Second Quarter Highlights
- Net sales of $643.3 million, -3.0% to prior year
- Gross Margin of 40.2% and 44.4% on an adjusted basis, inclusive of a $47.6 million tariff refund benefit(1)
- Earnings per share of $0.15 & Adjusted Earnings per share of $0.94(1)
- Updating fiscal year outlook to low single digit Net sales growth, roughly flat organic Net sales and Adjusted Earnings per share and Adjusted EBITDA to the high end of our previously provided ranges
ST. LOUIS, May 5, 2026 /PRNewswire/ -- Energizer Holdings, Inc. (NYSE: ENR) today announced results for the second fiscal quarter ended March 31, 2026.
"Our strategic priorities in Fiscal 2026 remain clear: restoring growth, rebuilding margins impacted by tariffs, and returning the business to its long?term historical cash flow profile," said Mark LaVigne, Chief Executive Officer. "During the second quarter, we continued to make meaningful progress against these priorities, highlighted by significant gross margin recovery and growing confidence in a return to organic growth in the back half of the year. Our disciplined execution is translating into tangible improvements across the income statement, strengthening our confidence in delivering the high end of our full year earnings outlook."
Top-Line Performance
For the quarter, we had Net sales of $643.3 million compared to $662.9 million in the prior year period.
Second Quarter % Chg
Net sales - FY'25 $662.9
Organic (36.6) (5.5) %
Acquisition impact 2.1 0.3 %
Change in highly inflationary markets (1.1) (0.2) %
Impact of currency 16.0 2.4 %
Net sales - FY'26 $643.3 (3.0) %
Organic Net sales decreased 5.5% primarily due to the following items:
- A shift in the timing of battery orders related to the plastic free conversion, a slower start to the selling season in auto care and a modest impact from the conflict in the Middle East resulted in volume declines of 6.1%.
- Carry over price increases of 0.6%, primarily in the Batteries & Lights segment, partially offset the volume declines.
The Advanced Power Solutions (APS) acquisition completed on May 2, 2025 contributed $2.1 million to Net sales during the quarter ended March 31, 2026.
Gross Margin
Gross margin percentage on a reported basis was 40.2% versus 39.1% in the prior year. Excluding restructuring and related costs in the current and prior year of $27.1 million and $8.7 million, respectively, and the prior year network transition costs of $2.7 million, Adjusted Gross margin was 44.4% compared to 40.8% in the prior year, an increase of 360 basis points.(1)
Second Quarter
Gross margin - FY'25 Reported 39.1 %
Prior year impact of restructuring and related costs and network transition costs 1.7 %
Gross margin - FY'25 Adjusted(1) 40.8 %
Net tariff impact - inclusive of refund benefit 4.8 %
FY26 production credits 1.8 %
Pricing 0.3 %
Product mix (2.4) %
Product cost impacts (1.0) %
All other, including currency impacts 0.1 %
Gross margin - FY'26 Adjusted(1) 44.4 %
Current year impact of restructuring and related costs (4.2) %
Gross margin - FY'26 Reported 40.2 %
Gross margin and Adjusted Gross margin improvement was driven by a benefit of $47.6 million related to the anticipated refund related to tariffs previously enacted under the International Emergency Powers Act (IEEPA), as well as production tax credits of $11.7 million and benefits from price increases. The improvements were partially offset by increased input costs from production inefficiencies associated with rebalancing our network, other incremental tariffs incurred in the quarter and unfavorable product mix.(1)
Selling, General and Administrative Expense (SG&A)
SG&A, excluding restructuring and acquisition costs, was 19.8% of Net sales for the second quarter, or $127.1 million, compared to 18.8%, or $124.5 million in the prior year. The year-over-year dollar increase was primarily driven by increased SG&A from the APS business of $3.0 million, investment in digital transformation and growth initiatives and unfavorable currency. The increase was partially offset by Project Momentum savings of approximately $4 million in the quarter.(1)
Advertising and Promotion Expense (A&P)
A&P expense decreased $1.8 million for the second fiscal quarter to 3.0% of Net sales, compared to 3.1% in the prior year.
Earnings Per Share and Adjusted EBITDA Second Quarter
(In millions, except per share data) 2026 2025
Net earnings $10.1 $28.3
Diluted net earnings per common share $0.15 $0.39
Adjusted Net earnings(1) $65.1 $49.4
Adjusted Diluted net earnings per common share(1) $0.94 $0.67
Adjusted EBITDA(1) $158.6 $140.3
Currency neutral Adjusted Diluted net earnings per common share(1) $0.89
Currency neutral Adjusted EBITDA(1) $154.7
Net earnings, Earnings per share, Adjusted Earnings per share and Adjusted EBITDA were impacted by the benefit of the tariff refund recorded in Gross margin and lower A&P and R&D spend. These benefits were partially offset by the decline in Net sales and an increase in SG&A driven by the APS acquisition. Adjusted Net earnings and Adjusted Earnings per share were further impacted by increased interest expense due to a higher average debt balance in the current year quarter.
