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Globe and Mail
16-07-2025
- Business
- Globe and Mail
EnerSys Announces Date of First Quarter Fiscal 2026 Financial Results Release and Conference Call
EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, announced today that the Company will release its first quarter fiscal 2026 financial results for the period ended June 29, 2025, after the market close on Wednesday, August 6, 2025. The press release and slide presentation will be available in the Investor Relations section of the Company's website at The Company will host a conference call the following day at 9:00 AM (ET) Thursday, August 7, 2025, to review the results. Webcast and Conference Call Information A live broadcast as well as a replay of the call can be accessed directly through the webcast registration link or the Investor Relations section of the Company's 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
Time of India
12-06-2025
- Business
- Time of India
Global CCS investments to reach $80 billion in 5 years; capacity to quadruple by 2030: DNV
New Delhi: Global investment in carbon capture and storage (CCS) is projected to touch $80 billion over the next five years, with capture and storage capacity expected to quadruple by 2030, according to DNV's new report Energy Transition Outlook: CCS to 2050. CCS capacity is forecast to grow from 41 million tonnes of CO₂ per year (MtCO₂/yr) at present to 1,300 MtCO₂/yr in 2050, accounting for 6 per cent of global emissions. However, DNV said this level of deployment is only one-sixth of what is required to meet the global net zero targets under its 'Pathway to Net Zero Emissions'. 'Carbon capture and storage technologies are a necessity for ensuring that CO₂ emitted by fossil-fuel combustion is stopped from reaching the atmosphere and for keeping the goals of the Paris Agreement alive,' said Ditlev Engel, CEO, Energy Systems at DNV. 'DNV's first Energy Transition Outlook: CCS to 2050 report clearly shows that we are at a turning point in the development of this crucial technology.' The report found that while CCS has so far been limited to pilot-scale deployments, a steep rise in capacity in the global project pipeline signals a shift. Growth in the near term is being driven by North America and Europe, with natural gas processing remaining the dominant use case. Beyond 2030, CCS is expected to expand into hard-to-decarbonise sectors such as steel and cement production, which will collectively account for 41 per cent of annual CO₂ capture by mid-century. Carbon capture onboard maritime vessels is also projected to scale from the 2040s. Jamie Burrows, Global Segment Lead CCUS, Energy Systems at DNV, said, 'CCS is entering a pivotal decade and the scale of ambition and investment must increase dramatically. It remains essential for hard-to-decarbonize sectors like cement, steel, chemicals, and maritime transport. But as DNV's report shows, delays in reducing carbon dioxide emissions will place an even greater burden on carbon dioxide removal technologies.' The report estimates that average costs for CCS technologies will fall by 40 per cent by 2050. However, the deployment of CCS is expected to remain highly dependent on regulatory and policy support. DNV pointed out that recent political and budgetary shifts in several countries pose risks to the momentum of CCS growth. Europe is projected to surpass North America in CCS deployment due to stronger price signals and policy frameworks. The report also forecasts that carbon dioxide removal (CDR) will capture 330 MtCO₂ by 2050 — one-fourth of total captured emissions. Among CDR technologies, Bioenergy with Carbon Capture and Storage (BECCS) is expected to dominate, particularly in the power and manufacturing sectors using renewable biomass. In contrast, Direct Air Capture (DAC) is expected to remain costly at around $350 per tonne of CO₂ through 2050. However, DAC could still account for 32 MtCO₂ by 2040 and 84 MtCO₂ by 2050, supported by voluntary and compliance carbon markets. DNV concluded that while CCS and CDR will play essential roles in decarbonisation, significant scale-up is required beyond 2050, especially in nature-based solutions and negative emissions technologies.
Business Wire
21-05-2025
- Business
- Business Wire
EnerSys Reports Fourth Quarter Fiscal Year 2025 Results
READING, Pa.--(BUSINESS WIRE)-- EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, announced today results for its fourth quarter of fiscal 2025, which ended on March 31, 2025. "EnerSys ended Fiscal Year 2025 with a strong fourth quarter, demonstrating the earnings power of our balanced business," said David M. Shaffer, EnerSys Chief Executive Officer. "We delivered 7% revenue growth, our second-highest revenue quarter ever, and achieved record adjusted diluted EPS of $1.86 per share excluding 45X benefits, up $0.66 and 56%, and $2.97 including 45X benefits, +43%. Performance highlights include record Motive Power margins, significant margin expansion in Energy Systems and Specialty, and strong contributions from the Bren-Tronics acquisition." "Throughout Fiscal Year 2025, we executed our strategy even in a challenging environment. We expanded our share in the attractive and growing defense market; grew our higher margin maintenance-free offerings; reduced costs; optimized our manufacturing footprint; invested in high-speed, flexible domestic production capacity; and developed new product offerings; strengthening our foundation for future growth. As Shawn takes on the CEO role, I am confident that he will lead the company to continued success," concluded Shaffer. As previously announced, David Shaffer is retiring as Chief Executive Officer of EnerSys effective May 22, 2025 after 22 years of dedicated service. As part of a planned succession, the Board has named Shawn O'Connell, President and Chief Operating Officer, as successor. Mr. O'Connell will assume the role of President and Chief Executive Officer and will join EnerSys' Board of Directors on May 23, 2025. "Our fourth quarter performance reflects solid operational execution across the business," commented Shawn O'Connell, EnerSys President and Chief Operating Officer and incoming Chief Executive Officer. "Energy Systems saw growth in Data Center and continued signs of recovery in U.S. Communications. Motive Power generated 15% earnings growth with favorable price/mix, similar volumes to the prior year quarter and maintenance-free products reaching a record 29% of segment sales. Specialty benefited from sustained strength in the Aerospace and Defense market and out performance from Bren-Tronics." "As we manage tariff impacts, we are applying our proven and refined playbook—one that has successfully guided us through multiple economic cycles—and we are well-positioned to respond swiftly. We are proactively adjusting pricing, costs, working capital, supply chain and manufacturing to protect both volumes and profitability. Our confidence in the critical role our solutions play in the global market is unshaken by the short-term implications as we adjust our business to this new landscape." "Our products and services remain essential to the industries that drive the global economy—from resilient grids and communications networks to secure data centers and national security. Our long-term outlook remains positive. I want to thank Dave for his leadership and for positioning EnerSys for future success. I am confident in the strength of our business, the relevance of our solutions, and our ability to continue delivering value for our customers, communities, and shareholders," concluded O'Connell. (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) Adjusted Diluted EPS is a non-GAAP financial measure 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 Fourth Quarter Fiscal 2025 Net sales for the fourth quarter of fiscal 2025 were $974.8 million, an increase of 7.0% from the prior year fourth quarter net sales of $910.7 million, and within the range of the fourth quarter of fiscal 2025 guidance of $960 million to $1,000 million given on February 5, 2025. The increase compared to prior year's quarter was the result of a 4% increase in organic volume, a 4% increase from acquisitions, and a 1% increase in pricing, partially offset by a 2% decrease in foreign currency translation. Net earnings attributable to EnerSys stockholders ('Net earnings') for the fourth quarter of fiscal 2025 was $96.5 million, or $2.41 per diluted share, which included an unfavorable highlighted net of tax impact of $22.0 million, or $0.55 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts. Net earnings for the fourth quarter of fiscal 2024 were $60.9 million, or $1.48 per diluted share, which included an unfavorable highlighted net of tax impact of $46.7 million, or $1.15 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts. Excluding these highlighted items, adjusted Net earnings per diluted share for the fourth quarter of fiscal 2025, on a non-GAAP basis, were $2.97, compared to the guidance of $2.75 to $2.85 per diluted share for the fourth quarter given by the Company on February 5, 2025. These earnings compare to the prior year fourth quarter adjusted Net earnings of $2.08 per diluted share. 