EnerSys reported net sales of $919.1 million for the third quarter of fiscal 2026, representing a 1.4% increase from $906.2 million in the year-ago period and landing at the low end of its guidance range. GAAP diluted earnings per share were $2.40, down from $2.88 a year earlier, while adjusted EPS excluding highlighted items was $2.77, compared with $3.12 in the prior year. The adjusted result surpassed the Company’s internal guidance range of $2.71 to $2.81 per share and reflects favorable price/mix and foreign currency translation offsetting a 4% decline in organic volume, particularly in Motive Power.

Gross profit for the quarter totaled $276.3 million, versus $298.2 million in the prior year, while GAAP operating earnings declined to $124.2 million from $142.7 million. On a non-GAAP basis, adjusted operating earnings were $142.3 million, down from $155.3 million, as the Company benefited from disciplined expense control and favorable product mix. Adjusted EBITDA reached $159.7 million, compared with $171.4 million a year ago, driven by margin expansion in Specialty Battery and Reserve Power segments despite ongoing market softness in Motive Power.

Operating cash flow in the third quarter jumped to $184.6 million from $81.1 million a year earlier, supported by an expanded Receivables Purchasing Agreement. Free cash flow rose to $171.3 million, up from $56.8 million, while capital expenditures declined to $13.3 million from $24.3 million. The Company ended the quarter with cash and equivalents of $450.1 million and net debt of $743.3 million, yielding a net leverage ratio of 1.2x versus 1.5x in the prior year. EnerSys returned $93.7 million to shareholders through $84.1 million in share repurchases and a $9.6 million dividend payment, with the board declaring a fourth-quarter dividend of $0.2625 per share.

For the fourth quarter of fiscal 2026, EnerSys projects net sales between $960 million and $1.00 billion, adjusted diluted EPS of $2.95 to $3.05, and adjusted EPS excluding IRC 45X benefits of $1.91 to $2.01. Full-year capital expenditures are expected to total approximately $80 million. Management reiterated confidence in the EnerGize strategic framework, which has delivered 50% year-over-year growth in adjusted diluted EPS ex-45X through price discipline, expense savings and Centers of Excellence enhancements, and positioned the Company to capitalize on secular demand trends for energy security and advanced storage solutions.