Energizer plunges to record low as tariffs and weak demand hit earnings

Shares of small cap Energizer Holdings, the owner of the namesake battery brand, plunged yesterday, November 18, to their lowest level on record. Trump's tariffs are eroding profits, while consumer demand remains weak, the company said in its fiscal-fourth-quarter earnings release.

Energizer Holdings shares fell 18.5% to $19.44 per share on the New York Stock Exchange yesterday, marking the lowest close in the company’s public history.

The selloff followed the release of fourth-quarter results for fiscal 2025, covering the period ended September 30. Net sales rose 3.4% year over year to $832.8 million, driven by acquisitions. Organic sales, however, declined 2.2% as demand softened.

The adjusted gross margin fell 3.7 percentage points to 38.5%, pressured by higher production costs stemming from network inefficiencies and rising tariff costs, the company said. Trump announced tariff increases of several dozen percentage points for multiple countries in early April, and rates have been revised repeatedly since.

Quarterly net income dropped 26.7% to $34.9 million. Adjusted earnings fell 14% to $1.05 per share, missing the $1.12 per share Wall Street expected, MarketWatch reported.

“The macroenvironment continues to evolve,” CEO Mark LaVigne said on the earnings calls, according to MarketWatch. “Tariffs have increased our costs. Consumer demand softened late in the year, and supply chains required rapid rebalancing.” While the company has responded by realigning manufacturing to minimize the tariff impact and by raising prices to protect profitability, the steps taken “weren’t easy,” LaVigne added.

LaVigne believes fiscal 2026 will be a "a period of transition" for Energizer. The company expects organic net sales to remain flat or grow slightly in certain segments, and the gross margin to decline modestly.

Adjusted EPS is expected to be $3.30-3.60 per share, versus $3.52 per share in fiscal 2025. Adjusted EBITDA is projected at $580-610 million, versus $623.6 million last year.

In early trading today, November 19, Energizer shares rose 2.2%.

Wall Street remains cautious: according to MarketWatch data, the stock carries five “hold” ratings versus just one “buy.” Still, the average target price is $29.67 per share, implying nearly 53% upside from the November 18 close.

The AI translation of this story was reviewed by a human editor.