EnerSys (ENS) Q4 2026 Earnings Transcript

President and Chief Executive Officer — Shawn O Connell Executive Vice President and Chief Financial Officer — Andrea J. Funk Vice President, Investor Relations — Lisa Langell Need a quote from a Motley Fool analyst? Email pr@fool.com Lisa Langell: Good morning, everyone. Thank you for joining us today to discuss EnerSys fourth quarter and full fiscal year 2026 results. On the call with me are Shawn O Connell, EnerSys president and chief executive officer and Andrea J. Funk, EnerSys executive vice president and chief financial officer. Last evening, we published our fourth quarter and fiscal year 2026 results and our 10 k with the SEC, which are available on our website. We also posted slides that we will be referring to during this call. The slides are available on the presentations page within the Investor Relations section of our website. As a reminder, we will be presenting certain forward looking statements on this call that are subject to uncertainties and changes in circumstances. Our actual results may differ materially from these forward looking statements for a number of reasons. These statements are made only as of today. For a list of forward looking statements and factors which could affect our future results, please refer to our recent Form 8-Ks and 10-Ks filed with the SEC. In addition, we will be presenting certain non GAAP financial metrics particularly concerning our adjusted consolidated operating earnings per performance free cash flow, adjusted diluted earnings per share and adjusted EBITDA which excludes certain items. For an explanation of the difference between the GAAP and non GAAP financial metrics, please see our company s Form 8 k which includes our press release dated May 20, 2026. Now I will turn the call over to EnerSys CEO, Sean O Connell. Shawn O Connell: Thank you, Lisa, and good morning. Please turn to slide 4. During today s call, we will review our fourth quarter and full year fiscal 2026 results, update you on our energized strategic framework and demand trends, and close with guidance for the first quarter of fiscal year 2027. Please turn to Slide 5. In the fourth quarter, we delivered our highest quarterly adjusted EPS with and without 45X, on our second highest quarterly revenue and strong free cash flow. Driven by favorable price mix, ongoing OpEx discipline, and the impact of our accelerating stock buybacks. We ended the year with full year record sales, adjusted gross profit, adjusted operating earnings, and adjusted diluted earnings per share all before the benefit of 45X. It is notable that our ability to generate this level of earnings during the year in which demand in the electric forklift and transportation markets was down is a testament to the effectiveness of our energized strategic framework, the strength of our diversified business, and our renewed ability to perform across varied demand conditions going forward. We have structurally enhanced our business and are well positioned to deliver further value. Please turn to Slide 6. In fiscal 26, we implemented our energized strategic framework and are seeing meaningful benefits across the business. Starting with optimizing our core, This quarter, we announced the closure of our Tijuana, Mexico facility, the shift of production to our Springfield, Missouri plant which we expect will generate approximately $20 million of incremental 45X benefits beginning in fiscal 2028. We also substantially completed our previously announced plant closure in Monterrey, Mexico in which we expect to yield approximately $19 million of savings in fiscal 2027 and have already seen early realization of related incremental 45X benefits this quarter. These 2 projects will further optimize our manufacturing footprint maximize 45X tax benefits, support the continued transition to our higher margin higher performance solutions, and mitigate future risks associated with tariffs. All while better serving our customers. We are also invigorating our operating model to improve execution speed strengthen alignment across the organization. As an example,, our centers of excellence delivered early working capital improvements through better collaboration of our supply chain and purchasing teams contributing to our strong free cash flow. Additionally, work progressed to accelerate our growth through new product developments and deeper service and software capabilities, 2 top priorities on our road map. Our lithium data center solution and battery energy storage solutions for warehouse operators both advanced into customer commissioning this quarter. As these launches gain traction in upcoming years, we expect the driver of our earnings improvement to shift increasingly from margin expansion toward top line growth. Over the past year, we have refined our overall go to market strategy to bring new products to market faster new customer focused projects, optimize product design, streamline supply chain, and the competitive advantage of

EnerSys (ENS) Q4 2026 Earnings Transcript

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EnerSys (ENS) Q4 2026 Earnings Transcript

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