EnerSys Reports Second Quarter Fiscal 2025 Results
EnerSys (ENS) reported Q2 fiscal 2025 results with net sales of $883.7M, down 1.9% year-over-year. The company achieved a gross margin of 28.5%, up 190 basis points, and delivered diluted EPS of $2.01, up 29%. Adjusted diluted EPS was $2.12, increasing 15%. Motive Power segment showed strength while Communications and Class 8 Transportation faced pressure. The company was selected for a $199M Department of Energy award negotiation for its planned lithium-ion cell facility. EnerSys updated its FY2025 guidance, projecting net sales of $3,675M to $3,765M and adjusted EPS of $8.75 to $9.05.
EnerSys (ENS) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, con vendite nette di $883,7M, in calo dell'1,9% rispetto all'anno precedente. L'azienda ha raggiunto un margine lordo del 28,5%, in aumento di 190 punti base, e ha registrato un EPS diluito di $2,01, in crescita del 29%. L'EPS diluito rettificato è stato di $2,12, con un aumento del 15%. Il segmento Power Motive ha mostrato solidità, mentre i settori Comunicazioni e Trasporto Classe 8 hanno affrontato delle pressioni. L'azienda è stata selezionata per negoziare un premio di $199M del Dipartimento dell'Energia per il suo pianificato impianto di celle agli ioni di litio. EnerSys ha aggiornato le previsioni per l'anno fiscale 2025, proiettando vendite nette tra $3,675M e $3,765M e un EPS rettificato tra $8,75 e $9,05.
EnerSys (ENS) informó los resultados del segundo trimestre del año fiscal 2025, con ventas netas de $883,7M, una disminución del 1,9% en comparación con el año anterior. La compañía logró un margen bruto del 28,5%, un aumento de 190 puntos básicos, y entregó EPS diluido de $2,01, un incremento del 29%. El EPS diluido ajustado fue de $2,12, lo que representa un aumento del 15%. El segmento de Potencia Motiva mostró fortaleza, mientras que las Comunicaciones y el Transporte Clase 8 enfrentaron presiones. La empresa fue seleccionada para una negociación de premio del Departamento de Energía de $199M para su planificada instalación de celdas de iones de litio. EnerSys actualizó su guía para el año fiscal 2025, proyectando ventas netas de $3,675M a $3,765M y EPS ajustado de $8,75 a $9,05.
EnerSys (ENS)는 2025 회계년도 2분기 실적을 보고하며 순매출이 8억 8370만 달러로 전년 대비 1.9% 감소했다고 발표했습니다. 이 회사는 총 마진 28.5%를 달성했으며, 이는 190bp 증가한 수치입니다. 희석 주당순이익 (EPS)가 $2.01로 29% 증가했습니다. 조정된 희석 EPS는 $2.12로 15% 증가했습니다. 모티브 파워 부문은 양호한 성과를 보였으나 통신 및 8급 교통 부문은 압박을 받았습니다. 이 회사는 계획된 리튬 이온 셀 시설을 위한 1억 9900만 달러의 에너지부 보조금 협상을 위해 선정되었습니다. EnerSys는 2025 회계 연도의 지침을 업데이트 하여 순매출을 36억 7500만 달러에서 37억 6500만 달러로, 조정된 EPS를 8.75달러에서 9.05달러로 예상했습니다.
EnerSys (ENS) a annoncé les résultats du deuxième trimestre de l'exercice fiscal 2025, avec un chiffre d'affaires net de 883,7 millions de dollars, en baisse de 1,9 % par rapport à l'année précédente. L'entreprise a atteint une marge brute de 28,5 %, en hausse de 190 points de base, et a réalisé un bénéfice par action dilué de 2,01 $, en hausse de 29 %. Le bénéfice par action dilué ajusté était de 2,12 $, en augmentation de 15 %. Le segment de puissance motrice a montré des signes de force, tandis que les secteurs des communications et du transport de classe 8 ont subi une pression. L'entreprise a été sélectionnée pour négocier un prix de 199 millions de dollars du Département de l'énergie pour son installation de cellules lithium-ion prévue. EnerSys a mis à jour ses prévisions pour l'exercice 2025, prévoyant un chiffre d'affaires net de 3 675 millions à 3 765 millions de dollars et un bénéfice par action ajusté de 8,75 à 9,05 $.
EnerSys (ENS) berichtete über die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 mit netto Verkaufszahlen von 883,7 Millionen US-Dollar, was einem Rückgang von 1,9% im Jahresvergleich entspricht. Das Unternehmen erreichte eine Bruttomarge von 28,5%, was einem Anstieg von 190 Basispunkten entspricht, und lieferte verwässertes Ergebnis je Aktie (EPS) von 2,01 US-Dollar, was einem Anstieg von 29% entspricht. Das bereinigte verwässerte EPS lag bei 2,12 US-Dollar und stieg um 15%. Der Bereich Motive Power zeigte Stärke, während die Bereiche Kommunikationen und Klasse 8 Transport unter Druck standen. Das Unternehmen wurde ausgewählt, um über eine 199 Millionen US-Dollar Förderung des Energieministeriums für die geplante Lithium-Ionen-Zellenanlage zu verhandeln. EnerSys aktualisierte seine Prognose für das Geschäftsjahr 2025 und erwartet netto Verkaufszahlen von 3.675 Millionen bis 3.765 Millionen US-Dollar und ein bereinigtes EPS von 8,75 bis 9,05 US-Dollar.
- Gross margin improved 190 basis points to 28.5%
- Diluted EPS increased 29% to $2.01
- Adjusted diluted EPS grew 15% to $2.12
- Selected for $199M DOE award for lithium-ion facility
- Strong net leverage ratio of 1.6X EBITDA
- Returned $73.1M to shareholders through dividends and buybacks
- Net sales decreased 1.9% to $883.7M
- Lowered full-year revenue guidance to $3,675-3,765M from $3,735-3,885M
- Reduced full-year adjusted EPS guidance to $8.75-9.05 from $8.80-9.20
- Continued weakness in Communications and Class 8 Transportation segments
- Operating cash flow declined to $34M
Insights
EnerSys delivered a mixed but generally positive Q2 FY2025 performance. Net sales declined slightly to
Key positives include Motive Power's record Q2 adjusted earnings, successful Bren-Tronics integration and a
The revised FY2025 guidance (
The company's strategic positioning in energy storage solutions aligns well with growing market demands. Segment performance shows resilience through diversification - strong Motive Power and A&D results offsetting Communications and Transportation weaknesses. The planned lithium gigafactory, supported by DOE funding, positions EnerSys advantageously in the expanding energy storage market.
