Energizer (US:ENR) ZACKSยท2025-11-18 16:06Core Insights - Energizer Holdings, Inc. reported fourth-quarter fiscal 2025 results with net sales exceeding estimates while earnings fell short, indicating a mixed performance [1][10] - The company is entering a transition period in fiscal 2026, facing temporary tariff costs and has extended Project Momentum to protect margins [2] Financial Performance - Adjusted earnings per share were $1.05, missing the Zacks Consensus Estimate of $1.12, and decreased by 13.9% year over year [3] - Net sales reached $832.8 million, surpassing the Zacks Consensus Estimate of $831 million, marking a 3.4% increase from the previous year [4] - Organic net sales declined by 2.2%, primarily due to a 2.9% decrease in volumes from softer consumer demand in North America [5][10] Segment Performance - Batteries & Lights segment net sales increased by 3.9% to $677.2 million, while segment profit decreased by 15.4% to $151.8 million [6] - Auto Care segment net sales rose by 1% to $155.6 million, with segment profit increasing by 29% to $25.8 million [6] Margin and Cost Analysis - Adjusted gross profit was $320.3 million, down 5.7% year over year, with adjusted gross margin contracting by 370 basis points to 38.5% [7] - Adjusted SG&A expenses increased by 4.2% year over year to $128.2 million, driven by higher costs in the APS business and digital transformation investments [9] Future Outlook - For fiscal 2026, the company expects organic net sales to be flat to slightly higher, with modest gross margin pressure anticipated [17] - Adjusted earnings per share are projected to range from $3.30 to $3.60, while adjusted EBITDA is expected between $580 million and $610 million [18] - The first quarter of fiscal 2026 is expected to reflect a high single-digit percentage decline in organic net sales, with adjusted EPS anticipated in the range of 20 to 30 cents [19]