Net earnings and Earning per share were also impacted by the non-cash settlement charge of $26.1 million recorded in the quarter related to the settlement loss on the termination of the U.K. pension plan.
Free cash flow and Capital allocation
- Operating cash flow for the six months ended March 31, 2026 was $147.8 million, and Free cash flow was $105.9 million, or 7.4% of Net sales.
- Dividend payments in the quarter were $20.6 million, or $0.30 per common share.
Financial Outlook and Assumptions for Fiscal Year 2026(1)
For fiscal 2026, we expect Net sales to be up low single digits and organic Net sales to be roughly flat. Adjusted Gross margin is now expected to be between 40% and 41%, primarily due to the benefit of the tariff refund. As a result, we expect to deliver Adjusted Earnings per share for the full year at the high end of the previously provided range of $3.30 to $3.60 and Adjusted EBITDA at the high end of the previously provided range of $580 to $610 million.
For the third fiscal quarter, we anticipate low single digit organic Net sales growth and expect to deliver Adjusted Earnings per share in the range of $0.75 to $0.85.
Webcast Information
In conjunction with this announcement, the Company will post prepared comments under the Investor/Events & Presentations section of the Company website around 7:00 a.m. Eastern Time today and will hold an investor conference call beginning at 10:00 a.m. Eastern Time today. The call will focus on second fiscal quarter earnings and recent trends in the business. All interested parties may access a live webcast of this conference call at www.energizerholdings.com, under "Investors" and "Events and Presentations" tabs or by using the following link:
https://app.webinar.net/zVbKaYVGy8D
For those unable to participate during the live webcast, a replay will be available on www.energizerholdings.com, under "Investors," "Events and Presentations," and "Past Events" tabs.
This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future sales, gross margins, costs, earnings, cash flows, tax rates and performance of the Company. These statements generally can be identified by the use of forward-looking words or phrases such as "believe," "expect," "expectation," "anticipate," "may," "could," "will," "intend," "belief," "estimate," "plan," "target," "predict," "likely," "should," "forecast," "outlook," or other similar words or phrases. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this document are only made as of the date of this document and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation:
- Global economic and financial market conditions beyond our control might materially and negatively impact us.
- Competition in our product categories might hinder our ability to execute our business strategy, achieve profitability, or maintain relationships with existing customers.
- Changes in the retail environment and consumer preferences could adversely affect our business, financial condition and results of operations.
- Loss or impairment of the reputation of our Company or our leading brands or failure of our marketing plans could have an adverse effect on our business.
- Loss of any of our principal customers could significantly decrease our sales and profitability.
- Our ability to meet our growth targets depends on successful product, marketing and operations innovation and successful responses to competitive innovation and changing consumer habits.
- We are subject to risks related to our international operations, including tariff and currency fluctuations, which could adversely affect our results of operations.
- We must successfully manage the demand, supply, and operational challenges brought on by any disease outbreak, including epidemics, pandemics, or similar widespread public health concerns.
- If we fail to protect our intellectual property rights, competitors may manufacture and market similar products, which could adversely affect our market share and results of operations.
- Changes in production costs, including raw material prices and transportation costs, from tariffs, inflation or otherwise, have adversely affected, and in the future could erode, our profit margins and negatively impact operating results.
- Our reliance on certain significant suppliers subjects us to numerous risks, including possible interruptions in supply, which could adversely affect our business.
- Our business is vulnerable to the availability of raw materials, as well as our ability to forecast customer demand and manage production capacity.
- The manufacturing facilities, supply channels or other business operations of the Company and our suppliers may be subject to disruption from events beyond our control.
- Our future results may be affected by our operational execution, including our ability to achieve cost savings as a result of any current or future restructuring efforts.
- If our goodwill and indefinite-lived intangible assets become impaired, we will be required to record impairment charges, which may be significant.
- Sales of certain of our products are seasonal and adverse weather conditions during our peak selling seasons for certain auto care products could have a material adverse effect.
- We may use artificial intelligence in our business, which could result in reputational harm, competitive harm, and legal liability, and adversely affect our operations.
- A failure of a key information technology system could adversely impact our ability to conduct business.
- We rely significantly on information technology and any inadequacy, interruption, theft or loss of data, malicious attack, integration failure, failure to maintain the security, confidentiality or privacy of sensitive data residing on our systems or other security failure of that technology could harm our ability to effectively operate our business and damage the reputation of our brands.
- We may not be able to attract, retain and develop key employees, as well as effectively manage human capital resources.
- We have significant debt obligations that could adversely affect our business.
- Our credit ratings are important to our cost of capital.
- We may experience losses or be subject to increased funding and expenses related to our pension plans.
- The estimates and assumptions on which our financial projections are based may prove to be inaccurate, which may cause our actual results to materially differ from our projections, which may adversely affect our future profitability, cash flows and stock price.
- If we pursue strategic acquisitions, divestitures or joint ventures, we might experience operating difficulties, dilution, and other consequences that may harm our business, financial condition, and operating results, and we may not be able to successfully consummate favorable transactions or successfully integrate acquired businesses.
