It has been about a month since the last earnings report for Energizer Holdings (ENR Quick QuoteENR - Free Report) . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Energizer due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Energizer Q3 Earnings & Sales Beat Estimates, Organic Sales Up Y/Y

Energizer Holdings reported impressive third-quarter fiscal 2025 results, wherein both net sales and earnings surpassed the Zacks Consensus Estimate. Also, both the top and bottom lines increased year over year. Organic sales improved year over year.

More on Energizer’s Q3 Results

Energizer’s adjusted earnings of $1.13 per share beat the Zacks Consensus Estimate of 61 cents. Also, the bottom line increased 43% from the year-ago quarter’s reported figure.

The company reported net sales of $725.3 million, which surpassed the Zacks Consensus Estimate of $702 million and increased 3.4% from the year-ago quarter’s reported number. Organic net sales saw a modest increase of 0.1% year over year. 

This organic net sales growth was primarily driven by 1.7% growth in volume, which was led by new and expanded distribution in the Battery & Lights category. This volume growth was partially offset by planned strategic pricing and promotional investments totaling 1.6%. In addition, the acquisition of Advanced Power Solutions NV (APS NV), completed on May 2, 2025, contributed $20.8 million to net sales.

Energizer's Q3 Sales Insights by Segments

Net sales of Energizer's Batteries & Lights segment increased 5.1% year over year to $535.1 million. We note that segmental profit increased 22.7% to $158.8 million. Meanwhile, net sales in the Auto Care segment decreased 1.1% to $190.2 million from the year-ago period. Segmental profit decreased sharply by 10.1% to $24.1 million.

Energizer’s Margin & Cost Details

In the fiscal third quarter, adjusted gross profit was $325.0 million, up 11.7% year over year. Energizer’s adjusted gross margin expanded 330 basis points to 44.8%. The improvement in adjusted gross margin was driven by an estimated $33.9 million in fiscal 2025 production credits and approximately $12 million in cost savings from Project Momentum during the quarter. These gains were partially offset by higher product costs, including increased freight and warehousing expenses, operational inefficiencies tied to ongoing network rebalancing, strategic pricing and promotional investments and a slightly lower margin from the APS NV acquisition. 

Adjusted SG&A expenses increased 4.4% year over year to $123.6 million. The year-over-year increase was primarily due to $4.5 million in SG&A costs from the APS NV acquisition, along with continued investment in digital transformation and growth initiatives, and higher legal expenses. These increases were partially offset by approximately $3 million in savings from Project Momentum during the quarter.

Adjusted SG&A costs, as a rate of net sales, were 17%, up slightly from 16.9% in the prior-year quarter. A&P expense increased $5.5 million in the fiscal third quarter, representing 6% of net sales compared with 5.4% in the year-ago period. The increase in spending was primarily attributed to investments supporting the launch of the Podium Series.

Adjusted EBITDA was $171.4 million, up 14.5% year over year, whereas the adjusted EBITDA margin increased 230 basis points to 23.6% from 21.3% in the prior-year quarter.

Energizer’s Financial Health Snapshot

As of June 30, 2025, Energizer’s cash and cash equivalents were $171.1 million, with long-term debt of $3.22 billion and shareholders' equity of $183.2 million. The operating cash flow as of the fiscal third quarter was $85.6 million and free cash flow was $16.5 million. During the third quarter, Energizer repurchased 2.8 million shares of common stock for $62.6 million, at an average price of $22.40 per share. Following the quarter’s end, the company repurchased an additional 1.2 million shares at $22.49 per share. Dividend payments during the quarter totaled approximately $21 million, or 30 cents per common share.

What to Expect From Energizer in Q4 & FY25?

For fiscal year 2025, Energizer now expects net sales growth in the range of 1% to 3%, which includes an estimated $40 to $50 million in revenues from the recently acquired APS NV business. Organic net sales are anticipated to be flat to up 2%.

The company has raised its full-year guidance for adjusted earnings per share to a range of $3.55 to $3.65. This compares with the prior estimate of $3.30 to $3.50. Adjusted EBITDA is now projected to be between $630 million and $640 million, inclusive of an estimated $40 to $45 million benefit from production credits, prior to reinvestment. The previous estimate of adjusted EBITDA was between $610 million and $630 million.

Looking ahead to the fourth quarter, reported net sales growth is expected to range between 2% and 4%, while organic net sales are projected to be flat to down 2%. The company expects fourth-quarter gross margin to be affected by approximately $20 million in transitory costs, including tariffs applied earlier or at higher-than-current rates, and short-term operational inefficiencies associated with ongoing strategic network realignment and investments. Adjusted earnings per share for the fourth quarter are expected to be in the range of $1.05 to $1.15, including an estimated benefit of $5 to $10 million from production credits, prior to reinvestment.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -21.04% due to these changes.

VGM Scores

Currently, Energizer has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Energizer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Energizer belongs to the Zacks Consumer Products - Staples industry. Another stock from the same industry, Newell Brands (NWL Quick QuoteNWL - Free Report) , has gained 14.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Newell Brands reported revenues of $1.94 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $0.24 for the same period compares with $0.36 a year ago.

For the current quarter, Newell Brands is expected to post earnings of $0.18 per share, indicating a change of +12.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.2% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Newell Brands. Also, the stock has a VGM Score of D.