EnerSys' Q2 Earnings & Sales Beat Estimates, Increase Year Over Year

Core Insights - EnerSys (ENS) reported adjusted earnings of $2.56 per share for Q2 fiscal 2026, exceeding the Zacks Consensus Estimate of $2.08, marking a year-over-year increase of 20.6% [1][10] - Net sales reached $951.3 million, surpassing the consensus estimate of $928 million, with a year-over-year growth of 7.7% driven by data center and communications markets, as well as the Bren-Tronics acquisition [2][10] Financial Performance - The Energy Systems segment generated sales of $435 million, accounting for 45.7% of total sales, reflecting a 14% year-over-year increase, exceeding the consensus estimate of $394 million [3] - The Motive Power segment reported net sales of $360 million, representing 37.9% of total sales, down 2% year over year, slightly above the consensus estimate of $356 million [4] - The Specialty segment's sales were $157 million, accounting for 16.4% of total sales, up 16% year over year, surpassing the consensus estimate of $137 million [5] Margin Analysis - Cost of sales increased by 6.7% year over year to $674 million, while gross profit rose by 10% to $277.2 million, resulting in a gross margin increase of 40 basis points to 29.1% [6] - Operating expenses increased by 9% year over year to $164.1 million, leading to a 7.4% decrease in operating earnings to $92.0 million, with the operating margin declining by 150 basis points to 9.7% [6] Balance Sheet and Cash Flow - As of the end of Q2 fiscal 2026, EnerSys had cash and cash equivalents of $388.6 million, up from $343.1 million at the end of fiscal 2025, while long-term debt increased to $1.18 billion from $1.08 billion [7] - The company generated net cash of $219 million from operating activities in the first half of fiscal 2026, compared to $44 million in the same period last year, with capital expenditure totaling $53.9 million [8] Guidance - For Q3 fiscal 2026, EnerSys expects adjusted earnings to be in the range of $2.71–$2.81 per share, indicating a growth of 36% at the mid-point, with net sales projected between $920–$960 million [10][11]