Group 1: Company Performance - EVgo is set to report earnings, with previous quarter revenues of $98.03 million, exceeding analysts' expectations by 15.7% and showing a year-on-year growth of 47.2% [1] - The company sold 88 gigawatt-hours, marking a 33.3% increase year on year [1] - Analysts expect revenue for the upcoming quarter to grow 35.8% year on year to $91.68 million, a slowdown from the previous year's 92.4% increase [2] Group 2: Analyst Sentiment - Analysts have generally reconfirmed their estimates for EVgo over the last 30 days, indicating confidence in the company's performance [3] - EVgo has only missed Wall Street's revenue estimates once in the past two years, with an average top-line expectation beat of 8.2% [3] Group 3: Market Context - In the renewable energy sector, peers like Bloom Energy and EnerSys have reported strong Q3 results, with Bloom Energy achieving 57.1% year-on-year revenue growth and EnerSys reporting a 7.6% increase [4] - Investor sentiment in the renewable energy segment has been positive, with average share prices up 2.2% over the last month, while EVgo's shares have declined by 18% during the same period [5] - The average analyst price target for EVgo is $6.34, compared to its current share price of $3.50 [5]

Group 1 - Plug Power is set to announce earnings results, with analysts expecting a revenue growth of 1.5% year on year to $176.4 million, following a previous quarter where it reported revenues of $174 million, up 21.4% year on year [1][2] - The company has missed Wall Street's revenue estimates six times over the last two years, indicating potential challenges in meeting expectations [3] - In comparison, peers in the renewable energy segment, such as Bloom Energy and EnerSys, have reported strong revenue growth, with Bloom Energy achieving 57.1% year-on-year growth and EnerSys reporting a 7.6% increase [4] Group 2 - Investor sentiment in the renewable energy sector has been positive, with average share prices up 2.2% over the last month, while Plug Power's shares have declined by 21.9% during the same period [5] - The average analyst price target for Plug Power is $2.78, slightly above its current share price of $2.67, suggesting limited upside potential [5]

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]

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Financial Data and Key Metrics Changes - Net sales increased by 8% year over year, reaching a record high of $951 million for the second quarter [4][15] - Adjusted diluted EPS rose by 21% to $2.56 per share, marking a record high for the fiscal second quarter [16] - Adjusted operating earnings increased by 13%, with adjusted EBITDA also up by 13% [4][15] Business Line Data and Key Metrics Changes - Energy systems revenue grew by 14% year over year to $435 million, with adjusted operating earnings up 38% [17] - Motive power revenue decreased by 2% to $360 million, with adjusted operating earnings down by $10 million [18] - Specialty revenue increased by 16% to $157 million, driven by organic volume growth and the Bren-Tronics acquisition [19] Market Data and Key Metrics Changes - Data center market revenue grew by 29% year over year, indicating strong demand [35] - Communications sector showed signs of recovery, with increased spending on network refreshes rather than expansions [11][39] - A&D (Aerospace and Defense) demand remained robust, with expectations for increasing sales in upcoming quarters [12][40] Company Strategy and Development Direction - The company is focusing on its Energize strategic framework to optimize core operations and accelerate growth [5][6] - Three centers of excellence have been launched to enhance innovation and reduce costs [6][7] - The company is evaluating its lithium cell supply options and plans to provide updates on a new lithium factory [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in offsetting tariff impacts through proactive supply chain actions [10] - The order book reflects dynamic market conditions, with expectations for improving macro conditions to stabilize demand [11] - The company anticipates continued earnings growth, with adjusted operating earnings growth expected to outpace revenue growth [25][46] Other Important Information - Free cash flow for the quarter was strong at $197 million, with a conversion rate of 288% [21] - The company repurchased 636,000 shares for $68 million during the quarter, demonstrating a commitment to returning value to shareholders [23] - The next Investor Day is scheduled for June 11, 2026, in New York City [14] Q&A Session Summary Question: What end markets are most impacted by demand pull-ins and customer spending shifts? - Management noted that the communication sector was significantly impacted, with customers front-loading their orders due to large acquisitions [27][28] Question: How are elevated lithium costs affecting margins? - Management explained that higher costs are due to sourcing from China and that margins will be pressured until production ramps up [30] Question: What is the outlook for gross margins? - Management indicated that gross margins are expected to improve, driven by price mix improvements and ongoing cost reduction initiatives [32][34] Question: Can you provide an update on the data center revenue? - Data center revenue was up 29% year over year, with strong opportunities for growth in lead-acid and UPS systems [35][36] Question: What is the impact of the government shutdown on A&D demand? - Management reported that while there were some impacts, overall A&D demand remains strong, particularly in advanced defense applications [40]

