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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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