EnerSys (NYSE:ENS) Q3 2023 Earnings Conference Call February 9, 2023 9:00 AM ET

Company Participants

Lisa Hartman - Vice President of Investor Relations

David Shaffer - President and Chief Executive Officer

Andrea Funk - Executive Vice President and Chief Financial Officer

Conference Call Participants

Noah Kaye - Oppenheimer Corporation

Greg Wasikowski - Weber Research

Brian Drab - William Blair

Tyler DiMatteo - BTIG

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter Fiscal Year 2023 EnerSys Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference call is being recorded.

At this time, I would like to turn the conference over to Lisa Hartman, Vice President of Investor Relations.

Lisa Hartman

Good morning, everyone. Welcome to the EnerSys' Q3 fiscal year 2023 earnings conference call.

On the call with me today are David Shaffer, EnerSys' President and Chief Executive Officer; and Andrea Funk, EnerSys' Executive Vice President and Chief Financial Officer.

Last evening, we published our third quarter fiscal year 2023 results and filed our 10-Q with the SEC, which are available on our website. We also posted slides that will be referenced during this call. The slides are available on the Presentations page within the Investor Relations and of our website at www.enersys.com.

As a reminder, we will be presenting certain forward-looking statements on this call that are subject to uncertainties and changes in circumstances. Our actual results may differ materially from these forward-looking statements for a number of reasons. Our forward-looking statements are applicable only as of today, February 09, 2023. For a list of forward-looking statements and factors which could affect our future results, please refer to our recent 10-K filed with the SEC.

In addition, we will also be presenting certain non-GAAP financial measures, particularly concerning our adjusted consolidated operating earnings performance, adjusted diluted earnings per share and adjusted EBITDA, which excludes certain items. For an explanation of the differences between the GAAP and non-GAAP financial metrics, please see our company's Form 8-K, which includes our press release dated February 08, 2023.

Now I'll turn the call over to President and CEO, Dave Shaffer.

David Shaffer

Thanks, Lisa, and good morning, everyone.

Please turn to Slide 4. We delivered strong Q3 results reporting $920 million of revenue and $85 million of adjusted operating earnings, our highest revenue and highest adjusted operating earnings in the company's history as all three lines of businesses performed well. We realized the second consecutive quarter of significant adjusted gross margin expansion, driven by impressive price/mix improvement and continued robust demand for our products in all of our end markets. Despite interest and FX rate headwinds, as well as ongoing supply chain and inflationary pressures, we reported third quarter adjusted earnings of $1.27 per diluted share, above the midpoint of our guidance and a 26% increase versus $1.01 per share in Q3 '22.