EnerSys 10-Q for FY2027 Q1

EnerSys (ENS)

10-Q 2026-08-12 For: 2026-07-05

Added on August 13, 2026

About this 10-Q

EnerSys filed this 10-Q on August 12, 2026, covering the quarter ended July 5, 2026 (FY2027 Q1).

Headline figures

Quarter ended July 5, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $935.64M; up 4.8% from $893.02M a year earlier
Net income: $116.45M; up 102.7% from net income of $57.46M a year earlier
Diluted EPS: $3.09; up 111.6% from $1.46 a year earlier

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Delaware						23-3058564
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


			Page
PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Condensed Balance Sheets (Unaudited) as of July 5, 2026 and March 31, 2026		3

	Consolidated Condensed Statements of Income (Unaudited) for the Quarters Ended July 5, 2026 and June 29, 2025		4



	Consolidated Condensed Statements of Comprehensive Income (Unaudited) for the Quarters Ended July 5, 2026 and June 29, 2025		5

	Consolidated Condensed Statements of Cash Flows (Unaudited) for the Three Months Ended July 5, 2026 and June 29, 2025		6

	Notes to Consolidated Condensed Financial Statements (Unaudited)		7
	1	Basis of Presentation	7
	2	Revenue Recognition	8
	3	Accounts Receivable	8
	4	Inventories	9
	5	Fair Value of Financial Instruments	9
	6	Derivative Financial Instruments	10
	7	Income Taxes	13
	8	Warranty	14
	9	Commitments, Contingencies and Litigation	14
	10	Restructuring and Other Exit Charges	15
	11	Debt	18
	12	Retirement Plans	19
	13	Stock-Based Compensation	19
	14	Stockholders’ Equity and Noncontrolling Interests	19
	15	Earnings Per Share	23
	16	Business Segments	23
	17	Subsequent Events	25

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		26

Item 3.	Quantitative and Qualitative Disclosures about Market Risk		38

Item 4.	Controls and Procedures		40

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings		41

Item 1A.	Risk Factors		41

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		42

Item 4.	Mine Safety Disclosures		42

Item 5.	Other Information		42

Item 6.	Exhibits		43

SIGNATURES			44


	July 5, 2026		March 31, 2026
Assets
Current assets:
Cash and cash equivalents	$	530,663	$	438,675
Accounts receivable, net of allowance for doubtful accounts: July 5, 2026 - $10,522; March 31, 2026 - $8,583	454,811		506,072
Inventories, net	738,654		724,690
Prepaid and other current assets	405,918		472,373
Total current assets	2,130,046		2,141,810
Property, plant, and equipment, net	572,407		593,002
Goodwill	748,214		752,424
Other intangible assets, net	334,236		342,898
Deferred taxes	68,413		69,008
Other assets	103,619		104,182
Total assets	$	3,956,935	$	4,003,324
Liabilities and Equity
Current liabilities:
Short-term debt	$	28,667	$	29,201
Accounts payable	335,158		354,190
Accrued expenses	398,148		420,647
Total current liabilities	761,973		804,038
Long-term debt, net of unamortized debt issuance costs	1,010,265		1,079,782
Deferred taxes	13,897		13,909
Other liabilities	197,253		196,723
Total liabilities	1,983,388		2,094,452
Commitments and contingencies
Equity:
Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at July 5, 2026 and at March 31, 2026	—		—
Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 57,616,359 shares issued and 36,310,450 shares outstanding at July 5, 2026; 57,551,440 shares issued and 36,462,211 shares outstanding at March 31, 2026	576		576
Additional paid-in capital	748,541		734,922
Treasury stock at cost, 21,305,909 shares held as of July 5, 2026 and 21,089,229 shares held as of March 31, 2026	(1,411,797)		(1,361,585)
Retained earnings	2,850,285		2,743,635
Accumulated other comprehensive loss	(217,705)		(212,264)
Total EnerSys stockholders’ equity	1,969,900		1,905,284
Nonredeemable noncontrolling interests	3,647		3,588
Total equity	1,973,547		1,908,872
Total liabilities and equity	$	3,956,935	$	4,003,324


