READING, PA — EnerSys (NYSE: ENS) recently announced its financial results for the second quarter of fiscal 2024, ending October 1, 2023. Highlighting record net sales and gross margin, the company continues to demonstrate robust performance across its business segments.
In Q2 2024, EnerSys posted net sales of $901 million, marking a record for the company’s second quarter. This milestone was primarily driven by strong performance in the Motive Power segment, which offset weaker results in the Energy Systems and Specialty divisions.
The company achieved a record gross margin (GM) of 26.6%, an increase of 490 basis points, including a $22 million benefit from Inflation Reduction Act IRC 45X tax credits. Operating earnings for the period stood at $89 million, a 63% increase, while adjusted operating earnings rose 58% to $103 million.
EnerSys also saw significant growth in diluted earnings per share (EPS), which increased by 86% to $1.56. Adjusted diluted EPS also soared by 66% to $1.84. The company reduced its net leverage to 1.4 times EBITDA on an operating cash flow of $111 million, reflecting its strong financial position and ability to manage its debt effectively.
During the quarter, EnerSys received an initial order for 50 systems from its Fast Charge and Storage (FC&S) launch customer. This development indicates growing market interest in the company’s innovative energy management systems.
David M. Shaffer, President and CEO of EnerSys, praised the company’s Q2 results, attributing them to robust demand for maintenance-free products within the Motive Power segment and successful pricing strategies. He expressed optimism about the Specialty business’s future performance and noted the temporary decline in the Energy Systems segment due to paused customer capital expenditure in communication networks.
Shaffer also discussed EnerSys’s plans for a lithium battery gigafactory in the United States. He believes the new factory will provide a competitive edge by offering innovative battery solutions independent of overseas cell suppliers.
In addition to its financial results, EnerSys announced that it had won the Environmental Finance Energy Efficiency Initiative of the Year award for its lean management energy and waste reduction achievements in the EOS segment.
Furthermore, the company announced a quarterly cash dividend of $0.225 per share of common stock, payable on December 29, 2023, to holders of record as of December 15, 2023.
In a strategic leadership move, EnerSys named Chad Uplinger as President, Motive Power Global. Uplinger will oversee all aspects of the Motive Power business, further strengthening the company’s leadership team.
EnerSys’s Q2 2024 financial results reflect the company’s strategic focus and ability to navigate market dynamics effectively. The record-breaking results and leadership appointment underscore the company’s commitment to growth, innovation, and shareholder value.
More information regarding EnerSys can be found at www.enersys.com.
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