EnerSys (ENS) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net sales were $884M, down 2% year-over-year, with adjusted operating earnings of $115M and adjusted EBITDA of $129M, both up 11% year-over-year; net earnings rose 26% to $82.3M.

• Adjusted EPS was $2.12, up 15% year-over-year; diluted EPS increased to $2.01 from $1.56.

• CEO Dave Shaffer to retire in May 2025, with Shawn O'Connell named as successor and promoted to President and COO.

• Strategic milestones included a $200M DOE award for a new lithium gigafactory, successful Bren-Tronics acquisition, and first Fast Charge & Storage system delivery.

• Board authorized a new $200M stock repurchase program and declared a $0.24/share quarterly dividend.

Financial highlights

• Q2 net sales: $884M (down 2% year-over-year); adjusted gross profit rose to $254M, with gross margin up to 28.7%.

• Adjusted operating earnings reached $115M (13% margin); adjusted EBITDA was $129M (14.6% margin).

• Net earnings for Q2: $82.3M (up from $65.2M); free cash flow was $3M after $30M CapEx.

• Cash and equivalents at period end: $408M; net debt $840M; net leverage at 1.6x.

• Gross margin improved to 28.7% from 26.6% year-over-year.

Outlook and guidance

• Q3 2025 guidance: $920M-$960M net sales, adjusted EPS $2.20-$2.30.

• FY25 revenue guidance lowered to $3.675B-$3.765B; adjusted EPS range tightened to $8.75-$9.05.

• Profitability expected to accelerate in H2, driven by volume, mix, Bren-Tronics, and operational efficiencies.

• FY25 CapEx projected at $100M-$120M; tax rate (pre-IRA) at 20–21%.

• IRA benefit for FY25 expected at $120M–$160M.