EnerSys (ENS): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the complexity of EnerSys (ENS) to see exactly how they plan to win the next decade, especially after their big lithium pivot. Honestly, mapping their business engine is key when you see their Fiscal Year 2025 Net Sales hit $3,617.6 million, even while managing a Cost of Goods Sold around $2,525 million. This canvas distills that strategy for you, showing how their proprietary battery tech-from Thin Plate Pure Lead to new lithium-connects directly to mission-critical customers like the DoD and major data centers, giving you the precise framework to evaluate their path forward.

EnerSys (ENS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships EnerSys (ENS) locks in to keep its industrial and defense power flowing. These aren't just vendor lists; they're strategic anchors for their manufacturing scale and market access as of late 2025.

U.S. Department of Defense (DoD) for mission-critical defense and aerospace systems

EnerSys maintains a critical role here; the President & CEO stated that EnerSys is the largest supplier of batteries to the U.S. Department of Defense. Their specialty batteries support mission-critical systems across air, land, sea, and space, including military aircraft and secure communications. To further secure this segment, EnerSys allocated about $50 million for a specialized production line tailored for the DoD within the new South Carolina lithium-ion cell production facility.

Strategic suppliers for raw materials, securing the lithium-ion Gigafactory supply chain

Scaling up the new lithium-ion cell production facility requires deep supplier integration. EnerSys is actively forming strategic partnerships, such as engaging in major negotiations with Verkor SAS, a European leader in battery technology, to leverage their expertise in electrode manufacturing and high-speed cell production. This move is part of a larger $615 million investment EnerSys plans over four years to establish and launch the production plant.

Major industrial OEMs like Mitsubishi Logisnext Americas for Motive Power solutions

For the Motive Power segment, which powers electric forklift trucks, EnerSys solidified a key OEM partnership. EnerSys partnered with Mitsubishi Logisnext Americas (Logisnext) to provide power choices through the Logisnext Promatch® parts program, effective since March 17, 2025. This allows Logisnext customers running Mitsubishi Forklift Trucks, Cat® Lift Trucks, or Jungheinrich® or UniCarriers® equipment to choose from EnerSys's traditional lead-acid batteries and advanced maintenance-free thin plate pure lead (TPPL) batteries. The offering also includes energy-efficient, high-frequency chargers and battery management devices.

Regional distributors and service partners, like IBCI, for product sales and aftermarket support

Aftermarket support relies on established regional networks. For instance, EnerSys expanded its Manufacturer Representative Agreement with Industrial Battery & Charger, Inc. (IBCI), the largest motive and stationary power applications provider in the Southeast. Effective January 1, 2021, IBCI became responsible for sales and service of all EnerSys motive power products in the state of Alabama, covering batteries like NexSys®, IRONCLAD®, and chargers like IMPAQ™. EnerSys supports customers in over 100 countries through its global network.

Government entities for R&D funding and IRC Section 45X tax credits

Government support is a significant financial enabler for EnerSys's domestic manufacturing expansion and operational profitability. You can see the hard numbers tied to these federal relationships below. Honestly, the tax credits are a material factor in current guidance.

Key Financial Metrics Related to Government Partnerships (as of late 2025):

The company's FY2025 guidance for adjusted diluted EPS was raised to incorporate these benefits, targeting $9.65 to $9.95 for the full year.

The new South Carolina lithium-ion cell production facility will span 500,000 square feet and target an annual production capacity of 4GWh to 5GWh. Construction is set to begin in 2025, with commercial production expected to commence in 2028.

EnerSys also participates in the U.S. Department of Energy's Better Plants Program, pledging to reduce its energy intensity by 25% over the next decade, using CY2020 as the baseline year.

In fiscal year 2025, EnerSys delivered over 12 GWh of energy storage capacity.

Finance: draft 13-week cash view by Friday.

EnerSys (ENS) - Canvas Business Model: Key Activities

You're looking at the core actions EnerSys takes to deliver its value proposition, and honestly, the numbers show a company in a major transformation phase, balancing cost-cutting with massive capital investment.

Global manufacturing and distribution across over 100 countries

EnerSys operates a massive global footprint to serve its customer base. The company has nearly 11,000 employees across four continents.

• Serves customers in over 100 countries.
• Operates around 180 locations globally, including manufacturing, warehouse, service, and distribution centers.
• Manufacturing locations include 14 in the USA, 2 in China, 2 in Brazil, 2 in the UK, 2 in Poland, and 1 each in France, Argentina, and the Czech Republic as of FY2025.

