April 7, 2022: The board of lead batteries producer EnerSys announced a $150 million stock repurchase authorization on March 9.

EnerSys said there was no expiration date for the program, which would take the company’s total outstanding repurchase authorization to an aggregate of $181 million, including $31 million available under the board’s previous repurchase authorization, approved on November 4, 2021.

In fiscal year 2022 to date, EnerSys has repurchased $159 million in shares.

EnerSys said it estimated an additional $30 million would become available on April 1, 2022, as part of its evergreen stock buyback authorization — designed to offset dilution related to its equity-based award program.

‘Reflects confidence’

The company estimates its total outstanding share repurchase authorization to be an aggregate $210 million, on a pro forma basis.

EnerSys president and CEO David Shaffer (pictured) said the decision “reflects our confidence in EnerSys’ future and commitment to driving long-term shareholder value”.

“We have a disciplined capital allocation strategy in place, and our healthy financial position provides us with the flexibility to invest in our long-term growth and return cash to shareholders when appropriate.”

EnerSys said the authorized repurchases would be made from time to time in either the open market or through privately negotiated transactions and at the sole discretion of management. The initiative can be modified or halted at any time.