Notable market indicators include improving order trends in Communications and Data Centers, stable logistics demand and defense market expansion through Bren-Tronics. While facing near-term challenges in Class 8 truck OEM market, the company's operational optimization and capacity expansion initiatives should capitalize on market recovery.
Delivers Gross Margin of
Second Quarter Fiscal 2025 Highlights
(All comparisons against the second quarter of fiscal year 2024 unless otherwise noted)
-
Delivered net sales of
, down$884M 2% , with strength in Motive Power offset by continued pressure in Communications and Class 8 Transportation -
Energy Systems improving with net sales +
6% sequentially and backlog increasing for the second consecutive quarter -
Achieved GM of
28.5% , +190 bps, including increased benefits from Inflation Reduction Act / IRC 45X tax credits, +60 bps ex IRA -
Realized diluted EPS of
, +$2.01 29% , and adjusted diluted EPS(1) of , +$2.12 15% -
Net leverage ratio(a) 1.6 X EBITDA on operating cash flow of
$34M -
Selected for
Department of Energy award negotiation to partially fund EnerSys’ planned lithium-ion cell production facility in$199M Greenville, SC - Published Climate Action Plan Roadmap, outlining Company's strategic plans to achieve carbon neutrality goals
- Announced planned executive succession; David Shaffer to retire as CEO, Shawn O’Connell named successor
(Graphic: Business Wire)
Message from the CEO |
In the second quarter, EnerSys delivered revenue and EPS which were in line with our guidance ranges and demonstrated our ability to generate strong and accelerating financial results in an uncertain market environment through our balanced business portfolio.
Energy Systems achieved sequential performance improvement, albeit with continued softness in Communications end markets, with the results of our optimization initiatives flowing through to the bottom line. We saw higher order trends in Communications and Data Centers in the
Specialty enjoyed excellent A&D results supplemented by the accretive impact of the Bren-Tronics acquisition which expands our lithium portfolio and presence in the defense market. Integration and results are exceeding our expectations. Although we grew our
We were very pleased to announce during the quarter that we were selected for a
While we expect that market uncertainty will persist through the coming months, we are confident our second half of the fiscal year is on track to outperform the first half. We are bullish about our strong position as a leading provider of energy storage solutions as we continue to deliver innovative products and services in growing end markets where the need for access to reliable power is increasing exponentially. We remain focused on delivering profitable long-term growth for our shareholders.
David M. Shaffer, Chief Executive Officer, EnerSys
Key Financial Results and Metrics |
Second quarter ended |
|
Six months ended |
||||||||||||||||
In millions, except per share amounts |
September 29, 2024 |
|
October 1, 2023 |
|
Change |
|
September 29, 2024 |
|
October 1, 2023 |
|
Change |
||||||||
Net Sales |
$ |
883.7 |
|
$ |
901.0 |
|
|
(1.9 |
)% |
|
$ |
1,736.6 |
|
$ |
1,809.6 |
|
|
(4.0 |
)% |
Diluted EPS (GAAP) |
$ |
2.01 |
|
$ |
1.56 |
|
$ |
0.45 |
|
|
$ |
3.72 |
|
$ |
3.17 |
|
$ |
0.55 |
|
Adjusted Diluted EPS (Non-GAAP)(1) |
$ |
2.12 |
|
$ |
1.84 |
|
$ |
0.28 |
|
|
$ |
4.09 |
|
$ |
3.72 |
|
$ |
0.37 |
|
Gross Profit (GAAP) |
$ |
252.1 |
|
$ |
239.6 |
|
$ |
12.5 |
|
|
$ |
490.5 |
|
$ |
479.9 |
|
$ |
10.6 |
|
Operating Earnings (GAAP) |
$ |
99.4 |
|
$ |
88.6 |
|
$ |
10.8 |
|
|
$ |
190.7 |
|
$ |
178.0 |
|
$ |
12.7 |
|
Adjusted Operating Earnings (Non-GAAP)(2) |
$ |
114.6 |
|
$ |
103.5 |
|
$ |
11.1 |
|
|
$ |
220.3 |
|
$ |
210.7 |
|
$ |
9.6 |
|
Net Earnings (GAAP) |
$ |
82.3 |
|
$ |
65.2 |
|
$ |
17.1 |
|
|
$ |
152.4 |
|
$ |
132.0 |
|
$ |
20.4 |
|
EBITDA (Non-GAAP)(3) |
$ |
122.0 |
|
$ |
108.2 |
|
$ |
13.8 |
|
|
$ |
235.8 |
|
$ |
219.5 |
|
$ |
16.3 |
|
Adjusted EBITDA (Non-GAAP)(3) |
$ |
129.0 |
|
$ |
116.4 |
|
$ |
12.6 |
|
|
$ |
250.3 |
|
$ |
238.5 |
|
$ |
11.8 |
|
Share Repurchases |
$ |
63.5 |
|
$ |
47.3 |
|
$ |
16.2 |
|
|
$ |
75.1 |
|
$ |
47.3 |
|
$ |
27.8 |
|
Dividend per share |
$ |
0.24 |
|
$ |
0.225 |
|
$ |
0.02 |
|
|
$ |
0.465 |
|
$ |
0.40 |
|
$ |
0.07 |
|
Total Capital Returned to Stockholders |
$ |
73.1 |
|
$ |
56.5 |
|
$ |
16.6 |
|
|
$ |
93.8 |
|
$ |
63.7 |
|
$ |
30.1 |
|
(a) Net leverage ratio is a non-GAAP financial measure as defined pursuant to our credit agreement and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures.
