EnerSys Reports Second Quarter Fiscal Year 2027 Results
Key Highlights
- ➤Q2 net sales $949.9M, down 0.1% year over year
- ➤Q2 adjusted diluted EPS $3.22, up 22% year over year
- ➤Q3 outlook: sales $935M-$975M and adjusted EPS $3.05-$3.15
- ➤Ultralife acquisition expected to close in fiscal Q4 2027
- ➤Shareholders received $140.3M, including $130M in repurchases
Expert Statements
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“In the second quarter of fiscal year 2027, we delivered gross margin expansion, adjusted operating margin expansion and adjusted EPS growth while continuing to advance our strategic priorities.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“Precision Power Solutions delivered more than 20% year-over-year sales growth, supported by strong demand for soldier power and munitions, while Network and Infrastructure Solutions delivered 3% growth against an unusually high second quarter prior year comparison, driven by double-digit growth in data centers.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“These strong results helped balance the continued pressure in material handling within our Industrial Mobility Solutions and demonstrate the resilience of our diversified portfolio and the operating discipline we are building through our EnerGize strategy.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“We are also seeing encouraging progress as our new products begin reaching customers.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“During the quarter, we secured our first order for our DataSafe Noir™ lithium solution, began generating sales from our second-generation lithium offering for material handling, and advanced our strategic acquisition plans.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“These are tangible steps toward expanding our higher-value solutions and converting our product development efforts into profitable growth.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“We recently announced that we entered into a definitive agreement to acquire Ultralife, which is a compelling strategic fit for EnerSys and directly advances our strategy to build a broader, more differentiated defense power platform.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“Building on the success of our recent acquisitions, Ultralife would expand our portfolio of advanced, reliable, high-performance power solutions.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“Together, we would be better positioned to support U.S. defense and allied forces with leading-edge, cost-effective technologies for the increasingly electrified battlefield of the future.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“We know the Ultralife business and its team well, and are confident that our shared commitment to engineering, problem solving, and customer focus would create a strong cultural fit.”
Shawn O’Connell, President and Chief Executive Officer of EnerSys
“We look forward to combining our strengths to accelerate growth, enhance performance, and deliver greater value to our customers and shareholders.”
Andrea Funk, Chief Financial Officer of EnerSys
“Our second quarter results demonstrate continued progress in strengthening the earnings power of EnerSys.”
Andrea Funk, Chief Financial Officer of EnerSys
“Improved volumes and favorable price/mix in our PPS and NIS segments, balanced the impact of material handling softness within our IMS segment.”
Andrea Funk, Chief Financial Officer of EnerSys
“We again delivered strong free cash flow, with FCF conversion of 146%.”
Andrea Funk, Chief Financial Officer of EnerSys
“Our focus on operating discipline, cost management and higher-value solutions supports our ability to expand margins while investing in the opportunities ahead.”
Andrea Funk, Chief Financial Officer of EnerSys
“Our third quarter outlook reflects continued strength across Aerospace and Defense, Data Centers, and Transportation, with Communications picking up and Material Handling demonstrating early recovery that should transform IMS segment revenue to year-on-year growth.”
Andrea Funk, Chief Financial Officer of EnerSys
“For the third quarter, we expect net sales of $935 million to $975 million and adjusted diluted EPS of $3.05 to $3.15.”
Andrea Funk, Chief Financial Officer of EnerSys
“We remain focused on translating demand opportunities across all of our end markets into profitable growth.”
Andrea Funk, Chief Financial Officer of EnerSys
“Disciplined capital allocation remains central to our approach as we invest in growth, pursue strategic acquisitions and return capital to shareholders.”
Delivers Gross Margin of 29.9% or 25.2% ex IRC 45X ((1)) and Diluted EPS of $2.42, +34% ($1.22, +61% ex IRC 45X((1)))
(All comparisons against the second quarter of fiscal 2026 unless otherwise noted)
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