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Energizer Holdings, Inc. Reports First Quarter Results for Fiscal 2026

Energizer Holdings, Inc. (NYSE: ENR) has recently published its financial results for the first quarter of fiscal 2026, a period that ended on December 31, 2025. The company achieved net sales of $778.9 million, a 6.5% increase from $731.7 million in the same period last year, fueled by positive contributions from their acquisitions and improved operational efficiency.

Key Financial Highlights:

• - Net Sales: Increased to $778.9 million, showing growth propelled by acquisitions, particularly the recently integrated Advanced Power Solutions (APS), which added $64.6 million to sales.
• - Operating Cash Flows: Strong cash generation was recorded with operating cash flows reaching $149.5 million, alongside free cash flow of $124.2 million, representing 15.9% of net sales.
• - Debt Reduction: The company successfully reduced its debt by over $100 million during the quarter.
• - Loss Per Share: A reported loss per share stood at $0.05, while adjusted earnings per share held at a more favorable $0.31.

Mark LaVigne, the President and CEO of Energizer, emphasized that the company's priorities for fiscal 2026 are centered around restoring growth, enhancing profit margins affected by tariffs, and returning to their long-term cash flow profile. He states, "We executed our strategic plans with discipline, making meaningful advances in commercial initiatives such as the integration of APS and the optimization of our manufacturing networks."

Operational Performance:

Despite the growth in sales, organic sales dropped by 4.3%, largely due to a decline in volumes, attributed to lower consumer demand in the U.S. and previous higher storm activities. The decrease was slightly mitigated by gains in e-commerce and distribution improvements in the Batteries and Lights segments. Furthermore, price adjustments introduced to counteract tariffs contributed modestly to revenue.

• - Gross Margin: Reported gross margin declined to 32.9% from 36.8% year-over-year, reflecting increased production costs and operational inefficiencies. Excluding restructuring costs, the adjusted gross margin was 34.9%.
• - Selling, General and Administrative Expenses (SGA): These costs rose to 19.2% of net sales from 17.9% a year earlier, driven by expenses related to the APS acquisition and increased investment in digital transformation initiatives.

Future Outlook:

Looking ahead, Energizer remains optimistic, reaffirming its previous guidance for fiscal 2026. The company expects organic net sales to remain steady, with adjustments for inflation and currency fluctuations expected to be offset by implemented pricing strategies.

The company forecasts adjusted earnings per share for the fiscal year to be in the range of $3.30 to $3.60, with adjusted EBITDA anticipated between $580 million and $610 million. However, for the upcoming second quarter, a decline in organic net sales of 4% to 5% is projected alongside adjusted earnings per share of $0.40 to $0.50.

Company Commitment:

Energizer’s commitment to shareholders remains strong, evidenced by a dividend payout of approximately $23 million, or $0.30 per common share, alongside share repurchases totaling about $4.5 million. These actions reflect the company's ongoing strategy to deliver value to its investors while focusing on long-term growth.

Energizer will be holding an investor conference call to discuss detailed insights on these results and future strategies. This call is accessible via their investor relations website, providing both existing shareholders and potential investors the information necessary to gauge Energizer's trajectory.

In summary, while facing certain market challenges, Energizer Holdings, Inc. has demonstrated resilience and is making strategic moves to enhance its operational efficiency and return to a growth-oriented strategy, marking its first quarter of fiscal 2026 as a promising start for the year ahead.