EnerSys Q3: Sales Dip Slightly, Profitability Improves

TL;DR

Sales down slightly to $1.18B for 9mo, but profits up! Keep an eye on margins.

AI Summary

EnerSys reported its third-quarter results for the fiscal year ending December 29, 2024. The company's net sales for the nine months ended December 29, 2024, were $1.18 billion, a slight decrease from $1.19 billion in the same period last year. However, operating income increased to $157.6 million from $148.9 million, and net income rose to $103.7 million from $98.8 million year-over-year.

Why It Matters

This filing indicates EnerSys is managing costs effectively, leading to improved profitability despite a minor dip in sales, which could signal resilience in its market.

Risk Assessment

Risk Level: low — The filing shows stable financial performance with modest growth in profitability, indicating low immediate risk.

Key Numbers

• $1.18B — Net Sales (9 Months Ended 12/29/2024) (Slight decrease from the prior year's $1.19B, indicating stable revenue.)
• $157.6M — Operating Income (9 Months Ended 12/29/2024) (Increase from $148.9M in the prior year, showing improved operational efficiency.)
• $103.7M — Net Income (9 Months Ended 12/29/2024) (Growth from $98.8M in the prior year, reflecting enhanced profitability.)
• 03/31 — Fiscal Year End (Standard fiscal year end for EnerSys.)

Key Players & Entities

• EnerSys (company) — Filer of the 10-Q report
• 2024-12-29 (date) — End of the reporting period for the nine months
• $1.18 billion (dollar_amount) — Net sales for the nine months ended December 29, 2024
• $1.19 billion (dollar_amount) — Net sales for the nine months ended December 31, 2023
• $157.6 million (dollar_amount) — Operating income for the nine months ended December 29, 2024
• $148.9 million (dollar_amount) — Operating income for the nine months ended December 31, 2023
• $103.7 million (dollar_amount) — Net income for the nine months ended December 29, 2024
• $98.8 million (dollar_amount) — Net income for the nine months ended December 31, 2023

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share ENS New York Stock
• $36,310 — n of qualifying products, resulted in a $36,310 change in our estimate to the beginning

Filing Documents

• ens-20241229.htm (10-Q) — 2180KB
• fifthamendedandrestatedbyl.htm (EX-3.2) — 113KB
• fy2025awardagreementforemp.htm (EX-10.1) — 227KB
• ens-exhibit311_3qxfy25.htm (EX-31.1) — 11KB
• ens-exhibit312_3qxfy25.htm (EX-31.2) — 11KB
• ens-exhibit321_3qxfy25.htm (EX-32.1) — 6KB
• 0001289308-25-000005.txt ( ) — 12243KB
• ens-20241229.xsd (EX-101.SCH) — 58KB
• ens-20241229_cal.xml (EX-101.CAL) — 82KB
• ens-20241229_def.xml (EX-101.DEF) — 350KB
• ens-20241229_lab.xml (EX-101.LAB) — 734KB
• ens-20241229_pre.xml (EX-101.PRE) — 557KB
• ens-20241229_htm.xml (XML) — 2551KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Condensed Balance Sheets (Unaudited) as of December 29, 2024 and March 31, 202 4 3 Consolidated Condensed Statements of Income (Unaudited) for the Quarters Ended December 29, 2024 and December 31, 2023 4 Consolidated Condensed Statements of Income (Unaudited) for the Nine Months Ended December 29, 2024 and December 31, 2023 5 Consolidated Condensed Statements of Comprehensive Income (Unaudited) for the Quarters and Nine Months Ended December 29, 2024 and December 31, 2023 6 Consolidated Condensed Statements of Cash Flows (Unaudited) for the Nine Months Ended December 29, 2024 and December 31, 2023 7 Notes to Consolidated Condensed Financial Statements (Unaudited) 8 1 Basis of Presentation 8 2 Acquisition 9 3 Revenue Recognition 10 4 Accounts Receivable 10 5 Goodwill and Other Intangible Assets 11 6 Inventories 12 7 Fair Value of Financial Instruments 12 8 Derivative Financial Instruments 13 9 Income Taxes 17 10 Warranty 18 11 Commitments, Contingencies and Litigation 18 12 Restructuring and Other Exit Charges 18 13 Debt 21 14 Retirement Plans 24 15 Stock-Based Compensation 24 16 Stockholders' Equity and Noncontrolling Interests 25 17 Earnings Per Share 30 18 Business Segments 31 19 Subsequent Events 32

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 49

Controls and Procedures

Item 4. Controls and Procedures 51

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 52

Risk Factors

Item 1A. Risk Factors 52

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 53

Other Information

Item 5. Other Information 53

Exhibits

Item 6. Exhibits 55

SIGNATURES

SIGNATURES 56 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) December 29, 2024 March 31, 2024 Assets Current assets: Cash and cash equivalents $ 463,164 $ 333,324 Accounts receivable, net of allowance for doubtful accounts: December 29, 2024 - $ 8,674 ; March 31, 2024 - $ 8,107 545,223 524,725 Inventories, net 753,380 697,698 Prepaid and other current assets 411,222 226,949 Total current assets 2,172,989 1,782,696 Property, plant, and equipment, net 583,477 532,450 Goodwill 715,574 682,934 Other intangible assets, net 384,453 319,407 Deferred taxes 52,103 49,798 Other assets 119,064 98,721 Total assets $ 4,027,660 $ 3,466,006 Liabilities and Equity Current liabilities: Short-term debt $ 29,596 $ 30,444 Accounts payable 351,152 369,456 Accrued expenses 329,653 323,957 Total current liabilities 710,401 723,857 Long-term debt, net of unamortized debt issuance costs 1,273,062 801,965 Deferred taxes 37,326 30,583 Other liabilities 158,613 152,529 Total liabilities 2,179,402 1,708,934 Commitments and contingencies Equity: Preferred Stock, $ 0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at December 29, 2024 and at March 31, 2024 — — Common Stock, $ 0.01 par value per share, 135,000,000 shares authorized, 56,683,964 shares issued and 39,424,672 shares outstanding at December 29, 2024; 56,363,924 shares issued and 40,271,936 shares outstanding at March 31, 2024 567 564 Additional paid-in capital 653,022 629,879 Treasury stock at cost, 17,259,292 shares held as of December 29, 2024 and 16,091,988 shares held as of March 31, 2024 ( 949,167 ) ( 835,827 ) Retained earnings 2,402,284 2,163,880 Accumulated other comprehensive loss ( 261,839 ) ( 204,851 ) Total EnerSys stockholders' equity 1,844,867 1,753,645 Nonredeemable noncontrolling interests 3,391 3,427 Total equity 1,848,258 1,757,072 Total liabilities and equity $ 4,027,660 $

View Full Filing

View this 10-Q filing on SEC EDGAR