Energizer (ENR) - 2025 Q3 - Quarterly Results

Energizer Holdings, Inc. Fiscal 2025 Third Quarter Results Overview Summarizes Energizer Holdings, Inc.'s strong Q3 FY25 results and updated full-year outlook Highlights of Third Quarter Performance 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] Updated Full Year 2025 Outlook 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] CEO Statement 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] - The business has been further strengthened by qualification for production credits, a direct result of investments and focus on US manufacturing capabilities[1] - 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] Third Quarter 2025 Financial Review Detailed Q3 FY25 financial review, covering net sales, gross margin, operating expenses, earnings, and cash flow Net Sales 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] Gross Margin 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] - 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] Operating Expenses Details the company's operating expenses, including SG&A and A&P, and their key drivers Selling, General and Administrative Expense (SG&A) 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] - These increases were partially offset by Project Momentum savings of approximately $3 million in the quarter[8] Advertising and Promotion Expense (A&P) 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] Earnings Per Share (EPS) and Adjusted EBITDA 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] - 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] Free Cash Flow and Capital Allocation 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] Fiscal Year 2025 Financial Outlook Outlines updated fiscal year 2025 financial projections, including full-year guidance and Q4 expectations Full Year Guidance 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] Fourth Quarter Expectations 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] Webcast Information 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] - 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][15] - A live webcast and replay are accessible via www.energizerholdings.com under 'Investors' and 'Events and Presentations' tabs[15] Forward-Looking Statements and Risk Factors 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] - 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] - 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][19] Consolidated Financial Statements (Unaudited) Presents unaudited consolidated financial statements: earnings, balance sheets, and cash flows, for a comprehensive financial overview Consolidated Statement of Earnings 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] - The prior year's net loss was significantly impacted by a $110.6 million impairment of intangible assets related to the Rayovac and Varta trade names[21] Consolidated Balance Sheets The consolidated balance sheet as of June 30, 2025, shows an increase in total assets, driven by higher inventories and other current assets, and a corresponding increase in total liabilities, primarily long-term debt and notes payable, with shareholders' equity also increasing Consolidated Balance Sheets (Condensed) - June 30, 2025 vs. September 30, 2024 | Metric | June 30, 2025 ($M) | September 30, 2024 ($M) | | :-------------------------------- | :----------------- | :---------------------- | | Total assets | 4,516.0 | 4,342.4 | | Total current assets | 1,642.4 | 1,478.9 | | Inventories | 870.1 | 657.3 | | Total liabilities | 4,332.8 | 4,206.6 | | Long-term debt | 3,218.4 | 3,193.0 | | Notes payable | 134.6 | 2.1 | | Total shareholders' equity | 183.2 | 135.8 | - The increase in total assets is largely attributable to a significant rise in inventories and other current assets[23] - The increase in total liabilities is primarily due to higher long-term debt and a substantial increase in notes payable[23] Consolidated Statements of Cash Flows For the nine months ended June 30, 2025, net cash from operating activities decreased significantly compared to the prior year, primarily due to changes in current assets and liabilities and the impact of production credits, while cash used in investing activities remained stable and financing activities decreased Consolidated Statements of Cash Flows (Condensed) - Nine Months Ended June 30 | Metric | 2025 ($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] - Financing activities in 2025 included significant debt issuance and payments, as well as common stock repurchases ($62.6 million) and dividend payments ($66.6 million)[25] Supplemental Non-GAAP Financial Information Provides supplemental non-GAAP financial information: measure explanations, segment performance, and GAAP