EnerSys provides stored energy solutions for industrial applications. It also 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. Energy Systems that combine enclosures, power conversion, power distribution, and energy storage are used in the telecommunication and broadband, utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Its segments include Energy Systems, Motive Power, and Specialty.
Performance Overview
EnerSys (ENS, Financial) reported net sales of $852.9 million for the first quarter of fiscal 2025, a 6.1% decrease from the $908.6 million reported in the same quarter last year. This figure fell slightly below the company's guidance range of $860 million to $900 million and the analyst estimate of $876.40 million. The decline was attributed to a 3% decrease in organic volume, a 2% decrease in price/mix, and a 1% decrease due to foreign currency translation impacts.
Key Financial Achievements
Despite the revenue shortfall, EnerSys (ENS, Financial) achieved a gross margin of 28.0%, up 160 basis points from the prior year, benefiting from the Inflation Reduction Act / IRC 45X tax credits. The company reported diluted earnings per share (EPS) of $1.71, a 7% increase from $1.60 in the previous year, and adjusted diluted EPS of $1.98, a 5% increase from $1.89. The adjusted EPS exceeded the analyst estimate of $1.86.
Income Statement Highlights
| Metric | Q1 FY2025 | Q1 FY2024 | Change |
|---|---|---|---|
| Net Sales | $852.9M | $908.6M | -6.1% |
| Gross Profit | $238.4M | $240.3M | -0.8% |
| Operating Earnings | $91.3M | $89.4M | +2.1% |
| Net Earnings | $70.1M | $66.8M | +4.9% |
| Diluted EPS | $1.71 | $1.60 | +7% |
| Adjusted Diluted EPS | $1.98 | $1.89 | +5% |
Balance Sheet and Cash Flow
EnerSys (ENS, Financial) reported total assets of $3.56 billion as of June 30, 2024, up from $3.47 billion at the end of the previous fiscal year. The company’s cash and cash equivalents increased to $344.1 million from $333.3 million. Operating cash flow for the quarter was $10 million, and the net leverage ratio stood at 1.1x EBITDA.
Strategic Initiatives and Market Challenges
EnerSys (ENS, Financial) faced continued pressure in the Communications segment and a spending pause in Class 8 truck OEMs. However, the company saw encouraging demand signals in Energy Systems, with backlog increasing for the first time in eight quarters. The Motive Power segment performed well, with volumes and margins increasing due to consistent customer demand in logistics and warehousing.
"Amid topline temporary market pressures, we are advancing on our strategic initiatives, delivering cost reductions, and remain optimistic for this fiscal year's results," said David M. Shaffer, President and Chief Executive Officer of EnerSys.
Outlook
For the second quarter of fiscal 2025, EnerSys (ENS, Financial) expects net sales in the range of $880 million to $920 million and adjusted diluted EPS between $2.05 and $2.15. For the full fiscal year 2025, the company has raised its guidance, expecting net sales between $3.735 billion and $3.885 billion and adjusted diluted EPS between $8.80 and $9.20.
EnerSys (ENS, Financial) continues to focus on strategic growth opportunities, including the acquisition of Bren-Tronics, which expands its lithium product offerings and presence in the defense market. The company is also advancing its lithium gigafactory planning and building collaborative relationships to support future growth.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from EnerSys for further details.
