READING, PA — EnerSys (NYSE: ENS) reported higher first-quarter fiscal 2026 revenue, lifted by its Bren-Tronics acquisition, strong data center demand, and a rebound in the U.S. communications market. The company also unveiled an $80 million cost-reduction program and expanded its capital return plans to shareholders.
Revenue rose 4.7% year-over-year to $893 million, topping guidance. Adjusted diluted earnings per share came in at $2.08, up 5% from last year, although base business EPS—excluding tax credit benefits from IRC 45X—fell 6% to $1.11, pressured by foreign exchange headwinds and tariff-related order delays in the forklift and transportation markets.
President and CEO Shawn O’Connell said the new “EnerGize” strategic framework aims to streamline operations and improve agility, beginning with a workforce reduction and organizational realignment expected to generate $80 million in annualized savings. He described the effort as “more than a cost reduction,” positioning the company for long-term growth.
EnerSys also announced a $1 billion increase to its stock repurchase authorization—bringing total available buybacks to $1.06 billion—and a 9% dividend hike to $0.2625 per share, marking the third consecutive annual increase.
In Q1, the company returned $159.1 million to shareholders, including $150 million in buybacks and $9.1 million in dividends. Liquidity stood at $346.7 million in cash, with a net leverage ratio of 1.6x, up from 1.1x last year due to the Bren-Tronics deal and repurchases.
For Q2, EnerSys expects net sales of $870 million to $910 million, adjusted EPS of $2.33 to $2.43, and $35 million to $40 million in IRC 45X benefits. CFO Andrea Funk reaffirmed that Q1 likely marked the year’s earnings low point, with improved policy clarity expected to stabilize markets.
While full-year guidance remains on hold pending macroeconomic and policy developments, management expects adjusted operating earnings growth—excluding 45X benefits—to outpace revenue growth, supported by operational efficiencies from EnerGize and strength in defense, communications, and data center markets.
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