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Oct 02, 2022
EnerSys Q2 2023 Earnings Report
EnerSys reported a solid second quarter in fiscal year 2023, marked by revenue growth and improved gross margins despite ongoing economic challenges.
Key Takeaways
EnerSys reported a 14% year-over-year increase in net sales, reaching $899 million, the second highest quarterly revenue in the company's history. Adjusted diluted EPS was $1.11, slightly above the midpoint of guidance. The company saw improved gross margins and a healthy backlog, while navigating supply chain disruptions and inflationary pressures.
Net sales increased by 14% year-over-year to $899 million, driven by pricing and organic volume growth.
Adjusted gross margin improved by 120 basis points sequentially due to price/mix improvements.
Adjusted diluted EPS reached $1.11, up $0.10 versus prior year.
The company is cautiously optimistic, seeing costs plateauing and supply chain constraints easing.
EnerSys
EnerSys
EnerSys Revenue by Segment
Revenue by Segment
Energy Systems Revenue
CapyFin.comMotive Power Revenue
CapyFin.comSpecialty Revenue
CapyFin.com Forward Guidance
EnerSys anticipates operating in a dynamic macro environment with persistent FX headwinds and European utility inflation. For the third quarter of fiscal 2023, the company expects adjusted diluted earnings per share in the range of $1.20 to $1.30 and gross margin between 21% - 23%.
Positive Outlook
- Sequential volume and price/mix improvement expected.
- Strong demand trends anticipated.
- Healthy backlog expected to continue.
- Benefits from portions of the business that are cycle-independent.
- Significant cash flow generation expected to continue.
Challenges Ahead
- Expects to continue to operate in a dynamic macro environment.
- Anticipates FX headwinds to persist.
- Expects European utility inflation to persist.
- Monitoring the near-term economic environment closely.
- Believes they will weather and potentially benefit from a slowdown
Revenue & Expenses
Visualization of income flow from segment revenue to net income