EnerSys (ENS) Bundle
A Brief History of H3
Company Overview
H3, as of 2024, operates primarily within the energy systems, motive power, and specialty segments. The company has established itself as a leader in providing advanced battery solutions and energy storage systems.
Financial Performance
For the second quarter of fiscal 2025, H3 reported net sales of $883.7 million, a decrease of $17.3 million or 1.9% from the previous year. The six-month results showed net sales of $1,736.6 million, reflecting a decrease of $73.0 million or 4.0% compared to the same period in fiscal 2024. This decline was attributed to a 3% decrease in organic volume and a 1% decrease in pricing.
Segment Performance
The breakdown of net sales by segment for the quarter ended September 29, 2024, is as follows:
| Segment | Net Sales (Millions) | Percentage of Total Net Sales | Change from Previous Year (%) |
|---|---|---|---|
| Energy Systems | $382.1 | 43.2% | (9.6%) |
| Motive Power | $366.7 | 41.5% | 3.2% |
| Specialty | $134.9 | 15.3% | 9.3% |
| Total | $883.7 | 100.0% | (1.9%) |
Earnings and Expenses
Earnings before income taxes for the quarter ended September 29, 2024, amounted to $84.2 million, representing 9.5% of total net sales, an increase of $10.8 million or 14.7% from the previous year. Operating expenses were $150.5 million, accounting for 17.0% of net sales, compared to 16.0% in the prior year.
Cash Flow and Investments
In the first half of fiscal 2025, H3 utilized cash of $282.5 million for investing activities, primarily for the acquisition of Bren-Tronics at $205.3 million and capital expenditures of $66.5 million. Financing activities yielded cash of $305.3 million during the same period, with significant borrowings under the Second Amended Revolver.
Debt and Credit Facilities
As of September 29, 2024, H3 had $400 million outstanding under the Second Amended Revolver and $110 million under the Second Amended Term Loan. The company maintains a strong liquidity position with $408 million of cash and cash equivalents.
Stock Performance and Shareholder Returns
During the six months of fiscal 2025, H3 repurchased 780,849 shares for $75.2 million. The company has also authorized a new $200 million stock repurchase program.
Market Trends and Future Outlook
The company anticipates continued growth in demand for energy storage solutions, driven by increasing adoption of renewable energy technologies and the transition to electric vehicles. H3's strategic focus on innovation and acquisitions positions it well for future expansion in these markets.
A Who Owns EnerSys (ENS)
Major Shareholders
As of 2024, the ownership structure of EnerSys (ENS) is composed of institutional investors, retail investors, and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.2% | 4,072,221 |
| The Vanguard Group, Inc. | 8.7% | 3,438,250 |
| State Street Corporation | 7.5% | 2,999,000 |
| Invesco Ltd. | 6.4% | 2,547,000 |
| FMR LLC (Fidelity) | 5.9% | 2,354,000 |
| Insider Ownership | 2.1% | 839,000 |
| Other Institutional Investors | 30.0% | 12,000,000 |
| Retail Investors | 29.2% | 11,800,000 |
Insider Transactions
Insider ownership has seen some activity, particularly with executives engaging in stock transactions. As of August 2024, notable transactions included:
- David M. Shaffer, President and CEO, sold 20,000 shares under a 10b5-1 plan.
- Other executives have also participated in stock buybacks, totaling approximately 780,849 shares repurchased at an average price of $96.23 in the first half of fiscal 2025.
Stock Performance
As of September 29, 2024, EnerSys stock was trading at approximately $97.34 per share. The company has seen fluctuations in its stock price over the past year, with a 52-week range of $90.00 to $120.00. The market capitalization of EnerSys stands at around $3.8 billion.
Institutional Ownership Details
Institutional investors hold a significant portion of EnerSys shares, reflecting confidence in the company's long-term growth potential. The following table provides a breakdown of institutional ownership:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 4,072,221 | 10.2% |
| The Vanguard Group, Inc. | 3,438,250 | 8.7% |
| State Street Corporation | 2,999,000 | 7.5% |
| Invesco Ltd. | 2,547,000 | 6.4% |
| FMR LLC (Fidelity) | 2,354,000 | 5.9% |
Recent Developments
In November 2024, EnerSys's Board of Directors authorized a new $200 million stock repurchase program to enhance shareholder value, which reflects the company's commitment to returning capital to its shareholders.
Conclusion on Ownership Structure
The ownership structure of EnerSys is characterized by a diverse base of institutional and retail investors, with significant insider participation. The company's strategic initiatives and robust financial performance are likely to continue attracting investment interest in the future.
EnerSys (ENS) Mission Statement
Corporate Mission
The mission of EnerSys is to provide comprehensive energy solutions that empower customers to achieve their objectives in the evolving energy landscape. The company emphasizes sustainability, innovation, and reliability in its offerings.
