Battery category performed well, while Auto Care was softer due to mild weather; the new Podium Series exceeded launch expectations in 15,000 doors.
Energizer delivered a strong third quarter with results ahead of expectations, reflecting margin restoration, growth investments, and operational agility.
Organic sales growth, gross margin improvement, and earnings growth were achieved in the quarter, with EPS at $0.78 excluding production credits, outperforming consensus.
Returned $84 million to shareholders via dividends and share repurchases in the quarter, with an additional $27 million repurchased in July while maintaining leverage.
The acquisition of Advanced Power Solutions is expected to add $40 million to $50 million in net sales for the fiscal year without immediate earnings impact.
Cash and short-term investments increased to $433 million, with no debt on the balance sheet.
Domestic revenues decreased by 8% due to project timing, while international revenues increased 39%, driven by Canadian and Middle East/Africa operations.
Electric Utility market revenues grew 31%, Commercial and Other Industrial by 18%, and traction market by 61%, albeit from a small base.
Gross profit increased by $6 million to $88 million, with gross margin improving by 230 basis points to 30.7%.
Net income rose 4% year-over-year to $48.2 million, generating a record quarterly EPS of $3.96.
New orders totaled $362 million, a 2% increase from the prior year, with a book-to-bill ratio of 1.3x and backlog growth of 7% to $1.4 billion.
Operating cash flow was $47 million, and capital expenditures totaled $5.1 million related to facility expansion and new equipment.
Powell Industries reported third quarter fiscal 2025 revenue of $286 million, roughly flat compared to $288 million in the prior year period.
SG&A expenses increased by $3 million to $25 million, driven by higher compensation and acquisition-related costs, with SG&A as a percentage of revenue rising to 8.8%.
Adjusted EBITDA was $506 million, down 24%, with margin at 12%, down 300 basis points due to lower gross profit and reduced operating leverage.
Adjusted EPS was $2.38, down 32%, with share repurchases adding approximately $0.18 per share benefit.
Adjusted SG&A was $818 million, up $4 million, mainly from acquired operations, with 30% fixed and 70% variable costs.
Capital expenditures were $86 million; $61 million deployed on acquisitions; repurchased 3.3 million shares for $391 million.
Gross profit was $1.3 billion, down 11% year-over-year, with gross margin at 30.7%, down 210 basis points due to margin normalization and low starts environment.
Net debt to adjusted EBITDA ratio was about 2.3x, fixed charge coverage ratio roughly 6x; no long-term debt maturities until 2030.
Net sales decreased 5% to $4.2 billion in Q2, driven by lower organic sales and commodity deflation, partially offset by acquisitions.
Operating cash flow was $341 million, down $111 million mainly due to lower net income; free cash flow was $255 million.
Adjusted earnings per share was $0.80 for Q2, up 18% on a two-year stack basis.
Aftermarket revenue was 37% of total revenue, up 100 basis points year-over-year.
Deployed $500 million to share repurchases, $47 million to M&A, and $8 million for dividends in Q2.
Free cash flow for Q2 was $210 million, down year-over-year due to bond interest timing; year-to-date free cash flow up 13%.
Leverage improved by 0.3 turns to 1.7x compared to prior year.
Orders grew 8% year-over-year with a book-to-bill of 1.03x; backlog increased mid-teens percentage compared to end of 2024.
Second quarter adjusted EBITDA was $509 million with a margin of 27%, down year-over-year due to volume declines, dilutive impact from acquisitions, tariff pricing matching costs, and targeted growth investments.
Segment IT&S orders up 7% year-over-year with organic low single-digit growth; adjusted EBITDA margins declined due to volume and tariff impacts.
Segment P&ST orders up 13% year-over-year with organic orders down 5% due to prior year large projects; revenue up 17% driven by M&A; adjusted EBITDA margin improved sequentially.
Dafinchi