#United States #St. Louis #Energizer Holdings #Net Sales #Adjusted EPS

Energizer Holdings Reports Strong Q3 Results

Energizer Holdings, Inc. has unveiled its financial results for the third quarter of fiscal 2025, ending June 30, 2025, showcasing an impressive performance that exceeded market forecasts across key financial metrics. The company reported net sales of $725.3 million, indicating a 3.4% increase compared to the same period the previous year. The organic net sales growth was modest at 0.1%, impacted partially by strategic pricing adjustments and promotional investments.

The significant highlights of the quarter include the following:

Financial Highlights

• - Net Sales: Increased by 3.4% to $725.3 million compared to $701.4 million in the prior year’s quarter.
• - Adjusted Gross Margin: Improved by 330 basis points to 44.8%, fueled by effective pricing strategies and operational efficiencies, including production credits stemming from U.S. manufacturing investments.
• - Earnings Per Share (EPS): Reported EPS was $2.13, with an adjusted EPS of $1.13 representing a remarkable 43% increase year-over-year. Prior to accounting for production credits, adjusted EPS stood at $0.78.

Strategic Overview

Mark LaVigne, CEO of Energizer Holdings, highlighted the company’s Project Momentum, initiated three years ago to restore margins and enhance operational agility. This initiative has not only yielded positive financial metrics but has also reinforced the company's strategic position in an increasingly competitive marketplace. The availability of production credits, resulting from investments in U.S. manufacturing capabilities, significantly contributed to third-quarter growth and will play a crucial role moving forward.

Looking ahead, Energizer has raised its full-year net sales outlook, projecting growth between 1% and 3% and an increased adjusted EPS range of $3.55 to $3.65, compared to previous estimates. The adjustments reflect the beneficial impacts of pricing strategies and effective tariff mitigation.

Organic Growth and Future Expectations

Throughout the quarter, Energizer experienced a 1.7% growth in volumes, attributed mainly to expanded distribution channels, particularly within the Battery Lights segment. This strategic growth approach aligns with the company's focus on innovative product launches and enhanced customer engagement.

The company’s outlook for fiscal 2026 remains optimistic, driven by the confidence in ongoing earnings growth and a commitment to creating long-term value for shareholders. The successful execution of Project Momentum continues to underscore the potential for sustainable growth through refinements in operational structure and market responsiveness.

Operational Efficiency and Corporate Initiatives

The quarter also saw increases in Selling, General, and Administrative Expenses (SGA), recorded at 17% of net sales, primarily due to expanded digital transformation efforts and increased legal fees. While these expenditures rose, they were partially offset by the savings realized through the Project Momentum initiatives, showcasing the balance between investment for future growth and maintaining cost efficiency.

As Energizer Holdings moves into the final quarter of fiscal 2025, the company anticipates maintaining solid performance conditions. The focus remains on leveraging established and new product lines while navigating the evolving retail and consumer landscape. The expected impact of global economic factors, including currency fluctuations and market demands, will be closely monitored to ensure proactive adjustments are made.

Conclusion

In conclusion, Energizer Holdings is on track for a successful fiscal year 2025, boasting robust financial results and an enhanced growth outlook. The company’s strategic initiatives and commitment to operational excellence position it well for continued success in the coming years.