Energizer Holdings 2025 Q2 Earnings Misses Targets as Net Income Drops 12.7%

Energizer Holdings, Inc. reported net sales of $662.9 million for its fiscal 2025 Q2 on May 06th, 2025. Despite organic growth of 1.4%, the company fell short of expectations due to adverse currency impacts. This resulted in a slight decrease in net sales compared to 2024 Q2. Energizer's fiscal 2025 guidance reflects a cautious outlook, with expected organic net sales growth of 0-2%, adjusted EBITDA between $610 million and $630 million, and adjusted EPS within $3.30-$3.50.

Revenue

Energizer Holdings reported revenue of $662.90 million for Q2 2025, marking a slight decline of 0.1% compared to the previous year. The Batteries segment contributed $470.10 million, while Auto Care generated $174.90 million. Other segments produced $192.80 million, and the Lights segment added $17.90 million to total net sales.

Earnings/Net Income

Energizer Holdings saw a decline in EPS by 13.3%, from $0.45 in 2024 Q2 to $0.39 in 2025 Q2. Net income also decreased by 12.7%, falling from $32.40 million to $28.30 million, indicating weaker earnings performance.

Post-Earnings Price Action Review

The strategy of purchasing Energizer Holdings shares post-revenue increase and holding them for 30 days yielded a modest 15.10% return over the past five years, significantly lagging behind a benchmark return of 83.12%. The strategy's compound annual growth rate (CAGR) stood at 2.89%, with a maximum drawdown of -7.76%. Despite delivering a reasonable risk-adjusted return, evidenced by a Sharpe ratio of 0.36, the approach fell short of broader market performance. The stock's recent price action, marked by a 2.57% dip on the latest trading day and steeper declines of 11.92% over the week and 18.67% month-to-date, further underscores the challenges and volatility faced by the company in the current economic climate.

CEO Commentary

Mark LaVigne, Chief Executive Officer, emphasized Energizer Holdings' robust performance with $662.9 million in net sales, marking sustained organic revenue growth. He highlighted improved gross margins despite currency challenges, acknowledging a cautious consumer outlook for the year but expressing optimism about investments driving long-term growth.

Guidance

For fiscal 2025, Energizer Holdings projects organic net sales to remain flat or grow up to 2%, with adjusted EBITDA expected between $610 million and $630 million. Adjusted earnings per share are anticipated to fall within $3.30 to $3.50, reflecting cautious consumer behavior, though the company remains hopeful about strategic investments.

Additional News

Energizer Holdings completed the acquisition of Advanced Power Solutions NV on May 2, 2025. This acquisition expands Energizer's portfolio with APS's expertise in AA battery manufacturing and marketing. The company also declared a quarterly dividend of $0.30 per share, payable on June 11, 2025, illustrating a commitment to shareholder returns. Furthermore, Energizer successfully refinanced and extended its term loan and revolving credit facility, enhancing financial flexibility amidst tariff concerns.