European Investor
12 Nov 2026, 09:10
EnerSys Falls 1.6% After Hours as Revenue Miss and Softer Q3 Outlook Offset Strong EPS Growth
EnerSys (NYSE: ENS) shares fell about 1.6% in after-hours trading after the company reported strong earnings growth and margin expansion, but second-quarter revenue came in below guidance and the third-quarter outlook pointed to softer sequential earnings.
Fiscal second-quarter net sales were $949.9 million, essentially flat year over year and below the company’s guidance range of $955-$995 million. EnerSys attributed the shortfall primarily to foreign currency translation.
Profitability remained strong. GAAP diluted EPS rose 34% to $2.42, while adjusted diluted EPS increased 22% to $3.22. Gross margin expanded to 29.9% from 29.1%, and adjusted operating earnings increased to $152.4 million from $133.9 million.
Performance was supported by more than 20% sales growth in Precision Power Solutions and double-digit data-center growth within Network and Infrastructure Solutions. These gains helped offset continued weakness in the material-handling business.
EnerSys also maintained a strong balance sheet, with net leverage at 0.8x EBITDA. The company returned about $140 million to shareholders during the quarter, including $130 million of share repurchases, and generated $143 million of operating cash flow.
For the third quarter, EnerSys expects revenue of $935-$975 million and adjusted EPS of $3.05-$3.15, below the $3.22 delivered in Q2. Management cited tougher margin comparisons and ongoing mix effects, even as demand remains strong in aerospace and defense, data centers and transportation.
The 1.6% after-hours decline appears to reflect the revenue miss and softer sequential EPS outlook, which outweighed strong margin expansion, earnings growth and cash generation.
EnerSys (NYSE: ENS) shares fell about 1.6% in after-hours trading after the company reported strong earnings growth and margin expansion, but second-quarter revenue came in below guidance and the third-quarter outlook pointed to softer sequential earnings.
Fiscal second-quarter net sales were $949.9 million, essentially flat year over year and below the company’s guidance range of $955-$995 million. EnerSys attributed the shortfall primarily to foreign currency translation.
Profitability remained strong. GAAP diluted EPS rose 34% to $2.42, while adjusted diluted EPS increased 22% to $3.22. Gross margin expanded to 29.9% from 29.1%, and adjusted operating earnings increased to $152.4 million from $133.9 million.
Performance was supported by more than 20% sales growth in Precision Power Solutions and double-digit data-center growth within Network and Infrastructure Solutions. These gains helped offset continued weakness in the material-handling business.
EnerSys also maintained a strong balance sheet, with net leverage at 0.8x EBITDA. The company returned about $140 million to shareholders during the quarter, including $130 million of share repurchases, and generated $143 million of operating cash flow.
For the third quarter, EnerSys expects revenue of $935-$975 million and adjusted EPS of $3.05-$3.15, below the $3.22 delivered in Q2. Management cited tougher margin comparisons and ongoing mix effects, even as demand remains strong in aerospace and defense, data centers and transportation.
The 1.6% after-hours decline appears to reflect the revenue miss and softer sequential EPS outlook, which outweighed strong margin expansion, earnings growth and cash generation.
