Core Insights - EnerSys reported quarterly earnings of $2.97 per share, exceeding the Zacks Consensus Estimate of $2.78 per share, and showing an increase from $2.08 per share a year ago, representing an earnings surprise of 6.83% [1] - The company posted revenues of $974.8 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.06%, but up from $910.7 million year-over-year [2] - EnerSys has outperformed the S&P 500 with a 6.2% increase in shares since the beginning of the year, compared to the S&P 500's 1% gain [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.36, with expected revenues of $904.23 million, and for the current fiscal year, the EPS estimate is $10.19 on revenues of $3.78 billion [7] - The estimate revisions trend for EnerSys is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Manufacturing - Electronics industry, to which EnerSys belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Q4'25 & FY'25 Earnings MAY 21, 2025 May 2025 2 Q4'25 & FY'25 Overview D AV E S H A F F E R Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements on this call that are based on Management's current expectations and views regarding future events and operating performance and are subject to uncertainties and changes in circumstances. Our actual results may differ materially from the forward- looking statements for a number of reasons. Our forward-looking statements ...

Customer Base and Market Presence - EnerSys serves over 10,000 customers in more than 100 countries, with no single customer accounting for more than 10% of revenues[26]. - The company operates four segments: Energy Systems, Motive Power, Specialty, and New Ventures, each serving diverse markets[22]. - EnerSys has a strong presence in the industrial energy storage market, competing with companies like East Penn Manufacturing and Exide Technologies[34]. - The company’s Energy Systems customers include those in telecommunications, data centers, and electric utilities, reflecting a diverse market base[27]. - Approximately 40% of net sales were generated outside of the United States in fiscal 2025, exposing the company to significant foreign currency translation risks[125]. Acquisitions and Growth Strategy - The company completed the acquisition of Bren-Tronics Defense LLC for $206.4 million, enhancing its Specialty line of business with portable power solutions for military applications[25]. - EnerSys has made thirty-six acquisitions globally from fiscal years 2003 through 2025, with no significant acquisitions in fiscal 2023 or 2024[25]. - The growth strategy is heavily dependent on acquisitions, and failure to identify suitable candidates or integrate acquired businesses could materially affect operations[100][102]. - Future acquisitions may involve issuing equity securities, which could dilute stockholder ownership and adversely impact the market price of the stock[103]. Financial Performance and Costs - The company estimates that raw material costs account for over 50% of its cost of goods sold, and fluctuations in the prices of materials like lead, lithium, and nickel could significantly impact financial results[85]. - The Company experienced lead prices ranging from approximately $0.85 to $1.00 per pound in fiscal 2025, impacting production costs[211]. - Approximately 25% of the Company's revenue is subject to agreements that adjust pricing based on a market-based index for lead[212]. - The Company anticipates that selling prices will be higher in fiscal 2026 compared to fiscal 2025 due to inflationary cost increases[213]. - The trailing three months net sales annualized was $3,899.2 million at March 31, 2025, compared to $3,642.8 million at March 31, 2024[215]. Sustainability and Environmental Goals - The company has committed to reducing its energy intensity by 25% over the next 10 years from a 2020 baseline[56]. - The company has set net-neutral goals for Scope 1 emissions by 2040 and Scope 2 emissions by 2050[56]. - The company has published its Climate Action Plan Roadmap in October 2024, detailing plans to achieve climate goals[56]. - The company has released comprehensive Sustainability Reports in 2022 and 2023, aligned with GRI and SASB standards[56]. - The company has a dedicated sustainability steering committee that includes members of senior management to oversee sustainability performance[73]. Risks and Challenges - The company is subject to significant pricing pressures due to competition from major international manufacturers and regional competitors, which could adversely affect profitability and cash flows[77]. - The company relies on third-party relationships for key aspects of its business, and any failure of these parties could expose it to risks of business disruption and higher costs[78]. - The company faces risks related to the introduction of new products and technologies, as failure to innovate could lead to reduced market acceptance[94]. - Cybersecurity incidents, including ransomware and phishing attacks, pose significant risks to the integrity and privacy of the company's data[106][107]. - The company faces risks from public health epidemics, such as COVID-19, which have previously disrupted global operations and supply chains[115][116]. Regulatory and Compliance Issues - Regulatory scrutiny in various countries may lead to substantial fines or operational disruptions, harming the company's reputation and business[119][120]. - The company is subject to extensive environmental liability, which could result in significant fines or operational restrictions if noncompliance occurs[143]. - The company is currently subject to conflict mineral disclosure regulations, which may increase costs and affect supplier relationships[153]. - The company is impacted by the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which impose stringent requirements on data handling[155]. Financial Position and Capital Management - The company's total consolidated debt as of March 31, 2025, was $1,113 million, which may restrict operational flexibility and increase vulnerability to economic conditions[136]. - The company has $343 million in available cash and cash equivalents as of March 31, 2025[216]. - The company has approximately $653 million available and undrawn under all lines of credit as of March 31, 2025[216]. - A third amendment to the 2017 Credit Facility provided a new incremental delayed-draw senior secured term loan of up to $300 million[217]. - The company has a share repurchase program authorized for up to $200 million, with approximately $178.9 million remaining as of March 31, 2025[164]. Employee and Labor Relations - The company reported that approximately 28% of its 10,858 employees are covered by collective bargaining agreements, with 8% of these agreements expiring in the next twelve months[45]. - The company faces significant competition for qualified personnel, which could impact its ability to retain key employees and affect business continuity[166].

