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EnerSys
🇺🇸 NYSE:ENS
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Oct 01, 2023

EnerSys Q2 2024 Earnings Report

EnerSys reported solid results in the second quarter of fiscal year 2024, driven by Motive Power segment strength and record gross margin.

Key Takeaways

EnerSys reported net sales of $901 million, a record for the second quarter, with a gross margin of 26.6%, up 490 basis points from the prior year. Diluted EPS was $1.56, an 86% increase year-over-year, and adjusted diluted EPS was $1.84, a 66% increase. The company benefited from a $22 million benefit from Inflation Reduction Act IRC 45X tax credits.

Net sales reached $901 million, a record for the second quarter.

Gross margin improved to 26.6%, up 490 basis points, including a $22 million benefit from Inflation Reduction Act IRC 45X tax credits

Operating earnings increased by 63% to $89 million, and adjusted operating earnings rose by 58% to $103 million.

Diluted EPS grew by 86% to $1.56, and adjusted diluted EPS increased by 66% to $1.84.

Total Revenue
$901M
Previous year: $899M
+0.2%
EPS
$1.84
Previous year: $1.11
+65.8%
Organic sales growth
-7%
Previous year: 10%
-170.0%
Pricing impact on sales
6%
Previous year: 9%
-33.3%
Gross Profit
$240M
Previous year: $195M
+22.9%
Cash and Equivalents
$328M
Previous year: $294M
+11.3%
Free Cash Flow
$91M
Previous year: -$15M
-704.8%
Total Assets
$3.49B
Previous year: $3.62B
-3.6%

EnerSys

EnerSys

EnerSys Revenue by Segment

Forward Guidance

In the third quarter of fiscal 2024, EnerSys expects adjusted diluted earnings per share in the range of $1.80 to $1.90, inclusive of $0.50 to $0.60 from IRC 45X tax benefits under the IRA. Gross margin is expected to be in the range of 25.0% to 27.0%, including 150bps to 250bps from IRA credits. For the full year of fiscal 2024, capital expenditures are expected to be in the range of $100 million to $120 million.

Positive Outlook

  • Optimistic about the trajectory of our business.
  • Pleased with our ability to maintain pricing during the quarter.
  • Officially launched our New Ventures business.
  • Received initial order for Fast Charge and Storage systems from our launch customer.
  • Order pipeline is gaining momentum.

Challenges Ahead

  • Expect to continue to operate in a dynamic macro environment.
  • Managing our business prudently to mitigate risk.
  • Seeing pockets of strong demand.
  • IRS has not yet issued additional clarification guidance related to section 45X which could materially increase or decrease the quantity of our U.S. produced batteries that qualify for this credit.
  • Near-term macro headwinds stabilize.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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