Energizer’s fourth quarter results were met with a negative market reaction, despite the company surpassing Wall Street revenue and non-GAAP profit expectations. Management cited a combination of higher tariff-related costs, transitional supply chain inefficiencies, and a shift in consumer demand as key factors impacting the quarter. CEO Mark LaVigne described the period as a “transitional start to the year,” noting that “softening consumer trends in October and November and the lingering effects of elevated tariffs” weighed on margins. The company also navigated challenges from private label competition and inventory transitions that temporarily pressured profitability.
Is now the time to buy ENR? Find out in our full research report (it’s free for active Edge members).
Energizer (ENR) Q4 CY2025 Highlights:
- Revenue: $778.9 million vs analyst estimates of $707.9 million (6.5% year-on-year growth, 10% beat)
- Adjusted EPS: $0.31 vs analyst estimates of $0.26 (19.1% beat)
- Adjusted EBITDA: $106.9 million vs analyst estimates of $100.2 million (13.7% margin, 6.7% beat)
- Management reiterated its full-year Adjusted EPS guidance of $3.45 at the midpoint
- EBITDA guidance for the full year is $595 million at the midpoint, in line with analyst expectations
- Operating Margin: 4.7%, down from 8.5% in the same quarter last year
- Organic Revenue fell 4.3% year on year (beat)
- Market Capitalization: $1.59 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 Q4 Earnings Call
- Lauren Lieberman (Barclays) asked about consumer trends and the company’s confidence in a back-half weighted year. CEO Mark LaVigne explained that while the first half reflects short-term headwinds, underlying trends are improving and the plan assumes stable category demand.
- Peter Grom (UBS) inquired how winter storms might impact guidance. LaVigne said it is too early to quantify, noting any benefit will depend on replenishment orders and retailer inventory, with updates expected next quarter.
- Rob Otenstein (Evercore) questioned the drivers behind lower gross profits despite strong battery sales. CFO John Drabik attributed this to higher tariffs, APS transition impacts, and transitional product costs, all expected to recede as the year progresses.
- Andrea Teixeira (JPMorgan) asked about pricing dynamics versus private label and the outlook for auto care. LaVigne noted competition from private label, especially in e-commerce, but highlighted market share gains and new premium product launches countering these trends.
- William Reuter (Bank of America) sought clarity on the impact of input cost inflation and margin progression. Drabik stated that over 90% of zinc is hedged for the year, mitigating some risk, and confirmed sequential gross margin improvements are expected throughout the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be tracking (1) the pace and magnitude of gross margin recovery as supply chain actions take effect, (2) the impact of expanded distribution and new product launches on volume growth, and (3) how shifts in consumer behavior and private label competition affect category share. Additional attention will be paid to input cost trends and management’s ability to maintain pricing discipline.
Energizer currently trades at $23.13, down from $23.38 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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