Energizer Holdings, Inc. Reports Better-than-Expected Q2 Results

Energizer Holdings, Inc. (NYSE: ENR) has released its financial results for the second quarter of fiscal 2025, showcasing a mix of growth and challenges. This article delves into the company’s performance against expectations and provides insights into future guidance.

Energizer Reports Fourth Consecutive Quarter of Organic Revenue Growth

Energizer Holdings, Inc. reported net sales of $662.9 million for the second quarter of fiscal 2025, a slight decrease from the $663.3 million reported in the same quarter of the previous year. The company experienced organic growth of 1.4%, which was offset by a 1.7% negative impact due to currency fluctuations. Despite these challenges, Energizer marked its fourth consecutive quarter of organic revenue growth, highlighting the effectiveness of its strategic initiatives.

In terms of profitability, the company’s gross margin for the quarter was 39.1%, with an adjusted gross margin of 40.8%, reflecting a 30 basis point improvement over the prior year’s adjusted gross margin. This improvement was driven by Project Momentum, which delivered savings of approximately $16 million during the quarter. However, increased freight and warehousing costs, as well as strategic pricing and promotional investments, partially offset these gains.

Earnings per share (EPS) for the quarter came in at $0.39, with adjusted EPS at $0.67, surpassing the market’s expectation of $0.62. Adjusted EBITDA was reported at $140.3 million, slightly below the previous year’s $142.5 million. The company’s performance was bolstered by improved gross margins and lower advertising and promotion expenses, though these were counterbalanced by higher SG&A expenses related to digital transformation and growth initiatives.

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Energizer Holdings Adjusts Guidance, Expects Organic Net Sales to Range from Flat to a 2% Growth

Looking ahead to the remainder of fiscal 2025, Energizer Holdings has adjusted its guidance in light of anticipated consumer caution. The company now expects organic net sales to range from flat to a 2% increase, with adjusted EBITDA projected between $610 million and $630 million. Adjusted earnings per share are forecasted to be in the range of $3.30 to $3.50, reflecting a tempered outlook compared to earlier expectations.

For the third quarter specifically, Energizer anticipates reported and organic net sales to be flat to down 2%, with adjusted earnings per share expected to land between $0.55 and $0.65. This cautious approach takes into account potential impacts from economic volatility and tariff uncertainties, although the company has largely mitigated direct tariff effects through strategic sourcing and pricing actions.

Despite the near-term challenges, Energizer remains confident in its long-term strategy, emphasizing continued investments in business operations to drive sustainable growth and value creation. The recent acquisition of Advanced Power Solutions NV is anticipated to be neutral to adjusted earnings per share for fiscal 2025, with potential benefits expected in subsequent periods. As the company navigates the current economic landscape, it remains focused on leveraging its strengths to maintain momentum and achieve its financial objectives.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.