Enersys · NYSE:ENS

Enersys — Q2 2025 Earnings Presentation

28 slides from Enersys's earnings presentation, Nov 7, 2024

Slide 2: Forward Looking Statements
Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements on this call that are based on Management’s current expectations and views regarding future events and operating performance and are subject to uncertainties and changes in circumstances. Our actual re
Slide 4: Planned Executive Succession
Planned Executive Succession COMMITTED TO SMOOTH TRANSITION • Dave Shaffer, EnerSys CEO, to retire May 2025 • Shawn O’Connell named successor – Promoted1 to President and Chief Operating Officer – Will continue to serve as President, Energy Systems Global until successor named; comprehensive search
Slide 5: Q2'25 Performance
Q2’25 Performance $884M $115M $129M $2.12 $3M Net Sales Adj Op Adj Adj EPS1 Free Cash Earnings1 EBITDA1 Flow1 (2%) Y/Y +11% Y/Y +11% Y/Y +15% Y/Y ($88M) Y/Y Adj Op Earnings1 Adj EBITDA1 Margin of 13.0% Margin of 14.6% Adjusted Gross Profit1 Margin of 28.7% up +210bps vs prior year November 2024 1) N
Slide 6: Q2'25 Executing on Our Strategy
Q2’25 Executing on Our Strategy Increasing Higher Value Solutions • Delivered our first Fast Charge & Storage system • EnVision Connect solution for wireless system monitoring and optimization of network batteries Innovate • ABSL lithium-ion battery for space powering NASA’s Europa Clipper spacecraf
Slide 7: Gigafactory Overview
Gigafactory Overview Image: Artist Rendition Project Overview Strategic and Financial Benefits Financial Highlights • 500,000 square foot, 5GWh ✓ Supports mix shift to higher performance Capital Investment capacity, lithium-ion cell lithium solutions • $665M capital investment to construct and commi
Slide 8: Climate Action Plan Published
Climate Action Plan Published ROADMAP TO CARBON NEUTRALITY CARBON-NEUTRAL NEUTRALITY BY NEUTRALITY BY TRANSITION BY ELECTRICITY BY SCOPE SCOPE FOSSIL FUELS 1 2040 2 2050 2040 CLEAN ENERGY 2050 Facilities Grid Stability and Resilience Investment in • Increase efficiency of equipment • Eliminate Fossi
Slide 10: Q2'25 Results
Q2’25 Results N E T S AL E S AD J O P E AR N I N G S 1 & M AR G I N $901 $884 $115 $104 Y/Y Change 11.5% 13.0% (3%) volume (1%) price +2% acquisition Flat FX Q2'24 Q2'25 Q2'24 Q2'25 AD J E B I T D A 1 & M AR G I N AD J D I L U T E D E P S 1 $129 $1.84 $2.12 $116 12.9% 14.6% Q2'24 Q2'25 Q2'24 Q2'25 D
Slide 11: Energy Systems Segment Highlights
Energy Systems Segment Highlights Q2’25 ($M) Y/Y change Net Sales $382 (10%) Adj Op Earnings1 $24.2 (5%) Adj OE Margin1 6.4% +30 bps • Net Sales (10%) Y/Y ‒ (8%) volume, (2%) price / mix, flat FX ‒ Y/Y decline driven by Communications spending pause ‒ First Q/Q increase in six quarters, a positive s
Slide 12: Motive Power Segment Highlights
Motive Power Segment Highlights Q2’25 ($M) Y/Y change Net Sales $367 +3% Adj Op Earnings1 $57.6 +8% Adj OE Margin1 15.7% +70 bps • Net Sales +3% Y/Y ‒ +3% volume, flat price/mix and FX ‒ Maintenance-free products increased to 26% of sales from 22% in Q2’24 • Adj Op Earnings1 +$4M Y/Y ‒ Increased vol
Slide 13: Specialty Segment Highlights
Specialty Segment Highlights Q2’25 ($M) Y/Y change Net Sales $135 +9% Adj Op Earnings1 $7.5 +31% Adj OE Margin1 5.4% +90 bps • Net Sales +9% Y/Y ‒ +12% acquisition, +1 price/mix, (4%) volume, flat FX ‒ Strong A&D demand & accretive Bren-Tronics, partially offset by Class 8 truck OEM market softness
Slide 14: Balance Sheet, Cash Flow and Leverage
Balance Sheet, Cash Flow and Leverage S E L E C T E D B AL AN C E S H E E T M E T R I C S 1 S E L E C T E D C AS H F L O W M E T R I C S 2 ($M) Q4’24 Q2’25 ($M) Q2’24 Q2’25 Cash and Cash Equivalents $333 $408 Cash Flow from Operations $111 $34 Net Debt3 $511 $840 Net Leverage Ratio3 1.0x 1.6x CapEx
Slide 15: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Priorities Q2’25 Future Priorities • Continue TPPL capacity investments & end-to-end solutions Invest in Organic Growth (CapEx) $30M • Optimize EOS to drive additional operational efficiencies • Accelerate domestic-sourced lithium strategy Bren-Tronics complet
Slide 16: Looking Ahead: Q3'25 and FY'25 Guidance
Looking Ahead: Q3’25 and FY’25 Guidance AS S U M P T I O N S Q3’25 FY’25 Q3’25 • Healthy demand in Motive Power, Data Center, and A&D Net Sales $920M – $960M $3,675M – $3,765M Prev. $3,735M – $3,885M • Continued improvement in Communications demand • Transportation aftermarket volume growth; Class 8
Slide 20: Non-GAAP Reconciliation: Adjusted Operating Earnings
Non-GAAP Reconciliation Q 2 F Y ’ 2 5 A D J U S T E D O P E R AT I N G E A R N I N G S November 2024 © 2024 EnerSys. All Rights Reserved. 20
Slide 23: Non-GAAP Reconciliation: Leverage Ratio by Year
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Y E A R (1) The $85.8 million adjustment to EBITDA in the last twelve months ending March 31, 2024 primarily related to $30.6 million of non-cash stock compensation, $40.7 million of restructuring and other exit charges, impairment of indefinite-l
Slide 24: Non-GAAP Reconciliation: Leverage Ratio by Quarter
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Q U A R T E R (1) The $79.9 million adjustment to EBITDA in the last twelve months ending September 29, 2024 primarily related to $29.7 million of non-cash stock compensation, $38.9 million of restructuring and other exit charges, impairment of in
Slide 27: Key Performance Indicator: Primary Operating Capital
Key Performance Indicator P R I M A R Y O P E R AT I N G C A P I TA L As part of managing the performance of our business, we monitor the level of primary operating capital, and its ratio to net sales. We define primary operating capital as accounts receivable, plus inventories, minus accounts payab
Slide 28: Thank you.
Thank you. For more information visit us at www.enersys.com World Headquarters EnerSys EMEA EnerSys Asia 2366 Bernville Road EH Europe GmbH 152 Beach Road Reading, PA 19605 USA Baarerstrasse 18 Gateway East Building #11- 08 +1 610-208-1991 / +1 800-538-3627 6300 Zug Switzerland Singapore 189721 / +6