Core Viewpoint - EnerSys (ENS) is set to release its fourth-quarter fiscal 2025 results on May 21, with a history of positive earnings surprises averaging 2.2% [1] Group 1: Financial Performance Expectations - The consensus estimate for ENS's fourth-quarter revenues is $975.4 million, reflecting a 7.1% increase from the previous year [5] - The expected adjusted earnings per share for the quarter is $2.78, indicating a significant 33.7% increase from the year-ago quarter [5] Group 2: Segment Performance Insights - The Motive Power segment is projected to achieve net sales of $396 million, a slight increase of 0.3% year-over-year, driven by sales of maintenance-free thin plate pure lead and lithium products [2] - The Specialty segment is expected to report net sales of $165 million, representing a robust 12.2% increase from the previous year, benefiting from strong momentum in aerospace and defense markets [3] - The Energy Systems segment is anticipated to reach net sales of $416 million, reflecting a 12.7% increase year-over-year, supported by the expansion of U.S. communications networks driven by AI data demand [4] Group 3: Investment and Market Risks - EnerSys has been making significant investments to enhance growth, although high capital expenditures may negatively impact performance [6] - The company's international operations expose it to currency fluctuation risks, which could affect its performance in the upcoming quarter [6] Group 4: Earnings Prediction Insights - The current Earnings ESP for ENS is 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are at $2.78, indicating uncertainty in predicting an earnings beat [8] - ENS holds a Zacks Rank of 3, suggesting a neutral outlook for earnings performance [8]

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Esco Technologies (ESE) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.Esco Technologies is a member of our Industrial Products group, which includes 200 different companies and currently sits at #10 in the Zacks Sector Rank. ...

Market Overview - The U.S. stock market is experiencing a strong bull run, driven by economic resilience and increased CEO confidence, which reached an index of 60 in Q1 2025, indicating "confident optimism" [1] - The economy expanded by 2.8% in Q4 2024, supported by a robust labor market, while a 1% rate cut by the Federal Reserve has lowered borrowing costs, promoting business expansions and consumer spending [1] - Inflation is trending towards the Fed's 2% target, leading to optimism about further monetary easing in 2025 [1] Investment Strategy - Investors are encouraged to focus on relative price strength, identifying stocks that outperform their peers as market trends strengthen [2] - High-performing stocks with strong relative price momentum are seen as advantageous in navigating the ongoing bull market [2] Recommended Stocks - **Pitney Bowes (PBI)**: Expected earnings growth of 47.6% for 2025, with a trailing four-quarter earnings surprise of approximately 96.6% and a share price increase of 177.4% over the past year [10][11] - **The Hanover Insurance Group (THG)**: Projected earnings growth of 7.7% for 2025, with a trailing four-quarter earnings surprise of about 21.7% and a share price increase of 20.2% over the past year [12][13] - **EnerSys (ENS)**: Anticipated EPS growth rate of 19.8% for fiscal 2025, with a 12.8% share price increase over the past year [14][15] - **First Financial Corporation (THFF)**: Expected earnings growth of 39% for 2025, with a share price increase of 38.6% over the past year [16][17] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks that have historically outperformed the S&P 500 are considered, with a minimum price of $5 and adequate trading volume [9][10]