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Energizer (ENR) investor relations material
Energizer Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales for Q1 2026 rose 6.5% to $778.9 million, driven by the APS acquisition, though organic sales declined 4.3% due to softer U.S. demand and prior year storm activity.
Adjusted EPS was $0.31, down from $0.67 prior year, with a reported net loss of $3.4 million or $(0.05) per share, reflecting higher restructuring and input costs.
Free cash flow reached $124.2 million (15.9% of sales), enabling over $100 million in debt reduction and nearly $28 million returned to shareholders via dividends and share repurchases.
Strategic priorities focused on restoring growth, rebuilding margins, and returning to historical cash flow levels, with a foundation set for sequential gross margin expansion and earnings growth in the back half of the year.
Completed integration of APS acquisition and re-aligned manufacturing footprint to support margin restoration and efficiency initiatives.
Financial highlights
Adjusted gross margin declined to 34.9% (down 510 bps year-over-year), mainly due to higher input costs, tariffs, and lower APS margins; reported gross margin was 32.9%.
Batteries & Lights net sales grew 8.3% reported to $685.2 million, but declined 3.8% organically; Auto Care net sales dropped 5.6% to $93.7 million.
Adjusted EBITDA was $106.9 million, down from $140.7 million prior year.
SG&A expenses increased to $149.3 million (19.2% of sales), mainly due to APS, digital investments, and higher legal and stock compensation costs.
Operating cash flow was $149.5 million, with capital expenditures of $25.3 million.
Outlook and guidance
Fiscal 2026 guidance: organic net sales expected flat to slightly up, adjusted EPS $3.30–$3.60, adjusted EBITDA $580–$610 million, and free cash flow to exceed 10% of net sales.
Q2 2026 outlook: organic net sales down 4–5%, adjusted gross margin to improve sequentially by 300 bps, and adjusted EPS between $0.40–$0.50.
Project Momentum restructuring extended into 2026, targeting $15–$20 million in savings and $15–$25 million in tariff mitigation/cost avoidance.
Future production tax credits expected at $55–$65 million annually until phase-out begins in 2030.
Guidance excludes potential impacts from recent winter storms.
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