EnerSys' Q1 Earnings & Sales Beat Estimates, Increase Year Over Year

EnerSys ENS reported first-quarter fiscal 2026 (ended June 30, 2025) adjusted earnings of $2.08 per share, which surpassed the Zacks Consensus Estimate of $2.05. The bottom line increased 5% year over year.

EnerSys’ net sales of $893 million beat the consensus estimate of $849 million. The top line increased 4.7% year over year, driven by strength in data center and communications markets along with the Bren-Tronics acquisition. While acquisitions boosted sales by 4%, pricing and foreign currency translation had a positive impact of 1% each. However, organic sales decreased 1%.

Segmental Discussion

The Energy Systems segment’s sales (accounting for 43.9% of total sales) were $391.4 million, up 8.4% year over year. The Zacks Consensus Estimate for segmental net sales was $375 million.  Net sales increased due to growth in data centers and a continued recovery in the U.S. Communications market. While volume increased 5%, price/mix and foreign currency translation had positive impacts of 2% and 1%, respectively, on sales.

The Motive Power segment generated net sales of $349.1 million (accounting for 39.3% of total sales), down 4.7% year over year. The consensus estimate for segmental net sales was $334 million. Volume declined 7% in the quarter, and foreign currency translation had a favorable impact of 2% on sales.

The Specialty segment’s sales were $148.5 million (accounting for 16.8% of total sales), up 18.1% year over year. The consensus estimate was $146 million. Results benefited from the strong contribution of the Bren-Tronics acquisition. While volume decreased 7%, acquisitions had a positive impact of 24% on sales. Foreign currency translation positively impacted sales by 1%.

EnerSys Price, Consensus and EPS Surprise

EnerSys price-consensus-eps-surprise-chart | EnerSys Quote

ENS’ Margin Profile

EnerSys' cost of sales increased 5.7% year over year to $566.1 million. Gross profit increased 6.2% year over year to $253.2 million while the gross margin was up 40 basis points (bps) to 28.4%.

Operating expenses were up 14% year over year to $160.9 million. Operating earnings decreased 5.3% to $86.5 million. The operating margin decreased 100 bps year over year to 9.7%.

Balance Sheet and Cash Flow

At the end of the fiscal first quarter, EnerSys had cash and cash equivalents of $346.7 million compared with $343.1 million at the end of fiscal 2025. Long-term debt (net of unamortized debt issuance costs) was $1.27 billion compared with $1.08 billion at fiscal 2025-end.

EnerSys generated net cash of $1 million from operating activities in the first three months of fiscal 2026 compared with $10.4 million in the year-ago period. Capital expenditure totaled $33 million compared with $36.1 million in the previous fiscal year.

In the first three months of fiscal 2026, EnerSys rewarded its shareholders with a dividend payout of approximately $9.1 million, up 0.7% year over year.

ENS’ Guidance

For second-quarter fiscal 2026 (ending September 2025), EnerSys expects adjusted earnings to be in the range of $2.33–$2.43 per share, indicating growth of 26% at the mid-point. Net sales are expected to be in the band of $870–$910 million.

ENS’ Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks are discussed below:

Federal Signal Corporation FSS currently carries a Zacks Rank #2 (Buy). FSS has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 5.7%.  In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2025 earnings has increased 4.2%.

ITT Inc. ITT currently carries a Zacks Rank of 2. ITT has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 1.5%.  In the past 60 days, the Zacks Consensus Estimate for ITT’s 2025 earnings has increased 1.7%.

RBC Bearings Incorporated RBC currently carries a Zacks Rank of 2. RBC outperformed the consensus estimate thrice in the preceding four quarters and missed once, with an average surprise of 3.8%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ 2025 earnings has increased 1.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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