| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 919.13 | 3.4% | 1.4% |
| Total Income | 919.13 | 3.4% | 1.4% |
| Expenditure | 794.88 | 7.5% | 4.1% |
| PBT | 106.16 | 38.8% | 16.2% |
| Net Profit | 90.37 | 32.1% | 21.3% |
| OPM | 13.52% | 3.84pp | 2.22pp |
| NPM | 9.83% | 2.64pp | 2.84pp |
| EPS | 2.45 | 33.9% | 16.1% |
EnerSys Reports Q3 FY26 Results: GM at 30.1%, EPS at $2.40
04 May 2026 · 4 May, 1:29 am
Summary
EnerSys announced its third quarter fiscal year 2026 results, with net sales increasing by 1% to $919 million. Gross margin was 30.1%, but declined due to prior year adjustments. Diluted EPS was $2.40, while adjusted diluted EPS ex 45X increased by 50% to $1.84. The company expects full-year adjusted operating earnings growth, excluding 45X benefits, to outpace revenue growth.
Key Highlights
- 1
EnerSys reported net sales of $919 million, a 1% increase compared to the third quarter of fiscal year 2025.
- 2
The company achieved a gross margin of 30.1%, but it was down by 280 bps due to a prior year catch-up adjustment to IRC 45X tax credits.
- 3
Diluted EPS was $2.40, a decrease of 17%, while adjusted diluted EPS was $2.77, down 11%.
- 4
Adjusted diluted EPS ex IRC 45X was $1.84, reflecting a 50% increase.
- 5
EnerSys returned $94 million to shareholders through buybacks and dividends in Q3, with $931 million remaining in buyback authorization as of February 3, 2026.
- 6
The company maintained a net leverage ratio below the low end of the target range at 1.2 X EBITDA.
- 7
For the full year fiscal 2026, EnerSys expects capital expenditures of approximately $80 million.
Management Comments
Shawn O’Connell
“We delivered strong earnings in the third quarter with adjusted diluted EPS ex 45X of $1.84, up 50%.” “Margins expanded meaningfully across most areas of our business, driven by favorable product mix along with expense and pricing discipline. Net sales were up 1%, in line with the low end of our guidance range, as strong price/mix and favorable FX offset lower volumes, particularly in Motive Power, where market softness persists. “Our EnerGize strategic framework is translating into tangible results. We are capturing realignment savings as planned and further refining our Centers of Excellence to improve execution speed, consistency, and returns. “Looking ahead, we expect additional benefits from our EnerGize initiatives as we remain disciplined in a mixed end market environment. We are highly confident in our focused growth strategy, supported by durable secular demand trends, including the growing need for energy security and high-performance energy storage solutions,”
Andrea Funk
“Our third quarter results further validate the strength and resilience of our diversified business model, as well as the earnings power of EnerSys” “We delivered record Q3 earnings excluding 45X benefits despite some market pressure in our Motive Power volumes. “While we are encouraged by the Company’s overall trajectory and momentum in several key growth areas, we continue to see the impact of a dynamic macro environment on customer buying patterns. Consistent with our fourth quarter outlook and expectations we set at the beginning of the fiscal year, we expect full-year adjusted operating earnings growth, excluding 45X benefits, to outpace revenue growth, supported by ongoing opex savings, sustained price/mix strength, and improving, though still soft, Motive Power volumes. “Operational efficiencies aligned with our EnerGize strategic framework are taking hold, with continued progress in process optimization, capital allocation discipline, and manufacturing performance. These actions are positioning the business for long-term top-line growth and margin expansion,”
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