EnerSys Reports First Quarter Fiscal 2027 Results
Key Terms
net leverage ratio financial
ebitda financial
non-gaap financial measure financial
free cash flow financial
Delivers Net Sales of
First Quarter Fiscal 2027 Highlights
(All comparisons against the first quarter of fiscal year 2026 unless otherwise noted)
-
Delivered net sales of
$936M 5% -
Achieved Gross Margin (GM) of
33.5% , up +510 bps and GM ex IRC 45X(1) of28.5% , up +440 bps -
Realized diluted EPS of
$3.09 112% , adjusted diluted EPS(1) of$3.66 64% , and adjusted diluted EPS ex IRC 45X(1) of$2.41 92% -
Realized
$30.9M $1.78 42% - Net leverage ratio(a) 0.8 X EBITDA
-
Returned
$60M $50M -
In August, the Board declared a
10% increase in the Company's quarterly dividend to$0.2875
EnerSys FY27 Earnings Report
“In the first quarter of fiscal year 2027, we delivered top line growth aligned with our long-term value creation framework,” said Shawn O'Connell, President and Chief Executive Officer of EnerSys. “Adjusted diluted EPS excluding IRC 45X increased
“Momentum across data centers, communications, and aerospace & defense is generating strong sales growth and margin expansion, offsetting the delayed recovery of material handling demand, and enabling another record first quarter result. We continue to advance on the commercialization of our next-generation products, progress on our planned lithium cell facility, and expand our services capabilities to accelerate our growth.
“As we communicated in our Investor Day in June, our strategic priorities are well defined. We are focused on our core markets where we have a right to win, we are applying our differentiated energy storage solutions to address the critical customer challenges of energy security and labor scarcity, and we are executing as a well-aligned organization to drive profitable growth and long-term shareholder value,” O’Connell concluded.
Key Financial Results and Metrics |
First quarter ended |
||||||||
In millions, except per share amounts |
July 5, 2026 |
|
June 29, 2025 |
|
Change |
||||
Net Sales |
$ |
935.6 |
|
$ |
893.0 |
|
|
4.8 |
% |
Diluted EPS (GAAP) |
$ |
3.09 |
|
$ |
1.46 |
|
$ |
1.63 |
|
Adjusted Diluted EPS (Non-GAAP)(1) |
$ |
3.66 |
|
$ |
2.23 |
|
$ |
1.43 |
|
Gross Profit (GAAP) |
$ |
313.4 |
|
$ |
253.2 |
|
$ |
60.2 |
|
Operating Earnings (GAAP) |
$ |
151.4 |
|
$ |
86.5 |
|
$ |
64.9 |
|
Adjusted Operating Earnings (Non-GAAP)(2) |
$ |
178.8 |
|
$ |
121.5 |
|
$ |
57.3 |
|
Net Earnings (GAAP) |
$ |
116.5 |
|
$ |
57.5 |
|
$ |
59.0 |
|
EBITDA (Non-GAAP)(3) |
$ |
176.1 |
|
$ |
103.9 |
|
$ |
72.2 |
|
Adjusted EBITDA (Non-GAAP)(3) |
$ |
195.8 |
|
$ |
130.5 |
|
$ |
65.3 |
|
Share Repurchases |
$ |
50.0 |
|
$ |
150.0 |
|
$ |
(100.0 |
) |
Dividend per share |
$ |
0.263 |
|
$ |
0.240 |
|
$ |
0.023 |
|
Total Capital Returned to Stockholders |
$ |
59.6 |
|
$ |
159.1 |
|
$ |
(99.5 |
) |
(a) Net leverage ratio is a non-GAAP financial measure as defined pursuant to our credit agreement and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures. |
|||||||||
| (1) GM (Gross Margin) excluding IRC 45X , Adjusted Diluted EPS and Adjusted Diluted EPS excluding IRC 45X benefit are non-GAAP financial measures and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures. | |||||||||
(2) Operating Earnings are adjusted for charges that the Company incurs as a result of restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and those charges and credits that are not directly related to operating unit performance. A reconciliation of operating earnings to Non-GAAP Adjusted Earnings are provided in tables under the section titled Business Segment Operating Results. |
|||||||||
(3) Non-GAAP EBITDA is calculated as net earnings adjusted for depreciation, amortization, interest and income taxes. Non-GAAP Adjusted EBITDA is further adjusted for certain charges such as restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and other charges and credits as discussed under Reconciliations of GAAP to Non-GAAP Financial Measures. |
Summary of Results
First Quarter Fiscal 2027
Net sales for the first quarter of fiscal 2027 were
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the first quarter of fiscal 2027 was
Net earnings for the first quarter of fiscal 2026 were
Excluding these highlighted items, adjusted diluted EPS for the first quarter of fiscal 2027, on a non-GAAP basis, were
Quarterly Dividend
The Company announced today that its Board of Directors has raised its quarterly cash dividend for the fourth consecutive year, with an increase of
Balance Sheet and Cash Flow
As of July 5, 2026, cash and cash equivalents were
The Company also returned approximately
Second Quarter and Fiscal Year 2027 Outlook
In the second quarter of fiscal 2027, EnerSys expects:
-
Net sales:
$955M $995M -
IRC 45X benefits to cost of sales:
$42M $47M -
Adjusted diluted EPS:
$3.15 $3.25 -
Adjusted diluted EPS, ex IRC 45X benefits:
$1.95 $2.05
For the full year fiscal 2027, EnerSys expects:
-
Capital expenditures
~ $70M
