Energizer Holdings, Inc. Announces Fiscal 2026 Second Quarter Results

Second Quarter Highlights

ST. LOUIS, May 5, 2026 /PRNewswire/ -- Energizer Holdings, Inc. (NYSE: ENR) today announced results for the second fiscal quarter ended March 31, 2026.  

"Our strategic priorities in Fiscal 2026 remain clear: restoring growth, rebuilding margins impacted by tariffs, and returning the business to its long‑term historical cash flow profile," said Mark LaVigne, Chief Executive Officer. "During the second quarter, we continued to make meaningful progress against these priorities, highlighted by significant gross margin recovery and growing confidence in a return to organic growth in the back half of the year.  Our disciplined execution is translating into tangible improvements across the income statement, strengthening our confidence in delivering the high end of our full year earnings outlook."

Top-Line Performance

For the quarter, we had Net sales of $643.3 million compared to $662.9 million in the prior year period.

Organic Net sales decreased 5.5% primarily due to the following items:

The Advanced Power Solutions (APS) acquisition completed on May 2, 2025 contributed $2.1 million to Net sales during the quarter ended March 31, 2026.

Gross Margin

Gross margin percentage on a reported basis was 40.2% versus 39.1% in the prior year. Excluding restructuring and related costs in the current and prior year of $27.1 million and $8.7 million, respectively, and the prior year network transition costs of $2.7 million, Adjusted Gross margin was 44.4% compared to 40.8% in the prior year, an increase of 360 basis points.⁽¹⁾

Gross margin and Adjusted Gross margin improvement was driven by a benefit of $47.6 million related to the anticipated refund related to tariffs previously enacted under the International Emergency Powers Act (IEEPA), as well as production tax credits of $11.7 million and benefits from price increases. The improvements were partially offset by increased input costs from production inefficiencies associated with rebalancing our network, other incremental tariffs incurred in the quarter and unfavorable product mix.⁽¹⁾

Selling, General and Administrative Expense (SG&A)

SG&A, excluding restructuring and acquisition costs, was 19.8% of Net sales for the second quarter, or $127.1 million, compared to 18.8%, or $124.5 million in the prior year. The year-over-year dollar increase was primarily driven by increased SG&A from the APS business of $3.0 million, investment in digital transformation and growth initiatives and unfavorable currency. The increase was partially offset by Project Momentum savings of approximately $4 million in the quarter.⁽¹⁾

Advertising and Promotion Expense (A&P)

A&P expense decreased $1.8 million for the second fiscal quarter to 3.0% of Net sales, compared to 3.1% in the prior year.

Net earnings and Earning per share were also impacted by the non-cash settlement charge of $26.1 million recorded in the quarter related to the settlement loss on the termination of the U.K. pension plan.

Free cash flow and Capital allocation

Financial Outlook and Assumptions for Fiscal Year 2026⁽¹⁾

For fiscal 2026, we expect Net sales to be up low single digits and organic Net sales to be roughly flat. Adjusted Gross margin is now expected to be between 40% and 41%, primarily due to the benefit of the tariff refund. As a result, we expect to deliver Adjusted Earnings per share for the full year at the high end of the previously provided range of $3.30 to $3.60 and Adjusted EBITDA at the high end of the previously provided range of $580 to $610 million. 

For the third fiscal quarter, we anticipate low single digit organic Net sales growth and expect to deliver Adjusted Earnings per share in the range of $0.75 to $0.85. 

Webcast Information

In conjunction with this announcement, the Company will post prepared comments under the Investor/Events & Presentations section of the Company website around 7:00 a.m. Eastern Time today and will hold an investor conference call beginning at 10:00 a.m. Eastern Time today. The call will focus on second fiscal quarter earnings and recent trends in the business. All interested parties may access a live webcast of this conference call at www.energizerholdings.com, under "Investors" and "Events and Presentations" tabs or by using the following link:

https://app.webinar.net/zVbKaYVGy8D

For those unable to participate during the live webcast, a replay will be available on www.energizerholdings.com, under "Investors," "Events and Presentations," and "Past Events" tabs.

This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future sales, gross margins, costs, earnings, cash flows, tax rates and performance of the Company. These statements generally can be identified by the use of forward-looking words or phrases such as "believe," "expect," "expectation," "anticipate," "may," "could," "will," "intend," "belief," "estimate," "plan," "target," "predict," "likely," "should," "forecast," "outlook," or other similar words or phrases. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this document are only made as of the date of this document and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation:

In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of any such forward-looking statements. The list of factors above is illustrative, but by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Additional risks and uncertainties include those detailed from time to time in our publicly filed documents, including those described under the heading "Risk Factors" in our Form 10-K filed with the Securities and Exchange Commission on November 18, 2025.

ENERGIZER HOLDINGS, INC.

