EnerSys reported third quarter fiscal 2026 net sales of $919.1 million, up 1.4% from $906.2 million in the year-ago period and at the low end of guidance. Organic volume declined 4%, while pricing contributed a 3% gain and foreign currency translation added 2%. GAAP diluted EPS came in at $2.40, down from $2.88 a year ago, reflecting a $0.37 per share unfavorable impact from restructuring and other highlighted items. On a non-GAAP basis, adjusted diluted EPS was $2.77, beating the company’s guidance range of $2.71 to $2.81 but below the prior-year adjusted result of $3.12 per share.

Gross profit totaled $276.3 million, a 7.3% decline year-over-year, but adjusted operating earnings of $142.3 million represented only an 8.4% decrease versus the prior period, driven by favorable product mix and pricing discipline in Industrial Reserve and Electronics segments. Motive Power volumes remained soft, pressuring that division’s organic growth, while foreign currency tailwinds supported overall profitability. Adjusted operating margin expanded by 120 basis points sequentially, underscoring the impact of EnerGize cost-realignment initiatives and Centers of Excellence execution.

EnerSys generated $184.6 million in operating cash flow for the quarter, up from $81.1 million a year earlier, and reported free cash flow of $171.3 million, bolstered by expansion of its Receivables Purchasing Agreement. Capital expenditures were $13.3 million, down from $24.3 million, and the net leverage ratio improved to 1.2 times versus 1.5 times in the prior year. The company returned $93.7 million to shareholders, including $84.1 million in share repurchases and $9.6 million in dividends, reflecting continued commitment to capital allocation discipline.

For fiscal Q4, EnerSys expects net sales of $960 million to $1 billion, adjusted diluted EPS of $2.95 to $3.05 (including $37 million to $42 million of IRC 45X benefits), and adjusted EPS ex-benefit of $1.91 to $2.01. Full-year capital expenditures are forecast at approximately $80 million. Management highlighted ongoing price/mix strength, expense savings and further benefits from EnerGize initiatives as key drivers for adjusted operating earnings growth that will outpace revenue in a mixed end-market environment.