10-Q · May 5, 2026
Energizer Holdings, Inc. reported Q2 2026 earnings with revenue at $643.3 million, missing analyst expectations of $662.5 million, and an EPS of $0.15 compared to an estimate of $0.47. The company highlighted an…
Earnings analysis · 10-Q
ENR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Energizer delivered Q3 revenue of $734.1 million, up 1.2% year over year, but GAAP EPS declined to $0.58 from $2.13 and adjusted EPS declined to $0.75 from $1.13. Sales momentum was concentrated in Auto Care, whose…
Read full summary
Energizer delivered Q3 revenue of $734.1 million, up 1.2% year over year, but GAAP EPS declined to $0.58 from $2.13 and adjusted EPS declined to $0.75 from $1.13. Sales momentum was concentrated in Auto Care, whose $209.9 million of revenue grew 10.4%, while Batteries & Lights segment profit fell 19.5% to $127.9 million. Liquidity improved through $156.0 million of nine-month operating cash flow and $96.5 million of term-loan repayment, but margin pressure, restructuring costs, tariff uncertainty and weaker segment profit support a bearish trend assessment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.58
- Gross margin
- 38.2%
What stood out
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Organic sales returned to growth
Q3 net sales increased $8.8 million year over year to $734.1 million, with organic sales up $19.7 million (2.7%). Auto Care organic sales rose $18.1 million (9.5%), led by refrigerant distribution and product development.
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Cash generation improved materially
Nine-month operating cash flow rose to $156.0 million from $85.6 million. Capital expenditures declined to $52.1 million from $69.1 million, producing calculated nine-month free cash flow of $103.9 million.
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Debt reduction and ample revolver capacity
The company paid down $96.5 million of term-loan borrowings during the first nine months, including $90.0 million of early repayment. It had $173.4 million of cash and $462.4 million of remaining revolver availability at June 30, 2026.
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Quarterly SG&A leverage improved
Adjusted SG&A decreased to 16.6% of sales from 17.0% in the prior-year quarter, while Project Momentum savings contributed approximately $8 million in the quarter.
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Tariff-refund benefit supports results
The company recorded a $16.5 million Q3 cost-of-goods-sold benefit from anticipated IEEPA tariff refunds and had received approximately $11.0 million of refunds after quarter-end.
What to watch
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EPS and adjusted margin contracted sharply
GAAP diluted EPS fell to $0.58 from $2.13 and adjusted diluted EPS fell to $0.75 from $1.13. The prior-year quarter included $78.5 million of retroactive FY23/FY24 production credits, but adjusted gross margin also declined to 39.2% from 44.8%.
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Batteries profit decline outweighed sales gains
Batteries & Lights sales fell 2.0% to $524.2 million and segment profit fell 19.5% to $127.9 million. The expired acquired-brand license reduced segment sales by $17.2 million, while promotional investment offset volume gains.
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Auto Care growth carried lower profitability
Auto Care segment profit declined 14.1% to $20.7 million despite sales growth of 10.4% to $209.9 million, as management cited the lower-margin refrigerant mix and higher SG&A spending.
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Tariff refunds and replacement tariffs remain uncertain
The sole material risk-factor update concerns uncertain timing of IEEPA tariff refunds: the company recognized $64.1 million through the first nine months but had received only approximately $11.0 million by the filing date. New tariffs of 10% or 12.5% on more than 60 trading partners add continuing cost uncertainty.
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Restructuring costs and execution remain elevated
Project Momentum fourth-year restructuring and related costs are now expected at $65.0 million to $75.0 million, plus $15.0 million to $20.0 million of U.S. manufacturing-efficiency costs. The company incurred $14.4 million in Q3 and $76.8 million year to date.
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Leverage and interest burden remain material
Variable-rate debt totaled $791.9 million at June 30, 2026, and Q3 interest expense increased to $39.7 million from $39.0 million. Total contractual debt repayments are $3,278.6 million, including $8.6 million due within 12 months.
Management's outlook
The 10-Q does not provide formal revenue or EPS guidance. MD&A says fiscal-2026 capital expenditures are anticipated at approximately $60 million to $70 million, including $25 million to $35 million for Project Momentum tariff and operational-efficiency initiatives; it also expects future annual Section 45X production credits of approximately $55 million to $65 million under current regulations before phaseout.
Earlier filings 4
10-K · November 19, 2024
Energizer reports FY2024 net sales of $2,887.0 million (down 2.5% year-over-year) and GAAP diluted EPS of $0.52. Management realized ~$142 million of Project Momentum savings in FY2024 and reports adjusted net earnings…
10-Q · May 7, 2024
Energizer reported quarter net sales of $663.3M (down $20.8M YoY from $684.1M) with gross profit flat at $253.3M, lifting gross margin to 38.2%. Diluted EPS was $0.45 ($32.4M net earnings) versus $0.55 ($40.0M) a year…
10-K · November 14, 2023
Energizer describes a branded consumer-products strategy centered on batteries, auto care and portable lights, leveraging global trademark portfolios (e.g., >2,800 battery-related trademarks and ~1,900 auto care…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.