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EnerSys (ENS) investor relations material
EnerSys Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales reached $951 million in Q2 FY26, up 8% year-over-year, driven by strong growth in data center, industrial, and A&D markets, with contributions from acquisitions and favorable currency effects.
Adjusted diluted EPS rose 21% to $2.56, while reported diluted EPS fell 10% to $1.80 due to highlighted items; adjusted EPS ex 45X was $1.51, up 15%.
Operational improvements and early cost savings from the EnerGize program and restructuring initiatives, including a reduction in force, are driving margin gains and agility.
$78 million was returned to shareholders via share repurchases and dividends in Q2, with $958 million remaining in buyback authorization.
Net leverage ratio reduced to 1.3x EBITDA, below the target range, and liquidity remains strong.
Financial highlights
Q2 2026 net sales: $951.3 million, up 7.7% year-over-year, exceeding guidance.
Adjusted operating earnings grew 13% to $129.5 million; adjusted EBITDA was $146 million, up 13% year-over-year.
Adjusted gross profit was $277 million, with gross margin at 29.1%, up 40–60 basis points year-over-year.
Free cash flow surged to $197 million, up $194 million year-over-year, aided by a U.S. federal tax refund.
Cash from operating activities was $218 million, up from $33.6 million in the prior year period.
Outlook and guidance
Q3 FY26 net sales expected between $920 million and $960 million; adjusted diluted EPS guidance of $2.71–$2.81 (or $1.64–$1.74 ex 45X benefits).
Full-year CapEx expected at ~$80 million; $30–$35 million in net savings anticipated from cost reduction initiatives.
Full-year quantitative guidance remains paused due to macro uncertainty, but adjusted operating earnings growth (ex 45X) is expected to outpace revenue growth.
Assumptions include strong Data Center demand, steady Communications recovery, and robust A&D in Specialty.
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