Net sales increased 2.3% driven by Acquisition Net sales of $63.6 million and Organic Net sales growth of 0.7%(1)
Reported EPS of $3.32 & Adjusted EPS of $3.52, an increase of 6% on an adjusted basis (1)
Net earnings of $239.0 million & Adjusted EBITDA of $623.6 million (1)
Project Momentum surpassed over $200 million in savings during the three-year program
Extending Project Momentum to a fourth year, with a focus on ongoing tariff mitigation, increasing operational efficiency and the integration of the APS business
Fourth Quarter Results
Net sales increased 3.4% to $832.8 million driven by Acquisition Net sales of $42.8 million partially offset by Organic Net sales decline of 2.2%(1)
Reported EPS of $0.50 & Adjusted EPS of $1.05(1)
ST. LOUIS, Nov. 18, 2025 /PRNewswire/ -- Energizer Holdings, Inc. (NYSE:ENR) today announced results for the fourth fiscal quarter and full fiscal year, which ended September 30, 2025.
"Energizer delivered strong earnings in Fiscal 2025 by staying agile and focused in a volatile environment," said Mark LaVigne, Chief Executive Officer. "We adjusted quickly, found opportunities, and executed with discipline to deliver a strong year. 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. However, we have responded decisively. By extending Project Momentum and accelerating integration efforts, we will preserve margins and build flexibility to invest in future growth. With resilient categories, trusted brands, and a clear strategy, we are well-positioned to build on our success and accelerate performance as the year progresses."
Top-Line Performance
Net sales were $832.8 million for the fourth fiscal quarter compared to $805.7 million in the prior year period and $2,952.7 million for the fiscal year compared to $2,887.0 million for the prior fiscal year.
Fourth Quarter
% Chg
Full Fiscal Year
% Chg
Net sales - FY'24
$ 805.7
$ 2,887.0
Organic
(17.4)
(2.2) %
19.8
0.7 %
Acquisition impact
42.8
5.3 %
63.6
2.2 %
Change in highly inflationary markets
(2.8)
(0.3) %
(5.3)
(0.2) %
Impact of currency
4.5
0.6 %
(12.4)
(0.4) %
Net sales - FY'25
$ 832.8
3.4 %
$ 2,952.7
2.3 %
For the fourth fiscal quarter, organic Net sales decreased 2.2% from the prior year due to the following items: (1)
Volumes declined 2.9% due to softer consumer demand, primarily in North America, partially offset by growth in e-commerce and international markets in Batteries & Lights, and new innovation and expanded distribution in Auto Care.
Partially offsetting the volume declines were pricing increases of 0.7% driven by innovation and tariffs across both segments.
For the fiscal year, organic Net sales increased 0.7% due to the following items: (1)
Volumes grew 1.5% driven by new and expanded distribution and growth in e-commerce, as well as new innovation in Auto Care, partially offset by lower back-half category volumes as softer consumer demand impacted both segments.
Offsetting the volume growth were pricing declines of 0.8% driven by planned strategic pricing and promotional investments partially offset by innovation and tariff pricing.
Gross Margin
Gross margin percentage on a reported basis for the fourth fiscal quarter was 36.6%, versus 38.1% in the prior year quarter. Excluding the current and prior year restructuring costs, network transition costs and integration costs, Adjusted Gross margin was 38.5%, down 370 basis points from the prior year quarter.(1)
Gross margin percentage on a reported basis for fiscal 2025 was 41.7%, versus 38.3% in the prior year. Excluding the FY23 & FY24 production credits recorded in the current year, the current and prior year restructuring costs, network transition costs and integration costs, Adjusted Gross margin was 40.9% and consistent with prior year.(1)
Fourth Quarter
Full Fiscal Year
Gross margin - FY'24 Reported
38.1 %
38.3 %
Prior year impact of restructuring, network transition and integration costs
4.1 %
2.6 %
Adjusted Gross margin - FY'24 (1)
42.2 %
40.9 %
FY25 production credits
1.0 %
1.4 %
Project Momentum initiatives
0.7 %
1.7 %
Pricing
0.4 %
(0.5) %
Product cost impacts
(2.2) %
(1.4) %
Tariffs
(2.1) %
(0.5) %
Acquisition impact
(1.0) %
(0.4) %
Currency impact, including highly inflationary markets
(0.5) %
(0.3) %
Gross margin - FY'25 Adjusted
38.5 %
40.9 %
Current year impact of restructuring, network transition and integration costs and FY23 & FY24 production credits
(1.9) %
0.8 %
Gross margin - FY'25 Reported
36.6 %
41.7 %
Adjusted Gross margin declined in the fourth fiscal quarter driven by increased input costs from production inefficiencies associated with rebalancing our network and increased warehousing, distribution and tariff costs, as well as the lower margin profile of the APS business. These declines were partially offset by the FY25 production tax credit of $7.7 million and the Project Momentum initiatives, which delivered savings of approximately $6 million, as well as benefits from price increases implemented to offset tariff impacts.