(1) Adjusted Diluted EPS is a non-GAAP financial measure and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures.
(2) Operating Earnings are adjusted for charges that the Company incurs as a result of restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and those charges and credits that are not directly related to operating unit performance. A reconciliation of operating earnings to Non-GAAP Adjusted Earnings are provided in tables under the section titled Business Segment Operating Results.
(3) Non-GAAP EBITDA is calculated as net earnings adjusted for depreciation, amortization, interest and income taxes. Non-GAAP Adjusted EBITDA is further adjusted for certain charges such as restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and other charges and credits as discussed under Reconciliations of GAAP to Non-GAAP Financial Measures.
Summary of Results
Second Quarter 2025
Net sales for the second quarter of fiscal 2025 were
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the second quarter of fiscal 2025 was
Net earnings for the second quarter of fiscal 2024 was
Excluding these highlighted items, adjusted Net earnings per diluted share for the second quarter of fiscal 2025, on a non-GAAP basis, were
Fiscal Year to Date 2025
Net sales for the six months of fiscal 2025 were
Net earnings for the six months of fiscal 2025 was
Net earnings for the six months of fiscal 2024 was
Adjusted Net earnings per diluted share for the six months of fiscal 2025, on a non-GAAP basis, were
Quarterly Dividend
The company announced today that its Board of Directors has declared a quarterly cash dividend of
Balance Sheet and Cash Flow
As of September 29, 2024, cash and cash equivalents were
The Company also returned approximately
Third Quarter and Full Year 2025 Outlook
In the third quarter of fiscal 2025, EnerSys expects:
-
Net sales in the range of
to$920M $960M -
Adjusted diluted earnings per share in the range of
to$2.20 *$2.30
For the full year fiscal 2025, EnerSys expects:
-
Net sales in the range of
to$3,675 , down from prior guidance of$3,765M to$3,735M $3,885M -
Adjusted diluted earnings per share in the range of
to$8.75 *, down from prior guidance of$9.05 to$8.80 *$9.20 -
Capital expenditures in the range of
to$100M $120M
"While we are seeing encouraging demand trends in the majority of our end markets, including improving order rates in the Communications and Data Center markets and stable trends in our Motive Power and A&D businesses, we are managing our business prudently to navigate the continued spending pause in the Class 8 truck OEM market and near-term macro uncertainty. We are excited about our progress in New Ventures, delivering our first Fast Charge and Storage (FC&S) system at the end of the second quarter, but deployment schedules have been pushed out due to installation and site readiness challenges. As a result, we are modestly lowering our revenue range for our full year fiscal 2025. As we enter the second half of the year, we expect the profitability of our baseline business to deliver accelerating returns, driven by improving volumes, favorable product mix, the accretive contribution of Bren-Tronics, continued cost improvements, and benefits from operational efficiencies flowing through to our bottom line. We are excited to advance the next phase of our lithium-ion gigafactory in
*Inclusive of IRC 45X tax benefits created with the IRA.
Please refer to the section included herein under the heading “Reconciliations of GAAP to Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information.
Conference Call and Webcast Details
The Company will host a conference call to discuss its second quarter results at 9:00 AM (ET) Thursday, November 7, 2024. A live broadcast as well as a replay of the call can be accessed via https://edge.media-server.com/mmc/p/2h25g7rf/ or the Investor Relations section of the company’s website at https://investor.enersys.com.
To join the live call, please register at https://register.vevent.com/register/BI1012cc0b2b4144b9b4ee866d5476e344. A dial-in and unique PIN will be provided upon registration.
About EnerSys
EnerSys is the global leader in stored energy solutions for industrial applications and designs, manufactures, and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. The company goes to market through four lines of business: Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive power batteries and chargers are utilized in electric forklift trucks and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, portable power solutions for soldiers in the field, large over-the-road trucks, premium automotive, medical and security systems applications. New Ventures provides energy storage and management systems for various applications including demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. To learn more about EnerSys please visit https://www.enersys.com/en/
Sustainability
Sustainability at EnerSys is about more than just the benefits and impacts of our products. Our commitment to sustainability encompasses many important environmental, social and governance issues. Sustainability is a fundamental part of how we manage our own operations. Minimizing our environmental footprint is a priority. Sustainability is our commitment to our employees, our customers and the communities we serve. Our products facilitate positive environmental, social, and economic impacts around the world. To learn more visit: https://www.enersys.com/en/about-us/sustainability/.
Caution Concerning Forward-Looking Statements
This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act, which may include, but are not limited to, statements regarding EnerSys’ earnings estimates, intention to pay quarterly cash dividends, return capital to stockholders, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, including statements identified by words such as “believe,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “will,” and similar expressions. All statements addressing operating performance, events, or developments that EnerSys expects or anticipates will occur in the future, including statements relating to sales growth, earnings or earnings per share growth, order intake, backlog, payment of future cash dividends, commodity prices, execution of its stock buyback program, judicial or regulatory proceedings, ability to identify and realize benefits in connection with acquisition and disposition opportunities, and market share, as well as statements expressing optimism or pessimism about future operating results or benefits from its cash dividend, its stock buyback programs, application of Section 45X of the Internal Revenue Code, future responses to and effects of the pandemic, adverse developments with respect to the economic conditions in the
Although EnerSys does not make forward-looking statements unless it believes it has a reasonable basis for doing so, EnerSys cannot guarantee their accuracy. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors which could affect EnerSys’ results, including earnings estimates, see EnerSys’ filings with the Securities and Exchange Commission, including “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2024. No undue reliance should be placed on any forward-looking statements.
