EnerSys(ENS) - 2026 Q1 - Earnings Call Presentation

Financial Performance - Q1 FY'26 - Net sales increased by 5% year-over-year to $893 million[20, 37] - Adjusted operating earnings increased by 8% year-over-year to $114 million[20, 39] - Adjusted EBITDA increased by 2% year-over-year to $123 million[20, 41] - Adjusted EPS increased by 5% year-over-year to $2.08, but decreased by 6% excluding the 45X tax credit[20, 42] - Free cash flow was negative $32 million, a decrease of $6 million year-over-year[20] - Gross margin was 28.4%, an increase of 40 bps year-over-year, but 24.1% excluding the 45X tax credit[21] Q2 FY'26 Guidance - The company expects net sales to be flat year-over-year, in the range of $870 million to $910 million[9, 60] - Adjusted EPS is expected to increase by 26% year-over-year, or 8% excluding the 45X tax credit, with a range of $2.33 to $2.43[9, 60] - The company anticipates a $35 million to $40 million benefit to the cost of sales from IRC 45X[9, 60] Strategic Initiatives - The company introduced EnerGize, a strategic framework to transform and grow the company[9, 10] - The company is restructuring for operational efficiency, including an 11% workforce reduction, expecting $80 million in annualized savings[12] - The company increased its buyback authorization by $1 billion to be executed over 5 years and returned $159 million to shareholders through buybacks and dividends[9]