Energizer Holdings reported fourth‑quarter 2025 results on November 18, 2025, with net sales of $832.8 million, up 3.4% year‑over‑year, and an adjusted earnings‑per‑share of $1.05. The company beat revenue estimates by $1.77 million (0.21%) but missed adjusted EPS expectations by $0.07 (6.3%) as the adjusted EPS fell from $1.22 in Q4 2024 to $1.05 in Q4 2025.
The revenue beat was driven by steady demand in the Batteries & Lights segment, which offset a decline in the Auto Care segment that suffered from softer consumer demand in North America. Pricing actions and the “in‑region for‑region” manufacturing strategy helped maintain top‑line growth, while higher input costs and tariff pressures weighed on the overall mix.
Energizer’s adjusted EPS miss reflects a 370‑basis‑point contraction in adjusted gross margin, which fell to 38.5% from 38.1% in Q4 2024. The margin squeeze was caused by rising raw‑material costs, production inefficiencies, and increased warehousing and distribution expenses. The company’s Project Momentum initiative and $112.4 million in Advanced Manufacturing Production Credits provided some offset, but the credits are not guaranteed for future periods.
Management reaffirmed its fiscal‑2025 outlook, projecting net sales growth of 1% to 3%, adjusted EPS of $3.55 to $3.65, and adjusted EBITDA of $630 million to $640 million. For fiscal 2026, the company guided adjusted EPS of $3.30 to $3.60 and adjusted EBITDA of $580 million to $610 million, signaling a cautious view of the first quarter amid temporary tariff costs. CEO Mark LaVigne said the company “adjusted quickly, found opportunities, and executed with discipline to deliver a strong year” and noted that the first quarter of fiscal 2026 would be “more heavily affected by temporary tariff costs and mitigation efforts.”
Investors reacted negatively to the earnings miss and margin contraction, with the market citing the EPS shortfall and the cautious fiscal‑2026 guidance as primary concerns. The company’s debt‑reduction program, which has paid down nearly $500 million over the past two years, remains a key element of its long‑term financial strategy.
Energizer’s production credits and Project Momentum savings—$112.4 million and $12 million respectively—contributed to the adjusted gross margin, but management cautioned that future credit availability depends on federal policy changes. The company continues to focus on cost discipline and strategic investments to navigate the current cost‑inflation environment and softer consumer demand.
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