In fiscal year 2025, EnerSys delivered over 12 gigawatt hours of energy storage capacity.

R&D and innovation in lithium-ion and Thin Plate Pure Lead (TPPL) technologies

A significant activity is the investment in next-generation technology, particularly the lithium-ion cell production capability. EnerSys is focusing on technologies like TPPL and lithium batteries.

The company is building a state-of-the-art lithium-ion cell production facility in Greenville, South Carolina, spanning 500,000 square feet. This project has secured a $199 million award from the U.S. Department of Energy (DOE). The total investment is $665 million, expected between FY26 and FY28, with commercial production targeted for 2028.

Innovation is also seen in product deployment; for example, the ABSL™ lithium-ion battery was engineered for and launched onboard NASA's Europa Clipper spacecraft.

Operational excellence and cost optimization, targeting $80 million in annual savings by FY2026

EnerSys launched its EnerGize strategic framework to optimize the core business, which included a significant organizational realignment announced in July 2025. This involved a workforce reduction affecting approximately 575 employees, or 11% of its non-production global workforce.

These changes are expected to yield approximately $80 million in annualized savings starting in fiscal year 2026. Here's the quick math on that target:

Also, the company achieved energy efficiency gains, reducing energy intensity per kWh produced by 19% since FY2021.

Strategic M&A integration, such as the Bren-Tronics acquisition for defense expansion

The acquisition of Bren-Tronics in May 2024 was a key activity to strengthen defense capabilities. EnerSys purchased Bren-Tronics for an all-cash transaction of $208 million. This represented approximately 8.7x Bren-Tronics' adjusted EBITDA for the twelve months ending December 31, 2023.

Bren-Tronics had 2023 sales of approximately $100 million and brought about 280 employees across the U.S., France, and the U.K.. The deal was expected to be immediately accretive, adding more than $60 million in revenue and $0.35 to EPS in FY25. For the third quarter of fiscal 2025, the Specialty segment, bolstered by Bren-Tronics, recorded 6.8% YoY growth and accounted for 15.7% of EnerSys' revenue.

Managing a complex, global supply chain for critical components

Managing the supply chain involves significant capital allocation and working capital discipline. As of September 28, 2025, EnerSys maintained a net debt of $842 million, resulting in a net leverage ratio of 1.3x EBITDA, which is below their target range.

Capital deployment for operations and investment is detailed below:

• Full fiscal 2026 CapEx expectation is approximately $80 million.
• In the first 9 months of fiscal 2025, Operating Cash Flow (OCF) was $125 million, which was negatively impacted by a sharp $200 million increase in Net Working Capital (NWC).
• As of June 29, 2025, cash and cash equivalents on hand totaled $347 million.

The company is also managing significant tax credit flows related to domestic production, realizing a $75 million tax credit in Q3 FY25 and a total of $118 million in the first 9 months of FY25.

EnerSys (ENS) - Canvas Business Model: Key Resources

You're building a strategy around a company with deep industrial roots, so understanding their core assets-the things they own and control-is step one. Here's the breakdown of what EnerSys (ENS) relies on as of late 2025.

Global manufacturing footprint, including the new South Carolina lithium-ion Gigafactory.

EnerSys (ENS) maintains a significant physical presence, operating more than 32 manufacturing facilities worldwide as of early 2025. This network is being strategically bolstered by domestic expansion, most notably the lithium-ion cell production facility in Greenville, South Carolina. This new Gigafactory is set to span 500,000 square feet. Construction was targeted to begin in 2025, with commercial production slated for 2028. This effort is supported by a finalized $199 million award from the U.S. Department of Energy (DOE). Also in South Carolina, the company completed a $6.7 million expansion of its Sumter metal plant, adding 34,000 ft2, with operations online in May 2025.

Proprietary technology platforms: Batteries, Power Electronics, and Software.

The value here is in the specialized knowledge embedded in their product lines. EnerSys (ENS) owns the core intellectual property across its three main technology areas. This includes the design and integration of advanced battery chemistries, the associated power electronics required for energy management, and the software layers that control these systems for industrial applications.

Intellectual property and patents in stored energy solutions.

The company's competitive moat is reinforced by its portfolio of intellectual property. This IP covers critical advancements in stored energy solutions, protecting their specific designs and processes in a rapidly evolving sector. This proprietary knowledge is key to maintaining differentiation in the market.

