Enersys' Q4 Earnings Surpass Estimates, Sales Rise Year Over Year

Enersys ENS reported fourth-quarter fiscal 2025 (ended March 31, 2025) adjusted earnings of $2.97 per share, which surpassed the Zacks Consensus Estimate of $2.78. The bottom line increased 43% year over year.

Enersys’ net sales of $974.8 million missed the consensus estimate of $975 million. The top line increased 7% year over year, driven by strength in the specialty and communications markets.  While organic sales increased 4%, acquisitions boosted sales by 4% and pricing had a positive impact of 1%. Foreign currency translation had an adverse impact of 2% on sales.

For fiscal 2025, ENS reported net revenues of $3.62 billion, which increased 1% year over year. The company’s adjusted earnings were $10.15 per share, up 21.6% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Segmental Discussion

The Energy Systems segment’s sales (accounting for 40.9% of total sales) were $399 million, up 8% year over year. The Zacks Consensus Estimate for segmental net sales was $416 million.  Net sales increased due to growth in data centers and continued recovery in the U.S. Communications market. While volume increased 8%, forex woes had an adverse impact of 2% on sales.

The Motive Power segment generated net sales of $392 million (accounting for 40.2% of total sales), down 0.6% year over year. The consensus estimate for segmental net sales was $396 million. Volume growth was flat in the quarter and price/mix had a positive impact of 1%. Forex woes had an adverse impact of 2% on sales.

The Specialty segment’s sales were $178 million (accounting for 18.9% of total sales), up 21% year over year. The consensus estimate was $165 million. While volume increased 1%, acquisitions had a positive impact of 22% on sales. Price/mix adversely impacted sales by 2%.

ENS’ Margin Profile

EnerSys' cost of sales increased 2.2% year over year to $671.1 million. Gross profit increased 19.4% year over year to $303.7 million while the gross margin was up 330 basis points (bps) to 31.2%.

Operating expenses were up 3.4% year over year to $162.7 million. Operating earnings increased 62.3% to $131.3 million. The operating margin increased 460 bps year over year to 13.5%.

Balance Sheet and Cash Flow

At the end of the fiscal fourth quarter, EnerSys had cash and cash equivalents of $343.1 million compared with $333.3 million at the end of fiscal 2024. Long-term debt (net of unamortized debt issuance costs) was $1.08 billion compared with $802 million at fiscal 2024-end.

EnerSys generated net cash of $260.3 million from operating activities in fiscal 2025 compared with $457 million in the year-ago period. Capital expenditure totaled $121 million compared with $86.4 million in the previous fiscal year’s period.

In fiscal 2025, EnerSys rewarded its shareholders with a dividend payout of approximately $37.5 million, up 8.7% year over year.

ENS’ Guidance

For first-quarter fiscal 2026, EnerSys expects adjusted earnings to be in the range of $2.03–$2.13 per share. Net sales are expected to be in the band of $830–$870 million.

ENS’ Zacks Rank

The company currently carries a Zacks Rank #4 (Sell). 

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

Performance of Other Companies

AZZ Inc. AZZ came out with quarterly earnings of $0.98 per share in the second quarter of fiscal 2025 (ended March 2025), beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. 

Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.

Pentair plc PNR came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.

Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.

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