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, which includes tables reconciling GAAP and non-GAAP adjusted financial measures for the quarters ended March 31, 2025 and March 31, 2024. Fiscal Year 2025 Net sales for the twelve months of fiscal 2025 were $3,617.6 million, an increase of 1.0% from the prior year twelve months net sales of $3,581.8 million. This increase was due to a 2% increase from acquisitions, partially offset by a 1% decrease in foreign currency translation impact. Net earnings for the twelve months of fiscal 2025 was $363.7 million, or $8.99 per diluted share, which included an unfavorable highlighted net of tax impact of $46.7 million, or $1.16 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts. Net earnings for the twelve months of fiscal 2024 was $269.1 million, or $6.50 per diluted share, which included an unfavorable highlighted net of tax impact of $76.2 million, or $1.85 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts. Adjusted Net earnings per diluted share for the twelve months of fiscal 2025, on a non-GAAP basis, were $10.15. This compares to the prior year twelve months adjusted Net earnings of $8.35 per diluted share. 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. Quarterly Dividend The company announced today that its Board of Directors has declared a quarterly cash dividend of $0.24 per share of common stock payable on June 27, 2025, to holders of record as of June 13, 2025. Balance Sheet and Cash Flow As of March 31, 2025, cash and cash equivalents were $343.1 million and net debt was $781.1 million. The net leverage ratio at the end of the fourth quarter was 1.3 X, up from 1.0 X in the prior year period due to the impact of the Bren-Tronics acquisition. Capital expenditures during the fourth quarter were $30.2 million, up from $27.4 million in the prior year period, driven by investments in plant improvements. During the fourth quarter, cash from operating activities was $135.2 million and free cash flow was $105.0 million. The Company also returned approximately $49.5 million to shareholders through $40.0 million in share repurchases and $9.5 million through its quarterly dividend payment in the fourth quarter. First Quarter 2026 Outlook In the first quarter of fiscal 2026, EnerSys expects: Net sales in the range of $830M to $870M IRC 45X benefits to gross profit of $35M to $40M Adjusted diluted earnings per share in the range of $2.03 to $2.13 * "We remain confident in our ability to effectively manage our business in the evolving macro environment and deliver strong earnings performance," said Andrea Funk, EnerSys Chief Financial Officer. "Our fiscal first quarter 2026 guidance reflects typical seasonal volume softness in Motive Power and Transportation exacerbated by short-term macro dynamics. We also expect to absorb some short-term headwinds from stranded tariffs in the quarter." "Given the evolving policy environment and pacing of demand normalization, we are pausing full year quantitative guidance. That said, we believe Q1 will mark the low point of our fiscal year. We anticipate full-year adjusted operating earnings growth—excluding 45X benefits—to outpace revenue growth. We expect revenue will be bolstered by our customers' enthusiasm for our maintenance-free offerings, robust Aerospace and Defense and Data Center markets, and ongoing improvements in our Communications and Transportation businesses. In aggregate, we are on track towards fiscal year 2027 earnings targets outlined at our 2023 Investor Day with strong performance on adjusted operating margin, EBITDA and EPS and future upside potential from the reinvestment of our excess cash flow." "Despite near-term challenges, the market need for intelligent, resilient power solutions continues to grow. EnerSys is well-positioned for long-term success as we help our customers address critical energy management and workforce challenges. Coming off a record shattering Q4, we are confident in the earnings power of our business and are optimistic about our ability to continue to expand margins, grow revenue, and create long-term value for our shareholders," concluded Funk. *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 fourth quarter results at 9:00 AM (ET) Thursday, May 22, 2025. A live broadcast as well as a replay of the call can be accessed via or the Investor Relations section of the company's website at To join the live call, please register at A dial-in and unique PIN will be provided upon registration. 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 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, 2025. No undue reliance should be placed on any forward-looking statements. EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) March 31, 2025 March 31, 2024 Assets Current assets: Cash and cash equivalents $ 343,131 $ 333,324 Accounts receivable, net of allowance for doubtful accounts (2025–$8,675; 2024–$8,107) 597,942 524,725 Inventories, net 739,994 697,698 Prepaid and other current assets 408,747 226,949 Total current assets 2,089,814 1,782,696 Property, plant, and equipment, net 592,433 532,450 Goodwill 721,073 682,934 Other intangible assets, net 375,430 319,407 Deferred taxes 74,793 49,798 Other assets 117,705 98,721 Total assets $ 3,971,248 $ 3,466,006 Liabilities and Equity Current liabilities: Short-term debt $ 28,502 $ 30,444 Current portion of finance leases 265 237 Accounts payable 405,694 369,456 Accrued expenses 340,607 323,720 Total current liabilities 775,068 723,857 Long-term debt, net of unamortized debt issuance costs 1,083,541 801,965 Finance leases 592 647 Deferred taxes 17,641 30,583 Other liabilities 174,918 151,882 Total liabilities 2,051,760 1,708,934 Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at March 31, 2025 and at March 31, 2024 — — Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 56,839,590 shares issued and 39,192,061 shares outstanding at March 31, 2025; 56,363,924 shares issued and 40,271,936 shares outstanding at March 31, 2024 568 564 Additional paid-in capital 662,725 629,879 Treasury stock at cost, 17,647,529 shares held as of March 31, 2025 and 16,091,988 shares held as of March 31, 2024 (988,936 ) (835,827 ) Retained earnings 2,489,200 2,163,880 Contra equity - indemnification receivable — — Accumulated other comprehensive loss (247,479 ) (204,851 ) Total EnerSys stockholders' equity 1,916,078 1,753,645 Nonredeemable noncontrolling interests 3,410 3,427 Total equity 1,919,488 1,757,072 Total liabilities and equity $ 3,971,248 $ 3,466,006 Expand EnerSys Consolidated Condensed Statements of Cash Flows (Unaudited) (In Thousands) Fiscal year ended March 31, 2025 2024 2023 Cash flows from operating activities Net earnings $ 363,735 $ 269,096 $ 175,810 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 100,876 92,021 91,153 Write-off of assets relating to restructuring and other exit charges 1,973 24,229 8,920 Disposal of intangible asset 880 — — Loss on assets held for sale 4,634 13,619 480 Derivatives not designated in hedging relationships: Net losses (gains) (3,136 ) 846 (1,182 ) Cash proceeds (settlements) 826 (255 ) 470 Provision for doubtful accounts 3,239 1,873 (431 ) Deferred income taxes (31,925 ) (29,344 ) (15,236 ) Non-cash interest expense 1,927 2,450 1,964 Stock-based compensation 27,825 30,607 26,371 Gain on disposal of property, plant, and equipment 791 908 (113 ) Gain on pension settlement (1,548 ) — — Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable (81,795 ) 108,631 67,553 Inventories 1,343 75,633 (96,413 ) Prepaid and other current assets (220,003 ) (112,701 ) 23,689 Other assets (334 ) 6,027 (6,298 ) Accounts payable 36,569 (15,131 ) (4,236 ) Accrued expenses 54,388 (8,254 ) 5,747 Other liabilities 32 (3,226 ) 1,690 Net cash provided by (used in) operating activities 260,298 457,029 279,938 Cash flows from investing activities Capital expenditures (121,038 ) (86,437 ) (88,772 ) Purchase of businesses (206,374 ) (8,270 ) — Proceeds from disposal of property, plant, and equipment and intangible asset 1,870 2,228 586 Investment in Equity Securities (10,852 ) — — Proceeds from termination of net investment hedges — — 43,384 Net cash used in investing activities (336,394 ) (92,479 ) (44,802 ) Cash flows from financing activities Net borrowings (repayments) on short-term debt (259 ) (231 ) (21,719 ) Proceeds from Second Amended Revolver borrowings 650,000 182,500 310,500 Repayments of Second Amended Revolver borrowings (370,000 ) (427,500 ) (500,500 ) Proceeds from Amended 2017 Term Loan — — 300,000 Proceeds from 2032 Bonds — 300,000 — Repayments of 2023 Senior Notes — — (300,000 ) Repayments of Second and Third Amended Term Loan — (293,889 ) (5,215 ) Debt issuance costs — (4,061 ) (1,121 ) Finance lease obligations and other 483 1,169 1,110 Option proceeds, net 9,458 10,786 4,392 Payment of taxes related to net share settlement of equity awards (7,985 ) (9,166 ) (6,453 ) Purchase of treasury stock (153,961 ) (95,688 ) (22,907 ) Dividends paid to stockholders (37,466 ) (34,480 ) (28,537 ) Net cash (used in) provided by financing activities 90,270 (370,560 ) (270,450 ) Effect of exchange rate changes on cash and cash equivalents (4,367 ) (7,331 ) (20,509 ) Net (decrease) increase in cash and cash equivalents 9,807 (13,341 ) (55,823 ) Cash and cash equivalents at beginning of year 333,324 346,665 402,488 Cash and cash equivalents at end of year $ 343,131 $ 333,324 $ 346,665 Expand Reconciliations of GAAP to Non-GAAP Financial Measures This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles, ("GAAP"). EnerSys' management uses the non-GAAP measures 'adjusted Net earnings', 'adjusted Diluted EPS', "reported Net earnings without IRC 45X benefit", "Non-GAAP adjusted Net earnings without IRC 45X benefit", "reported Net earnings (loss) per share without IRC 45X benefit", "Non-GAAP adjusted Net earnings (loss) per share without IRC 45X benefit",'adjusted operating earnings', "adjusted gross profit", "adjusted gross margin", "EBITDA", 'adjusted EBITDA', "adjusted EBITDA per credit agreement", "net debt", "net leverage ratio", "free cash flow", and "adjusted free cash flow conversion" as applicable, in their analysis of the Company's performance. Adjusted Net earnings, adjusted gross profit, adjusted gross margin, and adjusted operating earnings measures, as used by EnerSys in past quarters and years, adjusts Net earnings, gross profit, gross margin, and operating earnings determined in accordance with GAAP to reflect changes in financial results associated with the Company's restructuring initiatives and other highlighted charges and income items. Reported Net earnings without IRC 45X benefit, non-GAAP adjusted Net earnings without IRC 45X benefit, reported Net earnings (loss) per share without IRC 45X benefit, and non-GAAP adjusted Net earnings (loss) per share without IRC 45X benefit, as used by EnerSys in past quarters and years, adjusted Net earnings, adjusted Net earnings, Net earnings (loss) per share, and adjusted Net earnings (loss) per share to reflect the financial impact of IRC 45X. Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our business strategies and for business planning purposes. We calculate adjusted EBITDA as net income before interest income, interest expense, other (income) expense net, provision (benefit) for income taxes, depreciation and amortization, further adjusted to exclude restructuring and exit activities, impairment of goodwill, indefinite-lived intangibles and other assets, acquisition activities and those charges and credits that are not directly related to operating unit performance. EBITDA is calculated as net income before interest income, interest expense, other (income) expense net, provision (benefit) for income taxes, depreciation and amortization. We define non-GAAP adjusted EBITDA per credit agreement as net earnings determined in accordance with GAAP for interest, taxes, depreciation and amortization, and certain charges or credits as permitted by our credit agreements, that were recorded during the periods presented. We define non-GAAP net debt as total debt, finance lease obligations and letters of credit, net of all cash and cash equivalents, as defined in the Fourth Amended Credit Facility on the balance sheet as of the end of the most recent fiscal quarter. We define non-GAAP net leverage ratio as non-GAAP net debt divided by last twelve months non-GAAP adjusted EBITDA per credit agreement. We define non-GAAP free cash flow as net cash provided by or used in operating activities less capital expenditures. We define non-GAAP adjusted free cash flow conversion as free cash flow divided by adjusted net earnings. Free cash flow and adjusted free cash flow conversion are used by investors, financial analysts, rating agencies and management to help evaluate the Company's ability to generate cash to pursue incremental opportunities aimed toward enhancing shareholder value. Management believes the presentation of these financial measures reflecting these non-GAAP adjustments provides important supplemental information in evaluating the operating results of the Company as distinct from results that include items that are not indicative of ongoing operating results and overall business performance; in particular, those charges that the Company incurs as a result of restructuring 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, such as significant legal proceedings, amortization of intangible assets, tax valuation allowance changes, withholding tax from repatriation of prior period earnings, and impacts of changes or reform to income tax laws. Because these charges are not incurred as a result of ongoing operations, or are incurred as a result of a potential or previous acquisition, they are not as helpful a measure of the performance of our underlying business, particularly in light of their unpredictable nature and are difficult to forecast. Although we exclude the amortization of purchased intangibles from these non-GAAP measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. 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 0%. EnerSys does not provide a quantitative reconciliation of the Company's projected range for adjusted diluted earnings per share for the first quarter and full year of fiscal 2026 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 earnings per share guidance for the first quarter and full year of fiscal 2026 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, 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 earnings per share for the first quarter and full year of fiscal 2026 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 IRA production tax credits. Also, included are start up costs for exploration of a new lithium plant as well as start-up operating expenses from the New Ventures operating segment. Quarter ended ($ millions) March 31, 2024 Energy Systems Motive Power Specialty Corporate and other Total Net Sales $ 369.4 $ 394.8 $ 146.5 $ — $ 910.7 Operating Earnings $ (4.9 ) $ 53.9 $ 6.7 $ 25.2 $ 80.9 Inventory adjustment relating to exit activities 1.0 — — — 1.0 Restructuring and other exit charges 3.8 3.7 1.0 — 8.5 Impairment of indefinite-lived intangibles 7.6 — — — 7.6 Amortization of intangible assets 6.0 0.2 0.7 — 6.9 Legal proceeding charge, net 3.7 — — — 3.7 Other 0.2 0.3 0.1 — 0.6 Adjusted Operating Earnings $ 17.4 $ 58.1 $ 8.5 $ 25.2 $ 109.2 Operating Margin (1.3 )% 13.7 % 4.6 % NM 8.9 % Adjusted Operating Margin 4.7 % 14.7 % 5.8 % NM 12.0 % Expand Increase (Decrease) as a % from prior year quarter Energy Systems Motive Power Specialty Corporate and other Total Net Sales 8.0 % (0.6 )% 21.4 % — % 7.0 % Operating Earnings NM 7.6 51.7 43.5 62.3 Adjusted Operating Earnings 98.4 14.5 79.1 43.5 39.6 NM = Not Meaningful Expand Twelve months ended ($ millions) March 31, 2025 Energy Systems Motive Power Specialty Corporate and other Total Net Sales $ 1,531.1 $ 1,484.1 $ 593.6 $ 8.8 $ 3,617.6 Operating Earnings $ 72.7 $ 220.1 $ 16.8 $ 155.1 $ 464.7 Inventory adjustment relating to exit activities and step up to fair value relating to recent acquisitions 0.3 — 3.3 — 3.6 Restructuring and other exit charges 6.0 5.7 2.7 — 14.4 Loss on assets held for sale — 4.6 — — 4.6 Amortization of intangible assets 23.6 0.7 7.5 — 31.8 Integration costs (0.1 ) — 4.1 — 4.0 Acquisition activity expense — — 2.5 — 2.5 Other 0.7 1.7 0.1 — 2.5 Adjusted Operating Earnings $ 103.2 $ 232.8 $ 37.0 $ 155.1 $ 528.1 Operating Margin 4.7 % 14.8 % 2.8 % NM 12.8 % Adjusted Operating Margin 6.7 % 15.7 % 6.2 % NM 14.6 % Expand Twelve months ended ($ millions) March 31, 2024 Energy Systems Motive Power Specialty Corporate and other Total Net Sales $ 1,590.0 $ 1,456.2 $ 535.6 $ — $ 3,581.8 Operating Earnings $ 15.5 $ 201.2 $ 17.6 $ 117.2 $ 351.5 Inventory adjustment relating to exit activities 17.1 — 3.1 — 20.2 Restructuring and other exit charges 8.9 11.6 7.6 — 28.1 Impairment of indefinite-lived intangibles 13.6 — — — 13.6 Amortization of intangible assets 24.5 0.7 2.8 — 28.0 Legal proceeding charge, net 3.7 — — — 3.7 Other 3.7 1.1 0.3 — 5.1 Adjusted Operating Earnings $ 87.0 $ 214.6 $ 31.4 $ 117.2 $ 450.2 Operating Margin 1.0 % 13.8 % 3.3 % NM 9.8 % Adjusted Operating Margin 5.5 % 14.7 % 5.9 % NM 12.6 % Expand Increase (Decrease) as a % from prior year Energy Systems Motive Power Specialty Corporate and other Total Net Sales (3.7 )% 1.9 % 10.8 % — % 1.0 % Operating Earnings NM 9.4 (4.9 ) 32.3 32.2 Adjusted Operating Earnings 18.7 8.4 17.8 32.3 17.3 Expand Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) The table below presents a reconciliation of Net Earnings to EBITDA and Adjusted EBITDA: Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Net Earnings 96.5 $ 60.9 $ 363.7 $ 269.1 Depreciation 18.2 16.8 69.1 64.0 Amortization 8.3 6.9 31.8 28.0 Interest 12.8 10.8 51.2 49.9 Income Taxes 19.8 5.7 42.8 23.1 EBITDA 155.6 101.1 558.6 434.1 Non-GAAP adjustments 11.3 23.4 30.0 72.7 Adjusted EBITDA $ 166.9 $ 124.5 $ 588.6 $ 506.8 Expand The following table provides the non-GAAP adjustments shown in the reconciliation above: Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Inventory adjustment relating to exit activities $ 0.6 $ 1.0 $ 0.6 $ 20.2 Inventory step up to fair value relating to recent acquisitions — — 3.0 — Restructuring and other exit charges 5.1 8.5 14.4 28.1 Impairment of indefinite-lived intangibles — 7.6 — 13.6 Loss on assets held for sale 4.6 — 4.6 — Legal proceedings charge, net — 3.7 — 3.7 Integration Costs 0.4 — 4.0 — Gain on Pension Settlement (1.6 ) — (1.6 ) — Acquisition expense — — $ 2.5 — Other 2.2 2.6 $ 2.5 7.1 Non-GAAP adjustments $ 11.3 $ 23.4 $ 30.0 $ 72.7 Expand The table below presents a reconciliation of Gross Profit and Gross Margin to Adjusted Gross Profit and Adjusted Gross Margin: Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Inventory adjustment relating to exit activities — 1.0 — 20.2 Inventory step up to fair value relating to recent acquisitions 0.7 — 3.7 — Adjusted Gross Profit 304.4 255.3 1,096.1 1,003.0 Gross Margin 31.2 % 27.9 % 30.2 % 27.4 % Adjusted Gross Margin 31.2 % 28.0 % 30.3 % 28.0 % Expand Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Net cash provided by (used in) operating activities $ 135.2 $ 136.8 $ 260.3 $ 457.0 Net earnings 96.5 60.9 363.7 269.1 Operating cash flow conversion % 140.1 % 224.6 % 71.6 % 169.8 % Free cash flow 105.0 109.4 139.3 370.6 Adjusted net earnings 118.6 85.2 410.4 345.3 Adjusted free cash flow conversion % 88.5 % 128.4 % 33.9 % 107.3 % Expand The following table provides a reconciliation of Net earnings to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) per credit agreement for March 31, 2025 and March 31, 2024 to calculate our net leverage ratio, in connection with the Fourth Amended Credit