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1. Company Snapshot

1.a. Company Description

EnerSys provides various stored energy solutions for industrial applications worldwide.It operates in three segments: Energy Systems, Motive Power, and Specialty.The company offers uninterruptible power systems applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, renewable, and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries.


It also provides motive power products that are used to provide power for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications.In addition, the company offers mining equipment, diesel locomotive starting, and other rail equipment.Further, it provides specialty batteries for starting, lighting, and ignition applications in transportation; and energy solutions for satellites, military aircraft, submarines, ships, and other tactical vehicles, as well as medical and security systems.


Additionally, the company offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries.The company sells its products through a network of distributors, independent representatives, and internal sales forces.The company was formerly known as Yuasa, Inc.


and changed its name to EnerSys in January 2001.EnerSys was incorporated in 2000 and is headquartered in Reading, Pennsylvania.

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1.b. Last Insights on ENS

EnerSys' recent performance was driven by strong Q2 results, with 20.6% earnings growth and a sales beat, fueled by data center demand and the Bren-Tronics boost. The company's quarterly earnings of $2.56 per share beat the Zacks Consensus Estimate of $2.36 per share. Net sales rose 8% in the quarter. Additionally, the company declared a quarterly cash dividend of $0.2625 per share. Its FY25 Sustainability Report showcased energy savings and operational efficiencies. A $137 million tax refund associated with IRC Section 45X Advanced Manufacturing Production Credits was also received.

1.c. Company Highlights

2. EnerSys' Q2 2026 Earnings: Strong Revenue and EPS Growth

EnerSys, Inc.'s Q2 2026 performance was robust, with net sales increasing 8% year-over-year to $951 million, driven by a 3% positive impact from organic volumes, 3% positive price/mix, a 1% tailwind from FX, and a 1% benefit from Bren-Tronics. Adjusted diluted EPS was $2.56 per share, up 21% over the prior year, and up 15% to $1.51 per share excluding 45X benefits. The company's adjusted operating earnings were $130 million, up $15 million versus the prior year, with an adjusted operating margin of 13.6%. The actual EPS of $2.56 beat estimates of $2.36, indicating a strong beat.

Publication Date: Nov -13

📋 Highlights
  • Net Sales Growth: Increased 8% to $951 million, driven by 3% organic volumes, 3% price/mix, 1% FX tailwind, and 1% Bren-Tronics benefit.
  • Adjusted EPS Surge: Adjusted diluted EPS rose 21% to $2.56, up 15% to $1.51 excluding 45X benefits, reflecting strong operational leverage.
  • Segment Performance: Energy Systems revenue grew 14% to $435 million; Motive Power declined 2% to $360 million; Specialty surged 16% to $157 million.
  • Free Cash Flow & Returns: Generated $197 million in free cash flow, repurchasing $68 million in shares and paying $10 million in dividends.
  • Q3 Guidance & Margin Expansion: Expects $2.71–$2.81 adjusted EPS (46% growth at midpoint) and margin expansion, with full-year AOE growth outpacing revenue.

Segment-wise Performance

Energy Systems revenue increased 14% from the prior year to $435 million, driven by stronger volumes, price/mix, and FX. Motive Power revenue decreased 2% from the prior year to $360 million, due to lower volumes. Specialty revenue increased 16% from the prior year to $157 million, driven by a 7% increase in organic volumes and a 7% benefit from the Bren-Tronics acquisition. The growth in Energy Systems and Specialty segments was a highlight, with data centers revenue growing 29% year-over-year, driven by lead-acid and UPS systems.

Cash Flow and Shareholder Returns

The company generated strong free cash flow of $197 million in the quarter, an increase of $194 million versus the prior year. During the quarter, EnerSys repurchased 636,000 shares for $68 million and paid $10 million in dividends. The significant cash generation enabled the company to reduce leverage to 1.3x and continue buying back stock under its $1 billion buyback program.

Outlook and Valuation

For Q3 2026, the company expects net sales in the range of $920 million to $960 million and adjusted diluted EPS of $2.71 to $2.81 per share, including $35 million to $40 million of 45X benefits. The company's guidance implies continued growth, with adjusted diluted EPS expected to be $1.64 to $1.74 per share, up 46% at the midpoint of the range, excluding 45X benefits. With a P/E Ratio of 15.41 and an EV/EBITDA of 11.3, the stock appears reasonably valued. Analysts estimate next year's revenue growth at 3.5%, which is lower than the current year's growth rate. The company's ROIC of 11.91% and ROE of 18.02% indicate a strong ability to generate returns on capital and equity.

