Energizer Holdings, Inc. (NYSE:ENR) shares dropped more than 5% in pre-market trading after the battery and consumer products manufacturer reported third-quarter 2026 results that missed Wall Street expectations and issued weaker-than-expected guidance.
Although sales increased modestly during the quarter, lower profitability and a cautious outlook weighed on investor sentiment.
Earnings and Revenue Miss Estimates
Energizer reported adjusted earnings of $0.75 per share for the quarter ended June 30, 2026, below the analyst consensus estimate of $0.83.
Revenue totalled $734.1 million, missing market expectations of $743.42 million but rising 1.2% from $725.3 million in the same quarter last year.
Organic Sales Continue to Grow
Organic net sales increased 2.7% year over year.
Growth was supported by broader distribution and new product launches within the Batteries & Lights segment, as well as stronger refrigerant distribution in the Auto Care business.
However, those gains were partially offset by a 1.4% decline in pricing as the company increased promotional spending.
CEO Points to Strategic Progress
Chief Executive Officer Mark LaVigne said the business continued to make progress despite challenging market conditions.
“We delivered a solid third quarter in an operating environment that remains dynamic, with organic net sales growth across both segments and continued progress against the strategic priorities we outlined at the beginning of the year,” said Mark LaVigne, Chief Executive Officer.
Guidance Disappoints Investors
For the fourth quarter of fiscal 2026, Energizer forecast adjusted earnings of between $1.25 and $1.35 per share.
The midpoint of $1.30 is below the analyst consensus estimate of $1.39.
The company also revised its full-year expectations, indicating that adjusted earnings per share and adjusted EBITDA are now expected to finish at the lower end of the previously announced guidance ranges of $3.30 to $3.60 and $580 million to $610 million, respectively.
Margins Under Pressure
Adjusted gross margin declined to 39.2% during the quarter, compared with 44.8% a year earlier.
The company attributed the 560-basis-point decline to an unfavourable product mix and increased promotional investment.
Free cash flow for the first nine months of fiscal 2026 totalled $105.0 million, representing 4.9% of net sales.
Energizer Holdings stock price