Facility: Last twelve months March 31, 2025 March 31, 2024 (in millions, except ratios) Add back: Depreciation and amortization 100.9 $ 92.0 Interest expense 51.1 $ 49.9 Income tax expense 42.8 23.1 EBITDA (non-GAAP) $ 558.5 $ 434.1 Adjustments per credit agreement definitions (1) 56.2 85.8 Adjusted EBITDA (non-GAAP) per credit agreement (1) $ 614.7 519.9 Total net debt (2) $ 781.1 511.1 Leverage ratios: Total net debt/credit adjusted EBITDA ratio 1.3 X 1.0 X Expand (1) The $56.2 million adjustment to EBITDA in the last twelve months ending March 31, 2025 primarily related to $27.8 million of non-cash stock compensation, $22.0 million of restructuring and other exit charges, impairment of indefinite-lived intangibles and write-down of other current assets of $5.5 million. The $85.8 million adjustment to EBITDA in the last twelve months ending March 31, 2024 primarily related to $30.6 million of non-cash stock compensation, $40.7 million of restructuring and other exit charges, impairment of indefinite-lived intangibles and write-down of other current assets of $13.6 million. (2) Debt includes finance lease obligations and letters of credit and is net of all U.S. cash and cash equivalents and foreign cash and investments, as defined in the Fourth Amended Credit Facility. In the last twelve months ending March 31, 2025 and March 31, 2024, the amounts deducted in the calculation of net debt were U.S. cash and cash equivalents and foreign cash investments of $343.1 million, and in fiscal 2024, were $333.3 million. Expand 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. The following tables provide additional information regarding certain non-GAAP measures: Quarter ended March 31, 2025 March 31, 2024 Net earnings reconciliation As reported Net Earnings $ 96.5 $ 60.9 Non-GAAP adjustments: Inventory adjustment relating to exit activities 0.6 (1) 1.0 (1) Restructuring and other exit charges 5.1 (2) 8.5 (2) Impairment of indefinite-lived intangibles — 7.6 (3) Loss on assets held for sale 4.6 (4) — Amortization of identified intangible assets 8.3 (5) 6.9 (5) Legal proceedings charge, net — 3.7 (6) Integration costs 0.4 (7) — Other 2.2 (8) 3.3 (8) Gain on pension settlement (1.6 ) — Income tax adjustment of benefit from tax law changes and litigation 2.2 — Swiss income tax goodwill expiration 2.2 — Income tax expense on intercompany sale of IP 2.5 — Income tax effect of above non-GAAP adjustments (4.4 ) (6.7 ) Non-GAAP adjusted Net earnings $ 118.6 $ 85.2 Net Earnings without IRC 45X As Reported Net Earnings $ 96.5 $ 60.9 IRC 45X Benefit 44.1 36.0 Reported Net Earnings without IRC 45X Benefit $ 52.4 $ 24.9 Non-GAAP adjusted Net Earnings without IRC 45X Non-GAAP Adjusted Net Earnings $ 118.6 $ 85.2 IRC 45X Benefit 44.1 36.0 Non-GAAP adjusted Net Earnings without IRC 45X Benefit $ 74.5 $ 49.2 Outstanding shares used in per share calculations Basic 39,369,190 40,365,995 Diluted 39,982,082 41,054,904 Reported Net earnings (Loss) per share: Basic $ 2.45 $ 1.51 Diluted $ 2.41 $ 1.48 Dividends per common share $ 0.24 $ 0.225 Non-GAAP adjusted Net earnings per share: Basic $ 3.01 $ 2.11 Diluted $ 2.97 $ 2.08 Reported Net Earnings (Loss) per share without IRC 45X benefit Basic $ 1.33 $ 0.62 Diluted $ 1.31 $ 0.61 Non-GAAP adjusted Net Earnings (Loss) per share without IRC 45X benefit Basic $ 1.89 $ 1.22 Diluted $ 1.86 $ 1.20 Expand 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) March 31, 2025 March 31, 2024 Pre-tax Pre-tax (1) Inventory adjustment relating to exit activities - Energy Systems $ 0.3 $ 1.0 (1) Inventory adjustment relating to exit activities - Motive Power $ — — (1) Inventory adjustment relating to exit activities - Specialty 0.3 — (2) Restructuring and other exit charges - Energy Systems 1.4 3.8 (2) Restructuring and other exit charges - Motive Power 2.2 3.7 (2) Restructuring and other exit charges - Specialty 1.5 1.0 (3) Impairment of indefinite-lived intangibles - Energy Systems — 7.6 (4) Loss on assets held for sale - Motive 4.6 — (5) Amortization of identified intangible assets - Energy Systems 5.8 6.0 (5) Amortization of identified intangible assets - Motive Power 0.1 0.2 (5) Amortization of identified intangible assets - Specialty 2.4 0.7 (6) Legal proceedings charge, net - Energy Systems — 3.7 (7) Integration costs - Energy Systems (0.3 ) — (7) Integration costs - Specialty 0.7 — (8) Other - Energy Systems 0.5 0.2 (8) Other - Motive Power 1.7 0.3 (8) Other - Specialty — 0.1 Total Non-GAAP adjustments $ 21.2 $ 28.3 Expand Twelve months ended (in millions, except share and per share amounts) March 31, 2025 March 31, 2024 Net Earnings reconciliation As reported Net Earnings $ 363.7 $ 269.1 Non-GAAP adjustments: Inventory adjustment relating to exit activities and step up to fair value relating to recent acquisitions 3.6 (1) 20.2 (1) Restructuring and other exit charges 14.4 (2) 28.1 (2) Impairment of indefinite-lived intangibles — 13.6 (3) Loss on assets held for sale 4.6 (4) — Amortization of identified intangible assets 31.8 (5) 28.0 (2) Acquisition activity expense 2.5 (6) — Legal proceedings charge, net — 3.7 (7) Integration costs 4.0 (8) — Other 2.5 (9) 7.8 (9) Gain on pension settlement (1.6 ) — Income tax benefit from tax law changes and litigation (4.6 ) — Swiss income tax goodwill expiration 2.2 — Income tax expense on intercompany sale of IP 2.5 — Income tax effect of above non-GAAP adjustments (15.2 ) (25.2 ) Non-GAAP adjusted Net Earnings $ 410.4 $ 345.3 Net Earnings without IRC 45X As Reported Net Earnings $ 363.7 $ 269.1 IRC 45X Benefit 184.6 136.4 Reported Net Earnings without IRC 45X Benefit $ 179.1 $ 132.7 Non-GAAP adjusted Net Earnings without IRC 45X Non-GAAP Adjusted Net Earnings $ 410.4 $ 345.3 IRC 45X Benefit 184.6 136.4 Non-GAAP adjusted Net Earnings without IRC 45X Benefit $ 225.8 $ 208.9 Outstanding shares used in per share calculations Basic 39,760,829 40,669,392 Diluted 40,438,579 41,371,439 Reported Net Earnings (Loss) per share: Basic $ 9.15 $ 6.62 Diluted $ 8.99 $ 6.50 Dividends per common share $ 0.945 $ 0.850 Non-GAAP adjusted Net Earnings per share: Basic $ 10.32 $ 8.49 Diluted $ 10.15 $ 8.35 Reported Net Earnings (Loss) per share without IRC 45X benefit Basic $ 4.50 $ 3.26 Diluted $ 4.43 $ 3.21 Non-GAAP adjusted Net Earnings (Loss) per share without IRC 45X benefit Basic $ 5.68 $ 5.14 Diluted $ 5.58 $ 5.05 Expand 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: Twelve months ended ($ millions) March 31, 2024 Pre-tax Pre-tax (1) Inventory adjustment relating to exit activities - Energy Systems 0.3 17.1 (1) Inventory adjustment relating to exit activities - Motive Power — — (1) Inventory adjustment relating to exit activities step up to fair value relating to recent acquisitions - Specialty 3.3 3.1 (2) Restructuring and other exit charges - Energy Systems 6.0 8.9 (2) Restructuring and other exit charges - Motive Power 5.7 11.6 (2) Restructuring and other exit charges - Specialty 2.7 7.6 (3) Impairment of indefinite-lived intangibles - Energy Systems — 13.6 (4) Loss on assets held for sale - Motive 4.6 — (5) Amortization of identified intangible assets - Energy Systems 23.6 24.5 (5) Amortization of identified intangible assets - Motive Power 0.7 0.7 (5) Amortization of identified intangible assets - Specialty 7.5 2.8 (6) Acquisition expense - Specialty 2.5 — (7) Legal proceedings charge, net - Energy Systems — 3.7 (8) Integration costs - Energy Systems (0.1 ) — (8) Integration costs - Specialty 4.1 — (9) Other - Energy Systems 0.7 3.7 (9) Other - Motive Power 1.7 1.1 (9) Other - Specialty 0.1 0.3 Total Non-GAAP adjustments $ 63.4 $ 98.7 Expand
Yahoo
21-05-2025
- Business
- Yahoo
EnerSys Reports Fourth Quarter Fiscal Year 2025 Results
Delivers Q4'25 Net Sales Up 7% and Diluted EPS of $2.41, +63% ($1.31, +115% Excluding IRC 45X Tax Credits) Fourth Quarter Fiscal 2025 Highlights(All comparisons against the fourth quarter of fiscal 2024 unless otherwise noted) Delivered second highest quarterly net sales of $975M, +7%, and +4% organic Energy Systems net sales +8% with operating margins of 6.8% and adjusted operating margins of 8.7%, +400bps Achieved GM of 31.2%, +320 bps, and GM ex 45X of 26.6%, +270 bps Realized diluted EPS of $2.41, +63%, and adjusted diluted EPS(1) of $2.97, +43%, a record $1.86 ex 45X Net leverage ratio(a) 1.3 X EBITDA on operating cash flow of $135M Full Year Fiscal 2025 Highlights(All comparisons against fiscal 2024 unless otherwise noted) Delivered net sales of $3.6B, +1% Achieved GM of 30.2% +280 bps, and GM ex 45X of 25.1%, +150 bps Realized record diluted EPS of $8.99, +38% and record adjusted diluted EPS of $10.15, +22%, a record $5.58 ex 45X +$0.53, +11% Returned $192M to shareholders through share repurchases and dividends READING, Pa., May 21, 2025--(BUSINESS WIRE)--EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, announced today results for its fourth quarter of fiscal 2025, which ended on March 31, 2025. "EnerSys ended Fiscal Year 2025 with a strong fourth quarter, demonstrating the earnings power of our balanced business," said David M. Shaffer, EnerSys Chief Executive Officer. "We delivered 7% revenue growth, our second-highest revenue quarter ever, and achieved record adjusted diluted EPS of $1.86 per share excluding 45X benefits, up $0.66 and 56%, and $2.97 including 45X benefits, +43%. Performance highlights include record Motive Power margins, significant margin expansion in Energy Systems and Specialty, and strong contributions from the Bren-Tronics acquisition." "Throughout Fiscal Year 2025, we executed our strategy even in a challenging environment. We expanded our share in the attractive and growing defense market; grew our higher