“We are pleased with the strong start to fiscal 2027 and the continued progress we are making to expand margins and strengthen the earnings power of the business,” said Andrea Funk, EnerSys Chief Financial Officer. “The quarter benefited from improved volumes and favorable price/mix in our NIS and PPS segments, more than offsetting IMS softness from the prolonged material handling market recovery. We also delivered exceptional free cash flow conversion of
“Our second quarter outlook reflects continued strength across Data Centers, Communications, and Aerospace and Defense, as well as early recovery in Transportation. For the second quarter, we expect net sales of
*Inclusive of IRC 45X Advanced Manufacturing Production Credits.
Please refer to the section included herein under the heading “Reconciliations of GAAP to Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information.
Conference Call and Webcast Details
The Company will host a conference call to discuss its first quarter results at 9:00 AM (ET) Thursday, August 13, 2026. A live broadcast as well as a replay of the call can be accessed via this webcast registration link or the Investor Relations section of the company’s website at https://investor.enersys.com.
If you cannot join via webcast, please reach out to investorrelations@enersys.com for dial-in details.
About EnerSys
EnerSys is a global leader in stored energy solutions helping industrial, infrastructure and defense customers address critical power and operational needs with batteries, chargers and other power equipment. The company delivers integrated solutions that combine energy storage technologies, power electronics, software-enabled intelligence, technical expertise and comprehensive global customer support. EnerSys supports customers across communications networks, data centers, energy infrastructure, material handling, transportation, aerospace and defense — including applications where power continuity is essential. Serving customers in more than 100 countries, EnerSys helps organizations manage energy more reliably, efficiently and intelligently in complex operating environments where uptime, safety and resilience matter. For more information, visit www.enersys.com.
Caution Concerning Forward-Looking Statements
This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act, which may include, but are not limited to, statements regarding EnerSys’ earnings estimates, intention to pay quarterly cash dividends, return capital to stockholders, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, including statements identified by words such as “believe,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “will,” and similar expressions. All statements addressing operating performance, events, or developments that EnerSys expects or anticipates will occur in the future, including statements relating to sales growth, earnings or earnings per share growth, order intake, backlog, payment of future cash dividends, commodity prices, execution of its stock buyback program, judicial or regulatory proceedings, ability to identify and realize benefits in connection with acquisition and disposition opportunities, and market share, as well as statements expressing optimism or pessimism about future operating results or benefits from its cash dividend, its stock buyback programs, application of Section 45X of the Internal Revenue Code, funding, development and construction of the Company's gigafactory in Greenville, South Carolina, adverse developments with respect to the economic conditions in the U.S. in the markets in which we operate and other uncertainties, including the impact of supply chain disruptions, interest rate changes, inflationary pressures, geopolitical and other developments and labor shortages on the economic recovery and our business and changes in law, regulation or policy that may affect our business, including trade policy and tariffs, and other government priorities or budgets are forward-looking statements within the meaning of the Reform Act. The forward-looking statements are based on management's current views and assumptions regarding future events and operating performance, and are inherently subject to significant business, economic, and competitive uncertainties and contingencies and changes in circumstances, many of which are beyond the Company’s control. The statements in this press release are made as of the date of this press release, even if subsequently made available by EnerSys on its website or otherwise. EnerSys does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Although EnerSys does not make forward-looking statements unless it believes it has a reasonable basis for doing so, EnerSys cannot guarantee their accuracy. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors which could affect EnerSys’ results, including earnings estimates, see EnerSys’ filings with the Securities and Exchange Commission, including “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2026. No undue reliance should be placed on any forward-looking statements.