Adjusted Gross margin was flat to fiscal 2024. The benefits from the FY25 production credit of $41.6 million and the Project Momentum initiatives, which delivered savings of approximately $50 million, were fully offset by the full year impact from increased product costs from production inefficiencies associated with rebalancing our network and increased warehousing, distribution and tariff costs, as well as the lower margin profile of the APS business and the planned strategic pricing and promotional investments noted above.
Selling, General and Administrative Expense (SG&A)
SG&A for the fourth fiscal quarter was 15.4% of Net sales, or $128.2 million, as compared to 15.3% of Net sales, or $123.0 million, in the prior year when excluding restructuring and related costs, acquisition and integration costs and a litigation matter. The year-over-year increase was primarily driven by increased SG&A from the APS business of $7.3 million, increased investment in digital transformation and increased recycling fees. These increases were partially offset by savings from Project Momentum of approximately $4 million.(1)
SG&A for fiscal 2025 was $495.5 million, or 16.8% of Net sales, as compared to $473.1 million, or 16.4% of Net sales, in the prior year when excluding restructuring and related costs, acquisition and integration costs, and a litigation matter. The year-over-year increase was primarily driven by increased SG&A from the APS business of $11.8 million, increased investment in digital transformation and increased legal and recycling fees. This increase was partially offset by Project Momentum savings of approximately $14 million in the period.(1)
Advertising and Promotion Expense (A&P)
A&P was 4.1% of Net sales for the fourth fiscal quarter and 5.1% of Net sales for fiscal 2025. A&P spending in the prior year was 4.6% for the fourth fiscal quarter of 2024 and 5.0% for fiscal 2024. For the quarter, this was a decrease of 50 basis points, or $3.3 million and for fiscal 2025 this was an increase of 10 basis points or $8.0 million.
Earnings Per Share and Adjusted EBITDA
Fourth Quarter
Full Fiscal Year
(In millions, except per share data)
2025
2024
2025
2024
Net earnings
$ 34.9
$ 47.6
$ 239.0
$ 38.1
Diluted net earnings per common share
$ 0.50
$ 0.65
$ 3.32
$ 0.52
Adjusted net earnings(1)
$ 72.8
$ 89.3
$ 253.1
$ 241.3
Adjusted diluted net earnings per common share(1)
$ 1.05
$ 1.22
$ 3.52
$ 3.32
Adjusted EBITDA(1)
$ 171.2
$ 187.3
$ 623.6
$ 612.4
Currency neutral Adjusted diluted net earnings per common share(1)
$ 1.08
$ 3.59
Currency neutral Adjusted EBITDA(1)
$ 173.3
$ 629.4
The decline in net earnings in the fourth fiscal quarter was primarily driven by a current year non-cash pre-tax impairment charge of $5.9 million on certain proprietary formulas the Company no longer plans to utilize and the increase in the loss on extinguishment of debt. The increase in net earnings in fiscal 2025 was primarily driven by the current and prior year production credits of $120.9 million recorded in fiscal 2025. Fiscal 2024 was further impacted by the non-cash pre-tax impairment charge of $110.6 million.
For the fourth fiscal quarter, the decrease in Adjusted earnings and Adjusted EBITDA reflects the decrease in Gross margin due to the increased product costs and tariffs, as well as increased SG&A spending and unfavorable currency impacts, partially offset by Project Momentum savings, FY25 production tax credits and lower A&P spending. Adjusted earnings per share was further impacted by higher interest expense as the Company's overall debt balance has increased, partially offset by decreased tax expense.
