# EDGAR Filing Document

**Accession Number:** 0001289308
**File Stem:** 0001628280-26-036900
**Filing Date:** 2026-5
**Character Count:** 526857
**Document Hash:** 34e68fd004a21d664fa11ab1af690654
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-036900.hdr.sgml**: 20260520

**ACCESSION NUMBER**: 0001628280-26-036900

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 152

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260520

**DATE AS OF CHANGE**: 20260520

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EnerSys
- **CENTRAL INDEX KEY:** 0001289308
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 233058564
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32253
- **FILM NUMBER:** 261004266

**BUSINESS ADDRESS:**
- **STREET 1:** 2366 BERNVILLE ROAD
- **CITY:** READING
- **STATE:** PA
- **ZIP:** 19605
- **BUSINESS PHONE:** (610) 208-1600

**MAIL ADDRESS:**
- **STREET 1:** 2366 BERNVILLE ROAD
- **CITY:** READING
- **STATE:** PA
- **ZIP:** 19605

?xml version='1.0' encoding='ASCII'? ens-20260331

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-K** 

☒ **Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**for the fiscal year ended March 31, 2026 or**

☐ **Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Commission file number: 001-32253** 

**ENERSYS** 

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **23-3058564** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |

---

**2366 Bernville Road** 

**Reading, Pennsylvania 19605** 

**(Address of principal executive offices) (Zip Code)**

**Registrant's telephone number, including area code: 610-208-1991** 

**Securities registered pursuant to Section 12(b) of the Act:** 

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Stock, $0.01 par value per share | ENS | New York Stock Exchange |

---

**Securities registered pursuant to Section 12(g) of the Act: None**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.&nbsp;&nbsp;&nbsp;&nbsp;🗷 Yes&nbsp;&nbsp;&nbsp;&nbsp;◻ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.&nbsp;&nbsp;&nbsp;&nbsp;◻ Yes&nbsp;&nbsp;&nbsp;&nbsp;🗷 No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;🗷 Yes&nbsp;&nbsp;&nbsp;&nbsp;◻ No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes 🗷&nbsp;&nbsp;&nbsp;&nbsp;No ◻

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ (Do not check if a smaller reporting company) | Smaller reporting company | ☐ |
| Emerging growth company | ☐ | | |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C 7262(b)) by the registered public accounting firm that prepared or issued its audit report.&nbsp;&nbsp;&nbsp;&nbsp;☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐ Yes&nbsp;&nbsp;&nbsp;&nbsp;🗷 No

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes&nbsp;&nbsp;&nbsp;&nbsp;🗷 No

State the aggregate market value of the voting and non-voting common equity held by non-affiliates at **September 28, 2025**: $4,153,025,193 (1) (based upon its closing transaction price on the New York Stock Exchange on September 26, 2025).

&nbsp;&nbsp;&nbsp;&nbsp;(1)For this purpose only, "non-affiliates" excludes directors and executive officers.

**Common stock outstanding at May 15, 2026: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36,517,773 Shares of Common Stock**

**DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the registrant's definitive Proxy Statement for its Annual Meeting of Stockholders to be held on or about August 6, 2026 are incorporated by reference in Part III of this Annual Report.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

The Private Securities Litigation Reform Act of 1995 (the "Reform Act") provides a safe harbor for forward-looking statements made by or on behalf of EnerSys. EnerSys and its representatives may, from time to time, make written or verbal forward-looking statements, including statements contained in EnerSys' filings with the Securities and Exchange Commission ("SEC") and its reports to stockholders. Generally, the inclusion of the words "anticipate," "believe," "expect," "future," "intend," "estimate," "will," "plans," or the negative of such terms and similar expressions identify statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and that are intended to come within the safe harbor protection provided by those sections. All statements addressing operating performance, events, or developments that EnerSys expects or anticipates will occur in the future, including statements relating to sales growth, earnings or earnings per share growth, and market share, as well as statements expressing optimism or pessimism about future operating results, are forward-looking statements within the meaning of the Reform Act. The forward-looking statements are and will be based on management's then-current beliefs and assumptions regarding future events and operating performance and on information currently available to management, and are applicable only as of the dates of such statements.

Forward-looking statements involve risks, uncertainties and assumptions. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Actual results may differ materially from those expressed in these forward-looking statements due to a number of uncertainties and risks, including the risks described in this Annual Report on Form 10-K and other unforeseen risks. You should not put undue reliance on any forward-looking statements. These statements speak only as of the date of this Annual Report on Form 10-K, even if subsequently made available by us on our website or otherwise, and we undertake no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this Annual Report on Form 10-K.

Our actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons, including the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;• economic, financial and other impacts of the pandemic, including global supply chain disruptions;

&nbsp;&nbsp;&nbsp;&nbsp;• general cyclical patterns of the industries in which our customers operate;

&nbsp;&nbsp;&nbsp;&nbsp;• global economic trends, competition and geopolitical risks, including impacts from the ongoing conflict between Russia and Ukraine and the related sanctions and other measures, tensions across the Middle East, including the conflict with Iran, changes in the rates of investment or economic growth in key markets we serve, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, and related impacts on our global supply chains and strategies;

&nbsp;&nbsp;&nbsp;&nbsp;• the extent to which we cannot control our fixed and variable costs;

&nbsp;&nbsp;&nbsp;&nbsp;• the raw materials in our products may experience significant fluctuations in market price and availability;

&nbsp;&nbsp;&nbsp;&nbsp;• certain raw materials constitute hazardous materials that may give rise to costly environmental and safety claims;

&nbsp;&nbsp;&nbsp;&nbsp;• legislation, regulation, or policy regarding the restriction of the use of energy or certain hazardous substances in our products;

&nbsp;&nbsp;&nbsp;&nbsp;• risks involved in our operations such as supply chain issues, disruption of markets, changes in government priorities or budgets, including, but not limited to, guidance related to Section 45X of the Internal Revenue Code and implementation of grant awards by the U.S. Department of Energy, changes in import and export laws, changes in tariff rates, environmental regulations, currency restrictions and local currency exchange rate fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to raise our selling prices to our customers when our product costs increase;

&nbsp;&nbsp;&nbsp;&nbsp;• the extent to which we are able to efficiently utilize our global manufacturing facilities and optimize our capacity;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in macroeconomic and market conditions and market volatility, including inflation, interest rates, the value of securities and other financial assets, transportation costs, costs and availability of electronic components, lead, plastic resins, steel, copper and other commodities used by us, and the impact of such changes and volatility on our financial position and business;

&nbsp;&nbsp;&nbsp;&nbsp;• competitiveness of the battery markets and other energy solutions for industrial applications throughout the world;

&nbsp;&nbsp;&nbsp;&nbsp;• our timely development of competitive new products and product enhancements in a changing environment and the acceptance of such products and product enhancements by customers;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to adequately protect our proprietary intellectual property, technology and brand names;

&nbsp;&nbsp;&nbsp;&nbsp;• litigation and regulatory proceedings to which we might be subject;

&nbsp;&nbsp;&nbsp;&nbsp;• our expectations concerning indemnification obligations;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in our market share in the business segments where we operate;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to implement our cost reduction initiatives successfully and improve our profitability;

&nbsp;&nbsp;&nbsp;&nbsp;• quality problems associated with our products;

------

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to implement business strategies, including our acquisition strategy, manufacturing expansion and restructuring plans;

&nbsp;&nbsp;&nbsp;&nbsp;• our acquisition strategy may not be successful in identifying advantageous targets;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully integrate any assets, liabilities, customers, systems and management personnel we acquire into our operations and our ability to realize related revenue synergies, strategic gains, and cost savings may be significantly harder to achieve, if at all, or may take longer to achieve;

&nbsp;&nbsp;&nbsp;&nbsp;• our effective income tax rate with respect to any period may fluctuate based on the mix of income in the tax jurisdictions, in which we operate, changes in tax laws and the amount of our consolidated earnings before taxes;

&nbsp;&nbsp;&nbsp;&nbsp;• potential goodwill impairment charges, future impairment charges and fluctuations in the fair values of reporting units or of assets in the event projected financial results are not achieved within expected time frames;

&nbsp;&nbsp;&nbsp;&nbsp;• our debt and debt service requirements which may restrict our operational and financial flexibility, as well as imposing unfavorable interest and financing costs;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain our existing credit facilities or obtain satisfactory new credit facilities or other borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;• adverse changes in our short and long-term debt levels under our credit facilities;

&nbsp;&nbsp;&nbsp;&nbsp;• our exposure to fluctuations in interest rates on our variable-rate debt;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to attract and retain qualified management and personnel;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain good relations with labor unions;

&nbsp;&nbsp;&nbsp;&nbsp;• credit risk associated with our customers, including risk of insolvency and bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully recover in the event of a disaster affecting our infrastructure, supply chain, or our facilities;

&nbsp;&nbsp;&nbsp;&nbsp;• delays or cancellations in shipments;

&nbsp;&nbsp;&nbsp;&nbsp;• occurrence of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, pandemics, vaccine mandates, outbreaks of hostilities or terrorist acts, or the effects of climate change, and our ability to deal effectively with damages or disruptions caused by the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;• the operation, capacity and security of our information systems and infrastructure.

This list of factors that may affect future performance is illustrative, but by no means exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

------

**EnerSys**

**Annual Report on Form 10-K**

**For the Fiscal Year Ended March 31, 2026** 

**Index**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **<u>[PART I](#i8786429dbc604f208466f294ece24842_13)</u>** | **<u>[PART I](#i8786429dbc604f208466f294ece24842_13)</u>** | |
| <u>[Cautionary Note Regarding Forward-Looking Statements](#i8786429dbc604f208466f294ece24842_7)</u> | <u>[Cautionary Note Regarding Forward-Looking Statements](#i8786429dbc604f208466f294ece24842_7)</u> | <u>[3](#i8786429dbc604f208466f294ece24842_7)</u> |
| Item 1. | <u>[Business](#i8786429dbc604f208466f294ece24842_16)</u> | <u>[6](#i8786429dbc604f208466f294ece24842_16)</u> |
| Item 1A. | <u>[Risk Factors](#i8786429dbc604f208466f294ece24842_19)</u> | <u>[14](#i8786429dbc604f208466f294ece24842_19)</u> |
| Item 1B. | <u>[Unresolved Staff Comments](#i8786429dbc604f208466f294ece24842_22)</u> | <u>[27](#i8786429dbc604f208466f294ece24842_22)</u> |
| Item 1C. | <u>[Cybersecurity](#i8786429dbc604f208466f294ece24842_25)</u> | <u>[27](#i8786429dbc604f208466f294ece24842_25)</u> |
| Item 2. | <u>[Properties](#i8786429dbc604f208466f294ece24842_28)</u> | <u>[29](#i8786429dbc604f208466f294ece24842_28)</u> |
| Item 3. | <u>[Legal Proceedings](#i8786429dbc604f208466f294ece24842_31)</u> | <u>[29](#i8786429dbc604f208466f294ece24842_31)</u> |
| Item 4. | <u>[Mine Safety Disclosures](#i8786429dbc604f208466f294ece24842_34)</u> | <u>[29](#i8786429dbc604f208466f294ece24842_34)</u> |
| **<u>[PART II](#i8786429dbc604f208466f294ece24842_37)</u>** |  |  |
| Item 5. | <u>[Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#i8786429dbc604f208466f294ece24842_40)</u> | <u>[30](#i8786429dbc604f208466f294ece24842_40)</u> |
| Item 6. | <u>[Reserved](#i8786429dbc604f208466f294ece24842_43)</u> | <u>[32](#i8786429dbc604f208466f294ece24842_43)</u> |
| Item 7. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i8786429dbc604f208466f294ece24842_46)</u> | <u>[33](#i8786429dbc604f208466f294ece24842_46)</u> |
| Item 7A. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i8786429dbc604f208466f294ece24842_67)</u> | <u>[53](#i8786429dbc604f208466f294ece24842_67)</u> |
| Item 8. | <u>[Financial Statements and Supplementary Data](#i8786429dbc604f208466f294ece24842_70)</u> | <u>[56](#i8786429dbc604f208466f294ece24842_70)</u> |
| Item 9. | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i8786429dbc604f208466f294ece24842_181)</u> | <u>[114](#i8786429dbc604f208466f294ece24842_181)</u> |
| Item 9A. | <u>[Controls and Procedures](#i8786429dbc604f208466f294ece24842_184)</u> | <u>[114](#i8786429dbc604f208466f294ece24842_184)</u> |
| Item 9B. | <u>[Other Information](#i8786429dbc604f208466f294ece24842_187)</u> | <u>[114](#i8786429dbc604f208466f294ece24842_187)</u> |
| Item 9C. | <u>[Disclosure regarding foreign jurisdictions that prevent inspections](#i8786429dbc604f208466f294ece24842_190)</u> | <u>[114](#i8786429dbc604f208466f294ece24842_190)</u> |
| **<u>[PART III](#i8786429dbc604f208466f294ece24842_193)</u>** |  |  |
| Item 10. | <u>[Directors, Executive Officers and Corporate Governance](#i8786429dbc604f208466f294ece24842_196)</u> | <u>[115](#i8786429dbc604f208466f294ece24842_196)</u> |
| Item 11. | <u>[Executive Compensation](#i8786429dbc604f208466f294ece24842_199)</u> | <u>[115](#i8786429dbc604f208466f294ece24842_199)</u> |
| Item 12. | <u>[Security Ownership of Certain Beneficial Owners and Management Related Stockholder Matters](#i8786429dbc604f208466f294ece24842_202)</u> | <u>[115](#i8786429dbc604f208466f294ece24842_202)</u> |
| Item 13. | <u>[Certain Relationships and Related Transactions, and Director Independence](#i8786429dbc604f208466f294ece24842_205)</u> | <u>[115](#i8786429dbc604f208466f294ece24842_205)</u> |
| Item 14. | <u>[Principal Accounting Fees and Services](#i8786429dbc604f208466f294ece24842_208)</u> | <u>[116](#i8786429dbc604f208466f294ece24842_208)</u> |
| **<u>[PART IV](#i8786429dbc604f208466f294ece24842_211)</u>** |  |  |
| Item 15. | <u>[Exhibits, Financial Statement Schedules](#i8786429dbc604f208466f294ece24842_214)</u> | <u>[117](#i8786429dbc604f208466f294ece24842_214)</u> |
|  | <u>[Signatures](#i8786429dbc604f208466f294ece24842_217)</u> | <u>[121](#i8786429dbc604f208466f294ece24842_217)</u> |

---

------

<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**PART I** 

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| | |
|:---|:---|
| **ITEM 1.** | ***BUSINESS*** |

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**Overview**

EnerSys (the "Company," "we," or "us") is a world leader in stored energy solutions for industrial applications. We design, manufacture, and distribute energy systems solutions, and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, are used in the telecommunication, broadband, data center, and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive Power batteries and chargers are utilized in electric forklifts, automated guided vehicles ("AGVs"), and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, large over-the-road trucks, premium automotive, portable power solutions for soldiers in the field, medical and security systems applications. New Ventures provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. We also provide aftermarket and customer support services to over 10,000 customers in more than 100 countries through a network of distributors, independent representatives, and our internal sales force around the world.

The Company's chief operating decision maker, or CODM (the Company's Chief Executive Officer), reviews financial information for purposes of assessing business performance and allocating resources, by focusing on the lines of business on a global basis. The Company identifies the following as its four operating segments, based on lines of business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Energy Systems -** uninterruptible power systems, or "UPS" applications for computer and computer-controlled systems, as well as telecommunications systems, switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage and energy pipelines. Energy Systems also includes highly integrated power solutions and services to broadband, telecom, data center, and industrial customers, as well as thermally managed cabinets and enclosures for electronic equipment and batteries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Motive Power -** power for electric industrial forklifts, AGVs other material handling equipment used in manufacturing, and warehousing operations, as well as equipment used in floor care, mining, rail and airport ground support applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Specialty -** premium starting, lighting and ignition applications in transportation, energy solutions for satellites, spacecraft, commercial aircraft, military, aircraft, submarines, ships, other tactical vehicles, defense applications and portable power solutions for soldiers in the field, as well as medical devices and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **New Ventures** - energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles.

See Note 24 to the Consolidated Financial Statements for information on segment reporting.

**Fiscal Year Reporting**

In this Annual Report on Form 10-K, when we refer to our fiscal years, we state "fiscal" and the year, as in "fiscal 2026", which refers to our fiscal year ended March 31, 2026. The Company reports interim financial information for 13-week periods, except for the first quarter, which always begins on April 1, and the fourth quarter, which always ends on March 31. The four quarters in fiscal 2026 ended on June 29, 2025, September 28, 2025, December 28, 2025, and March 31, 2026, respectively. The four quarters in fiscal 2025 ended on June 30, 2024, September 29, 2024, December 29, 2024, and March 31, 2025, respectively.

**History**

EnerSys and its predecessor companies have been manufacturers of industrial batteries for over 125 years. Morgan Stanley Capital Partners teamed with the management of Yuasa, Inc. in late 2000 to acquire from Yuasa Corporation (Japan) its reserve power and motive power battery businesses in North and South America. We were incorporated in October 2000 for the purpose of completing the Yuasa, Inc. acquisition. On January 1, 2001, we changed our name from Yuasa, Inc. to EnerSys to reflect our focus on the energy systems nature of our businesses.

In 2004, EnerSys completed its initial public offering (the "IPO") and the Company's common stock commenced trading on the New York Stock Exchange, under the trading symbol "ENS".

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**Key Developments**

There have been several key stages in the development of our business, which explain to a significant degree our results of operations over the past several years.

In March 2002, we acquired the reserve power and motive power business of the Energy Storage Group of Invensys plc. ("ESGI"). Our successful integration of ESGI provided global scale in both the reserve and motive power markets. The ESGI acquisition also provided us with a further opportunity to reduce costs and improve operating efficiency.

Between fiscal years 2003 through 2026, we made thirty-seven acquisitions around the globe. There were no significant acquisitions in fiscal 2023 or 2024. On July 26, 2024, the Company completed the acquisition of all of the equity of Bren-Tronics Defense LLC for $206.4 million in cash consideration, as set forth in the stock purchase agreement. Bren-Tronics Defense LLC, headquartered in Commack, New York, is a leading manufacturer of highly reliable portable power solutions, including small and large format lithium batteries and charging solutions, for military and defense applications. The financial results contributed from this business are reported within our Specialty line of business.

**Our Customers**

We serve over 10,000 customers in over 100 countries, on a direct basis or through our distributors. We are not overly dependent on any particular end market. Our customer base is highly diverse, and no single customer accounts for more than 10% of our revenues.

Our Energy Systems customers consist of both global and regional customers. These customers are in diverse markets including telecommunication and broadband services, data centers, electric utilities, emergency lighting, renewable energy, and industrial utilities.

Our Motive Power products are sold to a large, diversified customer base. These customers include material handling equipment dealers, forklift and heavy truck original equipment manufacturers ("OEMs") and end users of such equipment. End users include manufacturers, distributors, warehouse operators, retailers, airports, mine operators and railroads.

Our Specialty products are utilized in transportation, primarily in premium automotive and large over-the-road trucking, aerospace and defense and medical markets. The products are sold globally to OEMs, distribution partners, vehicle fleets and directly to government entities such as the United States of America, Germany and the United Kingdom.

Our New Ventures energy storage and management systems are sold to customers who own or manage commercial real estate and own or manage retail operations. The systems are sold globally through our direct sales channel. We received our first system orders in fiscal year 2024 from our launch customer in Canada and other customers based in the United States.

**Distribution and Services**

We distribute, sell and service our products throughout the world, principally through company-owned sales and service facilities, as well as through independent manufacturers' representatives. Our company-owned network allows us to offer high-quality service, including preventative maintenance programs and customer support. Our warehouses and service locations enable us to respond quickly to customers in the markets we serve. We believe that the extensive industry experience of our sales organization results in strong long-term customer relationships.

**Manufacturing and Raw Materials**

We manufacture and assemble our products at manufacturing facilities located in the Americas, EMEA and Asia. With a view toward projected demand, we strive to optimize and balance capacity at our battery manufacturing facilities globally, while simultaneously minimizing our product cost. By taking a global view of our manufacturing requirements and capacity, we believe we are better able to anticipate potential capacity bottlenecks and equipment and capital funding needs.

The primary raw materials used to manufacture our products include lead, plastics, steel and copper. We purchase lead from a number of leading suppliers throughout the world. Because lead is traded on the world's commodity markets and its price fluctuates daily, we periodically enter into hedging arrangements for a portion of our projected requirements to reduce the volatility of our costs.

------

<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**Competition**

The industrial energy storage market is highly competitive both among competitors who manufacture and sell industrial energy storage solutions and batteries, energy management solutions, dynamic fast chargers for EVs, and among customers who purchase these solutions. Our competitors range from development stage companies to large domestic and international corporations. Certain of our competitors produce energy storage products utilizing technologies or chemistries different from our own. We compete primarily on the basis of reputation, product quality, reliability of service, delivery lead time and price. We believe that our products and services are competitively priced.

*Energy Systems*

We compete principally with East Penn Manufacturing, Exide Technologies (Stryten), Fiamm, SAFT, Hoppecke, New Power, C&D Technologies Inc., Vertiv, OmniOn Power,Yuasa, Amphenol, Delta Electronics, as well as Chinese producers.

*Motive Power*

Our primary global competitors in traditional lead-acid include East Penn Manufacturing, Exide Technologies (Stryten), Hoppecke, Eternity, Midac, Sunlight and TAB, as well as a number of domestic Chinese manufacturers.

Additionally, while lithium-ion battery technology in the motive power space has traditionally been relegated to smaller material handling applications, we have seen the entrance of a number of companies into larger battery types, acting as lithium cell packagers or integrators of cells sourced primarily from Asia. The integrators include forklift original equipment manufacturers either directly or through partnership with other entities.

*Specialty*

We compete globally within the transportation, aerospace and defense markets and specialized lithium technologies used in these critical applications. Our thin plate pure lead (TPPL) technology is a significant player in the applications using absorbed glass materials (AGM). Our major competitors in AGM technology are Clarios, East Penn Manufacturing, Exide Technologies (Stryten), Fiamm, C&D Technologies, Inc., Banner and Atlas. In the Aerospace and Defense specialized markets our main competitors are EaglePicher and SAFT.

*New Ventures*

We compete globally within the energy storage system and DC fast charging market with specialized lithium technologies offering solutions that combine energy management for commercial and retail buildings and dynamic fast charging for EVs. Our primary competitors are Jule, Tritium, and ABB.

**Warranties**

Warranties for our products vary by application and geographically and by product type and are competitive with other suppliers of these types of products. Generally, our Energy Systems product warranties range from one to twenty years, our Motive Power product warranties range from one to five years and from one to four years for Specialty transportation batteries. The length of our warranties is varied to reflect regional characteristics and competitive influences. In some cases, our warranty period may include a pro rata period, which is typically based around the design life of the product and the application served. Our warranties generally cover defects in workmanship and materials and are limited to specific usage parameters.

**Intellectual Property**

We have numerous patents and patent licenses in the United States and other jurisdictions but do not consider any one patent to be material to our business. From time to time, we apply for patents on new inventions and designs, but we believe that the growth of our business will depend primarily upon the quality of our products and our relationships with our customers, rather than the extent of our patent protection.

We believe we are the leader in TPPL technology. We believe that a significant capital investment would be required by any party desiring to produce products using TPPL technology for our markets.

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We own or possess exclusive and non-exclusive licenses and other rights to use a number of trademarks in various jurisdictions. We have obtained registrations for many of these trademarks in the United States and other jurisdictions. Our various trademark registrations currently have durations of approximately 10 to 20 years, varying by mark and jurisdiction of registration and may be renewable. We endeavor to keep all of our material registrations current. We believe that many such rights and licenses are important to our business by helping to develop strong brand-name recognition in the marketplace.

**Seasonality**

Our business generally does not experience significant quarterly fluctuations in net sales as a result of weather or other trends that can be directly linked to seasonality patterns, although transportation and power electronics can experience seasonality in colder months. Despite that, historically our fourth quarter is our best quarter with higher revenues and generally more working days while our second quarter is the weakest due to the summer holiday season in Western Europe and North America.

**Product and Process Development**

Our product and process development efforts are focused on the creation of new energy storage products, and integrated power systems and controls. We allocate our resources to the following key areas:

&nbsp;&nbsp;&nbsp;&nbsp;• the design and development of new products;

&nbsp;&nbsp;&nbsp;&nbsp;• optimizing and expanding our existing product offering;

&nbsp;&nbsp;&nbsp;&nbsp;• waste and scrap reduction;

&nbsp;&nbsp;&nbsp;&nbsp;• production efficiency and utilization;

&nbsp;&nbsp;&nbsp;&nbsp;• capacity expansion without additional facilities; and

&nbsp;&nbsp;&nbsp;&nbsp;• quality attribute maximization.

**Employees**

At March 31, 2026, we had approximately 9,682 employees. Of these employees, approximately 31% were covered by collective bargaining agreements. Employees covered by collective bargaining agreements that expire in the next twelve months were approximately 6% of the total workforce. The average term of these agreements is 1 year, with the longest term being 4 years. We consider our employee relations to be good. We did not experience any significant labor unrest or disruption of production during fiscal 2026.

**Information about Our Executive Officers**

As of May 20, 2026, our executive officers are:

Shawn M. O'Connell, age 53, *President and Chief Executive Officer.* Mr. O'Connell has served as our President and Chief Executive Officer since May 2025. Prior thereto, he served as President and Chief Operating Officer since November 2024. From November 2023 to November 2024, Mr. O'Connell served as our President, Energy Systems Global. Prior thereto, Mr. O'Connell served as President, Motive Power Global since July 2020. From April 2019 through July 2020, he served as our President, Motive Power, our Vice President – Reserve Power Sales and Service for the Americas from February 2017, and Vice President, EnerSys Advanced Systems from December 2015 to January 2017. Mr. O'Connell joined EnerSys in 2011, serving in various sales and marketing capacities in several areas of our business. Mr. O'Connell received his Master of Business Administration degree in International Business from the University of Redlands, CA and his Bachelor of Arts degree in English Literature from the California State University, San Bernardino. Mr. O'Connell is a veteran of the U.S. Army's 82nd Airborne Division (Paratroopers) where he served as a Signals Intelligence Analyst, Spanish Linguist, and held a Top-Secret security clearance.

Andrea J. Funk, age 56, *Executive Vice President and Chief Financial Officer*. Ms. Funk joined EnerSys in December 2018 and served as Vice President Finance, Americas. She was promoted to Executive Vice President & Chief Financial Officer effective April 1, 2022. Ms. Funk holds a Master of Business Administration degree from The Wharton School of Business, and a Bachelor of Science degree in accounting from Villanova University and was a certified public accountant. Previously, Ms. Funk served as Chief Financial Officer and then Chief Executive Officer of Cambridge Lee Industries LLC from 2010-2018. Prior, she served in positions of increasing responsibility at Carpenter Technology, Arrow International, Rhone-Poulenc Rorer, Bell Atlantic Corporation and Ernst & Young. Since July 2017, Ms. Funk has served on the Board of Directors of Crown Holdings Inc., whose shares are traded on the New York Stock Exchange, and is a member of their Audit and Compensation Committees.

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Chad C. Uplinger*,* age 54, *President Motive Power Global.* Mr. Uplinger has served as our President, Motive Power Global since November 2023. Prior to that, he served as Vice President, Motive Power, Americas since November 2017, General Manager of Motive Power Specialty Markets since April 2013, and District Manager in the Mid-Atlantic Region since April 2002. Mr. Uplinger began his career with EnerSys in 1999 and has held various roles in sales and marketing throughout the Motive Power business. Mr. Uplinger earned a Bachelor of Science in Marketing Management from PennWest California.

Mark E. Matthews, age 52, *Chief Technology Officer and President, Specialty Global.* Mr. Matthews has served as our President, Specialty Global since April 1, 2024. Prior thereto, he served as our Senior Vice President Specialty Global since July 2020 and as Vice President, EnerSys Advance Systems since January 2017, and Senior Director of Sales and Marketing from September 2016 to January 2017. Mr. Matthews has over 25 years of experience in energy storage and battery technology. He started his career as a lithium battery engineer and has worked various engineering, sales, and operational leadership roles within the battery industry before joining EnerSys in 2016. Mr. Matthews earned a Bachelor of Science Degree in Engineering Management with an emphasis in chemical engineering, from Missouri University of Science and Technology.

