EnerSys Announces Incremental Benefits From IRA Section 45X Tax Credits and Increases Adjusted Diluted Earnings Per Share Guidance By Investing.com

READING, Pa.–( BUSINESS WIRE )EnerSys (NYSE: NYSE: ), a global leader in stored energy solutions for industrial applications, today announced increased benefits associated with the Internal Revenue Code (IRC) Section 45X Advanced Manufacturing Credit, based on a recent release by the U.S. Department of the Treasury Based on the final regulations for certain direct material input costs and further review by EnerSys’ external advisors, the Company has refined its calculations to expand the value of its benefits for tax credits, including with its manufacturing related credits: from the active material of the electrode.

EnerSys estimates the incremental benefits to be approximately $3 million to $4 million for the quarter. Originally took advanced manufacturing credit under IRC 45X.

As a result of the incremental benefits, EnerSys is raising its fiscal 2025 third quarter and fiscal 2025 adjusted diluted earnings per share (EPS) guidance to include those benefits. The company previously provided third quarter adjusted diluted EPS guidance in the range of $2.20 to $2.30 and full-year adjusted diluted EPS guidance of $8.75 to $9.05. With the added benefit of Section 45X, EnerSys now expects third quarter fiscal 2025 adjusted diluted EPS of $3.00 to $3.10 and full year fiscal 2025 adjusted diluted EPS of $9.65 to $9.95.

Based on the final regulations, the Company expects to record an annual tax benefit as a reduction in cost of goods sold of approximately $135 million to $175 million, compared to a previously reported range of approximately $120 million to $160 million continue to receive tax credits related to its qualifying US production volumes until December 31, 2032.

The company expects to receive its first floor repayment under the 45X loans following the completion of fiscal 2024 tax filings, which is expected to positively impact cash flow through the end of fiscal 2025.

Section 45X was created by Section 13502 of the Inflation Reduction Act of 2022 (“IRA” or the “Act”) and was signed into law on August 16, 2022. cells and battery modules manufactured in the United States (US) of not less energy with a density of 100 watt-hours per liter. Credits are determined from January 1, 2023 to 2032 December 31, based on sales of qualified products in the US. Additional information on the final section 45X regulations can be found at https://www.federalregister.gov/documents/2024/ 10/28/2024-24840 -manufacturing-production-credit.

About EnerSys

EnerSys is a global leader in stored energy solutions for industrial applications, designing, manufacturing and distributing power system solutions and propulsion power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions worldwide enters the market in four business lines: Energy Systems, Motive Power, Specialty and New Ventures Energy systems that combine energy conversion, energy distribution, energy storage and enclosures, are used in telecommunications, broadband and utility industries, uninterruptible power supplies and many applications that require stored energy solutions.Motive power batteries and chargers are used in electric trucks and other industrial electric vehicles.Specialized batteries are used in aerospace and defense applications, mobile power solutions for soldiers in the field, large off-road trucks, premium automotive, medical and security systems applications. New Ventures provides energy storage and management systems for a variety of applications, including demand reduction, utility storage power, and dynamic electric vehicle charging. EnerSys also provides aftermarket and customer support services to its customers in more than 100 countries: Through its sales and manufacturing locations worldwide, visit https://www.enersys.com/en/ to learn more about EnerSys.

Cautionary Note Regarding Forward-Looking Statements

EnerSys is making this statement in order to satisfy the Safe Harbor provision contained in the Private Securities Litigation Reform Act of 1995 for refunds of credits and taxes payable to EnerSys on sales of qualifying products manufactured by EnerSys as defined under this Act; The Act, the expected duration of the Act and the payment of the Loans in future periods may include forward-looking statements that involve a number of risks and uncertainties may be based on expectations about future events and are subject to risks and uncertainties related to operations and the economic environment, all of which are difficult to predict; and many of which are beyond our control. For a discussion of such risks and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including but not limited to with our cautionary note.Regarding forward-looking statements and Item 1A.Risk factors as disclosed for the financial year ended March 31, 2024 in our annual report on Form 10-K for the year The statements in this press release are made as of the date of this press release, even if EnerSys makes them available on its website or otherwise; EnerSys undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

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Lisa Hartman
Vice President, Investor Relations and Corporate Communications
EnerSys
610-236-4040
Email investorrelations@enersys.com

Source: EnerSys