EnerSys Consolidated Condensed Statements of Income (Unaudited) (In millions, except share and per share data) |
|||||
|
Quarter ended |
||||
|
July 5, 2026 |
|
June 29, 2025 |
||
Net sales |
$ |
935.6 |
|
$ |
893.0 |
Gross profit |
|
313.4 |
|
$ |
253.2 |
Operating expenses |
|
151.3 |
|
$ |
160.8 |
Restructuring and other exit charges |
|
10.7 |
|
$ |
5.9 |
Operating earnings |
|
151.4 |
|
$ |
86.5 |
Earnings before income taxes |
|
135.0 |
|
$ |
65.7 |
Income tax expense |
|
18.5 |
|
$ |
8.2 |
Net earnings attributable to EnerSys stockholders |
$ |
116.5 |
|
$ |
57.5 |
|
|
|
|
||
Net reported earnings per common share attributable to EnerSys stockholders: |
|
|
|
||
Basic |
$ |
3.19 |
|
$ |
1.48 |
Diluted |
$ |
3.09 |
|
$ |
1.46 |
Dividends per common share |
$ |
0.2625 |
|
$ |
0.2400 |
Weighted-average number of common shares used in reported earnings per share calculations: |
|
|
|
||
Basic |
|
36,467,526 |
|
|
38,798,263 |
Diluted |
|
37,626,671 |
|
|
39,295,773 |
EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) |
||||||||
|
|
July 5, 2026 |
|
March 31, 2026 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
530,663 |
|
|
$ |
438,675 |
|
Accounts receivable, net of allowance for doubtful accounts: July 5, 2026 - |
|
|
454,811 |
|
|
|
506,072 |
|
Inventories, net |
|
|
738,654 |
|
|
|
724,690 |
|
Prepaid and other current assets |
|
|
405,918 |
|
|
|
472,373 |
|
Total current assets |
|
|
2,130,046 |
|
|
|
2,141,810 |
|
Property, plant, and equipment, net |
|
|
572,407 |
|
|
|
593,002 |
|
Goodwill |
|
|
748,214 |
|
|
|
752,424 |
|
Other intangible assets, net |
|
|
334,236 |
|
|
|
342,898 |
|
Deferred taxes |
|
|
68,413 |
|
|
|
69,008 |
|
Other assets |
|
|
103,619 |
|
|
|
104,182 |
|
Total assets |
|
$ |
3,956,935 |
|
|
$ |
4,003,324 |
|
Liabilities and Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Short-term debt |
|
$ |
28,667 |
|
|
$ |
29,201 |
|
Accounts payable |
|
|
335,158 |
|
|
|
354,190 |
|
Accrued expenses |
|
|
398,148 |
|
|
|
420,647 |
|
Total current liabilities |
|
|
761,973 |
|
|
|
804,038 |
|
Long-term debt, net of unamortized debt issuance costs |
|
|
1,010,265 |
|
|
|
1,079,782 |
|
Deferred taxes |
|
|
13,897 |
|
|
|
13,909 |
|
Other liabilities |
|
|
197,253 |
|
|
|
196,723 |
|
Total liabilities |
|
|
1,983,388 |
|
|
|
2,094,452 |
|
Commitments and contingencies |
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Preferred Stock, |
|
|
— |
|
|
|
— |
|
Common Stock, |
|
|
576 |
|
|
|
576 |
|
Additional paid-in capital |
|
|
748,541 |
|
|
|
734,922 |
|
Treasury stock at cost, 21,305,909 shares held as of July 5, 2026 and 21,089,229 shares held as of March 31, 2026 |
|
|
(1,411,797 |
) |
|
|
(1,361,585 |
) |
Retained earnings |
|
|
2,850,285 |
|
|
|
2,743,635 |
|
Accumulated other comprehensive loss |
|
|
(217,705 |
) |
|
|
(212,264 |
) |
Total EnerSys stockholders’ equity |
|
|
1,969,900 |
|
|
|
1,905,284 |
|
Nonredeemable noncontrolling interests |
|
|
3,647 |
|
|
|
3,588 |
|
Total equity |
|
|
1,973,547 |
|
|
|
1,908,872 |
|
Total liabilities and equity |
|
$ |
3,956,935 |
|
|
$ |
4,003,324 |
|
EnerSys Consolidated Condensed Statements of Cash Flows (Unaudited) (In Thousands) |
||||||||
|
|
Quarter ended |
||||||
|
|
July 5, 2026 |
|
June 29, 2025 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net earnings |
|
$ |
116,450 |
|
|
$ |
57,458 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
30,495 |
|
|
|
26,894 |
|
Write-off of assets relating to exit activities |
|
|
5,748 |
|
|
|
(626 |
) |
Derivatives not designated in hedging relationships: |
|
|
|
|
||||
Net losses (gains) |
|
|
404 |
