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READING, Pa. - Energy storage solutions provider EnerSys (NYSE:ENS), currently valued at $3.54 billion, announced Tuesday it will reduce its global workforce by approximately 575 employees, representing 11% of its non-production staff. The cuts will primarily affect corporate and management positions as part of a strategic restructuring plan under new leadership. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, with a healthy financial profile rated as "GOOD" by InvestingPro’s comprehensive scoring system.
The company expects the layoffs to be substantially completed by the end of the second quarter of fiscal 2026. The restructuring, combined with other cost-cutting measures, is projected to generate approximately $80 million in annualized savings beginning in fiscal year 2026. With current annual revenue of $3.62 billion and a conservative P/E ratio of 9.85, these cost savings could significantly impact the bottom line. InvestingPro subscribers can access 8 additional key insights about EnerSys’s financial health and growth potential through the platform’s comprehensive Pro Research Report.
"Today’s actions, while difficult, are necessary for EnerSys to remain competitive in our markets," said Shawn O’Connell, President and Chief Executive Officer of EnerSys, in a press release statement.
The estimated savings include approximately $70 million from reducing over 10% of the company’s fiscal 2025 operating expenses and an additional $10 million from lower cost of goods sold. EnerSys anticipates realizing $30 million to $35 million in savings during fiscal year 2026, with material benefits beginning in the third fiscal quarter.
The company expects to incur one-time restructuring charges between $15 million and $20 million, primarily for severance and related costs, with the majority occurring in the second and third quarters of fiscal 2026.
EnerSys plans to discuss further details of its broader strategic plan during its fiscal first quarter 2026 earnings report scheduled for August 6, 2025, followed by an earnings conference call on August 7.
The Pennsylvania-based company designs and manufactures energy storage solutions for industrial applications across four business lines: Energy Systems, Motive Power, Specialty, and New Ventures. The company maintains strong liquidity with a current ratio of 2.7 and has consistently paid dividends for 13 consecutive years, demonstrating financial stability despite market challenges.
In other recent news, EnerSys reported its fourth-quarter 2025 earnings, which showed an adjusted earnings per share (EPS) of $2.97, exceeding the forecast of $2.76. Despite this positive earnings report, the company decided to pause its full-year guidance due to uncertainties related to tariffs. This decision appears to have influenced investor sentiment significantly. The company’s stock experienced a sharp decline following the announcement. While the earnings beat was a positive development, the lack of guidance has left investors cautious. Analysts have been closely monitoring the situation, noting the impact of external factors on EnerSys’s financial outlook. These developments have been a focal point for those keeping an eye on EnerSys’s performance in the market.
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