What is the revenue and EPS growth rate for Enersys year over year?

What factors drove the changes in Enersys's revenue and profit?

What were the key takeaways from Enersys’s earnings call?

What does Enersys do and what are its main business segments?

What is Enersys's gross profit margin?

Did Enersys beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Enersys next quarter?

What were the key takeaways from Enersys's earnings call?

- **Revenue Growth**: Q2 net sales up 8% YoY to $951 million, driven by Energy Systems (14% YoY) and Specialty (16% YoY).
- **Profitability**: Adjusted EPS of $2.56 (up 21% YoY) and free cash flow of $197 million highlight strong cash generation.
- **Strategic Initiatives**: $80M cost reductions, Centers of Excellence, and AI-driven efficiency improvements boost margins.
- **Data Center Expansion**: 29% YoY growth in data center revenue, with new lithium products on the horizon.
- **Shareholder Returns**: $78M returned via buybacks and dividends, with $960M remaining in buyback authorization.

**【CEO Opening Remarks】**
- Q2 net sales grew 8% YoY to $951 million, driven by strong demand across Energy Systems, Specialty, and data centers.
- Adjusted operating earnings increased 13% YoY to $130 million, with margins improving to 13.6%.
- Strategic initiatives under the EnerGize framework include $80 million annual cost reductions, Centers of Excellence (CoEs) for lead-acid, power electronics, and lithium, and AI-driven efficiency improvements.
- Free cash flow reached $197 million, up 194% YoY, with $78 million returned to shareholders via buybacks and dividends.

**【CFO Financial Commentary】**
- GAAP net income was $420 million, with adjusted diluted EPS of $2.56, up 21% YoY. Excluding 45X benefits, EPS was $1.51, up 15% YoY.
- Energy Systems revenue rose 14% YoY to $435 million, driven by data center and communications growth. Specialty revenue increased 16% YoY to $157 million, with A&D demand and Bren-Tronics integration boosting margins.
- Operating cash flow of $218 million offset $21 million in CapEx, resulting in strong free cash flow conversion of 288%.
- Leverage ratio remains at 1.3x EBITDA, below the 2-3x target range, with $389 million in cash and $842 million in net debt.

**【Q&A Highlights】**
- **Data Center Growth**: Q2 revenue up 29% YoY, with TPPL products and lead-acid HX series driving demand. New lithium products expected to launch next year.
- **Gross Margin Outlook**: Sequential improvement in gross margin (29.1% vs. 28.4% Q1) due to price/mix and cost reductions. Long-term margin expansion expected with CoE efficiencies.
- **M&A Strategy**: $1 billion buyback authorization with $960 million remaining. Evaluating accretive bolt-on acquisitions like Bren-Tronics for growth and margin expansion.
- **Tariff Mitigation**: Fully offsetting $70 million annualized tariff impact through supply chain adjustments and pricing strategies.
- **Specialty Segment**: A&D demand strong, with thermal batteries used in hypersonic applications. Specialty margins nearing double digits.
- **Lithium Dynamics**: Motive Power lithium sales up 45% YoY, but near-term margin pressure from elevated costs and ramp-up inefficiencies.

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