EnerSys is a global leader in stored energy solutions for industrial applications, designing, manufacturing, and distributing energy systems solutions, motive power batteries, and specialty batteries. For the fourth quarter of fiscal year 2025, EnerSys reported a net sales increase of 7% year-over-year to $975 million, marking the second-highest quarterly revenue in the company’s history. Full year revenue reached $3.6 billion, a growth of 1% compared to the previous fiscal year.

The company exhibited significant financial strength, with adjusted gross profit rising to $304 million in Q4, an increase of $49 million year-over-year. The adjusted gross margin expanded by 320 basis points to 31.2%. Adjusted operating earnings surged 48% to $152 million, with an adjusted operating margin of 15.6%. The company recorded diluted earnings per share of $2.41, a 63% increase, and adjusted diluted EPS excluding 45X tax credits reached a record $1.86 per share, growing by 43%.

During the fourth quarter, EnerSys reported a free cash flow of $105 million and positive operating cash flow of $135 million. The net leverage ratio calculated at 1.3 times EBITDA indicates a solid balance sheet, with $343 million in cash and cash equivalents on hand as of March 31, 2025. The total capital returned to shareholders in the quarter was $49.5 million, comprising $40 million in share repurchases and dividends totaling $9.5 million.

EnerSys experienced a robust performance in its Energy Systems segment, which achieved revenue growth of 8% to $399 million, with adjusted operating earnings increasing substantially to $35 million, reflecting a 400 basis point improvement in operating margin. The Motive Power segment saw flat revenue of $392 million, although adjusted operating earnings rose 15% to $67 million, driven by favorable price/mix dynamics. In the Specialty segment, revenue grew by 21% to $178 million, bolstered by the acquisition of Bren-Tronics.

Looking ahead, EnerSys provided preliminary guidance for the first quarter of fiscal 2026, expecting net sales in the range of $830 million to $870 million and anticipated adjusted diluted EPS of $2.03 to $2.13. However, it noted challenges arising from typical seasonal volume softness in Motive Power, exacerbated by tariff-related disruptions and a decline in Motive Power Americas’ orders, which fell 14% year-over-year.

In summary, EnerSys has demonstrated strong performance across various metrics in Q4 FY 2025, contributing to a stable outlook, although it is currently experiencing challenges related to product demand and market conditions influenced by tariffs.