Keith D. Fisher, age 51, *President*, *Energy Systems Global.* Mr. Fisher has served as our President, Energy Systems Global since January 2025. Prior to joining EnerSys, he had a 27-year distinguished career at Honeywell, where he served in various roles throughout the organization, most recently as President of Honeywell Intelligrated from February 2022 through December 2024, President Honeywell Building Solutions from November 2021 through January 2022, Vice President & General Manager of Honeywell Building Technologies Global Services from May 2019 through October 2021, Vice President & General Manager of Honeywell Aerospace Mechanical Components Business from May 2014 through April 2019, and Vice President of Honeywell Aerospace Engine Component Customers from February 2011 through April 2014. Mr. Fisher received his Master of Business Administration degree in from Emory University, and his Bachelor of Science degree in Materials Science and Engineering from Lehigh University.

**Environmental Matters and Climate Change Impacts**

We are committed to the preservation of natural resources, protection of the environment, and training our employees to perform their duties accordingly. In the manufacture of our products throughout the world, we process, store, dispose of and otherwise use large amounts of hazardous materials, especially lead and acid. As a result, we are subject to extensive and evolving environmental, health and safety laws and regulations governing, among other things: the generation, handling, storage, use, transportation and disposal of hazardous materials; emissions or discharges of hazardous materials into the ground, air or water; and the health and safety of our employees. Compliance with these laws and regulations results in ongoing costs. Failure to comply with these laws and regulations, or to obtain or comply with required environmental permits, could result in fines, criminal charges or other sanctions by regulators. From time to time, we have had instances of alleged or actual noncompliance that have resulted in the imposition of fines, penalties and required corrective actions. Our ongoing compliance with environmental, health and safety laws, regulations and permits could require us to incur significant expenses, limit our ability to modify or expand our facilities or continue production and require us to install additional pollution control equipment and make other capital improvements. In addition, private parties, including current or former employees, can bring personal injury or other claims against us due to the presence of, or their exposure to, hazardous substances used, stored, transported or disposed of by us or contained in our products.

*Environmental and safety certifications* 

Twenty-six of our facilities in the Americas, EMEA and APAC are certified to ISO 14001. ISO 14001 is a globally recognized, voluntary program that focuses on the implementation, maintenance and continual improvement of an environmental management system and the improvement of environmental performance. Thirteen facilities in EMEA and APAC are certified to ISO 45001. The ISO 45001 is a globally recognized occupational health and safety management systems standard.

*Climate change impacts*

The potential impact of climate change on our operations is uncertain. The changing climate may result in new and erratic weather patterns, increases in the frequency or severity of storms, increased and decreased temperatures and rising sea levels. As discussed elsewhere in this Annual Report on Form 10-K, including in Item 1A. Risk Factors, our operating results are significantly influenced by weather, and major changes in historical weather patterns could have a notable impact on our future operating results. For example, if climate change results in drier weather and more accommodating temperatures over a significant period of time, we may be able to increase our productivity, which could positively impact our revenues and gross margins. Conversely, if climate change results in a greater amount of rainfall, snow, ice or other less accommodating weather conditions, we could experience reduced productivity, which could negatively impact our revenues and gross margins. Further, while an increase in severe weather events, such as hurricanes, tropical storms, blizzards and ice storms, can create a greater amount of emergency restoration service work (an area of potential revenue generation), it often also can result in delays or

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other negative consequences for our manufacturing operations, or challenges to the consistent delivery of materials from our supply chain or of our products to distributors, which could negatively impact our financial results. Climate change may also affect the conditions in which we operate, and in some cases, expose us to potentially increased liabilities associated with those environmental conditions. Concerns about climate change could also result in new regulations, regulatory actions or requirements to invest in energy efficiency, any of which could result in increased costs associated with our operations. We are aware of the various regulatory developments on climate (and other sustainability-related) disclosures from multiple jurisdictions, including the European Union's Corporate Sustainability Reporting Directive (CSRD). While we are following the progression of these rules, we are pleased to note that we are well prepared to meet their conditions at or before EnerSys would be required to do so. We have released comprehensive Sustainability Reports since 2022, which are aligned with GRI, SASB and most recently ISSB, standards. For FY25 we also published a comprehensive index aligned with CSRD standards Included in these reports, we announced key, measurable environmental, social, and governance goals and objectives aimed at advancing progress in sustainability, reducing our environmental footprint and creating an inclusive and empowering workplace for all employees. We also issued our third Task Force of Climate Related Financial Disclosures (TCFD) Report in May 2025. As part of our growing sustainability commitment, we announced during fiscal year 2022 that we joined the United Nations Global Compact, Alliance to Save Energy, the U.S. Department of Energy's Better Plants Program (through which we committed to reducing our energy intensity by 25% over the next 10 years (from a calendar year 2020 baseline)and the United Nations CEO Water Mandate. Since calendar 2023, we have submitted to the CDP. In 2025 this includes section on Climate Change, Water and Supply chain. We have conducted and published a climate risk analysis and have published our Scope 1, 2 and 3 emissions annually. We have set net-neutral goals for Scopes 1 (2040) and 2 (2050) and have marked consistent decreases in both overall carbon emissions as well as carbon intensity. In October, 2024, we published our Climate Action Plan Roadmap, detailing our plans to achieve our Scope 1 and 2 related climate goals. For fiscal year 2026, sustainability metrics were incorporated into the annual goals of our CEO and certain elements of employee compensation.

We strive to operate our facilities in a manner that protects the environment and the health and safety of our employees, customers and communities. We have established required sustainability training for identified employees and incorporate climate and other sustainability considerations into our formal decision-making processes. We have implemented company-wide environmental, health and safety policies and practices, which includes monitoring, training and communication of these policies.

**Quality Systems**

We utilize a global strategy for quality management systems, policies and procedures, the basis of which is ISO 9001:2015, a worldwide recognized quality standard. We believe in the principles of this standard and reinforce the same by requiring mandatory certification to the ISO 9001 standard for all manufacturing locations globally. We also focus on plant certifications that serve specific industries such as AS9100 (Aerospace), ISO 13485:2016 (Medical Devices), ISO/TS 22163:2017 (Rail), IATF 16949:2016 (Automotive) and ISO 19443 (Nuclear). We have also acquired our first Lithium-Ion product certification in accordance with ISO 26262 (Product Safety).

This strategy enables us to provide consistent quality products and services to meet our customers' needs.

**Human Capital Management** 

EnerSys believes that human capital management, including attracting, developing and retaining a high-quality workforce, is critical to our long-term success. We are committed to fostering a culture of innovation, collaboration and continuous learning, driving sustainable growth and long-term value creation for our shareholders, employees and stakeholders alike.

Creating a positive employee experience throughout the talent lifecycle is key to a highly stable and engaged workforce and a critical element in meeting strategic business goals. Our Board of Directors, through the Compensation Committee and the Nominating and Corporate Governance Committee, retains oversight of our human capital management process, including talent development, employee retention, material aspects of employee compensation, as well as our People Index as an indicator of cultural health. The Nominating and Corporate Governance Committee reports on human capital matters at each regularly scheduled Board of Directors meeting. The most significant human capital measures, objectives and initiatives include the following:

**Health, Safety, and Wellness:** Our fundamental responsibility as an employer is to provide a safe and healthy workplace for all our employees. This undertaking is explained further in our Safety and Health Policy. Our health and safety programs are designed around global standards with appropriate variations addressing the multiple jurisdictions and regulations, specific

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hazards and unique working environments of our manufacturing and production facilities, service centers and headquarter operations. Above all else, we are dedicated to the safety and well-being of our employees.

**Everywhere for Everyone:** We believe that success, in part, is built on a variety of perspectives and we are committed to fostering a workplace that values individual talent, supports professional growth and ensures ample opportunities for all employees. In both our recruiting and performance processes we measure talent on their merit in terms of knowledge, skills and experience and how well they reflect our company values. We do not tolerate discrimination or harassment of any nature. Individuals are evaluated based on merit, without concern for race, color, religion, national origin, citizenship, marital status, gender (including pregnancy), gender identity, gender expression, sexual orientation, age, disability, veteran status, or other characteristics protected by law. We are committed to providing equal opportunities to every member of our workforce. We cultivate our inclusive culture with robust business resource groups.

**Giving Back**: Through our Giving Back program, EnerSys is strongly committed to being an outstanding corporate citizen on a global basis in all the countries and communities where we do business. This commitment is reflected in a strong ethic for charitable contributions, endorsement of community activities, encouraging employees to give freely of their own time to serve on boards or committees for non-profit organizations and supporting educational programs in schools and colleges.

We established a Giving Back Committee to assist the Company in its philanthropic endeavors that support the communities in which we live and work. Additionally, we regularly sponsor volunteer events and fundraising campaigns, to encourage our employees to give back to our communities.

**People Development and Performance Management:** We are committed to developing a qualified and motivated workforce to power our continued innovation and growth. We provide opportunities for employees to gain the skills and knowledge they need to advance in the Company and fulfill their personal career goals.

We encourage continuous feedback between employees and managers, and employees receive formal development feedback from their manager through a quarterly 1:1 review meeting. These discussions encourage an open dialogue to identify and cultivate skills and opportunities and plan for career growth. We encourage and train our leaders to facilitate effective conversations and measure the effectiveness of these conversations by surveying our employees to monitor leadership effectiveness. In addition to training and development opportunities, all new employees are required to participate in trainings to introduce them to the EnerSys business, our strategy, culture and philosophies. We encourage all our employees to engage in mentoring, ongoing training, professional development and educational advancement programs. Through our established EnerSys Academy, we provide employees worldwide with resources to expand their skills and knowledge on a broad scope of relevant topics, to promote their growth and development.

**Compensation and Benefits**: To attract, retain and recognize talent, we aim to ensure merit-based compensation practices and strive to provide competitive compensation and benefit packages to our workforce. We provide employee wages that are consistent with employee positions, skill levels, experience, knowledge and geographic location. We align our executives' and eligible employees' annual bonus opportunity and long-term equity compensation with our stockholders' interests by linking realizable pay with company financial performance. In addition, we perform annual pay equity studies to evaluate our global pay practices across the organization and routinely audit pay practices globally to ensure compliance with local, state, municipality, country and/or federal law.

**Sustainability**

At EnerSys, we understand that an effective business strategy must also be one that evaluates and addresses environmental, social governance risk factors as well as opportunities to leverage sustainable operations and ethical behavior as a means of driving business value. To that end, we continue to integrate the fundamental values of sustainability into our everyday operations and future business strategies. Our Sustainability Team coordinates our environmental, social and governance efforts with respect to climate change management, product sustainability, operations, and supply chain management and corresponding sustainability-specific disclosures.

Sustainability, reliability and resilience are at the core of who we are and what we do at EnerSys every day. Our products help tackle some of our world's most significant challenges, be it efficient and affordable distribution of goods, grid reliability, telecommunications, medical safety or addressing the impacts of climate change and decarbonization. Our batteries and energy storage solutions are part of building a resilient, low-carbon future.

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Sustainability at EnerSys is, however, about more than just the benefits and impacts of our products. Our commitment encompasses essential environmental, social and governance issues fundamental to how we manage our own operations. Optimizing our natural resource management, minimizing our environmental footprint and providing a safe and inclusive workplace for our employees are top priorities for EnerSys. Being an excellent neighbor and good corporate citizen in the communities where we work and live is extremely important as well. Our products facilitate positive environmental, social and economic impacts around the world. We believe that the power systems and energy management sector have a key role to play in finding innovative solutions to address global climate change. Our Climate Change policy underscores our goal to carry out all business activities in a sustainable manner. Our Environmental Policy and practices aim to protect, conserve, and sustain the world's natural resources, as well as to protect our customers and the communities in which we live and operate. As one example of this, we offer a complete battery recycling program to assist our customers in preserving natural resources and comply with recycling and waste disposal regulations.

Relationships between EnerSys and our suppliers must be based on mutual respect and integrity. Our strategic sourcing, purchasing and quality teams strive to maintain the highest standards and principles of business ethics, courtesy and competence in dealings and transactions with suppliers. Our code of supplier conduct reflects our commitment to the values of honesty, integrity, respect, and responsibility. We expect our suppliers will share and embrace our values, as well as our commitment to regulatory compliance.

We have a sustainability steering committee, which includes members of senior management and maintain a dedicated team to further support the ongoing development of our sustainability program. Our Board of Directors oversees our programs related to matters of corporate responsibility and sustainability performance, including climate change, through the Nominating and Corporate Governance Committee. We publish an annual Sustainability Report, including environmental, social and governance data, as well as a Task Force on Climate Related Financial Disclosures report and submission to the CDP. We are members of United Nations Global Compact, Alliance to Save Energy, the U.S. Department of Energy's Better Plants Program (through which we committed to reducing our energy intensity by 25% over the next 10 years (from a calendar year 2020 baseline)), and the United Nations CEO Water Mandate. These actions demonstrate the strength and commitment to sustainability throughout the organization worldwide.

**Available Information**

We file annual, quarterly and current reports, proxy statements and other information with the SEC. These filings are available to the public on the Internet at the SEC's website at http*://www.sec.gov*.

Our Internet address is *http://www.enersys.com*. We make available free of charge on *http://www.enersys.com* our annual, quarterly and current reports, and amendments to those reports, as soon as reasonably practical after we electronically file such material with, or furnish it to, the SEC.

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| **ITEM 1A.** | ***RISK FACTORS*** |

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The following are certain risk factors that could materially and adversely affect our business, financial condition and our results of operations and could cause actual results to differ materially from our expectations and projections. Stockholders are cautioned that these and other factors, including those beyond our control, may affect future performance and cause actual results to differ from those which may, from time to time, be anticipated. The risks that are described below are not the only ones that we face. These risk factors should be considered in connection with the matters discussed herein under "Cautionary Note Regarding Forward-Looking Statements" and other information included and incorporated by reference in this Form 10-K as well as in other reports and materials that we file with the SEC. All forward-looking statements made by us or on our behalf are qualified by the risks described below. Although the risks are organized by headings and by category, many risks are interrelated. You should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.

**Business and Operating Risks**

*We operate in an extremely competitive industry and are subject to pricing pressures.* 

We compete with a number of major international manufacturers and distributors, as well as a large number of smaller, regional competitors. Due to excess capacity in some sectors of our industry and consolidation among industrial battery purchasers, we have been subjected to significant pricing pressures. We anticipate continued competitive pricing pressure as foreign producers are able to employ labor at significantly lower costs than producers in the U.S. and Western Europe, expand their export capacity and increase their marketing presence in our major Americas and European markets. Several of our competitors have strong technical, marketing, sales, manufacturing, distribution and other resources, as well as significant name recognition, established positions in the market and long-standing relationships with OEMs and other customers. In addition, certain of our competitors own lead smelting facilities which, during periods of lead cost increases or price volatility, may provide a competitive pricing advantage and reduce their exposure to volatile raw material costs. Our ability to maintain and improve our operating margins depends on our ability to control and reduce our costs in addition to our ability to maintain business relationships with customers. If we are unable to offset pricing pressures, our profitability and cash flows could be adversely affected. We cannot assure you that we will be able to continue to control our operating expenses, to raise or maintain our prices or increase our unit volume, in order to maintain or improve our operating results.

*Reliance on third party relationships and derivative agreements could adversely affect our business.*

We depend on third parties, including suppliers, distributors, lead toll operators, freight forwarders, insurance brokers, commodity brokers, major financial institutions and other third party service providers, for key aspects of our business, including the provision of derivative contracts to manage risks of commodity cost volatility, foreign currency exposures and interest rate volatility. Failure of these third parties to meet their contractual, regulatory and other obligations to us, or the development of factors that materially disrupt our relationships with these third parties, could expose us to the risks of business disruption, higher commodity and interest costs, unfavorable foreign currency rates and higher expenses, which could have a material adverse effect on our business.

*We may experience issues with lithium-ion cells or other components manufactured at our proposed gigafactory, which may harm the production and profitability of our energy storage products.*

Our plan to grow the volume and profitability of our energy storage products depends on significant lithium-ion battery cell production, including by our partner Verkor SAS at a proposed gigafactory in South Carolina. If we are unable to commence, or, when opened, otherwise do not maintain and grow, our respective operations, if we cannot execute our strategy, or if we are unable to do so cost-effectively or hire and retain highly-skilled personnel there, our ability to manufacture our products profitably would be limited, which may harm our business and operating results. Additionally, the start-up of operations after such project has been completed is also subject to risk. In addition, in order to complete the construction of the proposed gigafactory, we are relying upon, among other things, short-term and long-term incentive packages through South Carolina and Greenville County, federal funding and benefits under Section 45X of the Internal Revenue Code. Our ability to realize and procure these benefits is subject to a variety of market, operational, regulatory and labor-related factors. Any failure to complete these projects, or any delays or failure to achieve the anticipated results from the implementation of this project, could have a material adverse effect on our business, financial condition, results of operations and liquidity.

*Our $199 million funding from the U.S. Department of Energy ("DOE") is subject to review and will be subject to negotiation of specific terms and contingent on our compliance with the requirements negotiated with the DOE.*

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In January 2025, we entered into an agreement with the DOE's Office of Manufacturing and Energy Supply Chains for a $199 million award to support the construction of a new lithium-ion cell production facility in Greenville, South Carolina. Since that time, the issuance of certain executive orders, including the Unleashing American Energy Executive Order on January 20, 2025, has required an immediate pause in the disbursement of funds appropriated through the IRA pending an ongoing review. We are currently evaluating these executive orders and other related memoranda to determine what, if any, impact they might have on or our previously announced DOE funding. If the DOE proceeds with our funding as planned, such funding will additionally remain subject to certain compliance obligations and other terms and conditions.

*Cost increases, supply disruptions or shortages of any of our battery components, such as electronic and mechanical parts, or the raw materials used in the production of such parts could adversely affect our business.*

From time to time, we may experience increases in the cost or a sustained interruption in the supply or shortage of our components. For example, a global shortage and component supply disruptions of electronic and other battery components is currently being reported, and the full impact to us is not yet known. Additionally, the U.S. government has recently imposed, and is currently considering imposing, tariffs on certain trade partners. Other shortages and component supply disruptions could affect the supply of electronic components and raw materials (such as resins and other raw metal materials) that go into the production of our products. Cost increases or supply interruptions could materially and negatively impact our business, prospects, financial condition and operating results. The prices for our components fluctuate depending on market conditions and global demand and could adversely affect our business, prospects, financial condition and operating results. For instance, we are exposed to multiple risks relating to price fluctuations for battery cells. These risks include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• supply shortages caused by the inability or unwillingness of our suppliers and their competitors to build or operate component production facilities to supply the numbers of battery components required to support the rapid growth of the electric vehicle industry and other industries in which we operate as demand for such components increases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in import and export laws, including, but not limited to, sanctions, tariffs, and other economic measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruption in the supply of electronic circuits due to quality issues or insufficient raw materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in the number of manufacturers of battery components; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in the cost of raw materials.

We are dependent on the continued supply of battery components for our products. To date, we have a limited number of fully qualified suppliers, and have limited flexibility in changing suppliers, though we are actively engaged in activities to qualify additional suppliers. Any disruption in the supply of battery components could temporarily disrupt production of our products until a different supplier is fully qualified.

The cost of our battery products depends in part upon the prices and availability of raw materials such as lead, lithium, nickel, cobalt or other metals. Lead is our most significant raw material and is used along with significant amounts of plastics, steel, copper and other materials in our manufacturing processes. We estimate that raw material costs account for over half of our cost of goods sold. The prices for these materials fluctuate and their available supply may be unstable, depending on market conditions and global demand for these materials, including as a result of increased global production of electric vehicles and energy storage products. Additionally, our suppliers may not be willing or able to reliably meet our timelines or our cost and quality needs, which may require us to replace them with other sources. Furthermore, fluctuations or shortages in petroleum and other economic conditions may cause us to experience significant increases in freight charges and other transportation costs. Any reduced availability of these raw materials or substantial increases in their prices may increase the cost of our components and consequently, the cost of our products. There can be no assurance that we will be able to recoup increasing costs of our components by increasing prices, which in turn could damage our brand, business, prospects, financial condition and operating results.

Volatile raw material costs can significantly affect our operating results and make period-to-period comparisons difficult. To reduce the volatility of our costs, we periodically enter into hedging arrangements for a portion of our projected lead requirements. However, we cannot assure you that we will be able to either hedge the costs or secure the availability of our raw material requirements at a reasonable level or, even with respect to our agreements that adjust pricing to a market-based index for lead, pass on to our customers the increased costs of our raw materials without affecting demand or that limited availability of materials will not impact our production capabilities. Our inability to raise the price of our products in response to increases in prices of raw materials due to pricing pressure, contract terms or other factors or to maintain a proper supply of raw materials could have an adverse effect on our business, financial position and results of operations.

Tariffs, economic sanctions and other changes in U.S. trade policy have in the past and could in the future trigger retaliatory actions by affected countries, and certain foreign governments have instituted or are considering imposing retaliatory measures on certain U.S. goods. Our business, like many other corporations, would be impacted by changes to the trade policies of the United States and foreign countries (including governmental action related to tariffs, international trade agreements, or

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economic sanctions). Such changes have the potential to adversely impact the U.S. economy or certain sectors thereof, the global economy, and our industry, and as a result, could have a material adverse effect on our business, financial condition and results of operations.

*We have experienced and may continue to experience, difficulties implementing our global enterprise resource planning system, which may adversely affect our business, financial condition and results of operations.* 

We are engaged in a multi-year implementation of a global enterprise resource planning system ("ERP"). The ERP is designed to standardize business processes to efficiently maintain our financial records and provide critical operational information to our management team. The ERP will continue to require significant investment of human and financial resources. In our prior efforts implementing the ERP, we experienced significant production and shipping delays, increased costs and other difficulties. Any significant disruption or deficiency in the design and implementation of the ERP could adversely affect our ability to process orders, ship products, send invoices and track payments, fulfill contractual obligations or otherwise operate our business. Even with our investment of significant resources into the ERP system, additional and significant implementation issues may arise. In addition, our efforts to centralize various business processes and functions within our organization in connection with our ERP implementation may disrupt our operations, divert management's attention and negatively impact our business, financial condition and results of operations.

*The failure to successfully implement efficiency and cost reduction initiatives, including restructuring activities, could materially adversely affect our business, financial position and results of operations, and we may not realize some or all of the anticipated benefits of those initiatives.*

From time to time, we have implemented efficiency and cost reduction initiatives intended to improve our profitability and to respond to changes impacting our business and industry. These initiatives include relocating manufacturing to lower cost regions, consolidating and closing facilities, working with our material suppliers to lower costs, product design and manufacturing improvements, personnel reductions and voluntary retirement programs, and strategically planning capital expenditures and development activities. In the past we have recorded net restructuring charges to cover costs associated with our cost reduction initiatives involving restructuring. These costs have been primarily composed of employee separation costs, including severance payments, and asset impairments or losses from disposal. We also undertake restructuring activities and programs to improve our cost structure in connection with our business acquisitions, which can result in significant charges, including charges for severance payments to terminated employees and asset impairment charges.

We cannot assure you that our efficiency and cost reduction initiatives will be successfully or timely implemented, or that they will materially and positively impact our profitability. Because our initiatives involve changes to many aspects of our business, the associated cost reductions could adversely impact productivity and sales to an extent we have not anticipated. In addition, our ability to complete our efficiency and cost-savings initiatives and achieve the anticipated benefits within the expected time frame is subject to estimates and assumptions and may vary materially from our expectations, including as a result of factors that are beyond our control. Furthermore, our efforts to improve the efficiencies of our business operations and improve growth may not be successful. Even if we fully execute and implement these activities and they generate the anticipated cost savings, there may be other unforeseeable and unintended consequences that could materially adversely impact our profitability and business, including unintended employee attrition or harm to our competitive position. To the extent that we do not achieve the profitability enhancement or other benefits of our efficiency and cost reduction initiatives that we anticipate, our business, financial position and results of operations may be materially adversely affected.

*Our failure to introduce new products and product enhancements coupled with broad market acceptance of new technologies introduced by our competitors could adversely affect our business.*

Many new energy storage technologies have been introduced over the past several years. For certain important and growing markets, including markets served by our Motive Power and Energy Storage business segments, lithium-based battery technologies have a growing market share. Our ability to achieve significant and sustained penetration of key developing markets, including markets served by our Motive Power and Energy Storage business segments, will depend upon our success in developing or acquiring these and other technologies and related raw materials and components, either independently, through joint ventures or through acquisitions. If we fail to develop or acquire, and manufacture and sell, products that satisfy our customers' demands, or we fail to respond effectively to new product announcements by our competitors by quickly introducing competitive products, then market acceptance of our products could be reduced and our business could be adversely affected. We cannot assure you that our portfolio of primarily lead-acid products will remain competitive with products based on new technologies.

*If we are not able to adequately protect our proprietary intellectual property and technology, we may lose any technological advantages and our business, financial position and results of operations may be materially adversely affected.*

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We rely on a combination of copyright, trademark, patent and trade secret laws, non-disclosure agreements and other confidentiality procedures and contractual provisions to establish, protect and maintain our proprietary intellectual property and technology and other confidential information. Certain of these technologies, especially thin plate pure lead ("TPPL") technology, are important to our business and are not protected by patents. Despite our efforts to protect our proprietary intellectual property and technology and other confidential information, unauthorized parties may attempt to copy or otherwise obtain and use our intellectual property and proprietary technologies. Successful cybersecurity attacks, data breaches, unauthorized exfiltration, unapproved use of machine learning or artificial intelligence tools, or other security incidents could result in the loss of intellectual property and key technological advantages. If we are unable to protect our intellectual property and technology, we may lose any technological advantage we currently enjoy and may be required to take an impairment charge with respect to the carrying value of such intellectual property or goodwill established in connection with the acquisition thereof. In either case, our business, financial position and results of operations may be materially adversely affected.

*Relocation of our customers' operations could adversely affect our business, financial condition and results of operations.*

The trend by a number of our North American and Western European customers to move manufacturing operations and expand their businesses in faster growing and lower labor-cost markets may have an adverse impact on our business, financial condition and results of operations. These territories may be farther from our manufacturing plants, and there is a risk that these customers will source their energy storage products from competitors located in those territories and will cease or reduce the purchase of products from us. We cannot assure you that we will be able to compete effectively with our competitors located in those territories, whether by establishing or expanding our manufacturing operations in those territories or acquiring existing manufacturers in those territories.

*Quality problems with our products could harm our reputation and erode our competitive position.*

The success of our business depends upon the quality of our products and our relationships with customers. In the event that our products fail to meet our customers' standards, our reputation could be harmed. This could result in the loss of customers, a decrease in revenue and a loss of market share. We cannot assure you that our customers will not experience quality problems with our products. Warranty, recall or product liability claims could also materially adversely affect our business and reputation. In our business, we are exposed to warranty and product liability claims. In addition, we may be required to participate in the recall of a product. If we fail to meet customer specifications for their products, we may be subject to product quality costs and claims, as well as adverse reputational impacts. A successful warranty or product liability claim against us, or a requirement that we participate in a product recall, could have a material adverse effect on our business, financial condition and results of operations.

*We offer our products under a variety of brand names, the protection of which is important to our reputation for quality in the consumer marketplace.*

We rely upon a combination of trademark, licensing and contractual covenants to establish and protect the brand names of our products. We have registered many of our trademarks in the U.S. Patent and Trademark Office and in other countries. In many market segments, our reputation is closely related to our brand names. Monitoring unauthorized use of our brand names is difficult, and we cannot assure you that the steps we have taken will prevent the unauthorized use of our brand names, particularly in foreign countries where the laws may not protect our proprietary rights as fully as in the U.S. We cannot assure you that our brand names will not be misappropriated or utilized without our consent. In the event of any such actions, our reputation and our business, financial condition and results of operations may be materially adversely affected.

*Our growth strategy depends on our ability to continue to expand our market presence through acquisitions, and our business could be materially adversely affected if we are unable to identify suitable acquisition candidates, complete any proposed acquisitions or successfully integrate the businesses we acquire.*

As part of our growth strategy, we depend on acquisitions of other product lines, technologies or facilities that complement or expand our existing business. Acquisitions involve numerous risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to overcome significant competition for acquisition targets in the stored energy industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to identify suitable acquisition candidates or negotiate attractive terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty obtaining the financing necessary to complete transactions we pursue, as our credit facilities restrict the amount of additional indebtedness that we may incur to finance acquisitions and place other restrictions on our ability to make acquisitions (and exceeding any of these restrictions would require the consent of our lenders);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to identify all material issues through a customary due diligence investigation, and that material issues will arise later;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties in the assimilation of the operations, systems, controls, technologies, personnel, services and products of the acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential loss of key employees, customers, suppliers and distributors of the acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diversion of our management's attention from other business concerns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incurrence of additional debt or adverse tax and accounting consequences in connection with any acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to successfully integrate the acquired businesses in a timely manner, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incurrence of significant unanticipated expenses associated with integration activities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anticipated benefits of an acquisition not being realized fully or at all, or taking longer to realize than we expect.

