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Yahoo
14 hours ago
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From EnerSys's Q2 Earnings Call
EnerSys delivered second quarter results that were well received by the market, as management pointed to contributions from recent acquisitions, operational restructuring, and resilient demand in key end markets. CEO Shawn O'Connell described the EnerGize strategic framework as central to recent progress, citing early recovery in U.S. communications and data center deployments. Management acknowledged that volume softness, particularly in transportation and forklift segments, was primarily driven by tariff-related uncertainty, but highlighted progress in shifting to more agile operating models and product mixes. Executive Vice President and CFO Andrea Funk noted, 'We expect new lift truck demand to improve, though Q2 will remain impacted as customers continue to navigate this trade uncertainty.' Is now the time to buy ENS? Find out in our full research report (it's free). EnerSys (ENS) Q2 CY2025 Highlights: Revenue: $893 million vs analyst estimates of $848.1 million (4.7% year-on-year growth, 5.3% beat) Adjusted EPS: $2.08 vs analyst estimates of $2.05 (1.3% beat) Adjusted EBITDA: $123.3 million vs analyst estimates of $127.6 million (13.8% margin, 3.4% miss) Revenue Guidance for Q3 CY2025 is $890 million at the midpoint, below analyst estimates of $901.1 million Adjusted EPS guidance for Q3 CY2025 is $2.38 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 9.7%, down from 10.7% in the same quarter last year Sales Volumes fell 1% year on year (-3% in the same quarter last year) Market Capitalization: $3.69 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions From EnerSys's Q2 Earnings Call Alfred Shopland Moore (ROTH Capital): Asked about the pace and sustainability of the recovery in communications. CEO Shawn O'Connell highlighted that broadband and telecom upgrades are underway, with DOCSIS 4.0 rollouts requiring more power and driving incremental demand. Noah Duke Kaye (Oppenheimer & Co): Inquired about the margin uplift from cost savings and segment mix. CFO Andrea Funk explained $80 million in savings should yield significant margin expansion, but emphasized these changes are strategic rather than just cost-driven. Brian Paul Drab (William Blair): Questioned the intentions behind the large share buyback authorization. O'Connell clarified that the buyback is opportunistic and does not signal a shift away from investing in core and adjacent growth initiatives such as the lithium plant. Noah Duke Kaye (Oppenheimer & Co): Sought details on early wins from the new strategic framework. O'Connell cited supply chain specialization via centers of excellence and initial IoT-enabled battery shipments as examples of progress in efficiency and product development. Brian Paul Drab (William Blair): Asked about the expected gross margin progression for the next quarter. Funk noted all business lines should see margin improvement as policy uncertainty abates, with Motive Power closing the gap to prior year levels. Catalysts in Upcoming Quarters In the coming quarters, the StockStory team will monitor (1) the realization of targeted cost savings from EnerGize and the centers of excellence, (2) stabilization and recovery in tariff-sensitive Motive Power and transportation segments, and (3) the growth trajectory of specialty and defense offerings following recent acquisitions. Execution on new product launches and the company's ability to offset tariff headwinds will also be important indicators. EnerSys currently trades at $96.63, up from $91.27 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). The Best Stocks for High-Quality Investors Trump's April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
EnerSys Announces Participation in Wells Fargo Industrials & Materials Conference on June 11, 2025
READING, Pa., June 04, 2025--(BUSINESS WIRE)--EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, announced today that Executive Vice President and Chief Financial Officer, Andrea Funk, is scheduled to present on Wednesday, June 11th, at the 2025 Wells Fargo Industrials & Materials Conference, being held in Chicago, Illinois. The fireside chat will begin at 2:15 pm CT. A live audio webcast and archived replay will be available to the public via this link. The webcast and archived replay for this event will also be available on the Events and Presentations page of the Investor Relations section of the EnerSys website at About EnerSys EnerSys is a global leader in stored energy solutions for industrial applications and designs, manufactures, and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. The company goes to market through four lines of business: Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive power batteries and chargers are utilized in electric forklift trucks and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, portable power solutions for soldiers in the field, large over-the-road trucks, premium automotive, medical and security systems applications. New Ventures provides energy storage and management systems for various applications including demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. To learn more about EnerSys please visit View source version on Contacts Lisa HartmanVice President, Investor Relations and Corporate CommunicationsEnerSys610-236-4040E-mail: investorrelations@
