EnerSys fiscal 2024 net sales down but EPS up

EnerSys fiscal 2024 net sales down but EPS up

EnerSys fiscal 2024 net sales down but EPS up 1024 646 Batteries International

May 31, 2024: EnerSys the industrial battery giant announced last week its results for its fiscal year ending March 31, 2024.

In brief the figures show that its net sales were down 3.4% to $3.582 billion from $3,780 billion in fiscal 2023. EnerSys attributed this to “a 7% decrease in organic volume” that had been offset by a 4% increase in pricing.

Adjusted net earnings per diluted share for fiscal 2024, on a non-GAAP basis, were $8.35. This compares to the 2023 earnings figure of $5.34 per diluted share.

Net earnings for the fiscal year 2024 were $269.1 million, which included an unfavorable highlighted net of tax impact of $76.2 million. This compared with $175.8 million in fiscal 2023.

David Shaffer, president and CEO said: “We delivered a strong finish to the fiscal year with our balanced business portfolio delivering solid results, highlighted by adjusted earnings per share at the high end of our guidance range.

“We generated gross margin improvement and adjusted operating earnings growth in our base business, which were bolstered by IRC 45X tax credits. In addition, we are realizing the benefits of our cost improvement actions in energy systems, and we are positioning the business to benefit from future growth opportunities.

“Fiscal 2024 was a year of several achievements toward our long-term strategic goals, as we navigated through a challenging environment. We are confident that the foundation we put in place this year, coupled with the investments we have made in our transformation, will yield accelerating results in the coming years.

“Energy scarcity will continue to be a global concern as megatrends are driving rapid growth in demand for reliable power. As a critical supplier of energy systems and energy storage solutions, EnerSys is strategically positioned to capitalize on this growth. Looking to fiscal 2025 and beyond, we remain focused on achieving the long-term targets [already set] and delivering long-term value to our stockholders.”

He said plans on the development of its lithium-ion cell gigafactory had progressed and in the final quarter of the fiscal year Greenville, South Carolina, was chosen as its location with state and local funding totalling $200 million having been acquired.

The firm has applied to the US Department of Energy for additional funding and expects the result to be announced in August. “We intend to use the IRC 45X tax credits to increase our investments in domestic manufacturing of energy dense batteries, as the law intended,” said Shaffer.

Andrea Funk, EnerSys CFO said: “We remain optimistic about the trajectory of our business and are on track to achieve the aggregate fiscal year 2027 targets we set at our Investor Day in June 2023.

“While we are seeing healthy demand trends in the majority of our end markets, we are managing our business prudently to navigate the temporary spending pauses by our telecom and broadband customers. In the first quarter, we expect seasonally lower volume in motive power and continued telecom and broadband spending pauses in energy systems.

“We expect to see some cost improvements and benefits from operational efficiencies flowing through to our bottom line. For fiscal year 2025, we expect volume growth driven by maintenance-free products in motive power, an increase in transportation aftermarket sales, and our first revenues from Fast Charge and Storage, with only moderate recovery in telecom and broadband markets to begin to occur towards the end of the fiscal year.

“The need for intelligent energy storage and management systems will only increase as the demand for electricity is significantly outpacing the capacity of the global grid infrastructure. EnerSys is well-positioned to capitalize on market opportunities as we deliver innovative products that are strategically aligned with these secular trends.”