EnerSys (ENS) Oppenheimer 21st Annual Industrial Growth Virtual Conference summary

Strategic positioning and market opportunities

• Focused on mission-critical energy storage solutions across batteries, power electronics, software, and services, with deep expertise in niche markets like data centers, communications, utilities, aerospace, defense, and warehousing.

• Benefiting from two major super cycles: AI-driven data center expansion and increased defense electrification, with strong positions in both sectors.

• Warehousing/logistics segment covers over half of U.S. warehouses, providing integrated battery and energy storage systems to address grid and labor challenges.

• High customer trust and specialized knowledge create significant competitive moats, deterring larger competitors from entering these markets.

• Revenue split: 42% network infrastructure, 41% warehousing/logistics, 17% specialty (aerospace & defense).

Operational transformation and growth initiatives

• Implemented the EnerGize framework, reorganizing around centers of excellence for asset-light manufacturing, lead-acid, and lithium technologies.

• Achieved cost synergies and operational leverage by focusing resources and expertise in key technology areas.

• Management team changes and renewed focus have led to improved performance and clarity in strategic direction.

• Shifted revenue mix from 95%+ lead-acid to approximately 60/40 lead-acid to non-lead-acid, reflecting diversification.

• Investor Day will focus on clarifying strategy, key growth bets, and a replicable model for sustained EPS growth.

Supply chain, manufacturing, and tariff management

• Consolidating manufacturing footprint, expanding U.S. operations, and reducing Mexico exposure to support data center and lithium growth.

• Building a new lithium plant in Greenville, focused on defense applications and de-risked through government partnerships.

• Diversified global supply chain with proactive tariff mitigation, resulting in $40 million net tariff exposure, largely offset by internal initiatives.

• Centers of excellence enable rapid problem-solving and supply chain resilience across electronics, lead, and lithium.

• Ability to invest in inventory and supply chain distinguishes from startups and ensures customer support.