EnerSys' Q2 Earnings & Sales Beat Estimates, Increase Year Over Year

EnerSys ENS reported second-quarter fiscal 2026 (ended Sept. 28, 2025) adjusted earnings of $2.56 per share, which surpassed the Zacks Consensus Estimate of $2.08. The bottom line increased 20.6% year over year.

EnerSys’ net sales of $951.3 million beat the consensus estimate of $928 million. The top line increased 7.7% year over year, driven by strength in data center and communications markets, along with the Bren-Tronics acquisition. While acquisitions boosted sales by 1%, pricing had a positive impact of 3%. Foreign currency translation had a positive impact of 1%. Organic sales increased 3%.

Segmental Discussion

The Energy Systems segment’s sales (accounting for 45.7% of total sales) were $435 million, up 14% year over year. The Zacks Consensus Estimate for segmental net sales was $394 million. Net sales increased due to growth in data centers and a continued recovery in the U.S. Communications market. While volume increased 10%, price/mix and foreign currency translation had positive impacts of 3% and 1%, respectively, on sales.

The Motive Power segment generated net sales of $360 million (accounting for 37.9% of total sales), down 2% year over year. The consensus estimate for segmental net sales was $356 million. Volume declined 6% in the quarter, and foreign currency translation had a favorable impact of 1% on sales.

The Specialty segment’s sales were $157 million (accounting for 16.4% of total sales), up 16% year over year. The consensus estimate was $137 million. Results benefited from the strong contribution of the Bren-Tronics acquisition. While volume increased 7%, acquisitions had a positive impact of 7% on sales. Foreign currency translation positively impacted sales by 1%.

ENS’ Margin Profile

EnerSys' cost of sales increased 6.7% year over year to $674 million. Gross profit increased 10% year over year to $277.2 million while the gross margin was up 40 basis points (bps) to 29.1%.

Operating expenses were up 9% year over year to $164.1 million. Operating earnings decreased 7.4% to $92.0 million. The operating margin decreased 150 bps year over year to 9.7%.

Balance Sheet and Cash Flow

At the end of the fiscal second quarter, EnerSys had cash and cash equivalents of $388.6 million compared with $343.1 million at the end of fiscal 2025. Long-term debt (net of unamortized debt issuance costs) was $1.18 billion compared with $1.08 billion at fiscal 2025-end.

EnerSys generated net cash of $219 million from operating activities in the first six months of fiscal 2026 compared with $44 million in the year-ago period. Capital expenditure totaled $53.9 million compared with $66.4 million in the previous fiscal year.

In the first six months of fiscal 2026, EnerSys rewarded its shareholders with a dividend payout of approximately $18.9 million, up 1.7% year over year.

ENS’ Guidance

For third-quarter fiscal 2026 (ending September 2025), EnerSys expects adjusted earnings to be in the range of $2.71–$2.81 per share, indicating growth of 36% at the mid-point. Net sales are expected to be in the band of $920–$960 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.

Performance of Other Companies

Dover Corporation DOV reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.

Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.

Ardagh Metal Packaging S.A. AMBP came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.

Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion. 

Packaging Corporation of America PKG reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.

Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.

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