to adjusted reconciliations Explanation of Non-GAAP Measures Energizer Holdings, Inc. provides various non-GAAP financial measures to offer additional insights into its ongoing operating performance, excluding items not reflective of core business, such as restructuring costs, acquisition expenses, and certain production credits, aiding investors in year-over-year comparability and analysis - Non-GAAP measures exclude items like restructuring and related costs, network transition costs, acquisition and integration costs, FY23 & FY24 production credits, impairment of intangible assets, litigation matters, debt extinguishment/modification losses, and the December 2023 Argentina Economic Reform[27] - Key non-GAAP measures defined include Segment Profit, Adjusted Net Earnings and Adjusted Diluted Net Earnings per Common Share (EPS), Non-GAAP Tax Rate, Organic growth, Adjusted Comparisons, EBITDA and Adjusted EBITDA, Free Cash Flow, Net Debt, and Currency-neutral results[28][29][30][31][32][33][34][35][36] - The company emphasizes that non-GAAP measures should be considered in addition to, not as a substitute for, comparable GAAP measures[27] Segment Performance Analyzes Batteries & Lights and Auto Care segment performance, detailing net sales, profit, and depreciation/amortization Segment Net Sales and Profit The Batteries & Lights segment showed strong net sales and profit growth in Q3 FY25, driven by organic growth and acquisition impact, while the Auto Care segment experienced a slight decline in net sales but an increase in segment profit for the nine months Segment Net Sales - Q3 and Nine Months Ended June 30 | Segment | Q3 2025 Net Sales ($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 ($M) | 9 Months % Chg | | :---------------- | :-------------------------- | :-------------------------- | :--------- | :-------------------------------- | :-------------------------------- | :------------- | | Batteries & Lights | 158.8 | 129.4 | +22.7% | 390.4 | 375.3 | +4.0% | | Auto Care | 24.1 | 26.8 | -10.1% | 79.8 | 74.1 | +7.7% | | Total Segment Profit | 182.9 | 156.2 | +17.1% | 470.2 | 449.4 | +4.6% | - Batteries & Lights organic net sales increased 0.5% in Q3 and 2.6% for the nine months, while Auto Care organic net sales decreased 0.9% in Q3 and 0.9% for the nine months[52] Segment Depreciation and Amortization Both segments experienced an increase in depreciation and amortization for Q3 and the nine months ended June 30, 2025, contributing to the overall rise in total depreciation and amortization Segment Depreciation and Amortization - Q3 and Nine Months Ended June 30 | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9 Months 2025 ($M) | 9 Months 2024 ($M) | | :-------------------------------- | :----------- | :----------- | :----------------- | :----------------- | | Batteries & Lights | 13.7 | 12.9 | 40.6 | 37.2 | | Auto Care | 3.5 | 3.3 | 9.9 | 8.9 | | Total segment depreciation and amortization | 17.2 | 16.2 | 50.5 | 46.1 | | Amortization of intangible assets | 14.7 | 14.5 | 44.1 | 43.5 | | Total depreciation and amortization | 31.9 | 30.7 | 94.6 | 89.6 | GAAP EPS to Adjusted EPS Reconciliation The reconciliation highlights the significant impact of non-GAAP adjustments, particularly the FY23 & FY24 production credits, which transformed a GAAP net loss in the prior year to a positive adjusted net earnings, demonstrating the underlying operational performance GAAP EPS to Adjusted EPS Reconciliation - Q3 and Nine Months Ended June 30 | Metric | Q3 2025 ($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] - 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] Currency Neutral Results 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] - For the nine months, the currency impact was negative $0.04 on Adjusted diluted net earnings per common share and negative $3.7 million on Adjusted EBITDA[47] Reconciliation of Gross Profit, SG&A, and Other Items, Net This section provides detailed reconciliations of reported to adjusted figures for Gross Profit, SG&A, and Other items, net, highlighting the specific impacts of restructuring, network transition costs, acquisition and integration costs, and production credits on these financial metrics across quarters Gross Profit Reconciliation - Q1-Q3 FY25 vs FY24 | Metric | Q3 2025 ($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] EBITDA and Adjusted EBITDA Reconciliation 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] - The LTM Adjusted EBITDA of $639.7 million reflects the cumulative impact of these adjustments over the past year[60] Free Cash Flow and Net Debt Reconciliation 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] Fiscal Year 2025 Outlook Reconciliation 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]