EnerSys ENS reported fourth-quarter fiscal 2026 (ended March 31, 2026) adjusted earnings of $3.19 per share, which surpassed the Zacks Consensus Estimate of $3.00. The bottom line increased 7% year over year.
EnerSys’ net sales of $988 million beat the consensus estimate of $973 million. The top line increased 1% year over year. The top-line results were driven by a favorable impact of 4% from pricing and the positive impact of 3% from foreign currency translation, partially offset by a 6% decline in organic volume.
Segmental Discussion
The Energy Systems segment’s sales (accounting for 43.1% of total sales) were $425.7 million, up 7% year over year. The Zacks Consensus Estimate for segmental net sales was $411 million. Net sales increased due to strength in data centers and U.S. Communications market. While volume was flat, price/mix and foreign currency translation had positive impacts of about 4% and 3%, respectively, on sales.
The Motive Power segment generated net sales of $370.1 million (accounting for 37.5% of total sales), down 5.7% year over year. The consensus estimate for segmental net sales was $381 million. Volume declined 10% in the quarter. While foreign currency translation had a favorable impact of 3% on sales, price/mix had 1% 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 $192.2 million (accounting for 19.5% of total sales), up 8.1% year over year. The consensus estimate was $180 million. Results were impacted by softness in markets. While volume decreased 6%, price/mix and acquisitions had 11% and 2% 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' gross profit decreased 4.2% year over year to $290.9 million while the gross margin was down 180 basis points (bps) to 29.4%.
Operating expenses were down 8.9% year over year to $148.3 million. Operating earnings decreased 5.8% to $123.7 million. The operating margin decreased 100 bps year over year to 12.5%.
Balance Sheet and Cash Flow
At the end of fiscal 2026, EnerSys had cash and cash equivalents of $438.7 million compared with $343.1 million at the end of fiscal 2025. Long-term debt (net of unamortized debt issuance costs) was $1.08 billion, relatively stable compared with fiscal 2025-end.
EnerSys generated net cash of $547.6 million from operating activities in fiscal 2026 compared with $260.3 million in the year-ago period. Capital expenditure totaled $80.1 million compared with $121 million in the previous fiscal year.
In fiscal 2026, EnerSys rewarded its shareholders with a dividend payout of approximately $38.1 million, up 1.6% year over year.
ENS’ Guidance
For first-quarter fiscal 2027 (ending June 2026), EnerSys expects adjusted earnings to be in the range of $2.70–$2.90 per share. Net sales are expected to be in the band of $915–$955 million.
For fiscal 2027, the company expects capital expenditures of approximately $70 million.
Zacks Rank & Other Key Picks
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:
Tennant Company TNC presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tennant’s earnings surpassed the consensus estimate by 141.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for TNC’s 2026 earnings has increased 6.2%.
Helios Technologies HLIO presently carries a Zacks Rank of 2. Helios Technologies’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 15.7%. In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ fiscal 2026 earnings has increased 4%.
Nordson Corporation NDSN currently carries a Zacks Rank of 2. Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.7%.
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