EnerSys ENS reported third-quarter fiscal 2026 (ended Dec. 31, 2025) adjusted earnings of $2.77 per share, which surpassed the Zacks Consensus Estimate of $2.73. The bottom line decreased 11% year over year.
EnerSys’ net sales of $919.1 million missed the consensus estimate of $932 million. The top line increased 1% year over year. The top-line results were driven by favorable impact of 3% from pricing and the positive impact of 2% from foreign currency translation, partially offset by a 4% decline in organic volume.
Segmental Discussion
The Energy Systems segment’s sales (accounting for 43.5% of total sales) were $399.5 million, up 2.6% year over year. The Zacks Consensus Estimate for segmental net sales was $408 million. Net sales increased due to growth in data centers and a continued recovery in the U.S. Communications market. While volume decreased 3%, price/mix and foreign currency translation had positive impacts of 4% and 2%, respectively, on sales.
The Motive Power segment generated net sales of $352.1 million (accounting for 38.3% of total sales), down 1.9% year over year. The consensus estimate for segmental net sales was $362 million. Volume declined 7% in the quarter. While foreign currency translation had a favorable impact of 3% on sales, price/mix had 2% positive impact on sales. Lower sales were attributable to tepid demand in the Americas region and softness in the EMEA automotive market.
The Specialty segment’s sales were $168 million (accounting for 18.3% of total sales), up 8% year over year. The consensus estimate was $166 million. Results benefited from the transportation aftermarket growth. While volume increased 2%, price/mix and acquisitions had 4% and 1% positive impact on sales, respectively. Foreign currency translation positively impacted sales by 1%.
Enersys Price, Consensus and EPS Surprise
Enersys price-consensus-eps-surprise-chart | Enersys Quote
ENS’ Margin Profile
EnerSys' cost of sales increased 6.4% year over year to $567.3 million. Gross profit decreased 7.3% year over year to $276.3 million while the gross margin was down 280 basis points (bps) to 30.1%.
Operating expenses were down 4.2% year over year to $147.8 million. Operating earnings decreased 12.9% to $124.2 million. The operating margin decreased 220 bps year over year to 13.5%.
Balance Sheet and Cash Flow
At the end of the fiscal third quarter, EnerSys had cash and cash equivalents of $450.1 million compared with $343.1 million at the end of fiscal 2025. Long-term debt (net of unamortized debt issuance costs) was $1.15 billion compared with $1.08 billion at fiscal 2025-end.
EnerSys generated net cash of $403.6 million from operating activities in the first nine months of fiscal 2026 compared with $125.1 million in the year-ago period. Capital expenditure totaled $67.3 million compared with $90.8 million in the previous fiscal year.
In the first nine months of fiscal 2026, EnerSys rewarded its shareholders with a dividend payout of approximately $28.6 million, up 1.8% year over year.
ENS’ Guidance
For fourth-quarter fiscal 2026 (ending March 2025), EnerSys expects adjusted earnings to be in the range of $2.95–$3.05 per share, indicating growth of 4% at the mid-point. Net sales are expected to be in the band of $960–$1,000 million, implying growth of 4% at the mid-point.
ENS’ Zacks Rank
EnerSys currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the same space are discussed below:
Nordson Corporation NDSN currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.
Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 1.9%.
Ferguson plc FERG presently carries a Zacks Rank of 2. Ferguson’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 9.8%. In the past 60 days, the Zacks Consensus Estimate for Ferguson’s fiscal 2026 earnings has increased 2.3%.
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