Human capital: nearly 11,000 employees globally with deep technical expertise.

The workforce represents a deep pool of specialized knowledge. As of March 31, 2025, EnerSys (ENS) employed 10,858 people globally. To right-size the organization and focus resources, the company announced in July 2025 that it would reduce its non-production global workforce by approximately 575 employees, which is 11% of that group. Still, the remaining staff holds the deep technical expertise required for their complex industrial products.

Strong balance sheet supporting capital expenditures of around $120 million in FY2025.

Financial strength underpins these physical and human investments. EnerSys (ENS) maintained a strong balance sheet to fund its strategic build-out. Capital expenditures (CAPEX) for the full Fiscal Year 2025 were estimated to be around $120 million. This investment pace continued into the next fiscal period, with CAPEX totaling $53.9 million in the first six months of fiscal 2026 (ending September 28, 2025). The company's net leverage ratio at the end of FY2025 was 1.3 X EBITDA.

Here are some of the key financial and operational metrics underpinning these resources as of the latest reporting periods:

The operational scale is also reflected in segment performance:

• Energy Systems segment sales in Q2 FY2026 were $435 million, up 14% year over year.
• Motive Power maintenance-free products reached a record 29% of segment sales in Q4 FY2025.
• The company returned $192 million to shareholders through buybacks and dividends in Fiscal Year 2025.
• The acquisition of Bren-Tronics, completed in July 2024, was expected to add over $60 million in revenue in FY2025.

Finance: draft 13-week cash view by Friday.

EnerSys (ENS) - Canvas Business Model: Value Propositions

You're looking at the core promises EnerSys (ENS) makes to its customers, grounded in their Fiscal Year 2025 performance. These aren't just marketing slogans; they are backed by operational results and financial achievements as of late 2025.

Reliable, Integrated Power Solutions for Mission-Critical Infrastructure

For critical systems like data centers, reliability translates directly into revenue protection. EnerSys (ENS) delivered on this by seeing its Energy Systems segment net sales grow 8% year-over-year in the fourth quarter of fiscal 2025. Specifically, demand improvement in Data Centers drove a 22% year-over-year increase in Q4 FY2025. The adjusted operating margin for Energy Systems in that quarter reached 8.7%. To give you a sense of scale for grid support, EnerSys delivered over 12 GWh of energy storage capacity in fiscal year 2025.

Enabling Electrification and Automation for Industrial Vehicles and Logistics

The Motive Power business is where you see the direct value in industrial automation. In Q4 FY2025, this segment generated 15% earnings growth year-over-year. This was supported by a strong product mix shift, as maintenance-free products reached a record 29% of Motive Power segment sales in that quarter. The resulting adjusted operating margin for Motive Power in Q4 FY2025 was 17.0%.

High-Performance, Durable Energy Storage for Aerospace and Defense Applications

Durability and performance in demanding environments are key here. The Specialty segment, which includes Aerospace and Defense (A&D), saw revenue increase 21% year-over-year in Q4 FY2025. A significant part of this growth came from strategic moves; the acquisition of Bren-Tronics provided a 22% positive revenue impact to the Specialty segment in that quarter. EnerSys also claims the title of the largest supplier of batteries to the U.S. Department of Defense.

Lower Total Cost of Ownership Through Maintenance-Free and Energy-Efficient Products

Lowering the Total Cost of Ownership (TCO) is achieved through product longevity and reduced energy draw. You can see the adoption of lower-maintenance solutions in the Motive Power segment, where maintenance-free products hit a record 29% of sales in Q4 FY2025. On the energy efficiency side, EnerSys has reduced its energy intensity per kWh produced by 19% since Fiscal Year 2021, putting them on track for their FY2030 goal of 25%. Furthermore, internal operational improvements, like advanced HVAC controls at one plant, cut annual energy costs by $250,000.

Contributing to Domestic Energy Security and Supply Chain Resilience

Resilience in the supply chain is a tangible value proposition, especially given recent global events. As of a May 12, 2025 update mentioned in their filings, EnerSys has structured its sourcing such that 80% of its U.S. supply is compliant with USMCA or of domestic origin, with only 5% sourced from China. This focus on domestic capacity supports national security needs, given their role supplying the U.S. Department of Defense.

Here's a quick look at the segment performance that underpins these value claims for Q4 FY2025:

The company's overall financial health supports these investments; Full Year Fiscal 2025 saw record adjusted diluted EPS of $10.15, and the net leverage ratio stood at 1.3 X EBITDA at the end of Q4 FY2025.

