EnerSys reported adjusted diluted EPS of $2.77 for the third quarter of fiscal 2026, representing a 12% decrease from $3.12 in the year-ago period but exceeding the guidance midpoint by $0.06. GAAP diluted EPS of $2.40 declined from $2.88 in the prior year quarter, reflecting a $0.37 per share net tax impact from highlighted items. Net earnings attributable to EnerSys stockholders were $90.4 million, down from $114.8 million a year earlier, driven by restructuring charges and foreign exchange fluctuations.

Net sales increased 1.4% year-over-year to $919.1 million, landing at the low end of the company’s guidance range of $920 million to $960 million. Pricing improvements contributed a 3% lift, while foreign currency translation added 2%, offsetting a 4% drop in organic volume. Motive Power volumes remained soft, whereas Specialty Batteries and Industrial Power solutions segments achieved mid-single-digit price/mix gains and modest volume growth in Asia and Europe.

Operating cash flow for the quarter reached $184.6 million, more than double the $81.1 million generated in the prior-year period, supported by an expanded receivables purchasing agreement. Free cash flow rose to $171.3 million from $56.8 million. Capital expenditures declined to $13.3 million from $24.3 million. As of quarter end, cash and equivalents stood at $450.1 million, net debt was $743.3 million, and the net leverage ratio improved to 1.2x from 1.5x, driven by deleveraging actions and stronger earnings.

For the fourth quarter, EnerSys forecasts net sales of $960 million to $1.0 billion and adjusted diluted EPS of $2.95 to $3.05, with 45X tax credits contributing $37 million to $42 million. Full-year capital expenditures are expected to total approximately $80 million. During Q3, the company repurchased $84.1 million of common shares and paid $9.6 million in dividends, raising the quarterly dividend to $0.2625 per share, payable March 27, 2026 to holders of record as of March 13, 2026.