Energizer shares surge over 10% as battery maker powers past earnings expectations

ST. LOUIS - On Monday, Energizer Holdings, Inc. (NYSE:ENR) reported fiscal third-quarter earnings that significantly exceeded analyst expectations, boosted by production tax credits and operational improvements.

The battery and auto care products manufacturer’s shares soared 10.61% in pre-market trading after the earnings release.

The company reported adjusted earnings per share of $1.13 for the quarter ended June 30, 2025, handily beating the analyst consensus of $0.62. Revenue reached $725.3 million, surpassing expectations of $713.73 million and representing a 3.4% increase from $701.4 million in the same quarter last year. Organic sales growth was modest at 0.1%.

Energizer’s impressive performance was largely driven by $112.4 million in Advanced Manufacturing Production Credits related to its U.S. battery production, with $33.9 million attributed to fiscal 2025 production and $78.5 million retroactive to January 2023. Adjusted gross margin expanded 330 basis points to 44.8%, reflecting both these credits and the company’s ongoing Project Momentum cost-saving initiatives.

"Three years ago, we launched Project Momentum to restore margins, increase our operational agility, and invest in growth. Our performance this quarter illustrates the benefits of those efforts as we delivered organic top-line growth, strong gross margins and robust earnings," said Mark LaVigne, Chief Executive Officer.

Battery & Lights segment sales increased 5.1% to $535.1 million, while Auto Care segment sales declined slightly by 1.1% to $190.2 million. Volume growth of 1.7% was partially offset by planned strategic pricing and promotional investments of 1.6%.

Looking ahead, Energizer raised its full-year outlook, now expecting net sales growth of 1% to 3% and adjusted EPS of $3.55 to $3.65, above the analyst consensus of $3.37. The company also projects adjusted EBITDA of $630 to $640 million for the fiscal year.

For the fourth quarter, Energizer expects reported net sales growth of 2% to 4% and adjusted EPS in the range of $1.05 to $1.15, including an estimated benefit of $5 to $10 million from production credits.

The company’s strong performance and improved outlook reflect its successful implementation of Project Momentum and qualification for production credits, positioning Energizer for continued earnings growth in fiscal years 2025 and 2026.

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