Key Financial Metrics (2024)
| Metric | Value (Q2 FY 2025) | Value (Q2 FY 2024) | Change (%) |
|---|---|---|---|
| Total Net Sales | $883.7 million | $901.0 million | -1.9% |
| Gross Profit | $252.1 million | $239.6 million | 5.2% |
| Operating Earnings | $99.4 million | $88.6 million | 12.2% |
| Net Earnings | $82.3 million | $65.2 million | 26.2% |
| Basic Earnings per Share | $2.05 | $1.59 | 29.1% |
| Diluted Earnings per Share | $2.01 | $1.56 | 28.8% |
Business Segments Overview
EnerSys operates through three primary segments: Energy Systems, Motive Power, and Specialty.
Segment Financial Performance (Q2 FY 2025)
| Segment | Net Sales (Q2 FY 2025) | Net Sales (Q2 FY 2024) | Operating Earnings (Q2 FY 2025) | Operating Earnings (Q2 FY 2024) |
|---|---|---|---|---|
| Energy Systems | $382.1 million | $422.5 million | $24.4 million | $25.6 million |
| Motive Power | $366.7 million | $355.2 million | $57.6 million | $53.4 million |
| Specialty | $134.9 million | $123.3 million | $7.5 million | $5.6 million |
Strategic Initiatives
- Innovation: Focus on developing advanced battery technologies and energy solutions to meet customer needs.
- Sustainability: Commitment to reducing environmental impact through energy-efficient products and practices.
- Customer Engagement: Enhance customer relationships through tailored solutions and superior service.
Recent Developments
In January 2024, EnerSys issued $300 million in Senior Notes to strengthen its capital structure and fund strategic initiatives . The company also initiated a $200 million stock repurchase program in November 2024, reflecting confidence in its financial performance and commitment to shareholder returns .
Outlook
EnerSys aims to leverage its strong market position and financial stability to capitalize on growth opportunities in the energy sector, including expanding its footprint in renewable energy solutions and energy storage technologies.
How EnerSys (ENS) Works
Company Overview
EnerSys is a global leader in stored energy solutions for industrial applications. The company primarily operates in three segments: Energy Systems, Motive Power, and Specialty.
Financial Performance
As of the second quarter of fiscal 2025, EnerSys reported total net sales of $883.7 million, a decrease of 1.9% from $901.0 million in the same quarter of fiscal 2024. For the six months ended September 29, 2024, net sales were $1,736.6 million, down 4.0% from $1,809.6 million in the prior year.
| Segment | Q2 FY2025 Net Sales ($ Millions) | Q2 FY2024 Net Sales ($ Millions) | Six Months FY2025 Net Sales ($ Millions) | Six Months FY2024 Net Sales ($ Millions) |
|---|---|---|---|---|
| Energy Systems | 382.1 | 422.5 | 743.1 | 847.1 |
| Motive Power | 366.7 | 355.2 | 732.9 | 706.0 |
| Specialty | 134.9 | 123.3 | 260.6 | 256.5 |
| Total | 883.7 | 901.0 | 1,736.6 | 1,809.6 |
Segment Analysis
The Energy Systems segment experienced a decline in net sales of $40.4 million or 9.6% in Q2 FY2025, attributed to an 8% decrease in organic volume and a 2% decrease in pricing. Conversely, the Motive Power segment increased by $11.5 million or 3.2%, driven by a 3% increase in organic volume. The Specialty segment saw a rise of $11.6 million or 9.3%, primarily from acquisitions and pricing adjustments.
Operating Earnings
Operating earnings for the second quarter of fiscal 2025 were $99.4 million, an increase of 12.2% from $88.6 million in the prior year. The operating earnings as a percentage of total net sales rose to 11.2% from 9.8% year-over-year.
| Segment | Q2 FY2025 Operating Earnings ($ Millions) | Q2 FY2024 Operating Earnings ($ Millions) | Six Months FY2025 Operating Earnings ($ Millions) | Six Months FY2024 Operating Earnings ($ Millions) |
|---|---|---|---|---|
| Energy Systems | 24.4 | 25.6 | 43.4 | 55.2 |
| Motive Power | 57.6 | 53.4 | 113.6 | 103.8 |
| Specialty | 7.5 | 5.6 | 12.2 | 15.4 |
| Total | 99.4 | 88.6 | 190.7 | 178.1 |
Interest Expense and Earnings
Interest expense for the second quarter of fiscal 2025 was $12.5 million, slightly up from $12.2 million in the prior year. For the six months ended September 29, 2024, interest expense decreased to $23.5 million from $27.4 million in the same period last year.
