stockrowWhat it does
EnerSys designs, manufactures and distributes batteries, power equipment and energy storage systems for industrial customers. Founded in 2000 and headquartered in Reading, the company is led by President and Chief Executive Officer Shawn M. O’Connell.
Its Energy Systems business combines equipment that converts and distributes electricity with batteries and protective enclosures. Customers use these systems to keep telecommunications networks, data centers, utilities and other operations running when power is interrupted. The company also supplies outdoor cabinets that protect electronic equipment and batteries.
Motive Power makes batteries and chargers for electric forklifts, automated guided vehicles and other industrial vehicles. Its products are used in warehouses and factories as well as in applications such as mining, rail and airport ground support. Specialty supplies batteries for transportation, aerospace, defense and medical applications, including portable power for soldiers and equipment used in aircraft and spacecraft.
New Ventures sells energy storage and management systems for commercial buildings, utility backup and fast charging for electric vehicles. These systems can help customers manage demand charges, which are electricity charges tied to periods of high power use.
EnerSys also installs, maintains and supports its equipment. Its worldwide sales and service network includes company-owned facilities, distributors and independent representatives. The company had 9,682 employees at March 31, 2026.
How it makes money
Fiscal 2026 sales were $3.8 billion; first-quarter fiscal 2027 net sales were $936 million.
EnerSys earns revenue by selling batteries, chargers, power systems and related equipment, as well as services. Product revenue was $3.4 billion in fiscal 2026, while service revenue was $370.9 million. Service work includes preventative maintenance and customer support. It also includes specialized electrical construction and implementation work, rather than only aftermarket maintenance.
For fiscal 2026, the company organized its business into Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems sells backup power and related equipment for networks, data centers and industrial users. Motive Power sells batteries and chargers for industrial vehicles. Specialty serves transportation, defense, aerospace and medical applications, while New Ventures offers storage and energy management systems.
In the first quarter of fiscal 2027, EnerSys reported through Network & Infrastructure Solutions, Industrial Mobility Solutions and Precision Power Solutions. Network & Infrastructure Solutions includes communications, data centers and services; Industrial Mobility Solutions serves material handling and transportation; and Precision Power Solutions includes aerospace and defense products.
Pricing responds in part to commodity costs. Approximately 25% of revenue is subject to agreements that adjust prices to a market-based lead index. Customer price changes generally lag movements in lead prices and other costs by approximately six to nine months. The company’s results also depend on manufacturing utilization and its ability to control production, distribution and operating costs.
| Product or service | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Product | $3.4 billion | 90.1% | 3.80% |
| Service | $370.9 million | 9.89% | 2.81% |
Customers and how it sells
EnerSys serves over 10,000 customers in over 100 countries, directly and through distributors. No single customer accounts for more than 10% of revenue. Its customers include both global and regional businesses, as well as government entities.
Energy Systems customers operate telecommunications and broadband networks, data centers, electric utilities and other industrial facilities. Motive Power sells to equipment dealers, forklift and heavy-truck manufacturers, and users such as warehouse operators, retailers, airports, mines and railroads. Specialty products reach vehicle fleets, manufacturers, distribution partners and governments, including those of the United States, Germany and the United Kingdom.
New Ventures sells storage and management systems to owners and managers of commercial real estate and retail operations. It uses a direct sales channel for those systems. Elsewhere, EnerSys sells and services products through company-owned facilities, independent manufacturers’ representatives, distributors and its internal sales force.
The company manufactures and assembles products in the Americas, EMEA and Asia. It is expanding capabilities at its Arras facility in France to support Bren-Tronics’ work with the French government and Ministry of Defense.
Suppliers and costs
EnerSys manufactures and assembles its products at facilities in the Americas, EMEA and Asia. Its primary raw materials include lead, plastics, steel and copper. The company buys lead from multiple suppliers worldwide; lead trades on commodity markets and its price changes daily. EnerSys periodically hedges part of its projected lead needs to reduce cost volatility.
Lead is the company’s most significant commodity exposure. In fiscal 2026, lead prices ranged from approximately $0.85 per pound to $0.95 per pound. The company also experienced increases in costs for materials including copper and antimony from the beginning of fiscal 2026. It seeks to recover changing costs through customer pricing, although those adjustments generally arrive after the underlying cost moves.
Results are affected by how efficiently EnerSys uses factory capacity and manages raw materials, manufacturing, distribution and operating expenses. The company closed its Monterrey, Mexico plant and transferred production to Richmond, Kentucky. It also announced facility rationalizations in Bellingham and Brazil.
For its data center and battery energy storage systems, EnerSys plans to continue buying lithium cells and incorporating them into its end systems. Its planned Greenville facility is focused instead on cells for defense applications.
