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Key Takeaways On Aug 12, 2026, EnerSys beat on earnings for the 19th quarter in a row. EnerSys guided above the Zacks Consensus for Fiscal Q2 2027 on strong data center demand.EnerSys is cheap. It trades with a forward P/E of just 14.2. EnerSys (ENS - Free Report) is seeing strong energy solutions demand thanks to data center and other mission critical needs. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 27% in fiscal 2027.

EnerSys is headquartered in Reading, PA and operates in stored energy solutions helping industrial, infrastructure and defense customers address critical power and operational needs.

It supports customers across key mission critical areas including communications networks, data centers, energy infrastructure, material handling, transportation, and aerospace and defense.

EnerSys serves customers in more than 100 countries. It has a market cap of $6.9 billion.

EnerSys Beats on Earnings Again in the Fiscal 2027 First QuarterOn Aug 12, 2026, EnerSys reported its first quarter fiscal 2027 results and beat the Zacks Consensus by $0.84. Earnings were $3.66 compared to the Zacks Consensus of $2.82.

EnerSys is an earnings all-star. It has only missed on the Zacks Consensus one time in the last 5 years and that was all the way back in 2021. It has beat on earnings 19 quarters in a row.

Image Source: Zacks Investment Research

That’s an impressive earnings surprise track record.

Net sales were up 5% to $936 million. It saw a big jump in gross margin, up 510 basis points, to 33.5%.

The company was a beneficiary of the tariff refunds, realizing $30.9 million in the quarter. If you strip out the one-time refund, earnings were still up 42% year-over-year.

“Momentum across data centers, communications, and aerospace & defense is generating strong sales growth and margin expansion, offsetting the delayed recovery of material handling demand, and enabling another record first quarter result,” said Shawn O’Connell, President and CEO.

EnerSys Gives Bullish Fiscal Second Quarter 2027 GuidanceEnerSys is bullish about the outlook in the fiscal second quarter.

“Our second quarter outlook reflects continued strength across Data Centers, Communications, and Aerospace and Defense, as well as early recovery in Transportation,” said Andrea Funk, CFO.

The company also expects earnings growth to be from margin expansion in the first half of the fiscal year but with a shift to higher top line growth towards the end of fiscal 2027.

The company guided fiscal second quarter 2027 earnings above the Zacks Consensus in the range of $3.15 to $3.25. The Zacks Consensus had been looking for $3.01.

Analysts Raise EnerSys Estimates for the Full YearGiven the big earnings beat and guide for Q2 that was higher than the consensus, it’s not a surprise that analysts have raised their fiscal 2027 full year earnings estimates.

Two estimates were raised in the last week, pushing the Zacks Consensus up to $13.41 from $12.37 before the earnings report.

This is earnings growth of 27% as the company made only $10.56 in fiscal 2026.

One estimate was also revised higher for fiscal 2028 in the last week as well, pushing up the Zacks Consensus to $15.10. That’s another 12.6% earnings growth.

What it looks like now on the five-year price and consensus chart.

Image Source: Zacks Investment Research

The Stock Takes a Time Out: A Buying Opportunity?Shares of EnerSys have soared over the last year, gaining 93% during that period, as the AI infrastructure plays were hot. But in the last 3 months, the AI infrastructure trade has cooled off.

EnerSys shares are down 18.9% in this period.

Image Source: Zacks Investment Research

But they are getting cheaper on a fundamental basis. EnerSys now trades with a forward price-to-earnings (P/E) ratio of 14.2. A P/E ratio under 15 usually indicates a company is undervalued.

EnerSys also has a PEG ratio of 0.9. A PEG is the P/E ratio divided by growth. A PEG ratio under 1.0 usually means a company has both value and growth. This is a rare combination.

EnerSys is also shareholder friendly. On Aug 12, 2026, the Board declared a 10% increase to the company’s quarterly dividend to $0.2875 per share. That’s an annual dividend of $1.05 which is yielding 0.6%.

It’s payable on Oct 2, 2026, to holders of record as of Sep 18, 2026.

The company also has a share buyback program and repurchased $50 million in shares in the fiscal first quarter of 2027.

For investors looking for a way to play energy solutions during the AI Revolution, but want to get it cheap, EnerSys should be on your short list.