The materialization of any of the foregoing risks could impair our ability to successfully execute our acquisition growth strategy, which could have a material adverse effect on our business.

*Any acquisitions that involve the issuance of our equity securities may dilute our stockholder ownership interests, reduce the market price of our stock, or both, and as a result our business, financial condition and results of operations could be adversely affected.*

Future acquisitions may involve the issuance of our equity securities as payment, in part or in full, for the businesses or assets acquired. Any future issuances of equity securities may dilute our stockholders' proportionate ownership interests in EnerSys. In addition, the benefits derived by us from an acquisition might not outweigh or exceed the dilutive effect of any issuance of equity securities in connection with the acquisition. We cannot predict or estimate the amount or timing of any future acquisitions or related issuances of equity securities. Our stockholders bear the risk of any such future offerings reducing the market price of our stock and diluting their proportionate ownership interests in EnerSys.

*If our electronic data is compromised, our business could be materially adversely affected.*

We and our business partners maintain significant amounts of data electronically in locations around the world. This data relates to all aspects of our business, including current products and services and future products and services under development. This data also contains certain customer, supplier, partner and employee information. We maintain systems and processes designed to protect this data. However, notwithstanding such protective measures, there is a risk of intrusion, cyberattacks, tampering, theft, misplaced or lost data, programming or human errors that could compromise the integrity and privacy of this data, improper use of our systems, software solutions or networks, power outages, hardware failures, computer viruses, failure of critical computer systems, unauthorized access, use, disclosure, modification or destruction of information, defective products, production downtimes and operational disruptions, which in turn could adversely affect our business, financial condition and results of operations.

We provide confidential and proprietary information to our third-party business partners in certain cases where doing so is necessary to conduct our business. While we obtain assurances from those parties that they have systems and processes in place to protect such data and, where applicable, that they will take steps to assure the protections of such data by third parties, those partners may be subject to the same risks as we are.

In particular, we and our third-party business partners experience cybersecurity incidents of varying degrees from time-to-time, including ransomware and phishing attacks as well as distributed denial of service attacks and the theft of data. Cyber threats are constantly evolving, are becoming more sophisticated and are being made by groups and individuals with a wide range of expertise and motives, and this increases the difficulty of detecting and successfully defending against them.

Any compromise of the confidential data of our customers, suppliers, partners, employees or ourselves, or failure to prevent or mitigate the loss of or damage to this data through breach of our information technology systems or other means could substantially disrupt our operations, harm our customers, employees and other business partners, damage our reputation, violate applicable laws and regulations, subject us to potentially significant costs and liabilities and result in a loss of business that could be material.

*Our software and related services are highly technical and may contain undetected software bugs, errors or other vulnerabilities, which could manifest in ways that could adversely affect our reputation and our business.*

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The software and related services that we offer are highly technical and complex. Our services or any other products that we may introduce in the future may contain undetected software bugs, hardware errors and other vulnerabilities. These vulnerabilities can manifest in any number of ways in our products, including through diminished performance, security vulnerabilities, malfunctions, or even permanently disabled products. We have a practice of regularly updating our products, and some errors in our products may be discovered only after a product has been used. In some cases, any vulnerabilities may only be detected under certain circumstances or after extended use. Any errors, bugs or other vulnerabilities discovered in our code or backend after release could damage our reputation, alienate users, allow third parties to manipulate or exploit our software, lower revenue and expose us to claims for damages, any of which could adversely affect our business. Additionally, errors, bugs or other vulnerabilities may, either directly or if exploited by third parties, affect our ability to make accurate royalty payments. We also could face claims for product liability, tort or breach of warranty as a result. Defending a lawsuit, regardless of its merit, is costly and may divert management's attention and adversely affect our reputation and our business. In addition, if our liability insurance coverage proves inadequate or future coverage is unavailable on acceptable terms or at all, our business could be seriously harmed.

*If we cannot keep pace with rapid developments in technology, the use of our products and services and, consequently, our revenues could decline.* 

Our business continues to demand the use of sophisticated systems and technology. These systems and technologies must be refined, updated and replaced with more advanced systems on a regular basis in order for us to meet our customers' demands and expectations. We expect that new technologies applicable to our business will continue to emerge and may be superior to, or render obsolete, the technologies we currently use in our products and services. We cannot predict the effects of technological changes on our business, which technological developments or innovations will become widely adopted, and how those technologies may be regulated. Developing and incorporating new or updated systems and technologies into new and existing products and services may require significant investment, take considerable time and may not ultimately be successful. If we are unable to do so on a timely basis or within reasonable cost parameters, or if we are unable to appropriately and timely train our employees to operate any of these new systems or technologies, our business could be adversely affected. We also may not achieve the benefits that we anticipate from any new system or technology and a failure to do so could result in higher than anticipated costs and adversely affect our results of operations.

*Work stoppages or similar difficulties could significantly disrupt our operations, reduce our revenues and materially adversely affect our business.*

A work stoppage at one or more of our facilities, whether caused by fire, flooding, epidemics, pandemics, military hostilities, government-imposed shutdowns, severe weather, including that caused by climate change, other natural disaster or otherwise, could have a material adverse effect on our business, financial condition and results of operations. In addition, some of our employees are represented by labor unions or works councils under collective bargaining agreements with varying durations and terms. Although we believe that our relations with our employees are strong, if our unionized workers were to engage in a strike, work stoppage or other slowdown in the future, we could experience a significant disruption of our operations. No assurances can be made that we will not experience work stoppages due to government directives, employee health concerns, and other types of conflicts with labor unions, works councils, and other similar groups in the future.

A work stoppage at one or more of our suppliers could also materially and adversely affect our business if an alternative source of supply is not readily available. In addition, if one or more of our customers were to experience a work stoppage, that customer could cease or limit purchases of our products, which could have a material adverse effect on our business, financial condition and results of operations. In addition, the credit and default risk or bankruptcy of customers or suppliers as a result of work stoppages could likewise materially and adversely affect our business, financial condition and results of operations.

**Global Operations Risks**

*Our results of operations may be negatively impacted by public health epidemics or outbreaks.*

Public health epidemics or outbreaks could adversely impact our global operations. For example, the COVID-19 pandemic caused disruption to the global economy, including economic slowdowns and supply chain disruptions that adversely affected our business, financial position and results of operations. In response to public health epidemics or outbreaks, countries imposed prolonged quarantines and travel restrictions, which may significantly impact the ability of our employees to get to their places of work to produce products, may make it such that we are unable to obtain sufficient components or raw materials and component parts on a timely basis or at a cost-effective price or may significantly hamper our products from moving through the supply chain.

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We rely on our production facilities, as well as third-party suppliers and manufacturers, in the United States, Australia, Canada, France, Germany, Italy, the People's Republic of China ("PRC"), the United Kingdom and other countries that were significantly impacted by COVID-19. Shutdowns of certain businesses in many of these countries resulted in disruptions or delays to our supply chain or reduction in demand for certain products. Although disruptions may continue to occur and the future impact of the outbreak is uncertain, the impacts of the public health epidemics or outbreaks (or events similar to COVID-19 in the future) cannot be reliably quantified at this time.

The rapid spread of a contagious illness such as COVID-19, poses the risk that our employees, contractors, suppliers and customers may be prevented from conducting business, which may have a material adverse effect on our business, financial position and results of operations.

*The uncertainty in global economic conditions or geographic regions in which our customers operate could adversely affect our business, financial position and operating results.*

Our operating results are directly affected by the general global economic conditions of the industries in which our major customer groups operate. Our products are heavily dependent on the end markets that we serve and our operating results will vary by location, depending on the economic environment in these markets. Sales of our motive power products, for example, depend significantly on demand for new electric industrial forklift trucks, which in turn depends on end-user demand for additional motive capacity in their distribution and manufacturing facilities. The uncertainty in global economic conditions varies by geographic location and can result in substantial volatility in global credit markets, particularly in the United States, where we service the vast majority of our debt. Moreover, Federal Reserve Bank of the United States policy, including with respect to interest rates and its quantitative easing policy, may also result in market volatility or a return to unfavorable economic conditions. These conditions affect our business by reducing prices that our customers may be able or willing to pay for our products or by reducing the demand for our products, which could in turn negatively impact our sales and earnings generation and result in a material adverse effect on our business, cash flow, results of operations and financial position.

*Government reviews, inquiries, investigations and actions could harm our business or reputation.*

As we operate in various locations around the world, our operations in certain countries are subject to significant governmental scrutiny and may be adversely impacted by the results of such scrutiny. The regulatory environment with regard to our business is evolving, and officials often exercise broad discretion in deciding how to interpret and apply applicable regulations. From time to time, we receive formal and informal inquiries from various government regulatory authorities, as well as self-regulatory organizations, about our business and compliance with local laws, regulations or standards.

Any determination that our operations or activities, or the activities of our employees, are not in compliance with existing laws, regulations or standards could result in the imposition of substantial fines, interruptions of business, loss of supplier, vendor, customer or other third-party relationships, termination of necessary licenses and permits, or similar results, all of which could potentially harm our business and reputation. Even if an inquiry does not result in these types of determinations, regulatory authorities could cause us to incur substantial costs or require us to change our business practices in a manner materially adverse to our business, and it potentially could create negative publicity which could harm our business and reputation.

*Our international operations may be adversely affected by actions taken by foreign governments or other forces or events over which we may have no control.*

We currently have significant manufacturing and distribution facilities outside of the United States, in Argentina, Australia, Belgium, Brazil, Canada, the Czech Republic, France, Germany, India, Italy, Malaysia, Mexico, the PRC, Poland, Spain, Switzerland and the United Kingdom. Our global operations are dependent upon products manufactured, purchased and sold in the U.S. and internationally, including in countries with political and economic instability or uncertainty. This includes, for example, the uncertainty related to the United Kingdom's withdrawal from the European Union (commonly known as "Brexit") the current conflict between Russia and Ukraine, ongoing terrorist activity,the conflict with Iran, the adoption and expansion of trade restrictions, including the occurrence or escalation of a "trade war," or other governmental action related to tariffs or trade agreements or policies among the governments of the United States, the PRC and other countries and other global events. The global credit and financial markets have recently experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. Sanctions imposed by the United States and other countries in response to such conflicts, including the one in Ukraine, may also adversely impact the financial markets and the global economy, and any economic countermeasures by affected countries and others could exacerbate market and economic instability. There can be no assurance that further deterioration in credit and financial markets and confidence in economic conditions will not occur. Recent effects of the conflict between Russia and Ukraine includes writing off $4 million in net assets located in Russia during fiscal 2022. Furthermore, Brexit could cause disruptions to, and create uncertainty surrounding our business, including affecting our relationships with our existing and future customers, suppliers and associates, which could have an adverse effect on our business, financial results and operations. Effects of Brexit include changes in customs regulations, shortages of truck drivers in

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the U.K., and administrative burdens placed on transportation companies have led to challenges and delays in moving inventory across U.K. or EU borders, and higher importation, freight and distribution costs. If such trends continue, we may experience further cost increases.

Some countries have greater political and economic volatility and greater vulnerability to infrastructure and labor disruptions than others. Our business could be negatively impacted by adverse fluctuations in freight costs, limitations on shipping and receiving capacity, and other disruptions in the transportation and shipping infrastructure at important geographic points of exit and entry for our products. Operating in different regions and countries exposes us to a number of risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• multiple and potentially conflicting laws, regulations and policies that are subject to change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in international treaties or trade unions, which may make our products or our customers' products more costly to export or import;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• imposition of currency restrictions, restrictions on repatriation of earnings or other restraints, imposition of burdensome import duties, tariffs or quotas, which may make our products more costly to export or import;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in trade agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the FCPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with data protection regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• imposition of new or additional trade and economic sanctions laws imposed by the U.S. or foreign governments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• war or terrorist acts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political and economic instability or civil unrest that may severely disrupt economic activity in affected countries.

The occurrence of one or more of these events may adversely affect our business, financial condition and results of operations.

*We are exposed to exchange rate and inflation risks, and our net earnings and financial condition may suffer due to currency translations.*

We invoice our foreign sales and service transactions in local and foreign currencies and translate net sales using actual exchange rates during the period. We translate our non-U.S. assets and liabilities into U.S. dollars using current exchange rates as of the balance sheet dates. Approximately 40% of net sales were generated outside of the United States in fiscal 2026. Because a significant portion of our revenues and expenses are denominated in foreign currencies, changes in exchange rates between the U.S. dollar and foreign currencies, including the effects of inflation, primarily the euro, British pound, Polish zloty, Chinese renminbi, Mexican peso and Swiss franc, may adversely affect our revenue, cost of goods sold and operating margins. For example, foreign currency depreciation against the U.S. dollar will reduce the value of our foreign revenues and operating earnings as well as reduce our net investment in foreign subsidiaries. In addition, we have balance sheet foreign currency positions that benefit from a stronger U.S. dollar and weak euro and may impact other income expense and equity on the balance sheet.

Most of the risk of fluctuating foreign currencies is in our European operations, which comprised approximately one-fifth of our net sales during the last three fiscal years. The euro is the dominant currency in our EMEA operations. In the event that one or more European countries were to replace the euro with another currency, our sales into such countries, or into Europe generally, would likely be adversely affected until stable exchange rates are established.

If foreign currencies depreciate against the U.S. dollar, it would make it more expensive for our non-U.S. subsidiaries to purchase certain of our raw material commodities that are priced globally in U.S. dollars, while the related revenue will decrease when translated to U.S. dollars. Significant movements in foreign exchange rates can have a material impact on our results of operations and financial condition. We periodically engage in hedging of our foreign currency exposures, but cannot assure you that we can successfully hedge all of our foreign currency exposures or do so at a reasonable cost.

We quantify and monitor our global foreign currency exposures. Our largest foreign currency exposure is from the purchase and conversion of U.S. dollar-based lead costs into local currencies in Europe. Additionally, we have currency exposures from intercompany financing and intercompany and third party trade transactions. On a selective basis, we enter into foreign currency forward contracts and purchase option contracts to reduce the impact from the volatility of currency movements; however, we cannot be certain that foreign currency fluctuations will not impact our operations in the future.

If we are unable to effectively hedge against currency fluctuations, our operating costs and revenues in our non-U.S. operations may be adversely affected. This, in turn, would have an adverse effect on our business, financial position and results of operations.

**Financial and Accounting Risks**

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*The Inflation Reduction Act of 2022 ("IRA") contains production tax credits for certain battery cells and battery modules. The Company's ability to benefit from Section 45X production tax credits is not guaranteed and is dependent upon the federal government's ongoing implementation, guidance, regulations, and/or rulemakings that have been the subject of substantial public interest and debate.* 

In August 2022, President Biden signed the IRA into law. The IRA provides for substantial tax credits and incentives for the development of critical minerals, renewable energy, clean fuels, electric vehicles, and supporting infrastructure, among other provisions. Section 45X of the Internal Revenue Code ("IRC") contains a production tax credit equal to 10% of certain eligible production costs, including, without limitation, labor, energy, depreciation and amortization and overhead expenses as well as credits for production of qualifying battery cells and modules. Effective October 24, 2024, the U.S. Department of the Treasury and the Internal Revenue Service released final rules to provide guidance on the production tax credit requirements under IRC Section 45X (the "Final Regulations"). The Final Regulations provide guidance on rules that taxpayers must satisfy to qualify for the Section 45X tax credit.

While Section 45X of the IRC provides for substantial tax benefits for us, there is some uncertainty as to how these provisions will be interpreted and implemented. Furthermore, future legislative enactments or administrative actions could limit, amend, repeal, or terminate IRA policies or other incentives to which currently benefit. Any reduction, elimination, or discriminatory application or expiration of Section 45X of the IRC may materially adversely affect our future operating results and operations.

*We may not be able to maintain adequate credit facilities, which could materially adversely affect our business, financial condition and results of operations.*

Our ability to continue our ongoing business operations and fund future growth depends on our ability to maintain adequate credit facilities and to comply with the financial and other covenants in such credit facilities or to secure alternative sources of financing. However, such credit facilities or alternate financing may not be available or, if available, may not be on terms favorable to us. If we do not have adequate access to credit, we may be unable to refinance our existing borrowings and credit facilities when they mature and fund future acquisitions, which may reduce our flexibility in responding to changing industry conditions and materially adversely affect our business, financial condition and results of operations.

*Our indebtedness could adversely affect our business, financial condition and results of operations and restrict us in ways that limit our flexibility in operating our business.*

As of March 31, 2026, we had $1,120 million of total consolidated debt (including finance leases). This level of debt could:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase our vulnerability to adverse general economic and industry conditions, including interest rate fluctuations, because a portion of our borrowings bear, and will continue to bear, interest at floating rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require us to dedicate a substantial portion of our cash flow from operations to debt service payments, which would reduce the availability of our cash to fund working capital, capital expenditures or other general corporate purposes, including acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit our flexibility in planning for, or reacting to, changes in our business and industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrict our ability to introduce new products or technologies or exploit business opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• place us at a disadvantage compared with competitors that have proportionately less debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit our ability to borrow additional funds in the future, if we need them, due to financial and restrictive covenants in our debt agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit our operating and financial flexibility due to financial and restrictive covenants in our debt agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have a material adverse effect on us if we fail to comply with the financial and restrictive covenants in our debt agreements.

In addition, our ability to make scheduled payments on or to refinance our debt obligations depends on our financial condition and operating performance, which is subject to prevailing economic and competitive conditions and to financial, business, legislative, regulatory and other factors, some of which are beyond our control. Any failure to make scheduled payments could adversely affect our business, financial condition and results of operations.

*We may have exposure to greater than anticipated tax liabilities, which could adversely impact our business, financial position and results of operations.*

Our income tax obligations are based in part on our corporate operating structure and intercompany arrangements, including the manner in which we operate our business, develop, value, manage, protect, and use our intellectual property and the valuations of our intercompany transactions. We may also be subject to additional indirect or non-income based taxes. The tax laws applicable to our business, including the laws of the United States and other jurisdictions, are subject to interpretation, and certain jurisdictions are aggressively interpreting their laws in new ways in an effort to raise additional tax revenue from multi-national companies like us. The taxing authorities of the jurisdictions in which we operate may challenge our tax positions and

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methodologies for valuing developed technology or intercompany arrangements, which could increase our worldwide effective tax rate and adversely impact our business, financial position and results of operations. Although we believe that our provision for income taxes is reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and may materially affect our financial results in the period or periods for which such determination is made. In addition, our future income tax rates could be adversely affected by earnings being lower than anticipated in jurisdictions that have lower statutory tax rates and higher than anticipated in jurisdictions that have higher statutory tax rates, by changes in the valuation of our deferred tax assets and liabilities, or by changes in tax laws, regulations, or accounting principles.

*Changes in tax laws or tax rulings could materially affect our business, financial position and results of operations.*

The income and non-income tax regimes to which we are subject or under which we operate are unsettled and may be subject to significant change. Changes in tax laws or tax rulings, or changes in interpretations of existing laws, could materially affect our business, financial position and results of operations. In addition, many countries in Europe, as well as a number of other countries and organizations, have recently proposed or recommended changes to existing tax laws or have enacted new laws that could significantly increase our tax obligations in many countries where we do business or require us to change the manner in which we operate our business. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On August 16, 2022, the U.S. Congress passed the Inflation Reduction Act of 2022 (the "IRA"), which, among other provisions, creates a new corporate alternative minimum tax ("CAMT") of at least 15% for certain large corporations that have at least an average of $1 billion in adjusted financial statement income over a consecutive three-year period effective after December 31, 2022. The IRA also includes a 1% excise tax on certain stock repurchases beginning in 2023. We do not expect to meet the CAMT threshold in the near term. However, we expect a material portion of our U.S. produced batteries and battery cells, including our proprietary TPPL batteries, will qualify for production tax credits under Section 45X of the IRA. For more information, see "The Inflation Reduction Act of 2022 ("IRA") contains production tax credits for certain battery cells and battery modules. The Company's ability to benefit from Section 45X production tax credits is not guaranteed and is dependent upon the federal government's ongoing implementation, guidance, regulations, and/or rulemakings that have been the subject of substantial public interest and debate." above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2021, the Organization for Economic Cooperation Development (the "OECD"), through an association of more than 140 countries, announced a consensus around a two-pillar approach to address tax challenges presented by digital commerce. "Pillar 1" focuses on nexus and profit allocation, and "Pillar 2" focuses on a minimum global effective tax rate of 15%. On December 15, 2022, the European Union adopted the Pillar Two directive and EU member states were expected to implement Pillar Two into domestic law by December 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On January 5, 2026, the OECD issued the Side-by-Side package (the "SbS Package"), which provides administrative guidance that modifies the application of the Pillar Two rules. The SbS Package includes simplifications and additional safe harbors intended to facilitate coordination between domestic and international tax regimes and the Pillar Two framework. If adopted by relevant jurisdictions, certain provisions of the SbS Package could result in U.S.-parented groups being exempt from the application of two of the three Pillar Two top-up taxes.

We closely monitor these developments in the countries where we operate. Changes to the statutory tax rate may occur at any time, and any related expense or benefit recorded may be material to the fiscal quarter and year in which the law change is enacted. The European Commission has conducted investigations in multiple countries focusing on whether local country tax rulings or tax legislation provides preferential tax treatment that violates European Union state aid rules and concluded that certain countries, have provided illegal state aid in certain cases. These investigations may result in changes to the tax treatment of our foreign operations. Due to the large and expanding scale of our international business activities, many of these types of changes to the taxation of our activities could increase our worldwide effective tax rate and adversely affect our business, financial position and results of operations. Such changes may also apply retroactively to our historical operations and result in taxes greater than the amounts estimated and recorded in our financial statements.

In connection with the OECD's Base Erosion and Profit Shifting (BEPS) project, companies are required to disclose more information to tax authorities on operations around the world, which may lead to greater audit scrutiny of profits earned in other countries. We regularly assess the likely outcomes of our tax audits and disputes to determine the appropriateness of our tax reserves. However, any tax authority could take a position on tax treatment that is contrary to our expectations, which could result in tax liabilities in excess of reserves.

**Legal and Regulatory Risks**

*Our operations expose us to environmental, health and safety and other legal compliance risks, and any noncompliance could adversely affect our business.* 

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As a global business, we are subject to extensive environmental liability on our operations due to current environmental laws and regulations in the jurisdictions we operate.

If convicted or found liable for violation of a law or regulation, we could be subject to significant fines, penalties, repayments or other damages. Laws and regulations may also change from time to time, as may related interpretations and other guidance, resulting in potentially higher expenses and payments and affect how we conduct our operations and structure our investments.

We process, store, dispose of and otherwise use large amounts of hazardous materials, especially lead and acid in the manufacturing of our products. As a result, we are subject to extensive and changing environmental, health and safety laws and regulations governing, among other things: the generation, handling, storage, use, transportation and disposal of hazardous materials; remediation of polluted ground or water; emissions or discharges of hazardous materials into the ground, air or water; and the health and safety of our employees. Failure to comply with these laws or regulations, or to obtain or comply with required environmental permits, could result in fines, criminal charges or other sanctions by regulators. From time to time we have had instances of alleged or actual noncompliance that have resulted in the imposition of fines, penalties and required corrective actions. Our ongoing compliance with environmental, health and safety laws, regulations and permits could require us to incur significant expenses, limit our ability to modify or expand our facilities or continue production and require us to install additional pollution control equipment and make other capital improvements. In addition, private parties, including current or former employees, could bring personal injury or other claims against us due to the presence of, or exposure to, hazardous substances used, stored or disposed of by us or contained in our products.

Certain environmental laws assess liability on owners or operators of real property for the cost of investigation, removal or remediation of hazardous substances at their current or former properties. These laws may also assess costs to repair damage to natural resources. We may be responsible for remediating damage to our properties caused by former owners. Soil and groundwater contamination has occurred at some of our current and former properties and may occur or be discovered at other properties in the future. In accordance with regulatory permits, we are currently investigating and monitoring soil and groundwater contamination at several of our properties, in most cases as required by regulatory permitting processes. We may be required to conduct these operations at other properties in the future. In addition, we have been, and in the future, may be liable to contribute to the cleanup of locations owned or operated by other persons to which we or our predecessor companies have sent waste for disposal, pursuant to federal and other environmental laws. Under these laws, the owner or operator of contaminated properties and companies that generated, disposed of or arranged for the disposal of wastes sent to a contaminated disposal facility can be held jointly and severally liable for the investigation and cleanup of such properties, regardless of fault. Additionally, our products may become subject to fees and taxes in order to fund cleanup of such properties, including those operated or used by other lead-battery industry participants.

Changes in environmental and climate-related laws and regulations could lead to new or additional investment in production designs and could increase environmental compliance expenditures. For example, the European Union has enacted greenhouse gas emissions legislation, and continues to expand the scope of such legislation. The United States Environmental Protection Agency has promulgated regulations applicable to projects involving greenhouse gas emissions above a certain threshold, and the United States and certain states within the United States have enacted, or are considering, limitations on greenhouse gas emissions.

Changes in climate change concerns, or in the regulation of such concerns, including greenhouse gas emissions, could subject us to additional costs and restrictions, including increased energy and raw materials costs. Additionally, we cannot assure you that we have been or at all times will be in compliance with environmental laws and regulations or that we will not be required to expend significant funds to comply with, or discharge liabilities arising under, environmental laws, regulations and permits, or that we will not be exposed to material environmental, health or safety litigation.

*We are subject to a wide variety of domestic and foreign laws and regulations that could adversely affect our business, financial condition and results of operations.*

We are subject to a wide variety of domestic and foreign laws and regulations, and legal compliance risks, including securities laws, tax laws, data privacy laws, employment and pension-related laws, competition laws, U.S. and foreign export and trade laws, government procurement regulations, and laws governing improper business practices. We are affected by both new laws and regulations, and changes to existing laws and regulations which may continue to evolve through interpretations by courts and regulators. Furthermore, the laws and regulations to which we are subject may differ from jurisdiction to jurisdiction, further increasing the cost of compliance and the risk of noncompliance.

In particular, the U.S. Foreign Corrupt Practices Act ("FCPA") and similar worldwide anti-bribery laws in non-U.S. jurisdictions generally prohibit companies and their intermediaries from making improper payments to non-U.S. officials for the purpose of obtaining or retaining business. The FCPA applies to companies, individual directors, officers, employees and agents. Under the FCPA, U.S. companies may be held liable for actions taken by strategic or local partners or representatives. The FCPA also imposes accounting standards and requirements on publicly traded U.S. corporations and their foreign affiliates,

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which are intended to prevent companies and their intermediaries from making improper payments to non-U.S. government officials for the purpose of obtaining or retaining business. Certain of our customer relationships outside of the U.S. are with governmental entities and are therefore subject to such anti-bribery laws. Our policies mandate compliance with these anti-bribery laws. Despite meaningful measures that we undertake to facilitate lawful conduct, which include training and internal control policies, these measures may not always prevent reckless or criminal acts by our employees or agents. As a result, we could be subject to criminal and civil penalties, disgorgement, further changes or enhancements to our procedures, policies and controls, personnel changes or other remedial actions. Violations of these laws, or allegations of such violations, could disrupt our operations, involve significant management distraction and result in a material adverse effect on our competitive position, results of operations, cash flows or financial condition.

*Complying or failing to comply with conflict minerals regulations could materially and adversely affect our supply chain, our relationships with customers and suppliers and our financial results.* 

We are currently subject to conflict mineral disclosure regulations in the U.S. and may be affected by new regulations concerning conflict and similar minerals adopted by other jurisdictions where we operate. U.S. legislation included disclosure requirements regarding the use of conflict minerals mined from the Democratic Republic of Congo and adjoining countries and procedures regarding a manufacturer's efforts to prevent the sourcing of such conflict minerals. In addition, the European Union adopted an EU-wide conflict minerals rule under which most EU importers of tin, tungsten, tantalum, gold and their ores will have to conduct due diligence to ensure the minerals do not originate from conflict zones and do not fund armed conflicts. We have and will continue to incur added costs to comply with the disclosure requirements, including costs related to determining the source of such minerals used in our products. We may not be able to ascertain the origins of such minerals that we use and may not be able to satisfy requests from customers to certify that our products are free of conflict minerals. These requirements also could constrain the pool of suppliers from which we source such minerals. We may be unable to obtain conflict-free minerals at competitive prices which will increase costs and may materially and adversely affect our manufacturing operations and profitability.

