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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.
EnerSys
EnerSys
EnerSys Revenue by Segment
Revenue by Segment
Energy Systems Revenue
CapyFin.comMotive Power Revenue
CapyFin.comSpecialty Revenue
CapyFin.com 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