CONSOLIDATED STATEMENT OF EARNINGS

(Condensed)

(In millions, except per share data - Unaudited)

CONSOLIDATED BALANCE SHEETS

(Condensed)

(In millions - Unaudited)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Condensed)

(In millions - Unaudited)

ENERGIZER HOLDINGS, INC.
Reconciliation of GAAP and Non-GAAP Measures
For the Quarter and Six months ended March 31, 2026

The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP").  However, management believes that certain non-GAAP financial measures provide users with additional meaningful comparisons to the corresponding historical or future period, and are used for management incentive compensation. These non-GAAP financial measures exclude items that are not reflective of the Company's on-going operating performance, such as restructuring and related costs, network transition costs, acquisition and integration costs, a litigation matter, FY23 & FY24 production credits, impairment of intangible assets, the settlement loss on the U.K. pension plan termination and the loss on extinguishment/modification of debt. In addition, these measures help investors to analyze year over year comparability when excluding currency fluctuations as well as other Company initiatives that are not on-going.  We believe these non-GAAP financial measures are an enhancement to assist investors in understanding our business and in performing analysis consistent with financial models developed by research analysts. Investors should consider non-GAAP measures in addition to, not as a substitute for, or superior to, the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in methods and in the items being adjusted.

We provide the following non-GAAP measures and calculations, as well as the corresponding reconciliation to the closest GAAP measure in the following supplemental schedules:

Segment Profit. This amount represents the operations of our two reportable segments including allocations for shared support functions. General corporate and other expenses, amortization expense, interest expense, loss on extinguishment/modification of debt, other items, net, restructuring and related costs, network transition costs and acquisition and integration costs have all been excluded from segment profit. 

Adjusted Net Earnings and Adjusted Diluted Net Earnings per Common Share (EPS). These measures exclude the impact of restructuring and related costs, network transition costs, costs related to acquisition and integration, the settlement loss on the U.K. pension plan termination and the loss on extinguishment/modification of debt.

Non-GAAP Tax Rate. This is the tax rate when excluding the pre-tax impact of restructuring and related costs, network transition costs, costs related to acquisition and integration, the settlement loss on the U.K. pension plan termination and the loss on extinguishment/modification of debt, as well as the related tax impact for these items, calculated utilizing the statutory rate for the jurisdictions where the impact was incurred.

Organic.  This is the non-GAAP financial measurement of the change in Net sales or Segment profit that excludes or otherwise adjusts for the Acquisition impact, the Change in highly inflationary markets and impact of currency from the changes in foreign currency exchange rates as defined below:

Acquisition Impact. The Company completed the APS acquisition on May 2, 2025. These adjustments include the impact of the operations associated with the acquired branded battery business. The Company transitioned from these branded businesses to legacy brands by December 31, 2025. This does not include the impact of acquisition and integration costs associated with this acquisition.

Change in highly inflationary markets. The Company is presenting separately all changes in sales and segment profit from our Egypt and Argentina affiliates due to the designation of the economies as highly inflationary as of October 1, 2024 and July 1, 2018, respectively.

Impact of currency. The Company evaluates the operating performance of our Company on a currency neutral basis. The Impact of Currency is the change in foreign currency exchange rates year-over-year on reported results, which is calculated by comparing the value of current year foreign operations at the current period USD exchange rate versus the value of current year foreign operations at the prior period USD exchange rate. The impact of currency also includes (gains)/losses of currency hedging programs, and it excludes highly inflationary markets.

Adjusted Comparisons. Detail for Adjusted Gross profit, Adjusted Gross margin, adjusted SG&A, adjusted SG&A as percent of Net sales and Adjusted Other Items, net are also supplemental non-GAAP measure disclosures. These measures exclude the impact of restructuring and related costs, network transition costs, acquisition and integration costs and the settlement loss on the U.K. pension plan termination.

EBITDA and Adjusted EBITDA. EBITDA is defined as (loss)/earnings before Income tax provision, Interest expense, the Loss on extinguishment/modification of debt, and depreciation and amortization. Adjusted EBITDA further excludes the impact of the costs related to restructuring, network transition costs, acquisition and integration costs, the settlement loss on the U.K. pension plan termination, a litigation matter, FY23 & FY24 production credits, impairment of intangible assets, and share based payments.

Free Cash Flow. Free Cash Flow is defined as net cash provided by operating activities reduced by capital expenditures, net of the proceeds from asset sales.

Net Debt. Net Debt is defined as total Company debt, less Cash and cash equivalents.

Currency-neutral. Currency-neutral excludes the Impact of currency as defined above on key measures. Highly inflationary markets are excluded from this calculation.

Operations for Energizer are managed via two product segments: Batteries & Lights and Auto Care. Energizer's operating model includes a combination of standalone and shared business functions between the product segments, varying by country and region of the world. Shared functions include the sales and marketing functions, as well as human resources, IT and finance shared service costs. Energizer applies a fully allocated cost basis, in which shared business functions are allocated between segments. Such allocations are estimates, and may not represent the costs of such services if performed on a standalone basis. Segment sales, significant expenses and profitability for the quarters and six months ended March 31, 2026 and 2025 are presented below:

Supplemental Schedules - GAAP EPS to Adjusted EPS Reconciliation

For the Quarter and Six months ended March 31, 2026

(In millions, except per share data - Unaudited)

Supplemental Schedules - Currency Neutral Results

For the Quarter and Six months ended March 31, 2026

(In millions, except per share data - Unaudited)

Supplemental Schedules - Segment Sales and Profit

For the Quarter and Six Months Ended March 31, 2026

(In millions - Unaudited)

Supplemental Schedules - Segment Sales and Profit

For the Quarter and Six Months Ended March 31, 2026

(In millions - Unaudited)

Supplemental Schedules - Non-GAAP Reconciliations

For the Quarter and Six Months Ended March 31, 2026

(In millions - Unaudited)

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SOURCE Energizer Holdings, Inc.