Energizer (ENR) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 2026 were $734.1 million, up 1.2% year-over-year, with organic growth of 2.7%; nine-month sales reached $2,156.3 million, up 1.7% from the prior year.

• Adjusted EPS for Q3 was $0.75, down 11.8% year-over-year, and adjusted EBITDA was $138.7 million, both excluding out-of-period production credits.

• Gross margin on an adjusted basis was 39.2%, down from 44.8% prior year, due to the absence of $78.5 million in prior-year production credits and increased promotional investments.

• Segment profit declined across both Batteries & Lights and Auto Care, while innovation and distribution gains in specialty batteries and Auto Care supported long-term value.

• Results were impacted by restructuring costs, acquisition/integration expenses, and a non-cash pension settlement loss.

Financial highlights

• Q3 FY26 net sales were $734.1M, with Auto Care up 10.4% reported and 9.5% organic, while Batteries & Lights declined 2.0% reported but grew 0.3% organic.

• Adjusted gross margin was 39.2%; reported gross margin was 38.2%.

• Adjusted EPS was $0.75; reported EPS was $0.58.

• Operating cash flow for nine months was $156.0 million, up from $85.6 million prior year, with free cash flow at 4.9% of sales.

• Over $80M in debt was paid down year-to-date; dividend payments in the quarter totaled $20.6 million ($0.30 per share).

Outlook and guidance

• Fiscal 2026 adjusted EPS and EBITDA are expected at the low end of original ranges: $3.30–$3.60 for EPS and $580–$610 million for EBITDA.

• Q4 organic net sales projected flat to slightly up, with adjusted EPS expected to grow approximately 25% at the midpoint.

• FY26 debt repayment expected at $150–200M, with free cash flow tailwinds into FY27.

• Capital expenditures for fiscal 2026 anticipated at $60–$70 million, including $25–$35 million for operational efficiency initiatives.

• Project Momentum restructuring expected to yield $20–$25 million in savings and $10–$15 million in tariff mitigation/cost avoidance by September 2026.