0001628280-26-036903
SEC filingEnerSys reported record full-year net sales of $3.75B and record adjusted diluted EPS of $10.56 for fiscal 2026, driven by strength in Energy Systems and disciplined execution; also declared a quarterly dividend of $0.2625 per share.
EnerSys delivered a strong finish to fiscal 2026, with fourth-quarter net sales of $988M (+1.3% YoY) at the low end of guidance, driven by 4% pricing and 3% FX gains partially offset by 6% lower organic volume. Gross margin contracted 180bps to 29.4% (or 24.7% ex-IRC 45X, down 200bps) due to inventory step-up charges and higher restructuring costs. Adjusted diluted EPS rose 7% to a record $3.19, beating guidance of $2.95-$3.05, powered by strong performance in Energy Systems (+22.5% adjusted operating earnings) and benefits from cost realignment. For the full year, record net sales of $3.75B (+4%) were supported by 3% pricing, 2% FX, and 1% acquisitions, while organic volume declined 2%. Adjusted diluted EPS reached a record $10.56 (+4%), with ex-45X growth of 15% to $6.41, reflecting margin resilience and disciplined capital allocation. Management highlighted progress on new product introductions, including a lithium data center solution and BESS for warehouse operators. Cash generation remained robust with Q4 operating cash flow of $144M and free cash flow of $131.2M, supporting $78.9M returned to shareholders via buybacks and dividends. The balance sheet strengthened, with net leverage improving to 1.1x. Looking ahead, Q1 FY2027 guidance calls for net sales of $915-$955M and adjusted EPS of $2.70-$2.90 ($1.61-$1.71 ex-45X), reflecting typical seasonality and continued price/mix strength. The company also reiterated its strategic framework and expects strong cash flow to fund growth and shareholder returns.