Enersys' Q4 Earnings Surpass Estimates, Sales Rise Year Over Year

Core Insights - EnerSys (ENS) reported adjusted earnings of $2.97 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of $2.78, marking a 43% year-over-year increase [1] - The company's net sales for Q4 were $974.8 million, slightly missing the consensus estimate of $975 million, but reflecting a 7% year-over-year growth [2] Financial Performance - For fiscal 2025, EnerSys reported net revenues of $3.62 billion, a 1% increase year-over-year, with adjusted earnings of $10.15 per share, up 21.6% year-over-year [3] - The Energy Systems segment generated sales of $399 million, an 8% increase year-over-year, although it fell short of the consensus estimate of $416 million [3] - The Motive Power segment's sales were $392 million, down 0.6% year-over-year, missing the consensus estimate of $396 million [4] - The Specialty segment saw sales of $178 million, up 21% year-over-year, surpassing the consensus estimate of $165 million [5] Margin and Cost Analysis - EnerSys' cost of sales increased by 2.2% year-over-year to $671.1 million, while gross profit rose 19.4% to $303.7 million, resulting in a gross margin increase of 330 basis points to 31.2% [6] - Operating expenses rose 3.4% year-over-year to $162.7 million, with operating earnings increasing 62.3% to $131.3 million, leading to an operating margin increase of 460 basis points to 13.5% [6] Balance Sheet and Cash Flow - At the end of Q4 fiscal 2025, EnerSys had cash and cash equivalents of $343.1 million, up from $333.3 million at the end of fiscal 2024, while long-term debt increased to $1.08 billion from $802 million [7] - The company generated net cash of $260.3 million from operating activities in fiscal 2025, down from $457 million in the previous year, with capital expenditures totaling $121 million [8] Guidance - For Q1 fiscal 2026, EnerSys expects adjusted earnings to be in the range of $2.03–$2.13 per share, with net sales projected between $830–$870 million [9]