EnerSys. (NYSE:ENS) Q1 2025 Earnings Conference Call August 8, 2024 9:00 AM ET

Company Participants

Lisa Hartman - VP of IR
David Shaffer - President and CEO
Andrea Funk - EVP and CFO

Conference Call Participants

Noah Kaye - Oppenheimer and Company
Gregory Lewis - BTIG
Brian Drab - William & Blair
Greg Wasikowski - Webber Research & Advisory

Operator

Good day, and thank you for standing by. Welcome to the Q1 2025 EnerSys Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question-and-answer session. [Operator Instructions] Please be advised today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Lisa Hartman, VP of Investor Relation.

Lisa Hartman

Good morning, everyone. Thank you for joining us today to discuss EnerSys first quarter fiscal 2025 results. 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 first quarter 2025 results and filed our 10-K with the SEC, which are available on our website.

We also posted slides that we will be referring during this call. The slides are available on the Presentations page within the Investor Relations section of our website. As a reminder, we will be presenting 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. These statements are made only as of today. For a list of forward-looking statements and factors which could affect our future results, please refer to our current 10-K filed with the SEC.

In addition, we will be presenting certain non-GAAP financial measures, particularly concerning our adjusted consolidated operating earnings performance, free cash flow, 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 May 22, 2024.

Now I'll turn the call over to Dave.

David Shaffer

Thank you, Lisa. And good morning. Please turn to slide four. In the first quarter of our new fiscal year, we delivered EPS at the midpoint and revenue slightly below the low end of our guidance range.

Our balanced business portfolio price stickiness and disciplined OpEx spending is helping to mitigate uneven demand across key end markets. Gross margin was 28% and adjusted operating earnings were slightly lower than the prior year due to net volumes and mix headwinds, which were largely offset by cost improvements and increased IRA benefits. The current macro environment has influenced several of our customers towards more cautious spending patterns, which has created pockets of order delays for us, but we are not experiencing cancellations.