EnerSys
NYSE:ENS
EnerSys
In the world of industrial batteries and energy systems, EnerSys stands out as a pivotal force driving progress and innovation. Founded in 1999, its roots trace back over a century through a series of mergers and acquisitions, becoming a key player in stored energy solutions. EnerSys specializes in manufacturing and distributing industrial batteries, critical in powering telecommunications networks, data centers, material handling equipment, aerospace, and defense systems. Its operations span the globe, with a robust infrastructure that combines cutting-edge technology and vast manufacturing capabilities. The company's commitment to sustainability and reliability drives its innovation pipeline, ensuring that its energy solutions are not only efficient but also environmentally conscious.
EnerSys generates revenue by providing a comprehensive range of batteries and stored energy solutions, catering to various sectors, including motive power for forklifts and industrial vehicles, reserve power for telecom and data centers, and transportation applications. The company thrives on its ability to customize solutions, leveraging its technological expertise to meet the distinct needs of its clients. By focusing on both product and service components — from battery manufacturing to maintenance and training — EnerSys secures long-term relationships with its clientele. This integrated approach strengthens its market position, allowing it to charge for both initial product sales and ongoing service contracts, creating a reliable revenue stream and ensuring sustained growth in a competitive landscape.
In the world of industrial batteries and energy systems, EnerSys stands out as a pivotal force driving progress and innovation. Founded in 1999, its roots trace back over a century through a series of mergers and acquisitions, becoming a key player in stored energy solutions. EnerSys specializes in manufacturing and distributing industrial batteries, critical in powering telecommunications networks, data centers, material handling equipment, aerospace, and defense systems. Its operations span the globe, with a robust infrastructure that combines cutting-edge technology and vast manufacturing capabilities. The company's commitment to sustainability and reliability drives its innovation pipeline, ensuring that its energy solutions are not only efficient but also environmentally conscious.
EnerSys generates revenue by providing a comprehensive range of batteries and stored energy solutions, catering to various sectors, including motive power for forklifts and industrial vehicles, reserve power for telecom and data centers, and transportation applications. The company thrives on its ability to customize solutions, leveraging its technological expertise to meet the distinct needs of its clients. By focusing on both product and service components — from battery manufacturing to maintenance and training — EnerSys secures long-term relationships with its clientele. This integrated approach strengthens its market position, allowing it to charge for both initial product sales and ongoing service contracts, creating a reliable revenue stream and ensuring sustained growth in a competitive landscape.
Record EPS: Adjusted diluted EPS excluding 45X was $1.84, up 50% year-over-year and a third quarter record.
Revenue: Net sales were $919 million, up 1% year-over-year and at the low end of guidance.
Margins: Strong margin gains, with adjusted operating earnings (ex-45X) up 34% and EBITDA up 30%, driven by product mix and cost actions.
Cash Flow: Free cash flow was $171 million, up $114 million from last year, with 190% conversion and $94 million returned to shareholders.
Segment Performance: Energy Systems and Specialty segments delivered strong margin improvements; Motive Power saw continued softness but outperformed the market.
Data Center Growth: Data center business sales rose 28% year-over-year, with strong demand expected to continue.
Guidance: Q4 sales expected between $960 million and $1 billion; adjusted EPS (ex-45X) guided to $1.91–$2.01, up 10% YoY at the midpoint.
Lithium Battery Progress: Company is close to finalizing its lithium cell factory plan with the Department of Energy and sees significant future growth potential.