margin maintenance-free offerings; reduced costs; optimized our manufacturing footprint; invested in high-speed, flexible domestic production capacity; and developed new product offerings; strengthening our foundation for future growth. As Shawn takes on the CEO role, I am confident that he will lead the company to continued success," concluded Shaffer. As previously announced, David Shaffer is retiring as Chief Executive Officer of EnerSys effective May 22, 2025 after 22 years of dedicated service. As part of a planned succession, the Board has named Shawn O'Connell, President and Chief Operating Officer, as successor. Mr. O'Connell will assume the role of President and Chief Executive Officer and will join EnerSys' Board of Directors on May 23, 2025. "Our fourth quarter performance reflects solid operational execution across the business," commented Shawn O'Connell, EnerSys President and Chief Operating Officer and incoming Chief Executive Officer. "Energy Systems saw growth in Data Center and continued signs of recovery in U.S. Communications. Motive Power generated 15% earnings growth with favorable price/mix, similar volumes to the prior year quarter and maintenance-free products reaching a record 29% of segment sales. Specialty benefited from sustained strength in the Aerospace and Defense market and out performance from Bren-Tronics." "As we manage tariff impacts, we are applying our proven and refined playbook—one that has successfully guided us through multiple economic cycles—and we are well-positioned to respond swiftly. We are proactively adjusting pricing, costs, working capital, supply chain and manufacturing to protect both volumes and profitability. Our confidence in the critical role our solutions play in the global market is unshaken by the short-term implications as we adjust our business to this new landscape." "Our products and services remain essential to the industries that drive the global economy—from resilient grids and communications networks to secure data centers and national security. Our long-term outlook remains positive. I want to thank Dave for his leadership and for positioning EnerSys for future success. I am confident in the strength of our business, the relevance of our solutions, and our ability to continue delivering value for our customers, communities, and shareholders," concluded O'Connell. Key Financial Results and Metrics Fourth quarter ended Twelve months ended In millions, except per share amounts March 31, 2025 March 31, 2024 Change March 31, 2025 March 31, 2024 Change Net Sales $ 974.8 $ 910.7 7.0 % $ 3,617.6 $ 3,581.8 1.0 % Diluted EPS (GAAP) $ 2.41 $ 1.48 $ 0.93 $ 8.99 $ 6.50 $ 2.49 Adjusted Diluted EPS (Non-GAAP)(1) $ 2.97 $ 2.08 $ 0.89 $ 10.15 $ 8.35 $ 1.80 Gross Profit (GAAP) $ 303.7 $ 254.3 $ 49.4 $ 1,092.4 $ 982.8 $ 109.6 Operating Earnings (GAAP) $ 131.3 $ 80.9 $ 50.4 $ 464.7 $ 351.5 $ 113.2 Adjusted Operating Earnings (Non-GAAP)(2) $ 152.5 $ 109.2 $ 43.3 $ 528.1 $ 450.2 $ 77.9 Net Earnings (GAAP) $ 96.5 $ 60.9 $ 35.6 $ 363.7 $ 269.1 $ 94.6 EBITDA (Non-GAAP)(3) $ 155.6 $ 101.1 $ 54.5 $ 558.6 $ 434.1 $ 124.5 Adjusted EBITDA (Non-GAAP)(3) $ 166.9 $ 124.5 $ 42.4 $ 588.6 $ 506.8 $ 81.8 Share Repurchases $ 40.0 $ 13.4 $ 26.6 $ 154.0 $ 95.7 $ 58.3 Dividend per share $ 0.24 $ 0.225 $ 0.02 $ 0.945 $ 0.85 $ 0.10 Total Capital Returned to Stockholders $ 49.5 $ 22.5 $ 27 $ 192.4 $ 130.3 $ 62.1 (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) Adjusted Diluted EPS is a non-GAAP financial measure 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 Fourth Quarter Fiscal 2025 Net sales for the fourth quarter of fiscal 2025 were $974.8 million, an increase of 7.0% from the prior year fourth quarter net sales of $910.7 million, and within the range of the fourth quarter of fiscal 2025 guidance of $960 million to $1,000 million given on February 5, 2025. The increase compared to prior year's quarter was the result of a 4% increase in organic volume, a 4% increase from acquisitions, and a 1% increase in pricing, partially offset by a 2% decrease in foreign currency translation. Net earnings attributable to EnerSys stockholders ("Net earnings") for the fourth quarter of fiscal 2025 was $96.5 million, or $2.41 per diluted share, which included an unfavorable highlighted net of tax impact of $22.0 million, or $0.55 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts. Net earnings for the fourth quarter of fiscal 2024 were $60.9 million, or $1.48 per diluted share, which included an unfavorable highlighted net of tax impact of $46.7 million, or $1.15 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts. Excluding these highlighted items, adjusted Net earnings per diluted share for the fourth quarter of fiscal 2025, on a non-GAAP basis, were $2.97, compared to the guidance of $2.75 to $2.85 per diluted share for the fourth quarter given by the Company on February 5, 2025. These earnings compare to the prior year fourth quarter adjusted Net earnings of $2.08 per diluted share. 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, which includes tables reconciling GAAP and non-GAAP adjusted financial measures for the quarters ended March 31, 2025 and March 31, 2024. Fiscal Year 2025 Net sales for the twelve months of fiscal 2025 were $3,617.6 million, an increase of 1.0% from the prior year twelve months net sales of $3,581.8 million. This increase was due to a 2% increase from acquisitions, partially offset by a 1% decrease in foreign currency translation impact. Net earnings for the twelve months of fiscal 2025 was $363.7 million, or $8.99 per diluted share, which included an unfavorable highlighted net of tax impact of $46.7 million, or $1.16 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts. Net earnings for the twelve months of fiscal 2024 was $269.1 million, or $6.50 per diluted share, which included an unfavorable highlighted net of tax impact of $76.2 million, or $1.85 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts. Adjusted Net earnings per diluted share for the twelve months of fiscal 2025, on a non-GAAP basis, were $10.15. This compares to the prior year twelve months adjusted Net earnings of $8.35 per diluted share. 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. Quarterly Dividend The company announced today that its Board of Directors has declared a quarterly cash dividend of $0.24 per share of common stock payable on June 27, 2025, to holders of record as of June 13, 2025. Balance Sheet and Cash Flow As of March 31, 2025, cash and cash equivalents were $343.1 million and net debt was $781.1 million. The net leverage ratio at the end of the fourth quarter was 1.3 X, up from 1.0 X in the prior year period due to the impact of the Bren-Tronics acquisition. Capital expenditures during the fourth quarter were $30.2 million, up from $27.4 million in the prior year period, driven by investments in plant improvements. During the fourth quarter, cash from operating activities was $135.2 million and free cash flow was $105.0 million. The Company also returned approximately $49.5 million to shareholders through $40.0 million in share repurchases and $9.5 million through its quarterly dividend payment in the fourth quarter. First Quarter 2026 Outlook In the first quarter of fiscal 2026, EnerSys expects: Net sales in the range of $830M to $870M IRC 45X benefits to gross profit of $35M to $40M Adjusted diluted earnings per share in the range of $2.03 to $2.13* "We remain confident in our ability to effectively manage our business in the evolving macro environment and deliver strong earnings performance," said Andrea Funk, EnerSys Chief Financial Officer. "Our fiscal first quarter 2026 guidance reflects typical seasonal volume softness in Motive Power and Transportation exacerbated by short-term macro dynamics. We also expect to absorb some short-term headwinds from stranded tariffs in the quarter." "Given the evolving policy environment and pacing of demand normalization, we are pausing full year quantitative guidance. That said, we believe Q1 will mark the low point of our fiscal year. We anticipate full-year adjusted operating earnings growth—excluding 45X benefits—to outpace revenue growth. We expect revenue will be bolstered by our customers' enthusiasm for our maintenance-free offerings, robust Aerospace and Defense and Data Center markets, and ongoing improvements in our Communications and Transportation businesses. In aggregate, we are on track towards fiscal year 2027 earnings targets outlined at our 2023 Investor Day with strong performance on adjusted operating margin, EBITDA and EPS and future upside potential from the reinvestment of our excess cash flow." "Despite near-term challenges, the market need for intelligent, resilient power solutions continues to grow. EnerSys is well-positioned for long-term success as we help our customers address critical energy management and workforce challenges. Coming off a record shattering Q4, we are confident in the earnings power of our business and are optimistic about our ability to continue to expand margins, grow revenue, and create long-term value for our shareholders," concluded Funk. *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 fourth quarter results at 9:00 AM (ET) Thursday, May 22, 2025. A live broadcast as well as a replay of the call can be accessed via or the Investor Relations section of the company's website at To join the live call, please register at A dial-in and unique PIN will be provided upon registration. 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 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, 2025. 