Delivers Net Sales of $936M, up 5% from Prior Year
First Quarter Fiscal 2027 Highlights
(All comparisons against the first quarter of fiscal year 2026 unless otherwise noted)
- Delivered net sales of $936M, up +5%
- Achieved Gross Margin (GM) of 33.5%, up +510 bps and GM ex IRC 45X(1) of 28.5%, up +440 bps
- Realized diluted EPS of $3.09, up +112%, adjusted diluted EPS(1) of $3.66, up +64%, and adjusted diluted EPS ex IRC 45X(1) of $2.41, up +92%
- Realized $30.9M of tariff refunds in the quarter; adjusted diluted EPS ex IRC 45X and tariff refunds of $1.78 up +42%
- Net leverage ratio(a) 0.8 X EBITDA
- Returned $60M to shareholders, including repurchase of 219K shares for $50M
- In August, the Board declared a 10% increase in the Company's quarterly dividend to $0.2875 per share for the second quarter of fiscal 2027
READING, Pa.--(BUSINESS WIRE)--#EnerSys--EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial, infrastructure, and defense applications, announced today results for its first quarter fiscal 2027, which ended on July 5, 2026.
“In the first quarter of fiscal year 2027, we delivered top line growth aligned with our long-term value creation framework,” said Shawn O'Connell, President and Chief Executive Officer of EnerSys. “Adjusted diluted EPS excluding IRC 45X increased 92% year-over-year, or 42% year-over-year excluding a one-time benefit from tariff refunds, demonstrating the effective combination of our diversified business and EnerGize strategic framework.
“Momentum across data centers, communications, and aerospace & defense is generating strong sales growth and margin expansion, offsetting the delayed recovery of material handling demand, and enabling another record first quarter result. We continue to advance on the commercialization of our next-generation products, progress on our planned lithium cell facility, and expand our services capabilities to accelerate our growth.
“As we communicated in our Investor Day in June, our strategic priorities are well defined. We are focused on our core markets where we have a right to win, we are applying our differentiated energy storage solutions to address the critical customer challenges of energy security and labor scarcity, and we are executing as a well-aligned organization to drive profitable growth and long-term shareholder value,” O’Connell concluded.
Key Financial Results and Metrics | First quarter ended | ||||||||
In millions, except per share amounts | July 5, 2026 |
| June 29, 2025 |
| Change | ||||
Net Sales | $ | 935.6 |
| $ | 893.0 |
|
| 4.8 | % |
Diluted EPS (GAAP) | $ | 3.09 |
| $ | 1.46 |
| $ | 1.63 |
|
Adjusted Diluted EPS (Non-GAAP)(1) | $ | 3.66 |
| $ | 2.23 |
| $ | 1.43 |
|
Gross Profit (GAAP) | $ | 313.4 |
| $ | 253.2 |
| $ | 60.2 |
|
Operating Earnings (GAAP) | $ | 151.4 |
| $ | 86.5 |
| $ | 64.9 |
|
Adjusted Operating Earnings (Non-GAAP)(2) | $ | 178.8 |
| $ | 121.5 |
| $ | 57.3 |
|
Net Earnings (GAAP) | $ | 116.5 |
| $ | 57.5 |
| $ | 59.0 |
|
EBITDA (Non-GAAP)(3) | $ | 176.1 |
| $ | 103.9 |
| $ | 72.2 |
|
Adjusted EBITDA (Non-GAAP)(3) | $ | 195.8 |
| $ | 130.5 |
| $ | 65.3 |
|
Share Repurchases | $ | 50.0 |
| $ | 150.0 |
| $ | (100.0 | ) |
Dividend per share | $ | 0.263 |
| $ | 0.240 |
| $ | 0.023 |
|
Total Capital Returned to Stockholders | $ | 59.6 |
| $ | 159.1 |
| $ | (99.5 | ) |
(a) Net leverage ratio is a non-GAAP financial measure as defined pursuant to our credit agreement and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures. | |||||||||
| (1) GM (Gross Margin) excluding IRC 45X , Adjusted Diluted EPS and Adjusted Diluted EPS excluding IRC 45X benefit are non-GAAP financial measures and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures. | |||||||||
(2) Operating Earnings are adjusted for charges that the Company incurs as a result of restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and those charges and credits that are not directly related to operating unit performance. A reconciliation of operating earnings to Non-GAAP Adjusted Earnings are provided in tables under the section titled Business Segment Operating Results. | |||||||||
(3) Non-GAAP EBITDA is calculated as net earnings adjusted for depreciation, amortization, interest and income taxes. Non-GAAP Adjusted EBITDA is further adjusted for certain charges such as restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and other charges and credits as discussed under Reconciliations of GAAP to Non-GAAP Financial Measures. |
Summary of Results
First Quarter Fiscal 2027
Net sales for the first quarter of fiscal 2027 were $935.6 million, an increase of 4.8% from the prior year first quarter net sales of $893.0 million, and in line with the first quarter of fiscal 2027 guidance range of $915 million to $955 million given by the Company on May 20, 2026. The increase compared to prior year's quarter was the result of a 3% increase in pricing, a 1% increase in foreign currency translation, and a 1% increase in organic volume.