3 Battery Stocks to Buy and Hold for the Rest of the DecadeEnerSys NYSE: ENS reported record first-quarter fiscal 2027 results, with sales rising 5% from a year earlier to $936 million as favorable price mix, higher volumes and foreign-currency translation supported growth. The company said its Network & Infrastructure Solutions and Precision Power Solutions businesses performed strongly, while Industrial Mobility Solutions continued to face weaker material-handling demand despite an early recovery in transportation.

President and CEO Shawn O'Connell said the quarter reflected strength in data centers, communications and defense markets, along with operating-expense discipline and stock repurchases supported by cash generation. First-quarter orders rose 7% year over year, while book-to-bill was 1.06 times. Backlog was relatively flat from the prior year and increased 2% sequentially.

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Profitability Boosted by Tariff Refunds and Tax Credits
Chief Financial Officer Andi Funk said the quarter included a $31 million, or $0.63-per-share, one-time benefit from refunds of previously paid IEEPA tariffs. The refunds were not included in the company’s guidance or its operational segment results.

Gross profit increased 24% year over year to $313 million, and gross margin expanded 510 basis points to 33.5%. Excluding the tariff refunds, gross profit rose 12% and gross margin improved 180 basis points. The company also received $9 million in expanded 45X manufacturing tax-credit benefits, largely related to moving production from its Monterrey, Mexico, plant to its Richmond, Kentucky, facility.

Adjusted operating earnings rose 47% from the prior-year period, while adjusted EBITDA increased 50% and adjusted diluted earnings per share climbed 65%. Excluding tariff refunds, adjusted operating earnings increased 22% with 45X benefits and 21% without them, according to the company.

EnerSys also changed its adjusted-metric presentation beginning this quarter to exclude non-cash stock-based compensation expense from adjusted operating earnings, adjusted EBITDA and adjusted diluted EPS. Prior-year figures were recast for comparability.

Segment Results Highlight Data Centers and Defense

Network & Infrastructure Solutions: Revenue increased 9% to $428 million, while adjusted operating earnings rose 50% to $45 million. Adjusted operating margin improved 280 basis points to 10.5%. The company cited demand for power electronics, data-center products and service offerings.
Industrial Mobility Solutions: Revenue declined 3% to $407 million, and adjusted operating earnings fell 11% to $38 million. The segment’s 9.3% adjusted operating margin was down 70 basis points, as lower material-handling volumes offset price mix and cost improvements.
Precision Power Solutions: Revenue grew 24% to $101 million, with adjusted operating earnings increasing 48% to $18 million. Adjusted operating margin rose 280 basis points to 18.2%, driven by aerospace and defense demand, particularly for counter-drone and missile-defense applications.

O'Connell said data-center revenue grew in the low teens during the quarter, while data-center orders increased more than 80% from a year earlier. Funk noted that such orders can extend 12 to 36 months, providing visibility into demand for the company’s lead-based offerings.

The company expects its recently launched DataSafe Noir lithium offering for data centers to begin contributing meaningfully to revenue in fiscal 2028. O'Connell said the product has generated customer interest due to its energy density, cost competitiveness and the ability to pair it with EnerSys’ service network.

In Industrial Mobility, management said transportation orders nearly doubled year over year in the first quarter, while material-handling orders declined by a high-single-digit percentage. EnerSys expects material-handling demand to improve later in fiscal 2027 and said it plans to begin recognizing revenue from its next-generation lithium offering in the second half.

DOE-Supported Lithium Plant Planned in South Carolina
EnerSys finalized a U.S. Department of Energy grant for a planned lithium-cell manufacturing facility in Greenville, South Carolina. The facility will focus on defense applications and serve as a Lithium and Advanced Technologies Center of Excellence.

The plant is expected to have initial annual production capacity of approximately 1 gigawatt-hour and will manufacture high-energy-density cells for manned platforms, soldier power, space and autonomous systems. O'Connell said the facility is designed for specialized defense applications requiring smaller-format cells, specialized equipment and security protocols rather than broad commercial lithium production.

The revised DOE grant will provide approximately $150 million toward the project’s estimated $650 million cost. EnerSys expects its approximately $500 million net investment to be funded entirely through operating cash flow. The company also cited an approximately $200 million state and local incentive package from South Carolina and Greenville County.

Construction is planned to begin in the first half of fiscal 2028, with full production expected about three years after construction begins. Management expects the investment to generate an internal return in the mid-20% range.