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 Twelve months ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Net sales $ 974.8 $ 910.7 $ 3,617.6 $ 3,581.8 Gross profit 303.7 $ 254.3 $ 1,092.4 $ 982.8 Operating expenses 162.7 $ 157.3 $ 608.7 $ 589.6 Restructuring and other exit charges 5.1 $ 8.5 $ 14.4 $ 28.1 Impairment of indefinite-lived intangibles 0.0 $ 7.6 $ 0.0 $ 13.6 Loss on assets held for sale 4.6 $ 0.0 $ 4.6 $ 0.0 Operating earnings 131.3 $ 80.9 $ 464.7 $ 351.5 Earnings before income taxes 116.3 $ 66.6 $ 406.5 $ 292.2 Income tax expense 19.8 $ 5.7 $ 42.8 $ 23.1 Net earnings attributable to EnerSys stockholders $ 96.5 $ 60.9 $ 363.7 $ 269.1 Net reported earnings per common share attributable to EnerSys stockholders: Basic $ 2.45 $ 1.51 $ 9.15 $ 6.62 Diluted $ 2.41 $ 1.48 $ 8.99 $ 6.50 Dividends per common share $ 0.24 $ 0.225 $ 0.945 $ 0.850 Weighted-average number of common shares used in reported earnings per share calculations: Basic 39,369,190 40,365,995 39,760,829 40,669,392 Diluted 39,982,082 41,054,904 40,438,579 41,371,439 EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) March 31, 2025 March 31, 2024 Assets Current assets: Cash and cash equivalents $ 343,131 $ 333,324 Accounts receivable, net of allowance for doubtful accounts (2025–$8,675; 2024–$8,107) 597,942 524,725 Inventories, net 739,994 697,698 Prepaid and other current assets 408,747 226,949 Total current assets 2,089,814 1,782,696 Property, plant, and equipment, net 592,433 532,450 Goodwill 721,073 682,934 Other intangible assets, net 375,430 319,407 Deferred taxes 74,793 49,798 Other assets 117,705 98,721 Total assets $ 3,971,248 $ 3,466,006 Liabilities and Equity Current liabilities: Short-term debt $ 28,502 $ 30,444 Current portion of finance leases 265 237 Accounts payable 405,694 369,456 Accrued expenses 340,607 323,720 Total current liabilities 775,068 723,857 Long-term debt, net of unamortized debt issuance costs 1,083,541 801,965 Finance leases 592 647 Deferred taxes 17,641 30,583 Other liabilities 174,918 151,882 Total liabilities 2,051,760 1,708,934 Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at March 31, 2025 and at March 31, 2024 — — Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 56,839,590 shares issued and 39,192,061 shares outstanding at March 31, 2025; 56,363,924 shares issued and 40,271,936 shares outstanding at March 31, 2024 568 564 Additional paid-in capital 662,725 629,879 Treasury stock at cost, 17,647,529 shares held as of March 31, 2025 and 16,091,988 shares held as of March 31, 2024 (988,936 ) (835,827 ) Retained earnings 2,489,200 2,163,880 Contra equity - indemnification receivable — — Accumulated other comprehensive loss (247,479 ) (204,851 ) Total EnerSys stockholders' equity 1,916,078 1,753,645 Nonredeemable noncontrolling interests 3,410 3,427 Total equity 1,919,488 1,757,072 Total liabilities and equity $ 3,971,248 $ 3,466,006 EnerSys Consolidated Condensed Statements of Cash Flows (Unaudited) (In Thousands) Fiscal year ended March 31, 2025 2024 2023 Cash flows from operating activities Net earnings $ 363,735 $ 269,096 $ 175,810 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 100,876 92,021 91,153 Write-off of assets relating to restructuring and other exit charges 1,973 24,229 8,920 Disposal of intangible asset 880 — — Loss on assets held for sale 4,634 13,619 480 Derivatives not designated in hedging relationships: Net losses (gains) (3,136 ) 846 (1,182 ) Cash proceeds (settlements) 826 (255 ) 470 Provision for doubtful accounts 3,239 1,873 (431 ) Deferred income taxes (31,925 ) (29,344 ) (15,236 ) Non-cash interest expense 1,927 2,450 1,964 Stock-based compensation 27,825 30,607 26,371 Gain on disposal of property, plant, and equipment 791 908 (113 ) Gain on pension settlement (1,548 ) — — Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable (81,795 ) 108,631 ... 67,553 Inventories 1,343 75,633 (96,413 ) Prepaid and other current assets (220,003 ) (112,701 ) 23,689 Other assets (334 ) 6,027 (6,298 ) Accounts payable 36,569 (15,131 ) (4,236 ) Accrued expenses 54,388 (8,254 ) 5,747 Other liabilities 32 (3,226 ) 1,690 Net cash provided by (used in) operating activities 260,298 457,029 279,938 Cash flows from investing activities Capital expenditures (121,038 ) (86,437 ) (88,772 ) Purchase of businesses (206,374 ) (8,270 ) — Proceeds from disposal of property, plant, and equipment and intangible asset 1,870 2,228 586 Investment in Equity Securities (10,852 ) — — Proceeds from termination of net investment hedges — — 43,384 Net cash used in investing activities (336,394 ) (92,479 ) (44,802 ) Cash flows from financing activities Net borrowings (repayments) on short-term debt (259 ) (231 ) (21,719 ) Proceeds from Second Amended Revolver borrowings 650,000 182,500 310,500 Repayments of Second Amended Revolver borrowings (370,000 ) (427,500 ) (500,500 ) Proceeds from Amended 2017 Term Loan — — 300,000 Proceeds from 2032 Bonds — 300,000 — Repayments of 2023 Senior Notes — — (300,000 ) Repayments of Second and Third Amended Term Loan — (293,889 ) (5,215 ) Debt issuance costs — (4,061 ) (1,121 ) Finance lease obligations and other 483 1,169 1,110 Option proceeds, net 9,458 10,786 4,392 Payment of taxes related to net share settlement of equity awards (7,985 ) (9,166 ) (6,453 ) Purchase of treasury stock (153,961 ) (95,688 ) (22,907 ) Dividends paid to stockholders (37,466 ) (34,480 ) (28,537 ) Net cash (used in) provided by financing activities 90,270 (370,560 ) (270,450 ) Effect of exchange rate changes on cash and cash equivalents (4,367 ) (7,331 ) (20,509 ) Net (decrease) increase in cash and cash equivalents 9,807 (13,341 ) (55,823 ) Cash and cash equivalents at beginning of year 333,324 346,665 402,488 Cash and cash equivalents at end of year $ 343,131 $ 333,324 $ 346,665 Reconciliations of GAAP to Non-GAAP Financial Measures This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles, ("GAAP"). EnerSys' management uses the non-GAAP measures "adjusted Net earnings", "adjusted Diluted EPS", "reported Net earnings without IRC 45X benefit", "Non-GAAP adjusted Net earnings without IRC 45X benefit", "reported Net earnings (loss) per share without IRC 45X benefit", "Non-GAAP adjusted Net earnings (loss) per share without IRC 45X benefit","adjusted operating earnings", "adjusted gross profit", "adjusted gross margin", "EBITDA", "adjusted EBITDA", "adjusted EBITDA per credit agreement", "net debt", "net leverage ratio", "free cash flow", and "adjusted free cash flow conversion" as applicable, in their analysis of the Company's performance. Adjusted Net earnings, adjusted gross profit, adjusted gross margin, and adjusted operating earnings measures, as used by EnerSys in past quarters and years, adjusts Net earnings, gross profit, gross margin, and operating earnings determined in accordance with GAAP to reflect changes in financial results associated with the Company's restructuring initiatives and other highlighted charges and income items. Reported Net earnings without IRC 45X benefit, non-GAAP adjusted Net earnings without IRC 45X benefit, reported Net earnings (loss) per share without IRC 45X benefit, and non-GAAP adjusted Net earnings (loss) per share without IRC 45X benefit, as used by EnerSys in past quarters and years, adjusted Net earnings, adjusted Net earnings, Net earnings (loss) per share, and adjusted Net earnings (loss) per share to reflect the financial impact of IRC 45X. Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our business strategies and for business planning purposes. We calculate adjusted EBITDA as net income before interest income, interest expense, other (income) expense net, provision (benefit) for income taxes, depreciation and amortization, further adjusted to exclude restructuring and exit activities, impairment of goodwill, indefinite-lived intangibles and other assets, acquisition activities and those charges and credits that are not directly related to operating unit performance. EBITDA is calculated as net income before interest income, interest expense, other (income) expense net, provision (benefit) for income taxes, depreciation and amortization. We define non-GAAP adjusted EBITDA per credit agreement as net earnings determined in accordance with GAAP for interest, taxes, depreciation and amortization, and certain charges or credits as permitted by our credit agreements, that were recorded during the periods presented. We define non-GAAP net debt as total debt, finance lease obligations and letters of credit, net of all cash and cash equivalents, as defined in the Fourth Amended Credit Facility on the balance sheet as of the end of the most recent fiscal quarter. We define non-GAAP net leverage ratio as non-GAAP net debt divided by last twelve months non-GAAP adjusted EBITDA per credit agreement. We define non-GAAP free cash flow as net cash provided by or used in operating activities less capital expenditures. We define non-GAAP adjusted free cash flow conversion as free cash flow divided by adjusted net earnings. Free cash flow and adjusted free cash flow conversion are used by investors, financial analysts, rating agencies and management to help evaluate the Company's ability to generate cash to pursue incremental opportunities aimed toward enhancing shareholder value. Management believes the presentation of these financial measures reflecting these non-GAAP adjustments provides important supplemental information in evaluating the operating results of the Company as distinct from results that include items that are not indicative of ongoing operating results and overall business performance; in particular, those charges that the Company incurs as a result of restructuring 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, such as significant legal proceedings, amortization of intangible assets, tax valuation allowance changes, withholding tax from repatriation of prior period earnings, and impacts of changes or reform to income tax laws. Because these charges are not incurred as a result of ongoing operations, or are incurred as a result of a potential or previous acquisition, they are not as helpful a measure of the performance of our underlying business, particularly in light of their unpredictable nature and are difficult to forecast. Although we exclude the amortization of purchased intangibles from these non-GAAP measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. 