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the first quarter of fiscal 2027 was $116.5 million, or $3.09 per diluted share, which included an unfavorable highlighted net of tax impact of $21.2 million, or $0.57 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts.
Net earnings for the first quarter of fiscal 2026 were $57.5 million, or $1.46 per diluted share, which included an unfavorable highlighted net of tax impact of $30.1 million, or $0.77 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts.
Excluding these highlighted items, adjusted diluted EPS for the first quarter of fiscal 2027, on a non-GAAP basis, were $3.66, an increase of 64% from the prior year first quarter adjusted diluted EPS of $2.23, and above the first quarter of fiscal 2027 guidance range of $2.80 to $2.90 per diluted share given by the Company on May 20, 2026 that did not include adjustments for stock-based compensation representing a net of tax impact of $6.2 million, or $0.16 per diluted share. Please refer to the section included herein under the heading “Reconciliations of GAAP to Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information, which includes tables reconciling GAAP and non-GAAP adjusted financial measures for the quarters ended July 5, 2026 and June 29, 2025.
Quarterly Dividend
The Company announced today that its Board of Directors has raised its quarterly cash dividend for the fourth consecutive year, with an increase of 10% to $0.2875 per share of common stock. The dividend is payable on October 2, 2026, to holders of record as of September 18, 2026.
Balance Sheet and Cash Flow
As of July 5, 2026, cash and cash equivalents were $530.7 million and net debt as defined by our credit facility was $521.5 million. The net leverage ratio at the end of the first quarter was 0.8 X, down from 1.6 X in the prior year period due to the impact of lower debt, increased earnings, and receipt of our U.S. federal tax refund. Capital expenditures during the first quarter were $12.4 million, down from $33.0 million in the prior year period. During the first quarter, cash from operating activities was $230.2 million, up from $1.0 million in the prior year period. Free cash flow, a non-GAAP financial measure, was an inflow of $217.8 million, as compared to an outflow of $32.1 million in the prior year period. The increase in cash from operating activities and the increase in free cash flow were both bolstered by the receipt of our U.S. federal tax refund mentioned earlier as well as increased earnings. Please refer to the section included herein under the heading “Reconciliations of GAAP to Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information, which includes tables reconciling GAAP and non-GAAP adjusted financial measures for the quarters ended July 5, 2026 and June 29, 2025.
The Company also returned approximately $59.6 million to shareholders through $50.0 million in share repurchases and $9.6 million through its quarterly dividend payment in the first quarter.
Second Quarter and Fiscal Year 2027 Outlook
In the second quarter of fiscal 2027, EnerSys expects:
- Net sales: $955M to $995M
- IRC 45X benefits to cost of sales: $42M to $47M
- Adjusted diluted EPS: $3.15 to $3.25*
- Adjusted diluted EPS, ex IRC 45X benefits: $1.95 to $2.05
For the full year fiscal 2027, EnerSys expects:
- Capital expenditures ~$70M
“We are pleased with the strong start to fiscal 2027 and the continued progress we are making to expand margins and strengthen the earnings power of the business,” said Andrea Funk, EnerSys Chief Financial Officer. “The quarter benefited from improved volumes and favorable price/mix in our NIS and PPS segments, more than offsetting IMS softness from the prolonged material handling market recovery. We also delivered exceptional free cash flow conversion of 187%. Excluding the benefit of the tariff refund in the quarter and normalizing for stock compensation accounting changes, the underlying performance demonstrates a record first quarter and that our actions are delivering meaningful results.”
“Our second quarter outlook reflects continued strength across Data Centers, Communications, and Aerospace and Defense, as well as early recovery in Transportation. For the second quarter, we expect net sales of $955 million to $995 million and adjusted diluted EPS excluding 45X benefits of $1.95 to $2.05. Consistent with expectations we laid out at our Investor Day in June, we expect to see our earnings growth to be primarily driven from margin expansion in the first half of this fiscal year, with a shift to higher topline growth towards the end of FY’27, supported by a recovery in material handling and continued momentum across our other key end markets. We remain confident in our ability to generate strong cash flow, invest in growth, and return capital to shareholders,” concluded Funk.