For the full year, Adjusted net earnings per share and Adjusted EBITDA reflects improvement driven by Project Momentum, as well as the FY25 production credits, which were more than enough to offset the impacts of lower consumer demand and increased costs. Adjusted earnings per share further benefited from lower tax expense.
For the quarter, currency had an unfavorable pre-tax impact of $2.3 million, or $0.03 per share, and for fiscal 2025, currency had an unfavorable pre-tax impact of $6.0 million, or $0.07 per share.
Capital Allocation
Operating cash flow for fiscal 2025 was $147.1 million. Fiscal 2025 free cash flow was $63.2 million, or 2.1% of Net sales.
The Company repurchased 1.2 million shares of common stock for $27.1 million, or $22.49 per share during the fourth fiscal quarter. During fiscal 2025, the Company repurchased a total of 4.0 million shares of common stock at $22.42 per share.
The Company paid dividends in the quarter of $21.3 million, or $0.30 per common share. Dividend payments for fiscal 2025 were $87.1 million, or $1.20 per common share.
The Company refinanced $500.0 million of existing debt during the fourth quarter. The proceeds were used to redeem the 2027 6.50% notes and fully restore revolver capacity.
Subsequent to year-end, the Company received a tax refund of $50.7 million, which included the fiscal 2024 production credit refund. The Company utilized these funds, as well as other funds, to pay down approximately $80.0 million of outstanding debt.
Financial Outlook and Assumptions for Fiscal 2026 (1)
For fiscal 2026, we expect organic Net sales to be flat to slightly up in both Batteries and Lights and Auto Care. Gross margin is expected to modestly decline, as the impact of tariffs will be largely offset through already executed pricing, production credits and productivity initiatives, with slight margin dilution from the inclusion of the APS business for the full year. As a result, we expect to deliver adjusted earnings per share for the full year in the range of $3.30 to $3.60 and Adjusted EBITDA in the range of $580 million to $610 million.
Our earnings cadence this year will be influenced by a challenging sales comparison and transitory costs, both of which are primarily impacting the first quarter. Following the first quarter, we expect to generate double digit Adjusted earnings per share growth over the remainder of the year. For the first quarter, we expect organic Net sales to decline high-single digits and Adjusted earnings per share to be in the range of $0.20 to $0.30.
Webcast Information
In conjunction with this announcement, the Company posted prepared comments under the Investor/Events & Presentation section of the Company website and will hold an investor conference call beginning at 10:00 a.m. eastern time today. The call will focus on fourth quarter and fiscal 2025 financial results and the financial outlook for fiscal 2026. 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/weKgmMqmP4p
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.
(1)
See Press Release attachments and supplemental schedules for additional information, including the GAAP to Non-GAAP reconciliations.
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:
Global economic and financial market conditions beyond our control might materially and negatively impact us.
Competition in our product categories might hinder our ability to execute our business strategy, achieve profitability, or maintain relationships with existing customers.
Changes in the retail environment and consumer preferences could adversely affect our business, financial condition and results of operations.
We must successfully manage the demand, supply, and operational challenges brought on by any disease outbreak, including epidemics, pandemics, or similar widespread public health concerns.
Loss or impairment of the reputation of our Company or our leading brands or failure of our marketing plans could have an adverse effect on our business.
Loss of any of our principal customers could significantly decrease our sales and profitability.
Our ability to meet our growth targets depends on successful product, marketing and operations innovation and successful responses to competitive innovation and changing consumer habits.
We are subject to risks related to our international operations, including tariffs and currency fluctuations, which could adversely affect our results of operations.
If we fail to protect our intellectual property rights, competitors may manufacture and market similar products, which could adversely affect our market share and results of operations.
Changes in production costs, including raw material prices and transportation costs, from inflation or otherwise, have adversely affected, and in the future could erode, our profit margins and negatively impact operating results.
Our reliance on certain significant suppliers subjects us to numerous risks, including possible interruptions in supply, which could adversely affect our business.
Our business is vulnerable to the availability of raw materials, our ability to forecast customer demand and our ability to manage production capacity.
The manufacturing facilities, supply channels or other business operations of the Company and our suppliers may be subject to disruption from events beyond our control.
The Company's future results may be affected by its operational execution, including its ability to achieve cost savings as a result of any current or future restructuring events.