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 0%. EnerSys does not provide a quantitative reconciliation of the Company's projected range for adjusted diluted earnings per share for the first quarter and full year of fiscal 2026 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 earnings per share guidance for the first quarter and full year of fiscal 2026 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, 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 earnings per share for the first quarter and full year of fiscal 2026 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 IRA production tax credits. Also, included are start up costs for exploration of a new lithium plant as well as start-up operating expenses from the New Ventures operating segment. Business Segment Operating Results Quarter ended ($ millions) March 31, 2025 Energy Systems Motive Power Specialty Corporate and other Total Net Sales $ 398.8 $ 392.3 $ 177.8 $ 5.9 $ 974.8 Operating Earnings $ 27.0 $ 57.9 $ 10.2 $ 36.2 $ 131.3 Inventory adjustment relating to exit activities $ 0.3 $ — $ 0.3 $ — $ 0.6 Restructuring and other exit charges $ 1.4 $ 2.2 $ 1.5 $ — 5.1 Loss on assets held for sale $ — $ 4.6 $ — $ — 4.6 Amortization of intangible assets $ 5.8 $ 0.1 $ 2.4 $ — 8.3 Integration costs $ (0.3 ) $ — $ 0.7 $ — 0.4 Other $ 0.5 $ 1.7 $ — $ — 2.2 Adjusted Operating Earnings $ 34.7 $ 66.5 $ 15.1 $ 36.2 $ 152.5 Operating Margin 6.8 % 14.8 % 5.7 % NM 13.5 % Adjusted Operating Margin 8.7 % 17.0 % 8.5 % NM 15.6 % Quarter ended ($ millions) March 31, 2024 Energy Systems Motive Power Specialty Corporate and other Total Net Sales $ 369.4 $ 394.8 $ 146.5 $ — $ 910.7 Operating Earnings $ (4.9 ) $ 53.9 $ 6.7 $ 25.2 $ 80.9 Inventory adjustment relating to exit activities 1.0 — — — 1.0 Restructuring and other exit charges 3.8 3.7 1.0 — 8.5 Impairment of indefinite-lived intangibles 7.6 — — — 7.6 Amortization of intangible assets 6.0 0.2 0.7 — 6.9 Legal proceeding charge, net 3.7 — — — 3.7 Other 0.2 0.3 0.1 — 0.6 Adjusted Operating Earnings $ 17.4 $ 58.1 $ 8.5 $ 25.2 $ 109.2 Operating Margin (1.3 )% 13.7 % 4.6 % NM 8.9 % Adjusted Operating Margin 4.7 % 14.7 % 5.8 % NM 12.0 % Increase (Decrease) as a % from prior year quarter Energy Systems Motive Power Specialty Corporate and other Total Net Sales 8.0 % (0.6 )% 21.4 % — % 7.0 % Operating Earnings NM 7.6 51.7 43.5 62.3 Adjusted Operating Earnings 98.4 14.5 79.1 43.5 39.6 NM = Not Meaningful Twelve months ended ($ millions) March 31, 2025 Energy Systems Motive Power Specialty Corporate and other Total Net Sales $ 1,531.1 $ 1,484.1 $ 593.6 $ 8.8 $ 3,617.6 Operating Earnings $ 72.7 $ 220.1 $ 16.8 $ 155.1 $ 464.7 Inventory adjustment relating to exit activities and step up to fair value relating to recent acquisitions 0.3 — 3.3 — 3.6 Restructuring and other exit charges 6.0 5.7 2.7 — 14.4 Loss on assets held for sale — 4.6 — — 4.6 Amortization of intangible assets 23.6 0.7 7.5 — 31.8 Integration costs (0.1 ) — 4.1 — 4.0 Acquisition activity expense — — 2.5 — 2.5 Other 0.7 1.7 0.1 — 2.5 Adjusted Operating Earnings $ 103.2 $ 232.8 $ 37.0 $ 155.1 $ 528.1 Operating Margin 4.7 % 14.8 % 2.8 % NM 12.8 % Adjusted Operating Margin 6.7 % 15.7 % 6.2 % NM 14.6 % Twelve months ended ($ millions) March 31, 2024 Energy Systems Motive Power Specialty Corporate and other Total Net Sales $ 1,590.0 $ 1,456.2 $ 535.6 $ — $ 3,581.8 Operating Earnings $ 15.5 $ 201.2 $ 17.6 $ 117.2 $ 351.5 Inventory adjustment relating to exit activities 17.1 — 3.1 — 20.2 Restructuring and other exit charges 8.9 11.6 7.6 — 28.1 Impairment of indefinite-lived intangibles 13.6 — — — 13.6 Amortization of intangible assets 24.5 0.7 2.8 — 28.0 Legal proceeding charge, net 3.7 — — — 3.7 Other 3.7 1.1 0.3 — 5.1 Adjusted Operating Earnings $ 87.0 $ 214.6 $ 31.4 $ 117.2 $ 450.2 Operating Margin 1.0 % 13.8 % 3.3 % NM 9.8 % Adjusted Operating Margin 5.5 % 14.7 % 5.9 % NM 12.6 % Increase (Decrease) as a % from prior year Energy Systems Motive Power Specialty Corporate and other Total Net Sales (3.7 )% 1.9 % 10.8 % — % 1.0 % Operating Earnings NM 9.4 (4.9 ) 32.3 32.2 Adjusted Operating Earnings 18.7 8.4 17.8 32.3 17.3 Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) The table below presents a reconciliation of Net Earnings to EBITDA and Adjusted EBITDA: Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Net Earnings 96.5 $ 60.9 $ 363.7 $ 269.1 Depreciation 18.2 16.8 69.1 64.0 Amortization 8.3 6.9 31.8 28.0 Interest 12.8 10.8 51.2 49.9 Income Taxes 19.8 5.7 42.8 23.1 EBITDA 155.6 101.1 558.6 434.1 Non-GAAP adjustments 11.3 23.4 30.0 72.7 Adjusted EBITDA $ 166.9 $ 124.5 $ 588.6 $ 506.8 The following table provides the non-GAAP adjustments shown in the reconciliation above: Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Inventory adjustment relating to exit activities $ 0.6 $ 1.0 $ 0.6 $ 20.2 Inventory step up to fair value relating to recent acquisitions — — 3.0 — Restructuring and other exit charges 5.1 8.5 14.4 28.1 Impairment of indefinite-lived intangibles — 7.6 — 13.6 Loss on assets held for sale 4.6 — 4.6 — Legal proceedings charge, net — 3.7 — 3.7 Integration Costs 0.4 — 4.0 — Gain on Pension Settlement (1.6 ) — (1.6 ) — Acquisition expense — — $ 2.5 — Other 2.2 2.6 $ 2.5 7.1 Non-GAAP adjustments $ 11.3 $ 23.4 $ 30.0 $ 72.7 The table below presents a reconciliation of Gross Profit and Gross Margin to Adjusted Gross Profit and Adjusted Gross Margin: Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Gross Profit as reported $ 303.7 $ 254.3 $ 1,092.4 $ 982.8 Inventory adjustment relating to exit activities — 1.0 — 20.2 Inventory step up to fair value relating to recent acquisitions 0.7 — 3.7 — Adjusted Gross Profit 304.4 255.3 1,096.1 1,003.0 Gross Margin 31.2 % 27.9 % 30.2 % 27.4 % Adjusted Gross Margin 31.2 % 28.0 % 30.3 % 28.0 % The table below presents a reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow Conversion percentages: Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Net cash provided by (used in) operating activities $ 135.2 $ 136.8 $ 260.3 $ 457.0 Less Capital Expenditures (30.2 ) (27.4 ) (121.0 ) (86.4 ) Free Cash Flow 105.0 109.4 139.3 370.6 Quarter ended Twelve months ended ($ millions) ($ millions) March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Net cash provided by (used in) operating activities $ 135.2 $ 136.8 $ 260.3 $ 457.0 Net earnings 96.5 60.9 363.7 269.1 Operating cash flow conversion % 140.1 % 224.6 % 71.6 % 169.8 % Free cash flow 105.0 109.4 139.3 370.6 Adjusted net earnings 118.6 85.2 410.4 345.3 Adjusted free cash flow conversion % 88.5 % 128.4 % 33.9 % 107.3 % The following table provides a reconciliation of Net earnings to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) per credit agreement for March 31, 2025 and March 31, 2024 to calculate our net leverage ratio, in connection with the Fourth Amended Credit Facility: Last twelve months March 31, 2025 March 31, 2024 (in millions, except ratios) Net earnings as reported $ 363.7 $ 269.1 Add back: Depreciation and amortization 100.9 $ 92.0 Interest expense 51.1 $ 49.9 Income tax expense 42.8 23.1 EBITDA (non-GAAP) $ 558.5 $ 434.1 Adjustments per credit agreement definitions(1) 56.2 85.8 Adjusted EBITDA (non-GAAP) per credit agreement(1) $ 614.7 519.9 Total net debt(2) $ 781.1 511.1 Leverage ratios: Total net debt/credit adjusted EBITDA ratio 1.3 X 1.0 X (1) The $56.2 million adjustment to EBITDA in the last twelve months ending March 31, 2025 primarily related to $27.8 million of non-cash stock compensation, $22.0 million of restructuring and other exit charges, impairment of indefinite-lived intangibles and write-down of other current assets of $5.5 million. The $85.8 million adjustment to EBITDA in the last twelve months ending March 31, 2024 primarily related to $30.6 million of non-cash stock compensation, $40.7 million of restructuring and other exit charges, impairment of indefinite-lived intangibles and write-down of other current assets of $13.6 million. (2) Debt includes finance lease obligations and letters of credit and is net of all U.S. cash and cash equivalents and foreign cash and investments, as defined in the Fourth Amended Credit Facility. In the last twelve months ending March 31, 2025 and March 31, 2024, the amounts deducted in the calculation of net debt were U.S. cash and cash equivalents and foreign cash investments of $343.1 million, and in fiscal 2024, were $333.3 million. 