EnerSys Consolidated Condensed Statements of Income (Unaudited) (In millions, except share and per share data) |
|||||||||||
|
Quarter ended |
|
Six months ended |
||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||
Net sales |
$ |
883.7 |
|
$ |
901.0 |
|
$ |
1,736.6 |
|
$ |
1,809.6 |
Gross profit |
|
252.1 |
|
$ |
239.6 |
|
$ |
490.5 |
|
$ |
479.9 |
Operating expenses |
|
150.5 |
|
$ |
143.8 |
|
$ |
291.7 |
|
$ |
288.4 |
Restructuring and other exit charges |
|
2.2 |
|
$ |
7.2 |
|
$ |
8.1 |
|
$ |
13.5 |
Operating earnings |
|
99.4 |
|
$ |
88.6 |
|
$ |
190.7 |
|
$ |
178.0 |
Earnings before income taxes |
|
84.2 |
|
$ |
73.4 |
|
$ |
163.5 |
|
$ |
146.9 |
Income tax expense |
|
1.9 |
|
$ |
8.2 |
|
$ |
11.1 |
|
$ |
14.9 |
Net earnings attributable to EnerSys stockholders |
$ |
82.3 |
|
$ |
65.2 |
|
$ |
152.4 |
|
$ |
132.0 |
|
|
|
|
|
|
|
|
||||
Net reported earnings per common share attributable to EnerSys stockholders: |
|
|
|
|
|
|
|
||||
Basic |
$ |
2.05 |
|
$ |
1.59 |
|
$ |
3.79 |
|
$ |
3.23 |
Diluted |
$ |
2.01 |
|
$ |
1.56 |
|
$ |
3.72 |
|
$ |
3.17 |
Dividends per common share |
$ |
0.24 |
|
$ |
0.225 |
|
$ |
0.465 |
|
$ |
0.40 |
Weighted-average number of common shares used in reported earnings per share calculations: |
|
|
|
|
|
|
|
||||
Basic |
|
40,165,080 |
|
|
40,922,959 |
|
|
40,184,546 |
|
|
40,930,146 |
Diluted |
|
40,863,205 |
|
|
41,684,634 |
|
|
40,924,660 |
|
|
41,691,479 |
EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) |
||||||||
|
|
September 29, 2024 |
|
March 31, 2024 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
407,919 |
|
|
$ |
333,324 |
|
Accounts receivable, net of allowance for doubtful accounts: September 29, 2024 - |
|
|
549,011 |
|
|
|
524,725 |
|
Inventories, net |
|
|
763,516 |
|
|
|
697,698 |
|
Prepaid and other current assets |
|
|
335,923 |
|
|
|
226,949 |
|
Total current assets |
|
|
2,056,369 |
|
|
|
1,782,696 |
|
Property, plant, and equipment, net |
|
|
582,298 |
|
|
|
532,450 |
|
Goodwill |
|
|
738,603 |
|
|
|
682,934 |
|
Other intangible assets, net |
|
|
395,411 |
|
|
|
319,407 |
|
Deferred taxes |
|
|
55,090 |
|
|
|
49,798 |
|
Other assets |
|
|
123,261 |
|
|
|
98,721 |
|
Total assets |
|
$ |
3,951,032 |
|
|
$ |
3,466,006 |
|
Liabilities and Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Short-term debt |
|
$ |
30,080 |
|
|
$ |
30,444 |
|
Accounts payable |
|
|
333,671 |
|
|
|
369,456 |
|
Accrued expenses |
|
|
328,687 |
|
|
|
323,957 |
|
Total current liabilities |
|
|
692,438 |
|
|
|
723,857 |
|
Long-term debt, net of unamortized debt issuance costs |
|
|
1,202,583 |
|
|
|
801,965 |
|
Deferred taxes |
|
|
34,836 |
|
|
|
30,583 |
|
Other liabilities |
|
|
179,579 |
|
|
|
152,529 |
|
Total liabilities |
|
|
2,109,436 |
|
|
|
1,708,934 |
|
Commitments and contingencies |
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Preferred Stock, |
|
|
— |
|
|
|
— |
|
Common Stock, |
|
|
567 |
|
|
|
564 |
|
Additional paid-in capital |
|
|
644,162 |
|
|
|
629,879 |
|
Treasury stock at cost, 16,866,664 shares held as of September 29, 2024 and 16,091,988 shares held as of March 31, 2024 |
|
|
(910,650 |
) |
|
|
(835,827 |
) |
Retained earnings |
|
|
2,297,431 |
|
|
|
2,163,880 |
|
Accumulated other comprehensive loss |
|
|
(193,443 |
) |
|
|
(204,851 |
) |
Total EnerSys stockholders’ equity |
|
|
1,838,067 |
|
|
|
1,753,645 |
|
Nonredeemable noncontrolling interests |
|
|
3,529 |
|
|
|
3,427 |
|
Total equity |
|
|
1,841,596 |
|
|
|
1,757,072 |
|
Total liabilities and equity |
|
$ |
3,951,032 |
|
|
$ |
3,466,006 |
|
EnerSys Consolidated Condensed Statements of Cash Flows (Unaudited) (In Thousands) |
||||||||
|
|
Six months ended |
||||||
|
|
September 29, 2024 |
|
October 1, 2023 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net earnings |
|
$ |
152,377 |
|
|
$ |
132,026 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
48,757 |
|
|
|
45,214 |
|
Write-off of assets relating to exit activities |
|
|
244 |
|
|
|
4,146 |
|
Derivatives not designated in hedging relationships: |
|
|
|
|
||||
Net losses (gains) |
|
|
(1,783 |
) |
|
|
1,204 |
|
Cash (settlements) proceeds |
|
|
1,320 |
|
|
|
695 |
|
Provision for doubtful accounts |
|
|
1,124 |
|
|
|
1,456 |
|
Deferred income taxes |
|
|
114 |
|
|
|
46 |
|
Non-cash interest expense |
|
|
969 |
|
|
|
820 |
|
Stock-based compensation |
|
|
12,187 |
|
|
|
13,077 |
|
(Gain) loss on disposal of property, plant, and equipment |
|
|
64 |
|
|
|
158 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(9,323 |
) |
|
|
93,368 |
|
Inventories |
|
|
(12,401 |
) |
|
|
10,529 |
|
Prepaid and other current assets |
|
|
(26,201 |
) |
|
|
(13,891 |
) |
Other assets |
|
|
968 |
|
|
|
(1,306 |
) |
Accounts payable |
|
|
