Energizer (US:ENR)2025-11-18 12:02Financial 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]