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Sep 29, 2024
EnerSys Q2 2025 Earnings Report
EnerSys reported Q2 2025 results with a gross margin of 28.5%, up 190 basis points from the prior year.
Key Takeaways
EnerSys reported net sales of $883.7 million and diluted EPS of $2.01. The company's gross margin increased by 190 basis points to 28.5%. They were also selected for a $199 million Department of Energy award negotiation.
Net sales were $884M, down 2%, with Motive Power strength offset by Communications and Class 8 Transportation pressure.
Energy Systems improved with net sales +6% sequentially and backlog increasing for the second consecutive quarter.
Gross Margin reached 28.5%, up 190 bps, including benefits from Inflation Reduction Act / IRC 45X tax credits, +60 bps ex IRA.
Diluted EPS was $2.01, up 29%, and adjusted diluted EPS was $2.12, up 15%.
EnerSys
EnerSys
EnerSys Revenue by Segment
Revenue by Segment
Energy Systems Revenue
CapyFin.comMotive Power Revenue
CapyFin.comSpecialty Revenue
CapyFin.com Forward Guidance
EnerSys expects net sales in the range of $920M to $960M and adjusted diluted earnings per share in the range of $2.20 to $2.30 for Q3 2025. For the full year fiscal 2025, EnerSys expects net sales in the range of $3,675 to $3,765M and adjusted diluted earnings per share in the range of $8.75 to $9.05.
Positive Outlook
- Encouraging demand trends in the majority of end markets.
- Improving order rates in the Communications and Data Center markets.
- Stable trends in the Motive Power and A&D businesses.
- Profitability of baseline business to deliver accelerating returns.
- Accretive contribution of Bren-Tronics and continued cost improvements.
Challenges Ahead
- Managing business prudently to navigate the continued spending pause in the Class 8 truck OEM market.
- Near-term macro uncertainty.
- Deployment schedules for New Ventures have been pushed out due to installation and site readiness challenges.
- Modestly lowering revenue range for full year fiscal 2025.
- Slightly lowering the mid-point of the full year fiscal 2025 adjusted diluted earnings per share guidance by $0.10.
Revenue & Expenses
Visualization of income flow from segment revenue to net income