- Our business involves the potential for product liability claims, labeling claims, commercial claims and other legal claims against us, which could affect our results of operations and financial condition and result in product recalls or withdrawals.
- Our business is subject to increasing government regulations in both the U.S. and abroad that could impose material costs.
- Section 45X of the Internal Revenue Code contains production tax credits for certain battery components. Our ability to benefit from Section 45X production tax credits is not guaranteed and is dependent upon the federal government's ongoing implementation, guidance, regulations, or rulemakings.
- Increased focus by governmental and non-governmental organizations, customers, consumers and shareholders on sustainability issues, including those related to climate change, may have an adverse effect on our business, financial condition and results of operations and damage our reputation.
- We are subject to environmental laws and regulations that may expose us to significant liabilities and have a material adverse effect on our results of operations and financial condition.
- We are subject to uncertainties regarding the IEEPA tariff refunds, including the timing of these refunds.
In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of any such forward-looking statements. The list of factors above is illustrative, but by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Additional risks and uncertainties include those detailed from time to time in our publicly filed documents, including those described under the heading "Risk Factors" in our Form 10-K filed with the Securities and Exchange Commission on November 18, 2025.
ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Condensed)
(In millions, except per share data - Unaudited)
For the Quarters Ended March For the Six Months Ended
31, March 31,
2026 2025 2026 2025
Net sales $643.3 $662.9 $1,422.2 $1,394.6
Cost of products sold (1) (2) 384.5 403.9 906.8 866.0
Gross profit 258.8 259.0 515.4 528.6
Selling, general and administrative expense (1) 133.1 136.0 282.4 267.3
Advertising and sales promotion expense 19.0 20.8 68.2 74.2
Research and development expense 7.6 8.1 15.4 16.1
Amortization of intangible assets 12.5 14.7 26.5 29.4
Interest expense 39.3 38.0 78.4 75.0
Loss on extinguishment/modification of debt - 5.2 0.9 5.3
Other items, net (3) 25.6 (0.2) 26.7 (5.2)
Earnings before income taxes 21.7 36.4 16.9 66.5
Income tax provision 11.6 8.1 10.2 15.9
Net earnings $10.1 $28.3 6.7 50.6
Basic net earnings per common share $0.15 $0.39 $0.10 $0.70
Diluted net earnings per common share $0.15 $0.39 $0.10 $0.69
Weighted average shares of common stock - Basic 68.5 72.2 68.5 72.1
Weighted average shares of common stock - Diluted 69.1 73.3 69.2 73.3
(1) See the attached Supplemental Schedules - Non-GAAP Reconciliations, which break out the Restructuring and related costs, Network transition costs and Acquisition and integration costs included within these lines.
(2) During the quarter and six months ended March 31, 2026, the Company recorded a benefit to cost of goods sold of $47.6 million for the estimated refund of the tariffs previously paid under IEEPA associated with sold inventory.
(3) During the quarter and six months ended March 31, 2026, the Company recorded a non-cash settlement loss on the termination of the U.K. Pension plan of $26.1 within Other items, net.
ENERGIZER HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Condensed)
(In millions - Unaudited)
Assets March 31, September 30,
2026 2025
Current assets
Cash and cash equivalents $172.5 $236.2
Trade receivables 309.6 404.2
Inventories 743.6 781.2
Other current assets 273.8 257.5
Total current assets $1,499.5 $1,679.1
Property, plant and equipment, net 392.8 403.0
Operating lease assets 85.8 93.2
Goodwill 1,048.1 1,051.2
Other intangible assets, net 979.3 1,005.5
Deferred tax assets 166.3 166.6
Other assets 227.3 158.1
Total assets $4,399.1 $4,556.7
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt $8.6 $8.6
Current portion of finance leases 1.6 1.5
Notes payable 0.5 13.7
Accounts payable 393.4 402.2
Current operating lease liabilities 12.2 16.2
Other current liabilities 315.7 352.8
Total current liabilities $732.0 $795.0
Long-term debt 3,304.6 3,407.9
Operating lease liabilities 79.1 84.8
Deferred tax liabilities 9.6 6.1
Other liabilities 100.6 93.0
Total liabilities $4,225.9 $4,386.8
Shareholders' equity
Common stock 0.8 0.8
Additional paid-in capital 594.4 603.5
Retained earnings 47.9 87.0
Treasury stock (280.2) (295.8)
Accumulated other comprehensive loss (189.7) (225.6)
Total shareholders' equity $173.2 $169.9
Total liabilities and shareholders' equity $4,399.1 $4,556.7
ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Condensed)
(In millions - Unaudited)
For the Six Months Ended
March 31,
2026 2025
Cash Flow from Operating Activities
Net earnings $6.7 $50.6
Non-cash integration and restructuring charges 24.4 5.2
Depreciation and amortization 62.7 62.7
Production credits 22.8
IEEPA tariff refund receivable (49.9)
Deferred income taxes 3.6 2.6
Share-based compensation expense 16.0 13.4
Settlement loss on U.K. pension plan termination 26.1
Loss on extinguishment of debt 0.9 1.1
Exchange loss/(gain) included in income 3.1 (3.4)
Non-cash items included in income, net 5.7 5.7
Other, net (15.3) (8.0)
Changes in current assets and liabilities used in operations 41.0 (65.7)
Net cash from operating activities $147.8 $64.2
Cash Flow from Investing Activities
Capital expenditures (43.0) (55.6)
Proceeds from sale of assets 1.1
Acquisitions, net of cash acquired - (0.1)
Net cash used by investing activities $(41.9) $(55.7)
