EnerSys Reports Record Fiscal 2026 Results as Pricing, Cash Flow, and Strategic Restructuring Support Growth

EnerSys reported a strong finish to fiscal 2026, delivering record fourth-quarter adjusted earnings per share and all-time high full-year sales despite uneven demand across several industrial markets. The company said its results were supported by favorable pricing, disciplined operating costs, share repurchases, and benefits from 45X tax credits.

Fourth-Quarter Results Show Solid Execution

For the fourth quarter, EnerSys posted net sales of $988 million, up 1% from the same period a year earlier. The company said stronger price mix and foreign currency benefits helped offset weaker organic volumes. Adjusted diluted earnings per share reached a record $3.19, rising 7% year over year. Excluding 45X benefits, adjusted EPS was also a record at $1.96.

Management said the performance was especially important because some end markets, including electric forklifts and transportation, remained soft during the year. Still, EnerSys benefited from its diversified business model, improved execution, and cost-control efforts.

Full-Year Sales Reach Record Level

For fiscal 2026, EnerSys generated $3.8 billion in net sales, an all-time high and a 4% increase from the prior year. Adjusted operating earnings reached $540 million, including $159 million from IRC 45X tax credits. Excluding those credits, adjusted operating profit was a record $382 million.

The company’s adjusted diluted EPS for the full year was $10.56. Excluding 45X benefits, adjusted diluted EPS came in at $6.41. These results show that EnerSys continued to improve profitability even while dealing with inflation, tariffs, freight costs, and mixed demand trends.

Segment Performance Was Mixed

Energy Systems

The Energy Systems segment delivered fourth-quarter revenue of $426 million, up 7% year over year. Growth came from better pricing, favorable currency translation, and higher power electronics volume. Adjusted operating earnings increased 23% to $42 million, while adjusted operating margin improved to 10%.

Motive Power

Motive Power remained under pressure. Revenue fell 6% to $370 million, mainly because of lower volumes tied to weaker forklift and transportation demand. Adjusted operating earnings declined 21% to $53 million. However, maintenance-free products continued to gain share within the segment.

Specialty

Specialty revenue rose 8% to $192 million. The segment benefited from stronger aerospace and defense demand, favorable pricing, early contributions from the Rebel acquisition, and currency tailwinds. Adjusted operating earnings increased 20% to $18 million.

Cash Flow and Balance Sheet Remain Strong

EnerSys generated $144 million in operating cash flow during the fourth quarter. After capital spending of $13 million, free cash flow was $131 million. For the full fiscal year, free cash flow totaled $468 million.

As of March 31, 2026, EnerSys held $440 million in cash and cash equivalents. Net debt declined to $684 million, down about $100 million from the end of fiscal 2025. The company also repurchased 410,000 shares during the quarter for $69 million and paid $9.6 million in dividends.

Restructuring Plans Aim to Improve Efficiency

EnerSys is continuing to adjust its manufacturing footprint. The company announced plans to close its Tijuana, Mexico facility and move production to Springfield, Missouri. Management expects this move to create about $20 million in incremental 45X benefits beginning in fiscal 2028.

The company also substantially completed the closure of its Monterrey, Mexico plant. That action is expected to generate roughly $19 million in savings in fiscal 2027. EnerSys said these actions should support higher-margin products, reduce tariff risks, and improve long-term manufacturing flexibility.

Lithium, Data Centers, and Defense Create Future Opportunities

EnerSys is also investing in future growth areas, including lithium solutions, data center power systems, warehouse energy storage, aerospace, and defense. During the quarter, the company advanced lithium data center products and battery energy storage solutions into customer commissioning.

Management said meaningful revenue from these newer products may not arrive until fiscal 2028 because customer validation and OEM handoff processes take time. Still, demand linked to artificial intelligence infrastructure, broadband upgrades, and secure domestic supply chains remains an important long-term opportunity.

Fiscal 2027 Outlook Shows Cautious Optimism

EnerSys expects first-quarter fiscal 2027 net sales of $915 million to $955 million. Adjusted diluted EPS is projected between $2.80 and $2.90, including $42 million to $47 million of 45X benefits. Excluding those benefits, adjusted EPS is expected between $1.61 and $1.71.

The company said market conditions remain dynamic but encouraging. Data centers, communications, and defense are showing strength, while forklift and transportation demand remains softer but appears to be improving. EnerSys also reported a fourth-quarter book-to-bill ratio of 1.1, its highest level in nearly four years.

Conclusion

EnerSys ended fiscal 2026 with record sales, record adjusted earnings, strong free cash flow, and a healthier balance sheet. While some industrial markets remain challenging, the company’s pricing strategy, cost discipline, restructuring program, and exposure to data centers, defense, and energy storage could support continued growth in fiscal 2027 and beyond.

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