How did ENS's revenue and expenses trend in Q3 2025?

EnerSys (ENS) experienced a notable increase in net income in Q3 2025, driven by strong aerospace and defense demand and improvements in the U.S. Communications market, despite falling short of revenue expectations. 1. **Revenue Trend**: ENS's revenue for Q3 2025 was reported at $906 million, which missed the consensus estimate of $932.67 million. However, this figure represented a 5.2% increase year-over-year, indicating a positive trend in sales. 2. **Expense Trend**: The company's gross margin improved by 400 basis points to 32.9%, reflecting enhanced cost management and operational efficiency. This improvement was partly attributed to $75 million in tax credits. ENS's operating cash flow was robust, generating $81 million, supporting a net leverage ratio of 1.5x EBITDA. Free cash flow was recorded at $56.8 million, highlighting the company's strong financial performance and ability to generate cash. |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |ENS|ENS.N|Enersys|2024 Q4|-8.002775914597189|9.10721E8|169| |ENS|ENS.N|Enersys|2025 Q1|-6.125346561460935|8.52916E8|169| |ENS|ENS.N|Enersys|2025 Q2|-1.9271214261852785|8.83669E8|169| |ENS|ENS.N|Enersys|2025 Q3|5.177192681081031|9.06152E8|169| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |ENS|ENS.N|Enersys|2024 Q4|-7.6391205458680815|6.0912E7|169| |ENS|ENS.N|Enersys|2025 Q1|4.961300657215144|7.0111E7|169| |ENS|ENS.N|Enersys|2025 Q2|26.118750862346502|8.2266E7|169| |ENS|ENS.N|Enersys|2025 Q3|50.75500932272381|1.14812E8|169| In conclusion, ENS's revenue showed resilience with a slight miss in estimates but a significant year-over-year increase, while expenses were well-managed, as evidenced by improved gross margins and robust cash flow generation, resulting in enhanced net income.