Cash Flow from Financing Activities
Cash proceeds from issuance of debt with original maturities greater than 90 days (1) - 198.2
Payments on debt with maturities greater than 90 days (1) (95.0) (220.7)
Net (decrease)/increase in debt with original maturities of 90 days or less (14.5) 0.4
Debt issuance costs (1.5) (6.3)
Payment of acquisition indemnification hold back (0.7) (0.5)
Common stock purchased (inclusive of excise tax of $0.9) (5.4)
Dividends paid on common stock (43.9) (45.3)
Taxes paid for withheld share-based payments (8.0) (7.5)
Net cash used by financing activities $(169.0) $(81.7)
Effect of exchange rate changes on cash $(0.6) $(4.4)
Net decrease in cash, cash equivalents, and restricted cash $(63.7) $(77.6)
Cash, cash equivalents, and restricted cash, beginning of period 236.2 216.9
Cash, cash equivalents, and restricted cash, end of period $172.5 $139.3
(1) Represents cash inflows and outflows due to changes in term loan lender composition in the six months ended March 31, 2025.
ENERGIZER HOLDINGS, INC.
Reconciliation of GAAP and Non-GAAP Measures
For the Quarter and Six months ended March 31, 2026
The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). However, management believes that certain non-GAAP financial measures provide users with additional meaningful comparisons to the corresponding historical or future period, and are used for management incentive compensation. These non-GAAP financial measures exclude items that are not reflective of the Company's on-going operating performance, such as restructuring and related costs, network transition costs, acquisition and integration costs, a litigation matter, FY23 & FY24 production credits, impairment of intangible assets, the settlement loss on the U.K. pension plan termination and the loss on extinguishment/modification of debt. In addition, these measures help investors to analyze year over year comparability when excluding currency fluctuations as well as other Company initiatives that are not on-going. We believe these non-GAAP financial measures are an enhancement to assist investors in understanding our business and in performing analysis consistent with financial models developed by research analysts. Investors should consider non-GAAP measures in addition to, not as a substitute for, or superior to, the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in methods and in the items being adjusted.
We provide the following non-GAAP measures and calculations, as well as the corresponding reconciliation to the closest GAAP measure in the following supplemental schedules:
Segment Profit. This amount represents the operations of our two reportable segments including allocations for shared support functions. General corporate and other expenses, amortization expense, interest expense, loss on extinguishment/modification of debt, other items, net, restructuring and related costs, network transition costs and acquisition and integration costs have all been excluded from segment profit.
Adjusted Net Earnings and Adjusted Diluted Net Earnings per Common Share (EPS). These measures exclude the impact of restructuring and related costs, network transition costs, costs related to acquisition and integration, the settlement loss on the U.K. pension plan termination and the loss on extinguishment/modification of debt.
Non-GAAP Tax Rate. This is the tax rate when excluding the pre-tax impact of restructuring and related costs, network transition costs, costs related to acquisition and integration, the settlement loss on the U.K. pension plan termination and the loss on extinguishment/modification of debt, as well as the related tax impact for these items, calculated utilizing the statutory rate for the jurisdictions where the impact was incurred.
Organic. This is the non-GAAP financial measurement of the change in Net sales or Segment profit that excludes or otherwise adjusts for the Acquisition impact, the Change in highly inflationary markets and impact of currency from the changes in foreign currency exchange rates as defined below:
Acquisition Impact. The Company completed the APS acquisition on May 2, 2025. These adjustments include the impact of the operations associated with the acquired branded battery business. The Company transitioned from these branded businesses to legacy brands by December 31, 2025. This does not include the impact of acquisition and integration costs associated with this acquisition.
Change in highly inflationary markets. The Company is presenting separately all changes in sales and segment profit from our Egypt and Argentina affiliates due to the designation of the economies as highly inflationary as of October 1, 2024 and July 1, 2018, respectively.
Impact of currency. The Company evaluates the operating performance of our Company on a currency neutral basis. The Impact of Currency is the change in foreign currency exchange rates year-over-year on reported results, which is calculated by comparing the value of current year foreign operations at the current period USD exchange rate versus the value of current year foreign operations at the prior period USD exchange rate. The impact of currency also includes (gains)/losses of currency hedging programs, and it excludes highly inflationary markets.
Adjusted Comparisons. Detail for Adjusted Gross profit, Adjusted Gross margin, adjusted SG&A, adjusted SG&A as percent of Net sales and Adjusted Other Items, net are also supplemental non-GAAP measure disclosures. These measures exclude the impact of restructuring and related costs, network transition costs, acquisition and integration costs and the settlement loss on the U.K. pension plan termination.
