Energizer Holdings, Inc. (NYSE:ENR) reported fiscal third-quarter results on Monday that significantly surpassed analyst forecasts, powered by production tax credits and operational efficiencies. The company’s shares surged 10.61% in pre-market trading following the announcement.
The battery and auto care products manufacturer posted adjusted earnings per share of $1.13 for the quarter ended June 30, 2025, well above the consensus estimate of $0.62. Revenue reached $725.3 million, beating expectations of $713.73 million and marking a 3.4% increase compared to $701.4 million in the same quarter last year. Organic sales growth was modest at 0.1%.
A key driver of Energizer’s strong performance was $112.4 million in Advanced Manufacturing Production Credits linked to its U.S. battery production. This includes $33.9 million credited for fiscal 2025 and $78.5 million retroactive to January 2023. The company’s adjusted gross margin expanded 330 basis points to 44.8%, reflecting both the impact of these credits and ongoing cost-saving initiatives under its Project Momentum program.
“Three years ago, we launched Project Momentum to restore margins, increase our operational agility, and invest in growth. Our performance this quarter illustrates the benefits of those efforts as we delivered organic top-line growth, strong gross margins and robust earnings,” said Mark LaVigne, Chief Executive Officer.
Sales in the Battery & Lights segment rose 5.1% to $535.1 million, while Auto Care segment sales declined slightly by 1.1% to $190.2 million. Volume growth of 1.7% was partly offset by planned strategic pricing and promotional investments of 1.6%.
Looking forward, Energizer raised its full-year guidance, now anticipating net sales growth of 1% to 3% and adjusted EPS between $3.55 and $3.65, surpassing analyst consensus of $3.37. The company also projects adjusted EBITDA in the range of $630 to $640 million for fiscal 2025.
For the fourth quarter, Energizer expects reported net sales growth of 2% to 4% and adjusted EPS between $1.05 and $1.15, which includes an estimated $5 to $10 million benefit from production credits.
The strong quarterly results and improved outlook underscore Energizer’s successful execution of Project Momentum and eligibility for production credits, positioning the company for sustained earnings growth through fiscal years 2025 and 2026.
Energizer Holdings stock price
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