Published on 27 May 2024 on Zacks via Yahoo Finance
EnerSys ENS has been witnessing solid momentum in its Motive Power segment, supported by strong orders for its products in electric industrial forklift trucks market. The segment’s revenues increased 3% year over year in the fourth quarter of fiscal 2024 (ended March 2024). The global megatrends including 5G expansion, rural broadband build-outs, electrification, automation and decarbonization are expected to support the company’s growth in the quarters ahead.EnerSys intends to strengthen and expand its businesses through buyouts. In April 2023, it acquired U.K.-based battery service and maintenance provider, Industrial Battery and Charger Services Limited (IBCS). The inclusion of IBCS enhanced its foothold in the U.K. market. Also, in May 2024, it inked a deal to acquire Bren-Tronics in an all-cash deal of $208 million. The acquisition should boost ENS’ position as a critical enabler of energy transition and support its growth in the growing military and defense end market.ENS remains committed to rewarding its shareholders through dividend payouts and share buybacks. For instance, it paid out dividends of $34.5 million and repurchased shares worth $95.7 million in fiscal 2024. Its quarterly dividend rate was hiked by 29% in August 2023.
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