 28, 2025, was 14.9%, an increase of 5.5 percentage points from 9.4% in the same quarter of 2024[236]. - The company continues to monitor the impact of the OECD's global minimum corporate tax of 15% which may affect future tax liabilities[238]. - The consolidated effective income tax rates for Q3 fiscal 2026 and 2025 were 14.9% and 9.4%, respectively, with a nine-month rate of 12.9% for fiscal 2026 compared to 7.9% for fiscal 2025[241]. Foreign Exchange and Commodity Exposure - About 40% of sales and related expenses are transacted in foreign currencies, impacting sales revenue, production costs, and profit margins[268]. - The largest foreign currency exposure arises from converting U.S. dollar-based lead costs into local currencies in Europe[269]. - The company hedges approximately 5% - 10% of the nominal amount of known annual foreign exchange transactional exposures[270]. - Gains and losses from hedging instruments offset foreign exchange gains or losses on the underlying assets and liabilities being hedged[271]. - An unfavorable 10% movement in exchange rates would have adversely changed hedge valuations by approximately $83.6 million and $75.5 million as of December 28, 2025, and December 29, 2024, respectively[272]. - A 100 basis point increase in interest rates would have raised annual interest expense by approximately $3.9 million on the variable rate portions of the debt[264]. - The Company has forward contracts for lead, with a total value of $98.3 million for 106.8 million pounds at an average cost of $0.92 per pound, covering 20% of lead requirements[265]. - Approximately 100% of the cost of lead requirements is known for the remaining quarter of the fiscal year, considering hedge contracts and FIFO accounting policy[266]. - A 10% increase in the cost of lead would have raised the cost of goods sold by approximately $16.0 million in the three months of fiscal 2026[267].