EnerSys (NYSE:ENS) Q3 2024 Earnings Call Transcript

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EnerSys (NYSE:ENS) Q3 2024 Earnings Call Transcript February 8, 2024

EnerSys isnā€™t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Good day, and thank you for standing by. Welcome to the Third Quarter 2024 EnerSys Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the call over to Lisa Hartman, Vice President of Investor Relations.

Lisa Hartman: Good morning, everyone. Thank you for joining us today to discuss EnerSys' third quarter fiscal 2024 results. On the call with me today are David Shaffer, EnerSys' President and Chief Executive Officer; and Andrea Funk, EnerSys Executive Vice President and Chief Financial Officer. Last evening, we published our third quarter results and filed our 10-Q with the SEC, which are available on our website. We also posted slides that we'll be referencing during the call. Slides are available on the Presentations page within the Investor Relations section of our website. As a reminder, we will be presenting certain forward-looking statements on this call that are subject to uncertainties and changes in circumstances. Our actual results may differ materially from these forward-looking statements for a number of reasons.

These statements are made only as of today. For a list of forward-looking statements and factors which could affect our future results, please refer to our recent 10-Q filed with the SEC. In addition, we will be presenting certain non-GAAP financial measures, particularly concerning our adjusted consolidated operating earnings performance, free cash flow, adjusted diluted earnings per share and adjusted EBITDA, which excludes certain items. For an explanation of the difference between the GAAP and non-GAAP financial metrics, please see our company's Form 8-K, which includes our press release dated February 7, 2024. Now I'll turn the call over to EnerSys' President and CEO, Dave Shaffer.

David Shaffer: Thank you, Lisa, and good morning. We delivered solid third quarter earnings, including adjusted EPS, which was above the midpoint of our guidance range. We achieved impressive gross margins, as we continue to sustain our pricing position and benefited from increased IRA benefits. Sales were lower versus our strong prior year, as we continue to see demand pauses in our telecom and broadband end markets. We delivered exceptional free cash flow generation, which allows us to maintain our robust balance sheet, reduce our net leverage, providing ample dry powder for future growth investments, and uphold our consistent capital allocation discipline. Andy will give details on our third quarter fiscal '24 performance and outlook, but I will first provide a few highlights.