Energizer’s third quarter results were met with a significant negative reaction from the market, as investors focused on both a miss in non-GAAP profit expectations and a marked decline in operating margin compared to last year. Management pointed to robust growth in e-commerce and international markets as key drivers, alongside targeted network changes and cost savings from Project Momentum. CEO Mark LaVigne acknowledged the challenging environment, highlighting that, “tariffs have increased our costs, consumer demand softened late in the year, and supply chains required rapid rebalancing.”
Is now the time to buy ENR? Find out in our full research report (it’s free for active Edge members).
Energizer (ENR) Q3 CY2025 Highlights:
- Revenue: $832.8 million vs analyst estimates of $826.3 million (3.4% year-on-year growth, 0.8% beat)
- Adjusted EPS: $1.05 vs analyst expectations of $1.16 (9.8% miss)
- Adjusted EBITDA: $171.2 million vs analyst estimates of $178.9 million (20.6% margin, 4.3% miss)
- Revenue Guidance for Q4 CY2025 is $695.1 million at the midpoint, below analyst estimates of $763 million
- Adjusted EPS guidance for the upcoming financial year 2026 is $3.45 at the midpoint, missing analyst estimates by 6.9%
- EBITDA guidance for the upcoming financial year 2026 is $595 million at the midpoint, below analyst estimates of $641.1 million
- Operating Margin: 13.3%, in line with the same quarter last year
- Organic Revenue fell 2.2% year on year vs analyst estimates of flat growth (144.8 basis point miss)
- Market Capitalization: $1.23 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Energizer’s Q3 Earnings Call
- Peter K. Grom (UBS) questioned Energizer’s confidence in achieving full-year targets after a challenged start. CEO Mark LaVigne and CFO John Drabik detailed the operational changes and built-in conservatism, emphasizing their belief in improvement after Q1 but noting, “there’s a lot of stuff we cannot control.”
- Lauren Rae Lieberman (Barclays) asked about evolving consumer sentiment and cost environment. LaVigne pointed to ongoing softness in category demand, driven by value-seeking behavior, and confirmed expectations for continued margin pressures that should abate after the first quarter.
- Robert Edward Ottenstein (Evercore) inquired about channel dynamics, particularly e-commerce and Amazon. LaVigne noted e-commerce as a bright spot with strong growth and share gains, highlighting it as a core focus for future expansion.
- Shovana Chowdhury (JPMorgan) sought clarification on the incremental benefit from domestic production credits. LaVigne estimated potential upside of $15–$20 million annually, with benefits expected to begin next year.
- William Michael Reuter (Bank of America) pressed on consumer behavior trends and leverage reduction. LaVigne described current changes as temporary, expecting a return to historical growth rates and prioritizing debt reduction as working capital normalizes.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of category demand stabilization as consumer sentiment and purchasing patterns evolve, (2) the execution and impact of supply chain and network realignment, particularly how quickly operational efficiencies materialize, and (3) sustained momentum in e-commerce and international markets. Additionally, progress in Project Momentum’s cost savings and the realization of domestic production credits will be important milestones.
Energizer currently trades at $18.02, down from $23.85 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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