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. The following tables provide additional information regarding certain non-GAAP measures: Quarter ended (in millions, except share and per share amounts) March 31, 2025 March 31, 2024 Net earnings reconciliation As reported Net Earnings $ 96.5 $ 60.9 Non-GAAP adjustments: Inventory adjustment relating to exit activities 0.6 (1) 1.0 (1) Restructuring and other exit charges 5.1 (2) 8.5 (2) Impairment of indefinite-lived intangibles — 7.6 (3) Loss on assets held for sale 4.6 (4) — Amortization of identified intangible assets 8.3 (5) 6.9 (5) Legal proceedings charge, net — 3.7 (6) Integration costs 0.4 (7) — Other 2.2 (8) 3.3 (8) Gain on pension settlement (1.6 ) — Income tax adjustment of benefit from tax law changes and litigation 2.2 — Swiss income tax goodwill expiration 2.2 — Income tax expense on intercompany sale of IP 2.5 — Income tax effect of above non-GAAP adjustments (4.4 ) (6.7 ) Non-GAAP adjusted Net earnings $ 118.6 $ 85.2 Net Earnings without IRC 45X As Reported Net Earnings $ 96.5 $ 60.9 IRC 45X Benefit 44.1 36.0 Reported Net Earnings without IRC 45X Benefit $ 52.4 $ 24.9 Non-GAAP adjusted Net Earnings without IRC 45X Non-GAAP Adjusted Net Earnings $ 118.6 $ 85.2 IRC 45X Benefit 44.1 36.0 Non-GAAP adjusted Net Earnings without IRC 45X Benefit $ 74.5 $ 49.2 Outstanding shares used in per share calculations Basic 39,369,190 40,365,995 Diluted 39,982,082 41,054,904 Reported Net earnings (Loss) per share: Basic $ 2.45 $ 1.51 Diluted $ 2.41 $ 1.48 Dividends per common share $ 0.24 $ 0.225 Non-GAAP adjusted Net earnings per share: Basic $ 3.01 $ 2.11 Diluted $ 2.97 $ 2.08 Reported Net Earnings (Loss) per share without IRC 45X benefit Basic $ 1.33 $ 0.62 Diluted $ 1.31 $ 0.61 Non-GAAP adjusted Net Earnings (Loss) per share without IRC 45X benefit Basic $ 1.89 $ 1.22 Diluted $ 1.86 $ 1.20 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) March 31, 2025 March 31, 2024 Pre-tax Pre-tax (1) Inventory adjustment relating to exit activities - Energy Systems $ 0.3 $ 1.0 (1) Inventory adjustment relating to exit activities - Motive Power $ — — (1) Inventory adjustment relating to exit activities - Specialty 0.3 — (2) Restructuring and other exit charges - Energy Systems 1.4 3.8 (2) Restructuring and other exit charges - Motive Power 2.2 3.7 (2) Restructuring and other exit charges - Specialty 1.5 1.0 (3) Impairment of indefinite-lived intangibles - Energy Systems — 7.6 (4) Loss on assets held for sale - Motive 4.6 — (5) Amortization of identified intangible assets - Energy Systems 5.8 6.0 (5) Amortization of identified intangible assets - Motive Power 0.1 0.2 (5) Amortization of identified intangible assets - Specialty 2.4 0.7 (6) Legal proceedings charge, net - Energy Systems — 3.7 (7) Integration costs - Energy Systems (0.3 ) — (7) Integration costs - Specialty 0.7 — (8) Other - Energy Systems 0.5 0.2 (8) Other - Motive Power 1.7 0.3 (8) Other - Specialty — 0.1 Total Non-GAAP adjustments $ 21.2 $ 28.3 Twelve months ended (in millions, except share and per share amounts) March 31, 2025 March 31, 2024 Net Earnings reconciliation As reported Net Earnings $ 363.7 $ 269.1 Non-GAAP adjustments: Inventory adjustment relating to exit activities and step up to fair value relating to recent acquisitions 3.6 (1) 20.2 (1) Restructuring and other exit charges 14.4 (2) 28.1 (2) Impairment of indefinite-lived intangibles — 13.6 (3) Loss on assets held for sale 4.6 (4) — Amortization of identified intangible assets 31.8 (5) 28.0 (2) Acquisition activity expense 2.5 (6) — Legal proceedings charge, net — 3.7 (7) Integration costs 4.0 (8) — Other 2.5 (9) 7.8 (9) Gain on pension settlement (1.6 ) — Income tax benefit from tax law changes and litigation (4.6 ) — Swiss income tax goodwill expiration 2.2 — Income tax expense on intercompany sale of IP 2.5 — Income tax effect of above non-GAAP adjustments (15.2 ) (25.2 ) Non-GAAP adjusted Net Earnings $ 410.4 $ 345.3 Net Earnings without IRC 45X As Reported Net Earnings $ 363.7 $ 269.1 IRC 45X Benefit 184.6 136.4 Reported Net Earnings without IRC 45X Benefit $ 179.1 $ 132.7 Non-GAAP adjusted Net Earnings without IRC 45X Non-GAAP Adjusted Net Earnings $ 410.4 $ 345.3 IRC 45X Benefit 184.6 136.4 Non-GAAP adjusted Net Earnings without IRC 45X Benefit $ 225.8 $ 208.9 Outstanding shares used in per share calculations Basic 39,760,829 40,669,392 Diluted 40,438,579 41,371,439 Reported Net Earnings (Loss) per share: Basic $ 9.15 $ 6.62 Diluted $ 8.99 $ 6.50 Dividends per common share $ 0.945 $ 0.850 Non-GAAP adjusted Net Earnings per share: Basic $ 10.32 $ 8.49 Diluted $ 10.15 $ 8.35 Reported Net Earnings (Loss) per share without IRC 45X benefit Basic $ 4.50 $ 3.26 Diluted $ 4.43 $ 3.21 Non-GAAP adjusted Net Earnings (Loss) per share without IRC 45X benefit Basic $ 5.68 $ 5.14 Diluted $ 5.58 $ 5.05 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: Twelve months ended ($ millions) March 31, 2025 March 31, 2024 Pre-tax Pre-tax (1) Inventory adjustment relating to exit activities - Energy Systems 0.3 17.1 (1) Inventory adjustment relating to exit activities - Motive Power — — (1) Inventory adjustment relating to exit activities step up to fair value relating to recent acquisitions - Specialty 3.3 3.1 (2) Restructuring and other exit charges - Energy Systems 6.0 8.9 (2) Restructuring and other exit charges - Motive Power 5.7 11.6 (2) Restructuring and other exit charges - Specialty 2.7 7.6 (3) Impairment of indefinite-lived intangibles - Energy Systems — 13.6 (4) Loss on assets held for sale - Motive 4.6 — (5) Amortization of identified intangible assets - Energy Systems 23.6 24.5 (5) Amortization of identified intangible assets - Motive Power 0.7 0.7 (5) Amortization of identified intangible assets - Specialty 7.5 2.8 (6) Acquisition expense - Specialty 2.5 — (7) Legal proceedings charge, net - Energy Systems — 3.7 (8) Integration costs - Energy Systems (0.1 ) — (8) Integration costs - Specialty 4.1 — (9) Other - Energy Systems 0.7 3.7 (9) Other - Motive Power 1.7 1.1 (9) Other - Specialty 0.1 0.3 Total Non-GAAP adjustments $ 63.4 $ 98.7 View source version on Contacts Lisa Hartman Vice President, Investor Relations and Corporate CommunicationsEnerSys610-236-4040E-mail: investorrelations@ Sign in to access your portfolio
Business Wire
15-05-2025
- Business
- Business Wire
EnerSys Wins at DCR Excellence Awards: Recognised for Innovation in Data Center Solutions
ZUG, Switzerland--(BUSINESS WIRE)-- EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, celebrated a standout performance at the Data Centre Review Excellence Awards 2025, winning in the following category: Data Centre Backup Power Solution of the Year The prestigious awards ceremony took place on Wednesday, May 14 at the iconic Oxo Tower on London's South Bank. EnerSys representatives were in attendance to proudly accept the honours. Judged by a panel of industry experts, the DCR Excellence Awards highlight the most impactful innovations across the data center sector. EnerSys' wins reflect its continued commitment to advancing modern, sustainable, and resilient data center solutions. Powering the Future of the Data Center The global data center landscape is transforming rapidly, accelerated by the rise of AI and increasing demands for sustainability, performance, and uptime. EnerSys is helping operators meet these challenges with a portfolio designed to future-proof operations: Smarter: The EnVision™ Connect system monitor enables real-time visibility of critical battery parameters, enhancing operational control. Cleaner: Our energy storage solutions help data centers align with evolving energy efficiency targets and European regulatory requirements. More Reliable: The latest DataSafe® Thin Plate Pure Lead (TPPL) batteries deliver robust protection against costly downtime. Michael Sagar, Director of Marketing – Energy Systems, commented: 'Receiving this prestigious award in the category of Data Centre Backup Power Solution of the Year, confirms that EnerSys is a leader in the data center sector. This win goes beyond product innovation, it reflects our commitment to helping data centers thrive in an increasingly complex environment.' EnerSys remains committed to driving innovation and shaping the future of the global data center industry. We look forward to building on this momentum and reconnecting with industry peers at the DCR Excellence Awards 2026. 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 Sustainability Sustainability at EnerSys is about more than just the benefits and impacts of our products. Our commitment to sustainability encompasses many important environmental, social and governance issues. Sustainability is a fundamental part of how we manage our own operations. Minimizing our environmental footprint is a priority. Sustainability is our commitment to our employees, our customers and the communities we serve. Our products facilitate positive environmental, social and economic impacts around the world. To learn more visit: Caution Concerning Forward-Looking Statements EnerSys is making this statement in order to satisfy the 'Safe Harbor' provision contained in the Private Securities Litigation Reform Act of 1995. Any of the statements contained in this press release that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. A forward-looking statement predicts, projects, or uses future events as expectations or possibilities. Forward-looking statements may be based on expectations concerning future events and are subject to risks and uncertainties relating to operations and the economic environment, all of which are difficult to predict and many of which are beyond our control. For a discussion of such risks and uncertainties that could cause actual results to differ materially from those matters expressed in or implied by forward-looking statements, please see our risk factors as disclosed in the 'Risk Factors' section of our annual report on Form 10-K for the most recently ended fiscal year. 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. For more information visit © 2025 EnerSys. All Rights Reserved. Trademarks and logos are the property of EnerSys and its affiliates unless otherwise noted. Subject to revisions without prior notice. E.&O.E.
