Energizer Holdings 2025 Q4 Earnings EPS Plummets 22.8% Amid Tariff-Driven Margin Pressure

Energizer Holdings reported Q4 2025 earnings that missed expectations, with adjusted EPS of $1.05 below the $1.12 FactSet consensus. The company provided a cautious 2026 guidance, projecting flat-to-slight sales growth and low double-digit EPS growth, down from prior estimates.

Revenue

Energizer’s total revenue rose 3.4% year-over-year to $832.8 million, driven by e-commerce growth and international expansion. However, organic sales declined 2.2% due to softer North American demand and integration costs from the APS acquisition.

Earnings/Net Income

The company’s adjusted EPS fell 22.8% to $1.05, while net income dropped 26.7% to $34.9 million. Despite $200 million in Project Momentum savings, higher tariffs, production inefficiencies, and APS integration costs eroded profitability. The EPS decline underscores significant margin pressure amid a challenging macro environment.

Post-Earnings Price Action Review

Energizer’s stock plunged over 20% in early trading following the earnings release, marking its worst single-day selloff in history. The decline reflected investor disappointment over the EPS miss and weak 2026 guidance, particularly the anticipated transitional Q1. While CEO Mark LaVigne emphasized confidence in post-Q1 growth from network realignment and APS integration, the immediate market reaction highlighted skepticism about near-term margin recovery.

CEO Commentary

Mark LaVigne highlighted Energizer’s resilience in a volatile 2025 environment, crediting agile execution and $200 million in savings from Project Momentum. He stressed e-commerce growth (+35% Q4), international expansion, and Auto Care innovation as key drivers. However, LaVigne acknowledged challenges, including tariffs and softening consumer demand, and projected “double-digit adjusted EPS growth” for Q2–Q4 2026.

Guidance

Energizer expects low single-digit top-line growth and low double-digit adjusted EPS growth for Q2–Q4 2026, with Q1 reflecting transitional tariff costs and softer demand. CFO John Drabik outlined $150–200 million in debt reduction and $15–20 million in annual savings from U.S. manufacturing investments.

Additional News

Recent non-earnings updates include Energizer’s $177 million shareholder return program via dividends and buybacks, reducing shares by 5%. The company also announced a $500 million debt refinancing to optimize its capital structure. Additionally, Energizer’s SWOT analysis highlighted brand strength and global distribution as key advantages, while raw material dependency and Walmart’s 12.8% sales concentration were flagged as risks.

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