EnerSys (ENS, Financial) is set to reduce its global workforce by 11%, equating to around 575 employees, predominantly affecting corporate and management roles. This move is part of a broader restructuring initiative under the new leadership aimed at aligning the company's resources with its current priorities and future goals. EnerSys anticipates these changes will lead to approximately $80 million in annual savings starting in fiscal year 2026. The savings are expected to stem from a $70 million decrease in operating expenses for fiscal 2025 and a $10 million reduction in cost of goods sold.
The company plans to complete the workforce adjustments by the end of the second quarter of fiscal 2026, in compliance with local laws. EnerSys predicts saving between $30 million and $35 million in fiscal 2026, with significant benefits materializing by the third fiscal quarter. However, these savings exclude anticipated one-time restructuring costs ranging from $15 million to $20 million, mainly covering severance and associated expenses. The bulk of these costs will likely occur in the second and third quarters of fiscal 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for EnerSys (ENS, Financial) is $105.36 with a high estimate of $120.00 and a low estimate of $95.08. The average target implies an upside of 16.61% from the current price of $90.35. More detailed estimate data can be found on the EnerSys (ENS) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, EnerSys's (ENS, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for EnerSys (ENS, Financial) in one year is $97.72, suggesting a upside of 8.16% from the current price of $90.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the EnerSys (ENS) Summary page.
ENS Key Business Developments
Release Date: May 22, 2025
- Revenue: Fourth-quarter net sales of $975 million, up 7% from prior year.
- Full-Year Revenue: $3.6 billion, up 1% year over year.
- Adjusted Gross Margin: Q4 '25 adjusted gross margin of 31.2%, up 320 basis points versus prior year.
- Adjusted Operating Earnings: $152 million in Q4, up $43 million versus prior year.
- Adjusted EBITDA: $167 million in Q4, up $42 million versus prior year.
- Adjusted EPS: Q4 adjusted EPS of $2.97 per share, up 43% over prior year.
- Free Cash Flow: $105 million in Q4.
- Energy Systems Revenue: Increased 8% from prior year to $399 million in Q4.
- Motive Power Revenue: $392 million in Q4, flat compared to prior year.
- Specialty Revenue: Increased 21% from prior year to $178 million in Q4.
- Net Debt: $781 million as of March 31, 2025.
- Credit Agreement Leverage Ratio: 1.3 times EBITDA.
- Q1 Fiscal 2026 Guidance: Expected net sales of $830 million to $870 million with adjusted diluted EPS of $2.03 to $2.13 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- EnerSys (ENS, Financial) delivered a strong fourth quarter with a 7% revenue growth, marking the second highest revenue quarter in the company's history.
- The company achieved record adjusted diluted EPS of $1.86, excluding 45X benefits, showcasing strong earnings power.
- Motive Power margins reached record levels, with maintenance-free products accounting for a record 29% of segment sales.
- EnerSys (ENS) saw significant growth in Energy Systems, particularly in data centers and a moderate recovery in communications.
- The Bren-Tronics acquisition contributed positively to the company's performance, particularly in the Aerospace and Defense markets.
Negative Points
- EnerSys (ENS) faces near-term friction due to tariff-related disruptions, with a direct tariff exposure of approximately $92 million.
- The company anticipates some short-term headwinds from stranded tariffs and shifting customer order patterns.
- Motive Power orders were pressured in Q4, with a 14% decline in Motive Power Americas orders year-on-year.
- The company has temporarily paused full-year guidance due to uncertainty around reciprocal tariffs and macroeconomic dynamics.
- EnerSys (ENS) is experiencing slower recovery in Class 8 truck OEM volumes, with ongoing macro uncertainty affecting transportation markets.