	Quarter ended
	July 5, 2026		June 29, 2025
Sales from products	$	835,598	$	805,813
Sales from services	100,043		87,211
Net sales	935,641		893,024
Cost of goods sold	538,646		566,048
Cost of services	83,635		73,748
Gross profit	313,360		253,228
Operating expenses	151,238		160,886
Restructuring and other exit charges	10,708		5,862
Operating earnings	151,414		86,480
Interest expense	10,598		11,312
Other expense (income), net	5,809		9,510
Earnings before income taxes	135,007		65,658
Income tax expense	18,557		8,200
Net earnings attributable to EnerSys stockholders	$	116,450	$	57,458
Net earnings per common share attributable to EnerSys stockholders:
Basic	$	3.19	$	1.48
Diluted	$	3.09	$	1.46
Dividends per common share	$	0.2625	$	0.24
Weighted-average number of common shares outstanding:
Basic	36,467,526		38,798,263
Diluted	37,626,671		39,295,773


	Quarter ended
	July 5, 2026		June 29, 2025
Net earnings	$	116,450	$	57,458
Other comprehensive income (loss):
Net unrealized gain (loss) on derivative instruments, net of tax	1,557		462
Pension funded status adjustment, net of tax	(2)		123
Foreign currency translation adjustment	(6,937)		29,829
Total other comprehensive income (loss), net of tax	(5,382)		30,414
Total comprehensive income (loss)	111,068		87,872
Comprehensive income (loss) attributable to noncontrolling interests	59		40
Comprehensive income (loss) attributable to EnerSys stockholders	$	111,009	$	87,832


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	July 5, 2026		March 31, 2026
Raw materials	$	287,089	$	287,705
Work-in-process	123,201		111,719
Finished goods	328,364		325,266
Total	$	738,654	$	724,690


	Total Fair Value Measurement July 5, 2026		Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Lead forward contracts	$	(2,877)	$	—	$	(2,877)	$	—
Foreign currency forward contracts	386		—		386		—
Interest Rate Swaps	(12)		—		(12)		—
Net investment hedges	(68,380)		—		(68,380)		—
Total derivatives	$	(70,883)	$	—	$	(70,883)	$	—


	Total Fair Value Measurement March 31, 2026		Quoted Price in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Lead forward contracts	$	(3,521)	$	—	$	(3,521)	$	—
Foreign currency forward contracts	1,173		—		1,173		—
Interest Rate Swaps	(68)		—		(68)		—
Net investment hedges	(69,990)		—		(69,990)		—
Total derivatives	$	(72,406)	$	—	$	(72,406)	$	—


	July 5, 2026				March 31, 2026
	Carrying Amount		Fair Value		Carrying Amount		Fair Value


Financial liabilities:
Senior Notes (1)	$	600,000	$	604,800	$	600,000	$	601,425
Derivatives (2)	$	70,883	$	70,883	$	72,406	$	72,406


	Derivatives and Hedging Activities Designated as Cash Flow Hedges				Derivatives and Hedging Activities Designated as Net Investment Hedges				Derivatives and Hedging Activities Not Designated as Hedging Instruments
	July 5, 2026		March 31, 2026		July 5, 2026		March 31, 2026		July 5, 2026		March 31, 2026
Prepaid and other current assets:

Foreign currency forward contracts	197		336		—		—		189		837




Total assets	$	197	$	336	$	—	$	—	$	189	$	837
Accrued expenses:
Lead forward contracts	$	2,877	$	3,521	$	—	$	—	$	—	$	—

Net investment hedges	—		—		14,781		16,076		—		—
Other liabilities:
Interest rate swaps	12		68		—		—		—		—
Net investment hedges	—		—		53,599		53,914		—		—
Total liabilities	$	2,889	$	3,589	$	68,380	$	69,990	$	—	$	—


Derivatives Designated as Cash Flow Hedges	Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Lead forward contracts	$	(556)	Cost of goods sold	$	(2,574)
Foreign currency forward contracts	379		Cost of goods sold	410
Interest rate swaps	11		Interest expense	(45)
Total	$	(166)		$	(2,209)


