Energizer Holdings Q2 2025 Earnings Summary

• Net Sales: $662.9 million (–0.1% YoY)
o Organic sales grew 1.4%, marking the fourth straight quarter of organic growth
o Currency headwinds of 1.7% offset gains
• Gross Margin: 39.1% reported; 40.8% adjusted (up 30 bps YoY)
• Net Earnings: $28.3 million (vs. $32.4 million in Q2 2024)
• GAAP EPS: $0.39 (vs. $0.45)
• Adjusted EPS: $0.67 (vs. $0.72)
• Adjusted EBITDA: $140.3 million (vs. $142.5 million)
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Segment Highlights:
• Batteries & Lights: $488.0 million in sales (+1.5%); segment profit of $112.3 million (–1.1%)
• Auto Care: $174.9 million in sales (–4.1%); segment profit of $35.2 million (–12.9%)
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Key Operating Drivers:
• Growth driven by expanded distribution and innovation in Batteries & Lights
• Auto Care impacted by timing shift in refrigerant sales
• Gross margin benefited from ~$16 million in Project Momentum savings
• SG&A increased due to digital transformation and legal fees
• A&P spend declined slightly to 3.1% of net sales

Balance Sheet (as of March 31, 2025):
• Cash: $139.3 million
• Inventory: $748.6 million
• Total Assets: $4.21 billion
• Total Debt: $3.16 billion
• Net Debt: $3.02 billion
• Shareholders’ Equity: $133.9 million

Cash Flow:
• Operating Cash Flow (YTD): $64.2 million
• Free Cash Flow (YTD): $8.6 million
• Q2 Dividend: $22 million ($0.30 per share)

Recent Developments:
• Closed acquisition of Advanced Power Solutions NV on May 2, 2025
• Successfully refinanced term loan and credit facility

FY 2025 Outlook (Excludes APS Impact):
• Organic and Reported Net Sales: Flat to +2%
• Adjusted EBITDA: $610–$630 million
• Adjusted EPS: $3.30–$3.50
• Q3 Guidance:
o Net Sales: Flat to –2%
o Adjusted EPS: $0.55–$0.65

Energizer Holdings, Inc. reported strong financial results for the first fiscal quarter of 2025, ending December 31, 2024.

**Key Highlights:**
- Net sales increased by 2.1%, reaching $731.7 million, compared to $716.6 million in the prior year.
- Organic net sales grew by 3.8%, with growth across both Battery and Auto Care segments.
- Gross margin for the quarter was 36.8%, improving to 40.0% on an adjusted basis, reflecting a 50 basis point improvement from the prior year.
- Earnings per share (EPS) were $0.30, while adjusted EPS was $0.67, marking a 14% increase on an adjusted basis.
- Net leverage was reduced to 4.7 times, driven by debt paydown and adjusted EBITDA growth.
- The company raised its organic net sales growth outlook for fiscal 2025 to 2% to 3%, while reaffirming its outlook for adjusted EPS and adjusted EBITDA.

**Top-Line Performance:**
- Net sales of $731.7 million were up from $716.6 million in the previous year.
- Organic net sales increased by 3.8%, driven by higher volumes in Battery & Lights, particularly due to new and expanded distribution.
- Hurricanes contributed around $10 million in additional volume, representing 1.4% organic growth.
- Volume increases in Auto Care were driven by distribution gains, international expansion, and growth in digital commerce, although this was partially offset by an earlier shift in holiday orders.

Mark LaVigne, CEO, expressed satisfaction with the company's strong performance and its ability to execute strategies effectively, especially with the solid earnings growth and free cash flow that enabled consistent debt reduction.