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EnerSys reported Q1 FY2027 revenue of $935.6 million, above the $922.8 million consensus. Adjusted earnings per share of $3.66 also exceeded the $2.82 consensus. Revenue was within the company’s own guidance for the quarter.
Revenue rose from $893.0 million a year earlier. The filing attributed the increase to price and product mix, higher organic volume and currency translation. Network & Infrastructure Solutions grew on higher volumes and favorable mix across data centers, communications and industrial customers. Precision Power Solutions also grew, while Industrial Mobility Solutions declined as lower material handling volumes offset a transportation rebound.
Gross margin rose to 33.5% from 28.4%. EnerSys attributed the increase to a greater impact from 45X benefits, tariff refunds and favorable price and product mix. Diluted earnings per share rose to $3.09 from $1.46.
Free cash flow was $217.8 million, compared with −$27.9 million a year earlier. CFO Andrea Funk said cash flow benefited from a $115 million federal tax refund and higher earnings.
| Q1 FY2027 | Q1 FY2026 | Change | |
|---|---|---|---|
| Revenue | $935.6 million | $893.0 million | 4.77% |
| Diluted EPS | $3.09 | $1.46 | 111.6% |
| Gross margin | 33.5% | 28.4% | 5.1 percentage points |
| Operating margin | 16.2% | 9.68% | 6.5 percentage points |
| Free cash flow | $217.8 million | −$27.9 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $3.66 | $2.82 | Beat by 29.8% |
| Revenue | $935.6 million | $922.8 million | Beat by 1.38% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Revenue | Q1 FY2027 | $915.0 million–$955.0 million | $935.6 million | Within the guide |
What management said on the call
CEO Shawn O’Connell said first-quarter orders rose 7% year over year, with backlog up 2% sequentially. Data center orders rose over 80%, with deliveries extending into future periods; transportation orders nearly doubled, while material handling orders fell by high single digits.
Asked about data center orders, CFO Andrea Funk said many extend 12 to 36 months and provide visibility into continuing demand for lead-acid products. O’Connell said the DataSafe Noir lithium offering would serve existing customers, and Funk expects it to contribute revenue beginning in fiscal 2028.
On material handling, O’Connell pointed to forklift order data and customer conversations as reasons to expect demand to recover. Funk said the timing remained uncertain and the company had included a risk factor in guidance. She added that customers waiting for new chargers and second-generation lithium batteries might also be affecting demand.
Funk said the quarter included $31 million in one-time tariff refunds, of which approximately $16 million had been received in cash. She said EnerSys had begun excluding noncash stock compensation from adjusted earnings measures and had recast prior periods. Excluding tariff refunds and 45X benefits, she said gross margin was 25.2%, up 110 basis points from a year earlier.
O’Connell said the planned Greenville, South Carolina lithium facility would focus on defense applications. The revised Department of Energy grant provides approximately $150 million toward an estimated $650 million cost; EnerSys expects to fund its approximately $500 million net investment from operating cash flow. Funk said environmental requirements would affect when construction could start.
For the quarter ahead, Funk said the outlook reflects demand in data centers, communications and aerospace and defense, along with a transportation recovery. She expects stronger year-on-year revenue growth in the second half of fiscal 2027, supported in part by a material handling recovery.
Guidance
For Q2 FY2027, EnerSys expects revenue of $955.0 million to $995.0 million and adjusted diluted EPS of $3.15 to $3.25, including 45X benefits. Excluding those benefits, it expects adjusted diluted EPS of $1.95 to $2.05. Its earlier guidance was for Q1, not Q2: revenue of $915.0 million to $955.0 million and adjusted EPS of $2.80 to $2.90.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EPS, Non Gaap Excluding 45x | Q2 FY2027 | $1.95–$2.05 | Q1 FY2027: $1.61–$1.71 | Raised |
| EPS, non-GAAP | Q2 FY2027 | $3.15–$3.25 | Q1 FY2027: $2.80–$2.90 | Raised |
| Revenue | Q2 FY2027 | $955.0 million–$995.0 million | Q1 FY2027: $915.0 million–$955.0 million; reported $935.6 million | Raised |
| Dividend, Per Share | Q2 FY2027 | $0.29 | — | New |
| Capex | FY2027 | $70.0 million | — | New |
| Tax rate, Non Gaap Excluding 45x | FY2027 | 21.5%–23.5% | — | New |
| Revenue, Data Center Lithium | FY2028 | EnerSys expects its DataSafe Noir lithium offering to begin meaningfully contributing to revenue growth in FY2028. | — | — |
| Revenue, Industrial Mobility Solutions | FY2027 | EnerSys expects Industrial Mobility Solutions revenue to grow in FY2027 versus the prior year. | — | — |
| Revenue, Data Center | FY2027 | EnerSys expects data center revenue growth in the high single digits to low teens in FY2027. | — | — |
| EPS, Non Gaap Ex Irc 45x | Q2 FY2027 | $1.95–$2.05 | — | New |
| Revenue, Lithium Data Center | FY2027 | EnerSys does not expect a meaningful revenue lift from its lithium data center product in FY2027. | — | — |
| Bookings, Motive Power | FY2027 | EnerSys expects Motive Power orders to increase gradually through FY2027. | — | — |
| Operating income, Non Gaap Excluding 45x | FY2027 | EnerSys expects adjusted operating earnings growth excluding 45X benefits to outpace revenue growth in FY2027. | — | — |