ENS earnings analysis
What we found in ENS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
EnerSys delivered a strong fiscal Q1 2027, with revenue up 4.8% year over year to $935.6 million, gross margin up 510 basis points to 33.5%, operating margin up 650 basis points to 16.2%, and diluted EPS of $3.09 versus $1.46. NIS and PPS growth more than offset weakness in IMS, while operating cash flow increased to $230.161 million and cash reached $530.663 million. Results benefited materially from $30.870 million of IEEPA tariff refunds and 45X benefits, creating some quality and comparability risk; longer term, the proposed $650 million gigafactory and conditional $150 million DOE award are significant execution and funding considerations.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Grew 4.8% Year Over Year
- Net sales were $935.6 million, up $42.6 million or 4.8% from $893.0 million year over year, driven by a 3% price/mix increase, 1% organic volume growth and 1% foreign-currency benefit. Revenue declined from $987.9 million in the prior quarter.
- Gross Margin Expanded 510 Basis Points
- Gross profit increased to $313.4 million from $253.2 million, lifting gross margin to 33.5% from 28.4%, a 510-basis-point improvement. Management attributed the gain to higher 45X benefits, $30.870 million of IEEPA tariff refunds and favorable price/mix.
- Operating Leverage Improved Sharply
- Operating earnings rose 75.1% to $151.4 million from $86.5 million, and operating margin expanded to 16.2% from 9.7%, a 650-basis-point improvement. Operating margin also improved from 12.4% in the prior quarter.
- Diluted EPS More Than Doubled
- Diluted EPS increased to $3.09 from $1.46 year over year and from $2.05 in the prior quarter. Net earnings attributable to EnerSys stockholders rose to $116.450 million from $57.458 million.
- NIS and PPS Drove Segment Growth
- Network & Infrastructure Solutions grew sales 9.4% to $428.3 million, with operating earnings rising to $30.2 million from $14.1 million. Precision Power Solutions was the fastest-growing segment, with sales up 23.6% to $100.5 million and operating earnings up to $14.4 million from $8.0 million.
- Cash Generation and Liquidity Strengthened
- Operating cash flow was $230.161 million versus $0.968 million year over year. Capital expenditures fell to $12.422 million from $33.019 million, implying cash flow after capex of approximately $217.739 million, while cash increased to $530.663 million from $438.675 million at March 31, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Large Gigafactory Funding Execution Risk
- The proposed South Carolina lithium-ion facility has an estimated cost of $650 million, with EnerSys expecting to fund approximately $500 million of net investment through operating cash flow. Construction is expected to begin in the first half of fiscal 2028, and full production is expected approximately three years thereafter.
- DOE Funding Remains Conditional
- The revised U.S. Department of Energy award is approximately $150 million, reduced from the prior $199 million award, and remains subject to final documentation, compliance obligations and other conditions. Failure to obtain or retain the funding could adversely affect the proposed facility.
- Restructuring Charges Remain Elevated
- The company recorded $10.708 million of restructuring and other exit charges in the quarter, up 82.7% from $5.862 million year over year. The Tijuana closure alone is expected to generate approximately $37 million of total pretax charges and reduce approximately 474 employees by completion.
- Industrial Mobility Demand Is Soft
- Industrial Mobility Solutions sales declined 3.2% to $406.8 million as organic volume fell 5%, with management citing macroeconomic uncertainty in material handling. Operating margin declined 70 basis points to 9.3%.
- Lead Cost and Pricing-Lag Exposure
- Approximately 25% of revenue is subject to lead-indexed pricing agreements, while customer pricing changes lag lead and other cost movements by approximately six to nine months. Management estimated that a 10% increase in lead cost would increase cost of goods sold by approximately $16.0 million.
- Variable-Rate Debt Exposure
- Long-term debt was $1.010 billion and short-term debt was $28.667 million at July 5, 2026. A 100-basis-point increase in interest rates would increase annual interest expense by approximately $2.5 million on variable-rate debt.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.09
- Gross margin
- 33.5%
- Operating margin
- 16.2%
- Segment
- Network & Infrastructure Solutions: $428.3 million, up 9.4% year over year from $391.4 million; operating earnings $30.2 million versus $14.1 million.
- Segment
- Industrial Mobility Solutions: $406.8 million, down 3.2% year over year from $420.4 million; operating earnings $29.0 million versus $27.4 million.
- Segment
- Precision Power Solutions: $100.5 million, up 23.6% year over year from $81.2 million; operating earnings $14.4 million versus $8.0 million.
What they said about what is next.
The 10-Q does not provide updated numeric revenue or EPS guidance. Prior Q1 fiscal 2027 guidance of $915 million-$955 million revenue and $2.70-$2.90 adjusted EPS was disclosed in the prior 8-K; the filing provides project and capital spending outlook instead.
The filing reads better than the one before it.
What came before.
- 10-K · May 20, 2026
- EnerSys reported a modest revenue growth of 3.7% year-over-year, reaching $3.75 billion, despite a decline in net earnings of 19.3% attributed to increased operational challenges. The company is restructuring its…
- 10-Q · February 5, 2025
- EnerSys reported quarterly net sales of $906,152 (in thousands) and delivered notable margin and EPS expansion versus the comparable prior-year quarter. Gross profit rose to $298,176 (32.9% margin) and operating…
- 10-Q · November 6, 2024
- EnerSys reported quarterly net sales of $883,669,000 and diluted EPS of $2.01 for the quarter ended September 29, 2024, with net earnings of $82,266,000 versus $65,229,000 a year earlier. Gross profit improved to…
- 10-Q · November 8, 2023
- EnerSys reported quarter net sales of $901,033,000 (Q ended Oct 1, 2023) vs $899,437,000 a year earlier, with gross profit rising to $239,619,000 and operating earnings increasing to $88,614,000. Diluted EPS improved to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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