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…
Earnings analysis · 10-Q
ENS earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
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…
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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.
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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
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
- $3.09
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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%.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.