EnerSys (ENS) - Canvas Business Model: Customer Relationships

You're looking at how EnerSys (ENS) manages its deep, long-term connections with its industrial and mission-critical clients as of late 2025. This isn't just about selling a product; it's about ensuring uptime for systems that power data centers and national defense.

Dedicated Aftermarket and Customer Support Services Across 100+ Countries

EnerSys maintains a global service footprint, providing aftermarket and customer support services to its clientele in over 100 countries, supported by its worldwide sales and manufacturing locations. This global reach is critical for supporting infrastructure like telecommunications and data centers that require constant uptime.

The company operates a fully staffed technical support center, offering engagement with factory-trained technical support representatives 24/7, 365 days a year. They leverage internal resources, including the engineering design team, to resolve customer powering challenges quickly and effectively. This high level of availability is segmented across their core business lines.

The company's focus on product longevity and service is reflected in its operational improvements. For instance, in FY2025, EnerSys reduced its energy intensity per kWh produced by 19% since FY2021, a metric that directly impacts the long-term cost of ownership for customers.

Long-Term, High-Touch Relationships with Large, Strategic B2B Customers

EnerSys serves more than 10,000 customers globally, with relationships spanning critical sectors. A key example of a high-touch, strategic relationship is their role as the largest supplier of batteries to the U.S. Department of Defense, where their energy storage technologies power mission-critical systems across air, land, sea, and space.

The company's strategic moves in late 2025 underscore this focus on key customer segments. The acquisition of Bren-Tronics and Rebel Systems was specifically aimed at strengthening the defense and tactical energy storage portfolio, ensuring durable technologies for these high-stakes partners. Furthermore, the Energy Systems segment, which serves telecom, data centers, and utilities, represented 41.3% of the company's revenue in a recent period, showing the financial weight of these large B2B relationships.

• Customers supported globally: Over 10,000.
• Key strategic customer: U.S. Department of Defense (largest supplier).
• FY2025 revenue driver: Strong performance in Aerospace and Defense and Data Center markets.
• FY2025 delivery metric: Over 12 gigawatt hours (GWh) of energy storage capacity delivered.

Self-Service and Digital Tools for Product Information and Technical Resources

While direct digital adoption metrics aren't always public, the emphasis on certain product types points toward a strategy that reduces the need for reactive, high-touch service. EnerSys expects revenue in fiscal year 2025 to be bolstered by customer enthusiasm for their maintenance-free offerings. This shift inherently moves some routine service interaction toward a self-service model based on product reliability.

The company's commitment to transparency, including publishing its European Sustainability Reporting Standards (ESRS) disclosures ahead of mandated deadlines in FY2025, suggests a move toward providing comprehensive, accessible documentation for stakeholders, which serves as a form of digital self-service for compliance and technical review.

Customer Intimacy to Inform Technological Roadmaps and Product Expansion

The development of new solutions is clearly informed by deep engagement with key customers facing specific challenges. For example, pilot programs with leading telecommunications providers proved the value of their 48V lithium systems, which directly replaced diesel generators, reducing operating costs and emissions. This collaboration guides the expansion of their lithium solutions.

Also, the focus on energy security and resilience, highlighted in the FY2025 Sustainability Report, shows that customer needs-like grid stabilization and backup power for critical infrastructure-are driving product strategy. The company is advancing solutions that enable broader integration of renewables, a direct response to evolving utility and telecom customer requirements for a more resilient power landscape.

EnerSys (ENS) - Canvas Business Model: Channels

You're looking at how EnerSys (ENS) gets its stored energy solutions into the hands of customers globally as of late 2025. The channel strategy is built on a mix of direct engagement for major clients and broad reach through partners.

The company supports its global operations with a significant physical footprint. EnerSys is a publicly traded company with nearly 11,000 employees operating across four continents. The worldwide headquarters is in Reading, PA, USA, complemented by regional headquarters in Europe and Asia. This infrastructure includes over thirty manufacturing and assembly plants worldwide.

The reach extends to serving over 10,000 customers in more than 100 countries. This global network supports the delivery of solutions for critical infrastructure like data centers, telecommunications, and industrial facilities.

The channel structure involves a multi-pronged approach to market access:

• Direct sales force targeting large industrial, telecom, and government accounts.
• A global network of third-party distributors and certified service centers.
• Direct sales through an internal sales force, complemented by distributors and independent representatives.

