On May 22, 2024, EnerSys (ENS, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of fiscal 2024. EnerSys, a global leader in stored energy solutions for industrial applications, reported mixed results amid market challenges.
Company Overview
EnerSys provides stored energy solutions for industrial applications. It manufactures and distributes energy systems solutions, motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories, and outdoor equipment enclosure solutions to customers worldwide. Its segments include Energy Systems, Motive Power, and Specialty.
Performance and Challenges
EnerSys reported net sales of $911 million for Q4 FY2024, down 8% from the prior year, primarily due to temporary spending pauses in the telecom and broadband sectors. Despite this, the company achieved a gross margin of 27.9%, up 300 basis points from the previous year, bolstered by $36 million in benefits from the Inflation Reduction Act / IRC 45X tax credits.
Net earnings for Q4 FY2024 were $60.9 million, or $1.48 per diluted share, down 7% from the previous year. However, adjusted diluted EPS was $2.08, a 14% increase, exceeding the analyst estimate of $1.89. This performance highlights the company's ability to manage costs and improve operational efficiency despite revenue challenges.
Financial Achievements
For the full year FY2024, EnerSys delivered net sales of $3.6 billion, a 3% decrease from the previous year. The company achieved a gross margin of 27.4%, up 470 basis points, with adjusted gross margin at 28.0%, including $136 million in tax credits. Record diluted EPS for the year was $6.50, a 53% increase, with adjusted diluted EPS at $8.35, up 56% from the previous year.
Operating cash flow for the year was $457 million, an increase of $177 million, allowing the company to return $130 million to shareholders through share repurchases and dividends.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | Change | FY2024 | FY2023 | Change |
|---|---|---|---|---|---|---|
| Net Sales | $910.7M | $989.9M | (8.0)% | $3,581.8M | $3,708.5M | (3.4)% |
| Diluted EPS (GAAP) | $1.48 | $1.59 | (0.11) | $6.50 | $4.25 | $2.25 |
| Adjusted Diluted EPS (Non-GAAP) | $2.08 | $1.82 | $0.26 | $8.35 | $5.34 | $3.01 |
| Gross Profit (GAAP) | $254.3M | $246.0M | $8.3M | $982.8M | $840.1M | $142.7M |
| Operating Earnings (GAAP) | $80.9M | $95.4M | (14.5) | $351.5M | $278.3M | $73.2M |
| Adjusted Operating Earnings (Non-GAAP) | $109.2M | $107.1M | $2.1M | $450.2M | $322.2M | $128.0M |
| Net Earnings (GAAP) | $60.9M | $65.9M | (5.0) | $269.1M | $175.8M | $93.3M |
| EBITDA (Non-GAAP) | $101.1M | $112.9M | (11.8) | $434.1M | $361.3M | $72.8M |
| Adjusted EBITDA (Non-GAAP) | $124.5M | $118.2M | $6.3M | $506.8M | $387.5M | $119.3M |
Analysis and Outlook
EnerSys' performance in Q4 and FY2024 reflects its resilience in the face of market challenges. The company's ability to improve gross margins and adjusted earnings
Explore the complete 8-K earnings release (here) from EnerSys for further details.
