EnerSys (FDN) AI Stock Analysis

Company Guidance

EnerSys guided Q2 FY‑2027 net sales of $955–$995 million and adjusted diluted EPS of $3.15–$3.25 (which assumes $42–$47 million of 45X benefits to cost of sales); excluding 45X they expect adjusted diluted EPS of $1.95–$2.05 (about +25% y/y at the midpoint), with the EPS midpoint including 45X up ~21% y/y. For the year they expect an as‑adjusted tax rate before 45X of 21.5%–23.5% and reiterated FY‑2027 CapEx of ~$70 million. On the lithium plant they disclosed an estimated $650 million facility cost with a ~$150 million DOE grant and ~ $200 million of state/county incentives, leaving EnerSys net investment of ~ $500 million (to be funded from operating cash flow), construction slated to begin H1 FY‑2028 with full production ~3 years later and an expected internal return in the mid‑20s. Management also said they expect stronger revenue growth in H2 FY‑2027 (driven by recovery in material handling and new product revenue), reaffirmed strong cash‑flow generation and capital returns (Q1 free cash flow $218M and 187% conversion, Q1 buybacks 219k shares for $50M with ~ $900M remaining authorization, Q2 dividend $0.2875/share), and noted one‑time Q1 items (tariff refunds ~$31M and a $115M federal tax refund) that bolstered near‑term cash but were not in prior guidance.