Q4 2026 EnerSys Earnings Call Transcript
Key Points
- EnerSys (ENS) delivered its highest quarterly adjusted EPS and second highest quarterly revenue, driven by favorable price mix and strong free cash flow.
- The company implemented its energized strategic framework, optimizing its core by closing facilities in Mexico and shifting production to the U.S., expected to generate significant cost savings.
- EnerSys (ENS) is seeing strong demand in data centers, communications, and defense applications, with a high book-to-bill ratio of 1.1.
- The company is advancing new product developments, including lithium data center solutions and battery energy storage solutions, which are expected to drive future earnings growth.
- EnerSys (ENS) has a strong balance sheet with a leverage ratio of 1.1 times EBITDA, well below its target range, and continues to return value to shareholders through buybacks and dividends.
- EnerSys (ENS) faced a 6% decrease in organic volume, partially offsetting revenue growth.
- Higher freight, tariff, and inflationary costs negatively impacted adjusted gross profit, which was down 4% year-over-year.
- The macro environment remains dynamic, with potential impacts from geopolitical conflicts and economic uncertainty affecting customer buying patterns.
- Motive Power revenue decreased by 6% due to ongoing market softness, and the segment experienced a decline in operating margins.
- The company anticipates temporary pressure from elevated freight and inflationary costs due to the conflict in the Middle East.
Hello, and welcome to the EnerSys Q4 and full year 2026 earnings webcast and conference call. (Operator Instructions)
Now I would like to turn the call over to Lisa Hartman Langell, Vice President of Investor Relations. Please go ahead.
Good morning, everyone. Thank you for joining us today to discuss EnerSys fourth quarter and full fiscal year 2026 results. On the call with me are Shawn O'Connell, EnerSys' President and Chief Executive Officer; and Andy Funk, EnerSys Executive Vice President and Chief Financial Officer.
Last evening, we published our fourth quarter and fiscal year 2026 results and our 10-K with the SEC, which are available on our website. We also posted slides that we will be referring to during this call. The slides are available on the Presentations page within the Investor Relations section of our website.
As a reminder, we will be presenting certain forward-looking statements on this call that are subject to uncertainties and changes in circumstances.
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