*Inclusive of IRC 45X Advanced Manufacturing Production Credits.
Please refer to the section included herein under the heading “Reconciliations of GAAP to Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information.
Conference Call and Webcast Details
The Company will host a conference call to discuss its first quarter results at 9:00 AM (ET) Thursday, August 13, 2026. A live broadcast as well as a replay of the call can be accessed via this webcast registration link or the Investor Relations section of the company’s website at https://investor.enersys.com.
If you cannot join via webcast, please reach out to investorrelations@enersys.com for dial-in details.
About EnerSys
EnerSys is a global leader in stored energy solutions helping industrial, infrastructure and defense customers address critical power and operational needs with batteries, chargers and other power equipment. The company delivers integrated solutions that combine energy storage technologies, power electronics, software-enabled intelligence, technical expertise and comprehensive global customer support. EnerSys supports customers across communications networks, data centers, energy infrastructure, material handling, transportation, aerospace and defense — including applications where power continuity is essential. Serving customers in more than 100 countries, EnerSys helps organizations manage energy more reliably, efficiently and intelligently in complex operating environments where uptime, safety and resilience matter. For more information, visit www.enersys.com.
Caution Concerning Forward-Looking Statements
This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act, which may include, but are not limited to, statements regarding EnerSys’ earnings estimates, intention to pay quarterly cash dividends, return capital to stockholders, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, including statements identified by words such as “believe,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “will,” and similar expressions. All statements addressing operating performance, events, or developments that EnerSys expects or anticipates will occur in the future, including statements relating to sales growth, earnings or earnings per share growth, order intake, backlog, payment of future cash dividends, commodity prices, execution of its stock buyback program, judicial or regulatory proceedings, ability to identify and realize benefits in connection with acquisition and disposition opportunities, and market share, as well as statements expressing optimism or pessimism about future operating results or benefits from its cash dividend, its stock buyback programs, application of Section 45X of the Internal Revenue Code, funding, development and construction of the Company's gigafactory in Greenville, South Carolina, adverse developments with respect to the economic conditions in the U.S. in the markets in which we operate and other uncertainties, including the impact of supply chain disruptions, interest rate changes, inflationary pressures, geopolitical and other developments and labor shortages on the economic recovery and our business and changes in law, regulation or policy that may affect our business, including trade policy and tariffs, and other government priorities or budgets are forward-looking statements within the meaning of the Reform Act. The forward-looking statements are based on management's current views and assumptions regarding future events and operating performance, and are inherently subject to significant business, economic, and competitive uncertainties and contingencies and changes in circumstances, many of which are beyond the Company’s control. The statements in this press release are made as of the date of this press release, even if subsequently made available by EnerSys on its website or otherwise. EnerSys does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Although EnerSys does not make forward-looking statements unless it believes it has a reasonable basis for doing so, EnerSys cannot guarantee their accuracy. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors which could affect EnerSys’ results, including earnings estimates, see EnerSys’ filings with the Securities and Exchange Commission, including “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2026. No undue reliance should be placed on any forward-looking statements.