|
|
|
(354 |
) |
Cash (settlements) proceeds |
|
|
1,052 |
|
|
|
2,536 |
|
Provision for doubtful accounts |
|
|
2,292 |
|
|
|
(203 |
) |
Deferred income taxes |
|
|
(431 |
) |
|
|
(42 |
) |
Non-cash interest expense |
|
|
483 |
|
|
|
479 |
|
Stock-based compensation |
|
|
7,778 |
|
|
|
17,601 |
|
Loss (gain) on disposal of property, plant, and equipment |
|
|
1,196 |
|
|
|
34 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
48,220 |
|
|
|
50,218 |
|
Inventories |
|
|
(14,483 |
) |
|
|
(33,490 |
) |
Prepaid and other current assets |
|
|
88,947 |
|
|
|
(38,867 |
) |
Other assets |
|
|
342 |
|
|
|
179 |
|
Accounts payable |
|
|
(22,515 |
) |
|
|
(43,049 |
) |
Accrued expenses |
|
|
(37,984 |
) |
|
|
(38,448 |
) |
Other liabilities |
|
|
2,167 |
|
|
|
648 |
|
Net cash provided by (used in) operating activities |
|
|
230,161 |
|
|
|
968 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures |
|
|
(12,422 |
) |
|
|
(33,019 |
) |
Purchase of business |
|
|
— |
|
|
|
(12,558 |
) |
Proceeds from disposal of property, plant, and equipment |
|
|
80 |
|
|
|
4,163 |
|
Net cash (used in) provided by investing activities |
|
|
(12,342 |
) |
|
|
(41,414 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Net (repayments) borrowings on short-term debt |
|
|
8 |
|
|
|
(209 |
) |
Proceeds from Second Amended Revolver borrowings |
|
|
120,000 |
|
|
|
231,700 |
|
Repayments of Second Amended Revolver borrowings |
|
|
(190,000 |
) |
|
|
(46,700 |
) |
Options proceeds, net |
|
|
5,859 |
|
|
|
||
Purchase of treasury stock |
|
|
(49,958 |
) |
|
|
(150,034 |
) |
Dividends paid to stockholders |
|
|
(9,555 |
) |
|
|
(9,107 |
) |
Other |
|
|
(139 |
) |
|
|
314 |
|
Net cash provided by (used in) financing activities |
|
|
(123,785 |
) |
|
|
25,964 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(2,046 |
) |
|
|
18,013 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
91,988 |
|
|
|
3,531 |
|
Cash and cash equivalents at beginning of period |
|
|
438,675 |
|
|
|
343,131 |
|
Cash and cash equivalents at end of period |
|
$ |
530,663 |
|
|
$ |
346,662 |
|
Reconciliations of GAAP to Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with
Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances. For those items which are non-taxable, the tax expense (benefit) is calculated at
EnerSys does not provide a quantitative reconciliation of the Company’s projected range for adjusted diluted EPS and adjusted diluted EPS excluding (ex) IRC 45X benefit for the second quarter of fiscal 2027 to diluted earnings per share, which is the most directly comparable GAAP measure, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. EnerSys' adjusted diluted EPS and adjusted diluted EPS ex IRC 45X benefit guidance for the second quarter of fiscal 2027 excludes certain items, including but not limited to certain non-cash, large and/or unpredictable charges and benefits, charges from restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles, stock-based compensation, acquisition and disposition activities, legal judgments, settlements, or other matters, and tax positions, that are inherently uncertain and difficult to predict, can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities. Due to the uncertainty of the occurrence or timing of these future excluded items, management cannot accurately forecast many of these items for internal use and therefore cannot create a quantitative adjusted diluted EPS and adjusted diluted EPS excluding (ex) IRC 45X benefit for the first quarter of fiscal 2027 to diluted earnings per share reconciliation without unreasonable efforts.