If our goodwill and indefinite-lived intangible assets become impaired, we will be required to record impairment charges, which may be significant.
A failure of a key information technology system could adversely impact our ability to conduct business.
We rely significantly on information technology and any inadequacy, interruption, theft or loss of data, malicious attack, integration failure, failure to maintain the security, confidentiality or privacy of sensitive data residing on our systems or other security failure of that technology could harm our ability to effectively operate our business and damage the reputation of our brands.
We may not be able to attract, retain and develop key employees, as well as effectively manage human capital resources.
We have significant debt obligations that could adversely affect our business.
Our credit ratings are important to our cost of capital.
We may experience losses or be subject to increased funding and expenses related to our pension plans.
The estimates and assumptions on which our financial projections are based may prove to be inaccurate, which may cause our actual results to materially differ from our projections, which may adversely affect our future profitability, cash flows and stock price.
If we pursue strategic acquisitions, divestitures or joint ventures, we might experience operating difficulties, dilution, and other consequences that may harm our business, financial condition, and operating results, and we may not be able to successfully consummate favorable transactions or successfully integrate acquired businesses.
Our business involves the potential for product liability claims, labeling claims, commercial claims and other legal claims against us, which could affect our results of operations and financial condition and result in product recalls or withdrawals.
Our business is subject to increasing government regulations in both the U.S. and abroad that could impose material costs.
Increased focus by governmental and non-governmental organizations, customers, consumers and shareholders on environmental, social and governance (ESG) issues, including those related to sustainability and climate change, may have an adverse effect on our business, financial condition and results of operations and damage our reputation.
We are subject to environmental laws and regulations that may expose us to significant liabilities and have a material adverse effect on our results of operations and financial condition.
Section 45X of the Internal Revenue Code contains production tax credits for certain battery components. Our ability to benefit from Section 45X production tax credits is not guaranteed and is dependent upon the federal government's ongoing implementation, guidance, regulations, or rulemakings.
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 19, 2024 and in our Form 10-Q filed August 4, 2025.
ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Condensed)
(In millions, except per share data - Unaudited)
Quarter Ended September 30,
Twelve Months Ended September 30,
2025
2024
2025
2024
Net sales
$ 832.8
$ 805.7
$ 2,952.7
$ 2,887.0
Cost of products sold (1)
528.4
498.9
1,720.0
1,782.7
Gross profit
304.4
306.8
1,232.7
1,104.3
Selling, general and administrative expense (1)
136.8
146.1
532.4
526.3
Advertising and promotion expense
34.1
37.4
151.7
143.7
Research and development expense
8.3
8.5
32.6
31.6
Amortization of intangible assets
14.6
14.7
58.7
58.2
Impairment of intangible assets (2)
5.9
—
5.9
110.6
Interest expense
40.3
37.8
154.3
155.7
Loss on extinguishment/modification of debt (3)
6.8
0.3
12.1
2.4
Other items, net (1) (4)
4.2
2.5
0.9
22.0
Earnings before income taxes
53.4
59.5
284.1
53.8
Income tax expense
18.5
11.9
45.1
15.7
Net earnings
$ 34.9
$ 47.6
$ 239.0
$ 38.1
Basic net earnings per common share
$ 0.51
$ 0.66
$ 3.37
$ 0.53
Diluted net earnings per common share
$ 0.50
$ 0.65
$ 3.32
$ 0.52
Weighted average shares of common stock - Basic
68.4
71.8
70.9
71.8
Weighted average shares of common stock - Diluted
69.5
73.0
72.0
72.7
(1) See the attached Supplemental Schedules - Non-GAAP Reconciliations, which break out the Project Momentum restructuring and related costs, Network transition costs, FY23 & FY24 production tax credits, Acquisition and integration related costs, and Litigation matters recorded included within these lines.
(2) The non-cash impairment of intangible assets for the quarter and twelve months ended September 30, 2025 related to impairing the remaining book value of certain proprietary formulas the Company plans to no longer utilize. The non-cash Impairment of intangible assets for the twelve months ended September 30, 2024 related to the Company's Rayovac trade name impairment of $85.2 million and Varta trade name impairment of $25.4 million.