*Our failure to comply with data privacy regulations could adversely affect our business.*

There are new and emerging data privacy laws, as well as frequent updates and changes to existing data privacy laws, in most jurisdictions in which we operate. Given the complexity of these laws and the requirements they place on businesses regarding the collection, storage, handling, use, disclosure, transfer and security of personal data, it is important for us to understand their impact and respond accordingly. Failure to comply with data privacy laws can result in substantial fines or penalties, legal liability or reputational damage.

In Europe, the General Data Protection Regulation (the "GDPR"), which came into effect in 2018, places stringent requirements on companies when handling personal data and there continues to be a growing trend of other countries adopting similar laws, including Canada. Additionally, there continues to be significant uncertainty with respect to the California Consumer Privacy Act of 2018 (the "CCPA"), which went into effect on January 1, 2020, and imposes additional obligations on companies regarding the handling of personal information and provides certain individual privacy rights to persons whose information is collected. Both the GDPR and the CCPA are continuously evolving and developing and may be interpreted and applied differently from jurisdiction to jurisdiction and may create inconsistent or conflicting requirements. For example, the California Privacy Rights Act, which was approved by California voters as a ballot initiative in November 2020, modifies the CCPA significantly, further enhancing and extending an individual's rights over their personal data and the obligations placed on companies that handle this data. The resulting new regulations became effective on January 1, 2023. Most notably, employee and business data were brought into scope, which raises the compliance requirements for us significantly, in terms of internal controls, processes and governance requirements. Furthermore, since 2020, several other U.S. states have enacted (and additional U.S. states are considering) stringent consumer privacy laws, which may impose varying standards and requirements on our data collection, use and processing activities. Continued state by state introduction of privacy laws could lead to significantly greater complexity in our compliance requirements globally, which could result in complaints from data subjects or action from regulators.

If we are not able to respond, adapt and implement the necessary requirements to ensure compliance with data privacy laws, this could adversely impact our reputation and we could face exposure to fines levied by regulators. As a result, our business, financial position and results of operations could be material adversely affected.

*The reduction, modification, elimination or expiration of government incentives for, or regulations regarding, the use of energy systems and batteries could reduce demand for our products and harm our business.*

Federal, state, local and foreign government bodies provide incentives to owners, end-users, distributors, system integrators and manufacturers of energy systems and batteries in the form of rebates, tax credits and other financial incentives. However, these incentives may expire on a particular date, end when the allocated funding is exhausted, or may be reduced or terminated as a matter of regulatory or legislative policy.

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For example, the IRA expanded and extended the tax credits and other tax benefits available to energy systems projects and the battery supply chain. We believe this law will bolster and extend future demand for our products in the United States. However, we note that implementing regulations for this law are still in process, which creates uncertainty about the extent of its impact on us and our industry. For more information, see "*The Inflation Reduction Act of 2022 ("IRA") contains production tax credits for certain battery cells and battery modules. The Company's ability to benefit from Section 45X production tax credits is not guaranteed and is dependent upon the federal government's ongoing implementation, guidance, regulations, and/or rulemakings that have been the subject of substantial public interest and debate." above.*

In addition, similar incentives may exist in, or be developed outside of, the United States, which could impact demand for our products and services as we expand our business into foreign jurisdictions. Our international customers and end-users may have access to tax deductions and grants toward equipment purchases. Our ability to successfully penetrate new geographic markets may depend on new countries adopting, to the extent such incentives are not currently in place and maintaining such incentives.

**General Risk Factors**

*There can be no assurance that we will continue to declare cash dividends at all or in any particular amounts, and any reduction in or elimination of our dividend payment could reduce the market price of our stock.*

We intend to pay quarterly cash dividends subject to capital availability and periodic determinations by our Board of Directors that cash dividends are in the best interest of our stockholders. Future payment of a regular quarterly cash dividend on our common shares will be subject to, among other things, our results of operations, cash balances and future cash requirements, financial condition, statutory requirements of Delaware law, compliance with the terms of existing and future indebtedness and credit facilities, changes in federal and state income tax laws, changes in our business model and other factors that our Board of Directors may deem relevant. Our dividend payments may change from time to time, and we cannot assure you that we will continue to declare dividends at all or in any particular amounts. A reduction in or elimination of our dividend payments could have a negative effect on our share price.

*We cannot guarantee that our share repurchase programs will be fully consummated or that they will enhance long-term stockholder value. Share repurchases could also increase the volatility of the market price of our stock and diminish our cash reserves.*

Our Board of Directors has authorized one share repurchase program. This program authorizes the repurchase of up to $1 billion of our common stock, of which authority. The other program authorizes the repurchase of up to such number of shares as shall equal the dilutive effects of any equity-based award granted during such fiscal year and the number of shares exercised through stock option awards during such fiscal year. As of March 31, 2026, approximately $876.4 million remains available under the two programs. Although our Board of Directors has authorized these share repurchase programs, the programs do not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares. We cannot guarantee that the programs will be fully consummated or that they will enhance long-term stockholder value. The programs could affect the trading price of our stock and increase volatility, and any announcement of a termination of these programs may result in a decrease in the market price of our stock. In addition, these programs could diminish our cash reserves.

*We depend on our senior management team and other key employees, and significant attrition within our management team or unsuccessful succession planning could adversely affect our business.* 

Our success depends in part on our ability to attract, retain and motivate senior management and other key employees. Achieving this objective may be difficult due to many factors, including fluctuations in global economic and industry conditions, competitors' hiring practices, cost reduction activities, and the effectiveness of our compensation programs. Competition for qualified personnel can be very intense. We must continue to recruit, retain and motivate senior management and other key employees sufficient to maintain our current business and support our future projects. We are vulnerable to attrition among our current senior management team and other key employees. A loss of any such personnel, or the inability to recruit and retain qualified personnel in the future, could have a material adverse effect on our business, financial condition and results of operations. In addition, if we are unsuccessful in our succession planning efforts, the continuity of our business and our results of operations could be materially adversely affected.

*If our internal controls are found to be ineffective, our results of operations or our stock price may be adversely affected.*

Our most recent evaluation resulted in our conclusion that, as of March 31, 2026, our internal control over financial reporting was effective. We believe that we currently have adequate internal control procedures in place for future periods, including

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processes related to newly acquired businesses. However, if our internal control over financial reporting is found to be ineffective, investors may lose confidence in the reliability of our financial statements, which may adversely affect our results of operations or stock price.

*Changes in accounting principles and guidance could result in unfavorable accounting charges or effects, which could adversely affect our business.*

We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the U.S. Any change in these principles could have a significant effect on our reported financial position and financial results. The adoption of new or revised accounting principles may require us to make changes to our systems, processes and internal controls, which could have a significant effect on our reported financial results and internal controls, cause unexpected financial reporting fluctuations, retroactively affect previously reported results or require us to make costly changes to our operational processes and accounting systems upon our following the adoption of these standards. Any of these results could adversely affect our business.

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| **ITEM 1B.** | ***UNRESOLVED STAFF COMMENTS*** |

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None.

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| **ITEM 1C.** | ***CYBERSECURITY*** |

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We are dedicated to safeguarding our invaluable assets and ensuring the well-being of personnel, as demonstrated through the preparation of our cybersecurity program.

**Cybersecurity Risk Management and Strategy**

Our cyber risk management program is designed to comprehensively address the spectrum of cybersecurity threats that confront our organization. Within this program, we integrate an analysis of the risks facing the organization to guide our preparedness against cybersecurity threats to ensure a holistic approach that encompasses cross-functional and geographical visibility under the oversight of executive leadership through regular risk management meetings.

To aid our cybersecurity risk management strategy, we contract with dedicated third-party firms and assessors to identify risks and threats to our organization. These assessments adhere to leading cybersecurity standards such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework aligning with industry best practices. Additionally, our organization adheres to compliance with the Cybersecurity Maturity Model Certification (CMMC) and is undergoing International Organization for Standardization (ISO) accreditation, further demonstrating our commitment to adhering to rigorous cybersecurity standards. To oversee incident response and mitigation we utilize our incident response plan and processes to standardize our processes for assessing, identifying, and managing cybersecurity incidents. This includes a comprehensive reporting structure and analysis processes to provide visibility and determine incident business impact. Were a cybersecurity incident to occur, we have also implemented a cross-functional business team to aid in the determination of incident impact, severity, and materiality, with the support of standing external counsel and third-party incident response advisors. Additional to our third-party incident response advisors and support contracts, we undergo regular penetration tests to bolster our readiness in the event of cybersecurity incidents. Furthermore, we have also obtained cybersecurity insurance coverage to enhance protection and minimize potential financial losses arising from cyber threats.

We prioritize cybersecurity within our supply chain, both nationally and globally, by assessing our third-party cybersecurity posture to provide secure visibility with our partnerships. As part of our due diligence processes, we conduct security questionnaires and service provider reviews, to align our cybersecurity standards on the onset of our partnerships. Additionally, we collaborate closely with a third-party vendor to enhance supply chain resilience. This collaboration involves leveraging their expertise to inform decision-making and enhance risk oversight processes, ensuring greater robustness, and adaptability in managing supply chain challenges.

While we maintain a strong cybersecurity posture, we continuously strive for improvement and vigilance to mitigate evolving threats within this dynamic environment and protect our stakeholders' interests. Our organization has not experienced any unauthorized access resulting from cybersecurity incidents with a materially adverse effect on our business, operations, or financial condition and we remain cognizant of the potential impact of insufficient cybersecurity measures on our operations. For further insights into additional organizational risks, please refer to the General Risk Factors section of Item 1(A) Risk Factors.

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**Cybersecurity Governance**

The Board delegated primary oversight authority to the Audit Committee who plays a pivotal role in ensuring the effectiveness of our cybersecurity strategy. Through regular updates provided by our leadership team, the committee actively evaluates the organization's cybersecurity posture and aids in prioritizing risk mitigation efforts aligned with our strategic objectives. These updates encompass detailed quarterly reports during audit committee meetings, covering key metrics, ongoing initiatives, and any cybersecurity incidents. Additionally, on an annual basis, the entire board receives updates on the progress of our cybersecurity program and strategy, including insights into emerging risks and industry trends. Moreover, the board benefits from supplementary educational briefings delivered by both internal and external experts, providing invaluable global threat visibility and enhancing the Board's understanding of cybersecurity challenges and opportunities.

Overseeing our cybersecurity initiatives is our CIO and Director of Global Cybersecurity, who provide invaluable expertise in managing cybersecurity risks and leading our cybersecurity operations. Both the CIO and Director of Global Cybersecurity possess extensive expertise in information technology and program management, with a wealth of experience, including over 19 combined years of dedicated service within our corporate information security organization. Furthermore, the executive leadership team is active in security operations, overseeing implementation of policies, procedures, and policies related to cybersecurity, technology, and vendors. Both the Audit Committee of the Board as well as executive leadership team will be notified and updated in the event of an incident, with incident updates, mitigation efforts, and impact, as deemed appropriate.

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| **ITEM 2.** | ***PROPERTIES*** |

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The Company's worldwide headquarters is located in Reading, Pennsylvania, U.S.A. Headquarters for our Americas and EMEA operations are located in Reading, Pennsylvania, U.S.A., and Zug, Switzerland, respectively. The following sets forth the Company's principal owned or leased facilities:

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| **Region and Property Use** | **Motive Power** | **Energy Systems** | **Specialty** | **Shared** <sup>(1)</sup> |
| **Americas:** | | | | |
| Industrial <sup>(2)</sup> | 4 | 6 | 2 | 2 |
| Warehouse | 5 | 4 | 3 | 5 |
| **APAC:** |  |  |  |  |
| Industrial <sup>(2)</sup> |  | 1 |  | 3 |
| **EMEA :** |  |  |  |  |
| Industrial <sup>(2)</sup> |  |  |  | 4 |
| **Total** | 9 | 11 | 5 | 14 |

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<sup>(1)</sup> Certain properties are shared between the different segments

<sup>(2)</sup> Industrial includes manufacturing and assembly properties

We consider our plants and facilities, whether owned or leased, to be in satisfactory condition and adequate to meet the needs of our current businesses and projected growth. Information as to material lease commitments is included in Note 3 - Leases to the Consolidated Financial Statements.

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| **ITEM 3.** | ***LEGAL PROCEEDINGS*** |

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From time to time, we are involved in litigation incidental to the conduct of our business. See Litigation and Other Legal Matters in Note 20 - Commitments, Contingencies and Litigation to the Consolidated Financial Statements, which is incorporated herein by reference.

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| **ITEM 4.** | ***MINE SAFETY DISCLOSURES*** |

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Not applicable.

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**PART II**

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| **ITEM 5.** | ***MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES*** |

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**Market Information**

The Company's common stock has been listed on the New York Stock Exchange under the symbol "ENS" since it began trading on July 30, 2004. Prior to that time, there had been no public market for our common stock.

**Holders of Record**

As of May 15, 2026, there were approximately 560 record holders of common stock of the Company. Because many of these shares are held by brokers and other institutions on behalf of stockholders, the Company is unable to estimate the total number of stockholders represented by these record holders.

**Recent Sales of Unregistered Securities**

During the fourth quarter of fiscal 2026, we did not issue any unregistered securities.

**Dividends**

During fiscal 2026, the Company's quarterly dividend was $0.24 per share in the first quarter and $0.2625 in the second, third, and fourth quarter. The Company declared aggregate regular cash dividends of $1.028, $0.945, and $0.85 per share in each of the years ended March 31, 2026, March 31, 2025 and 2024 respectfully.

The Company anticipates that it will continue to pay quarterly cash dividends in the future. However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company's future earnings, financial condition, capital requirements, restrictions under existing or future credit facilities or debt and other factors. See "There can be no assurance that we will continue to declare cash dividends at all or in any particular amounts." Under Item 1A. Risk Factors for additional information.

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**Purchases of Equity Securities by the Issuer and Affiliated Purchasers**

The following table summarizes the number of shares of common stock we purchased from participants in our equity incentive plans, as well as repurchases of common stock authorized by the Board of Directors. As provided by the Company's equity incentive plans, (a) vested options outstanding may be exercised through surrender to the Company of option shares or vested options outstanding under the Company's equity incentive plans to satisfy the applicable aggregate exercise price (and any withholding tax) required to be paid upon such exercise and (b) the withholding tax requirements related to the vesting and settlement of equity awards may be satisfied by the surrender of shares of the Company's common stock.

**Purchases of Equity Securities**

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|:---|:---|:---|:---|:---|
| **Period** | **(a)<br>Total number<br>of shares (or<br>units)<br>purchased** | **(b)<br>Average price<br>paid per share<br>(or unit)** | **(c)<br>Total number of<br>shares (or units)<br>purchased as part of<br>publicly announced<br>plans or programs** | **(d)**<br>**Maximum number**<br>**(or approximate**<br>**dollar value) of shares**<br>**(or units) that may be**<br>**purchased under the**<br>**plans or programs**<sup>(1)(2)</sup> |
| December 29, 2025 - January 31, 2026 | 114006 | $151.05 |  | $946149043 |
| February 1 - March 1, 2026 | 304834 | 175.55 | 289274 | 895386634 |
| March 2 - March 31, 2026 | 123967 | 157.47 | 120940 | 876353634 |
| Total | 542807 | $166.28 | 410214 |  |

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(1) The Company's Board of Directors has authorized the Company to repurchase up to such number of shares as shall equal the dilutive effects of any equity-based awards issued during such fiscal year under the 2023 Equity Incentive Plan and the number of shares exercised through stock option awards during such fiscal year, approximately $82.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;(2) On August 6, 2025, the Company announced the establishment of a $1.0 billion stock repurchase authorization, with an expiration date of five years from the time of adoption unless otherwise modified or terminated by the Board.

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**STOCK PERFORMANCE GRAPH**

The following graph compares the changes in cumulative total returns on EnerSys' common stock with the changes in cumulative total returns of the New York Stock Exchange Composite Index, a broad equity market index; and the Dow Jones US Electrical Components and Equipment index ("DJUSEC"). The Company determined that the DJUSEC index provides a publicly available index of industry peers with similar market capitalization.

![3489](ens-20260331_g1.jpg)

\*$100 invested on March 31, 2021 in stock or index, including reinvestment of dividends.

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| **ITEM 6.** | ***[RESERVED]*** |

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| **ITEM 7.** | ***MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS*** |

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*The following discussion and analysis of our results of operations and financial condition for the fiscal years ended March 31, 2026 and 2025, should be read in conjunction with our audited Consolidated Financial Statements and the notes to those statements included in Item 8. Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. Our discussion and analysis of our results of operations and financial condition for the fiscal years ended March 31, 2025 and 2024, has been omitted from this Form 10-K and can be found in Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended March 31, 2025. Our discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, opinions, expectations, anticipations and intentions and beliefs. Actual results and the timing of events could differ materially from those anticipated in those forward-looking statements as a result of a number of factors. See "Cautionary Note Regarding Forward-Looking Statements," "Business" and "Risk Factors," sections elsewhere in this Annual Report on Form 10-K. In the following discussion and analysis of results of operations and financial condition, certain financial measures may be considered "non-GAAP financial measures" under the SEC rules. These rules require supplemental explanation and reconciliation, which is provided in this Annual Report on Form 10-K.*

*EnerSys' management uses the non-GAAP measures, EBITDA and adjusted EBITDA, in its computation of compliance with loan covenants and adjusted EBITDA in evaluating its financial performance. These measures, as used by EnerSys, adjust net earnings determined in accordance with GAAP for interest, taxes, depreciation and amortization, and certain charges or credits as permitted by our credit agreements, that were recorded during the periods presented.*

*These non-GAAP disclosures have limitations as analytical tools, should not be viewed as a substitute for cash flow or operating earnings determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to operating earnings determined in accordance with GAAP.*

**Overview**

EnerSys (the "Company," "we," or "us") is a world leader in stored energy solutions for industrial applications. We design, manufacture, and distribute energy systems solutions, and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, are used in the telecommunication, broadband, data center, and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive Power batteries and chargers are utilized in electric forklifts, automated guided vehicles ("AGVs"), and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, large over-the-road trucks, premium automotive, portable power solutions for soldiers in the field, medical and security systems applications. New Ventures provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. We also provide aftermarket and customer support services to over 10,000 customers in more than 100 countries through a network of distributors, independent representatives, and our internal sales force around the world.

The Company's chief operating decision maker, or CODM (the Company's Chief Executive Officer), reviews financial information for purposes of assessing business performance and allocating resources, by focusing on the lines of business on a global basis. The Company excludes certain items that are not included in the segment performance as these are managed and viewed on a consolidated basis. The Company identifies the following as its four operating segments, based on lines of business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Energy Systems -** uninterruptible power systems, or "UPS" applications for computer and computer-controlled systems, as well as telecommunications systems, switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage and energy pipelines. Energy Systems also includes highly integrated power solutions and services to broadband, telecom, data center, and industrial customers, as well as thermally managed cabinets and enclosures for electronic equipment and batteries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Motive Power -** power for electric industrial forklifts, AGVs other material handling equipment used in manufacturing, and warehousing operations, as well as equipment used in floor care, mining, rail and airport ground support applications.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Specialty -** premium starting, lighting and ignition applications in transportation, energy solutions for satellites, spacecraft, commercial aircraft, military, aircraft, submarines, ships, other tactical vehicles, defense applications and portable power solutions for soldiers in the field, as well as medical devices and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **New Ventures** - energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles.

We evaluate business segment performance based primarily upon operating earnings exclusive of highlighted items. Highlighted items are those that the Company deems are not indicative of ongoing operating results, including those charges that the Company incurs as a result of restructuring activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and those charges and credits that are not directly related to operating unit performance, such as significant legal proceedings, amortization of recently acquired intangible assets and tax valuation allowance changes, including those related to the adoption of the Tax Cuts and Jobs Act. Because these charges are not incurred as a result of ongoing operations, or are incurred as a result of a potential or previous acquisition, they are not as helpful a measure of the performance of our underlying business, particularly in light of their unpredictable nature and are difficult to forecast. All corporate and centrally incurred costs are allocated to the business segments based principally on net sales. We evaluate business segment cash flow and financial position performance based primarily upon capital expenditures and primary operating capital levels.

Our management structure, financial reporting systems, and associated internal controls and procedures, are all consistent with our four lines of business. We report on a March 31 fiscal year-end. Our financial results are largely driven by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;• global economic conditions and general cyclical patterns of the industries in which our customers operate;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in our selling prices and, in periods when our product costs increase, our ability to raise our selling prices to pass such cost increases through to our customers;

&nbsp;&nbsp;&nbsp;&nbsp;• the extent to which we are able to efficiently utilize our global manufacturing facilities and optimize our capacity;

&nbsp;&nbsp;&nbsp;&nbsp;• the extent to which we can control our fixed and variable costs, including those for our raw materials, manufacturing, distribution and operating activities;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in our level of debt and changes in the variable interest rates under our credit facilities; and

&nbsp;&nbsp;&nbsp;&nbsp;• the size and number of acquisitions and our ability to achieve their intended benefits.

**Current Market Conditions**

***Economic Climate***

Global economic conditions are mixed with the impacts from the uncertainty surrounding U.S. tariffs, elevated interest rates and heightened geopolitical tensions having various levels of impacts in North America, China and EMEA. On February 1, 2025, the U.S. signed an executive order, effective February 3, 2025, whereby the U.S. will apply additional tariffs on imported goods from Canada, Mexico, and China. Since that announcement, the tariffs to be applied to these three countries, and others, were suspended and/or renegotiated several times with varying results and some new negotiations delayed to take effect until later dates. The impact of the U.S. tariffs and retaliatory actions by other countries could be substantial. We are currently assessing the impacts these tariffs could have on the organization, and we believe that the international nature of our organizational structure will allow us to mitigate some of the financial impact of these potential tariffs.

The war in Ukraine continues to have widespread economic repercussions, particularly in Europe. The ongoing Israel-Hamas conflict is disrupting stability in the Middle East, raising significant concerns about the potential for further escalation across the region.

Inflation in North America, China and EMEA, while more controlled compared to the sharp increases in 2023, remains a challenge despite some cooling in the U.S. and Europe through 2024 and 2025. After reducing rates three consecutive times in 2025, the Fed held the policy rate steady at 3.50%–3.75% in January 2026, citing improving economic activity and stabilizing unemployment. After several rate cuts the European Central Bank (ECB) has held their main interest rates stable since June 2025. While these are incrementally positive actions toward deflation, both economies continue to face uncertainties such as potential tariffs and policy changes from a new presidential administration in the U.S. and potential global trade frictions, macroeconomic fragmentation and geopolitical tensions the euro area. Policy actions in China signal a shift towards more proactive fiscal measures to stabilize consumption and support economic growth. While increasing travel and consumer spending due to relaxed COVID policies have provided some bright spots in 2024 and 2025, China's economy continues to face challenges from a weakened real estate market and declining exports.

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The supply chain is generally stable, however, the ongoing Israel-Hamas conflict has periodically disrupted some shipments in the Red Sea. As a result, some ocean freight costs and transit times may temporarily increase until shipping in the region returns to normal. Generally, our mitigation efforts and ongoing lean initiatives have tempered the impact of broad market challenges.

The market demand in the forklift truck and Class 8 truck markets have been impacted by tariff policy uncertainty, causing some customers to pause larger projects and general spending activity until there is more clarity on global tariff impacts to their supply chains. The data center and communications markets tend to be less sensitive to tariff policy, with budget and spending plans based on their unique capital spending needs. The data center market is in the midst of a growth cycle driven by AI and increasing digitization. The communications market is currently in a modest, but slow spending recovery as investments in maintenance and network build outs are necessary to support the increased data required to be moved through their infrastructure. Global defense budgets are increasing in response to rising geopolitical tensions. Spending in EMEA has increased at a higher rate than in the US, as large program spending has outpaced sustainment spending with the U.S. Department of War.

***Volatility of Commodities and Foreign Currencies***

Our most significant commodity and foreign currency exposures are related to lead and the Euro, respectively. Historically, volatility of commodity costs and foreign currency exchange rates have caused large swings in our production costs. In the fiscal year 2026, we have experienced a range in lead prices from approximately $0.85 per pound to $0.95 per pound. Costs in some of our other raw materials such as steel, acid, separator paper and electronics have moderated since the middle of fiscal year 2024, but we have seen some price increases in other raw materials such as copper and antimony since the beginning of fiscal year 2026.

***Customer Pricing***

Our selling prices fluctuated during the last several years to offset the volatile cost of commodities. Approximately 25% of our revenue is now subject to agreements that adjust pricing to a market-based index for lead. Customer pricing changes generally lag movements in lead prices and other costs by approximately six to nine months. In fiscal 2025 and 2026, customer pricing increased due to certain commodity prices and other costs having increased throughout the year.

Based on current commodity markets, it is difficult to predict with certainty whether commodity prices will be higher or lower in fiscal 2026 versus fiscal 2025. However, given the lag related to increasing our selling prices for inflationary cost increase, on average our selling prices should be higher in fiscal 2026 versus fiscal 2025. As we concentrate more on energy systems and non-lead chemistries, the emphasis on lead is expected to continue to decline.

***Primary Operating Capital***

As part of managing the performance of our business, we monitor the level of primary operating capital, and its ratio to net sales. We define primary operating capital as accounts receivable, plus inventories, minus accounts payable. The resulting net amount is divided by the trailing three month net sales (annualized) to derive a primary operating capital percentage. We believe these three elements included in primary operating capital are most operationally driven, and this performance measure provides us with information about the asset intensity and operating efficiency of the business on a company-wide basis that management can monitor and analyze trends over time. Primary operating capital was $876.6 million (yielding a primary operating capital percentage of 22.2%) at March 31, 2026 and $932.2 million (yielding a primary operating capital percentage of 23.9%) at March 31, 2025. The primary operating capital percentage of 22.2% at March 31, 2026 is 170 basis points lower than that for March 31, 2025, and 120 basis points lower than that for March 31, 2024. The change in the ratio is primarily due to improved collections and asset securitization and decrease in inventory due to the release of our strategic build up in prior periods.

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Primary Operating Capital and Primary Operating Capital percentages at March 31, 2026, 2025 and 2024 are computed as follows:

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| | | | |
|:---|:---|:---|:---|
| *($ in Millions)* | **March 31, 2026** | **March 31, 2025** | **March 31, 2024** |
| Accounts receivable, net | 506.1 | 597.9 | $524.7 |
| Inventory, net | 724.7 | 740.0 | 697.7 |
| Accounts payable | (354.2) | (405.7) | (369.5) |
| Total primary operating capital | $876.6 | $932.2 | $852.9 |
| Trailing 3 months net sales | $987.9 | $974.8 | $910.7 |
| Trailing 3 months net sales annualized | $3951.6 | $3899.2 | $3642.8 |
| Primary operating capital as a % of annualized net sales | 22.2% | 23.9% | 23.4% |

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***Liquidity and Capital Resources***

We believe that our financial position is strong. We have substantial liquidity with $439 million of available cash and cash equivalents and available and undrawn, under all lines of credit of approximately $565 million at March 31, 2026 to cover short-term liquidity requirements and anticipated growth in the foreseeable future. The nominal amount of credit available is subject to a leverage ratio maximum of 4.0x EBITDA, as discussed in *Liquidity and Capital Resources.* 

During the second quarter of fiscal 2023, the Company entered into a third amendment to the 2017 Credit Facility (as amended, the "Third Amended Credit Facility"). The Third Amended Credit Facility provided new incremental delayed-draw senior secured term loan up to $300 million (the "Third Amended Term Loan"), which was available to draw until March 15, 2023. During the fourth quarter of fiscal 2023, the Company drew $300 million in the form of the Third Amended Term Loan. The funds will mature on September 30, 2026, the same as the Company's Second Amended Term loan and Second Amended Revolver.

During the fourth quarter of fiscal 2023, the Company entered into a fourth amendment to the 2017 Credit Facility (as amended, the "Fourth Amended Credit Facility"). The Fourth Amended Credit Facility replaces the London Interbank Offered Rate

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("LIBOR") with the Secured Overnight Financing Rate ("SOFR") in the calculation of interest for both the Second Amended Revolver and the Second Amended Term Loan.