These non-GAAP disclosures have limitations as an analytical tool, should not be viewed as a substitute for operating earnings, Net earnings or net income determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding the Company's ongoing operating results. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to Net earnings determined in accordance with GAAP.
A reconciliation of non-GAAP adjusted operating earnings is set forth in the table below, providing a reconciliation of non-GAAP adjusted operating earnings to the Company’s reported operating results for its business segments. Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRC 45X Advanced Manufacturing Production Credits. Also, included are start up costs for exploration of a new lithium plant. Beginning in the current fiscal year, the Company excludes all stock-based compensation expense from adjusted operating earnings. Prior-period adjusted measures have been recast to conform to the current-period presentation.
Business Segment Operating Results
|
Quarter ended |
|||||||||||||||||
|
($ millions) |
|||||||||||||||||
|
July 5, 2026 |
|||||||||||||||||
|
Network & Infrastructure Solutions |
|
Industrial Mobility Solutions |
|
Precision Power Solutions |
|
Corporate and other unallocated |
|
Total |
|||||||||
Net Sales |
$ |
428.3 |
|
|
$ |
406.8 |
|
|
$ |
100.5 |
|
|
$ |
— |
|
$ |
935.6 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Earnings |
|
30.2 |
|
|
|
29.0 |
|
|
|
14.4 |
|
|
|
77.8 |
|
$ |
151.4 |
|
Restructuring and other exit charges |
|
6.2 |
|
|
|
4.5 |
|
|
|
— |
|
|
|
— |
|
|
10.7 |
|
Amortization of intangible assets |
|
5.8 |
|
|
|
0.4 |
|
|
|
2.1 |
|
|
|
— |
|
|
8.3 |
|
Stock based compensation |
|
2.8 |
|
|
|
3.8 |
|
|
|
1.2 |
|
|
|
— |
|
|
7.8 |
|
Other |
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
|
0.6 |
|
Adjusted Operating Earnings |
$ |
45.0 |
|
|
$ |
37.7 |
|
|
$ |
18.3 |
|
|
$ |
77.8 |
|
$ |
178.8 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Margin |
|
7.0 |
% |
|
|
7.1 |
% |
|
|
14.3 |
% |
|
|
NM |
|
|
16.2 |
% |
Adjusted Operating Margin |
|
10.5 |
% |
|
|
9.3 |
% |
|
|
18.2 |
% |
|
|
NM |
|
|
19.1 |
% |
|
Quarter ended |
|||||||||||||||||
|
($ millions) |
|||||||||||||||||
|
June 29, 2025 |
|||||||||||||||||
|
Network & Infrastructure Solutions |
|
Industrial Mobility Solutions |
|
Precision Power Solutions |
|
Corporate and other unallocated |
|
Total |
|||||||||
Net Sales |
$ |
391.4 |
|
|
$ |
420.4 |
|
|
$ |
81.2 |
|
|
$ |
— |
|
$ |
893.0 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Earnings |
|
14.0 |
|
|
|
27.4 |
|
|
|
8.0 |
|
|
|
37.1 |
|
$ |
86.5 |
|
Restructuring and other exit charges |
|
1.1 |
|
|
|
4.8 |
|
|
|
— |
|
|
|
— |
|
|
5.9 |
|
Stock based compensation |
|
8.0 |
|
|
|
8.7 |
|
|
|
0.9 |
|
|
|
— |
|
|
17.6 |
|
Amortization of intangible assets |