EBITDA and Adjusted EBITDA. EBITDA is defined as (loss)/earnings before Income tax provision, Interest expense, the Loss on extinguishment/modification of debt, and depreciation and amortization. Adjusted EBITDA further excludes the impact of the costs related to restructuring, network transition costs, acquisition and integration costs, the settlement loss on the U.K. pension plan termination, a litigation matter, FY23 & FY24 production credits, impairment of intangible assets, and share based payments.
Free Cash Flow. Free Cash Flow is defined as net cash provided by operating activities reduced by capital expenditures, net of the proceeds from asset sales.
Net Debt. Net Debt is defined as total Company debt, less Cash and cash equivalents.
Currency-neutral. Currency-neutral excludes the Impact of currency as defined above on key measures. Highly inflationary markets are excluded from this calculation.
Operations for Energizer are managed via two product segments: Batteries & Lights and Auto Care. Energizer's operating model includes a combination of standalone and shared business functions between the product segments, varying by country and region of the world. Shared functions include the sales and marketing functions, as well as human resources, IT and finance shared service costs. Energizer applies a fully allocated cost basis, in which shared business functions are allocated between segments. Such allocations are estimates, and may not represent the costs of such services if performed on a standalone basis. Segment sales, significant expenses and profitability for the quarters and six months ended March 31, 2026 and 2025 are presented below:
Quarters Ended March 31,
Batteries & Lights Auto Care Total
2026 2025 2026 2025 2026 2025
Segment Net sales $473.2 $488.0 $170.1 $174.9 $643.3 $662.9
Segment Cost of products sold 248.1 284.3 109.3 108.2 357.4 392.5
Segment Advertising and promotion expense 12.2 14.3 6.8 6.5 19.0 20.8
Other segment items 79.2 77.1 25.4 25.0 104.6 102.1
Segment profit $133.7 $112.3 $28.6 $35.2 $162.3 $147.5
Segment Depreciation and amortization $15.0 $12.6 $3.6 $3.6 $18.6 $16.2
Six Months Ended March 31,
Batteries & Lights Auto Care Total
2026 2025 2026 2025 2026 2025
Segment Net sales $1,158.4 $1,120.4 $263.8 $274.2 $1,422.2 $1,394.6
Segment Cost of products sold 689.9 664.5 174.5 166.7 864.4 831.2
Segment Advertising and promotion expense 55.8 61.7 12.4 12.5 68.2 74.2
Other segment items 173.3 162.6 39.2 39.3 212.5 201.9
Segment profit $239.4 $231.6 $37.7 $55.7 $277.1 $287.3
Segment Depreciation and amortization $29.7 $26.9 $6.5 $6.4 $36.2 $33.3
Reconciliation of Total segment profit to earnings before
income taxes:
Quarters Ended March 31, Six Months Ended March 31,
2026 2025 2026 2025
Total segment profit $162.3 $147.5 $277.1 $287.3
General corporate & other expenses (1) (30.1) (30.5) (63.2) (57.9)
Restructuring and related costs (2) (31.5) (17.6) (62.4) (37.9)
Network transition costs (3) - (2.7) (16.7)
Acquisition and integration costs (2) (1.6) (2.3) (2.1) (3.5)
Amortization of intangible assets (12.5) (14.7) (26.5) (29.4)
Interest expense (39.3) (38.0) (78.4) (75.0)
Loss on extinguishment/modification of debt - (5.2) (0.9) (5.3)
Settlement loss on U.K. pension plan termination (4) (26.1) (26.1)
Other items, net - Adjusted (5) 0.5 (0.1) (0.6) 4.9
Total earnings before income taxes $21.7 $36.4 $16.9 $66.5
(1) Recorded in SG&A on the Consolidated (Condensed) Statement of Earnings.
(2) See the Supplemental Schedules - Non-GAAP Reconciliations for the line items where these charges are recorded in the Consolidated (Condensed) Statement of Earnings.
(3) This represents incremental network transition costs, primarily related to freight and third-party packaging support, to maintain business continuity and service our customers as the Company decommissions certain facilities and relocates production and packaging lines as part of Project Momentum. These costs
were recorded in Cost of products sold on the Consolidated (Condensed) Statement of Earnings.
(4) During the quarter ended March 31, 2026, the Company terminated the U.K. pension plan and recorded a non-cash settlement loss on the termination of the plan within Other items, Net.
(5) See the Supplemental Non-GAAP reconciliation for the Other items, net reconciliation between the reported and adjusted balances.
Energizer Holdings, Inc.