During the second quarter of fiscal 2022, we entered into a second amendment to the Amended Credit Facility (as amended, the "Second Amended Credit Facility"). As a result, the Second Amended Credit Facility, now scheduled to mature on September 30, 2026, consists of a $130.0 million senior secured term loan (the "Second Amended Term Loan"), a CAD 106.4 million ($84.2 million) term loan and an $850.0 million senior secured revolving credit facility (the "Second Amended Revolver"). This amendment resulted in a decrease of the Amended Term Loan by $150.0 million and an increase of the Amended Revolver by $150.0 million.

On January 11, 2024, we issued $300 million in aggregate principal amount of our 6.625% Senior Notes due 2032 (the "2032 Notes"). Proceeds from this offering, net of debt issuance costs were $297.0 million and were utilized to pay down the Fourth Amended Credit Facility.

In the first quarter of fiscal year 2025, the Company entered into a fifth amendment to the 2017 Credit Facility (as amended, the "Fifth Amended Credit Facility"). The Fifth Amended Credit Facility replaces the Canadian Dollar Offered Rate ("CODR") with term CORRA in the calculation of interest for borrowings denominated in Canadian Dollars.

During the second quarter of fiscal 2026, the Company entered into the sixth amendment to the 2017 Credit Facility (as amended, the "Sixth Amended Credit Facility"). The Sixth Amended Credit Facility provides (i) an upsized revolving credit facility in an aggregate committed amount of $1.0 billion (the " Third Amended Revolver"), which represents an increase of $150 million from the existing revolving credit facility and which matures on September 30, 2030 and (ii) certain other modifications to the existing credit agreement as further set forth in the Sixth Amended Credit Facility. In connection with the Sixth Amended Credit Facility, (i) all of the outstanding term loans (including accrued and unpaid interest thereon) and (ii) all accrued and unpaid interest and fees on the outstanding revolving loans, in each case, under the existing credit agreement were repaid in full.

On December 23, 2024 and December 24, 2024 , the Company entered into cross-currency fixed interest rate swap contracts each with an aggregate notional amount of $150 million, maturing on June 15, 2028 and December 15, 2026, respectively.

During fiscal 2026, our operating cash flow provided cash of $547.6 million, compared to $260.3 million in the prior year. The change in the operating cash flows in fiscal 2026 was a result of effect from AMPC's (defined in Critical Accounting Policies and Estimates) recognized in the year and reduced receivables relating to improved collections and increases to our Amended RPA (defined in footnote 6 Accounts Receivable in the Consolidated Financial Statement).

In fiscal 2026 and 2025, we repurchased 3,457,688 and 1,568,292 shares of common stock for $370.7 million and $154.0 million, respectively. In fiscal 2024, we repurchased 1,002,415 shares of common stock for $95.7 million.

A substantial majority of the Company's cash and investments are held by foreign subsidiaries. The majority of that cash and investments is expected to be utilized to fund local operating activities, capital expenditure requirements and acquisitions. The Company believes that it has sufficient sources of domestic and foreign liquidity.

We believe that our strong capital structure and liquidity affords us access to capital for future capital expenditures, acquisition and stock repurchase opportunities and continued dividend payments.

**Critical Accounting Policies and Estimates**

Our significant accounting policies are described in Note 1 - Summary of Significant Accounting Policies to the Consolidated Financial Statements in Item 8. In preparing our financial statements, management is required to make estimates and assumptions that, among other things, affect the reported amounts in the Consolidated Financial Statements and accompanying notes. These estimates and assumptions are most significant where they involve levels of subjectivity and judgment necessary to account for highly uncertain matters or matters susceptible to change, and where they can have a material impact on our financial condition and operating performance. We discuss below the more significant estimates and related assumptions used in the preparation of our Consolidated Financial Statements. If actual results were to differ materially from the estimates made, the reported results could be materially affected.

*Revenue Recognition*

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In accordance with ASC 606, we recognize revenue only when we have satisfied a performance obligation through transferring control of the promised good or service to a customer. The standard indicates that an entity must determine at contract inception whether it will transfer control of a promised good or service over time or satisfy the performance obligation at a point in time through analysis of the following criteria: (i) the entity has a present right to payment, (ii) the customer has legal title, (iii) the customer has physical possession, (iv) the customer has the significant risks and rewards of ownership and (v) the customer has accepted the asset. Our primary performance obligation to our customers is the delivery of finished goods and products, pursuant to purchase orders. Control of the products sold typically transfers to our customers at the point in time when the goods are shipped as this is also when title generally passes to our customers under the terms and conditions of our customer arrangements.

Management believes that the accounting estimates related to revenue recognition are critical accounting estimates because they require reasonable assurance of collection of revenue proceeds and completion of all performance obligations. Also, revenues are recorded net of provisions for sales discounts and returns, which are established at the time of sale. These estimates are based on our past experience. For additional information see Note 1 of Notes to the Consolidated Financial Statements.

*Asset Impairment Determinations*

We test for the impairment of our goodwill and indefinite-lived trademarks at least annually and whenever events or circumstances occur indicating that a possible impairment has been incurred.

We assess whether goodwill impairment exists using both qualitative and quantitative assessments. The qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If, based on this qualitative assessment, we determine it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we elect not to perform a qualitative assessment, a quantitative assessment is performed to determine whether a goodwill impairment exists at the reporting unit.

We perform our annual goodwill impairment test on the first day of our fourth quarter for each of our reporting units based on the income approach, also known as the discounted cash flow ("DCF") method, which utilizes the present value of future cash flows to estimate fair value. We also use the market approach, which utilizes market price data of companies engaged in the same or a similar line of business as that of our company, to estimate fair value. A reconciliation of the two methods is performed to assess the reasonableness of fair value of each of the reporting units.

The future cash flows used under the DCF method are derived from estimates of future revenues, operating income, working capital requirements and capital expenditures, which in turn reflect our expectations of specific global, industry and market conditions. The discount rate developed for each of the reporting units is based on data and factors relevant to the economies in which the business operates and other risks associated with those cash flows, including the potential variability in the amount and timing of the cash flows. A terminal growth rate is applied to the final year of the projected period and reflects our estimate of stable growth to perpetuity. We then calculate the present value of the respective cash flows for each reporting unit to arrive at the fair value using the income approach and then determine the appropriate weighting between the fair value estimated using the income approach and the fair value estimated using the market approach. Finally, we compare the estimated fair value of each reporting unit to its respective carrying value in order to determine if the goodwill assigned to each reporting unit is potentially impaired. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

Significant assumptions used include management's estimates of future growth rates, the amount and timing of future operating cash flows, capital expenditures, discount rates, as well as market and industry conditions and relevant comparable company multiples for the market approach. Assumptions utilized are highly judgmental, especially given the role technology plays in driving the demand for products in the telecommunications and aerospace markets.

Based on the results of the annual impairment test as of December 29, 2025, we determined that there was no goodwill impairment.

The indefinite-lived trademarks are tested for impairment by comparing the carrying value to the fair value based on current revenue projections of the related operations, under the relief from royalty method. Any excess carrying value over the amount of fair value is recognized as impairment. Any impairment would be recognized in full in the reporting period in which it has been identified.

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Based on the results of the annual impairment test as of December 29, 2025, we determined that there were no impairments to indefinite-lived trademarks. For additional information see Note 8 Notes to the Consolidated Financial Statements.

With respect to our other long-lived assets other than goodwill and indefinite-lived trademarks, we test for impairment when indicators of impairment are present. An asset is considered impaired when the undiscounted estimated net cash flows expected to be generated by the asset are less than its carrying amount. The impairment recognized is the amount by which the carrying amount exceeds the fair value of the impaired asset.

*Business Combinations*

We account for business combinations in accordance with ASC 805, Business Combinations. We recognize assets acquired and liabilities assumed in acquisitions at their fair values as of the acquisition date, with the acquisition-related transaction and

restructuring costs expensed in the period incurred. Determining the fair value of assets acquired and liabilities assumed often involves estimates based on third-party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses and may include estimates of attrition, inflation, asset growth rates, discount rates, multiples of earnings or other relevant factors. In addition, fair values are subject to refinement for up to a year after the closing date of an acquisition. Adjustments recorded to the acquired assets and liabilities are applied prospectively.

Fair values are based on estimates using management's assumptions using future growth rates, future attrition of the customer base, discount rates, multiples of earnings or other relevant factors.

Any change in the acquisition date fair value of assets acquired and liabilities assumed may materially affect our financial position, results of operations and liquidity.

*Litigation and Claims*

From time to time, the Company has been or may be a party to various legal actions and investigations including, among others, employment matters, compliance with government regulations, federal and state employment laws, including wage and hour laws, contractual disputes and other matters, including matters arising in the ordinary course of business. These claims may be brought by, among others, governments, customers, suppliers and employees. Management considers the measurement of litigation reserves as a critical accounting estimate because of the significant uncertainty in some cases relating to the outcome of potential claims or litigation and the difficulty of predicting the likelihood and range of potential liability involved, coupled with the material impact on our results of operations that could result from litigation or other claims.

In determining legal reserves, management considers, among other inputs:

&nbsp;&nbsp;&nbsp;&nbsp;• interpretation of contractual rights and obligations;

&nbsp;&nbsp;&nbsp;&nbsp;• the status of government regulatory initiatives, interpretations and investigations;

&nbsp;&nbsp;&nbsp;&nbsp;• the status of settlement negotiations;

&nbsp;&nbsp;&nbsp;&nbsp;• prior experience with similar types of claims;

&nbsp;&nbsp;&nbsp;&nbsp;• whether there is available insurance coverage; and

&nbsp;&nbsp;&nbsp;&nbsp;• advice of outside counsel.

For certain matters, management is able to estimate a range of losses. When a loss is probable, but no amount of loss within a range of outcomes is more likely than any other outcome, management will record a liability based on the low end of the estimated range. Additionally, management will evaluate whether losses in excess of amounts accrued are reasonably possible, and will make disclosure of those matters based on an assessment of the materiality of those addition possible losses.

*Environmental Loss Contingencies*

Accruals for environmental loss contingencies (i.e., environmental reserves) are recorded when it is probable that a liability has been incurred and the amount can reasonably be estimated. Management views the measurement of environmental reserves as a critical accounting estimate because of the considerable uncertainty surrounding estimation, including the need to forecast well into the future. From time to time, we may be involved in legal proceedings under federal, state and local, as well as international environmental laws in connection with our operations and companies that we have acquired. The estimation of environmental reserves is based on the evaluation of currently available information, prior experience in the remediation of contaminated sites and assumptions with respect to government regulations and enforcement activity, changes in remediation technology and practices, and financial obligations and creditworthiness of other responsible parties and insurers.

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*Income Taxes*

Our effective tax rate is based on pretax income and statutory tax rates available in the various jurisdictions in which we operate. We account for income taxes in accordance with applicable guidance on accounting for income taxes*,* which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between book and tax bases on recorded assets and liabilities. Accounting guidance also requires that deferred tax assets be reduced by a valuation allowance, when it is more likely than not that a tax benefit will not be realized.

The recognition and measurement of a tax position is based on management's best judgment given the facts, circumstances and information available at the reporting date. We evaluate tax positions to determine whether the benefits of tax positions are more likely than not of being sustained upon audit based on the technical merits of the tax position. For tax positions that are more likely than not of being sustained upon audit, we recognize the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are not more likely than not of being sustained upon audit, we do not recognize any portion of the benefit in the financial statements. If the more likely than not threshold is not met in the period for which a tax position is taken, we may subsequently recognize the benefit of that tax position if the tax matter is effectively settled, the statute of limitations expires, or if the more likely than not threshold is met in a subsequent period.

We evaluate, on a quarterly basis, our ability to realize deferred tax assets by assessing our valuation allowance and by adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are our forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets.

To the extent we prevail in matters for which reserves have been established, or are required to pay amounts in excess of our reserves, our effective tax rate in a given financial statement period could be materially affected.

*Production Tax Credits Under the Inflation Reduction Act*

We continue to evaluate the extent of benefits available to us pursuant to the IRA, which we expect will favorably impact our results of operations in future periods. We currently expect to continue to qualify for the advanced manufacturing production credit (AMPC) under Section 45X of the IRC, which provides certain specified benefits for battery cells, battery modules manufactured or assembled in the United States and sold to third parties, as well for active electrode materials for such batteries. For eligible batteries the credit is equal to $35 multiplied by the capacity of such battery cell expressed on a kilowatt-hour basis. For eligible battery module the credit is equal to $10 multiplied by the capacity of such battery module expressed on a kilowatt-hour basis. For eligible electrode active material the credit is equal to 10% of the costs incurred with respect to the production of such materials.

During the year ended March 31, 2026 and March 31, 2025, we recognized $158.6 million and $184.6 million, respectively, of Section 45X credits as a reduction to "Cost of sales". There are currently several critical and complex aspects of the IRA. The uncertainty of changes to the current guidance could materially affect the benefits we have recognized and expect to recognize from the advanced manufacturing production credit. We will continue to evaluate the effects of IRA to the extent additional guidance is issued and the relevant implications to our Consolidated Financial Statements.

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**Results of Operations—Fiscal 2026 Compared to Fiscal 2025** 

The following table presents summary Consolidated Statements of Income data for fiscal year ended March 31, 2026, compared to fiscal year ended March 31, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **%** |
| Net sales | $3751.4 | 100.0% | $3617.6 | 100.0% | $133.8 | 3.7% |
| Cost of goods sold | 2651.5 | 70.7 | 2521.5 | 69.7 | 130.0 | 5.2 |
| Inventory adjustment relating to exit activities and step up to fair value relating to recent acquisitions | 2.3 | 0.1 | 3.6 | 0.1 | (1.3) | (37.2) |
| Gross profit | 1097.6 | 29.2 | 1092.4 | 30.2 | 5.2 | 0.5 |
| Operating expenses | 621.0 | 16.6 | 608.7 | 16.8 | 12.3 | 2.0 |
| Restructuring and other exit charges | 51.0 | 1.4 | 14.4 | 0.4 | 36.6 | NM |
| Impairment of indefinite-lived intangibles | 0.4 | NM |  |  | 0.4 | NM |
| (Gain)Loss on assets held for sale | (1.2) | NM | 4.6 | 0.2 | (5.8) | NM |
| Operating earnings | 426.4 | 11.4 | 464.7 | 12.8 | (38.3) | (8.2) |
| Interest expense | 50.5 | 1.4 | 51.2 | 1.4 | (0.7) | (1.2) |
| Other (income) expense, net | 28.5 | 0.8 | 7.0 | 0.2 | 21.5 | NM |
| Earnings before income taxes | 347.4 | 9.3 | 406.5 | 11.2 | (59.1) | (14.6) |
| Income tax expense | 53.8 | 1.4 | 42.8 | 1.2 | 11.0 | 25.7 |
| Net earnings attributable to EnerSys stockholders | $293.6 | 7.8% | $363.7 | 10.0% | $(70.1) | (19.3)% |

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NM = not meaningful

***Overview***

Our sales in fiscal 2026 were $3.8 billion, a 3.7% increase from prior year's sales. This increase was due to a 3% increase in pricing, a 2% increase in foreign currency translation, and a 1% increase from acquisitions, partially offset by a 2% decrease in organic volume.

A discussion of specific fiscal 2026 versus fiscal 2025 operating results follows, including an analysis and discussion of the results of our reportable segments.

***Net Sales***

*Segment sales*

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|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **% Net<br>Sales** | **In<br>Millions** | **% Net<br>Sales** | **In<br>Millions** | **%&nbsp;&nbsp;&nbsp;&nbsp;** |
| Energy Systems | $1651.3 | 43.1% | $1531.1 | 42.3% | $120.2 | 7.8% |
| Motive Power | 1431.0 | 37.5 | 1484.1 | 41.0 | (53.1) | (3.6) |
| Specialty | 665.1 | 19.4 | 593.6 | 16.4 | 71.5 | 12.1 |
| Other | 4.0 |  | 8.8 | 0.3 | (4.8) | (52.6)% |
| Total net sales | $3751.4 | 100.0% | $3617.6 | 100.0% | $133.8 | 3.7% |

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Net sales of our Energy Systems segment in fiscal 2026 increased $120.2 million, or 7.8%, compared to fiscal 2025. This increase was due to a 3% increase in organic volume, a 3% increase in pricing, and a 2% increase in foreign currency translation. This increase in sales was driven by a continuing robust demand from data center and industrial customers and stronger product mix in communications.

Net sales of our Motive Power segment in fiscal 2026 decreased by $53.1 million, or 3.6%, compared to fiscal 2025. This decrease was due to a 8% decrease in organic volume, offset by a 2% increase in foreign currency translation, and a 2% increase in pricing. This decrease is primarily a result of lower volumes in the Americas due to ongoing macro and geopolitical uncertainties impacting customer buying behaviors market-wide and lingering weakness in the EMEA automotive market.

Net sales of our Specialty segment in fiscal 2026 increased by $71.5 million, or 12.1%, compared to fiscal 2025. The increase was due to a 8% increase from acquisitions, and a 4% increase in pricing. This increase in sales was primarily driven by continued strength in Aerospace and Defense including impacts from the Bren-Tronics acquisition, partially offset by softer demand in OEM transportation customers.

***Gross Profit***

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|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **%** |
| Gross profit | $1097.6 | 29.2% | $1092.4 | 30.2% | $5.2 | 0.5% |

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Gross profit increased $5.2 million or 0.5% in fiscal 2026 compared to fiscal 2025. Gross profit, as a percentage of net sales decreased 100 basis points in fiscal 2026 compared to fiscal 2025. The decrease in the gross profit margin in fiscal 2026 compared to the prior year reflects greater IRC 45x benefits in fiscal 2025 as prior year included a change in estimate impacting prior amounts to IRC 45X tax credits.

***Operating Items***

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|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **%** |
| Operating expenses | $621.0 | 16.6% | $608.7 | 16.8% | $12.3 | 2.0% |
| Restructuring, exit and other charges | 51.0 | 1.4 | 14.4 | 0.4 | 36.6 | NM |
| Impairment of indefinite-lived intangibles | 0.4 | NM |  |  | 0.4 | NM |
| (Gain)Loss on assets held for sale | (1.2) | NM | 4.6 | 0.2 | (5.8) | NM |

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***Operating Expenses***

Operating expenses increased $12.3 million or 2.0% in fiscal 2026 from fiscal 2025 and decreased as a percentage of net sales by 20 basis points. The decrease as a percentage of sales was due to due to our cost saving and restructuring initiates offsetting additional accelerated stock compensation expense of $10.8 million.

Selling expenses, our main component of operating expenses, increased $2.2 million or 1.0% in fiscal 2026 compared to fiscal 2025. Selling expenses as a percentage of sales in the year decreased slightly as a result of our cost reduction initiatives.

***Restructuring, exit and other charges***

*Exit Charges*

*Fiscal 2026 Programs*

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On March 25, 2026, EnerSys announced a plan to close its facility in Tijuana, Mexico, which focused on manufacturing lead acid batteries. Management determined that the closure was appropriate as part of its efforts to optimize its cost structure, maximize near-term advanced manufacturing production tax benefits, and mitigate future risks associated with potential tariffs while reinforcing EnerSys' commitment to strengthening domestic industrial capacity and supply chain resilience. In connection with this restructuring plan, which is estimated to be substantially complete by December 2027, EnerSys plans to sell the land and buildings and possibly the plant and equipment to other parties. In addition, EnerSys estimates that there will be a reduction of approximately 474 employees upon completion. EnerSys expects to incur a pre-tax charge of approximately $37 million under this restructuring plan when completed, the majority of which is expected to be incurred by the second half of fiscal year 2027, of which $14 million is expected to be non-cash charges primarily from accelerated depreciation. Cash charges of approximately $23 million, include severance and employee retention costs, environmental related expenses and equipment decommissioning, along with contractual releases and legal expenses.

During fiscal 2026, the Company recorded a $11.0 million in severance costs.

On March 25, 2026, EnerSys announced a plan to close its facility in Sao Paulo, Brazil. Management continually evaluates the Company's footprint and decided to exit this facility due to the challenging local economic environment. In connection with this closure, which is estimated to be substantially complete by the end of fiscal 2027, the Company estimates there will be a reduction of approximately 141 employees. EnerSys expects to incur a pre-tax charge of approximately $7.5 million under this restructuring plan, of which include cash charges of approximately $4.5 million, primarily related to severance and employee retention costs, and other cash and non-cash items.

During fiscal 2026, the Company recorded $3.0 million in cash charges relating to severance and contract termination costs and $1.8 million in non cash charges relating to ROU and fixed asset impairments.

On April 1, 2025, the Company's Board of Directors approved a plan to close its facility in Monterrey, Mexico, which focused on manufacturing flooded motive power batteries. Management determined that future demand for traditional motive power flooded cells will decrease as customers transition to maintenance free product solutions in lithium and Thin Plate Pure Lead (TPPL). Production of products being manufactured in Monterrey, Mexico will be moved to EnerSys' existing facility in Richmond, Kentucky. The Company expects to incur a pre-tax charge of approximately $13.7 million under this restructuring plan when completed, the majority of which was recorded by the end of the 2026 fiscal year, of which $1.5 million is expected to be a non-cash charge from fixed asset and inventory charges. Cash charges of approximately $12.2 million, include severance and employee retention costs, environmental related expenses and equipment decommissioning, along with contractual releases and legal expenses.

During fiscal 2026, the Company recorded a cash charges totaling $5.2 million primarily relating to severance costs and unusual manufacturing variances of $2.3 million.

*Fiscal 2024 Programs*

*Renewables* 

On November 8, 2023, the Company's Board of Directors approved a plan to stop production and operations of residential renewable energy products, which include the OutBack and Mojave brands. Management determined that residential renewable energy products no longer fit with the Company's core strategy and resources will be better allocated toward commercial energy solutions for enterprise customers. The plan was completed as the end of fiscal 2025.

During fiscal 2024, the Company recorded non-cash charges totaling $0.6 million primarily related to fixed assets and cash charges of $0.7 million related to severance costs. The Company also recorded a non-cash write offs relating to inventories of $17.1 million, which was reported in cost of goods sold, and impairment of indefinite-lived intangible asset of $6.0 million.

During fiscal 2025, the Company recorded non-cash charges totaling $0.3 million related to fixed asset write offs and inventories of $0.3 million.

*Spokane* 

On November 8, 2023, the Company committed to a plan to close its facility in Spokane, Washington, which primarily manufactures enclosure systems for telecommunications and related end markets. Management determined that existing manufacturing locations have the capacity to satisfy demand for these products and will execute more efficient distribution to customers. The plan was completed as of the end of fiscal 2025.

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During fiscal 2024, the Company recorded cash charges of $1.3 million primarily related to severance costs and non-cash charges totaling $2.1 million related to lease right of use asset and fixed asset write offs.

During fiscal 2025, the Company recorded cash charges of $0.7 million primarily related to manufacturing variances.

*Fiscal 2023 Programs*

*Sylmar*

In November 2022, the Company committed to a plan to close its facility in Sylmar, California, which manufactures specialty lithium batteries for aerospace and medical applications. Management determined to close the site upon the expiration of its lease on the property and to redirect production through consolidation into existing locations. The plan was completed as of the end of fiscal 2025.

During fiscal 2023, the Company recorded cash charges of $1.7 million related primarily related to severance costs and non-cash charges totaling $0.4 million primarily relating to contract assets.

During fiscal 2024, the Company recorded cash charges of $7.2 million primarily related to severance costs, relocation expenses, and manufacturing variances and non-cash charges totaling $0.4 million. The Company also recorded a non-cash write off relating to inventories of $3.1 million, which was reported in cost of goods sold.

During fiscal 2025, The Company recorded cash charges of $0.9 million primarily related to relocation costs.

*Ooltewah*

On June 29, 2022, the Company committed to a plan to close its facility in Ooltewah, Tennessee, which produced flooded motive power batteries for electric forklifts. Management determined that future demand for traditional motive power flooded cells will decrease as customers transition to maintenance free product solutions in lithium and TPPL. These actions resulted in the reduction of approximately 165 employees. The plan was completed as of the end of fiscal 2026.

During fiscal 2023, the Company recorded cash charges relating to severance and manufacturing variances of $2.7 million and non-cash charges of $7.3 million relating to fixed asset write-offs. The Company also recorded a non-cash write off relating to inventories of $1.6 million, which was reported in cost of goods sold.

During fiscal 2024, the Company recorded cash charges relating to site cleanup and decommissioning equipment of $4.4million.

During fiscal 2025, the Company recorded $0.5 million cash charges relating to site cleanup.

During fiscal 2026, the Company recorded a $1.1 million gain of the sale of the building.

*Fiscal 2021 Programs*

*Hagen, Germany*

In fiscal 2021, the Company's Board of Directors approved a plan to substantially close all of its facility in Hagen, Germany, which produces flooded motive power batteries for forklifts. Management determined that future demand for the motive power batteries produced at this facility was not sufficient, given the conversion from flooded to maintenance free batteries by customers, the existing number of competitors in the market, as well as the near term decline in demand and increased

uncertainty from the pandemic. The Company plans to retain the facility with limited sales, service and administrative functions along with related personnel for the foreseeable future. These actions resulted in the reduction of approximately 200 employees. This program is considered substantially complete as of the end of fiscal 2026.

During fiscal 2021, the Company recorded cash charges relating to severance of $23.3 million and non-cash charges of $7.9 million primarily relating to fixed asset write-offs.

During fiscal 2022, the Company recorded cash charges primarily relating to severance of $8.1 million and non-cash charges of $3.5 million primarily relating to fixed asset write-offs. The Company also recorded a non-cash write off relating to inventories of $1.0 million, which was reported in cost of goods sold.

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During fiscal 2023, the Company recorded cash charges of $2.2 million relating to primarily to site cleanup and $0.6 million of non-cash charges relating to accelerated depreciation of fixed assets.

During fiscal 2024, the Company recorded cash charges of $2.1 million relating primarily to site cleanup and $0.5 million of non-cash charges relating to accelerated depreciation of fixed assets.

During fiscal 2025, the Company recorded cash charges of $3.6 million relating primarily to site cleanup and $0.6 million of non-cash charges relating to accelerated depreciation of fixed assets.

During fiscal 2026, the Company recorded cash charges of $2.4 million relating primarily to site cleanup and $0.1 million of non-cash charges relating to accelerated depreciation of fixed assets. Additionally, the Company recorded a gain on assets held for sale previously impaired of $1.2 million.

***Impairment of indefinite-lived intangibles***

During fiscal 2026 there were $0.4 million of charges related to impairment of indefinite-lived trademarks.

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***Operating Earnings***

Operating earnings by segment were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **As %**<br>**Net Sales**<sup>(1)</sup> | **In**<br>**Millions**  | **As %**<br>**Net Sales**<sup>(1)</sup> | **In<br>Millions** | **%** |
| Energy Systems | $145.5 | 8.8% | $103.2 | 6.7% | $42.3 | 40.9% |
| Motive Power | 199.8 | 14.0 | 232.8 | 15.7 | (33.0) | (14.2) |
| Specialty | 62.1 | 9.3 | 37.0 | 6.2 | 25.1 | 67.8 |
| Corporate and other <sup>(2)</sup> | 132.8 | 3.5 | 155.1 | 4.3 | (22.3) | (14.3) |
| Subtotal | 540.2 | 14.4 | 528.1 | 14.6 | 12.1 | 2.3 |
| Inventory adjustment relating to exit activities - Energy Systems |  |  | (0.3) | NM | 0.3 | NM |
| Inventory adjustment relating to exit activities - Motive Power | (2.3) | (0.2) |  |  | (2.3) | NM |
| Inventory adjustment relating to exit activities and step up to fair value relating to recent acquisitions - Specialty |  |  | (3.3) | (0.6) | 3.3 | NM |
| Accelerated stock compensation expense - Energy Systems | (5.6) | (0.3) |  |  | (5.6) | NM |
| Accelerated stock compensation expense - Motive Power | (3.4) | (0.2) |  |  | (3.4) | NM |
| Accelerated stock compensation expense - Specialty | (1.8) | (0.3) |  |  | (1.8) | NM |
| Restructuring and other exit charges - Energy Systems | (23.4) | (0.4) | (6.0) | (0.4) | (17.4) | NM |
| Restructuring and other exit charges - Motive Power | (24.0) | (0.4) | (5.7) | (0.4) | (18.3) | NM |
| Restructuring and other exit charges - Specialty | (3.5) | (0.5) | (2.7) | (0.5) | (0.8) | (29.6) |
| Restructuring and other exit charges - Corporate Other | (0.1) | NM |  |  | (0.1) | NM |
| (Gain)Loss on assets held for sale - Motive Power | 1.2 | 0.1 | (4.6) | (0.3) | 5.8 | NM |
| Total Amortization - Energy Systems | (23.5) | (1.5) | (23.6) | (1.5) | 0.1 | 0.1 |
| Total Amortization - Motive Power | (0.4) | NM | (0.7) | NM | 0.3 | 42.9 |
| Total Amortization - Specialty | (9.6) | (1.4) | (7.5) | (1.3) | (2.1) | (28.0) |
| Impairment of indefinite-lived intangibles - Energy Systems | (0.4) | NM |  |  | (0.4) | NM |
| Other - Energy Systems | (7.3) | (0.4) | (0.6) | NM | (6.7) | NM |
| Other - Motive Power | (3.9) | (0.3) | (1.7) | (0.1) | (2.2) | NM |
| Other - Specialty | (5.8) | (0.9) | (6.7) | (1.1) | 0.9 | 7.5 |
| Total operating earnings | $426.4 | 11.4% | $464.7 | 12.8% | $(38.3) | (8.2)% |

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&nbsp;&nbsp;&nbsp;&nbsp;NM = not meaningful

(1) The percentages shown for the segments are computed as a percentage of the applicable segment's net sales; Corporate and other is computed based on total consolidated net sales.

