Battery and lighting company Energizer (NYSE: ENR) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $662.9 million. Next quarter’s revenue guidance of $694.4 million underwhelmed, coming in 2.7% below analysts’ estimates. Its non-GAAP profit of $0.67 per share was in line with analysts’ consensus estimates.
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Energizer (ENR) Q1 CY2025 Highlights:
- Revenue: $662.9 million vs analyst estimates of $669.7 million (flat year on year, 1% miss)
- Adjusted EPS: $0.67 vs analyst estimates of $0.68 (in line)
- Adjusted EBITDA: $140.3 million vs analyst estimates of $137.5 million (21.2% margin, 2.1% beat)
- Revenue Guidance for Q2 CY2025 is $694.4 million at the midpoint, below analyst estimates of $713.9 million
- Management lowered its full-year Adjusted EPS guidance to $3.40 at the midpoint, a 4.2% decrease
- EBITDA guidance for the full year is $620 million at the midpoint, below analyst estimates of $632 million
- Operating Margin: 5.5%, down from 13.1% in the same quarter last year
- Free Cash Flow was -$55.6 million, down from $10.3 million in the same quarter last year
- Organic Revenue rose 1.4% year on year (-2.7% in the same quarter last year)
- Market Capitalization: $1.87 billion
"We are proud of our performance in the quarter, as our investments have enabled continued momentum in our top-line and the operating flexibility to effectively offset the impact from tariffs to our fiscal 2025 results." said Mark LaVigne, Chief Executive Officer.
Company Overview
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.
Sales Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years.
With $2.90 billion in revenue over the past 12 months, Energizer carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.
As you can see below, Energizer’s demand was weak over the last three years. Its sales fell by 1.3% annually, a tough starting point for our analysis.
This quarter, Energizer missed Wall Street’s estimates and reported a rather uninspiring 0.1% year-on-year revenue decline, generating $662.9 million of revenue. Company management is currently guiding for a 1% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 1.6% over the next 12 months. While this projection suggests its newer products will catalyze better top-line performance, it is still below average for the sector.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
The demand for Energizer’s products has barely risen over the last eight quarters. On average, the company’s organic sales have been flat. 
In the latest quarter, Energizer’s organic sales rose by 1.4% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum.
Key Takeaways from Energizer’s Q1 Results
It was encouraging to see Energizer beat analysts’ EBITDA expectations this quarter. On the other hand, its EPS guidance for next quarter missed significantly and its gross margin fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 5.3% to $24.50 immediately following the results.
Energizer’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.
