Energizer Holdings Inc. reported fiscal second‑quarter 2026 results on May 5 2026, posting net sales of $643.3 million, a 3.0 % year‑over‑year decline, and net earnings of $10.1 million, or $0.15 per diluted share. Adjusted earnings per share rose to $0.94, beating the consensus estimate of $0.47 by $0.47, a 100 % over‑performance that underscored the company’s disciplined cost management.
The company’s adjusted gross margin expanded to 44.4 % from 40.8 % in the same quarter of 2025, driven by a $47.6 million benefit from tariff refunds and $11.7 million in production tax credits. Adjusted operating expenses increased modestly to 19.8 % of sales, partially offset by $4 million in Project Momentum savings, which helped preserve margin gains amid rising input costs.
Segment analysis shows the Batteries & Lights unit generated $473.2 million in revenue, down 3 % year‑over‑year, reflecting macro‑economic headwinds in retail channels and a slower start to the auto‑care selling season. The decline in this core segment was partially offset by modest gains in other product lines, but overall revenue fell short of the $661.6 million consensus estimate.
Sequentially, the company rebounded from a net loss of $3.4 million and an adjusted EPS of $0.31 reported for the first quarter of fiscal 2026, illustrating a sharp turnaround in profitability that management attributes to cost controls and tariff relief.
Energizer reaffirmed its fiscal 2026 guidance, projecting adjusted EPS at the high end of its $3.30–$3.60 range and adjusted EBITDA of $580–$610 million. For the third quarter, it expects adjusted EPS of $0.75–$0.85, signaling confidence in a rebound after the challenging first quarter and a continued focus on margin expansion.
Mark LaVigne, CEO, said, “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.” He added, “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.”
Investors reacted positively, citing the strong EPS beat and upgraded guidance, which reinforced confidence in the company’s ability to navigate tariff headwinds and sustain margin gains.
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