BERN TWP., Pa. – As far as Wall Street analysts are concerned, EnerSys’ fiscal third quarter results are a mixed bag. Earnings exceeded expectations but revenue missed the target. On the other hand, according to Simply Wall Street, the company has achieved an impressive 97% shareholder return over the past year.

Compared to last fiscal year’s third quarter, nearly all financial results are down this year. Over nine months the results are more positive.

Speaking to analysts on a webcast, Shawn O’Connell, President and Chief Executive Officer of EnerSys, said that orders declined in the third quarter compared to fiscal 2025 but had increased substantially compared to the previous quarter in fiscal 2026. Also, the order backlog decreased year-over year and the previous quarter.

O’Connell highlighted successes from the EnerGize strategic restructuring program. He pointed out that reductions in workforce measures realized $15 million savings in the third quarter and should achieve around the same in the fourth quarter. In addition, he noted the transition of the Monterrey, Mexico manufacturing to the Richmond, Kentucky plant has improved execution speed.

In a statement, O’Connell commented, “We delivered strong earnings in the third quarter with adjusted diluted EPS ex 45X of $1.84, up 50%,” he said. (The 45X tax credit from the 2022 Inflation reduction Act provides significant incentives for producing clean energy components in the U.S.)

O’Connell continued, “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 (foreign exchange) offset lower volumes, particularly in Motive Power, where market softness persists.”

Third Quarter 2026

EnerSys reported net sales for the third quarter of fiscal 2026 just below the low end of the range of the third quarter of fiscal 2026 guidance of $920 million to $960 million. The increase compared to the prior year quarter was the result of a 3% increase in pricing and a 2% increase in foreign currency translation, partially offset by a 4% decrease in organic volume.

The company said net earnings included an unfavorable net-of-tax impact of $13.8 million, or $0.37 per diluted share.

According to EnerSys, adjusted net earnings per diluted share for the third quarter, on a non-GAAP (Generally Accepted Accounting Principles) basis, were $2.77, within the guidance of $2.71 to $2.81 per diluted share for the third quarter. These earnings compare to the prior year third quarter adjusted net earnings of $3.12 per diluted share.

Fiscal Year to Date 2026

Net sales for the nine months of fiscal 2026, according to EnerSys, were $2.763 billion, an increase of 4.6% from the prior year nine months’ net sales of $2.643 billion. This increase was due to a 2% increase in pricing, a 2% increase in acquisitions, and a 2% increase in foreign currency translation, partially offset by a 1% decrease in organic volume.

For the nine months of fiscal 2026, the company reported that net earnings included an unfavorable net-of-tax impact of $66.5 million, or $1.73 per diluted share.

EnerSys said adjusted net earnings per diluted share for the nine months of fiscal 2026, on a non-GAAP basis, were $7.38. This compares to the prior year nine months adjusted net earnings of $7.19 per diluted share.

Balance Sheet and Cash Flow

As of December 28, 2025, EnerSys reported cash and cash equivalents were $450.1 million and net debt as defined by its credit facility was $743.3 million. The net leverage ratio at the end of the third quarter was 1.2 X, down from 1.5 X in the prior year period due to the impact of lower debt and increased earnings.

Capital expenditure during the third quarter was $13.3 million, EnerSys pointed out, down from $24.3 million in the prior year period. During the third quarter, cash from operating activities was $184.6 million, up from $81.1 million in the prior year period. The company also returned approximately $93.7 million to shareholders through $84.1 million in share repurchases and $9.6 million through its quarterly dividend payment in the third quarter.

Fourth Quarter and Full Year 2026 Outlook

“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,” O’Connell concluded.

In the fourth quarter of fiscal 2026, EnerSys expects: Net sales in the range of $960 million to $1.000 billion, IRC 45X benefits to cost of sales of $37 million to $42 million, adjusted diluted EPS in the range of $2.95 to $3.05, adjusted diluted EPS, ex 45X benefits, in the range of $1.91 to $2.01.

For the full year fiscal 2026, EnerSys expects capital expenditures of $80 million.

“Our third quarter results further validate the strength and resilience of our diversified business model, as well as the earnings power of EnerSys,” said Andrea Funk, EnerSys Chief Financial Officer.

“We delivered record Quarter 3 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 operating expense savings, sustained price/mix strength, and improving, though still soft, Motive Power volumes,” concluded Funk.

About EnerSys

EnerSys (ENS) specializes in stored energy solutions for industrial applications, manufactures and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world.