Supplemental Schedules - GAAP EPS to Adjusted EPS Reconciliation
For the Quarter and Six months ended March 31, 2026
(In millions, except per share data - Unaudited)
For the Quarters Ended For the Six Months Ended
March 31, March 31,
2026 2025 2026 2025
Net earnings $10.1 $28.3 $6.7 $50.6
Pre-tax adjustments
---
Restructuring and related costs (1) 31.5 17.6 62.4 37.9
Network transition costs (1) - 2.7 16.7
Acquisition and integration (1) 1.6 2.3 2.1 3.5
Loss on extinguishment/modification of debt - 5.2 0.9 5.3
Settlement loss on U. K. pension plan termination (1) 26.1 26.1
Total adjustments, pre-tax $59.2 $27.8 $91.5 $63.4
Total adjustments, after tax (2) $55.0 $21.1 $79.7 $48.2
Adjusted Net earnings (2) $65.1 $49.4 $86.4 $98.8
Diluted net earnings per common share $0.15 $0.39 $0.10 $0.69
Adjustments (per common share)
---
Restructuring and related costs 0.39 0.18 0.73 0.39
Network transition costs - 0.03 0.18
Acquisition and integration 0.02 0.02 0.03 0.04
Loss on extinguishment/modification of debt - 0.05 0.01 0.05
Settlement loss on U. K. pension plan termination 0.38 0.38
Adjusted Diluted net earnings per diluted common share $0.94 $0.67 $1.25 $1.35
Weighted average shares of common stock - Diluted 69.1 73.3 69.2 73.3
(1) See Supplemental Schedules - Non-GAAP Reconciliations for the line items where these costs are recorded on the Consolidated (Condensed) Statement of Earnings.
(2) The effective tax rate for the Adjusted Net earnings and Adjusted Diluted EPS for the quarters ended March 31, 2026 and 2025 was 19.5% and 23.1%, respectively, and for the six months ended March 31, 2026 and 2025 was 20.3% and 23.9%, respectively, as calculated utilizing the statutory rate for where the costs
were incurred.
Energizer Holdings, Inc.
Supplemental Schedules - Currency Neutral Results
For the Quarter and Six months ended March 31, 2026
(In millions, except per share data - Unaudited)
For the Quarter Ended Prior
Quarter
Ended
March 31, 2026 % Change % Change
As Impact of Currency March 31, As Currency
Reported Currency
(1) Neutral 2025 Reported Neutral
Basis Basis
As Reported under GAAP
Diluted net earnings per common share $0.15 $0.05 $0.10 $0.39 (61.5) % (74.4) %
Net earnings $10.1 $3.2 $6.9 $28.3 (64.3) % (75.6) %
As Adjusted (non-GAAP)
(2)
Adjusted diluted net earnings per common share $0.94 $0.05 $0.89 $0.67 40.3 % 32.8 %
Adjusted EBITDA $158.6 $3.9 $154.7 $140.3 13.0 % 10.3 %
For the Six Months Ended Prior Six
Months
Ended
March 31, 2026 % Change % Change
As Impact of Currency March 31, As Currency
Reported Currency
(1) Neutral 2025 Reported Neutral
Basis Basis
As Reported under GAAP
Diluted net earnings per common share $0.10 $0.10
$ - $0.69 (85.5) % NM(3)
Net earnings $6.7 $6.7
$ - $50.6 (86.8) % NM(3)
As Adjusted (non-GAAP)
(2)
Adjusted diluted net earnings per common share $1.25 $0.10 $1.15 $1.35 (7.4) % (14.8) %
Adjusted EBITDA $265.5 $8.4 $257.1 $281.0 (5.5) % (8.5) %
(1) The Impact of Currency is the change in foreign currency exchange rates year-over-year on reported results, which is calculated by comparing the value of current year foreign operations at the current period USD exchange rate versus the value of current year foreign operations at the prior period USD exchange
rate. The impact of currency also includes gains/(losses) of currency hedging programs, and it excludes highly inflationary markets.
(2) See supplemental schedules - Non-GAAP Reconciliations for full reconciliations of the Company's non-GAAP adjusted amounts.
(3) These percentages calculations are not meaningful.
Energizer Holdings, Inc.
Supplemental Schedules - Segment Sales and Profit
For the Quarter and Six Months Ended March 31, 2026
(In millions - Unaudited)
Net sales Q1'26 % Chg Q2'26 % Chg Six % Chg
Months
'26
Batteries & Lights
Net sales - prior year $632.4 $488.0 $1,120.4
Organic (24.3) (3.8) % (28.8) (5.9) % (53.1) (4.7) %
Acquisition impact 64.6 10.2 % 2.1 0.4 % 66.7 6.0 %
Change in highly inflationary markets 0.2 - % (1.0) (0.2) % (0.8) (0.1) %
Impact of currency 12.3 1.9 % 12.9 2.7 % 25.2 2.2 %
Net sales - current year $685.2 8.3 % $473.2 (3.0) % $1,158.4 3.4 %
Auto Care
Net sales - prior year $99.3 $174.9 $274.2
Organic (6.9) (6.9) % (7.8) (4.5) % (14.7) (5.4) %
Change in highly inflationary markets (0.1) (0.1) % (0.1) (0.1) % (0.2) (0.1) %
Impact of currency 1.4 1.4 % 3.1 1.9 % 4.5 1.7 %
Net sales - current year $93.7 (5.6) % $170.1 (2.7) % $263.8 (3.8) %
Total Net Sales
Net sales - prior year $731.7 $662.9 $1,394.6
Organic (31.2) (4.3) % (36.6) (5.5) % (67.8) (4.9) %
Acquisition impact 64.6 8.8 % 2.1 0.3 % 66.7 4.8 %
Change in highly inflationary markets 0.1 - % (1.1) (0.2) % (1.0) (0.1) %
Impact of currency 13.7 2.0 % 16.0 2.4 % 29.7 2.2 %
Net sales - current year $778.9 6.5 % $643.3 (3.0) % $1,422.2 2.0 %
Energizer Holdings, Inc.
