ENS · EnerSys

Summary

EnerSys announced the closure of its lead-acid battery manufacturing facility in Tijuana, Mexico, expecting a pre-tax charge of approximately $37 million, with $14 million non-cash and $23 million cash costs, mostly by the second half of fiscal year 2027. The restructuring aims to optimize costs, capture tax benefits, mitigate tariff risks, and deliver $20 million annual pre-tax savings starting fiscal year 2028, with production shifting to Springfield, Missouri.

Key takeaways

• Facility closure in Tijuana, Mexico announced March 25, 2026
• Pre-tax charge of $37 million expected upon completion
• $14 million non-cash charges from equipment write-offs
• $23 million cash charges including severance and decommissioning
• Estimated $20 million annual pre-tax benefit starting fiscal year 2028
• Reduction of approximately 474 employees
• Restructuring substantially complete by December 2027