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.

• Adjusted EPS was $2.12, up 15% year-over-year, and net earnings rose 26% to $82.3M.

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

• Strategic milestones include 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).

• Adjusted EPS was $2.12, up from $1.84 in Q2'24; free cash flow was $3M, a 15% increase year-over-year.

• Cash and equivalents at period end: $408M; net debt at $840M, up due to Bren-Tronics acquisition and CapEx.

• Free cash flow conversion dropped to 3.7% from 119% in Q2'24.

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 guidance narrowed to $8.75–$9.05.

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

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

• Healthy demand in Motive Power, Data Center, and A&D; Communications and Class 8 OEM remain challenged.