Cash Flow, Capital Returns and Outlook
Operating cash flow was $230 million and capital expenditures totaled $12 million, producing $218 million in free cash flow compared with negative $32 million a year earlier. The result was aided by a $115 million U.S. federal tax refund and tariff-refund receipts. As of July 5, EnerSys held $531 million in cash and cash equivalents, while net debt totaled $522 million.

During the quarter, the company repurchased 219,000 shares for $50 million at an average price of about $229 per share. It had nearly $900 million remaining under its repurchase authorization. The board also increased the quarterly dividend 10% to $0.2875 per share for the second quarter of fiscal 2027.

For the fiscal second quarter, EnerSys forecast net sales of $955 million to $995 million and adjusted diluted EPS of $3.15 to $3.25, including $42 million to $47 million of 45X benefits to cost of sales. Excluding 45X benefits, it expects adjusted diluted EPS of $1.95 to $2.05, representing growth of about 25% at the midpoint from the prior-year period.

About Enersys (NYSE:ENS)Enersys, headquartered in Reading, Pennsylvania, is a global leader in stored energy solutions, specializing in manufacturing and distributing industrial batteries, battery chargers, power equipment, and related accessories. The company serves a diverse range of end markets, including telecommunications, data centers, medical, aerospace, defense, electric vehicle motive power, and utility outcomes. Its products are engineered to deliver critical reserve power and motive power applications across key infrastructure and industrial sectors.

The company's product portfolio encompasses lead-acid batteries, lithium-ion energy storage systems, chargers, inverters, power management software, and a broad array of battery accessories.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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READING, Pa.--(BUSINESS WIRE)--EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial, infrastructure, and defense applications announced today that its Board of Directors has approved an increase to its quarterly cash dividend of 10% to $0.2875 per share of common stock payable on October 2, 2026, to holders of record as of September 18, 2026.

“Our decision to increase the dividend reflects our confidence in EnerSys’ earnings growth, strong cash flow generation, and long-term value creation framework,” said Shawn O’Connell, EnerSys President and Chief Executive Officer. “We remain committed to a disciplined capital allocation strategy that balances organic and inorganic investment in the business with consistent returns to shareholders, including a competitive dividend that grows with earnings, excluding 45X benefits, and share repurchases under our authorization, which has approximately $900 million remaining as of the end of the first quarter.”

About EnerSys

EnerSys is a global leader in stored energy solutions helping industrial, infrastructure and defense customers address critical power and operational needs with batteries, chargers and other power equipment. The company delivers integrated solutions that combine energy storage technologies, power electronics, software-enabled intelligence, technical expertise and comprehensive global customer support. EnerSys supports customers across communications networks, data centers, energy infrastructure, material handling, transportation, aerospace and defense — including applications where power continuity is essential. Serving customers in more than 100 countries, EnerSys helps organizations manage energy more reliably, efficiently and intelligently in complex operating environments where uptime, safety and resilience matter. For more information, visit www.enersys.com.

Caution Concerning Forward-Looking Statements

This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act, which may include, but are not limited to, statements regarding EnerSys’ earnings estimates, intention to return capital to stockholders, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, including statements identified by words such as “believe,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “will,” and similar expressions. All statements addressing operating performance, events, or developments that EnerSys expects or anticipates will occur in the future, including statements relating to sales growth, continuing to pay cash dividends at the current rate, earnings or earnings per share growth, its intention to pay quarterly cash dividends and return capital to stockholders, execution of its stock repurchase program, and market share, as well as statements expressing optimism or pessimism about future operating results or benefits from either its cash dividend or its stock repurchase programs, are forward-looking statements within the meaning of the Reform Act. The forward-looking statements are based on management’s current views and assumptions regarding future events and operating performance, and are inherently subject to significant business, economic, and competitive uncertainties and contingencies and changes in circumstances, many of which are beyond EnerSys’ control. The statements in this press release are made as of the date of this press release, even if subsequently made available by EnerSys on its website or otherwise. EnerSys does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Although EnerSys does not make forward-looking statements unless it believes it has a reasonable basis for doing so, EnerSys cannot guarantee their accuracy. For a list of other factors which could affect EnerSys’ results, including earnings estimates, see EnerSys’ filings with the Securities and Exchange Commission, including “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2026. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. No undue reliance should be placed on any forward-looking statements.