EnerSys (ENS) Oppenheimer 21st Annual Industrial Growth Virtual Conference summary

Strategic positioning and market opportunities

• Focused on mission-critical energy storage solutions across batteries, power electronics, software, and services, with deep expertise in niche markets such as data centers, communications, utilities, aerospace, defense, and warehousing.

• Benefiting from two major super cycles: AI-driven data center expansion and increased defense electrification, with strong positions in both sectors.

• Warehousing/logistics segment covers over half of U.S. warehouses, providing integrated battery solutions for forklifts and energy security.

• High customer trust and specialized knowledge create significant competitive moats, deterring larger competitors from entering these markets.

• Revenue split: 42% network infrastructure, 41% warehousing/logistics, 17% specialty (aerospace & defense).

Operational transformation and growth initiatives

• Implemented the EnerGize framework, reorganizing around centers of excellence for asset-light contract manufacturing, lead-acid, and lithium technologies.

• Achieved cost synergies and operational leverage by focusing resources and expertise in key technology areas.

• Management team changes and renewed focus have led to improved performance and clarity in strategic direction.

• Shifted revenue mix from 95%+ lead-acid to approximately 60/40 lead-acid to non-lead-acid, reflecting diversification.

• Investor Day will focus on clarifying strategy, key growth bets, and a replicable model for sustained EPS growth.

Supply chain, manufacturing, and expansion plans

• Consolidating manufacturing footprint, increasing U.S. production, and reducing Mexico exposure to support data center growth and new technologies.

• Investing in new lithium plant in Greenville, with a focus on defense applications and de-risked project structure.

• Strategic expansion into battery energy storage systems for warehouses and munitions backlog, leveraging partnerships for funding.

• Supply chain diversified across APAC, Europe, and U.S., with proactive tariff mitigation and engineering adaptations.

• Net tariff exposure for U.S. sourcing is about $40 million, largely offset by internal task force actions.