EnerSys (ENS) Q4 2026 earnings summary

Executive summary

• Achieved record full-year net sales of $3.8B (up 4% YoY), record adjusted operating earnings, and record adjusted diluted EPS, both including and excluding IRC 45X tax credits, despite softness in key end markets like electric forklifts and transportation.

• Highest quarterly adjusted EPS (excluding 45X) on second highest quarterly revenue in Q4'26.

• Strategic framework implementation and operational improvements drove cost savings, supply chain flexibility, and resilience across diversified end markets.

• Returned $409M to shareholders in FY26 through buybacks and dividends.

• Advanced new product pipeline, including BESS for warehouse operators and lithium data center solutions, both in customer commissioning.

Financial highlights

• Q4 net sales were $988M (up 1% YoY); full-year net sales reached $3.8B (up 4% YoY).

• Q4 adjusted gross profit was $292M (down 4%), with adjusted gross margin at 29.5% (down 170 bps with 45X, 190 bps without).

• Q4 adjusted operating earnings were $154M (up 1%), with a 15.6% margin; adjusted EBITDA was $173M (up 3%).

• Q4 adjusted diluted EPS reached $3.19 (up 7%); full-year adjusted diluted EPS was $10.56 (up 4%). Excluding 45X, full-year adjusted EPS was $6.41 (up 15%).

• FY26 free cash flow was $468M, up $328M YoY, with conversion of 108.8%.

Outlook and guidance

• Q1 FY27 net sales expected between $915M–$955M; adjusted diluted EPS guidance of $2.80–$2.90 (including $42–$47M 45X), or $1.61–$1.71 excluding 45X.

• Full-year FY27 guidance anticipates adjusted operating earnings growth (excluding 45X) to outpace revenue growth, supported by OPEX discipline and improving end markets.

• FY27 capital expenditures projected at ~$70M.

• Management expects continued price/mix strength, strong cash flow, and disciplined capital allocation.

• Cautious optimism for recovery in forklift and transportation markets, with growth expected as FY27 progresses.