(40,104 |
) |
|
|
(57,233 |
) |
Accrued expenses |
|
|
(83,963 |
) |
|
|
(44,803 |
) |
Other liabilities |
|
|
(303 |
) |
|
|
217 |
|
Net cash provided by (used in) operating activities |
|
|
44,046 |
|
|
|
185,723 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures |
|
|
(66,486 |
) |
|
|
(35,854 |
) |
Purchase of business |
|
|
(205,276 |
) |
|
|
(8,270 |
) |
Proceeds from disposal of property, plant, and equipment |
|
|
89 |
|
|
|
2,007 |
|
Investment in Equity Securities |
|
|
(10,852 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(282,525 |
) |
|
|
(42,117 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Net (repayments) borrowings on short-term debt |
|
|
(434 |
) |
|
|
(61 |
) |
Proceeds from Second Amended Revolver borrowings |
|
|
476,600 |
|
|
|
172,500 |
|
Repayments of Second Amended Revolver borrowings |
|
|
(76,600 |
) |
|
|
(252,500 |
) |
Repayments of Second and Third Amended Term Loans |
|
|
— |
|
|
|
(12,736 |
) |
Finance lease obligations |
|
|
(8 |
) |
|
|
— |
|
Option proceeds, net |
|
|
7,445 |
|
|
|
9,668 |
|
Payment of taxes related to net share settlement of equity awards |
|
|
(7,984 |
) |
|
|
(7,348 |
) |
Purchase of treasury stock |
|
|
(75,187 |
) |
|
|
(47,340 |
) |
Issuance of treasury stock- ESPP |
|
|
537 |
|
|
|
— |
|
Dividends paid to stockholders |
|
|
(18,598 |
) |
|
|
(16,341 |
) |
PPD Deferred Financing on Bond Issue-Legal Fees |
|
|
(351 |
) |
|
|
— |
|
Other |
|
|
(166 |
) |
|
|
690 |
|
Net cash (used in) financing activities |
|
|
305,254 |
|
|
|
(153,468 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
7,820 |
|
|
|
(9,052 |
) |
Net decrease in cash and cash equivalents |
|
|
74,595 |
|
|
|
(18,914 |
) |
Cash and cash equivalents at beginning of period |
|
|
333,324 |
|
|
|
346,665 |
|
Cash and cash equivalents at end of period |
|
$ |
407,919 |
|
|
$ |
327,751 |
|
|
|
|
|
|
Reconciliations of GAAP to Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with
Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances. For those items which are non-taxable, the tax expense (benefit) is calculated at
EnerSys does not provide a quantitative reconciliation of the Company’s projected range for adjusted diluted earnings per share for the third quarter and full year of fiscal 2025 to diluted earnings per share, which is the most directly comparable GAAP measure, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. EnerSys' adjusted diluted earnings per share guidance for the third quarter and full year of fiscal 2025 excludes certain items, including but not limited to certain non-cash, large and/or unpredictable charges and benefits, charges from restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles, acquisition and disposition activities, legal judgments, settlements, or other matters, and tax positions, that are inherently uncertain and difficult to predict, can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities. Due to the uncertainty of the occurrence or timing of these future excluded items, management cannot accurately forecast many of these items for internal use and therefore cannot create a quantitative adjusted diluted earnings per share for the third quarter and full year of fiscal 2025 to diluted earnings per share reconciliation without unreasonable efforts.
These non-GAAP disclosures have limitations as an analytical tool, should not be viewed as a substitute for operating earnings, Net earnings or net income determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding the Company's ongoing operating results. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to Net earnings determined in accordance with GAAP.
A reconciliation of non-GAAP adjusted operating earnings is set forth in the table below, providing a reconciliation of non-GAAP adjusted operating earnings to the Company’s reported operating results for its business segments. Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRA production tax credits. Also, included are start up costs for exploration of a new lithium plant as well as start-up operating expenses from the New Ventures operating segment.
Business Segment Operating Results
|
Quarter ended |
|||||||||||||
|
($ millions) |
|||||||||||||
|
September 29, 2024 |
|||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
$ |
382.1 |
|
$ |
366.7 |
|
$ |
134.9 |
|
$ |
— |
|
$ |
883.7 |
|
|
|
|
|
|
|
|
|
|
|||||
Operating Earnings |
$ |
17.5 |
|
$ |
56.3 |
|
$ |
0.3 |
|
$ |
25.3 |
|
$ |
99.4 |
Inventory step up to fair value relating to recent acquisitions |
|
— |
|
|
— |
|
|
1.9 |
|
|
— |
|
$ |
1.9 |
Restructuring and other exit charges |
|
0.7 |
|
|
1.1 |
|
|
0.4 |
|
|
— |
|
|
2.2 |
Amortization of intangible assets |