Business Wire
04-06-2025
- Business
- Business Wire
EnerSys Announces Participation in Wells Fargo Industrials & Materials Conference on June 11, 2025
READING, Pa.--(BUSINESS WIRE)-- EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, announced today that Executive Vice President and Chief Financial Officer, Andrea Funk, is scheduled to present on Wednesday, June 11 th, at the 2025 Wells Fargo Industrials & Materials Conference, being held in Chicago, Illinois. The fireside chat will begin at 2:15 pm CT. A live audio webcast and archived replay will be available to the public via this link. The webcast and archived replay for this event will also be available on the Events and Presentations page of the Investor Relations section of the EnerSys website at About EnerSys EnerSys is a global leader in stored energy solutions for industrial applications and designs, manufactures, and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. The company goes to market through four lines of business: Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive power batteries and chargers are utilized in electric forklift trucks and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, portable power solutions for soldiers in the field, large over-the-road trucks, premium automotive, medical and security systems applications. New Ventures provides energy storage and management systems for various applications including demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. To learn more about EnerSys please visit
Yahoo
23-05-2025
- Business
- Yahoo
EnerSys (ENS) Q4 2025 Earnings Call Highlights: Record EPS and Revenue Growth Amid Tariff Challenges
Revenue: Fourth-quarter net sales of $975 million, up 7% from prior year. Full-Year Revenue: $3.6 billion, up 1% year over year. Adjusted Gross Margin: Q4 '25 adjusted gross margin of 31.2%, up 320 basis points versus prior year. Adjusted Operating Earnings: $152 million in Q4, up $43 million versus prior year. Adjusted EBITDA: $167 million in Q4, up $42 million versus prior year. Adjusted EPS: Q4 adjusted EPS of $2.97 per share, up 43% over prior year. Free Cash Flow: $105 million in Q4. Energy Systems Revenue: Increased 8% from prior year to $399 million in Q4. Motive Power Revenue: $392 million in Q4, flat compared to prior year. Specialty Revenue: Increased 21% from prior year to $178 million in Q4. Net Debt: $781 million as of March 31, 2025. Credit Agreement Leverage Ratio: 1.3 times EBITDA. Q1 Fiscal 2026 Guidance: Expected net sales of $830 million to $870 million with adjusted diluted EPS of $2.03 to $2.13 per share. Warning! GuruFocus has detected 3 Warning Sign with OLNCF. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EnerSys (NYSE:ENS) delivered a strong fourth quarter with a 7% revenue growth, marking the second highest revenue quarter in the company's history. The company achieved record adjusted diluted EPS of $1.86, excluding 45X benefits, showcasing strong earnings power. Motive Power margins reached record levels, with maintenance-free products accounting for a record 29% of segment sales. EnerSys (NYSE:ENS) saw significant growth in Energy Systems, particularly in data centers and a moderate recovery in communications. The Bren-Tronics acquisition contributed positively to the company's performance, particularly in the Aerospace and Defense markets. EnerSys (NYSE:ENS) faces near-term friction due to tariff-related disruptions, with a direct tariff exposure of approximately $92 million. The company anticipates some short-term headwinds from stranded tariffs and shifting customer order patterns. Motive Power orders were pressured in Q4, with a 14% decline in Motive Power Americas orders year-on-year. The company has temporarily paused full-year guidance due to uncertainty around reciprocal tariffs and macroeconomic dynamics. EnerSys (NYSE:ENS) is experiencing slower recovery in Class 8 truck OEM volumes, with ongoing macro uncertainty affecting transportation markets. Q: Can you explain the EPS growth in the Q1 guidance despite flat revenues? A: Shawn O'Connell, President and COO, explained that the EPS growth is driven by favorable price/mix and the accretive benefit from the Bren-Tronics acquisition. Andrea Funk, CFO, added that despite lower volumes in Motive Power, the EPS is expected to be flat year-over-year due to these factors, offsetting pressures from FX and stranded tariff costs. Q: Why is EnerSys pausing full-year guidance despite order recovery? A: Andrea Funk, CFO, stated that the pause in guidance is due to the uncertainty surrounding reciprocal tariff negotiations. David Shaffer, CEO, added that they want to ensure clarity on these tariffs before providing full-year guidance, as they could have both positive and negative impacts. Q: What is the status of the Section 45X tax refund, and are there any delays? A: Andrea Funk, CFO, mentioned that other companies have received their refunds, and EnerSys is experiencing a delay due to IRS