EnerSys boosts stock buyback program to $1.06 billion, raises dividend

READING, Pa. - EnerSys (NYSE:ENS), a $3.6 billion market cap energy solutions provider currently trading at an attractive P/E ratio of 10, announced Wednesday that its Board of Directors has approved a $1 billion increase to its stock repurchase authorization, bringing the total outstanding authorization to $1.06 billion, to be executed over the next five years. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, with management demonstrating confidence through aggressive share buybacks.

The stored energy solutions provider also announced a 9% increase in its quarterly cash dividend to $0.2625 per share, marking the third consecutive year of dividend growth, building on its impressive 13-year streak of consistent dividend payments. The dividend will be payable on September 26, 2025, to shareholders of record as of September 12, 2025. With a current dividend yield of 1.05% and strong financial health indicators, InvestingPro data shows the company maintains a healthy 2.7x current ratio and operates with moderate debt levels.

"Our earnings growth, strong cash flow, and solid balance sheet enable us to continue investing in long-term growth while returning more capital to shareholders," said Shawn O’Connell, EnerSys President and Chief Executive Officer, according to the company’s press release. This statement is supported by the company’s robust financial performance, with EBITDA reaching $589.5 million in the last twelve months. Discover more detailed insights and 8 additional ProTips about ENS’s financial health in the comprehensive InvestingPro Research Report.

The company stated that repurchases will be made from time to time in either the open market or through privately negotiated transactions. The timing, volume, and nature of share repurchases will be at management’s discretion, dependent on market conditions and applicable securities laws, and may be suspended or discontinued at any time.

EnerSys noted that all or part of the repurchases may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the company might otherwise be prevented from doing so due to insider trading laws or self-imposed blackout periods.

The repurchase program will remain in effect for five years unless otherwise modified or terminated by the Board.

EnerSys designs and manufactures energy systems solutions and batteries for industrial applications, serving customers worldwide through its Energy Systems, Motive Power, Specialty, and New Ventures business lines.

In other recent news, EnerSys reported its fourth-quarter 2025 earnings, posting an adjusted earnings per share of $2.97, which exceeded analyst expectations of $2.76. Despite this positive earnings result, the company decided to pause its full-year guidance due to uncertainties surrounding tariffs. This decision appears to have affected investor sentiment. In a strategic move, EnerSys announced plans to reduce its global workforce by approximately 575 employees, representing 11% of its non-production staff. The layoffs are part of a restructuring plan aimed at achieving approximately $80 million in annualized savings starting in fiscal year 2026. The workforce reduction will mainly target corporate and management positions under the company’s new leadership. These developments highlight EnerSys’s efforts to navigate economic challenges while focusing on cost-cutting measures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.