Q2 FY'26 Performance - Net sales reached $951 million, an increase of 8% year-over-year[12,37] - Adjusted EPS ex 45X was $1.51, up 15% year-over-year[11,12] - Adjusted operating earnings were $130 million, a 13% increase year-over-year, or a 10% increase excluding 45X benefits[12] - Free cash flow was $197 million, a significant increase of $194 million year-over-year[12] - Adjusted gross margin was 29.1%, up 40 bps year-over-year, but excluding 45X, it was 24.9%, flat year-over-year[13] Tariff Mitigation - The company faces approximately $70 million in annualized tariff exposure[17] - 78% of US supply is sourced from US or USMCA compliant regions, limiting tariff exposure[22] - 65% of global revenue is in the US[22] Demand Trends - Q2'26 orders decreased 1% year-over-year and 7% quarter-over-quarter[28] - Q2'26 book-to-bill ratio was 0.90, down year-over-year and quarter-over-quarter[28] - Q2'26 backlog decreased 8% year-over-year and 10% quarter-over-quarter[26] Q3'26 Guidance - Net sales are projected to be between $920 million and $960 million, representing a 4% year-over-year increase at the midpoint[57] - Adjusted EPS is expected to be between $2.71 and $2.81, but excluding 45X, it's projected at $1.64 to $1.74, a 46% increase[57] - The company anticipates a $35 million to $40 million IRC 45X benefit to the cost of sales[57]

Core Insights - EnerSys reported revenue of $951.3 million for the quarter ended September 2025, reflecting a year-over-year increase of 7.7% and a surprise of +7.1% over the Zacks Consensus Estimate of $888.23 million [1] - The company's EPS for the quarter was $2.56, up from $2.12 in the same quarter last year, resulting in an EPS surprise of +8.47% compared to the consensus estimate of $2.36 [1] Revenue Breakdown - Specialty Net Sales reached $156.9 million, exceeding the two-analyst average estimate of $137.45 million, with a year-over-year change of +16.4% [4] - Motive Power Net Sales were reported at $359.7 million, slightly above the average estimate of $355.69 million, but showing a year-over-year decline of -1.9% [4] - Energy Systems Net Sales amounted to $434.7 million, surpassing the two-analyst average estimate of $394.33 million, with a year-over-year increase of +13.8% [4] Stock Performance - EnerSys shares have returned +8.8% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - EnerSys reported quarterly earnings of $2.56 per share, exceeding the Zacks Consensus Estimate of $2.36 per share, and showing an increase from $2.12 per share a year ago, representing an earnings surprise of +8.47% [1] - The company achieved revenues of $951.3 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.10% and up from $883.7 million year-over-year [2] - EnerSys shares have increased by approximately 33.2% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.53, with expected revenues of $927.95 million, and for the current fiscal year, the EPS estimate is $9.76 on revenues of $3.69 billion [7] - The estimate revisions trend for EnerSys was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Manufacturing - Electronics industry, to which EnerSys belongs, is currently ranked in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - EnerSys, a global leader in stored energy solutions, has declared a quarterly cash dividend of $0.2625 per share, payable on December 26, 2025, to shareholders of record as of December 12, 2025 [1] Company Overview - EnerSys specializes in stored energy solutions for industrial applications, including the design, manufacturing, and distribution of energy systems solutions and motive power batteries, as well as specialty batteries [1]