staffing issues. They expect to receive the refund soon, with interest accruing in the meantime. Q: What are EnerSys' plans for inorganic growth given the current economic environment? A: Shawn O'Connell, President and COO, stated that EnerSys is well-positioned with a strong balance sheet to pursue acquisitions. They see opportunities in Aerospace and Defense and are looking for targets that fit their ROIC model, despite current market uncertainties. Q: Can you provide more details on the Energy Systems segment and potential network expansions? A: Shawn O'Connell, President and COO, noted that there is a recovery in network expansions, driven by the need to address technical debt and AI traffic processing. Investments are being made in upgrading macro sites and central offices, although it's not yet at the scale of past major build-outs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
EnerSys (ENS) Q4 2025 Earnings Call Highlights: Record EPS and Revenue Growth Amid Tariff Challenges
Revenue: Fourth-quarter net sales of $975 million, up 7% from prior year. Full-Year Revenue: $3.6 billion, up 1% year over year. Adjusted Gross Margin: Q4 '25 adjusted gross margin of 31.2%, up 320 basis points versus prior year. Adjusted Operating Earnings: $152 million in Q4, up $43 million versus prior year. Adjusted EBITDA: $167 million in Q4, up $42 million versus prior year. Adjusted EPS: Q4 adjusted EPS of $2.97 per share, up 43% over prior year. Free Cash Flow: $105 million in Q4. Energy Systems Revenue: Increased 8% from prior year to $399 million in Q4. Motive Power Revenue: $392 million in Q4, flat compared to prior year. Specialty Revenue: Increased 21% from prior year to $178 million in Q4. Net Debt: $781 million as of March 31, 2025. Credit Agreement Leverage Ratio: 1.3 times EBITDA. Q1 Fiscal 2026 Guidance: Expected net sales of $830 million to $870 million with adjusted diluted EPS of $2.03 to $2.13 per share. Warning! GuruFocus has detected 3 Warning Sign with OLNCF. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EnerSys (NYSE:ENS) delivered a strong fourth quarter with a 7% revenue growth, marking the second highest revenue quarter in the company's history. The company achieved record adjusted diluted EPS of $1.86, excluding 45X benefits, showcasing strong earnings power. Motive Power margins reached record levels, with maintenance-free products accounting for a record 29% of segment sales. EnerSys (NYSE:ENS) saw significant growth in Energy Systems, particularly in data centers and a moderate recovery in communications. The Bren-Tronics acquisition contributed positively to the company's performance, particularly in the Aerospace and Defense markets. EnerSys (NYSE:ENS) faces near-term friction due to tariff-related disruptions, with a direct tariff exposure of approximately $92 million. The company anticipates some short-term headwinds from stranded tariffs and shifting customer order patterns. Motive Power orders were pressured in Q4, with a 14% decline in Motive Power Americas orders year-on-year. The company has temporarily paused full-year guidance due to uncertainty around reciprocal tariffs and macroeconomic dynamics. EnerSys (NYSE:ENS) is experiencing slower recovery in Class 8 truck OEM volumes, with ongoing macro uncertainty affecting transportation markets. Q: Can you explain the EPS growth in the Q1 guidance despite flat revenues? A: Shawn O'Connell, President and COO, explained that the EPS growth is driven by favorable price/mix and the accretive benefit from the Bren-Tronics acquisition. Andrea Funk, CFO, added that despite lower volumes in Motive Power, the EPS is expected to be flat year-over-year due to these factors, offsetting pressures from FX and stranded tariff costs. Q: Why is EnerSys pausing full-year guidance despite order recovery? A: Andrea Funk, CFO, stated that the pause in guidance is due to the uncertainty surrounding reciprocal tariff negotiations. David Shaffer, CEO, added that they want to ensure clarity on these tariffs before providing full-year guidance, as they could have both positive and negative impacts. Q: What is the status of the Section 45X tax refund, and are there any delays? A: Andrea Funk, CFO, mentioned that other companies have received their refunds, and EnerSys is experiencing a delay due to IRS staffing issues. They expect to receive the refund soon, with interest accruing in the meantime. Q: What are EnerSys' plans for inorganic growth given the current economic environment? A: Shawn O'Connell, President and COO, stated that EnerSys is well-positioned with a strong balance sheet to pursue acquisitions. They see opportunities in Aerospace and Defense and are looking for targets that fit their ROIC model, despite current market uncertainties. Q: Can you provide more details on the Energy Systems segment and potential network expansions? A: Shawn O'Connell, President and COO, noted that there is a recovery in network expansions, driven by the need to address technical debt and AI traffic processing. Investments are being made in upgrading macro sites and central offices, although it's not yet at the scale of past major build-outs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
