Energizer (ENR) Q1 2025 earnings summary

Executive summary

• Q1 FY25 net sales reached $731.7 million, up 2.1% reported and 3.8% organic year-over-year, with both Battery & Lights and Auto Care segments contributing to growth.

• Adjusted EPS increased 14% to $0.67, and adjusted EBITDA rose to $140.7 million, reflecting operational improvements and cost savings.

• Net earnings were $22.3 million (GAAP), with adjusted net earnings at $49.4 million for the quarter.

• Project Momentum delivered $16–$20 million in quarterly savings, with $161 million realized to date and a $200 million target by FY25 end.

• Free cash flow was $42.4 million, supporting debt reduction for the 10th consecutive quarter.

Financial highlights

• Adjusted gross margin improved 50 basis points to 40.0% year-over-year, while reported gross margin was 36.8%.

• Adjusted EBITDA reached $140.7 million (up 6%), and adjusted EPS was $0.67 (up 14%).

• Free cash flow for the quarter was $42.4 million, representing 5.8% of net sales.

• Interest expense decreased to $37.0 million from $40.7 million, reflecting lower average debt balances.

• Net leverage improved to 4.7x from 5.3x year-over-year, with $25 million in debt paydown.

Outlook and guidance

• Full-year organic net sales growth guidance raised to 2%-3%, with reported net sales expected up 1%-2%.

• Adjusted EPS guidance reaffirmed at $3.45–$3.65 and adjusted EBITDA at $625M–$645M.

• Q2 FY25 outlook: organic net sales up 2%-3%, adjusted EPS $0.60–$0.70.

• Project Momentum is on track to deliver $200 million in pre-tax savings by end of FY25.

• Anticipate $150M–$200M in debt paydown and year-end net leverage ratio of ~4.5x.