Energizer Holdings 2025 Q4 Earnings Earnings Decline as Net Income Falls 26.7%

Energizer Holdings reported fiscal 2025 Q4 earnings on Nov 18, 2025, with revenue rising 3.4% to $832.80 million but net income declining 26.7% to $34.90 million. The company missed Wall Street’s EPS estimates and issued a cautious 2026 outlook, citing tariff headwinds, soft consumer demand, and margin pressures.

Revenue

The total revenue of Energizer Holdings increased by 3.4% to $832.80 million in 2025 Q4, up from $805.70 million in 2024 Q4. This growth was driven by e-commerce expansion and international market momentum, though underlying organic demand softened.

Earnings/Net Income

Energizer Holdings's EPS declined 22.8% to $0.51 in 2025 Q4 from $0.66 in 2024 Q4. Meanwhile, the company's net income declined to $34.90 million in 2025 Q4, down 26.7% from $47.60 million reported in 2024 Q4. The EPS shortfall was attributed to higher product costs, tariff-related expenses, and integration costs from the APS acquisition, despite savings from Project Momentum.

Price Action

The stock price of Energizer Holdings has edged down 0.10% during the latest trading day, has plummeted 20.23% during the most recent full trading week, and has plummeted 21.90% month-to-date.

Post-Earnings Price Action Review

Energizer’s shares faced a sharp selloff following the Q4 earnings report, with the stock dropping over 20% in a single session. The decline was fueled by a significant earnings miss relative to analyst expectations and a cautious 2026 outlook, which highlighted transitional challenges including high-single-digit sales declines in Q1 and elevated tariff costs. Despite a 2.3% full-year revenue increase and $200 million in cost savings, the market reacted negatively to margin compression and soft consumer demand forecasts. The stock’s valuation metrics, including a forward P/E near 5.3, drew attention from value investors, though concerns about leverage and free cash flow constraints persisted.

CEO Commentary

Mark LaVigne, President and CEO, highlighted Energizer’s 2025 performance, emphasizing resilience amid tariffs, shifting trade policies, and softening consumer demand. He credited strategic actions like network realignment, Project Momentum (delivering $200M+ savings), and U.S. production investments for preserving margins and driving innovation in Batteries and Auto Care. LaVigne noted e-commerce growth (25% YoY) and international expansion as key growth drivers, while acknowledging transitional challenges in 2026 Q1. He expressed cautious optimism, stating that operational efficiencies, APS integration, and stabilized consumer demand would enable “double-digit adjusted EPS growth” in Q2-Q4 2026, underpinned by a stronger earnings foundation and disciplined execution.

Guidance

Energizer guided to low single-digit fiscal 2026 revenue growth, with Q1 reflecting “challenging sales comparisons” and transitional tariff costs, while Q2-Q4 would benefit from normalized margins and Project Momentum savings. Adjusted EPS growth is expected to accelerate to low double digits in Q2-Q4, supported by e-commerce (15% growth target), international markets, and APS integration. CFO John Drabik noted $15M–$20M incremental production credits in 2026 and a focus on debt reduction ($150M–$200M paydown), with free cash flow recovery post-2025’s working capital and CapEx investments. The Battery category is projected to decline 2%–4% in Q1 2026 but stabilize thereafter.

Additional News

Energizer Holdings announced a $177 million shareholder return program in Q4 2025 through dividends and share repurchases, reducing outstanding shares by 5%. The company also declared a $0.30 per-share quarterly dividend, maintaining a forward yield above 5%. Additionally, Energizer refinanced $500 million of existing debt, redeeming 6.50% notes due 2027 to restore revolver capacity. These moves underscored the company’s commitment to balancing shareholder returns with deleveraging efforts amid tight free cash flow.