Energizer shares tumble 15% as Q4 earnings miss overshadows revenue beat
NEW YORK - On Tuesday, Energizer Holdings Inc. (NYSE:ENR) reported fourth-quarter adjusted earnings that fell short of analyst expectations, despite slightly exceeding revenue forecasts.
The battery maker’s shares plunged 15.09% in pre-market trading after the results.
The company reported adjusted earnings of $1.05 per share for its fiscal fourth quarter, missing the analyst consensus of $1.17 by 10.3%. Revenue came in at $832.8 million, marginally above the $830.45 million estimate. Organic net sales declined 2.2% in the quarter, driven primarily by softer consumer demand in North America.
Gross margin contracted significantly, falling to 38.5% on an adjusted basis, down 370 basis points from the prior year quarter. The company attributed this decline to increased input costs from production inefficiencies, higher warehousing and distribution expenses, and rising tariff costs.
"Energizer delivered strong earnings in Fiscal 2025 by staying agile and focused in a volatile environment," said Mark LaVigne, Chief Executive Officer. "As we begin Fiscal 2026, we are operating through a period of transition, with the first quarter more heavily affected by temporary tariff costs and mitigation efforts."
For fiscal 2026, Energizer expects organic net sales to be flat to slightly up, with adjusted earnings per share projected between $3.30 and $3.60. However, the company warned of a challenging first quarter, forecasting organic net sales to decline by high-single digits and adjusted EPS to range between $0.20 and $0.30.
The company is extending its "Project Momentum" cost-saving initiative to a fourth year, focusing on tariff mitigation, operational efficiency, and integration of its APS business. The program has already delivered over $200 million in savings during its three-year run.
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