Net Earnings
Net earnings attributable to EnerSys stockholders for Q2 FY2025 were $82.3 million, an increase from $65.2 million in Q2 FY2024. The net earnings per common share were $2.05 for the second quarter, compared to $1.59 in the previous year.
| Metrics | Q2 FY2025 | Q2 FY2024 | Six Months FY2025 | Six Months FY2024 |
|---|---|---|---|---|
| Net Earnings ($ Millions) | 82.3 | 65.2 | 152.4 | 132.0 |
| Basic Earnings per Share | 2.05 | 1.59 | 3.79 | 3.23 |
| Diluted Earnings per Share | 2.01 | 1.56 | 3.72 | 3.17 |
Stock Performance and Dividends
EnerSys has a stock repurchase authorization of $150 million and a new program authorized for an additional $200 million as of November 6, 2024. The company declared dividends of $0.24 per common share in Q2 FY2025, up from $0.225 in Q2 FY2024.
Debt and Capital Structure
As of September 29, 2024, EnerSys had an average debt outstanding of $1,126.9 million. The company issued $300 million in 6.625% Senior Notes due 2032 in January 2024, with proceeds used to pay down existing credit facilities.
Future Outlook
EnerSys continues to invest in growth opportunities, particularly in energy storage solutions and new ventures focusing on electric vehicles and renewable energy applications.
How EnerSys (ENS) Makes Money
Overview of Revenue Streams
EnerSys generates revenue primarily through three business segments: Energy Systems, Motive Power, and Specialty. As of September 29, 2024, the net sales for each segment are as follows:
| Segment | Quarter Ended September 29, 2024 (in millions) | Quarter Ended October 1, 2023 (in millions) | Six Months Ended September 29, 2024 (in millions) | Six Months Ended October 1, 2023 (in millions) |
|---|---|---|---|---|
| Energy Systems | $382.1 | $422.5 | $743.1 | $847.1 |
| Motive Power | $366.7 | $355.2 | $732.9 | $706.0 |
| Specialty | $134.9 | $123.3 | $260.6 | $256.5 |
| Total Net Sales | $883.7 | $901.0 | $1,736.6 | $1,809.6 |
Product Sales
Sales from products accounted for $789.97 million in the quarter ended September 29, 2024, a slight increase from $789.31 million in the previous year. In the six-month period, sales from products totaled $1.55 billion, down from $1.60 billion in the same period of fiscal 2024.
Service Revenue
Sales from services in the quarter ended September 29, 2024, were $93.70 million, compared to $111.72 million in the prior year. For the six months, service sales were $188.09 million, down from $212.64 million.
Cost of Goods Sold (COGS)
The cost of goods sold for the quarter was $553.76 million, compared to $574.14 million in the prior year. For the six months, COGS was $1.09 billion, down from $1.16 billion.
Gross Profit and Operating Earnings
Gross profit for the quarter was $252.15 million, representing a gross margin of 28.5%, an increase from 26.6% in the prior year. For the six months, gross profit increased to $490.52 million from $479.93 million. Operating earnings for the quarter were $99.39 million, up from $88.61 million, while for the six months, operating earnings were $190.72 million, compared to $178.06 million in the previous year.
Segment Performance
Segment operating earnings for the quarter ended September 29, 2024, were as follows:
| Segment | Operating Earnings (in millions) | Percentage of Total Net Sales |
|---|---|---|
| Energy Systems | $24.36 | 6.4% |
| Motive Power | $57.59 | 15.7% |
| Specialty | $7.34 | 5.4% |
| Total Operating Earnings | $99.39 | 11.2% |
Net Earnings and Earnings Per Share
Net earnings attributable to EnerSys stockholders for the quarter were $82.27 million, or $2.05 per share (basic) and $2.01 per share (diluted), compared to $65.23 million, or $1.59 per share (basic) and $1.56 per share (diluted) in the prior year. For the six months, net earnings were $152.38 million, or $3.79 per share (basic) and $3.72 per share (diluted).
Debt and Interest Expense
Interest expense for the quarter was $12.49 million, slightly up from $12.22 million in the previous year. For the six months, interest expense decreased to $23.48 million from $27.46 million in the prior year.
Cash Flow and Liquidity
Operating activities provided cash of $44 million during the six months of fiscal 2025, down from $185.7 million in the same period of fiscal 2024. This decrease was driven by changes in working capital, including accounts receivable and inventory fluctuations.
Future Revenue Recognition
As of September 29, 2024, the aggregate transaction price allocated to unsatisfied performance obligations was approximately $132.66 million, with expected revenue recognition of $68.38 million in fiscal 2025, $54.57 million in fiscal 2026, and $9.71 million in fiscal 2027.
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Resources:
- EnerSys (ENS) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of EnerSys (ENS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View EnerSys (ENS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.