Enersys, the US battery manufacturer, reported 6.1% weaker sales of $852.9 million in its first quarter ending 30 June but said pent-up demand may emerge in its next quarter. Adjusted EBITDA was down 0.8% to $121.4 million. Volumes and mix were lower in its Energy Systems division as a result of continued weakness in Communications. It has been making cost reductions to mitigate the effect.
It declared a quarterly cash dividend increase of 7% to $0.24 per share of common stock.
Foreign exchange rate headwinds and a market-wide drop in Class 8 truck OEM demand hit revenue too. Motive Power was a bright spot, with volumes and margins up year-on-year-year, supported by consistent demand in logistics and warehousing.
It expects communications sector spending to resume in the second half along with volume picking up in the Speciality aftermarket.
CEO David Shaffer said Enersys is in the final testing phase of its first commercially ready fast charge and storage system, which will soon be delivered to its launch customer.
It brought in a new business line in its result period, New Ventures, which includes energy storage and management systems for demand charge reduction, utility back-up power and dynamic fast charging for electric vehicles.
In July, it closed the acquisition of Bren-Tronics, a US manufacturer of portable power solutions, which expands the lithium product offerings to the defence market.
The company is advancing its lithium gigafactory planning and is awaiting the results of the Department of Energy’s funding allocation in the coming weeks. It is building a collaborative relationship with French battery maker Verkor, and is making investments to support its growth. They are progressing on the key agreements to support Enersys’s cell development and factory operations.
Shaffer said some of the first quarter headwinds will persist in the second but added: “…we see promising demand indicators and positive momentum across our business, with sequential growth as we progress through the fiscal year.”
Enersys CFO Andrea Funk said the company remains optimistic about its full-year 2025 financial targets and is increasing the mid-point of its full year fiscal 2025 revenue guidance by $60 million.
