EnerSys Q4 2025: Unpacking Contradictions in Motive Power and Energy Systems Performance

Motive Power segment performance, Energy Systems segment recovery, Energy systems order growth, Motive Power performance and tariff impact, and Energy Systems growth and recovery are the key contradictions discussed in EnerSys' latest 2025Q4 earnings call.



EnerSys' Strong Financial Performance:
- EnerSys reported net sales of $975 million in Q4, up 7% year-over-year, marking its second highest revenue quarter.
- The growth was driven by a 4% increase in organic volume, a 1% positive price/mix across Motive Power and Energy Systems, and a 4% positive impact from the Bren-Tronics acquisition.

Energy Systems Business Recovery:
- Energy Systems' revenue increased by 8%, with adjusted operating earnings growing $17 million higher than the previous year.
- The business experienced a 22% increase in quarterly data center revenue, supported by continued improvement in US communications spending and early project work.

Motive Power Segment Growth:
- Motive Power's adjusted operating earnings rose 15% with sales of maintenance-free products up 16% year-over-year, reaching a record 29% of total revenue.
- Despite mixed signals on near-term demand, industry estimates for lift trucks indicate a potential recovery in calendar year '26, supported by strong customer enthusiasm for EnerSys' maintenance-free products.

Impact of Tariffs and Tactical Response:
- EnerSys established a cross-functional tariff task force to mitigate financial impacts, with direct tariff exposure reduced to $92 million through actions like domestic sourcing.
- The company expects to offset tariff impacts, focusing on operational efficiencies and leveraging strong balance sheet flexibility to maintain growth amid macroeconomic uncertainties.