(3) The Loss on extinguishment/modification of debt for the quarter ended September 30, 2025 related to the Company's September 2025 redemption of the $300.0 million Senior Notes due in 2027. The loss for the twelve months ended September 30, 2025 also included the refinancing and extension of the Company's $760 million term loan and $500 million credit facility completed earlier in the year. The Loss on extinguishment/modification of debt for the quarter and twelve months ended September 30, 2024 related to the early repayment of term loan during the respective periods, as well as the term loan repricing during the prior year.
(4) During December 2023, a new president was inaugurated in Argentina bringing significant economic reform to the country including devaluing the Argentine Peso by 50% in the month of December (the "December 2023 Argentina Economic Reform"). As a result of this reform and devaluation, the Company has recorded $22.0 million of currency exchange and related losses within Other items, net for the twelve months ended September 30, 2024.
ENERGIZER HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Condensed)
(In millions - Unaudited)
SEPTEMBER 30,
2025
2024
Assets
Current assets
Cash and cash equivalents
$ 236.2
$ 216.9
Trade receivables
404.2
441.3
Inventories
781.2
657.3
Other current assets
257.5
163.4
Total current assets
$ 1,679.1
$ 1,478.9
Property, plant and equipment, net
403.0
380.1
Operating lease assets
93.2
94.7
Goodwill
1,051.2
1,046.0
Other intangible assets, net
1,005.5
1,070.9
Deferred tax asset
166.6
145.8
Other assets
158.1
126.0
Total assets
$ 4,556.7
$ 4,342.4
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt
$ 8.6
$ 12.0
Current portion of finance leases
1.5
0.6
Notes payable
13.7
2.1
Accounts payable
402.2
433.1
Current operating lease liabilities
16.2
18.2
Other current liabilities
352.8
353.8
Total current liabilities
$ 795.0
$ 819.8
Long-term debt
3,407.9
3,193.0
Operating lease liabilities
84.8
82.4
Deferred tax liability
6.1
8.3
Other liabilities
93.0
103.1
Total liabilities
$ 4,386.8
$ 4,206.6
Shareholders' equity
Common stock
0.8
0.8
Additional paid-in capital
603.5
667.6
Retained earnings/(losses)
87.0
(128.4)
Treasury stock
(295.8)
(223.6)
Accumulated other comprehensive loss
(225.6)
(180.6)
Total shareholders' equity
$ 169.9
$ 135.8
Total liabilities and shareholders' equity
$ 4,556.7
$ 4,342.4
ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Condensed)
(In millions - Unaudited)
FOR THE YEARS ENDED SEPTEMBER 30,
2025
2024
Cash Flow from Operating Activities
Net earnings
$ 239.0
$ 38.1
Adjustments to reconcile net earnings to net cash flow from operations:
Non-cash integration and restructuring charges
15.5
13.0
Impairment of intangible assets
5.9
110.6
Depreciation and amortization
126.7
120.5
Deferred income taxes
(16.6)
(43.3)
Share-based compensation expense
25.6
23.1
Gain on sale of real estate
—
(4.4)
Loss on extinguishment on debt
7.9
2.4
Foreign currency exchange loss included in income
1.6
32.1
Non-cash items included in income, net
11.9
17.8
Production tax credits
(120.9)
—
Other, net
(9.3)
(2.2)
Changes in assets and liabilities used in operations, net of acquisitions
Decrease in accounts receivable, net
32.9
71.8
Increase in inventories
(88.6)
(4.0)
Increase in other current assets
(12.2)
(0.1)
(Decrease)/increase in accounts payable
(60.0)
62.2
Decrease in other current liabilities
(12.3)
(8.0)
Net cash from operating activities
147.1
429.6
Cash Flow from Investing Activities
Capital expenditures
(83.9)
(97.9)
Proceeds from sale of assets
—
7.3
Acquisitions, net of cash acquired
(14.3)
(22.4)
Purchase of available-for-sale securities
—
(5.2)
Proceeds from sale of available-for-sale securities
—
4.2
Net cash used by investing activities
(98.2)
(114.0)
Cash Flow from Financing Activities
Cash proceeds from issuance of debt with original maturities greater than 90 days
698.0
—
Payments on debt with maturities greater than 90 days
(523.5)
(200.8)
Net decrease in debt with maturities 90 days or less
(0.1)
(6.2)
Debt issuance costs
