1. Energizer's Q3 net sales increased by 3.4%, reaching $725.3 million. 2. Adjusted EPS rose by 43% year-over-year, reaching $1.13. 3. Production credits significantly improved gross margins to 55.1%. 4. Full year sales outlook upgraded to 1% - 3% growth. 5. Company confident in sustained earnings growth beyond FY 2025.
The positive quarterly earnings and revised guidance reflect strong company performance, similar to past surges post-earnings announcements where ENR’s stock rose significantly.
Energizer's solid earnings report and optimistic guidance will likely attract investor interest and may influence stock prices positively.
The strategic initiatives from Project Momentum are projected to yield benefits in the coming years, supporting long-term profitability.
Improved Outlook for Full Year Net Sales, Adjusted EBITDA and Adjusted Earnings Per Share. Expect to Generate 7% - 10% Adjusted Earnings Per Share Growth in Fiscal Year 2025. Strongly Positioned to Drive Continued Earnings Growth in Fiscal Year 2026.
ST. LOUIS, Aug. 4, 2025 /PRNewswire/ -- Energizer Holdings, Inc. (NYSE: ENR) today announced results for the third fiscal quarter ended June 30, 2025.
"Three years ago, we launched Project Momentum to restore margins, increase our operational agility, and invest in growth. Our performance this quarter illustrates the benefits of those efforts as we delivered organic top-line growth, strong gross margins and robust earnings. In addition, our business has been further strengthened by our qualification for production credits as a result of our investments and focus on US manufacturing capabilities," said Mark LaVigne, Chief Executive Officer. "We are increasing our outlook to reflect the higher level of earnings generated by pricing, tariff mitigation efforts and the inclusion of production credits. As we look ahead, we are confident in our ability to generate ongoing earnings growth, creating long-term value for our shareholders."
For the quarter, we had Net sales of $725.3 million compared to $701.4 million in the prior year period.
Organic Net sales increased 0.1% primarily due to the following items:
Gross margin percentage on a reported basis was 55.1% versus 39.5% in the prior year. During the quarter, the Company recorded an estimated $112.4 million of production credits related to battery production in our U.S. facilities. The amount related to FY25 production is an estimated $33.9 million, and an additional estimated $78.5 million was recorded for production retroactive to the start of the production credit period of January 1, 2023.
Excluding the estimated FY23 & FY24 production credits of $78.5 million recorded in the current quarter, restructuring costs in the current and prior year of $2.9 million and $13.4 million, respectively, network transition costs of $0.9 million in the current year, and acquisition and integration costs of $0.2 million in the prior year, Adjusted Gross margin was 44.8% compared to 41.5% in the prior year, an increase of 330 basis points.
SG&A, excluding restructuring, acquisition costs and litigation matters, was 17.0% of Net sales for the third quarter, or $123.6 million, compared to 16.9%, or $118.4 million in the prior year. The year-over-year dollar increase was primarily driven by increased SG&A from the APS NV business of $4.5 million, investment in digital transformation and growth initiatives, as well as increased legal fees. The increase was partially offset by Project Momentum savings of approximately $3 million in the quarter.
A&P expense increased $5.5 million for the third fiscal quarter to 6.0% of Net sales, compared to 5.4% in the prior year.
| Third Quarter | (In millions, except per share data) |
|---|---|
| Net earnings/(loss) | $153.5 |
| Diluted net earnings/(loss) per common share | $2.13 |
| Adjusted Net earnings | $81.5 |
| Adjusted Diluted net earnings per common share | $1.13 |
| Adjusted EBITDA | $171.4 |
Net earnings, Earnings per share, Adjusted Earnings per share and Adjusted EBITDA were positively impacted in the quarter by the production credits and savings from Project Momentum.
For fiscal 2025, we now expect Net sales growth in the range of 1% to 3%, inclusive of $40 to $50 million of Net Sales from the recently acquired APS NV business. We continue to expect Organic Net sales in the range of flat to +2%.
We increased our fiscal 2025 guidance for Adjusted Earnings Per Share to $3.55 to $3.65. Adjusted EBITDA is now expected in the range of $630 to $640 million, including an estimated benefit of $40 to $45 million from production credits, prior to reinvestment.
In conjunction with this announcement, the Company will host an investor conference call beginning at 10:00 a.m. Eastern Time today and will post prepared comments under the Investor/Events & Presentations section of the Company website around 7:00 a.m. Eastern Time. All interested parties may access a live webcast of this conference call at www.energizerholdings.com.