Slide 1: Q3'25 Earnings
Q3’25 Earnings FEBRUARY 5, 2025 February 2025 © 2025 EnerSys. All Rights Reserved. 1
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 3: Q3'25 Overview
Q3’25 Overview D AV E S H A F F E R CHIEF EXECUTIVE OFFICER February 2025 © 2025 EnerSys. All Rights Reserved.
Slide 4: Q3'25 Performance
Q3’25 Performance $906M $155M $171M $3.12 $57M Net Sales Adj Op Adj Adj EPS1,2 Free Cash Earnings1,2 EBITDA1,2 Flow1 +5% Y/Y +19% Y/Y +19% Y/Y +22% Y/Y ($55M) Y/Y Adj Op Earnings1 Adj EBITDA1 Margin of 17.1% Margin of 18.9% Adjusted Gross Profit1 Margin of 33.0% up +230bps Y/Y; up +80bps ex IRA 1) N
Slide 5: Q3'25 Executing on Our Strategy
Q3’25 Executing on Our Strategy Increasing Higher Value Solutions • Designing BESS1 for Motive Power (MP) — lithium and software technologies to optimize energy use, support peak shaving, and enhance operational flexibility with rapid deployment and semi-portable design • Previewing Next-Generation
Slide 6: Awards and Recognition
Awards and Recognition 2025 Earned the 2025 Military EnerSys Wins Prestigious Newsweek's America’s Friendly® Employer German ESG Most Responsible Companies Designation Transparency Award Ranked at #208 – 144 spots higher than last year February 2025 © 2025 EnerSys. All Rights Reserved. 6
Slide 7: Segment Performance and Operations
Segment Performance and Operations S H AW N O ’ C O N N E L L PRESIDENT AND COO February 2025 © 2025 EnerSys. All Rights Reserved.
Slide 8: Q3'25 Business Segment Performance
Q3’25 Business Segment Performance ENERGY SYSTEMS MOTIVE POWER SPECIALTY • AI-driven data demand fueling • Expanding lithium and IoT- • Significant growth driven by U.S. Communications network enabled products to enhance robust A&D demand for expansion customer experience chargers, soldier power and
Slide 9: Q3'25 Financial Results, Q4'25 & FY'25 Outlook
Q3’25 Financial Results ANDI FUNK Q4’25 & FY’25 Outlook EVP AND CFO February 2025 © 2025 EnerSys. All Rights Reserved.
Slide 10: Q3'25 Results
Q3’25 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 $155 $862 $906 $130 Q3’24 Q3’25 Y/Y Change includes includes +2% volume $59M IRA 17.1% $75M IRA 15.1% +2% price benefit, benefit, +3% acquisition $29M $36M (2%) FX retroactive retroactive Q3'24 Q3'25 Q3'24 Q3'25 AD J E B I T D A 1 &
Slide 11: Energy Systems Segment Highlights
Energy Systems Segment Highlights Q3’25 ($M) Y/Y change Net Sales $389 +4% Adj Op Earnings1 $25.3 +77% Adj OE Margin1 6.5% +270 bps • Net Sales +4% Y/Y ‒ +6% volume, flat price / mix, (2%) FX ‒ First Y/Y improvement in six quarters, driven by the recovering U.S. Communications spending • Adj Op Earn
Slide 12: Motive Power Segment Highlights
Motive Power Segment Highlights Q3’25 ($M) Y/Y change Net Sales $359 +1% Adj Op Earnings1 $52.7 (0%) Adj OE Margin1 14.7% (20 bps) • Net Sales +1% Y/Y ‒ +2% price/mix, +1% volume, (2%) FX ‒ Maintenance-free products increased to 27% of sales from 23% in Q3’24 ‒ Net Sales impacted by one-time events,
Slide 13: Specialty Segment Highlights
Specialty Segment Highlights Q3’25 ($M) Y/Y change Net Sales $155 +17% Adj Op Earnings1 $9.5 +28% Adj OE Margin1 6.2% +50 bps • Net Sales +17% Y/Y ‒ +21% acquisition, +2% price/mix, (6%) volume, flat FX ‒ Sequential volumes up 4% ‒ Strong A&D demand and outperformance of Bren-Tronics, partially offs
Slide 14: Balance Sheet, Cash Flow and Leverage
Balance Sheet, Cash Flow and Leverage S E L E C T E D B AL AN C E S H E E T M E T R I C S 1 S E L E C T E D C AS H F L O W M E T R I C S 2 ($M) Q4’24 Q3’25 ($M) Q3’24 Q3’25 Cash and Cash Equivalents $333 $463 Cash Flow from Operations $135 $81 Net Debt3 $511 $852 Net Leverage Ratio3 1.0x 1.5x CapEx
Slide 15: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Priorities Q3’25 Future Priorities • Continue TPPL capacity investments & end-to-end solutions Invest in Organic Growth $24M • Optimize EOS to drive additional operational efficiencies (CapEx) • Accelerate domestic-sourced lithium strategy • Focused on opportu
Slide 16: Looking Ahead: Q4'25 and FY'25 Guidance
Looking Ahead: Q4’25 and FY’25 Guidance AS S U M P T I O N S Q4’25 FY’25 $3,603M – $3,643M Q4’25 Net Sales $960M – $1,000M Prev. $3,675M – $3,765M • Higher volume across all lines of business • ES: demand steadily improving in U.S. Communications Adj. EPS1 $2.75 – $2.85 $9.97 – $10.07 market and opt
Slide 17: Q&A
Q&A February 2025 © 2025 EnerSys. All Rights Reserved.
Slide 18: Appendix
Appendix February 2025 © 2025 EnerSys. All Rights Reserved.
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations February 2025 © 2025 EnerSys. All Rights Reserved.
Slide 20: Non-GAAP Reconciliation: Adjusted Operating Earnings
Non-GAAP Reconciliation Q 3 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 February 2025 © 2025 EnerSys. All Rights Reserved. 20
Slide 21: Non-GAAP Reconciliation: Q3 FY'25 Adjusted EBITDA
Non-GAAP Reconciliation Q3 FY’25 ADJUSTED EBITDA February 2025 © 2025 EnerSys. All Rights Reserved. 21
Slide 22: Non-GAAP Reconciliation: Q3 FY'25 Adjusted Diluted EPS
Non-GAAP Reconciliation Q3 FY’25 ADJUSTED DILUTED EPS February 2025 © 2025 EnerSys. All Rights Reserved. 22
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 $52.6 million adjustment to EBITDA in the last twelve months ending December 29, 2024 primarily related to $28.0 million of non-cash stock compensation, $19.8 million of restructuring and other exit charges, impairment of ind
Slide 25: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation FREE CASH FLOW February 2025 © 2025 EnerSys. All Rights Reserved. 25
Slide 26: Non-GAAP Reconciliation: Adjusted Gross Profit and Gross Margin
Non-GAAP Reconciliation ADJUSTED GROSS PROFIT AND GROSS MARGIN February 2025 © 2025 EnerSys. All Rights Reserved. 26
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 February 2025 © 2025 EnerSys. All Rights Reserved. Trademarks and logos are property of EnerSys and its affiliates unless otherwise noted. Subject to revisions without prior notice. E.&O.E. 28