EnerSys — Q2 2025 Earnings Presentation on 6ix

Enersys — Q2 2025 Earnings Presentation

Slide 1: Q2'25 Earnings

Slide 2: Forward Looking Statements

Slide 3: Q2'25 Overview

Slide 4: Planned Executive Succession

Slide 5: Q2'25 Performance

Slide 6: Q2'25 Executing on Our Strategy

Slide 7: Gigafactory Overview

Slide 8: Climate Action Plan Published

Slide 9: Q2'25 Financial Results, Q3'25 & FY'25 Outlook

Slide 10: Q2'25 Results

Slide 11: Energy Systems Segment Highlights

Slide 12: Motive Power Segment Highlights

Slide 13: Specialty Segment Highlights

Slide 14: Balance Sheet, Cash Flow and Leverage

Slide 15: Disciplined Capital Allocation Strategy

Slide 16: Looking Ahead: Q3'25 and FY'25 Guidance

Slide 17: Q&A

Slide 18: Appendix

Slide 19: Non-GAAP Reconciliations

Slide 20: Non-GAAP Reconciliation: Adjusted Operating Earnings

Slide 21: Non-GAAP Reconciliation: Q2 FY'25 Adjusted EBITDA

Slide 22: Non-GAAP Reconciliation: Q2 FY'25 Adjusted Diluted EPS

Slide 23: Non-GAAP Reconciliation: Leverage Ratio by Year

Slide 24: Non-GAAP Reconciliation: Leverage Ratio by Quarter

Slide 25: Non-GAAP Reconciliation: Free Cash Flow

Slide 26: Non-GAAP Reconciliation: Adjusted Gross Profit and Gross Margin

Slide 27: Key Performance Indicator: Primary Operating Capital

Slide 28: Thank you.