Derivatives Designated as Net Investment Hedges	Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Cross currency fixed interest rate swaps	$	3,480	Interest expense	$	1,870
Total	$	3,480		$	1,870


Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivatives	Pretax Gain (Loss)
Foreign currency forward contracts	Other (income) expense, net	$	404
Total		$	404


ITEM 1.			FINANCIAL STATEMENTS


	Quarter ended
	July 5, 2026		June 29, 2025
Cash flows from operating activities
Net earnings	$	116,450	$	57,458
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	30,495		26,894
Write-off of assets relating to exit activities	5,748		(626)
Derivatives not designated in hedging relationships:
Net losses (gains)	404		(354)
Cash (settlements) proceeds	1,052		2,536
Provision for doubtful accounts	2,292		(203)
Deferred income taxes	(431)		(42)
Non-cash interest expense	483		479
Stock-based compensation	7,778		17,601
Loss (gain) on disposal of property, plant, and equipment	1,196		34
Changes in assets and liabilities:
Accounts receivable	48,220		50,218
Inventories	(14,483)		(33,490)
Prepaid and other current assets	88,947		(38,867)
Other assets	342		179
Accounts payable	(22,515)		(43,049)
Accrued expenses	(37,984)		(38,448)
Other liabilities	2,167		648
Net cash provided by (used in) operating activities	230,161		968

Cash flows from investing activities
Capital expenditures	(12,422)		(33,019)
Purchase of business	—		(12,558)
Proceeds from disposal of property, plant, and equipment	80		4,163
Net cash (used in) provided by investing activities	(12,342)		(41,414)

Cash flows from financing activities
Net borrowings (repayments) on short-term debt	8		(209)
Proceeds from Second Amended Revolver borrowings	120,000		231,700
Repayments of Second Amended Revolver borrowings	(190,000)		(46,700)
Options proceeds, net	5,859		—
Purchase of treasury stock	(49,958)		(150,034)
Dividends paid to stockholders	(9,555)		(9,107)
Other	(139)		314


	July 5, 2026				March 31, 2026
	Principal		Unamortized Issuance Costs		Principal		Unamortized Issuance Costs
Senior Notes
4.375% Senior Notes due 2027	$	300,000	$	834	$	300,000	$	978
6.625% Senior Notes due 2032	300,000		3,033		300,000		3,171
Amended Credit Facility
Third Amended Revolver due 2030 (1)	417,563		3,431		487,563		3,632
	$	1,017,563	$	7,298	$	1,087,563	$	7,781
Less: Unamortized issuance costs	7,298				7,781
Long-term debt, net of unamortized issuance costs	$	1,010,265			$	1,079,782


	Quarter ended
	July 5, 2026
	Network & Infrastructure Solutions		Industrial Mobility Solutions		Precision Power Solutions		Corporate and other unallocated (3)		Total
Net Sales by segment to unaffiliated customers (1)	$	428,334	$	406,851	$	100,456	$	—	$	935,641
Less:
Other segment items(4)	$	383,280	$	369,181	$	82,183			$	834,644

Segment income	$	45,054	$	37,670	$	18,273			$	100,997
Less:
Restructuring and other exit charges	6,211		4,498		(1)				10,708
Amortization of intangible assets	5,827		368		2,080				8,275
Stock-based Compensation	2,845		3,738		1,195				7,778
Other	16		34		598				648
Total operating earnings (2)	$	30,155	$	29,032	$	14,401	$	77,826	$	151,414

Depreciation	$	8,390	$	11,078	$	2,752	$	0	$	22,220
Capital Expenditures	$	4,867	$	4,961	$	1,986	$	608	$	12,422


	Quarter ended July 5, 2026
	Network & Infrastructure Solutions		Industrial Mobility Solutions		Precision Power Solutions		Corporate Other		Total
Restructuring charges	$	418	$	186	$	(1)	$	—	$	603
Exit charges	5,793		4,312		—		—		10,105
Restructuring and other exit charges	$	6,211	$	4,498	$	(1)	$	—	$	10,708


