EnerSys Q1 FY’27 slides: record results, $650M lithium plant

EnerSys reported strong first-quarter 2027 results, boasting record revenue and impressive earnings. The battery manufacturer reported $936 million in net sales, marking a 5% increase year-over-year, driven by modest volume growth, favorable pricing, and mix adjustments, and positive foreign exchange impacts. Adjusted earnings per share reached $3.66, surpassing analyst expectations by nearly 30%, with overall adjusted operating earnings growing 21% year-over-year to $101 million.

Free cash flow conversion also improved significantly, reaching $218 million compared to negative $32 million in the prior-year quarter. EnerSys unveiled plans for a $650 million lithium cell manufacturing facility in Greenville, South Carolina, aimed at meeting the defense sector's battery needs. The project, partially funded by a $150 million DOE grant and $200 million in local incentives, will create approximately 1 gigawatt-hour of initial production capacity.

Management highlighted the strategic shift towards smaller batteries to align with defense applications' requirements. While NIS and PPS segments thrived, IMS faced challenges from weak material handling markets. The company remains a leading provider of lithium batteries to the U.S. government, boasting nine different lithium battery chemistries.