READING, PA — EnerSys (NYSE: ENS) announced its fiscal 2025 third-quarter financial results, showcasing strong earnings growth and continued progress in its strategic initiatives despite mixed market conditions. The company’s net sales reached $906.2 million, a 5% year-over-year increase, driven by resilient demand in Aerospace & Defense (A&D) markets and contributions from the Bren-Tronics acquisition.
Earnings per share grew significantly, with diluted EPS rising 55% year-over-year to $2.88. Adjusted diluted EPS also saw robust growth, increasing 22% to $3.12. EnerSys achieved a 400-basis-point improvement in gross margin, which rose to 32.9%, reflecting operational efficiencies, cost controls, and tax credit benefits under the Inflation Reduction Act (IRA). Net leverage remained manageable at 1.5x EBITDA, supported by operating cash flow of $81.1 million.
“Amid improving but still varied market conditions, EnerSys delivered solid earnings growth in the third quarter, outpacing revenue growth,” said David M. Shaffer, CEO of EnerSys. “Strong performance across our lines of business, bolstered by Bren-Tronics’ accretive contribution and operational enhancements in Energy Systems, positions us for a strong finish to the fiscal year.”
Segment Performance
EnerSys’ Energy Systems segment reported a 4% sales increase and notable margin expansion, benefiting from efficiency improvements and recovering U.S. Communications spending. The appointment of Keith Fisher as President, Energy Systems Global, further underscores the company’s focus on driving future growth in this area.
The Specialty segment continued to perform well, with robust demand in A&D markets and initial signs of recovery in the Transportation sector. The integration of Bren-Tronics, acquired earlier this fiscal year, remains ahead of schedule, and its contributions have exceeded expectations. Additionally, EnerSys marked a milestone with its first revenue from Fast Charge and Storage (FC&S) systems.
Q4 and Full-Year Outlook
EnerSys provided an optimistic outlook for the remainder of fiscal 2025, projecting fourth-quarter net sales between $960 million and $1 billion, and adjusted diluted EPS ranging from $2.75 to $2.85. For the full year, the company expects net sales of $3.6 billion to $3.64 billion, slightly revised due to third-quarter challenges such as FX headwinds and delayed recovery in key markets. Adjusted diluted EPS guidance for the fiscal year was raised to $9.97-$10.07, reflecting sustained profitability.
“We expect fiscal Q4 to be among our strongest quarters on record, driven by improving demand in U.S. Communications and Transportation markets,” said Andrea Funk, CFO. “Coupled with our margin expansion efforts, EnerSys is well-positioned to deliver strong results and capitalize on key trends like electrification and sustainable energy solutions.”
A Promising Path Forward
Looking ahead, EnerSys remains focused on leveraging demand driven by electrification, data infrastructure, and sustainability initiatives. With solid financial performance, proven operational strategies, and a diversified portfolio, the company looks set to build on its momentum, creating long-term value for shareholders and advancing its role as a leader in reliable power solutions.
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