Balance as of March 31, 2026	$	5,904
Accrued	603
Costs incurred	(3,304)
Foreign currency impact	13
Balance as of July 5, 2026	$	3,216


	United States Plans				International Plans
	Quarter ended				Quarter ended
	July 5, 2026		June 29, 2025		July 5, 2026		June 29, 2025
Service cost	$	—	$	—	$	255	$	266
Interest cost	—		—		291		690
Expected return on plan assets	—		(10)		(27)		(377)
Amortization and deferral	—		—		(2)		160

Net periodic benefit cost	$	—	$	(10)	$	517	$	739


Shares outstanding as of March 31, 2026						36,462,211
Purchase of treasury stock						(219,204)
Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes						67,443
Shares outstanding as of July 5, 2026						36,310,450


	March 31, 2026		Before Reclassifications		Amounts Reclassified from AOCI		July 5, 2026
Pension funded status adjustment	$	(2,636)	$	—	$	(2)	$	(2,638)
Net unrealized gain (loss) on derivative instruments	(4,562)		(142)		1,699		(3,005)
Foreign currency translation adjustment (1)	(205,066)		(6,996)		—		(212,062)
Accumulated other comprehensive (loss) income	$	(212,264)	$	(7,138)	$	1,697	$	(217,705)


Components of AOCI	Amounts Reclassified from AOCI		Location of (Gain) Loss Recognized on Income Statement
Derivatives in cash flow hedging relationships:
Net unrealized loss on derivative instruments	$	2,209	Cost of goods sold
Tax expense	(510)
Net unrealized loss on derivative instruments, net of tax	$	1,699

Derivatives in net investment hedging relationships:
Net unrealized gain on derivative instruments	$	(1,870)	Interest expense
Tax expense	437
Net unrealized gain on derivative instruments, net of tax	$	(1,433)

Defined benefit pension costs:
Prior service costs and deferrals	$	(2)	Net periodic benefit cost, included in other (income) expense, net - See Note 12
Tax benefit	—
Net periodic benefit cost, net of tax	$	(2)


(In Thousands, Except Per Share Data)	Preferred Stock		Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total EnerSys Stockholders’ Equity		Non- redeemable Non- Controlling Interests		Total Equity
Balance at March 31, 2026	$	—	$	576	$	734,922	$	(1,361,585)	$	2,743,635	$	(212,264)	$	1,905,284	$	3,588	$	1,908,872
Stock-based compensation	—		—		7,778		—		—		—		7,778		—		7,778
Exercise of stock options	—		—		5,859		—		—		—		5,859		—		5,859
Purchase of common stock	—		—		—		(49,958)		—		—		(49,958)		—		(49,958)
Other	—		—		(263)		(254)		—		—		(517)		—		(517)
Net earnings	—		—		—		—		116,450		—		116,450		—		116,450
Dividends ($0.2625 per common share)	—		—		245		—		(9,800)		—		(9,555)		—		(9,555)
Other comprehensive income:													—
Pension funded status adjustment (net of tax benefit of $—)	—		—		—		—		—		(2)		(2)		—		(2)
Net unrealized gain (loss) on derivative instruments (net of tax gain of $478)	—		—		—		—		—		1,557		1,557		—		1,557
Foreign currency translation adjustment	—		—		—		—		—		(6,996)		(6,996)		59		(6,937)
Balance at July 5, 2026	$	—	$	576	$	748,541	$	(1,411,797)	$	2,850,285	$	(217,705)	$	1,969,900	$	3,647	$	1,973,547


	Energy Systems		Motive Power		Specialty		Network & Infrastructure Solutions		Industrial Mobility Solutions		Precision Power Solutions		Total
Balance at March 31, 2026	$	255,722	$	331,018	$	165,684	$	—	$	—	$	—	$	752,424
Reassigned	(255,722)		(331,018)		(165,684)		255,722		362,341		134,361		—
Foreign currency translation adjustment	—		—		—		(4,074)		1,034		(1,170)		(4,210)
Balance as of July 5, 2026	$	—	$	—	$	—	$	251,648	$	363,375	$	133,191	$	748,214


