EnerSys Concludes Fiscal Year 2025 with Strong Fourth Quarter Performance, Achieves Record EPS and Strategic Milestones
EnerSys, a global leader in stored energy solutions for industrial applications, has announced robust financial results for its fourth quarter and full fiscal year 2025, which ended March 31, 2025. The company delivered strong earnings growth, improved margins, and continued execution on strategic initiatives—despite a challenging economic environment.
CEO Transition and Strategic Momentum
David M. Shaffer, who has served as Chief Executive Officer for 22 years, will retire effective May 22, 2025. As part of a planned succession, the Board of Directors has appointed Shawn O’Connell, current President and Chief Operating Officer, as the new President and CEO effective May 23, 2025.
Commenting on the company’s performance, Shaffer stated:
“EnerSys ended Fiscal Year 2025 with a strong fourth quarter, demonstrating the earnings power of our balanced business. We delivered 7% revenue growth—our second-highest revenue quarter ever—and achieved record adjusted diluted EPS of $1.86 per share excluding 45X benefits, up 56%, and $2.97 including 45X benefits, a 43% increase. These results reflect robust performance in our Motive Power segment, significant margin gains in Energy Systems and Specialty, and solid contributions from the Bren-Tronics acquisition.”
Shaffer also highlighted how EnerSys navigated a complex operating environment.
“Over the past year, we’ve grown our presence in the high-potential defense sector, expanded higher-margin maintenance-free products, optimized our cost structure and global manufacturing footprint, and invested in advanced, flexible domestic production capabilities. As I step aside, I am confident Shawn will continue to build on this momentum.”
Incoming CEO Affirms Strategic Direction
Shawn O’Connell, set to assume the CEO role, expressed confidence in the company’s positioning.
“Our fourth quarter reflects strong operational execution across the business. Energy Systems saw growth in the data center segment and signs of recovery in U.S. communications. Motive Power delivered 15% earnings growth, supported by improved price/mix and record maintenance-free sales, which made up 29% of segment revenue. The Specialty segment also continued to benefit from strength in aerospace and defense markets and outperformance by Bren-Tronics.”
O’Connell noted that while tariffs and macroeconomic factors present short-term challenges, EnerSys is leveraging its proven playbook to mitigate risks through proactive pricing, cost control, supply chain adjustments, and manufacturing agility.
“Our products are mission-critical across sectors such as national security, data infrastructure, and electric grid resilience. Our long-term outlook remains strong. I thank Dave for his outstanding leadership and am excited to lead EnerSys into its next chapter of innovation and growth.”
Financial Performance Summary: Q4 and FY2025
Fourth Quarter Highlights (Ended March 31, 2025)
- Net Sales: $974.8 million, up 7.0% from $910.7 million in Q4 FY2024, driven by:
- +4% organic volume growth
- +4% growth from acquisitions
- +1% pricing impact
- Offset by -2% due to foreign exchange headwinds
- GAAP Net Earnings: $96.5 million, or $2.41 per diluted share
- Compared to $60.9 million, or $1.48 per share, in Q4 FY2024
- Adjusted Diluted EPS (non-GAAP): $2.97 per share
- Exceeded guidance range of $2.75–$2.85
- Up from $2.08 in Q4 FY2024
- GAAP Operating Earnings: $131.3 million (up from $80.9 million)
- Adjusted Operating Earnings (non-GAAP): $152.5 million (up from $109.2 million)
- Adjusted EBITDA: $166.9 million (up from $124.5 million)
- Gross Profit (GAAP): $303.7 million, a $49.4 million increase over Q4 FY2024
- Share Repurchases: $40.0 million (vs. $13.4 million in Q4 FY2024)
- Dividend: $0.24 per share, increased from $0.225 year-over-year
Full Fiscal Year 2025 Highlights
- Net Sales: $3.62 billion, up 1.0% from $3.58 billion in FY2024
- Growth driven by acquisitions (+2%), partially offset by FX (-1%)
- GAAP Net Earnings: $363.7 million, or $8.99 per diluted share
- Up from $269.1 million, or $6.50 per share, in FY2024
- Adjusted Diluted EPS (non-GAAP): $10.15, up from $8.35 in FY2024
- Adjusted Operating Earnings: $528.1 million (vs. $450.2 million)
- Adjusted EBITDA: $588.6 million (vs. $506.8 million)
- Gross Profit (GAAP): $1.09 billion, up $109.6 million from FY2024
- Share Repurchases: $154.0 million, a significant increase from $95.7 million in the prior year
- Total Capital Returned to Stockholders: $192.4 million (vs. $130.3 million in FY2024)
Segment Highlights
- Motive Power: Achieved record margins and 15% earnings growth year-over-year. The shift toward maintenance-free batteries—now nearly a third of segment sales—continues to bolster profitability and market competitiveness.
- Energy Systems: Benefited from resilient demand in data centers and emerging recovery in U.S. telecommunications infrastructure, contributing to notable margin expansion.
- Specialty: Continued strong growth in defense and aerospace segments, with the Bren-Tronics acquisition adding meaningful revenue and margin benefits.
Forward Outlook and Capital Allocation
EnerSys reaffirmed its commitment to delivering long-term shareholder value through disciplined capital deployment. The company continues to focus on strategic investments, including flexible domestic manufacturing capabilities, innovation in energy storage technology, and enhancements in operational efficiency.
The Board of Directors declared a quarterly dividend of $0.24 per share, payable on June 27, 2025, to stockholders of record as of June 14, 2025. This reflects the company’s consistent capital return policy and confidence in future cash flows.
EnerSys enters fiscal year 2026 with strong momentum, a refreshed leadership team, and a clear strategic vision. The company’s ability to grow earnings, enhance margins, and navigate global challenges while investing in future growth positions it well to deliver continued value across its markets. As demand for resilient, intelligent energy solutions accelerates worldwide, EnerSys remains a critical enabler of industrial progress and infrastructure modernization.