|
6.0 |
|
|
0.2 |
|
|
2.0 |
|
|
— |
|
|
8.2 |
Integration costs |
|
— |
|
|
— |
|
|
1.8 |
|
|
— |
|
|
1.8 |
Acquisition activity expense |
|
— |
|
|
— |
|
|
1.1 |
|
|
— |
|
|
1.1 |
Adjusted Operating Earnings |
$ |
24.2 |
|
$ |
57.6 |
|
$ |
7.5 |
|
$ |
25.3 |
|
$ |
114.6 |
|
Quarter ended |
|||||||||||||
|
($ millions) |
|||||||||||||
|
October 1, 2023 |
|||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
$ |
422.5 |
|
$ |
355.2 |
|
$ |
123.3 |
|
$ |
— |
|
$ |
901.0 |
|
|
|
|
|
|
|
|
|
|
|||||
Operating Earnings |
$ |
16.8 |
|
$ |
49.6 |
|
$ |
3.3 |
|
$ |
18.9 |
|
$ |
88.6 |
Restructuring and other exit charges |
|
2.2 |
|
|
3.5 |
|
|
1.5 |
|
|
— |
|
|
7.2 |
Amortization of intangible assets |
|
6.3 |
|
|
0.2 |
|
|
0.7 |
|
|
— |
|
|
7.2 |
Integration costs |
|
0.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.2 |
Acquisition activity expense |
|
— |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
0.1 |
Other |
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
— |
|
|
0.2 |
Adjusted Operating Earnings |
$ |
25.6 |
|
$ |
53.4 |
|
$ |
5.6 |
|
$ |
18.9 |
|
$ |
103.5 |
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) as a % from prior year quarter |
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
(9.6 |
)% |
|
3.2 |
% |
|
9.3 |
% |
|
— |
% |
|
(1.9 |
)% |
Operating Earnings |
4.4 |
|
|
13.5 |
|
|
(92.3 |
) |
|
33.8 |
|
|
12.2 |
|
Adjusted Operating Earnings |
(4.7 |
) |
|
7.7 |
|
|
31.3 |
|
|
33.8 |
|
|
10.7 |
|
NM = Not Meaningful |
|
Six months ended |
|||||||||||||
|
($ millions) |
|||||||||||||
|
September 29, 2024 |
|||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
$ |
743.1 |
|
$ |
732.9 |
|
$ |
260.6 |
|
$ |
0.0 |
|
$ |
1,736.6 |
|
|
|
|
|
|
|
|
|
|
|||||
Operating Earnings |
$ |
26.5 |
|
$ |
110.7 |
|
$ |
2.4 |
|
$ |
51.1 |
|
$ |
190.7 |
Inventory step up to fair value relating to recent acquisitions |
|
— |
|
|
— |
|
|
1.9 |
|
|
— |
|
|
1.9 |
Restructuring and other exit charges |
|
4.5 |
|
|
2.5 |
|
|
1.1 |
|
|
— |
|
|
8.1 |
Amortization of intangible assets |
|
12.0 |
|
|
0.4 |
|
|
2.7 |
|
|
— |
|
|
15.1 |
Integration costs |
|
0.2 |
|
|
— |
|
|
1.8 |
|
|
— |
|
|
2.0 |
Acquisition activity expense |
|
— |
|
|
— |
|
|
2.5 |
|
|
— |
|
2.5 |
|
Adjusted Operating Earnings |
$ |
43.2 |
|
$ |
113.6 |
|
$ |
12.4 |
|
$ |
51.1 |
|
$ |
220.3 |
|
Six months ended |
|||||||||||||
|
($ millions) |
|||||||||||||
|
October 1, 2023 |
|||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
$ |
847.1 |
|
$ |
706.0 |
|
$ |
256.5 |
|
$ |
0.0 |
|
$ |
1,809.6 |
|
|
|
|
|
|
|
|
|
|
|||||
Operating Earnings |
$ |
39.0 |
|
$ |
97.8 |
|
$ |
4.9 |
|
$ |
36.3 |
|
$ |
178.0 |
Inventory adjustment relating to exit activities |
|
— |
|
|
— |
|
|
3.1 |
|
|
— |
|
|
3.1 |
Restructuring and other exit charges |
|
2.7 |
|
|
5.0 |
|
|
5.8 |
|
|
— |
|
|
13.5 |
Amortization of intangible assets |
|
12.5 |
|
|
0.3 |
|
|
1.4 |
|
|
— |
|
|
14.2 |
Integration costs |
|
0.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.3 |
Acquisition activity expense |
|
— |
|
|
0.2 |
|
|
— |
|
|
— |
|
|
0.2 |
Other |
|
0.8 |
|
|
0.4 |
|
|
0.2 |
|
|
— |
|
|
1.4 |
Adjusted Operating Earnings |
$ |
55.3 |
|
$ |
103.7 |
|
$ |
15.4 |
|
$ |
36.3 |
|
$ |
210.7 |
Increase (Decrease) as a % from prior year |
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
(12.3 |
)% |
|
3.8 |
% |
|
1.5 |
% |
|
— |
% |
|
(4.0 |
)% |
Operating Earnings |
(31.8 |
) |
|
13.1 |
|
|
(52.5 |
) |
|
40.8 |
|
|
7.1 |
|
Adjusted Operating Earnings |
(21.5 |
) |
|
9.4 |
|
|
(20.6 |
) |
|
40.8 |
|
|
4.5 |
|
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited)
The table below presents a reconciliation of Net Earnings to EBITDA and Adjusted EBITDA:
|
Quarter ended |
|
Six months ended |
||||||||
|
($ millions) |
|
($ millions) |
||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||
Net Earnings |
|
82.3 |
|
$ |
65.2 |
|
$ |
152.4 |
|
$ |
132.0 |
Depreciation |
|
17.1 |
|
|
15.4 |
|
|
33.7 |
|
|
31.0 |
Amortization |
|
8.2 |
|
|
7.2 |
|
|
15.1 |
|
|
14.2 |
Interest |
|
12.5 |
|
|
12.2 |
|
|
23.5 |
|
|
27.4 |
Income Taxes |
|
1.9 |
|
|
8.2 |
|
|
11.1 |
|
|
14.9 |
EBITDA |
|
122.0 |
|
|
108.2 |
|
|
235.8 |
|
|
219.5 |
Non-GAAP adjustments |
|
7.0 |
|
|
8.2 |
|
|
14.5 |
|
|
19.0 |
Adjusted EBITDA |
$ |
129.0 |
|
$ |
116.4 |
|
$ |
250.3 |
|
$ |
238.5 |
The following table provides the non-GAAP adjustments shown in the reconciliation above:
Quarter ended |
|
Six months ended |
|||||||||
|
($ millions) |
|
($ millions) |
||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||
Inventory adjustment relating to exit activities |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3.1 |
Inventory step up to fair value relating to recent acquisitions |
