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Dec 28, 2025
EnerSys Q3 2026 Earnings Report
EnerSys reported its financial results for the third quarter of fiscal year 2026, highlighting strong earnings and margin expansion despite market softness in Motive Power.
Key Takeaways
EnerSys delivered strong third-quarter earnings with adjusted diluted EPS ex 45X up 50% to $1.84. Net sales increased by 1.4% to $919.1 million, driven by pricing and favorable FX, partially offset by lower organic volumes. The company maintained its net leverage ratio below the low end of its target range and returned $94 million to shareholders through buybacks and dividends.
Net sales increased by 1.4% to $919.1 million, aligning with the lower end of guidance.
Adjusted diluted EPS ex IRC 45X grew by 50% to $1.84, reflecting strong earnings.
Gross margin ex 45X expanded by 170 bps to 26.3%, driven by favorable product mix and pricing discipline.
The company returned $94 million to shareholders through buybacks and dividends, maintaining a healthy net leverage ratio of 1.2X EBITDA.
Revenue by Segment
Forward Guidance
For the fourth quarter of fiscal 2026, EnerSys expects net sales between $960 million and $1,000 million, with IRC 45X benefits to cost of sales ranging from $37 million to $42 million. Adjusted diluted EPS is projected to be between $2.95 and $3.05, or $1.91 to $2.01 excluding 45X benefits. Full-year fiscal 2026 capital expenditures are expected to be around $80 million.
Positive Outlook
- Anticipated full-year adjusted operating earnings growth, excluding 45X benefits, to outpace revenue growth.
- Continued support from ongoing opex savings and sustained price/mix strength.
- Expected improvement in Motive Power volumes, despite remaining soft.
- EnerGize strategic framework is translating into tangible results, capturing realignment savings and refining Centers of Excellence.
- Strong confidence in focused growth strategy, supported by durable secular demand trends for energy security and high-performance energy storage solutions.
Challenges Ahead
- Continued impact of a dynamic macro environment on customer buying patterns.
- Market softness persists, particularly in Motive Power volumes.
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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