EnerSys Reports Q2 FY2027 Financial Results
EnerSys (NYSE: ENS), a global provider of stored energy solutions for industrial, infrastructure and defense applications, has reported financial results for the second quarter of fiscal 2027, which ended October 4, 2026. The company recorded nearly flat quarterly revenue compared with the prior-year period, while gross profit, operating earnings and adjusted earnings per share increased.
President and Chief Executive Officer Shawn O’Connell said EnerSys expanded gross margin and adjusted operating margin during the quarter and achieved growth in adjusted earnings per share. He attributed the performance to progress across the company’s strategic priorities and the contribution of its diversified business portfolio.
Precision Power Solutions delivered sales growth of more than 20% year over year, supported by demand for soldier power products and munitions. Network and Infrastructure Solutions increased sales by 3%, despite comparison with an unusually strong prior-year second quarter. Double-digit growth in data center-related business supported that segment’s performance.
These gains helped offset continued pressure in material handling within Industrial Mobility Solutions. O’Connell said the results demonstrated the resilience of EnerSys’ portfolio and reflected operating discipline being developed through its EnerGize strategy.
The company also reported progress in bringing new products to market. During the quarter, EnerSys received its first order for its DataSafe Noir lithium solution and began generating sales from its second-generation lithium offering for material handling applications. Management said these developments represent steps toward expanding higher-value solutions and turning product development investments into profitable growth.
EnerSys is also pursuing a proposed acquisition of Ultralife after announcing a definitive agreement. O’Connell described the transaction as a strategic fit that would broaden EnerSys’ defense power platform and build on the company’s recent acquisitions. Ultralife would add advanced, reliable and high-performance power solutions, strengthening EnerSys’ ability to serve U.S. defense customers and allied forces.
The companies expect the combined portfolio to support requirements associated with an increasingly electrified battlefield. O’Connell also pointed to familiarity with Ultralife’s business and team, citing shared priorities in engineering, problem-solving and customer focus. He said the combination is expected to create opportunities to accelerate growth, improve performance and deliver value to customers and shareholders.
The proposed transaction remains subject to customary closing conditions, including required regulatory approvals. Until completion, EnerSys and Ultralife will continue operating as separate and independent companies.
Second-Quarter Financial Performance
EnerSys reported net sales of $949.9 million for the second quarter, compared with $951.3 million in the corresponding period a year earlier, a decrease of 0.1%. Revenue was below the company’s guidance range of $955 million to $995 million. EnerSys attributed both the year-over-year decline and the shortfall against guidance to foreign currency translation.
Despite the modest revenue decline, several profitability measures improved. GAAP gross profit rose to $284.4 million from $277.2 million, an increase of $7.2 million. GAAP operating earnings reached $115.5 million, compared with $92.0 million in the prior-year quarter, representing growth of $23.5 million.
Adjusted operating earnings, a non-GAAP measure, increased to $152.4 million from $133.9 million. EBITDA was $141.6 million, compared with $116.6 million, while adjusted EBITDA increased to $170.4 million from $150.5 million.
Net earnings attributable to EnerSys stockholders were $89.6 million, or $2.42 per diluted share. The comparable quarter in fiscal 2026 produced net earnings of $68.4 million, or $1.80 per diluted share. The current-quarter GAAP results included an unfavorable after-tax impact of $29.3 million, equivalent to $0.80 per diluted share, from highlighted items.
In the prior-year quarter, highlighted items had an unfavorable after-tax impact of $32.4 million, or $0.85 per diluted share. Excluding the highlighted items, adjusted net earnings per diluted share were $3.22 in the second quarter of fiscal 2027. That result was within the company’s guidance range of $3.15 to $3.25 per share and exceeded the $2.65 reported on an adjusted basis in the prior-year quarter.
First-Half Fiscal 2027 Results
For the six months ended October 4, 2026, EnerSys generated net sales of $1.8855 billion, up 2.2% from $1.8443 billion in the first six months of fiscal 2026. The increase reflected approximately 1% growth in pricing and 1% growth in organic volume.
Net earnings for the six-month period were $206.1 million, or $5.52 per diluted share. The result included an unfavorable after-tax impact of $50.5 million, or $1.36 per diluted share, from highlighted items. In the comparable prior-year period, net earnings were $125.9 million, or $3.26 per diluted share, including an unfavorable after-tax impact of $62.4 million, or $1.62 per diluted share, from highlighted items.
On an adjusted, non-GAAP basis, diluted earnings per share for the first half of fiscal 2027 were $6.88, compared with $4.88 in the same period of the previous fiscal year. The company’s first-half financial performance therefore reflected higher sales and stronger reported and adjusted earnings compared with the prior-year period.
Capital Returns and Dividend
EnerSys continued returning capital to shareholders through share repurchases and dividends. During the second quarter, the company repurchased $130.0 million of its shares, compared with $67.7 million in the prior-year quarter. For the first six months of fiscal 2027, share repurchases totaled $180.0 million, compared with $217.8 million a year earlier.
The company’s quarterly dividend increased to $0.2875 per share from $0.2625 a year earlier. Total capital returned to stockholders was $140.3 million, up from $77.5 million in the quarter. For the six-month period, capital returned was $199.9 million, compared with $236.7 million in the prior year.
Separately, EnerSys announced that its Board of Directors approved a quarterly cash dividend of $0.2875 per share of common stock. The dividend is scheduled to be paid on December 31, 2026, to shareholders of record on December 18, 2026.
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