Energizer Q3 Earnings Jump 43% on Production Credits and Cost Cuts

Energizer Holdings, Inc. delivered robust third-quarter fiscal 2025 results, outperforming both guidance and expectations across key financial metrics. The company reported net sales of $725.3 million, a 3.4% increase year-over-year, driven by volume growth in the Battery & Lights segment and the recent acquisition of Advanced Power Solutions NV, which contributed $20.8 million in net sales [1]. Despite a slight 0.1% organic sales increase, the strong overall performance reflects the company’s ongoing strategic execution and operational improvements [1].

The company’s gross margin reached 55.1% on a reported basis, a sharp improvement from 39.5% in the same period in 2024. This significant jump was primarily attributed to $112.4 million in production credits tied to battery manufacturing at U.S. facilities, of which $33.9 million was recorded in fiscal 2025. The adjusted gross margin also rose by 330 basis points to 44.8%, supported by these production credits and cost-saving measures under the Project Momentum initiative [1].

Earnings per share (EPS) for the quarter were $2.13, with adjusted EPS at $1.13—representing a 43% year-over-year increase [1]. Prior to the impact of production credits, adjusted EPS was $0.78. While higher advertising and SG&A expenses partially offset some of these gains, the overall improvement in margins and cost control significantly boosted profitability [1].

Energizer also raised its full-year fiscal 2025 guidance, forecasting net sales growth of 1% to 3% and adjusted earnings per share in the range of $3.55 to $3.65 [1]. Adjusted EBITDA is now expected to fall between $630 million and $640 million. Management credited the strong performance to the continued execution of Project Momentum, which aims to restore margins, enhance operational agility, and invest in growth [1].

Looking ahead, the company expects 7% to 10% adjusted EPS growth in fiscal 2025 and remains confident in its ability to deliver earnings growth in fiscal 2026 [1]. Energizer also continued its commitment to returning value to shareholders, repurchasing 2.8 million shares during the quarter for $62.6 million [1].

The results underscore Energizer’s strategic focus on leveraging production incentives, optimizing operations, and strengthening its brand presence. With continued momentum across its business segments and a strong balance sheet, the company is well positioned to sustain growth and deliver long-term value to shareholders [1].

Source: [1] Energizer Holdings, Inc. Announces Fiscal 2025 Third Quarter Results (url1)