READING, PA — EnerSys (NYSE: ENS) reported record fiscal 2026 sales and raised the lower end of its first-quarter earnings outlook, signaling improving demand conditions despite continued weakness in some industrial markets.
The battery and stored-energy systems manufacturer generated $3.75 billion in net sales for the fiscal year ended March 31, a 4% increase from the prior year, while adjusted earnings reached a record $10.56 per diluted share. The company also increased its first-quarter fiscal 2027 adjusted earnings guidance to a range of $2.80 to $2.90 per share, up from a previously issued range of $2.70 to $2.90.
For the fourth quarter, EnerSys reported net sales of $988 million, up 1% from a year earlier, driven by pricing gains and favorable currency translation. Organic volume declined 6%.
Net earnings attributable to shareholders totaled $77.3 million, or $2.05 per diluted share, compared with $96.5 million, or $2.41 per diluted share, in the prior-year quarter.
Adjusted earnings, which exclude certain one-time items, rose to a record $3.19 per diluted share from $2.97 a year earlier and exceeded the company’s guidance range of $2.95 to $3.05.
President and Chief Executive Officer Shawn O’Connell cited progress in commercializing new products, including a battery energy storage system for warehouse operators and a lithium-based solution for data centers, both of which are undergoing customer commissioning.
The company also reported record annual adjusted earnings excluding benefits from Section 45X advanced manufacturing tax credits, a measure EnerSys highlighted as evidence of underlying operational performance.
For the full fiscal year, net earnings were $293.6 million, or $7.70 per diluted share, compared with $363.7 million, or $8.99 per diluted share, in fiscal 2025. Adjusted earnings increased to $10.56 per diluted share from $10.15.
EnerSys generated $548 million in operating cash flow during fiscal 2026 and returned approximately $409 million to shareholders through dividends and share repurchases.
The company ended the year with $438.7 million in cash and cash equivalents and a net leverage ratio of 1.1 times EBITDA, down from 1.3 times a year earlier.
Chief Financial Officer Andrea Funk said strength in the company’s data center, communications, aerospace, and defense businesses offset softer conditions in motive power and transportation markets.
“We entered fiscal year 2027 with encouraging demand signals,” Funk said. “We anticipate continued price/mix strength and benefits from our EnerGize strategic initiatives, as well as strong cash flow generation and disciplined capital allocation.”
For the first quarter of fiscal 2027, EnerSys expects net sales between $915 million and $955 million and adjusted diluted earnings per share of $2.80 to $2.90, including benefits from advanced manufacturing tax credits.
The company’s board also approved a quarterly cash dividend of $0.2625 per share, payable July 2 to shareholders of record as of June 19.
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