(2) Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRA production tax credits. Also, included are start-up costs for exploration and construction of a new lithium plant as well as sales and expenses from the New Ventures operating segment.

Operating earnings decreased $38.3 million or 8.2% in fiscal 2026, compared to fiscal 2025. Operating earnings, as a percentage of net sales, decreased 140 basis points in fiscal 2026, compared to fiscal 2025.

The Energy Systems operating earnings percentage of net sales increased 210 basis points in fiscal 2026 compared to fiscal 2025. This increase was driven by improved price/mix. We also continue to benefit from lower operating costs from tight cost controls and restructuring initiatives.

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The Motive Power operating earnings as a percentage of net sales decreased 170 basis points in fiscal 2026 compared to fiscal 2025. This decrease was driven by higher freight and tariff costs and lost leverage on lower volumes partially offset by higher pricing and our cost reduction initiatives.

Specialty operating earnings percentage of net sales increased 310 basis points in fiscal 2026 compared to fiscal 2025. This increase was primarily a result of continued benefit of the Bren-Tronics acquisition and favorable price/mix.

***Interest Expense***

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|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **%** |
| Interest expense | $50.5 | 1.4% | $51.2 | 1.4% | $(0.7) | (1.2)% |

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Interest expense of $50.5 million in fiscal 2026 (net of interest income of $9.3 million) was $0.7 million lower than the $51.2 million in fiscal 2025 (net of interest income of $3.1 million).

Our average debt outstanding was $1,212.6 million in fiscal 2026, compared to our average debt outstanding of $1,129.8 million in fiscal 2025. Our average cash interest rate incurred in fiscal 2026 and fiscal 2025 was 4.8% and 4.3%, respectively. The decrease in interest expense in fiscal 2026 compared to fiscal 2025 is due to lower interest rates on long-term debt.

In fiscal 2026 the Company capitalized $3.5 million in debt issuance costs in connection with the Sixth Amendment of the 2017 Credit Facility and wrote off $0.3 million in deferred financing costs related to the Second and Third Amended Term Loans. In fiscal 2024 and 2025, we capitalized $4.4 million in debt issuance costs in connection with the 2032 Senior Notes and wrote off $0.8 million in issuance costs relating to our Second and Third Amended Term Loans. Included in interest expense were non-cash charges related to amortization of deferred financing fees of $1.9 million and $1.9 million in fiscal 2026 and fiscal 2025, respectively.

***Other (Income) Expense, Net***

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|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **%** |
| Other (income) expense, net | $28.5 | 0.8% | $7.0 | 0.2% | $21.5 | NM |

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Other (income) expense, net was expense of $28.5 million in fiscal 2026 compared to expense of $7.0 million in fiscal 2025. Foreign currency impact resulted in a loss of $7.4 million in fiscal 2026 compared to a foreign currency gain of $3.3 million in fiscal 2025. Cost of funds associated with our asset securitization totaled $9.2 million in fiscal 2026 compared to $8.7 million in fiscal 2025. We incurred additional pension related expenses relating to the settlement of the UK plan totalling $9.7 million in fiscal 2026 compared to a gain of $1.5 million relating to the settlement of the U.S. plans in fiscal 2025.

***Earnings Before Income Taxes***

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|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **%** |
| Earnings before income taxes | $347.4 | 9.3% | $406.5 | 11.2% | $(59.1) | (14.6)% |

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As a result of the factors discussed above, fiscal 2026 earnings before income taxes were $347.4 million, a decrease of $59.1 million or 14.6% compared to fiscal 2025.

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***Income Tax Expense***

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **As %<br>Net Sales** | **In<br>Millions** | **%** |
| Income tax expense | $53.8 | 1.4% | $42.8 | 1.2% | $11.0 | 25.7% |
| Effective tax rate | 15.5% |  | 10.5% |  | 5.0% |  |

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The Organization for Economic Co-operation and Development (OECD) has adopted model rules to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2), with certain aspects of Pillar 2 effective for taxable years beginning after December 31, 2023.

On January 5, 2026, the OECD issued the Side-by-Side package (the "SbS Package"), which provides administrative guidance that modifies the application of the Pillar Two rules. The SbS Package includes simplifications and additional safe harbors intended to facilitate coordination between domestic and international tax regimes and the Pillar Two framework. If adopted by relevant jurisdictions, certain provisions of the SbS Package could result in U.S.-parented groups being exempt from the application of two of the three Pillar Two top-up taxes.

The SbS Package is expected to be available for fiscal years beginning on or after January 1, 2026. The safe harbors are not self-executing and generally would require enactment through domestic legislation (and related interpretive guidance) by each Inclusive Framework member, subject to local legislative processes and timelines, as well as potential guidance related to the European Union ("EU") Minimum Tax Directive. The Company continues to monitor developments and assess the potential impact of the SbS Package on its results of operations. In addition, the SbS Package extends the Transitional Country-by-Country Reporting ("CbCR") Safe Harbor by one year, through the end of fiscal year 2027. The Company continues to refine the effective tax rate and cash tax impact for Pillar 2 considering legislative changes in multiple countries.

On July 4, 2025, the "One Big Beautiful Bill Act" ("OBBBA") was enacted into law. The law included permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and changes to the tax treatment for certain business provisions and energy credits.

The impact of the enacted legislation is included in our effective tax rate. The Company will continue to monitor and evaluate as new legislation and guidance is issued.

On August 26, 2024, the U.S. Tax Court issued a ruling in *Varian Medical Systems, Inc. v. Commissioner ("Varian")*. The ruling related to the U.S. taxation of deemed foreign dividends in the transition tax of the Tax Cuts and Jobs Act ("Tax Act") which was originally recorded in fiscal 2018. The impact of the ruling was included in our fiscal 2025 results.

In fiscal 2025 the Company entered into a cost sharing arrangement and platform contribution transaction ("IP Transaction") related to certain intellectual property between the EnerSys U.S. and a Swiss subsidiary. Although the transaction between consolidated entities did not result in any gain in the consolidated statement of operations, the Company recorded a net tax expense of approximately $2,500 in fiscal 2025 and $5,897 in fiscal 2026. The net expense represents the tax recognized by the selling jurisdiction offset by the value of future tax deductions for amortization of the assets in the acquiring jurisdiction.

The effective income tax rates for the fiscal years ended March 31, 2026, and 2025 were 15.5%, and 10.5%, respectively. The effective income tax rate with respect to any period may be volatile based on the mix of income in the tax jurisdictions in which the Company operates and the amount of its consolidated income before taxes. The rate increase in fiscal 2026 compared to fiscal 2025 is primarily due to the impact of changes in valuation allowances, IP Transaction, the impact of *Varian* in fiscal 2025, and mix of earnings among tax jurisdictions. The rate increase in fiscal 2025 compared to fiscal 2024 is primarily due to the impact of Pillar 2, IP Transaction, and mix of earnings among tax jurisdictions offset by the impact of *Varian*.

In fiscal 2026, the foreign effective income tax rate on foreign pre-tax income of $150.7 was 24.2%. In fiscal 2025, the foreign effective income tax rate on foreign pre-tax income of $205.2 was 0.1% and in fiscal 2024, the foreign effective income tax rate on foreign pre-tax income of $193.0 was 13.8%. The rate increase in fiscal 2026 compared to fiscal 2025 is primarily due to the impact of changes in valuation allowances, IP Transaction, and changes in mix of earnings among tax jurisdictions. The rate decrease in fiscal 2025 compared to fiscal 2024 is primarily due to the IP Transaction offset by changes in mix of earnings among tax jurisdictions.

Income from the Company's Swiss subsidiary comprised a substantial portion of its overall foreign mix of income for the fiscal years ended March 31, 2026, and 2025 and was taxed at approximately 16% and 13% respectively.The rate increase in fiscal 2026 compared to fiscal 2025 is primarily related to the IP Transaction.

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A portion of the Company's undistributed earnings of foreign subsidiaries is not considered indefinitely reinvested and, accordingly, the Company recorded additional income taxes in prior years. The Company intends to continue to indefinitely reinvest the remaining undistributed foreign earnings and outside basis differences. While substantially all of the Company's undistributed earnings of foreign subsidiaries have been taxed in the United States, distributions may be subject to foreign withholding taxes and additional U.S. income taxes (net of applicable foreign tax credits). The determination of the deferred tax liability related to unremitted earnings and outside basis differences for which the Company asserts indefinite reinvestment is not practicable.

**Liquidity and Capital Resources**

***Cash Flow and Financing Activities***

Cash and cash equivalents at March 31, 2026, 2025 and 2024, were $438.7 million, $343.1 million and $333.3 million, respectively.

Cash provided by operating activities for fiscal 2026 was $547.6 million. Cash provided by operating activities for 2025 was $260.3 million and cash provided by operating activities in 2024 was $457.0 million.

During fiscal 2026, accounts receivable decreased or provided cash of $104.7 million due to improved collections and impacts of our Amended Receivables Purchase Agreement. Accounts payable decreased or used cash of $52.6 million, Inventory decreased or provided cash of $25.9 million. Net earnings were $293.6 million with adjustments of depreciation and amortization for $113.6 million, provision for deferred taxes for $14.4 million, and stock-based compensation for $37.6 million. Prepaid and other current assets increased by $65.2 million, primarily from an increases of $30.3 million of prepaid taxes, $21.7 million of contract assets, $13.2 million in other prepaid expenses, such as insurance and other advances. Accrued expenses provided funds of $55.0 million primarily from increases of $19.4 million for deferred income, $2.3 in miscellaneous accruals, payroll related accruals of $10.0 million, freight accruals of $8.1 million, accrued warranty of $7.7 million, accrued restructuring of $4.8 million and contract liabilities of $3.9 million, partially offset by a decrease of $1.4 million for income tax payable.

During fiscal 2025, accounts receivable increased or used cash of $81.8 million due to higher sales in March and additional outstanding balances from Bren-Tronics as compared to the prior year. Accounts payable increased or provided cash of $36.6 million, Inventory decreased or provided cash of $1.3 million. Net earnings were $363.7 million, depreciation and amortization $100.9 million, provision for deferred taxes $31.9 million, stock-based compensation $27.8 million, and non-cash charges for losses on assets held for sale of $4.6 million. Prepaid and other current assets increased by $220.0 million, primarily from an increase of $192.1 million of prepaid taxes, $16.3 million of contract assets, $12.8 million in other prepaid expenses, such as insurance and other advances, offset by a decrease of $1.2 million of other current assets. Accrued expenses provided funds of $54.4 million primarily from increases of $44.5 for increases of income tax payable and by increases to accrued interest net of payments of $6.4, accrued warranty of $6.0 million, and payroll related accruals of $4.7 million, partially offset by a $7.3 decrease in miscellaneous accruals.

During fiscal 2024, accounts receivable decreased or provided cash of $108.6 million due to lower sales and strong collection efforts. Inventory decreased or provided cash of $75.6 million due to lower sales. Accounts payable decreased or used cash of $15.1 million. Net earnings were $269.1 million, depreciation and amortization $92.0 million, stock-based compensation $30.6 million, non-cash charges relating to exit charges of $24.2 million, primarily relating to the Renewables, Spokane, and Sylmar plant closures, non-cash interest of $2.5 million, and non-cash charges for impairment of indefinite-lived intangibles of $13.6 million. Prepaid and other current assets increased by $112.7 million, primarily from an increase of $93.8 million of prepaid taxes, $6.6 million of contract assets, as well as an increase of $12.3 million in other prepaid expenses, such as insurance and other advances. Accrued expenses used funds of $8.3 million primarily from decreases of $15.3 for payment of taxes and $10.4 million of contract liabilities partially offset by increases to payroll related accruals of $4.0 million, warranty of $4.5 million, and $8.9 million relating to miscellaneous accruals.

Cash used in investing activities for fiscal 2026, 2025 and 2024 was $87.9 million, $336.4 million and $92.5 million, respectively.

During fiscal 2026 we had $12.7 million related to the acquisition of Rebel. During fiscal 2025 we had $206.4 million related to the acquisition of Bren-Tronics. In fiscal 2024 we had $8.3 million related to the acquisition of Industrial Battery and Charger Services Limited (IBCS).

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Capital expenditures were $80.1 million, $121.0 million and $86.4 million in fiscal 2026, 2025 and 2024, respectively. In fiscal 2026, we received $4.9 million in proceeds from disposal of property, plant, and equipment. In fiscal 2025, we received $1.9 million in proceeds from disposal of property, plant, and equipment, and a cash outflow of $10.9 million related to investments in equity securities. In fiscal 2024, we received $2.2 in proceeds from the disposal of property, plant, and equipment.

Financing activities used cash of $380.7 in Fiscal 2026. We borrowed $619.6 million under the Revolver and repaid $412.0 million of the Revolver. We repaid $210.0 million of term loans associated with our Sixth Amended Credit Facility. Net repayments on short-term debt were $0.2 million. Payment of cash dividends to our stockholders were $38.1 million, treasury stock open market purchases were $370.7 million, and payment of taxes related to net share settlement of equity awards were $8.8 million. We received proceeds from stock options of $42.0 million, and payments for financing costs for debt modification were $3.5 million.

Financing activities provided cash of $90.3 million in fiscal 2025. We borrowed $650 million under the Second Amended Revolver and repaid $370.0 million of the Second Amended Revolver. Net repayments on short-term debt were $0.3 million. Payment of cash dividends to our stockholders were $37.5 million, treasury stock open market purchases were $154.0 million, and payment of taxes related to net share settlement of equity awards were $8.0 million. We received proceeds from stock options of $9.5 million.

Financing activities used cash of $370.6 million in fiscal 2024. During fiscal 2024, the Company issued $300 million in Senior Notes, due January 15, 2032. The proceeds from Senior Notes were used to pay down our second and third amended term loans in the amount of $293.9. Additionally, we borrowed $182.5 million under the Second Amended Revolver and repaid $427.5 million of the Second Amended Revolver. Net repayments on short-term debt were $0.2 million. Payment of cash dividends to our stockholders were $34.5 million, treasury stock open market purchases were $95.7 million, and payment of taxes related to net share settlement of equity awards were $9.2 million. Proceeds from stock options were $10.8 million, and payments for financing costs for debt modification were $4.1 million.

Currency translation had a positive impact of $16.5 million on our cash balance in the twelve months of fiscal 2026 compared to the negative impact of $4.4 million in the twelve months of fiscal 2025. In the twelve months of fiscal 2026, principal currencies in which we do business such as the Swiss Franc, Polish zloty, Euro, and British pound generally strengthened versus the U.S. dollar.

As a result of the above, total cash and cash equivalents increased by $95.6 million from $343.1 million at March 31, 2025 to $438.7 million at March 31, 2026.

In addition to cash flows from operating activities, we had available committed and uncommitted credit lines of approximately $565.0 million at March 31, 2026 to cover short-term liquidity requirements. Our Sixth Amended Credit Facility is committed through September 30, 2030, as long as we continue to comply with the covenants and conditions of the credit facility agreement.

*Compliance with Debt Covenants*

Obligations under the Sixth Amended Credit Facility are secured by substantially all of the Company's existing and future acquired assets, including substantially all of the capital stock of the Company's United States subsidiaries that are guarantors under the Sixth Amended Credit Facility and up to 0.65 of the capital stock of certain of the Company's foreign subsidiaries that are owned by the Company's United States subsidiaries.

We are in compliance with all covenants and conditions under our Sixth Amended Credit Facility and Senior Notes. We believe that we will continue to comply with these covenants and conditions, and that we have the financial resources and the capital available to fund the foreseeable organic growth in our business and to remain active in pursuing further acquisition opportunities. See Note 11 to the Consolidated Financial Statements included in this Annual Report on Form 10-K.

***Off-Balance Sheet Arrangements***

The Company did not have any off-balance sheet arrangements during any of the periods covered by this report.

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***Contractual Obligations and Commercial Commitments***

At March 31, 2026, we had certain cash obligations, which are due as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Total** | **Less than<br>1 year** | **2 to 3<br>years** | **4 to 5<br>years** | **After<br>5 years** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Debt obligations | $1088.0 | $— | $300.0 | $488.0 | $300.0 |
| Short-term debt | 29.2 | 29.2 |  |  |  |
| Interest on debt (1) | 284.5 | 59.2 | 89.4 | 89.9 | 46.0 |
| Operating leases | 91.1 | 28.9 | 41.1 | 14.4 | 6.7 |
| Pension benefit payments and profit sharing | 23.5 | 1.6 | 3.9 | 4.8 | 13.2 |
| Purchase commitments | 12.8 | 12.8 |  |  |  |
| Total | $1529.1 | $131.7 | $434.4 | $597.1 | $365.9 |

---

(1) Interest payments for variable rate debt was calculated using the current applicable rate.

Due to the uncertainty of future cash outflows, uncertain tax positions have been excluded from the above table.

Under our Sixth Amended Credit Facility and other credit arrangements, we had outstanding standby letters of credit of $5.9 million as of March 31, 2026.

***Credit Facilities and Leverage***

During the second quarter of fiscal 2022, we entered into a second amendment to the Amended Credit Facility (as amended, the "Second Amended Credit Facility"). As a result, the Second Amended Credit Facility, now scheduled to mature on September 30, 2026, consists of a $130.0 million senior secured term loan (the "Second Amended Term Loan"), a CAD 106.4 million ($84.2 million) term loan and an $850.0 million senior secured revolving credit facility (the "Second Amended Revolver"). This amendment resulted in a decrease of the Amended Term Loan by $150.0 million and an increase of the Amended Revolver by $150.0 million.

During the second quarter of fiscal 2023, the Company entered into a third amendment to the 2017 Credit Facility (as amended, the "Third Amended Credit Facility"). The Third Amended Credit Facility provided new incremental delayed-draw senior secured term loan up to $300 million (the "Third Amended Term Loan"), which was available to draw until March 15, 2023. During the fourth quarter, the Company drew $300 million in the form of the Third Amended Term Loan. The funds will mature on September 30, 2026, the same as the Company's Second Amended Term loan and Second Amended Revolver. In connection with the agreement, the Company incurred $1.2 million in third party administrative and legal fees recognized in interest expense and capitalized $1.1 million in charges from existing lenders as a deferred asset. Additionally, the Company derecognized the capitalized deferred asset and recognized the $1.1 million as a deferred financing costs.

During the fourth quarter of fiscal 2023, the Company entered into a fourth amendment to the 2017 Credit Facility (as amended, the "Fourth Amended Credit Facility"). The Fourth Amended Credit Facility replaces the London Interbank Offered Rate ("LIBOR") with the Secured Overnight Financing Rate ("SOFR") in the calculation of interest for both the Second Amended Revolver and the Second Amended Term Loan.

On January 11, 2024, we issued $300 million in aggregate principal amount of our 6.625% Senior Notes due 2032 (the "2032 Notes"). Proceeds from this offering, net of debt issuance costs were $297.0 million and were utilized to pay down the Fourth Amended Credit Facility. We used the remaining net proceeds for general corporate purposes, including prepayments of outstanding balances of our Fourth Amended Credit Facility.

On December 23, 2024 and December 24, 2024 , the Company entered into cross-currency fixed interest rate swap contracts each with an aggregate notional amount of $150 million, maturing on June 15, 2028 and December 15, 2026, respectively.

In the first quarter of fiscal year 2025, the Company entered into a fifth amendment to the 2017 Credit Facility (as amended, the "Fifth Amended Credit Facility"). The Fifth Amended Credit Facility replaces the Canadian Dollar Offered Rate ("CODR") with term CORRA in the calculation of interest for borrowings denominated in Canadian Dollars.

During the second quarter of fiscal 2026, the Company entered into the sixth amendment to the 2017 Credit Facility (as amended, the "Sixth Amended Credit Facility"). The Sixth Amended Credit Facility provides (i) an upsized revolving credit

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facility in an aggregate committed amount of $1.0 billion (the " Third Amended Revolver"), which represents an increase of $150 million from the existing revolving credit facility and which matures on September 30, 2030 and (ii) certain other modifications to the existing credit agreement as further set forth in the Sixth Amended Credit Facility. In connection with the Sixth Amended Credit Facility, (i) all of the outstanding term loans (including accrued and unpaid interest thereon) and (ii) all accrued and unpaid interest and fees on the outstanding revolving loans, in each case, under the existing credit agreement were repaid in full.

The Sixth Amended Credit Facility may be increased by an aggregate amount of $615,000 in revolving commitments and /or one or more new tranches of term loans, under certain conditions. The Third Amended Revolver bear interest, at the Company's option, at a rate per annum equal to either (i) the SOFR, CORRA, Euribor or SONIA Base rate as applicable according to credit extended, plus (i) between 1.250% and 2.25% (currently 1.375% and based on the Company's consolidated net leverage ratio) or (ii) the U.S. Dollar Base Rate plus between 0.25% and 1.25%, which equals, for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 0.50%, (b) Bank of America "Prime Rate" and (c) Term SOFR plus 1%; provided that, if the Base Rate shall be less than zero, such rate shall be deemed zero)

The Sixth Amended Credit Facility allows for up to two temporary increases in the maximum leverage ratio to 4.50x from 4.00x for a four quarter period following an acquisition larger than $250,000. Effective with the Sixth Amended Credit Facility, the leverage ratio remains at 4.00x.

The total net debt, as defined under the Sixth Amended Credit Facility is $684.1 million for fiscal 2026 and is 1.1 times adjusted EBITDA (non-GAAP), compared to total net debt of $781.1 million and 1.3 times adjusted EBITDA (non-GAAP) for fiscal 2025.

The following table provides a reconciliation of net earnings to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) for March 31, 2026 and 2025, in connection with the Sixth Amended Credit Facility:

---

| | | |
|:---|:---|:---|
| | **Fiscal 2026** | **Fiscal 2025** |
| | **(in millions, except ratios)** | **(in millions, except ratios)** |
| Net earnings as reported | $293.6 | $363.7 |
| Add back: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 113.6 | 100.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 50.5 | 51.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 53.8 | 42.8 |
| EBITDA (non GAAP)<sup>(1)</sup> | $511.5 | $558.5 |
| Adjustments per credit agreement definitions<sup>(2)</sup> | 91.9 | 56.2 |
| Adjusted EBITDA (non-GAAP) per credit agreement<sup>(1)</sup> | $603.4 | $614.7 |
| Total net debt<sup>(3)</sup> | $684.1 | $781.1 |
| Leverage ratios<sup>(4)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total net debt/adjusted EBITDA ratio | 1.1 X | 1.3X |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum ratio permitted | 4.00 X | 4.00 X |
| &nbsp;&nbsp;&nbsp;&nbsp; Consolidated interest coverage ratio<sup>(5)</sup> | 12.5 X | 12.5X |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minimum ratio required | 3.0 X | 3.0 X |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)We have included EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) because our lenders use them as key measures of our performance. EBITDA is defined as earnings before interest expense, income tax expense, depreciation and amortization. EBITDA is not a measure of financial performance under GAAP and should not be considered an alternative to net earnings or any other measure of performance under GAAP or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Our calculation of EBITDA may be different from the calculations used by other companies, and therefore comparability may be limited. Certain financial covenants in our Fourth Amended Credit Facility are based on EBITDA, subject to adjustments, which are shown above. Continued availability of credit under our Fourth Amended Credit Facility is critical to our ability to meet our business plans. We believe that an understanding of the key terms of our credit agreement is important to an investor's understanding of our financial condition and liquidity risks. Failure to comply with our financial covenants, unless waived by our lenders, would mean we could not borrow any further amounts under our revolving credit facility and would give our lenders the right to demand immediate repayment of all outstanding revolving credit and term loans. We would be unable to continue our operations at current levels if we lost the liquidity provided under our credit

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agreements. Depreciation and amortization in this table excludes the amortization of deferred financing fees, which is included in interest expense.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The $91.9 million adjustment to EBITDA in fiscal 2026 primarily related to $37.6 million of non-cash stock compensation and $53.2 million of restructuring and other exit charges. The $56.2 million adjustment to EBITDA in fiscal 2025 primarily related to $27.8 million of non-cash stock compensation, $22.0 million of restructuring and other exit charges, impairment of indefinite-lived intangibles and write-down of other current assets of $5.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Debt includes finance lease obligations and letters of credit and is net of all U.S. cash and cash equivalents and foreign cash and investments, as defined in the Fourth Amended Credit Facility. In fiscal 2026, the amounts deducted in the calculation of net debt were U.S. cash and cash equivalents and foreign cash investments of $438.7 million, and in fiscal 2025, were $343.1 million.

&nbsp;&nbsp;&nbsp;&nbsp;(4)These ratios are included to show compliance with the leverage ratios set forth in our credit facilities. We show both our current ratios and the maximum ratio permitted or minimum ratio required under our Fourth Amended Credit Facility, for fiscal 2026 and fiscal 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(5)As defined in the Second Amended Credit Facility, interest expense used in the consolidated interest coverage ratio excludes non-cash interest of $2.2 million and $1.9 million for fiscal 2026 and fiscal 2025, respectively.

***RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS***

See Note 1 to the Consolidated Financial Statements - Summary of Significant Accounting Policies for a description of certain recently issued accounting standards that were adopted or are pending adoption that could have a significant impact on our Consolidated Financial Statements or the Notes to the Consolidated Financial Statements.

**Related Party Transactions**

None.

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| | |
|:---|:---|
| **ITEM 7A.** | ***QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK*** |

---

*Market Risks*

Our cash flows and earnings are subject to fluctuations resulting from changes in raw material costs, foreign currency exchange rates and interest rates. We manage our exposure to these market risks through internally established policies and procedures and, when deemed appropriate, through the use of derivative financial instruments. Our policy does not allow speculation in derivative instruments for profit or execution of derivative instrument contracts for which there are no underlying exposures. We do not use financial instruments for trading purposes and are not a party to any leveraged derivatives. We monitor our underlying market risk exposures on an ongoing basis and believe that we can modify or adapt our hedging strategies as needed.

*Counterparty Risks*

We have entered into lead forward purchase contracts, foreign exchange forward and purchased option contracts and cross currency fixed interest rate swaps to manage the risk associated with our exposures to fluctuations resulting from changes in raw material costs, foreign currency exchange rates and interest rates. The Company's agreements are with creditworthy financial institutions. Those contracts that result in a liability position at March 31, 2026 are $73.8 million (pre-tax). Those contracts that result in an asset position at March 31, 2026 are $1.4 million (pre-tax). The impact on the Company due to nonperformance by the counterparties has been evaluated and not deemed material.

We hedge our net investments in foreign operations against future volatility in the exchange rates between the U.S. dollar and Euro. On September 29, 2022, we executed cross-currency fixed interest rate swap contracts with an aggregate notional amount of $150 million, maturing on December 15, 2027. On July 2, 2024, the Company entered into cross-currency fixed interest rate swap contracts with an aggregate notional amount of $150 million, maturing on January 15, 2029. Additionally, on December 23, 2024 and December 24, 2024 , the Company entered into cross-currency fixed interest rate swap contracts each with an aggregate notional amount of $150 million, maturing on June 15, 2028 and December 15, 2026, respectively. Depending on the movement in the exchange rates between the U.S. dollar and Euro at maturity, the Company may owe the counterparties an amount that is different from the notional amount of $600 million.

