EnerSys (ENS) Jefferies Renewables, Clean Energy and E&C Conference 2026 summary

Market positioning and business segments

• Holds leading market share in backup power for data centers, telecom, utilities, and aerospace/defense, with over 50% share in most end markets.

• Three main segments: Network & Infrastructure Solutions (NIS), Industrial Mobility Solutions (IMS), and Precision Power Solutions (PPS).

• Data center and aerospace/defense markets are experiencing super cycles, driving robust order growth.

• NIS segment revenue up 9% year-on-year, with a 65% increase in adjusted operating earnings and 360 basis point margin improvement.

• PPS segment is seeing strong backlog growth due to unique lithium technologies and defense contracts.

Technology and product innovation

• Transitioning from lead-acid to lithium batteries in data centers, with both technologies expected to grow.

• Launched a lithium battery product for data centers, driven by customer demand; validations are progressing well.

• Thin Plate Pure Lead (TPPL) batteries serve as a bridge between lead-acid and lithium, offering high performance and reliability.

• Specialized lithium chemistries, such as lithium silicon cobalt disulfide, are used in advanced defense applications.

• Battery energy storage systems (BESS) are being integrated with industrial mobility solutions to address energy constraints.

Growth drivers and market trends

• Data center business expected to reach $500 million this year, with high double-digit order growth.

• DOCSIS 4.0 and broadband expansion are fueling growth in telecom and cable markets.

• Aerospace and defense growth supported by stockpile replenishment and soldier power programs.

• Material handling and transportation markets are recovering from downturns, with electric conversion and maintenance-free solutions providing tailwinds.

• Fuel cell adoption in material handling remains low, with batteries and BESS offering greater efficiency and value.