Operational Highlights

Lithium-driven elevated costs are attributed to sourcing from China and ramping up production, which affects the value proposition. However, the company expects ongoing continuous improvement in gross margin, driven by price/mix improvements across all lines of business. The Class 8 aftermarket business is improving, with double-digit growth, driven by the need for fleet operators to maintain existing trucks due to lower new truck production. Orders for Specialty, particularly in transportation, were up 26% sequentially and 20% year-on-year, partly driven by aftermarket growth.

3. NewsRoom

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Edgestream Partners L.P. Grows Holdings in Enersys $ENS

Dec -04

Source: defenseworld.net

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Enersys $ENS Shares Sold by Fisher Asset Management LLC

Dec -03

Source: defenseworld.net

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Top 4 Low-PEG Value Stocks Ready to Outperform the Market

Dec -01

Source: zacks.com

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Critical Contrast: AZZ (NYSE:AZZ) versus Enersys (NYSE:ENS)

Dec -01

Source: defenseworld.net

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Buy These 5 Best Value Stocks to Make the Most of P/B Ratio

Nov -28

Source: zacks.com

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4 Value Stocks to Buy After the Thanksgiving Market Surge

Nov -28

Source:

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Enersys $ENS is ACK Asset Management LLC’s 5th Largest Position

Nov -28

Source: defenseworld.net

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Aristides Capital LLC Has $210,000 Stock Position in Enersys $ENS

Nov -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.85%)

6. Segments

Energy Systems

Expected Growth: 2.0%

EnerSys' Energy Systems segment growth is driven by increasing demand for renewable energy storage, electrification of transportation, and grid modernization. Additionally, the rising need for backup power systems and data center infrastructure, as well as the company's strategic acquisitions and investments in new technologies, contribute to its 2.0% growth.

Motive Power

Expected Growth: 1.8%

Motive Power's 1.8% growth is driven by increasing demand for energy-efficient solutions, rising adoption of lithium-ion batteries, and growing need for reliable backup power systems. Additionally, EnerSys' strategic acquisitions and expansion into emerging markets have contributed to the segment's growth.

Specialty

Expected Growth: 1.5%

EnerSys' Specialty segment growth is driven by increasing demand for high-performance batteries in motive power applications, such as electric forklifts and automated guided vehicles, as well as growing adoption of renewable energy systems and backup power solutions. Additionally, the company's strategic acquisitions and investments in technology advancements have expanded its product offerings and improved operational efficiency.

7. Detailed Products

Reserve Power

EnerSys provides reserve power solutions for telecommunications, data centers, and other critical infrastructure applications.

Motive Power

EnerSys offers motive power solutions for electric forklifts, pallet jacks, and other material handling equipment.

Aerospace and Defense

EnerSys provides specialized battery solutions for aerospace and defense applications, including military and commercial aircraft, and defense systems.

Energy Storage

EnerSys offers energy storage solutions for renewable energy systems, grid scale energy storage, and other applications.

Specialty Batteries

EnerSys provides specialty batteries for medical devices, security systems, and other niche applications.

8. EnerSys's Porter Forces

Forces Ranking

Threat Of Substitutes

EnerSys faces moderate threat from substitutes, as customers have limited alternatives for specialized battery solutions.

Bargaining Power Of Customers

EnerSys has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

EnerSys relies on a few key suppliers for critical components, giving them moderate bargaining power.

Threat Of New Entrants

High barriers to entry, including significant capital investments and regulatory hurdles, limit the threat of new entrants.

Intensity Of Rivalry

The battery market is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.70%
Debt Cost 5.93%
Equity Weight 67.30%
Equity Cost 10.73%
WACC 9.16%
Leverage 48.58%

11. Quality Control: EnerSys passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EnerSys

A-Score: 5.2/10

Value: 4.4

Growth: 6.2

Quality: 5.7

Yield: 2.0

Momentum: 6.5

Volatility: 6.3

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Acuity Brands

A-Score: 5.2/10

Value: 2.8

Growth: 6.8

Quality: 7.0

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

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Hubbell

A-Score: 5.1/10

Value: 2.0

Growth: 6.8

Quality: 7.2

Yield: 3.0

Momentum: 4.0

Volatility: 7.7

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Atkore

A-Score: 4.6/10

Value: 6.1

Growth: 8.0

Quality: 4.8

Yield: 2.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Hayward Holdings

A-Score: 4.3/10

Value: 3.6

Growth: 3.2

Quality: 7.4

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Advanced Energy Industries

A-Score: 4.1/10

Value: 0.6

Growth: 4.9

Quality: 5.3

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

147.65$

Current Price

147.65$

Potential

-0.00%

Expected Cash-Flows