EnerSys Consolidated Condensed Statements of Income (Unaudited) (In millions, except share and per share data) | |||||
| Quarter ended | ||||
| July 5, 2026 |
| June 29, 2025 | ||
Net sales | $ | 935.6 |
| $ | 893.0 |
Gross profit |
| 313.4 |
| $ | 253.2 |
Operating expenses |
| 151.3 |
| $ | 160.8 |
Restructuring and other exit charges |
| 10.7 |
| $ | 5.9 |
Operating earnings |
| 151.4 |
| $ | 86.5 |
Earnings before income taxes |
| 135.0 |
| $ | 65.7 |
Income tax expense |
| 18.5 |
| $ | 8.2 |
Net earnings attributable to EnerSys stockholders | $ | 116.5 |
| $ | 57.5 |
|
|
|
| ||
Net reported earnings per common share attributable to EnerSys stockholders: |
|
|
| ||
Basic | $ | 3.19 |
| $ | 1.48 |
Diluted | $ | 3.09 |
| $ | 1.46 |
Dividends per common share | $ | 0.2625 |
| $ | 0.2400 |
Weighted-average number of common shares used in reported earnings per share calculations: |
|
|
| ||
Basic |
| 36,467,526 |
|
| 38,798,263 |
Diluted |
| 37,626,671 |
|
| 39,295,773 |
EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) | ||||||||
|
| July 5, 2026 |
| March 31, 2026 | ||||
Assets |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 530,663 |
|
| $ | 438,675 |
|
Accounts receivable, net of allowance for doubtful accounts: July 5, 2026 - $10,522; March 31, 2026 - $8,583 |
|
| 454,811 |
|
|
| 506,072 |
|
Inventories, net |
|
| 738,654 |
|
|
| 724,690 |
|
Prepaid and other current assets |
|
| 405,918 |
|
|
| 472,373 |
|
Total current assets |
|
| 2,130,046 |
|
|
| 2,141,810 |
|
Property, plant, and equipment, net |
|
| 572,407 |
|
|
| 593,002 |
|
Goodwill |
|
| 748,214 |
|
|
| 752,424 |
|
Other intangible assets, net |
|
| 334,236 |
|
|
| 342,898 |
|
Deferred taxes |
|
| 68,413 |
|
|
| 69,008 |
|
Other assets |
|
| 103,619 |
|
|
| 104,182 |
|
Total assets |
| $ | 3,956,935 |
|
| $ | 4,003,324 |
|
Liabilities and Equity |
|
|
|
| ||||
Current liabilities: |
|
|
|
| ||||
Short-term debt |
| $ | 28,667 |
|
| $ | 29,201 |
|
Accounts payable |
|
| 335,158 |
|
|
| 354,190 |
|
Accrued expenses |
|
| 398,148 |
|
|
| 420,647 |
|
Total current liabilities |
|
| 761,973 |
|
|
| 804,038 |
|
Long-term debt, net of unamortized debt issuance costs |
|
| 1,010,265 |
|
|
| 1,079,782 |
|
Deferred taxes |
|
| 13,897 |
|
|
| 13,909 |
|
Other liabilities |
|
| 197,253 |
|
|
| 196,723 |
|
Total liabilities |
|
| 1,983,388 |
|
|
| 2,094,452 |
|
Commitments and contingencies |
|
|
|
| ||||
Equity: |
|
|
|
| ||||
Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at July 5, 2026 and at March 31, 2026 |
|
| — |
|
|
| — |
|
Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 57,616,359 shares issued and 36,310,450 shares outstanding at July 5, 2026; 57,551,440 shares issued and 36,462,211 shares outstanding at March 31, 2026 |
|
| 576 |
|
|
| 576 |
|
Additional paid-in capital |
|
| 748,541 |
|
|
| 734,922 |
|
Treasury stock at cost, 21,305,909 shares held as of July 5, 2026 and 21,089,229 shares held as of March 31, 2026 |
|
| (1,411,797 | ) |
|
| (1,361,585 | ) |
Retained earnings |
|
| 2,850,285 |
|
|
| 2,743,635 |
|
Accumulated other comprehensive loss |
|
| (217,705 | ) |
|
| (212,264 | ) |
Total EnerSys stockholders’ equity |
|
| 1,969,900 |
|
|
| 1,905,284 |
|
Nonredeemable noncontrolling interests |
|
| 3,647 |
|
|
| 3,588 |
|
Total equity |
|
| 1,973,547 |
|
|
| 1,908,872 |
|
Total liabilities and equity |
| $ | 3,956,935 |
|
| $ | 4,003,324 |
|
EnerSys Consolidated Condensed Statements of Cash Flows (Unaudited) (In Thousands) | ||||||||
|
| Quarter ended | ||||||
|
| July 5, 2026 |
| June 29, 2025 | ||||
Cash flows from operating activities |
|
|
|
| ||||
Net earnings |
| $ | 116,450 |
|
| $ | 57,458 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
| ||||
Depreciation and amortization |
|
| 30,495 |
|
|
| 26,894 |
|
Write-off of assets relating to exit activities |
|
| 5,748 |
|
|
| (626 | ) |
Derivatives not designated in hedging relationships: |
|
|
|
| ||||
Net losses (gains) |
|
| 404 |
|
|
| (354 | ) |
Cash (settlements) proceeds |
|
| 1,052 |
|
|
| 2,536 |
|
Provision for doubtful accounts |
|
| 2,292 |
|
|
| (203 | ) |
Deferred income taxes |
|
| (431 | ) |
|
| (42 | ) |
Non-cash interest expense |
|
| 483 |
|
|
| 479 |
|
Stock-based compensation |
|
| 7,778 |
|
|
| 17,601 |
|
Loss (gain) on disposal of property, plant, and equipment |
|
| 1,196 |
|
|