Excluding the cross currency fixed interest rate swap agreements, the vast majority of these contracts will settle within one year.

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*Interest Rate Risks*

We are exposed to changes in variable U.S. interest rates on borrowings under our credit agreements, as well as short term borrowings in the U.S. and our foreign subsidiaries. On a selective basis, from time to time, we enter into interest rate swap agreements to reduce the negative impact that increases in interest rates could have on our outstanding variable rate debt. Management considers the interest rate swaps to be highly effective against changes in the cash flows from our underlying variable rate debt based on the criteria in the FASB guidance. Cash flows related to the interest rate swap agreements are included in interest expense over the terms of the agreements. At March 31, 2026 such agreements effectively convert $200 million of our variable-rate debt to a fixed-rate basis, utilizing the one-month Term SOFR as a floating rate reference. Fluctuations in SOFR and fixed rates affect both our net financial investment position and the amount of cash to be paid or received by us under these agreements.

A 100 basis point increase in interest rates would have increased annual interest expense by approximately $3.2 million on the variable rate portions of our debt.

*Commodity Cost Risks—Lead Contracts*

We have a significant risk in our exposure to certain raw materials. Our largest single raw material cost is for lead, for which the cost remains volatile. In order to hedge against increases in our lead cost, we have entered into forward contracts with financial institutions to fix the price of lead. A vast majority of such contracts are for a period not extending beyond one year. We had the following contracts outstanding at the dates shown below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **$'s Under Contract** | **# Pounds Purchased** | **Average<br>Cost/Pound** | **Approximate % of**<br> **Lead Requirements** <sup>(1)</sup> |
| | **(in millions)** | **(in millions)** | | |
| March 31, 2026 | $74.9 | 82.7 | $0.91 | 19% |
| March 31, 2025 | $63.8 | 70.0 | $0.91 | 8% |
| March 31, 2024 | $50.0 | 53.0 | $0.94 | 8% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Based on the fiscal year lead requirements for the periods then ended.

We estimate that a 10% increase in our cost of lead would have increased our cost of goods sold by approximately $65 million for the fiscal year ended March 31, 2026.

*Foreign Currency Exchange Rate Risks*

We manufacture and assemble our products globally in the Americas, EMEA and Asia. Approximately 40% of our sales and related expenses are transacted in foreign currencies. Our sales revenue, production costs, profit margins and competitive position are affected by the strength of the currencies in countries where we manufacture or purchase goods relative to the strength of the currencies in countries where our products are sold. Additionally, as we report our financial statements in U.S. dollars, our financial results are affected by the strength of the currencies in countries where we have operations relative to the strength of the U.S. dollar. The principal foreign currencies in which we conduct business are the Euro, Swiss franc, British pound, Polish zloty, Chinese renminbi, Canadian dollar, Brazilian Real and Mexican peso.

We quantify and monitor our global foreign currency exposures. Our largest foreign currency exposure is from the purchase and conversion of U.S. dollar based lead costs into local currencies in Europe. Additionally, we have currency exposures from intercompany financing and intercompany and third party trade transactions. On a selective basis, we enter into foreign currency forward contracts and purchase option contracts to reduce the impact from the volatility of currency movements; however, we cannot be certain that foreign currency fluctuations will not impact our operations in the future.

We hedge approximately 10% - 15% of the nominal amount of our known foreign exchange transactional exposures. We primarily enter into foreign currency exchange contracts to reduce the earnings and cash flow impact of the variation of non-functional currency denominated receivables and payables. The vast majority of such contracts are for a period not extending beyond one year.

Gains and losses resulting from hedging instruments offset the foreign exchange gains or losses on the underlying assets and liabilities being hedged. The maturities of the forward exchange contracts generally coincide with the settlement dates of the

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related transactions. Realized and unrealized gains and losses on these contracts are recognized in the same period as gains and losses on the hedged items. We also selectively hedge anticipated transactions that are subject to foreign exchange exposure, primarily with foreign currency exchange contracts, which are designated as cash flow hedges in accordance with Topic 815 - Derivatives and Hedging. During the third quarter of fiscal 2022, we also entered into cross currency fixed interest rate swap agreements, to hedge our net investments in foreign operations against future volatility in the exchange rates between U.S. Dollars and Euros.

At March 31, 2026 and 2025, we estimate that an unfavorable 10% movement in the exchange rates would have adversely changed our hedge valuations by approximately $69.2 million and $75.5 million, respectively.

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| | |
|:---|:---|
| **ITEM 8.** | ***FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA*** |

---

**Contents**

**EnerSys**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| | **Page** |
| <u>[Report of Independent Registered Public Accounting Firm (on Consolidated Financial Statements) (PCAOB ID:](#i8786429dbc604f208466f294ece24842_73)</u>42<u>[)](#i8786429dbc604f208466f294ece24842_73)</u> | <u>[57](#i8786429dbc604f208466f294ece24842_73)</u> |
| <u>[Report of Independent Registered Public Accounting Firm (on Internal Control Over Financial Reporting)](#i8786429dbc604f208466f294ece24842_76)</u> | <u>[59](#i8786429dbc604f208466f294ece24842_76)</u> |
| Audited Consolidated Financial Statements |  |
| <u>[Consolidated Balance Sheets as of March 31, 2026 and 2025](#i8786429dbc604f208466f294ece24842_79)</u> | <u>[60](#i8786429dbc604f208466f294ece24842_79)</u> |
| <u>[Consolidated Statements of Income for the Fiscal Years Ended March 31, 2026, 2025 and 2024](#i8786429dbc604f208466f294ece24842_82)</u> | <u>[61](#i8786429dbc604f208466f294ece24842_82)</u> |
| <u>[Consolidated Statements of Comprehensive Income for the Fiscal Years Ended March 31, 2026, 2025 and 2024](#i8786429dbc604f208466f294ece24842_85)</u> | <u>[62](#i8786429dbc604f208466f294ece24842_85)</u> |
| <u>[Consolidated Statements of Changes in Equity for the Fiscal Years Ended March 31, 2026, 2025 and 2024](#i8786429dbc604f208466f294ece24842_88)</u> | <u>[63](#i8786429dbc604f208466f294ece24842_88)</u> |
| <u>[Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2026, 2025 and 2024](#i8786429dbc604f208466f294ece24842_91)</u> | <u>[64](#i8786429dbc604f208466f294ece24842_91)</u> |
| <u>[Notes to Consolidated Financial Statements](#i8786429dbc604f208466f294ece24842_94)</u> | <u>[65](#i8786429dbc604f208466f294ece24842_94)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[1. Summary of Significant Accounting Policies](#i8786429dbc604f208466f294ece24842_97)</u> | <u>[65](#i8786429dbc604f208466f294ece24842_97)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[2. Revenue Recognition](#i8786429dbc604f208466f294ece24842_100)</u> | <u>[72](#i8786429dbc604f208466f294ece24842_100)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[3. Leases](#i8786429dbc604f208466f294ece24842_106)</u> | <u>[73](#i8786429dbc604f208466f294ece24842_106)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[4. Acquisition](#i8786429dbc604f208466f294ece24842_109)</u> | &nbsp;&nbsp;&nbsp;&nbsp;<u>[75](#i8786429dbc604f208466f294ece24842_109)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[5. Accounts Receivable](#i8786429dbc604f208466f294ece24842_112)</u> | <u>[76](#i8786429dbc604f208466f294ece24842_112)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[6. Inventories](#i8786429dbc604f208466f294ece24842_115)</u> | <u>[77](#i8786429dbc604f208466f294ece24842_115)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[7. Property, Plant, and Equipment](#i8786429dbc604f208466f294ece24842_118)</u> | <u>[78](#i8786429dbc604f208466f294ece24842_118)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[8. Goodwill and Other Intangible Assets](#i8786429dbc604f208466f294ece24842_121)</u> | <u>[78](#i8786429dbc604f208466f294ece24842_121)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[9. Prepaid and Other Current Assets](#i8786429dbc604f208466f294ece24842_124)</u> | <u>[79](#i8786429dbc604f208466f294ece24842_124)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[10. Accrued Expenses](#i8786429dbc604f208466f294ece24842_127)</u> | <u>[79](#i8786429dbc604f208466f294ece24842_127)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[11. Debt](#i8786429dbc604f208466f294ece24842_130)</u> | <u>[80](#i8786429dbc604f208466f294ece24842_130)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[12. Other Liabilities](#i8786429dbc604f208466f294ece24842_133)</u> | <u>[83](#i8786429dbc604f208466f294ece24842_133)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[13. Fair Value Measurements](#i8786429dbc604f208466f294ece24842_136)</u> | <u>[83](#i8786429dbc604f208466f294ece24842_136)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[14. Derivative Financial Instruments](#i8786429dbc604f208466f294ece24842_139)</u> | <u>[85](#i8786429dbc604f208466f294ece24842_139)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[15. Income Taxes](#i8786429dbc604f208466f294ece24842_142)</u> | <u>[90](#i8786429dbc604f208466f294ece24842_142)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[16. Retirement Plans](#i8786429dbc604f208466f294ece24842_148)</u> | <u>[95](#i8786429dbc604f208466f294ece24842_148)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[17. Stockholders' Equity](#i8786429dbc604f208466f294ece24842_151)</u> | <u>[99](#i8786429dbc604f208466f294ece24842_151)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[18. Stock-Based Compensation](#i8786429dbc604f208466f294ece24842_154)</u> | <u>[102](#i8786429dbc604f208466f294ece24842_154)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[19. Earnings Per Share](#i8786429dbc604f208466f294ece24842_157)</u> | <u>[105](#i8786429dbc604f208466f294ece24842_157)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[20. Commitments, Contingencies and Litigation](#i8786429dbc604f208466f294ece24842_160)</u> | <u>[105](#i8786429dbc604f208466f294ece24842_160)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[21. Restructuring, Exit and Other Charges](#i8786429dbc604f208466f294ece24842_163)</u> | <u>[106](#i8786429dbc604f208466f294ece24842_163)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[22. Warranty](#i8786429dbc604f208466f294ece24842_166)</u> | <u>[110](#i8786429dbc604f208466f294ece24842_166)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[23. Other (Income) Expense, Net](#i8786429dbc604f208466f294ece24842_169)</u> | <u>[110](#i8786429dbc604f208466f294ece24842_169)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[24. Business Segments](#i8786429dbc604f208466f294ece24842_172)</u> | <u>[110](#i8786429dbc604f208466f294ece24842_172)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[25. Subsequent Events](#i8786429dbc604f208466f294ece24842_178)</u> | <u>[113](#i8786429dbc604f208466f294ece24842_178)</u> |

---

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of EnerSys

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of EnerSys (the Company) as of March 31, 2026 and 2025, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years in the period ended March 31, 2026, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2026, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 20, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosures to which it relates.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

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| | |
|:---|:---|
| | ***Valuation of Indefinite-Lived Intangible Assets*** |
| *Description of the Matter* | As reflected in the Company's consolidated financial statements, the Company's indefinite-lived intangible assets were $128.0 million as of March 31, 2026. As discussed in Note 1 to the consolidated financial statements, indefinite-lived intangible assets are tested for impairment at least annually, using both the qualitative and quantitative assessments.<br>Auditing management's annual indefinite-lived intangible asset impairment test was complex and involved a high degree of subjectivity due to the significant estimation required in determining the fair value of the indefinite-lived intangible asset evaluated using the quantitative assessment. The fair value estimate related to this indefinite-lived intangible asset was sensitive to significant assumptions such as discount rate, forecasted revenue growth rates, and royalty rate, which are forward-looking and could be affected by future economic and market conditions. |
| *How We Addressed the Matter in Our Audit* | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company's annual quantitative indefinite-lived intangible asset impairment test. For example, we tested controls over management's review of the valuation model, the significant assumptions used to develop the estimate including discount rate, forecasted revenue growth rates and royalty rate, and the completeness and accuracy of the data used in the valuation. <br>To test the estimated fair value of the Company's indefinite-lived intangible asset, we performed audit procedures that included, among other procedures, assessing the fair value methodology and testing the significant assumptions discussed above and the completeness and accuracy of the underlying data used by the Company in its analysis. For example, we compared the significant assumptions used by management to current industry, market and economic trends, to historical results of the Company's business and other guideline companies within the same industry and to other relevant factors. We assessed the historical accuracy of management's estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the indefinite-lived intangible asset that would result from changes in the assumptions. We also involved internal valuation specialists to assist in our evaluation of the significant assumptions and methodology used by the Company. |

---

/s/ Ernst & Young LLP

We have served as the Company's auditor since 1998.

Philadelphia, Pennsylvania

May 20, 2026

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of EnerSys

**Opinion on Internal Control Over Financial Reporting**

We have audited EnerSys' internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, EnerSys (the Company) maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2026 consolidated financial statements of the Company and our report dated May 20, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

May 20, 2026

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**EnerSys**

**Consolidated Balance Sheets**

**(In Thousands, Except Share and Per Share Data)** 

---

| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| **Assets** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $438675 | $343131 |
| Accounts receivable, net of allowance for doubtful accounts <br>(2026–$8,583; 2025–$8,675) | 506072 | 597942 |
| Inventories, net | 724690 | 739994 |
| Prepaid and other current assets | 472373 | 408747 |
| Total current assets | 2141810 | 2089814 |
| Property, plant, and equipment, net | 593002 | 592433 |
| Goodwill | 752424 | 721073 |
| Other intangible assets, net | 342898 | 375430 |
| Deferred taxes | 69008 | 74793 |
| Other assets | 104182 | 117705 |
| Total assets | $4003324 | $3971248 |
| **Liabilities and Equity** |  |  |
| Current liabilities: |  |  |
| Short-term debt | $29201 | $28502 |
| Current portion of finance leases | 998 | 265 |
| Accounts payable | 354190 | 405694 |
| Accrued expenses | 419649 | 340607 |
| Total current liabilities | 804038 | 775068 |
| Long-term debt, net of unamortized debt issuance costs | 1079782 | 1083541 |
| Finance leases | 2350 | 592 |
| Deferred taxes | 13909 | 17641 |
| Other liabilities | 194373 | 174918 |
| Total liabilities | 2094452 | 2051760 |
| Commitments and contingencies |  |  |
| Equity: |  |  |
| Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at March 31, 2026 and at March 31, 2025 |  |  |
| Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 57,551,440 shares issued and 36,462,211 shares outstanding at March 31, 2026; 56,839,590 shares issued and 39,192,061 shares outstanding at March 31, 2025 | 576 | 568 |
| Additional paid-in capital | 734922 | 662725 |
| Treasury stock at cost, 21,089,229 shares held as of March 31, 2026 and 17,647,529 shares held as of March 31, 2025 | (1361585) | (988936) |
| Retained earnings | 2743635 | 2489200 |
| Accumulated other comprehensive loss | (212264) | (247479) |
| Total EnerSys stockholders' equity | 1905284 | 1916078 |
| Nonredeemable noncontrolling interests | 3588 | 3410 |
| Total equity | 1908872 | 1919488 |
| Total liabilities and equity | $4003324 | $3971248 |

---

See accompanying notes.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**EnerSys**

**Consolidated Statements of Income**

**(In Thousands, Except Share and Per Share Data)**

---

| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| Sales from products | $3380458 | $3256796 | $3161862 |
| Sales from services | 370918 | 360783 | 420009 |
| Net sales | 3751376 | 3617579 | 3581871 |
| Cost of goods sold | 2345865 | 2223939 | 2248859 |
| Cost of services | 305681 | 297627 | 329948 |
| Inventory adjustment relating to exit activities and step up to fair value relating to recent acquisitions | 2268 | 3609 | 20173 |
| Gross profit | 1097562 | 1092404 | 982891 |
| Operating expenses | 620950 | 608656 | 589599 |
| Restructuring and other exit charges | 50937 | 14428 | 28103 |
| Impairment of indefinite-lived intangibles | 402 |  | 13619 |
| (Gain) loss on assets held for sale | (1187) | 4634 |  |
| Operating earnings | 426460 | 464686 | 351570 |
| Interest expense | 50501 | 51116 | 49954 |
| Other expense (income), net | 28553 | 6993 | 9431 |
| Earnings before income taxes | 347406 | 406577 | 292185 |
| Income tax expense | 53849 | 42842 | 23089 |
| Net earnings attributable to EnerSys stockholders | $293557 | $363735 | $269096 |
| Net earnings per common share attributable to EnerSys stockholders: |  |  |  |
| Basic | $7.84 | $9.15 | $6.62 |
| Diluted | $7.70 | $8.99 | $6.50 |
| Dividends per common share | $1.03 | $0.95 | $0.85 |
| Weighted-average number of common shares outstanding: |  |  |  |
| Basic | 37439727 | 39760829 | 40669392 |
| Diluted | 38144210 | 40438579 | 41371439 |

---

See accompanying notes.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**EnerSys**

**Consolidated Statements of Comprehensive Income**

**(In Thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| Net earnings | $293557 | $363735 | $269096 |
| Other comprehensive (loss) income: |  |  |  |
| Net unrealized gain (loss) on derivative instruments, net of tax | (4293) | (1024) | (656) |
| Pension funded status adjustment, net of tax | 7738 | (576) | (5375) |
| Foreign currency translation adjustment | 31948 | (41045) | (15521) |
| Total other comprehensive (loss) gain, net of tax | 35393 | (42645) | (21552) |
| Total comprehensive income | 328950 | 321090 | 247544 |
| Comprehensive gain (loss) attributable to noncontrolling interests | 178 | (17) | (175) |
| Comprehensive income attributable to EnerSys stockholders | $328772 | $321107 | $247719 |

---

See accompanying notes.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**EnerSys** 

**Consolidated Statements of Changes in Equity**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(In Thousands*, *Except Per Share Data)*** | **Preferred<br>Stock** | **Common<br>Stock** | **Additional Paid-in<br>Capital** | **Treasury<br>Stock** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Contra-Equity** | **Total<br>EnerSys<br>Stockholders'<br>Equity** | **Non-<br>redeemable<br>Non-<br>Controlling<br>Interests** | **Total<br>Equity** |
| **Balance at March 31, 2023** | $**—** | $**560** | $**596464** | $**(740956)** | $**1930148** | $**(183474)** | $**(2463)** | $**1600279** | $**3602** | $**1603881** |
| Stock-based compensation |  |  | 30607 |  |  |  |  | 30607 |  | 30607 |
| Exercise of stock options |  | 4 | 10782 |  |  |  |  | 10786 |  | 10786 |
| Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net |  |  | (9166) |  |  |  |  | (9166) |  | (9166) |
| Purchase of common stock |  |  |  | (95690) |  |  |  | (95690) |  | (95690) |
| Contra equity - adjustment to indemnification receivable for acquisition related tax liability |  |  |  |  |  |  | 2463 | 2463 |  | 2463 |
| Other |  |  | 309 | 819 |  |  |  | 1128 |  | 1128 |
| Net earnings |  |  |  |  | 269096 |  |  | 269096 |  | 269096 |
| Dividends ($0.85 per common share) |  |  | 883 |  | (35364) |  |  | (34481) |  | (34481) |
| Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |
| Pension funded status adjustment (net of tax benefit of $1,787) |  |  |  |  |  | (5375) |  | (5375) |  | (5375) |
| Net unrealized gain (loss) on derivative instruments (net of tax benefit of $197) |  |  |  |  |  | (656) |  | (656) |  | (656) |
| Foreign currency translation adjustment |  |  |  |  |  | (15346) |  | (15346) | (175) | (15521) |
| **Balance at March 31, 2024** | $**—** | $**564** | $**629879** | $**(835827)** | $**2163880** | $**(204851)** | $**—** | $**1753645** | $**3427** | $**1757072** |
| Stock-based compensation |  |  | 27825 |  |  |  |  | 27825 |  | 27825 |
| Exercise of stock options |  | 4 | 9453 |  |  |  |  | 9457 |  | 9457 |
| Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net |  |  | (7985) |  |  |  |  | (7985) |  | (7985) |
| Shares released under deferred compensation for directors |  |  | 2404 |  |  |  |  | 2404 |  | 2404 |
| Purchase of common stock |  |  |  | (153961) |  |  |  | (153961) |  | (153961) |
| Other |  |  | 200 | 852 |  |  |  | 1052 |  | 1052 |
| Net Earnings |  |  |  |  | 363735 |  |  | 363735 |  | 363735 |
| Dividends ($0.95 per common share) |  |  | 949 |  | (38415) |  |  | (37466) |  | (37466) |
| Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |
| Pension funded status adjustment (net of tax of $233) |  |  |  |  |  | (576) |  | (576) |  | (576) |
| Net unrealized gain (loss) on derivative instruments (net of tax of $311) |  |  |  |  |  | (1024) |  | (1024) |  | (1024) |
| Foreign currency translation adjustment |  |  |  |  |  | (41028) |  | (41028) | (17) | (41045) |
| **Balance at March 31, 2025** | $**—** | $**568** | $**662725** | $**(988936)** | $**2489200** | $**(247479)** | $**—** | $**1916078** | $**3410** | $**1919488** |
| Stock-based compensation |  |  | 37594 |  |  |  |  | 37594 |  | 37594 |
| Exercise of stock options |  | 8 | 41969 |  |  |  |  | 41977 |  | 41977 |
| Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net |  |  | (8842) |  |  |  |  | (8842) |  | (8842) |
| Shares released under deferred compensation for directors |  |  | 69 |  |  |  |  | 69 |  | 69 |
| Purchase of common stock |  |  |  | (373523) |  |  |  | (373523) |  | (373523) |
| Other |  |  | 427 | 874 |  |  |  | 1301 |  | 1301 |
| Net Earnings |  |  |  |  | 293557 |  |  | 293557 |  | 293557 |
| Dividends ($1.03 per common share) |  |  | 980 |  | (39122) |  |  | (38142) |  | (38142) |
| Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |
| Pension funded status adjustment (net of tax of $1,902) |  |  |  |  |  | 7738 |  | 7738 |  | 7738 |
| Net unrealized gain (loss) on derivative instruments (net of tax of $1,285) |  |  |  |  |  | (4293) |  | (4293) |  | (4293) |
| Foreign currency translation adjustment |  |  |  |  |  | 31770 |  | 31770 | 178 | 31948 |
| **Balance at March 31, 2026** | $**—** | $**576** | $**734922** | $**(1361585)** | $**2743635** | $**(212264)** | $**—** | $**1905284** | $**3588** | $**1908872** |

---

See accompanying notes.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**EnerSys**

**Consolidated Statements of Cash Flows**

**(In Thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |  |
| Net earnings | $293557 | $363735 | $269096 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 113558 | 100876 | 92021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off of assets relating to restructuring and other exit charges | 5535 | 1973 | 24229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on assets held for sale | (1187) | 4634 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment or disposal of intangible assets | 402 | 880 | 13619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated in hedging relationships: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net losses (gains) | 409 | (3136) | 846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash proceeds (settlements) | 673 | 826 | (255) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful accounts | 1441 | 3239 | 1873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 14411 | (31925) | (29344) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest expense | 2180 | 1927 | 2450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 37594 | 27825 | 30607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property, plant, and equipment | 644 | 791 | 908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses (gain) on pension settlement | 9711 | (1548) |  |
| Changes in assets and liabilities, net of effects of acquisitions: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 104705 | (81795) | 108631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 25888 | 1343 | 75633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other current assets | (65244) | (220003) | (112701) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 726 | (334) | 6027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (52627) | 36569 | (15131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 54961 | 54388 | (8254) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 259 | 32 | (3226) |
| Net cash provided by (used in) operating activities | 547596 | 260298 | 457029 |
| **Cash flows from investing activities** |  |  |  |
| Capital expenditures | (80074) | (121038) | (86437) |
| Purchase of businesses | (12667) | (206374) | (8270) |
| Proceeds from disposal of property, plant, and equipment | 4859 | 1870 | 2228 |
| Investment in Equity Securities |  | (10852) |  |
| Net cash used in investing activities | (87882) | (336394) | (92479) |
| **Cash flows from financing activities** |  |  |  |
| Net borrowings (repayments) on short-term debt | (192) | (259) | (231) |
| Proceeds from Revolver borrowings | 619563 | 650000 | 182500 |
| Repayments of Revolver borrowings | (412000) | (370000) | (427500) |
| Proceeds from 2032 Bonds |  |  | 300000 |
| Repayments of Term Loans | (210000) |  | (293889) |
| Debt issuance costs | (3502) |  | (4061) |
| Finance lease obligations and other | (71) | 483 | 1169 |
| Option proceeds, net | 41977 | 9458 | 10786 |
| Payment of taxes related to net share settlement of equity awards | (8842) | (7985) | (9166) |
| Purchase of treasury stock | (370685) | (153961) | (95688) |
| Dividends paid to stockholders | (38142) | (37466) | (34480) |
| Other | 1191 |  |  |
| Net cash (used in) provided by financing activities | (380703) | 90270 | (370560) |
| Effect of exchange rate changes on cash and cash equivalents | 16533 | (4367) | (7331) |
| Net increase (decrease) in cash and cash equivalents | 95544 | 9807 | (13341) |
| Cash and cash equivalents at beginning of year | 343131 | 333324 | 346665 |
| Cash and cash equivalents at end of year | $438675 | $343131 | $333324 |

---

See accompanying notes.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**Notes to Consolidated Financial Statements**

**March 31, 2026** 

**(In Thousands, Except Share and Per Share Data)**

**1. Summary of Significant Accounting Policies**

***Description of Business***

EnerSys (the "Company") and its predecessor companies have been manufacturers of industrial batteries for over 125 years. EnerSys is a global leader in stored energy solutions for industrial applications. The Company manufactures, markets and distributes industrial batteries and related products such as chargers, outdoor cabinet enclosures, power equipment and battery accessories, and provides related after-market and customer-support services for its products. Additionally, the Company is also a provider of highly integrated power solutions and services to broadband, telecom, renewable and industrial customers.

***Principles of Consolidation***

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and any partially owned subsidiaries that the Company has the ability to control. Control generally equates to ownership percentage, whereby investments that are more than 50% owned are generally consolidated, investments in affiliates of 50% or less but greater than 20% are generally accounted for using the equity method, and investments in affiliates of 20% or less are accounted at cost minus impairment, if any. All intercompany transactions and balances have been eliminated in consolidation.

***Foreign Currency Translation***

Results of foreign operations of subsidiaries, whose functional currency is the local currency, are translated into U.S. dollars using average exchange rates during the periods. The assets and liabilities are translated into U.S. dollars using exchange rates as of the balance sheet dates. Gains or losses resulting from translating the foreign currency financial statements are accumulated as a separate component of accumulated other comprehensive income ("AOCI") in EnerSys' stockholders' equity and noncontrolling interests.

Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the functional currency of the applicable subsidiary are included in the Consolidated Statements of Income, within "Other (income) expense, net", in the year in which the change occurs.

***Revenue Recognition***

The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the performance obligation to a customer. Control of a performance obligation may transfer to the customer either at a point in time or over time depending on an evaluation of the specific facts and circumstances for each contract, including the terms and conditions of the contract as agreed with the customer, as well as the nature of the products or services to be provided.

The Company's primary performance obligation to its customers is the delivery of finished goods and products, pursuant to

purchase orders. Control of the products sold typically transfers to its customers at the point in time when the goods are shipped

as this is also when title generally passes to its customers under the terms and conditions of the customer arrangements.

Each customer purchase order sets forth the transaction price for the products and services purchased under that arrangement. Some customer arrangements include variable consideration, such as volume rebates, some of which depend upon the customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company uses judgment to estimate the most likely amount of variable consideration at each reporting date. When estimating variable consideration, the Company also applies judgment when considering the probability of whether a reversal of revenue could occur and only recognize revenue subject to this constraint.

Service revenues related to the work performed for the Company's customers by its maintenance technicians generally represent a separate and distinct performance obligation. Control for these services passes to the customer as the services are performed.

The Company's typical payment terms are 30 days and sales arrangements do not contain any significant financing component for its customers.

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The Company uses historic customer product return data as a basis of estimation for customer returns and records the reduction of sales at the time revenue is recognized.

Freight charges billed to customers are included in sales and the related shipping costs are included in cost of sales in the Consolidated Statements of Income. If shipping activities are performed after a customer obtains control of a product, the Company applies a policy election to account for shipping as an activity to fulfill the promise to transfer the product to the customer.

The Company applies a policy election to exclude transaction taxes collected from customers from sales when the tax is both imposed on and concurrent with a specific revenue-producing transaction.

The Company generally provides customers with a product warranty that provides assurance that the products meet standard specifications and are free of defects. The Company maintains a reserve for claims incurred under standard product warranty programs. Performance obligations related to service warranties are not material to the Consolidated Financial Statements.

