NYSE$ENS

EnerSys · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

EnerSys reported solid results in the second quarter of fiscal year 2024, driven by Motive Power segment strength and record gross margin.

EnerSys reported net sales of $901 million, a record for the second quarter, with a gross margin of 26.6%, up 490 basis points from the prior year. Diluted EPS was $1.56, an 86% increase year-over-year, and adjusted diluted EPS was $1.84, a 66% increase. The company benefited from a $22 million benefit from Inflation Reduction Act IRC 45X tax credits.

  • Net sales reached $901 million, a record for the second quarter.
  • Gross margin improved to 26.6%, up 490 basis points, including a $22 million benefit from Inflation Reduction Act IRC 45X tax credits
  • Operating earnings increased by 63% to $89 million, and adjusted operating earnings rose by 58% to $103 million.
  • Diluted EPS grew by 86% to $1.56, and adjusted diluted EPS increased by 66% to $1.84.

Headline financials

Total Revenue

$901M

Previous: $899M+0.2%
EPS (adj)

$1.84

Previous: $1.11+65.8%
Change in Sales due to Organic Volume

-7.0%

Previous: 10.0%-170.0%
Change in Sales due to Pricing

6.0%

Previous: 9.0%-33.3%
Capital Expenditures

-$35.9M

Previous: $16.6M-315.5%
Free Cash Flow

$29.4M

Previous: -$15M+295.2%
Net Income

$65.2M

Previous: $34.5M+89.1%
Operating Income

$88.6M

Previous: $54.3M+63.2%
Gross Profit

$240M

Previous: $195M+22.9%
Cash & Equivalents

$328M

Previous: $294M+11.3%
Total Assets

$3.49B

Previous: $3.62B-3.6%
Stock-Based Comp

$5.14M

Previous: $6.53M-21.3%

Revenue & EPS history

EnerSys · Revenue · Quarterly

$901M

Q2 2024+0.2%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

EnerSys · $901M total across 3 segments · Q2 2024

  • Energy Systems
    $423M-3.3%
  • Motive Power
    $355M+5.1%
  • Specialty
    $123M-0.9%

Forward guidance

In the third quarter of fiscal 2024, EnerSys expects adjusted diluted earnings per share in the range of $1.80 to $1.90, inclusive of $0.50 to $0.60 from IRC 45X tax benefits under the IRA. Gross margin is expected to be in the range of 25.0% to 27.0%, including 150bps to 250bps from IRA credits. For the full year of fiscal 2024, capital expenditures are expected to be in the range of $100 million to $120 million.

Tailwinds

  • Optimistic about the trajectory of our business.
  • Pleased with our ability to maintain pricing during the quarter.
  • Officially launched our New Ventures business.
  • Received initial order for Fast Charge and Storage systems from our launch customer.
  • Order pipeline is gaining momentum.

Headwinds

  • Expect to continue to operate in a dynamic macro environment.
  • Managing our business prudently to mitigate risk.
  • Seeing pockets of strong demand.
  • IRS has not yet issued additional clarification guidance related to section 45X which could materially increase or decrease the quantity of our U.S. produced batteries that qualify for this credit.
  • Near-term macro headwinds stabilize.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.1%

Avg return

Earnings day

+1.1%

Avg return

5 days after

-0.6%

Avg return

30 days after

51%

35 / 69 earnings

Positive

+14.2%

Q2 2023

Best reaction

-14.8%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+11.4%+13.7%+6.5%
Q3 2026-13.9%-6.1%-16.2%
Q2 2026+1.4%+9.2%+16.4%
Q1 2026+3.5%+8.2%+14.0%
Q4 2025-14.8%-11.9%-12.9%
Q3 2025+2.8%+7.4%+7.9%
Q2 2025-3.4%+1.0%-4.4%
Q1 2025-2.0%-0.8%+0.5%
Q4 2024+11.4%+10.6%+9.6%
Q3 2024-6.6%-7.1%-3.6%
Q2 2024-3.8%-1.7%+5.6%
Q1 2024-12.3%-7.3%-5.8%
Q4 2023+12.2%+14.8%+19.4%
Q3 2023+4.5%+6.6%-4.0%
Q2 2023+14.2%+15.9%+12.5%
Q1 2023+1.4%+6.0%-4.0%
Q4 2022+9.9%+11.7%-3.9%
Q3 2022-0.4%-3.7%-0.4%
Q2 2022-3.6%-2.9%-10.1%
Q1 2022-4.4%-6.8%-18.9%
Q4 2021+4.0%+3.2%+7.0%
Q3 2021-1.5%-2.0%+7.2%
Q2 2021-5.5%+0.4%+2.5%
Q1 2021+3.9%+1.6%-9.5%
Q4 2020+1.3%+15.3%-1.4%
Q3 2020-7.3%-7.1%-21.6%
Q2 2020-3.2%-4.0%-0.5%
Q1 2020-10.5%-11.0%-9.3%
Q4 2019-2.6%-3.9%+14.1%
Q3 2019-10.8%-20.4%-22.4%
Q2 2019+4.7%+0.6%-6.5%
Q1 2019-5.2%-7.2%+2.2%
Q4 2018+1.1%+1.1%-5.6%
Q3 2018+6.9%+6.6%+11.4%
Q2 2018+2.3%-1.7%-0.6%
Q1 2018-11.2%-11.7%-10.8%
Q4 2017-11.5%-7.5%-13.5%
Q3 2017-0.3%+0.4%-2.8%
Q2 2017+10.1%+18.2%+25.0%
Q1 2017+7.5%+8.1%+4.7%
Q4 2016+7.0%+8.3%-0.2%
Q3 2016-0.3%
Q2 2016+3.2%
Q1 2016-9.3%
Q4 2015+1.5%
Q3 2015-2.6%
Q2 2015-1.5%
Q1 2015-9.3%
Q4 2014+2.5%
Q3 2014+9.1%
Q2 2014-0.5%
Q1 2014+0.1%
Q4 2013+2.5%
Q3 2013-0.9%
Q2 2013-0.6%
Q1 2013+7.0%
Q4 2009+2.8%
Q4 2012+2.8%
Q3 2012+6.7%
Q2 2012+11.2%
Q1 2012-0.2%
Q4 2011-4.0%
Q3 2011+3.7%
Q3 2010+3.7%
Q2 2011+7.8%
Q2 2010+7.8%
Q1 2011-8.4%
Q1 2010-8.4%
Q4 2010-8.4%

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