|
1.9 |
|
|
— |
|
|
1.9 |
|
|
— |
Restructuring and other exit charges |
|
2.2 |
|
|
7.2 |
|
|
8.1 |
|
|
13.5 |
Integration Costs |
|
1.8 |
|
|
0.2 |
|
|
2.0 |
|
|
0.3 |
Acquisition expense |
|
1.1 |
|
|
0.1 |
|
$ |
2.5 |
|
|
0.2 |
Other |
|
— |
|
|
0.7 |
|
$ |
— |
|
|
1.9 |
Non-GAAP adjustments |
$ |
7.0 |
|
$ |
8.2 |
|
$ |
14.5 |
|
$ |
19.0 |
The table below presents a reconciliation of Gross Profit and Gross Margin to Adjusted Gross Profit and Adjusted Gross Margin:
Quarter ended |
|
Six months ended |
|||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||||||
Gross Profit as reported |
$ |
252.1 |
|
|
$ |
239.6 |
|
|
$ |
490.5 |
|
|
$ |
479.9 |
|
Inventory adjustment relating to exit activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.1 |
|
Inventory step up to fair value relating to recent acquisitions |
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
Adjusted Gross Profit |
|
254.0 |
|
|
|
239.6 |
|
|
|
492.4 |
|
|
|
483.0 |
|
|
|
|
|
|
|
|
|
||||||||
Gross Margin |
|
28.5 |
% |
|
|
26.6 |
% |
|
|
28.2 |
% |
|
|
26.5 |
% |
Adjusted Gross Margin |
|
28.7 |
% |
|
|
26.6 |
% |
|
|
28.4 |
% |
|
|
26.7 |
% |
The table below presents a reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow Conversion percentages:
|
Quarter ended |
|
Six months ended |
||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||||||
Net cash provided by (used in) operating activities |
$ |
33.6 |
|
|
$ |
110.8 |
|
|
$ |
44.0 |
|
|
$ |
185.7 |
|
Less Capital Expenditures |
|
(30.4 |
) |
|
|
(19.8 |
) |
|
|
(66.5 |
) |
|
|
(35.9 |
) |
Free Cash Flow |
|
3.2 |
|
|
|
91.0 |
|
|
|
(22.5 |
) |
|
|
149.8 |
|
|
Quarter ended |
|
Six months ended |
||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||||||
Net cash provided by (used in) operating activities |
$ |
33.6 |
|
|
$ |
110.8 |
|
|
$ |
44.0 |
|
|
$ |
185.7 |
|
Net earnings |
|
82.3 |
|
|
|
65.2 |
|
|
|
152.4 |
|
|
|
132.0 |
|
Operating cash flow conversion % |
|
40.8 |
% |
|
|
169.9 |
% |
|
|
28.9 |
% |
|
|
140.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Free cash flow |
|
3.2 |
|
|
|
91.0 |
|
|
|
(22.5 |
) |
|
|
149.8 |
|
Adjusted net earnings |
|
86.5 |
|
|
|
76.5 |
|
|
|
167.5 |
|
|
|
155.1 |
|
Adjusted free cash flow conversion % |
|
3.7 |
% |
|
|
119.0 |
% |
|
|
(13.4 |
)% |
|
|
96.6 |
% |
The following table provides a reconciliation of Net earnings to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) per credit agreement for September 29, 2024 and October 1, 2023 to calculate our net leverage ratio, in connection with the Fourth Amended Credit Facility:
|
|
Last twelve months |
||||
|
|
September 29, 2024 |
|
October 1, 2023 |
||
|
|
(in millions, except ratios) |
||||
Net earnings as reported |
|
$ |
289.5 |
|
$ |
242.4 |
Add back: |
|
|
|
|
||
Depreciation and amortization |
|
|
95.6 |
|
$ |
90.0 |
Interest expense |
|
|
46.0 |
|
$ |
59.9 |
Income tax expense |
|
|
19.3 |
|
|
38.2 |
EBITDA (non-GAAP) |
|
|
450.4 |
|
$ |
430.5 |
Adjustments per credit agreement definitions(1) |
|
|
79.9 |
|
|
48.9 |
Adjusted EBITDA (non-GAAP) per credit agreement(1) |
|
$ |
530.3 |
|
|
479.4 |
Total net debt(2) |
|
|
839.6 |
|
|
662.0 |
Leverage ratios: |
|
|
|
|
||
Total net debt/credit adjusted EBITDA ratio |
|
1.6 X |
|
1.4 X |
(1) |
The |
(2) |
Debt includes finance lease obligations and letters of credit and is net of all |
Included below is a reconciliation of historical non-GAAP adjusted Net earnings to reported amounts. Non-GAAP adjusted operating earnings and historical Net earnings are calculated excluding restructuring and other highlighted charges and credits. The following tables provide additional information regarding certain non-GAAP measures:
|
Quarter ended |
|
||||||
|
(in millions, except share and per share amounts) |
|
||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
||||
Net earnings reconciliation |
|
|
|
|
||||
As reported Net Earnings |
$ |
82.3 |
|
|
$ |
65.2 |
|
|
Non-GAAP adjustments: |
|
|
|
|
||||
Inventory step up to fair value relating to recent acquisitions |
|
1.9 |
|
(1) |
|
— |
|
|
Restructuring and other exit charges |
|
2.2 |
|
(1) |
|
7.2 |
|
(1) |
Amortization of identified intangible assets |
|
8.2 |
|
(2) |
|
7.2 |
|
(2) |
Acquisition expense |
|
1.1 |
|
(3) |
|
0.1 |
|
(3) |
Integration costs |
|
1.8 |
|
(4) |
|
0.2 |
|
(4) |
Other |
|
— |
|
|
|
0.7 |
|
|
Income tax benefit from tax law changes and litigation |
|
(6.8 |
) |
|
|
— |
|
|
Income tax effect of above non-GAAP adjustments |
|
(4.2 |
) |
|
|
(4.1 |
) |
|
Non-GAAP adjusted Net earnings |
$ |
86.5 |
|
|
$ |
76.5 |
|
|
|
|
|
|
|
||||
Outstanding shares used in per share calculations |
|
|
|
|
||||
Basic |
|
40,165,080 |
|
|
|
40,922,959 |
|
|
