EnerSys Inc

Latest Results (18.05.2026):

EnerSys Inc's third quarter of fiscal 2026 (quarter ended December 28, 2025) reported net sales of $919.1M, up 1.4% year-over-year, with GAAP diluted EPS of $2.40 and adjusted diluted EPS of $2.77. The company posted a gross margin of 30.1% (26.3% excluding IRC 45X tax-credit benefits), generated strong operating cash flow and $171.3M of free cash flow in the quarter, returned roughly $93.7M to shareholders, and ended the quarter with a net leverage ratio of 1.2x. EnerSys noted softer Motive Power volumes but continued price/mix strength, margin expansion (ex-45X) and expects Q4 FY2026 net sales and adjusted EPS to be higher sequentially.

Sales

Net sales: $919.1M in Q3 FY2026 (+1.4% vs Q3 FY2025). Growth was driven by ~3% pricing and ~2% favorable FX, offset by ~4% lower organic volume (notably in Motive Power).

Margins and IRC 45X Impact

Reported gross margin: 30.1%. Gross margin excluding IRC 45X benefits: 26.3% (EnerSys recorded a $34.7M IRC 45X benefit in the quarter). Adjusted gross margin was 30.2%.

Earnings per Share

GAAP diluted EPS: $2.40 (down ~17% YoY). Adjusted diluted EPS: $2.77 (down ~11% YoY). Adjusted diluted EPS excluding IRC 45X benefit: $1.84, up 50% YoY.

Cash Flow & Capital Return

Operating cash flow: $184.6M in the quarter; free cash flow: $171.3M. Returned ~$93.7M to shareholders (share repurchases $84.1M and dividends ~$9.6M); ~$931M remaining buyback authorization as of Feb 3, 2026.

Balance Sheet & Leverage

Cash and equivalents: $450.1M; net debt: $743.3M. Net leverage ratio per credit agreement: 1.2x (below the low end of target range). Capital expenditures in Q3: $13.3M.

Segment / Operational Notes

Energy Systems and Specialty showed margin expansion and organic growth, while Motive Power experienced continued volume softness. Management cited EnerGize cost and execution initiatives as drivers of improved margins and cash generation.

Outlook

Q4 FY2026 guidance: net sales $960M–$1,000M; adjusted diluted EPS $2.95–$3.05 (inclusive of IRC 45X); adjusted diluted EPS ex 45X $1.91–$2.01. Full-year FY2026 capex expected around $80M.