EnerSys (ENS) The 44th Annual William Blair Growth Stock Conference summary

Strategic transformation and growth drivers

• Transitioned from lead-acid battery focus to a diversified energy system solutions provider, leveraging proprietary lithium and Thin Plate Pure Lead technologies.

• Four business lines target megatrends: energy systems, specialty (transportation, defense), motive power (forklifts), and new ventures (battery energy storage, EV charging).

• Core technology platforms—energy storage, power electronics, and software—are modular and applied across all segments.

• Growth fueled by electrification, digitization, automation, AI, and global demand for reliable, resilient power.

• Emphasis on sustainability, with significant reductions in emissions and increased female leadership.

Financial performance and outlook

• Fiscal 2024 EPS rose to $8.35 from $5.34, with strong cash flow and margin expansion despite a 3% sales decline due to telecom/broadband investment pauses.

• Q4 net sales were $911 million; full-year net sales $3.6 billion, down 8% and 3% respectively.

• Adjusted EBITDA for FY24 was $507 million, up from $388 million in FY23; IRA benefits contributed $136 million.

• Fiscal 2025 guidance: net sales $3.675–$3.825 billion, adjusted EPS $8.55–$8.95.

• Fiscal 2027 EPS target reiterated at $11–$13, with upside from acquisitions and reinvestment.

Innovation, investments, and new ventures

• Fast Charge and Storage business expected to generate $400–$700 million annual revenue by FY27; first revenue anticipated in 2H FY25.

• Initial 50-system order from launch customer Landmark, with average sale price $750,000–$1.5 million per system; Landmark could cumulatively purchase $1 billion in equipment and services.

• Exploring expansion into data centers and planning a U.S. lithium battery plant, with grant application results expected by late summer.

• Recent agreement to acquire Bren-Tronics, expanding lithium offerings and defense market presence; deal expected to close by end of Q1.

• Integration of new ventures and acquisitions expected to be seamless and accretive to results.