Energizer’s first quarter results were received negatively by the market, as the company’s revenue came in below Wall Street’s expectations and management acknowledged several operational headwinds. Leadership attributed flat sales growth to strong battery performance offset by weaker results in its auto care segment, with CEO Mark LaVigne citing continued investments in distribution, digital commerce, and new product launches as critical supports. Notably, LaVigne highlighted that “recent shifts in consumer sentiment” led to a greater emphasis on value and caution in spending, particularly impacting discretionary categories.
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Energizer (ENR) Q1 CY2025 Highlights:
- Revenue: $662.9 million vs analyst estimates of $669.7 million (flat year on year, 1% miss)
- Adjusted EPS: $0.67 vs analyst estimates of $0.68 (in line)
- Adjusted EBITDA: $140.3 million vs analyst estimates of $137.5 million (21.2% margin, 2.1% beat)
- Revenue Guidance for Q2 CY2025 is $694.4 million at the midpoint, below analyst estimates of $713.9 million
- Management lowered its full-year Adjusted EPS guidance to $3.40 at the midpoint, a 4.2% decrease
- EBITDA guidance for the full year is $620 million at the midpoint, below analyst estimates of $632 million
- Operating Margin: 12%, down from 13.1% in the same quarter last year
- Organic Revenue rose 1.4% year on year (-2.7% in the same quarter last year)
- Market Capitalization: $1.44 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 Energizer’s Q1 Earnings Call
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Peter Grom (UBS) asked for clarification on the scale and timing of tariff mitigation. CEO Mark LaVigne and CFO John Drabik explained that most 2025 tariff impacts are neutralized through supply shifts and inventory, with further reductions expected over the coming year.
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Bill Chappell (Truist Securities) questioned whether higher device prices from tariffs would impact battery demand. Drabik acknowledged that increased device costs could dampen purchases and battery replenishment, and confirmed this risk is embedded in the updated outlook.
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Lauren Lieberman (Barclays) inquired about the potential for retailer destocking. LaVigne confirmed that slight inventory build-up at retailers is due to softer point-of-sale trends, and replenishment moderation has been incorporated into forecasts.
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Unidentified Analyst (Energizer) probed the competitive impact of tariffs on branded and private label batteries. LaVigne said that while main competitors face similar input headwinds, there may be opportunities for Energizer’s value brands to replace private label offerings at retailers.
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Andrea Teixeira (JPMorgan) asked about category trends and price mix. LaVigne reported flat pricing in batteries and noted that broader product offerings across brands and channels help meet shifting consumer preferences for value.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) evidence of successful tariff mitigation and further supply chain diversification, (2) indications of consumer demand stabilization or additional pullback in both battery and auto care categories, and (3) progress on integrating the European APS acquisition and transitioning from Panasonic to Energizer brands. The impact of any further macroeconomic volatility and the effectiveness of new product launches will also be key markers of execution.
Energizer currently trades at $20.31, down from $25.88 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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