- Revenue$3.8B
- Cost of revenue−$2.7B
- Selling, general and administrative−$621.0M
- Other operating costs−$50.2M
- Operating income$426.5M
Competitive position
EnerSys competes in industrial energy storage against companies ranging from early-stage businesses to large domestic and international manufacturers. Competition centers on reputation, product quality, service reliability, delivery lead times and price. Some rivals use different battery technologies or chemistries.
In Energy Systems, named competitors include East Penn Manufacturing, Exide Technologies (Stryten), Vertiv and SAFT. In traditional lead-acid Motive Power batteries, rivals include East Penn, Stryten and Hoppecke. EnerSys also faces lithium-ion cell packagers and integrators, including forklift manufacturers operating directly or with partners.
In Specialty, the company names Clarios and East Penn among competitors in absorbed glass mat batteries, and EaglePicher and SAFT in specialized aerospace and defense markets. New Ventures competes with Jule, Tritium and ABB in energy storage systems and fast charging.
EnerSys has patents and licenses but does not consider any single patent material to its business. It believes growth depends primarily on product quality and customer relationships rather than the extent of patent protection. It also believes producing its thin plate pure lead technology for its markets would require significant capital investment.
Our reading: Manufacturing know-how and the investment needed for thin plate pure lead production offer some protection, but alternative chemistries and established rivals constrain it. Our reading: The sales and service network can support customer relationships, although the evidence does not establish how costly it is for customers to switch.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| East Penn Manufacturing | Energy Systems, Motive Power and Specialty batteries | High |
| Exide Technologies (Stryten) | Energy Systems, Motive Power and Specialty batteries | High |
| Hoppecke | Energy Systems and Motive Power | Medium |
| SAFT | Energy Systems and aerospace and defense batteries | Medium |
| Vertiv | Energy Systems | Medium |
| Clarios | Specialty absorbed glass mat batteries | Medium |
| EaglePicher | Specialized aerospace and defense batteries | Medium |
| Jule | Energy storage systems and fast charging | Medium |
Growth opportunities
EnerSys is pursuing warehouse battery energy storage, lithium batteries for data centers, and aerospace and defense investments as growth initiatives. Its Fortix warehouse storage system received UL and NFPA 855 approval, a step in the permitting process for commercial deployment. EnerSys plans to combine it with forklift batteries and chargers to help manage warehouse energy use.
The company launched its DataSafe Noir lithium data center offering in June. EnerSys expects it to begin contributing meaningfully to revenue growth in the next fiscal year, alongside its existing lead-based products. First-quarter fiscal 2027 data center orders were up over 80% versus the prior year; many orders extend over 12 to 36 months.
For defense, EnerSys plans a lithium cell manufacturing facility in Greenville, South Carolina, focused on customers seeking U.S.-based supply. The revised Department of Energy grant provides approximately $150 million toward an estimated $650 million facility cost. EnerSys expects its net investment of approximately $500 million to be funded through operating cash flow. Construction is planned to begin in the first half of fiscal 2028, with full production expected approximately 3 years after construction begins. Permitting and other requirements remain to be completed.
The company expects annual aerospace and defense market growth in the range of 9% to 11%. It also expects material handling demand to improve in the second half of fiscal 2027, although it recognizes that the timing of recovery is outside its control.
- $3.4BFY2022
- $3.7BFY2023
- $3.6BFY2024
- $3.6BFY2025
- $3.8BFY2026
Structural risks
- Competition and pricing: EnerSys operates in a competitive industry and faces pricing pressure. Competitors include manufacturers using different technologies and battery chemistries, as well as lithium cell packagers and integrators.
- Materials and supply: Raw-material costs can rise, and electronic circuit supplies can be disrupted by quality issues or insufficient materials. Customer price changes generally lag lead and other cost movements, so higher costs may arrive before price adjustments.
- Customer demand: The market demand for forklifts and heavy trucks has been affected by tariff-policy uncertainty, with some customers pausing larger projects and spending. EnerSys says the timing of a material handling recovery is outside its control.
- Debt and financing: As of March 31, 2026, EnerSys had $1,120 million of total consolidated debt, including finance leases. Debt service and restrictive covenants can limit funds and financial flexibility; part of its borrowing bears floating interest rates.
- Environmental and execution obligations: Manufacturing involves hazardous materials, especially lead and acid. Compliance can require spending or limit facility expansion or production. The planned lithium facility must also complete environmental and permitting requirements before construction proceeds.
- Acquisitions: The company’s growth strategy depends in part on acquisitions. Integration difficulties, unanticipated expenses or failure to realize expected benefits can affect the results of a transaction.
Bottom line
Our reading
EnerSys combines industrial battery manufacturing with power systems and services sold across several customer markets and geographies (item1). Our reading: Its opportunity rests on extending those relationships into warehouse storage, data center lithium and defense, while continuing to serve its established battery markets (item1; call_prepared). Its exposure includes commodity costs that can move ahead of customer prices, competitive alternatives and the execution of a capital-intensive plant (item7; item1; call_prepared).