For large accounts, the direct sales force engages with Energy Systems customers in telecom, broadband, and data centers, as well as Motive Power and Specialty segments. Channel partnerships are also key, evidenced by agreements such as launching ODYSSEY Batteries through NAPA AUTO PARTS and a partnering agreement with Hawker for KION North America dealer networks.

The scale of the business is reflected in recent financial performance, providing context for the channel activity. For the fiscal year ending March 31, 2025, EnerSys reported annual revenue of $3.62B. Trailing twelve months (TTM) revenue as of late 2025 was reported at $3.72 Billion USD. For the third quarter of CY2025, net sales reached $951.3 million.

Aftermarket parts and service sales form a critical component of the channel strategy, providing ongoing revenue streams. EnerSys explicitly provides aftermarket and customer support services in over 100 countries. Management anticipated an increase in transportation aftermarket sales for fiscal year 2025.

Here's a look at the geographic and operational scale supporting these channels:

The company's operational structure is designed to service these channels efficiently, with financial results showing the outcome of this channel deployment. For instance, the company expects to incur capital expenditures in the range of $100M to $120M for the full fiscal year 2025.

EnerSys (ENS) - Canvas Business Model: Customer Segments

You're looking at how EnerSys (ENS) carves up its market, which is key to understanding where their money is actually coming from right now, late in 2025. The company clearly segments its customer base into three main buckets, plus a developing area for new tech.

Energy Systems

This segment serves customers needing reliable, high-capacity backup and power management. Think of the backbone of the digital world and critical infrastructure. You're selling to telecom providers, broadband operators, data centers, and electric utilities.

For the second quarter of fiscal 2026, which ended on September 28, 2025, this segment was the largest revenue contributor, bringing in $435 million in net sales, which was 45.7% of the total company sales for that quarter. That's a solid 14% jump year-over-year for the segment. To give you a sense of the scale, management estimated the total addressable market (TAM) for this area at $20 billion, compared to the $1.6 billion in sales EnerSys reported for this segment in fiscal year 2024. This unit saw significant growth driven by data centers and a continuing recovery in the U.S. Communications market.

The segment also houses large-scale energy storage solutions, which ties into the New Ventures area, showing how existing segments evolve.

Motive Power

This is where EnerSys powers the movement of goods. Your customers here are primarily in warehousing, logistics, and material handling operations that rely on electric forklifts and other industrial electric vehicles. This is a mature but highly profitable area for the company.

In the second quarter of fiscal 2026, Motive Power generated net sales of $360 million, making up 37.9% of the total. That was actually a slight dip, down 2% year-over-year, though management noted that maintenance-free products reached a record 29% of segment sales. Honestly, this segment is the profit engine; for the first nine months of fiscal 2025, it delivered an operating profit of $166 million, achieving an EBIT margin of 15.23%. EnerSys holds an estimated market share of approximately 22% here, positioning them as a global leader.

The customer base here includes:

• Material handling equipment dealers.
• Forklift and heavy truck original equipment manufacturers (OEMs).
• End users like warehouse operators and retailers.

Specialty

This segment targets niche, high-specification applications where reliability and ruggedness are non-negotiable. You're serving aerospace, defense, premium automotive, and specialized medical systems.

The Specialty segment recorded 6.8% year-over-year growth in the first nine months of fiscal 2025. For the full fiscal year 2025, net sales for this segment increased by $58.0 million, which is 10.8%, largely thanks to increased volumes in Aerospace and Defense, especially following the July 2024 acquisition of Bren-Tronics. This acquisition was noted to add more than $60 million in revenue in FY25. Despite the growth, this unit has a lower operating margin profile, reporting 5.24% EBIT margin in the first 9m FY25. The segment accounted for 15.7% of EnerSys' revenue in the first nine months of fiscal 2025.

New Ventures

This isn't a fully separate segment yet, but it represents where future growth is being seeded, often overlapping with Energy Systems. You're focusing on large-scale energy storage projects and dynamic fast charging infrastructure for electric vehicles (EVs).

Management indicated they expected the first revenues from Fast Charge and Storage in fiscal 2025. These solutions target demand charge reduction and utility back-up power, serving customers in over 100 countries. While specific standalone revenue for this New Ventures bucket isn't broken out, the investment in the 5GWh annual Lithium-Ion gigafactory in South Carolina, a $665 million investment planned between FY26 and FY28, shows the commitment to scaling this future customer base.