|
5.9 |
|
|
|
0.4 |
|
|
|
2.1 |
|
|
|
— |
|
|
8.4 |
|
Other |
|
0.9 |
|
|
|
0.8 |
|
|
|
1.4 |
|
|
|
— |
|
|
3.1 |
|
Adjusted Operating Earnings |
$ |
29.9 |
|
|
$ |
42.1 |
|
|
$ |
12.4 |
|
|
$ |
37.1 |
|
$ |
121.5 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Margin |
|
3.6 |
% |
|
|
6.5 |
% |
|
|
9.8 |
% |
|
|
NM |
|
|
9.7 |
% |
Adjusted Operating Margin |
|
7.7 |
% |
|
|
10.0 |
% |
|
|
15.2 |
% |
|
|
NM |
|
|
13.6 |
% |
Increase (Decrease) as a % from prior year quarter |
Network & Infrastructure Solutions |
|
Industrial Mobility Solutions |
|
Precision Power Solutions |
|
Corporate and other unallocated |
|
Total |
||||
Net Sales |
9.4 |
% |
|
(3.2 |
)% |
|
23.6 |
% |
|
NM |
|
4.8 |
% |
Operating Earnings |
NM |
|
|
6.1 |
|
|
80.5 |
|
|
NM |
|
75.1 |
|
Adjusted Operating Earnings |
50.4 |
|
|
(10.5 |
) |
|
47.7 |
|
|
NM |
|
47.2 |
|
NM = Not Meaningful |
|||||||||||||
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited)
The table below presents a reconciliation of Net Earnings to EBITDA and Adjusted EBITDA. Beginning in the current fiscal year, the Company excludes all stock-based compensation expense from Adjusted EBITDA. Prior-period adjusted measures have been recast to conform to the current-period presentation.:
|
Quarter ended |
||||
|
($ millions) |
||||
|
July 5, 2026 |
|
June 29, 2025 |
||
Net Earnings |
|
116.5 |
|
$ |
57.5 |
Depreciation |
|
22.2 |
|
|
18.5 |
Amortization |
|
8.3 |
|
|
8.4 |
Interest |
|
10.6 |
|
|
11.3 |
Income Taxes |
|
18.5 |
|
|
8.2 |
EBITDA |
|
176.1 |
|
|
103.9 |
Non-GAAP adjustments |
|
19.7 |
|
|
26.6 |
Adjusted EBITDA |
$ |
195.8 |
|
$ |
130.5 |
The following table provides the non-GAAP adjustments shown in the reconciliation above:
|
Quarter ended |
||||
|
($ millions) |
||||
|
July 5, 2026 |
|
June 29, 2025 |
||
Restructuring and other exit charges |
|
10.7 |
|
|
5.9 |
Stock based compensation |
|
7.8 |
|
|
17.6 |
Other |
|
1.2 |
|
|
3.1 |
Non-GAAP adjustments |
$ |
19.7 |
|
$ |
26.6 |
The table below presents a reconciliation of Gross Profit and Gross Margin to Gross Profit excluding (ex) IRC 45X and Gross Margin excluding (ex) IRC 45X:
|
Quarter ended |
||||||
|
($ millions) |
||||||
|
July 5, 2026 |
|
June 29, 2025 |
||||
Gross Profit |
$ |
313.4 |
|
|
$ |
253.2 |
|
IRC 45X Benefit |
|
47.2 |
|
|
|
38.1 |
|
Gross Profit ex 45X |
|
266.2 |
|
|
|
215.1 |
|
|
|
|
|
||||
Gross Margin |
|
33.5 |
% |
|
|
28.4 |
% |
IRC 45X Benefit |
|
5.0 |
% |
|
|
4.3 |
% |
Gross Margin ex 45X |
|
28.5 |
% |
|
|
24.1 |
% |
The table below presents a reconciliation of Operating Cash Flow to Free Cash Flow and Free Cash Flow Conversion percentages:
|
Quarter ended |
||||||
|
($ millions) |
||||||
|
July 5, 2026 |
|
June 29, 2025 |
||||
Net cash provided by (used in) operating activities |
$ |
230.2 |
|
|
$ |
1.0 |
|
Less Capital Expenditures |