Supplemental Schedules - Segment Sales and Profit
For the Quarter and Six Months Ended March 31, 2026
(In millions - Unaudited)
Segment profit Q1'26 % Chg Q2'26 % Chg Six % Chg
Months
'26
Batteries & Lights
Segment profit - prior year $119.3 $112.3 $231.6
Organic (23.0) (19.3) % 21.7 19.3 % (1.3) (0.6) %
Acquisition impact 5.3 4.4 % (2.1) (1.9) % 3.2 1.4 %
Change in highly inflationary markets (0.1) (0.1) % - % (0.1) - %
Impact of currency 4.2 3.6 % 1.8 1.7 % 6.0 2.6 %
Segment profit - current year $105.7 (11.4) % $133.7 19.1 % $239.4 3.4 %
Auto Care
Segment profit - prior year $20.5 $35.2 $55.7
Organic (12.1) (59.0) % (8.1) (23.0) % (20.2) (36.3) %
Change in highly inflationary markets (0.1) (0.5) % - % (0.1) (0.2) %
Impact of currency 0.8 3.9 % 1.5 4.2 % 2.3 4.2 %
Segment profit - current year $9.1 (55.6) % $28.6 (18.8) % $37.7 (32.3) %
Total Segment Profit
Segment profit - prior year $139.8 $147.5 $287.3
Organic (35.1) (25.1) % 13.6 9.2 % (21.5) (7.5) %
Acquisition impact 5.3 3.8 % (2.1) (1.4) % 3.2 1.1 %
Change in highly inflationary markets (0.2) (0.1) % - % (0.2) (0.1) %
Impact of currency 5.0 3.5 % 3.3 2.2 % 8.3 2.9 %
Segment profit - current year $114.8 (17.9) % $162.3 10.0 % $277.1 (3.6) %
Energizer Holdings, Inc.
Supplemental Schedules - Non-GAAP Reconciliations
For the Quarter and Six Months Ended March 31, 2026
(In millions - Unaudited)
Gross profit Q1'26 Q2'26 Q1'25 Q2'25 Q2'26 YTD Q2'25 YTD
--- ---
Net sales $778.9 $643.3 $731.7 $662.9 $1,422.2 $1,394.6
Reported Cost of products sold 522.3 384.5 462.1 403.9 906.8 866.0
Gross profit $256.6 $258.8 $269.6 $259.0 $515.4 $528.6
Gross margin 32.9 % 40.2 % 36.8 % 39.1 % 36.2 % 37.9 %
Adjustments
Restructuring and related costs 15.3 27.1 9.4 8.7 42.4 18.1
Network transition costs - 14.0 2.7 16.7
Cost of products sold - adjusted 507.0 357.4 438.7 392.5 864.4 831.2
Adjusted Gross profit $271.9 $285.9 $293.0 $270.4 $557.8 $563.4
Adjusted Gross margin 34.9 % 44.4 % 40.0 % 40.8 % 39.2 % 40.4 %
SG&A Q1'26 Q2'26 Q1'25 Q2'25 Q2'26 YTD Q2'25 YTD
--- ---
Reported SG&A $149.3 $133.1 $131.3 $136.0 $282.4 $267.3
Reported SG&A % of Net sales 19.2 % 20.7 % 17.9 % 20.5 % 19.9 % 19.2 %
Adjustments
Restructuring and related costs 15.6 4.4 10.9 9.2 20.0 20.1
Acquisition and integration costs 0.5 1.6 1.2 2.3 2.1 3.5
SG&A Adjusted - subtotal $133.2 $127.1 $119.2 $124.5 $260.3 $243.7
SG&A Adjusted % of Net sales 17.1 % 19.8 % 16.3 % 18.8 % 18.3 % 17.5 %
Other items, net Q1'26 Q2'26 Q1'25 Q2'25 Q2'26 YTD Q2'25 YTD
--- ---
Interest income $(0.7) $(2.5) $(1.2) $(0.6) $(3.2) $(1.8)
Foreign currency exchange loss/(gain) 1.3 1.8 (3.8) 0.4 3.1 (3.4)
Pension cost other than service costs and settlement loss 0.5 0.2 0.7
Other - 0.3 0.3
Other items, net - Adjusted $1.1 $(0.5) $(5.0) $0.1 $0.6 $(4.9)
Settlement loss on U.K. Pension plan termination - 26.1 26.1
Restructuring and related costs - (0.3) (0.3)
Total Other items, net $1.1 $25.6 $(5.0) $(0.2) $26.7 $(5.2)
Restructuring and related costs Q1'26 Q2'26 Q1'25 Q2'25 Q2'26 YTD Q2'25 YTD
--- ---
Cost of products sold - Restructuring $9.2 $22.1 $9.4 $8.7 $31.3 $18.1
Cost of products sold - U.S. operating efficiency project 6.1 5.0 11.1
SG&A - Restructuring costs 15.6 4.4 4.8 3.8 20.0 8.6
SG&A - IT Enablement - 6.1 5.4 11.5
Other items, net - (0.3) (0.3)
Total Restructuring and related costs $30.9 $31.5 $20.3 $17.6 $62.4 $37.9
Acquisition and integration Q1'26 Q2'26 Q1'25 Q2'25 Q2'26 YTD Q2'25 YTD
--- ---
SG&A 0.5 1.6 1.2 2.3 2.1 3.5
Total Acquisition and integration related items $0.5 $1.6 $1.2 $2.3 $2.1 $3.5
Energizer Holdings, Inc.
