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Mar 31, 2024
EnerSys Q4 2024 Earnings Report
EnerSys reported fourth quarter and full year fiscal 2024 results, delivering a gross margin of 27.9%, up 300 basis points from the prior year.
Key Takeaways
EnerSys reported Q4 2024 net sales of $911 million, down 8% year-over-year, primarily due to spending pauses in telecom and broadband. However, the company achieved a gross margin of 27.9%, a 300 basis point increase, and an adjusted EPS of $2.08, up 14%.
Net sales were $911M, down 8%, due to temporary spending pauses in telecom and broadband.
Gross margin reached 27.9%, up 300 bps, with a $36M benefit from Inflation Reduction Act tax credits.
Diluted EPS was $1.48, down 7%, while adjusted diluted EPS was $2.08, up 14%.
Net leverage ratio reduced to 1.0 X EBITDA on operating cash flow of $137M.
Revenue by Segment
Forward Guidance
For Q1 2025, EnerSys expects net sales in the range of $860M to $900M and adjusted diluted earnings per share in the range of $1.93 to $2.03. For fiscal year 2025, net sales are projected to be between $3,675M and $3,825M, with adjusted diluted earnings per share ranging from $8.55 to $8.95.
Positive Outlook
- Volume growth driven by maintenance-free products in Motive Power.
- Increase in transportation aftermarket sales.
- First revenues from Fast Charge and Storage.
- Expect to see some cost improvements and benefits from operational efficiencies flowing through to our bottom line.
- The need for intelligent energy storage and management systems will only increase as the demand for electricity is significantly outpacing the capacity of the global grid infrastructure.
Challenges Ahead
- Seasonally lower volume in Motive Power is expected in Q1 2025.
- Continued telecom and broadband spending pauses in Energy Systems.
- Only moderate recovery in telecom and broadband markets to begin to occur towards the end of the fiscal year.
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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