August 15. 2025: EnerSys has announced a $1 billion increase to its shares buyback program to be completed over the next five years.
The lead and lithium battery giant announced the board’s authorization for the program, along with a quarterly dividend increase of 9%, on August 6.
The move came just days after Batteries International reported EnerSys was cutting 575 non-production jobs as part of a restructuring plan aimed at securing $80 million in annualized savings.
On the new stock buy-back program, EnerSys said repurchases would be made from time to time on either the open market or through privately negotiated deals.
EnerSys said the timing, volume and nature of share repurchases would be at the sole discretion of its management, dependent on market conditions, applicable securities laws, and other factors, and may be suspended or discontinued at any time.
The company said it could give no assurance that any particular amount of common stock would be repurchased.
In a related August 6 announcement, EnerSys reported increased first-quarter revenue for fiscal 2026, buoyed by the firm’s acquisition of portable power firm Bren-Tronics, strong datacenter demand, and a rebound in the US telecoms market.
Revenue rose 4.7% year-on-year to $893 million. Adjusted diluted earnings per share was $2.08, up 5% from the previous year. However, basic earnings per share, excluding tax credit benefits, fell 6% to $1.11.
Chief financial officer, Andrea Funk, said the first quarter had been hit by tariff-related delays in customer purchasing, such as in the forklift and transportation markets, plus foreign exchange pressures.
EnerSys president and CEO Shawn O’Connell said earnings growth, strong cash flow and a solid balance sheet enabled the firm to continue investing in long-term growth while returning more capital to shareholders.
He said the stock repurchase authorization reflected the firm’s belief in the value of the company and its growth trajectory.
“At the same time, we are committed to maintaining a competitive dividend that grows with our earnings, excluding the effects of 45X (federal clean energy tax) benefits. During this period of macro uncertainty, we intend to keep our leverage below the low end of our target range, retaining a prudent level of dry powder for future capital allocation optionality.”