ITEM 2.			MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


($ in Millions)	July 5, 2026			March 31, 2026			June 29, 2025
Accounts receivable, net	$	454.8		$	506.1		$	566.8
Inventory, net	738.7			724.7			789.3
Accounts payable	(335.2)			(354.2)			(363.1)
Total primary operating capital	$	858.3		$	876.6		$	993.0
Trailing 3 months net sales	$	935.6		$	987.9		$	893.0
Trailing 3 months net sales annualized	$	3,742.4		$	3,951.6		$	3,572.0

Primary operating capital as a % of annualized net sales	22.9		%	22.2		%	27.8		%


	Quarter ended July 5, 2026				Quarter ended June 29, 2025				Increase (Decrease)
	In Millions		Percentage of Total Net Sales		In Millions		Percentage of Total Net Sales		In Millions		%
Network & Infrastructure Solutions	$	428.3	45.8	%	$	391.4	43.8	%	$	36.9	9.4	%
Industrial Mobility Solutions	406.8		43.5		420.4		47.1		(13.6)		(3.2)
Precision Power Solutions	100.5		10.7		81.2		9.1		19.3		23.6
Total net sales	$	935.6	100.0	%	$	893.0	100.0	%	$	42.6	4.8	%


Dated Entered Into	Notional Amount (in millions)		Maturity Date
September 29, 2022	$	150.0	December 15, 2027
July 2, 2024	150.0		January 15, 2029
December 23, 2024	150.0		June 15, 2028
December 24, 2024	150.0		December 15, 2026


Date	$’s Under Contract (in millions)		# Pounds Purchased (in millions)	Average Cost/Pound		Approximate % of Lead Requirements (1)
July 5, 2026	$	53.4	59.3	$	0.90	14	%
March 31, 2026	74.9		82.7	0.91		19
June 29, 2025	96.1		107.0	0.90		23


Period	(a) Total number of shares (or units) purchased	(b) Average price paid per share (or unit)		(c) Total number of shares (or units) purchased as part of publicly announced plans or programs	(d) Maximum number (or approximate dollar value) of shares (or units) that may be purchased under the plans or programs (1) (2)
April 1 - April 30, 2026	51,232	$	201.09	—	$	951,353,634
May 1 - May 31, 2026	26,265	230.51		16,356	947,633,788
June 1 - July 5, 2026	204,208	227.96		202,848	900,999,498
Total	281,705	$	223.31	219,204


Exhibit Number						Description of Exhibit



3.1						Fifth Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to Amendment No. 3 to the Company’s Registration Statement on Form S-1 (File No. 333-115553) filed on July 13, 2004).

3.2						Fifth Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the period ended December 29, 2024 (File No. 001-32253) filed on February 5, 2025).







10.1						Form of Award Agreements for Employees - Restricted Stock Units - 2023 EIP (filed herewith)

10.2						Form of Award Agreement for Employees - Performance-Based Stock Units - Adjusted EPS - 2023 EIP (filed herewith)

31.1						Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) Under the Securities Exchange Act of 1934 (filed herewith).

31.2						Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) Under the Securities Exchange Act of 1934 (filed herewith).

32.1						Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

101.INS						XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

101.SCH						XBRL Taxonomy Extension Schema Document

101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF						XBRL Taxonomy Extension Definition Linkbase Document

101.LAB						XBRL Taxonomy Extension Label Linkbase Document

101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document


ENERSYS (Registrant)

By			/s/ Andrea J. Funk
			Andrea J. Funk
			Chief Financial Officer



ENERSYS

By:
Name:						Shawn M. O’Connell
Title:						President & Chief Executive Officer

PARTICIPANT


Name:
Address:


Adjusted Diluted EPS ex IRC 45X	Result	Goal Achievement for Performance Period(1)	Performance Adjustment Percentage
	Below Threshold	Less than $______	0%
	Threshold	$______	50%
	Target	$______	100%
	Superior	$______	200%
	Maximum	$______ or more	300%




By						/s/ Shawn M. O’Connell

						Shawn M. O’Connell
						Chief Executive Officer