EnerSys (ENS) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and FY25 adjusted EPS, with strong margin expansion and robust performance across all segments, supported by organic growth, pricing, and the Bren-Tronics acquisition.

• Full-year revenue reached $3.62 billion, with significant gains in adjusted gross margin, operating earnings, and EPS, even before 45X tax credits.

• Leadership transition: outgoing CEO David Shaffer succeeded by Shawn O'Connell, who will focus on operational discipline, customer intimacy, and targeted growth verticals.

• Strategic focus on operational efficiency, disciplined capital allocation, and growth in high-value verticals, while proactively managing macroeconomic and tariff risks.

Financial highlights

• Q4 net sales were $975 million, up 7% year-over-year, with a 4% increase in organic volume and a 4% positive impact from Bren-Tronics.

• Q4 adjusted gross profit was $304 million, up $49 million year-over-year; adjusted gross margin reached 31.2%, up 320 bps.

• Q4 adjusted operating earnings were $152 million (15.6% margin), up 40% year-over-year; adjusted EBITDA was $167 million (17.1% margin), up 34% year-over-year.

• Q4 adjusted EPS was $2.97, up 43% year-over-year; excluding 45X, a record $1.86, up 56% year-over-year.

• FY25 adjusted operating earnings were $528 million (including $185 million 45X benefit); excluding 45X, $343 million.

Outlook and guidance

• Q1 FY26 guidance: net sales of $830–$870 million and adjusted diluted EPS of $2.03–$2.13, including $35–$40 million of 45X benefits.

• Q1 expected to be the low point for the year due to seasonality and tariff disruptions, especially in motive power.

• Full-year quantitative guidance paused due to macro and tariff uncertainties; management expects full-year adjusted operating earnings growth (excluding 45X) to outpace revenue growth.

• Order book improving in Q1, with anticipated revenue lift from maintenance-free offerings, robust A&D and data center markets, and ongoing recovery in communications and transportation.