Here's a quick look at the revenue split based on the most recent quarterly data available:

If you look at the trailing twelve months ending September 28, 2025, the total revenue was $3.73B. The Q2 FY2026 sales figure itself was $951.3 million, showing strong sequential growth from the prior quarter.

Finance: draft 13-week cash view by Friday.

EnerSys (ENS) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive EnerSys's operations as of late 2025. It's a story of heavy investment in production and managing the costs of a global manufacturing base.

The Cost of Goods Sold (COGS) remains the single largest cost component. For the full fiscal year 2025, this totaled $2,525 million. This figure is heavily influenced by the cost of raw materials, which you know is a persistent pressure point in the battery sector. To combat this, the July 2025 strategic restructuring plan targeted an estimated $10 million reduction in cost of goods sold, signaling a push for operational efficiency gains across the production line.

EnerSys's global footprint means manufacturing and logistics are inherently significant costs. You have plants and distribution networks spanning continents to serve industrial, defense, and telecom customers. This scale is necessary for their value proposition but demands substantial, ongoing overhead.

Operating Expenses (OpEx) for fiscal 2025 were reported at $608.7 million. New leadership is actively addressing this overhead. The restructuring announced in July 2025 targets an annualized saving of $80 million starting in fiscal year 2026, with approximately $70 million of that coming directly from reducing operating expenses-that's over 10% of the FY2025 OpEx base. This pivot comes with a short-term cost, with one-time restructuring charges estimated between $15 million and $20 million, mostly for severance.

Major Capital Expenditures (CapEx) are focused on future capacity, specifically the shift to lithium technology. For fiscal 2025, total CapEx was estimated around $120 million. This included ongoing plant improvements, such as the $30.2 million spent in the fourth quarter alone. The biggest future outlay is the planned 5GWh annual Lithium-Ion gigafactory in South Carolina, a project with a total investment of approximately $665 million expected to be executed between FY26 and FY28.

The need to stay ahead in the lithium transition mandates continuous Research and Development (R&D) investment. While a specific FY2025 R&D dollar amount isn't immediately clear, the company noted that it continues to produce positive operating cash flow despite these large investments in CapEx and R&D expenditures. This spending supports the development of next-generation products like NexSys^® iON batteries and high-energy Li6T batteries for the Department of Defense.

Here's a quick look at the key financial figures impacting the cost side:

The company is actively managing these costs through structural changes, like the restructuring which is expected to realize $30 million to $35 million of savings in fiscal year 2026 alone. Also, the company secured a $199 million award from the U.S. Department of Energy to support the lithium cell facility construction.

• Raw material cost pressure on COGS.
• Global manufacturing footprint drives logistics overhead.
• Restructuring targets $70 million in OpEx reduction.
• $120 million CapEx in FY2025 for current operations and improvements.
• Major future CapEx: $665 million for the South Carolina Gigafactory.
• R&D investment is ongoing to support the lithium technology shift.

Finance: draft 13-week cash view by Friday.

EnerSys (ENS) - Canvas Business Model: Revenue Streams

You're looking at the top-line drivers for EnerSys as of late 2025, and the numbers show a clear pivot toward premium, high-tech offerings, even as the core business provides stability. The total revenue picture for the full fiscal year 2025 landed at approximately $3.6 billion.

Product sales form the bulk of this, flowing through the four main operational segments. To give you a sense of the mix based on the first nine months of fiscal 2025, here's how the revenue was shaping up:

The shift in product mix is definitely a key revenue story. You see this clearly in the Motive Power segment, where higher-margin, maintenance-free products are taking a larger share of the sales pie. Specifically, revenue from TPPL and lithium-ion batteries hit a record 29% of the Motive Power segment's revenue in the fourth quarter of fiscal 2025.

Now, let's talk about the significant, non-operational revenue boost from government incentives. The Advanced Manufacturing Production Credits under IRC Section 45X are a material financial benefit, effectively reducing the cost of goods sold. EnerSys expected the annual impact of these credits for fiscal 2025 to fall in the range of $135 million to $175 million. To put a fine point on the cash impact, the company received a tax return refund of $137 million, plus accrued interest, on August 25, 2025, related to the fiscal 2024 credits. For context, the Q3 FY25 results alone reflected a $75 million benefit from these credits.

Beyond the big product sales, EnerSys also generates revenue from ongoing customer support, which is important for long-term stability. This stream includes:

• Aftermarket services.
• Maintenance contracts.
• Replacement parts sales.

The company supports these streams across its customer base in over 100 countries.