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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.
EnerSys
EnerSys
EnerSys Revenue by Segment
Revenue by Segment
Energy Systems Revenue
CapyFin.comMotive Power Revenue
CapyFin.comSpecialty Revenue
CapyFin.com 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.
- The IRS has not yet finalized guidance related to section 45X, which could materially increase or decrease the quantity of our U.S. produced batteries that qualify for this credit.
- Managing business prudently to navigate the temporary spending pauses by telecom and broadband customers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income