|
(12.4 |
) |
|
|
(33.0 |
) |
Free Cash Flow |
|
217.8 |
|
|
|
(32.1 |
) |
|
Quarter ended |
||||||
|
($ millions) |
||||||
|
July 5, 2026 |
|
June 29, 2025 |
||||
Net cash provided by (used in) operating activities |
$ |
230.2 |
|
|
$ |
1.0 |
|
Net earnings |
|
116.5 |
|
|
|
57.5 |
|
Operating cash flow conversion % |
|
197.6 |
% |
|
|
1.7 |
% |
|
|
|
|
||||
Free Cash Flow |
|
217.8 |
|
|
|
(32.1 |
) |
Net earnings |
|
116.5 |
|
|
|
57.5 |
|
Free cash flow conversion % |
|
187.0 |
% |
|
|
(55.8 |
)% |
The following table provides a reconciliation of Net earnings to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) per credit agreement for July 5, 2026 and June 29, 2025 to calculate our net leverage ratio, in connection with the Fourth Amended Credit Facility:
|
|
Last twelve months |
||||
|
|
July 5, 2026 |
|
June 29, 2025 |
||
|
|
(in millions, except ratios) |
||||
Net earnings as reported |
|
$ |
352.5 |
|
$ |
351.1 |
Add back: |
|
|
|
|
||
Depreciation and amortization |
|
|
117.2 |
|
$ |
104.2 |
Interest expense |
|
|
47.6 |
|
$ |
49.5 |
Income tax expense |
|
|
66.4 |
|
|
43.8 |
EBITDA (non-GAAP) |
|
$ |
583.7 |
|
$ |
548.6 |
Adjustments per credit agreement definitions(1) |
|
|
87.9 |
|
|
67.4 |
Adjusted EBITDA (non-GAAP) per credit agreement(1) |
|
$ |
671.6 |
|
|
616.0 |
Total net debt(2) |
|
$ |
521.5 |
|
|
963.7 |
Leverage ratios: |
|
|
|
|
||
Total net debt/credit adjusted EBITDA ratio |
|
0.8 X |
|
1.6 X |
||
(1) |
The |
|
(2) |
Debt includes finance lease obligations and letters of credit and is net of all |
Included below is a reconciliation of historical non-GAAP adjusted Net earnings to reported amounts. Non-GAAP adjusted operating earnings and historical Net earnings are calculated excluding restructuring and other highlighted charges and credits. Beginning in the current fiscal year, the Company excludes all stock-based compensation expense and related tax effects from adjusted net earnings. Prior-period adjusted measures have been recast to conform to the current-period presentation. The following tables provide additional information regarding certain non-GAAP measures:
|
Quarter ended |
|
||||
|
(in millions, except share and per share amounts) |
|
||||
|
July 5, 2026 |
|
June 29, 2025 |
|
||
Net earnings reconciliation |
|
|
|
|
||
As reported Net Earnings |
$ |
116.5 |
|
$ |
57.5 |
|
Non-GAAP adjustments: |
|
|
|
|
||
Restructuring and other exit charges |
|
10.7 |
(2) |
|
5.9 |
(1) |
Amortization of identified intangible assets |
|
8.3 |
(3) |
|
8.4 |
(2) |
Stock based compensation |
|
7.8 |
(5) |
|
17.6 |
(3) |
Other |
|
0.6 |
(6) |
|
3.1 |
(4) |
Other income tax expense items |
|
0.6 |
|
|
— |
|
Income tax effect of above non-GAAP adjustments |
|
(6.7) |
|
|
(4.9) |
|
Non-GAAP adjusted Net earnings |
$ |
137.7 |
|
$ |
87.6 |
|
|
|
|
|
|
||
