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EnerSys
🇺🇸 NYSE:ENS
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Jun 30, 2024

EnerSys Q1 2025 Earnings Report

EnerSys reported first quarter fiscal 2025 results, with a gross margin of 28%, up 160 basis points from the prior year.

Key Takeaways

EnerSys reported net sales of $852.9 million, a 6% decrease year-over-year, but delivered diluted EPS of $1.71, a 7% increase, and adjusted diluted EPS of $1.98, a 5% increase. The company saw encouraging demand signals in Energy Systems and closed on the acquisition of Bren-Tronics.

Net sales were $853M, down 6%, with Motive Power on plan, continued pressure in Communications, and a spending pause in Class 8 truck OEMs.

Gross margin reached 28.0%, up 160 bps, including increased benefits from Inflation Reduction Act / IRC 45X tax credits.

Diluted EPS was $1.71, up 7%, and adjusted diluted EPS was $1.98, up 5%.

The company closed on the acquisition of Bren-Tronics, a leading U.S. manufacturer of portable lithium power solutions.

Total Revenue
$853M
Previous year: $909M
-6.1%
EPS
$1.98
Previous year: $1.89
+4.8%
Organic sales growth
-3%
Previous year: -8%
-62.5%
Pricing impact on sales
-2%
Previous year: 9%
-122.2%
Gross Profit
$238M
Previous year: $240M
-0.8%
Cash and Equivalents
$344M
Previous year: $258M
+33.2%
Free Cash Flow
-$25.7M
Previous year: $58.9M
-143.7%
Total Assets
$3.56B
Previous year: $3.48B
+2.2%

EnerSys

EnerSys

EnerSys Revenue by Segment

Forward Guidance

For the second quarter of fiscal 2025, EnerSys expects net sales in the range of $880M to $920M and adjusted diluted earnings per share in the range of $2.05 to $2.15. For the full year fiscal 2025, EnerSys expects net sales in the range of $3,735M to $3,885M and adjusted diluted earnings per share in the range of $8.80 to $9.20.

Positive Outlook

  • Net sales in the range of $880M to $920M for Q2 2025.
  • Adjusted diluted earnings per share in the range of $2.05 to $2.15 for Q2 2025.
  • Net sales in the range of $3,735M to $3,885M for full year fiscal 2025, up from prior guidance.
  • Adjusted diluted earnings per share in the range of $8.80 to $9.20 for full year fiscal 2025, up from prior guidance.
  • Capital expenditures in the range of $100M to $120M for full year fiscal 2025.

Challenges Ahead

  • Spending pauses in the Class 8 truck OEM and Communications markets are being navigated prudently.
  • Inventory de-stocking is complete, but deferred spending is occurring.
  • The IRS has not yet finalized guidance related to section 45X, which could materially increase or decrease the quantity of U.S. produced batteries that qualify for this credit.
  • Some of the headwinds experienced in the first quarter are expected to persist in the second quarter.
  • Unspecified global concern over energy scarcity.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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