Supplemental Schedules - Non-GAAP Reconciliations cont.
For the Quarter Ended March 31, 2026
(In millions - Unaudited)
Q2'26 Q1'26 Q4'25 Q3'25 LTM Q2'25
3/31/26
(1)
Net earnings/(loss) $10.1 $(3.4) $34.9 $153.5 $195.1 $28.3
Income tax provision/(benefit) 11.6 (1.4) 18.5 10.7 39.4 8.1
Earnings/(loss) before income taxes 21.7 (4.8) 53.4 164.2 234.5 36.4
Interest expense 39.3 39.1 40.3 39.0 157.7 38.0
Loss on extinguishment/modification of debt - 0.9 6.8 7.7 5.2
Depreciation & Amortization 31.1 31.6 32.1 31.9 126.7 30.9
EBITDA $92.1 $66.8 $132.6 $235.1 $526.6 $110.5
Adjustments:
Restructuring and related costs 31.5 30.9 22.8 8.0 93.2 17.6
Network transition costs - 2.1 0.9 3.0 2.7
Acquisition and integration costs 1.6 0.5 1.4 1.3 4.8 2.3
Settlement loss on the U.K. pension plan termination 26.1 26.1
FY23 & FY24 production credits - 0.5 (78.5) (78.0)
Litigation matter - (1.7) (1.7)
Impairment of intangible assets - 5.9 5.9
Share-based payments 7.3 8.7 5.9 6.3 28.2 7.2
Adjusted EBITDA $158.6 $106.9 $171.2 $171.4 $608.1 $140.3
(1) LTM defined as the latest 12 months for the period ending March 31, 2026.
For the Six Months Ended March 31,
Free cash flow 2026 2025
Net cash from operating activities $147.8 $64.2
Capital expenditures (43.0) (55.6)
Proceeds from sale of assets 1.1
Free cash flow $105.9 $8.6
Net debt 3/31/2026 9/30/2025
Current maturities of long-term debt $8.6 $8.6
Current portion of finance leases 1.6 1.5
Notes payable 0.5 13.7
Long-term debt 3,304.6 3,407.9
Total debt per the balance sheet $3,315.3 $3,431.7
Cash and cash equivalents 172.5 236.2
Net debt $3,142.8 $3,195.5
Energizer Holdings, Inc.
Supplemental Schedules - Non-GAAP Reconciliations cont.
FY 2026 Outlook
(In millions - Unaudited)
Fiscal 2026 Outlook Reconciliation - Adjusted earnings and Adjusted net earnings per common share (EPS)
Fiscal Q3 2026 Outlook Fiscal Year 2026 Outlook
(in millions, except per share data) Adjusted net Adjusted EPS Adjusted net Adjusted EPS
earnings earnings
Fiscal 2026 - GAAP Outlook $39 to $49 $0.56 to $0.71 $126 to $164 $1.80 to $2.33
Impacts:
Restructuring and related costs 11 8 0.16 0.13 73 61 1.04 0.87
Acquisition and integration costs 2 1 0.03 0.01 4 2 0.06 0.02
Loss on extinguishment/modification of debt - 2 1 0.03 0.01
Settlement loss on pension plan termination - 26 26 0.37 0.37
Fiscal 2026 - Adjusted Outlook $52 to $58 $0.75 to $0.85 $231 to $254 $3.30 to $3.60
Fiscal 2026 Outlook Reconciliation - Adjusted EBITDA
(in millions, except per share data)
Net earnings $126 to $164
Income tax provision 6 to 46
Earnings before income taxes $132 to $210
Interest expense 160 150
Loss on extinguishment/modification of debt 2 1
Amortization 55 50
Depreciation 75 65
EBITDA $424 to $476
Adjustments:
Restructuring and related costs 95 80
Acquisition and integration costs 5 3
Settlement loss on pension plan termination 26 26
Share-based payments 30 25
Adjusted EBITDA $580 to $610
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SOURCE Energizer Holdings, Inc.
Company Contact: Jon Poldan, Vice President, Treasurer & Investor Relations, 314-985-2349, Jonathan.Poldan@energizer.com