Q3 2026 EnerSys Earnings Call Transcript
Key Points
- EnerSys (ENS) reported a record adjusted diluted EPS of $1.84, up 50% year over year.
- The company achieved a strong free cash flow of $171 million, an increase of $114 million compared to the prior year.
- Energy Systems delivered its first double-digit adjusted operating earnings margin on modest sales growth.
- Specialty segment showed remarkable performance improvement with sales up high single-digits and adjusted operating earnings more than twice that of the prior year.
- EnerSys (ENS) returned $94 million in capital to shareholders through share repurchases and dividends.
- Net sales were up only 1%, aligning with the low end of the guidance range, indicating slower revenue growth.
- There is ongoing softness in the motive power and transportation segments, with expectations of continued slowness into mid fiscal '27.
- The closure of the Monterey battery plant and transition to the Richmond facility may delay realizing cost savings until mid fiscal '27.
- The lithium cell factory project has experienced slower progress than anticipated, delaying finalization with the Department of Energy.
- Tariff impacts remain a concern, with an estimated direct tariff exposure of around $70 million annualized for fiscal '26.
Hello and thank you for standing by. My name is Bella, and I will be your conference operator today. At this time, I would like to welcome everyone to NRC's Q3 fiscal '26 earnings webcast and conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. We do request for today's session that you please limit to one question and one follow-up. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press one again. I would now like to turn the conference over to Lisa Langel, Vice President, Investor relations and corporate communications. You may begin.
Good morning everyone.
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Thank you for joining us today to discuss NSIS's fiscal 3rd quarter results. On the call with me are Sean O'Connell, ESIS President and Chief Executive Officer, and Andy Funk, ERSIS executive Vice President
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