READING, PA — EnerSys (NYSE: ENS), a leading provider of stored energy solutions, has released its financial results for the first quarter of fiscal 2025, which ended on June 30, 2024.
First Quarter Fiscal 2025 Highlights
EnerSys reported net sales of $852.9 million, a 6% decrease from the same period last year. The decline was attributed to lower volumes in Communications and a pause in spending in Class 8 truck OEMs. Despite these challenges, the company saw encouraging demand signals in Energy Systems, with backlog increasing for the first time in eight quarters.
Gross margins improved by 160 basis points to 28.0%, benefiting from the Inflation Reduction Act’s tax credits. Diluted earnings per share (EPS) rose by 7% to $1.71, while adjusted diluted EPS increased by 5% to $1.98. The company maintained a net leverage ratio of 1.1 times EBITDA on operating cash flow of $10 million.
In July, EnerSys closed the acquisition of Bren-Tronics, a U.S. manufacturer of portable lithium power solutions. This acquisition is expected to be immediately accretive. Additionally, on August 7, 2024, the Board of Directors declared a 7% increase in the quarterly dividend to $0.24 per share for the second quarter of fiscal 2025.
CEO Commentary
David M. Shaffer, President and CEO of EnerSys, noted, “In the first quarter of our new fiscal year, we delivered EPS at the mid-point and revenue slightly below the low end of our guidance range. Amid topline temporary market pressures, we are advancing on our strategic initiatives, delivering cost reductions, and remain optimistic for this fiscal year’s results.”
Shaffer highlighted that the Energy Systems segment faced continued weakness in Communications, but this was partly offset by significant cost reduction actions. Motive Power was a bright spot, showing increased volumes and margins due to consistent customer demand in logistics and warehousing.
Looking Ahead
EnerSys is in the final testing phase of its first commercially ready Fast Charge & Storage system, set for delivery to its launch customer soon. The company is also advancing its lithium gigafactory planning and has invested in Verkor to support cell development and factory operations.
For the second quarter of fiscal 2025, EnerSys expects net sales between $880 million and $920 million, and adjusted diluted EPS of $2.05 to $2.15. For the full year, the company projects net sales between $3,735 million and $3,885 million, and adjusted diluted EPS of $8.80 to $9.20.
Andrea Funk, Chief Financial Officer of EnerSys, expressed optimism about the fiscal year 2025 financial targets. “While we are seeing encouraging demand trends in the majority of our end markets, we are managing our business prudently to navigate the spending pauses in the Class 8 truck OEM and Communications markets,” she said.
The company remains focused on delivering long-term value to its shareholders by leveraging growth opportunities in the global energy transition market.
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