EnerSys Reports 5.2% Net Sales Increase to $906.2 Million in Q3 Fiscal 2025

EnerSys reported a net sales increase of 5.2% for the third quarter of fiscal 2025, reaching $906.2 million, compared to $861.5 million in the same period last year. This growth was driven by a 2% rise in organic volume, a 2% increase in pricing, and a 3% contribution from acquisitions, although it was partially offset by a 2% decline due to foreign currency translation. For the nine months ending December 29, 2024, net sales decreased by 1.1% to $2.64 billion, attributed to a 1% drop in organic volume and pricing, alongside a 1% decrease from foreign currency translation, despite a 2% increase from acquisitions.

The company's gross profit for the third quarter increased by 19.9% to $298.2 million, with a gross margin of 32.9%, up from 28.9% in the prior year. This improvement was attributed to the benefits from the Inflation Reduction Act (IRA) and a favorable product mix, particularly from higher-margin maintenance-free sales and the acquisition of Bren-Tronics. Operating earnings also saw significant growth, rising 54.1% to $142.7 million for the quarter, with operating margins increasing to 15.7% from 10.7% year-over-year.

EnerSys completed the acquisition of Bren-Tronics Defense LLC on July 26, 2024, for $206 million, enhancing its capabilities in portable power solutions for military applications. This acquisition is expected to contribute positively to the Specialty segment's performance. The company also reported a strategic shift, ceasing production of residential renewable energy products to focus on commercial energy solutions, which aligns with its core strategy.

Operationally, EnerSys reported a primary operating capital of $947.4 million, representing 26.1% of annualized net sales, an increase from 23.4% at the end of the previous fiscal year. The company’s cash and cash equivalents rose to $463.2 million, bolstered by strong operating cash flows despite a decrease in cash generated from operations compared to the previous year. The company also maintained a robust liquidity position with available credit lines of approximately $375 million.

Looking ahead, EnerSys anticipates continued growth driven by demand in its Motive Power and Specialty segments, although it remains cautious about potential impacts from global economic conditions, including inflation and geopolitical tensions. The company expects to leverage its recent acquisitions and operational efficiencies to enhance profitability and market share in the coming quarters.