Diluted |
|
40,863,205 |
|
|
|
41,684,634 |
|
|
Non-GAAP adjusted Net earnings per share: |
|
|
|
|
||||
Basic |
$ |
2.15 |
|
|
$ |
1.87 |
|
|
Diluted |
$ |
2.12 |
|
|
$ |
1.84 |
|
|
|
|
|
|
|
||||
Reported Net earnings (Loss) per share: |
|
|
|
|
||||
Basic |
$ |
2.05 |
|
|
$ |
1.59 |
|
|
Diluted |
$ |
2.01 |
|
|
$ |
1.56 |
|
|
Dividends per common share |
$ |
0.24 |
|
|
$ |
0.225 |
|
|
The following table provides the line of business allocation of the non-GAAP adjustments of items relating operating earnings (that are allocated to lines of business) shown in the reconciliation above:
|
|
Quarter ended |
||||
|
|
($ millions) |
||||
|
|
September 29, 2024 |
|
October 1, 2023 |
||
|
|
Pre-tax |
|
Pre-tax |
||
(1) Inventory step up to fair value relating to recent acquisitions - Specialty |
|
|
1.9 |
|
|
— |
(1) Restructuring and other exit charges - Energy Systems |
|
|
0.7 |
|
|
2.2 |
(1) Restructuring and other exit charges - Motive Power |
|
|
1.1 |
|
|
3.5 |
(1) Restructuring and other exit charges - Specialty |
|
|
0.4 |
|
|
1.5 |
(2) Amortization of identified intangible assets - Energy Systems |
|
|
6.0 |
|
|
6.3 |
(2) Amortization of identified intangible assets - Motive Power |
|
|
0.2 |
|
|
0.2 |
(2) Amortization of identified intangible assets - Specialty |
|
|
2.0 |
|
|
0.7 |
(3) Acquisition expense - Motive Power |
|
|
— |
|
|
0.1 |
(3) Acquisition expense - Specialty |
|
|
1.1 |
|
|
— |
(4) Integration costs - Energy Systems |
|
|
— |
|
|
0.2 |
(4) Integration costs - Specialty |
|
|
1.8 |
|
|
— |
Total Non-GAAP adjustments |
|
$ |
15.2 |
|
$ |
14.7 |
|
Six months ended |
|
||||||
|
(in millions, except share and per share amounts) |
|
||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
||||
Net Earnings reconciliation |
|
|
|
|
||||
As reported Net Earnings |
$ |
152.4 |
|
|
$ |
132.0 |
|
|
Non-GAAP adjustments: |
|
|
|
|
||||
Inventory step up to fair value relating to recent acquisitions |
|
1.9 |
|
(1) |
|
|
||
Inventory adjustment relating to exit activities |
|
— |
|
|
|
3.1 |
|
(1) |
Restructuring and other exit charges |
|
8.1 |
|
(1) |
|
13.5 |
|
(1) |
Amortization of identified intangible assets |
|
15.1 |
|
(2) |
|
14.2 |
|
(2) |
Acquisition activity expense |
|
2.5 |
|
(3) |
|
0.2 |
|
(3) |
Integration costs |
|
2.0 |
|
(4) |
|
0.3 |
|
(4) |
Other |
|
— |
|
|
|
1.9 |
|
|
Income tax benefit from tax law changes and litigation |
|
(6.8 |
) |
|
|
— |
|
|
Income tax effect of above non-GAAP adjustments |
|
(7.7 |
) |
|
|
(10.1 |
) |
|
Non-GAAP adjusted Net Earnings |
$ |
167.5 |
|
|
$ |
155.1 |
|
|
|
|
|
|
|
||||
Outstanding shares used in per share calculations |
|
|
|
|
||||
Basic |
|
40,184,546 |
|
|
|
40,930,146 |
|
|
Diluted |
|
40,924,660 |
|
|
|
41,691,479 |
|
|
Non-GAAP adjusted Net Earnings per share: |
|
|
|
|
||||
Basic |
$ |
4.17 |
|
|
$ |
3.79 |
|
|
Diluted |
$ |
4.09 |
|
|
$ |
3.72 |
|
|
|
|
|
|
|
||||
Reported Net Earnings (Loss) per share: |
|
|
|
|
||||
Basic |
$ |
3.79 |
|
|
$ |
3.23 |
|
|
Diluted |
$ |
3.72 |
|
|
$ |
3.17 |
|
|
Dividends per common share |
$ |
0.465 |
|
|
$ |
0.40 |
|
|
The following table provides the line of business allocation of the non-GAAP adjustments of items relating operating earnings (that are allocated to lines of business) shown in the reconciliation above:
|
|
Six months ended |
||||
|
|
($ millions) |
||||
|
|
September 29, 2024 |
|
October 1, 2023 |
||
|
|
Pre-tax |
|
Pre-tax |
||
(1) Inventory step up to fair value relating to recent acquisitions - Specialty |
|
|
1.9 |
|
|
— |
(1) Inventory Adjustment relating to exit activities - Specialty |
|
|
— |
|
|
3.1 |
(1) Restructuring and other exit charges - Energy Systems |
|
|
4.5 |
|
|
2.7 |
(1) Restructuring and other exit charges - Motive Power |
|
|
2.5 |
|
|
5.0 |
(1) Restructuring and other exit charges - Specialty |
|
|
1.1 |
|
|
5.8 |
(2) Amortization of identified intangible assets - Energy Systems |
|
|
12.0 |
|
|
12.5 |
(2) Amortization of identified intangible assets - Motive Power |
|
|
0.4 |
|
|
0.3 |
(2) Amortization of identified intangible assets - Specialty |
|
|
2.7 |
|
|
1.4 |
(3) Acquisition expense - Motive Power |
|
|
— |
|
|
0.2 |
(3) Acquisition expense - Specialty |
|
|
2.5 |
|
|
— |
(4) Integration costs - Energy Systems |
|
|
0.2 |
|
|
0.3 |
(4) Integration costs - Specialty |
|
|
1.8 |
|
|
— |
Total Non-GAAP adjustments |
|
$ |
29.6 |
|
$ |
31.3 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106205282/en/
Lisa Hartman
Vice President, Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
Source: Enersys
FAQ
What was EnerSys (ENS) revenue in Q2 fiscal 2025?
How much did EnerSys (ENS) earn per share in Q2 fiscal 2025?
What is EnerSys (ENS) full-year 2025 guidance?