EnerSys Reports 5% Q1 Revenue Growth, Boosts Shareholder Returns with $1B Buyback and Dividend Hike

EnerSys (NYSE: ENS), a global leader in stored energy solutions, today announced strong financial results for its first quarter of fiscal year 2026, highlighted by a 5% year-over-year increase in net sales to $893 million. The robust performance was driven by the successful integration of its Bren-Tronics acquisition, a recovery in the Communications market, and strong demand from the Data Center sector.

The company reported an adjusted diluted earnings per share (EPS) of $2.08, marking a 5% increase compared to the same period last year and meeting its guidance range. This growth comes alongside significant strategic initiatives aimed at enhancing long-term shareholder value.

In a strong show of confidence, the EnerSys Board of Directors has approved a $1 billion increase to its share repurchase authorization, to be executed over the next five years. Additionally, the Board declared a 9% increase in the company’s quarterly dividend to $0.2625 per share, the third consecutive annual increase. In total, the company returned $159 million to shareholders during the first quarter.

“We delivered revenue of $893 million in the first quarter, up 5% year-over-year with adjusted diluted EPS of $2.08,” said Shawn O’Connell, President and Chief Executive Officer of EnerSys. He noted that while the base business faced headwinds from foreign exchange rates and tariff uncertainty affecting the forklift market, the company’s diversified portfolio provided a solid foundation for growth.

Looking ahead, O’Connell introduced “EnerGize,” a new strategic framework designed to drive the next era of growth for EnerSys. The first phase of this initiative includes a workforce reduction and organizational realignment expected to generate approximately $80 million in annualized cost savings.

“This action is more than a cost reduction; this reduces layers of management, enabling us to be much more agile and focused,” O’Connell explained. “EnerGize is about unlocking value: for our customers, for our shareholders, and for our teams.”

CFO Andrea Funk expressed confidence in the company’s trajectory, stating that the first quarter is expected to be the low point for earnings this fiscal year. “Our diversified business model is a strength, helping offset the near-term pressure in tariff-sensitive markets,” Funk said. “We are encouraged by sustained strength in Data Centers, a recovery underway in Communications, and long-term demand in Defense.”

For the second quarter of fiscal 2026, EnerSys anticipates:

• Net sales between $870 million and $910 million.

• Adjusted diluted EPS in the range of $2.33 to $2.43.

The company maintained a healthy balance sheet, with a net leverage ratio of 1.6 times EBITDA, which is below the low end of its target range. EnerSys will host a conference call on August 7, 2025, to further discuss its quarterly results and strategic outlook.