Net Earnings excluding (ex) IRC 45X benefit |
|
|
|
|
||
As Reported Net Earnings |
$ |
116.5 |
|
$ |
57.5 |
|
IRC 45X Benefit |
|
47.2 |
|
|
38.1 |
|
Reported Net Earnings excluding (ex) IRC 45X benefit |
$ |
69.3 |
|
$ |
19.4 |
|
|
|
|
|
|
||
Non-GAAP adjusted Net Earnings excluding (ex) IRC 45X benefit |
|
|
|
|
||
Non-GAAP Adjusted Net Earnings |
$ |
137.7 |
|
$ |
87.6 |
|
IRC 45X Benefit |
|
47.2 |
|
|
38.1 |
|
Non-GAAP adjusted Net Earnings excluding (ex) IRC 45X benefit |
$ |
90.5 |
|
$ |
49.5 |
|
|
|
|
|
|
||
Outstanding shares used in per share calculations |
|
|
|
|
||
Basic |
|
36,467,526 |
|
|
38,798,263 |
|
Diluted |
|
37,626,671 |
|
|
39,295,773 |
|
|
|
|
|
|
||
Reported Net earnings (Loss) per share: |
|
|
|
|
||
Basic |
$ |
3.19 |
|
$ |
1.48 |
|
Diluted |
$ |
3.09 |
|
$ |
1.46 |
|
Dividends per common share |
$ |
0.2625 |
|
$ |
0.24 |
|
|
|
|
|
|
||
Non-GAAP adjusted Net earnings per share: |
|
|
|
|
||
Basic |
$ |
3.78 |
|
$ |
2.26 |
|
Diluted |
$ |
3.66 |
|
$ |
2.23 |
|
|
|
|
|
|
||
Reported Net Earnings (Loss) per share excluding (ex) IRC 45X benefit |
|
|
|
|
||
Basic |
$ |
1.90 |
|
$ |
0.50 |
|
Diluted |
$ |
1.84 |
|
$ |
0.49 |
|
|
|
|
|
|
||
Non-GAAP adjusted Net Earnings (Loss) per share excluding (ex) IRC 45X benefit |
|
|
|
|
||
Basic |
$ |
2.48 |
|
$ |
1.28 |
|
Diluted |
$ |
2.41 |
|
$ |
1.26 |
|
The following table provides the line of business allocation of the non-GAAP adjustments of items relating operating earnings (that are allocated to lines of business) shown in the reconciliation above:
|
|
Quarter ended |
||||
|
|
($ millions) |
||||
|
|
July 5, 2026 |
|
June 29, 2025 |
||
|
|
Pre-tax |
|
Pre-tax |
||
(1) Restructuring and other exit charges - Network & Infrastructure Solutions |
|
|
6.2 |
|
|
1.1 |
(1) Restructuring and other exit charges - Industrial Mobility Solutions |
|
|
4.5 |
|
|
4.8 |
(2) Amortization of identified intangible assets - Network & Infrastructure Solutions |
|
|
5.8 |
|
|
5.9 |
(2) Amortization of identified intangible assets - Industrial Mobility Solutions |
|
|
0.4 |
|
|
0.4 |
(2) Amortization of identified intangible assets - Precision Power Solutions |
|
|
2.1 |
|
|
2.1 |
(3) Stock Compensation Expense - Network & Infrastructure Solutions |
|
|
2.8 |
|
|
8.0 |
(3) Stock Compensation Expense - Industrial Mobility Solutions |
|
|
3.8 |
|
|
8.7 |
(3) Stock Compensation Expense - Precision Power Solutions |
|
|
1.2 |
|
|
0.9 |
(4) Other - Network & Infrastructure Solutions |
|
|
— |
|
|
0.9 |
(4) Other - Industrial Mobility Solutions |
|
|
— |
|
|
0.8 |
(4) Other - Precision Power Solutions |
|
|
0.6 |
|
|
1.4 |
Total Non-GAAP adjustments |
|
$ |
27.4 |
|
$ |
35.0 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260812119400/en/
Lisa Hartman Langell
Vice President, Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
Source: EnerSys