| 34 |
|
Changes in assets and liabilities: |
|
|
|
| ||||
Accounts receivable |
|
| 48,220 |
|
|
| 50,218 |
|
Inventories |
|
| (14,483 | ) |
|
| (33,490 | ) |
Prepaid and other current assets |
|
| 88,947 |
|
|
| (38,867 | ) |
Other assets |
|
| 342 |
|
|
| 179 |
|
Accounts payable |
|
| (22,515 | ) |
|
| (43,049 | ) |
Accrued expenses |
|
| (37,984 | ) |
|
| (38,448 | ) |
Other liabilities |
|
| 2,167 |
|
|
| 648 |
|
Net cash provided by (used in) operating activities |
|
| 230,161 |
|
|
| 968 |
|
|
|
|
|
| ||||
Cash flows from investing activities |
|
|
|
| ||||
Capital expenditures |
|
| (12,422 | ) |
|
| (33,019 | ) |
Purchase of business |
|
| — |
|
|
| (12,558 | ) |
Proceeds from disposal of property, plant, and equipment |
|
| 80 |
|
|
| 4,163 |
|
Net cash (used in) provided by investing activities |
|
| (12,342 | ) |
|
| (41,414 | ) |
|
|
|
|
| ||||
Cash flows from financing activities |
|
|
|
| ||||
Net (repayments) borrowings on short-term debt |
|
| 8 |
|
|
| (209 | ) |
Proceeds from Second Amended Revolver borrowings |
|
| 120,000 |
|
|
| 231,700 |
|
Repayments of Second Amended Revolver borrowings |
|
| (190,000 | ) |
|
| (46,700 | ) |
Options proceeds, net |
|
| 5,859 |
|
|
| ||
Purchase of treasury stock |
|
| (49,958 | ) |
|
| (150,034 | ) |
Dividends paid to stockholders |
|
| (9,555 | ) |
|
| (9,107 | ) |
Other |
|
| (139 | ) |
|
| 314 |
|
Net cash provided by (used in) financing activities |
|
| (123,785 | ) |
|
| 25,964 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
| (2,046 | ) |
|
| 18,013 |
|
Net increase (decrease) in cash and cash equivalents |
|
| 91,988 |
|
|
| 3,531 |
|
Cash and cash equivalents at beginning of period |
|
| 438,675 |
|
|
| 343,131 |
|
Cash and cash equivalents at end of period |
| $ | 530,663 |
|
| $ | 346,662 |
|
Reconciliations of GAAP to Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles, ("GAAP"). EnerSys' management uses the non-GAAP measures “adjusted Net earnings”, “adjusted diluted EPS”, "reported Net earnings excluding (ex) IRC 45X benefit", "adjusted Net earnings excluding (ex) IRC 45X benefit", "reported Net earnings (loss) per share excluding (ex) IRC 45X benefit", " adjusted diluted EPS excluding (ex) IRC 45X benefit", "GM excluding (ex) 45X", "adjusted operating earnings", "adjusted gross profit", "adjusted gross margin", "EBITDA", “adjusted EBITDA”, "adjusted EBITDA per credit agreement", "net debt", "net leverage ratio", "free cash flow", and "adjusted free cash flow conversion" as applicable, in their analysis of the Company's performance. Adjusted Net earnings, adjusted gross profit, adjusted gross margin, and adjusted operating earnings measures, as used by EnerSys in past quarters and years, adjusts Net earnings, gross profit, gross margin, and operating earnings determined in accordance with GAAP to reflect changes in financial results associated with the Company's restructuring initiatives and other highlighted charges and income items. Reported Net earnings excluding (ex) IRC 45X benefit, adjusted Net earnings excluding (ex) IRC 45X benefit, reported Net earnings (loss) per share excluding (ex) IRC 45X benefit, adjusted diluted EPS excluding (ex) IRC 45X benefit, and GM excluding (ex) IRC 45X benefit as used by EnerSys in past quarters and years, adjusted Net earnings, adjusted Net earnings, Net earnings (loss) per share, adjusted diluted EPS, and gross margin to reflect the financial impact of IRC 45X. Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our business strategies and for business planning purposes. We calculate adjusted EBITDA as net income before interest income, interest expense, other (income) expense net, provision (benefit) for income taxes, depreciation and amortization, further adjusted to exclude restructuring and exit activities, impairment of goodwill, indefinite-lived intangibles and other assets, stock-based compensation, acquisition activities and those charges and credits that are not directly related to operating unit performance. EBITDA is calculated as net income before interest income, interest expense, other (income) expense net, provision (benefit) for income taxes, depreciation and amortization.
Contacts
Lisa Hartman Langell
Vice President, Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
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