The Company pays sales commissions to its sales representatives, which may be considered as incremental costs to obtain a contract. However, since the recoverability period is less than one year, the Company has utilized the practical expedient to record these costs of obtaining a contract as an expense as they are incurred.

***Warranties***

The Company's products are warranted for a period ranging from one to twenty years for Energy Systems batteries, from one to five years for Motive Power batteries and for a period ranging from one to four years for Specialty transportation batteries. The Company provides for estimated product warranty expenses when the related products are sold. The assessment of the adequacy of the reserve includes a review of open claims and historical experience.

***Cash and Cash Equivalents***

Cash and cash equivalents include all highly liquid investments with an original maturity of three months or less when purchased.

***Concentration of Credit Risk***

Financial instruments that subject the Company to potential concentration of credit risk consist principally of short-term cash investments and trade accounts receivable. The Company invests its cash with various financial institutions and in various investment instruments limiting the amount of credit exposure to any one financial institution or entity. The Company has bank deposits that exceed federally insured limits. In addition, certain cash investments may be made in U.S. and foreign government bonds, or other highly rated investments guaranteed by the U.S. or foreign governments. Concentration of credit risk with respect to trade receivables is limited by a large, diversified customer base and its geographic dispersion. The Company performs ongoing credit evaluations of its customers' financial condition and requires collateral, such as letters of credit, in certain circumstances.

***Accounts Receivable***

Accounts receivable are recorded net of an allowance for expected credit losses. The Company maintains an allowance for credit losses for the expected failure or inability of its customers to make required payments. The Company recognizes the allowance for expected credit losses at inception and reassesses quarterly based on management's expectation of the asset's collectability. The allowance is based on multiple factors including historical experience with bad debts, the credit quality of the customer base, the aging of such receivables and current macroeconomic conditions, as well as management's expectations of conditions in the future. The Company's allowance for uncollectible accounts receivable is based on management's assessment of the collectability of assets pooled together with similar risk characteristics. Accounts are written off when management determines the account is uncollectible. The following table sets forth the changes in the Company's allowance for doubtful

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accounts:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Balance at Beginning of Period** | **Provision <br>for Expected Credit Losses** | **Write-offs, net of Recoveries and Other** | **Balance at <br>End of <br>Period** |
| Fiscal year ended March 31, 2024 | $8775 | 1873 | (2541) | $8107 |
| Fiscal year ended March 31, 2025 | 8107 | 3239 | (2671) | 8675 |
| Fiscal year ended March 31, 2026 | 8675 | 1441 | (1533) | 8583 |

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***Inventories***

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of inventory consists of material, labor, and associated overhead.

***Property, Plant, and Equipment***

Property, plant, and equipment are recorded at cost and include expenditures that substantially increase the useful lives of the assets. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows: 10 to 33 years for buildings and improvements and 3 to 15 years for machinery and equipment.

Maintenance and repairs are expensed as incurred. Interest on capital projects is capitalized during the construction period.

***Business Combinations***

The Company records an acquisition using the acquisition method of accounting and recognizes the assets acquired and liabilities assumed at their fair values as of the date of the acquisition. The excess of the purchase price over the net tangible and intangible assets is recorded to goodwill. The results of operations of the acquired business are included in the Company's operating results from the date of acquisition.

***Goodwill and Other Intangible Assets***

Goodwill and indefinite-lived trademarks are tested for impairment at least annually and whenever events or circumstances occur indicating that a possible impairment may have been incurred. The Company assesses whether goodwill impairment exists using both the qualitative and quantitative assessments. The qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If based on this qualitative assessment the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company elects not to perform a qualitative assessment, a quantitative assessment is performed by determining the fair value of the Company's reporting units.

Goodwill is tested for impairment by determining the fair value of the Company's reporting units. These estimated fair values are based on financial projections, certain cash flow measures, and market capitalization.

The Company estimates the fair value of its reporting units using a weighting of fair values derived from both the income approach and the market approach. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the business's ability to execute on the projected cash flows. The market approach estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. The weighting of the fair value derived from the market approach ranges from 0% to 50% depending on the level of comparability of these publicly-traded companies to the reporting unit.

In order to assess the reasonableness of the calculated fair values of its reporting units, the Company also compares the sum of the reporting units' fair values to its market capitalization and calculates an implied control premium (the excess of the sum of the reporting units' fair values over the market capitalization). The Company evaluates the control premium by comparing it to control premiums of recent comparable market transactions.

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The Company assesses whether indefinite-lived intangible assets impairment exists using both the qualitative and quantitative assessments. The qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. If based on this qualitative assessment, the Company determines it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount or if the Company elects not to perform a qualitative assessment, a quantitative assessment is performed to determine whether an indefinite-lived intangible asset impairment exists. The Company tests the indefinite-lived intangible assets for impairment by comparing the carrying value to the fair value based on current revenue projections of the related operations, under the relief from royalty method. Any excess of the carrying value over the amount of fair value is recognized as an impairment. Any such impairment is recognized in the reporting period in which it has been identified.

Finite-lived assets such as customer relationships, technology, trademarks, licenses, and non-compete agreements are amortized on a straight-line basis over their estimated useful lives, generally over periods ranging from 3 to 20 years. The Company continually evaluates the reasonableness of the useful lives of these assets.

***Impairment of Long-Lived Assets***

The Company reviews the carrying values of its long-lived assets to be held and used for possible impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, based on undiscounted estimated cash flows expected to result from its use and eventual disposition. The factors considered by the Company in performing this assessment include current operating results, trends and other economic factors. In assessing the recoverability of the carrying value of a long-lived asset, the Company must make assumptions regarding future cash flows and other factors. If these estimates or the related assumptions change in the future, the Company may be required to record an impairment loss for these assets.

***Environmental Expenditures***

The Company records a loss and establishes a reserve for environmental remediation liabilities when it is probable that an asset has been impaired or a liability exists and the amount of the liability can be reasonably estimated. Reasonable estimates involve judgments made by management after considering a broad range of information including notifications, demands or settlements that have been received from a regulatory authority or private party, estimates performed by independent engineering companies and outside counsel, available facts, existing and proposed technology, the identification of other potentially responsible parties, their ability to contribute and prior experience. These judgments are reviewed quarterly as more information is received and the amounts reserved are updated as necessary. However, the reserves may materially differ from ultimate actual liabilities if the loss contingency is difficult to estimate or if management's judgments turn out to be inaccurate. If management believes no best estimate exists, the minimum probable loss is accrued.

***Derivative Financial Instruments***

The Company utilizes derivative instruments to mitigate volatility related to interest rates, lead prices and foreign currency exposures. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The Company recognizes derivatives as either assets or liabilities in the accompanying Consolidated Balance Sheets and measures those instruments at fair value. Changes in the fair value of those instruments are reported in AOCI if they qualify for hedge accounting or in earnings if they do not qualify for hedge accounting. Derivatives qualify for hedge accounting if they are designated as hedge instruments and if the hedge is highly effective in achieving offsetting changes in the fair value or cash flows of the asset or liability hedged. For lead and foreign currency forward contracts, effectiveness is measured on a regular basis using statistical analysis and by comparing the overall changes in the expected cash flows of the hedging instrument with the changes in the expected all-in cash outflow required for the underlying lead and foreign currency purchases. This analysis is performed on the initial purchases quarterly that cover the quantities hedged. Accordingly, gains and losses from changes in derivative fair value of effective hedges are deferred and reported in AOCI until the underlying transaction affects earnings. In the case of cross currency fixed interest rate swap agreements, the swaps are remeasured with changes in fair value recognized in foreign currency translation adjustment within AOCI to offset the translation risk from the underlying investments. Balances in the foreign currency translation adjustment accounts remain until the sale or substantially complete liquidation of the foreign entity, upon which they are recognized as a component of income (expense).

The Company has commodity, foreign exchange and interest rate hedging authorization from the Board of Directors and has established a hedging and risk management program that includes the management of market and counterparty risk. Key risk control activities designed to ensure compliance with the risk management program include, but are not limited to, credit review and approval, validation of transactions and market prices, verification of risk and transaction limits, portfolio stress tests,

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sensitivity analyses and frequent portfolio reporting, including open positions, determinations of fair value and other risk management metrics.

Market risk is the potential loss the Company and its subsidiaries may incur as a result of price changes associated with a particular financial or commodity instrument. The Company utilizes forward contracts, options, and swaps as part of its risk management strategies, to minimize unanticipated fluctuations in earnings caused by changes in commodity prices, interest rates and / or foreign currency exchange rates. All derivatives are recognized on the balance sheet at their fair value, unless they qualify for the Normal Purchase Normal Sale exemption.

Credit risk is the potential loss the Company may incur due to the counterparty's non-performance. The Company is exposed to credit risk from interest rate, foreign currency and commodity derivatives with financial institutions. The Company has credit policies to manage their credit risk, including the use of an established credit approval process, monitoring of the counterparty positions and the use of master netting agreements.

The Company has elected to offset net derivative positions under master netting arrangements. The Company does not have any positions involving cash collateral (payables or receivables) under a master netting arrangement as of March 31, 2026 and 2025.

The Company does not have any credit-related contingent features associated with its derivative instruments.

***Fair Value of Financial Instruments***

The Company groups its recurring, non-recurring and disclosure-only fair value measurements into the following levels when making fair value measurement disclosures:

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| | |
|:---|:---|
| Level 1 | Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. |
| Level 2 | Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. |
| Level 3 | Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. |

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Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The Company and its subsidiaries use, as appropriate, a market approach (generally, data from market transactions), an income approach (generally, present value techniques and option-pricing models), and / or a cost approach (generally, replacement cost) to measure the fair value of an asset or liability. These valuation approaches incorporate inputs such as observable, independent market data and / or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk.

Lead contracts, foreign currency contracts and interest rate contracts generally use an income approach to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., Secured Overnight Financing Rate "SOFR"), forward foreign currency exchange rates (e.g., GBP and euro) and commodity prices (e.g., London Metals Exchange), as well as inputs that may not be observable, such as credit valuation adjustments. When observable inputs are used to measure all or most of the value of a contract, the contract is classified as Level 2. Over-the-counter (OTC) contracts are valued using quotes obtained from an exchange, binding and non-binding broker quotes. Furthermore, the Company obtains independent quotes from the market to validate the forward price curves. OTC contracts include forwards, swaps and options. To the extent possible, fair value measurements utilize various inputs that include quoted prices for similar contracts or market-corroborated inputs.

When unobservable inputs are significant to the fair value measurement, the asset or liability is classified as Level 3. Additionally, Level 2 fair value measurements include adjustments for credit risk based on the Company's own creditworthiness (for net liabilities) and its counterparties' creditworthiness (for net assets). The Company assumes that observable market prices include sufficient adjustments for liquidity and modeling risks. The Company did not have any fair value measurements that transferred between Level 2 and Level 3 as well as Level 1 and Level 2.

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***Income Taxes***

The Company accounts for income taxes using the asset and liability approach, which requires deferred tax assets and liabilities be recognized using enacted tax rates to measure the effect of temporary differences between book and tax bases on recorded assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets, if it is more likely than not some portion or all of the deferred tax assets will not be realized. The need to establish valuation allowances against deferred tax assets is assessed quarterly. The primary factors used to assess the likelihood of realization are expected reversals of taxable temporary timing differences, forecasts of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets.

The Company recognizes tax related interest and penalties in income tax expense in its Consolidated Statement of Income.

With respect to accounting for uncertainty in income taxes, the Company evaluates tax positions to determine whether the benefits of tax positions are more likely than not of being sustained upon audit based on the technical merits of the tax position. For tax positions that are more likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement. For tax positions that are not more likely than not of being sustained upon audit, the Company does not recognize any portion of the benefit. If the more likely than not threshold is not met in the period for which a tax position is taken, the Company may subsequently recognize the benefit of that tax position if the tax matter is effectively settled, the statute of limitations expires, or if the more likely than not threshold is met in a subsequent period.

No additional income taxes have been provided for any undistributed foreign earnings or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations.

Regarding the GILTI tax rules, the Company is allowed to make an accounting policy choice of either (1) treating the taxes due on future US inclusions in taxable income as a current-period expense when incurred ("period cost method") or (2) factoring amounts into a Company's measurement of its deferred taxes ("deferred method"). The Company has elected the period cost method.

***Production Credits Under the Inflation Reduction Act***

On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was enacted, and on December 14, 2023, the United States Treasury issued proposed regulations, which provided further guidance related to the Section 45X Advanced Manufacturing Production Credit (AMPC). The IRA includes multiple incentives to promote clean energy, and energy storage manufacturing among other provisions with tax credits available from 2023 to 2032, subject to phase out beginning in 2030. In particular, the IRA creates a refundable tax credit, pursuant to Section 45X of the Internal Revenue Code ("IRC"), for battery cells and battery modules manufactured or assembled in the United States and sold to third parties as well a credit for electrode active material for batteries.

Refundable tax credits are accounted for by analogy to government grants, as the taxpayer can realize the benefit regardless of whether or not they have an income tax liability. Therefore, these amounts are not considered income taxes and fall outside the scope of Topic 740.

The Company accounts for government assistance that is not subject to the scope of ASC 740 using a grant accounting model, by analogy to International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance, and recognizes such grants when the Company has reasonable assurance that it will comply with the grant's conditions and that the grant will be received. The Company recognizes these credits as a reduction in cost of sales within the Consolidated Statement of Income as revenue and costs are recognized on the qualifying finished goods. The AMPCs are also reflected in the Consolidated Balance Sheet as a reduction of income tax payable within accrued expenses and other liabilities. Any credit generated in excess of those liabilities would be recorded as a refund of taxes and reflected in other current assets.

In fiscal 2026, 2025, and 2024, the AMPC impact resulted in a reduction of costs of goods sold and income tax payable of $158,593, $184,592, and $136,360, respectively.

In December 2024, the United States Treasury issued final regulations on section 45X of the Internal Revenue Code (IRC). The issuance of the final regulations and the resulting changes in the evaluation of qualifying products and resulted in a $25,037 change in the estimate to the beginning of the effective date of the IRA, January 1, 2023, through the end of Fiscal 2024.

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***Deferred Financing***

Debt issuance costs that are incurred by the Company in connection with the issuance of debt are deferred and amortized to interest expense over the life of the underlying indebtedness, adjusted to reflect any early repayments and are shown as a deduction from long-term debt.

***Stock-Based Compensation Plans***

The Company measures the cost of employee services received in exchange for the award of an equity instrument based on the grant-date fair value of the award, with such cost recognized over the applicable vesting period.

*Restricted Stock Units*

The fair value of restricted stock units is based on the closing market price of the Company's common stock on the date of grant. These awards generally vest, and are settled in common stock, at 25% per year, over a four-year period from the date of grant. The Company recognizes compensation expense using the straight-line method over the life of the restricted stock units.

*Stock Options*

The fair value of the options granted is estimated at the date of grant using the Black-Scholes option-pricing model utilizing assumptions based on historical data and current market data. The assumptions include expected term of the options, risk-free interest rate, expected volatility, and dividend yield. The expected term represents the expected amount of time that options granted are expected to be outstanding, based on historical and forecasted exercise behavior. The risk-free rate is based on the rate at the grant date of zero-coupon U.S. Treasury Notes with a term equal to the expected term of the option. Expected volatility is estimated using historical volatility rates based on historical weekly price changes over a term equal to the expected term of the options. The Company's dividend yield is based on historical data. The Company recognizes compensation expense using the straight-line method over the vesting period of the options except for those issued to certain retirement-eligible participants, which are expensed on an accelerated basis.

*Forfeitures*

Forfeitures of share-based awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual

forfeitures differ from those estimates.

***Earnings Per Share***

Basic earnings per common share ("EPS") are computed by dividing net earnings attributable to EnerSys stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock utilizing the treasury stock method. At March 31, 2026, 2025 and 2024, the Company had outstanding stock options, restricted stock units, and market condition-based awards, which could potentially dilute basic earnings per share in the future.

***Segment Reporting***

The Company's chief operating decision maker, or CODM (the Company's Chief Executive Officer), reviews financial information for purposes of assessing business performance and allocating resources, by focusing on the lines of business on a global basis. The Company excludes certain items that are not included in the segment performance as these are managed and viewed on a consolidated basis. The Company identifies the following as its four operating segments, based on lines of business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Energy Systems -** uninterruptible power systems, or "UPS" applications for computer and computer-controlled systems, as well as telecommunications systems, switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage and energy pipelines. Energy Systems also includes highly integrated power solutions and services to broadband, telecom, data center, and industrial customers, as well as thermally managed cabinets and enclosures for electronic equipment and batteries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Motive Power -** power for electric industrial forklifts, AGVs other material handling equipment used in manufacturing, and warehousing operations, as well as equipment used in floor care, mining, rail and airport ground support applications.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Specialty -** premium starting, lighting and ignition applications in transportation, energy solutions for satellites, spacecraft, commercial aircraft, military, aircraft, submarines, ships, other tactical vehicles, defense applications and portable power solutions for soldiers in the field, as well as medical devices and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **New Ventures** - energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles.

The operating segments of Energy Systems, Motive Power, and Specialty also represent the Company's reportable segments under ASC 280, *Segment Reporting*.

***Recently Adopted Accounting Standards***

In December 2023, the Financial Accounting Standards Board issued a final standard on improvements to income tax disclosures. The standard requires disclosure of specific categories within the effective tax rate reconciliation and details about significant reconciling items, subject to a quantitative threshold. The standard also requires information on income taxes paid disaggregated by federal, state and foreign based on a quantitative threshold. The standard is effective for fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-09 for the year ended March 31, 2026, and applied the new disclosure requirements prospectively to the current annual period. Prior period disclosures have not been adjusted to reflect the new disclosure requirements. See Note 15 Income Taxes in the accompanying notes to the consolidated financial statements for further detail.

***Recently Issued Accounting Standards not yet adopted***

In November 2024, the Financial Accounting Standards Board issued a final standard on disaggregation of income statement expenses. The standard requires disclosure of more detailed information about certain costs and expenses in the notes to the financial statements. The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027. Early adoption is permitted. The standard is applied prospectively with an option for retrospective adoption. The Company is currently evaluating the impact of adopting this standard on its disclosures.

In December 2025, the Financial Accounting Standards Board issued a final standard on accounting for governmental grants. The standard provides guidance on how business entities should recognize, measure, and present government grants received. The standard is effective for fiscal years beginning after December 15, 2028 and interim periods within those fiscal years. Early adoption is permitted. The standard may be applied using a modified prospective, modified retrospective, or retrospective approach. The Company is currently evaluating the impact of adopting this standard on its disclosures.

***Use of Estimates***

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, and the Company's estimates and assumptions may evolve as conditions change. Actual results could differ from those estimates.

Examples of significant estimates include the allowance for credit losses, the recoverability of property, plant and equipment, the recoverability of intangible assets and other long-lived assets, fair value measurements, including those related to financial instruments, fair value of goodwill and intangible assets, valuation allowances on tax assets, production tax credits under the Inflation Reduction Act, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations.

**2. Revenue Recognition**

The Company's revenues by reportable segments are presented in Note 24.

Service revenues related to the work performed for the Company's customers by its maintenance technicians generally represent a separate and distinct performance obligation. Control for these services passes to the customer as the services are performed.

A small portion of the Company's customer arrangements oblige the Company to create customized products for its customers that require the bundling of both products and services into a single performance obligation because the individual products and services that are required to fulfill the customer requirements do not meet the definition for a distinct performance obligation.

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These customized products generally have no alternative use to the Company and the terms and conditions of these arrangements give the Company the enforceable right to payment for performance completed to date, including a reasonable profit margin. For these arrangements, control transfers over time and the Company measures progress towards completion by selecting the input or output method that best depicts the transfer of control of the underlying goods and services to the customer for each respective arrangement. Methods used by the Company to measure progress toward completion include labor hours, costs incurred and units of production. Revenues recognized over time for fiscal 2026, 2025 and 2024 amounted to $160,128, $188,270 and $251,820, respectively.

On March 31, 2026, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $212,695, of which, the Company estimates that approximately $112,110 will be recognized as revenue in fiscal 2027, $65,445 in fiscal 2028, $23,281 in fiscal 2029, $11,668 in fiscal 2030, and $191 in fiscal 2031 and beyond.

Any payments that are received from a customer in advance, prior to the satisfaction of a related performance obligation and billings in excess of revenue recognized, are deferred and treated as a contract liability. Advance payments and billings in excess of revenue recognized are classified as current or non-current based on the timing of when recognition of revenue is expected. As of March 31, 2026, the current and non-current portion of contract liabilities were $48,080 and $1,830, respectively. As of March 31, 2025, the current and non-current portion of contract liabilities were $28,820 and $488, respectively. Revenues recognized during fiscal 2026 and fiscal 2025, that were included in the contract liability at the beginning of the year, amounted to $8,086 and $11,967, respectively.

Amounts representing work completed and not billed to customers represent contract assets and were $93,798 and $71,774 as of March 31, 2026 and March 31, 2025, respectively.

The Company uses historic customer product return data as a basis of estimation for customer returns and records the reduction of sales at the time revenue is recognized. At March 31, 2026, the right of return asset related to the value of inventory anticipated to be returned from customers was $4,270 and refund liability representing amounts estimated to be refunded to customers was $6,997.

**3. Leases**

The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 16 years. At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset.

Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options.

The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments.

Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments.

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Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method.

Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The current and non-current portion of operating lease liabilities are reflected in accrued expenses and other liabilities, respectively, on the consolidated balance sheets. The right-of use assets relating to operating and finance leases are reflected in other assets and property, plant and equipment, respectively, on the consolidated balance sheets.

The following table presents lease assets and liabilities and their balance sheet classification:

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| | | | |
|:---|:---|:---|:---|
| | **Classification** | **As of** <br>**March 31, 2026** | **As of** <br>**March 31, 2025** |
| Operating Leases: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | Other assets | $70655 | $83635 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease current liabilities | Accrued expenses | 24976 | 22357 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease non-current liabilities | Other liabilities | 52377 | 67033 |
| Finance Leases: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | Property, plant, and equipment, net | $3346 | $915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease current liabilities | Current portion of finance leases | 998 | 265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease non-current liabilities | Finance leases | 2350 | 592 |

---

The components of lease expense for the fiscal years ended March 31, 2026 and March 31, 2025 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Classification** | **March 31, 2026** | **March 31, 2025** |
| Operating Leases: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease cost | Operating expenses | $29232 | $27040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable lease cost | Operating expenses | 6905 | 6338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short term lease cost | Operating expenses | 15733 | 16573 |
| Finance Leases: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | Operating expenses | $911 | $282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | Interest expense | 158 | 66 |
| Total |  | $52939 | $50299 |

---

The following table presents the weighted average lease term and discount rates for leases as of March 31, 2026 and March 31, 2025:

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2025** |
| Operating Leases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average remaining lease term (years) | 4.4 years | 5.1 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average discount rate | 5.66% | 6.06% |
| Finance Leases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average remaining lease term (years) | 3.6 years | 3.2 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average discount rate | 5.29% | 7.07% |

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The following table presents future payments due under leases reconciled to lease liabilities as of March 31, 2026:

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| | | |
|:---|:---|:---|
| | **Finance Leases** | **Operating Leases** |
| Year ended March 31, |  |  |
| 2027 | $1141 | $28942 |
| 2028 | 1052 | 24058 |
| 2029 | 754 | 17047 |
| 2030 | 483 | 9222 |
| 2031 | 215 | 5156 |
| Thereafter |  | 6727 |
| Total undiscounted lease payments | 3645 | 91152 |
| Present value discount | 296 | 13798 |
| Lease liability | $3349 | $77354 |

---

The following table presents supplemental disclosures of cash flow information related to leases for the fiscal years ended March 31, 2026 and March 31, 2025:

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2025** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from finance leases | $156 | $64 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | 29915 | 26022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing cash flows from finance leases | 878 | 268 |
| Supplemental non-cash information on lease liabilities arising from right-of-use assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets obtained in exchange for new finance lease liabilities | $2338 | $302 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets obtained in exchange for new operating lease liabilities | 13651 | 28184 |

---

**4. Acquisition**

***Bren-Tronics***

On July 26, 2024, the Company completed the acquisition of all of the equity of Bren-Tronics Defense LLC for the aggregate purchase price consideration of $206,374 net of cash and restricted cash acquired. Bren-Tronics Defense LLC, headquartered in Commack, New York, is a leading manufacturer of highly reliable portable power solutions, including small and large format lithium batteries and charging solutions, for military and defense applications. The transaction was accounted for as a business combination by applying the acquisition method of accounting.

The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of the acquisition:

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| | |
|:---|:---|
| Trade Receivables | $10325 |
| Inventory | 48362 |
| Prepaid and other current assets | 1392 |
| Property, plant and equipment | 14701 |
| Other intangible assets | 90500 |
| Deferred Taxes | 1069 |
| Other assets | 2003 |
| Total assets acquired | $168352 |
| Accounts payable | 2485 |
| Accrued liabilities | 8078 |
| Other liabilities | 2236 |
| Total liabilities assumed | $12799 |
| Net assets acquired | $155553 |
| Consideration transferred: |  |
| Cash consideration, net of cash and restricted cash acquired | $206374 |
| Total consideration transferred | 206374 |
| Less: Fair value of acquired identifiable assets and liabilities | 155553 |
| Goodwill | $50821 |

---

The amounts above represent the Company's fair value estimates related to the acquisition as of July 26, 2024. The purchase price was allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based on their acquisition date estimated fair values. The fair value of trade receivables acquired is $10,325, with gross contractual amounts being $10,325. The identifiable intangible assets consist of trademarks, customer relationships, and developed technology which were assigned fair values of $4,200, $63,100 and $23,200, respectively. The trade names and trademarks, customer relationships and developed technology are being amortized on a straight-line basis over weighted average useful lives of 6, 13 and 12 years, respectively.

Goodwill represents the excess of the purchase price over the net identifiable tangible and intangible assets acquired. The Company believes the goodwill related to the acquisition was attributable to the value of the assembled workforce as well as the collective experience of the management team with regards to its operations, customers, and industry. All acquired goodwill is deductible for tax purposes.

The results of the Bren-Tronics acquisition have been included in the Company's results of operations in the Specialty operating segment from the date of acquisition. Pro forma earnings and earnings per share computations have not been presented as this acquisition is not considered material.

**5. Accounts Receivable**

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| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| Accounts receivable | $514655 | $606617 |
| Allowance for doubtful accounts | 8583 | 8675 |
| Accounts receivable, net | $506072 | $597942 |

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During the third quarter of fiscal 2023, the Company entered into a Receivables Purchase Agreement ("RPA"), under which the Company continuously sells its interest in designated pools of trade accounts receivables, at a discount, to a special purpose entity, which in turn sells certain of the receivables to an unaffiliated financial institution ("unaffiliated financial institution") on a monthly basis. The Company may sell certain US-originated accounts receivable balances up to a maximum amount of $150,000. On December 15, 2025, the Company entered in an amendment to the RPA, ("Amended RPA"), that increased the aggregate amount of certain US-originated accounts receivable balances to a maximum amount of $250,000 plus an additional $50,000 accordion feature that is uncommitted and subject to certain additional conditions. The Amended RPA added certain additional financial institutions and matures on December 15, 2028. In return for these sales, the Company receives a cash payment equal to the face value of the receivables and is charged a fee of Secured Overnight Financing Rate ("SOFR") plus 85 basis points against the sold receivable balance. The program is conducted through EnerSys Finance LLC ("EnerSys Finance"), an entity structured to be bankruptcy remote. The Company is deemed the primary beneficiary of EnerSys Finance as the Company has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive the benefits that could potentially be significant to the entity from the transfer of the trade accounts receivables into the special purpose entity. Accordingly, EnerSys Finance is included in the Company's Consolidated Financial Statements.

Receivables sold to unaffiliated financial institutions under the program are excluded from "Accounts receivable, net" on the Company's Consolidated Balance Sheets, and cash receipts are reflected as cash provided by operating activities on the Consolidated Statements of Cash Flows. The purchase price is received in cash when the receivables are sold, and fees charged relating to this balance are recorded to other (income) expense. Certain unsold receivables held by EnerSys Finance serve as collateral to unaffiliated financial institutions. These unsold receivables are included in "Accounts receivable, net" in the Company's Consolidated Balance Sheets. The Company continues servicing the receivables which were sold and in exchange receives a servicing fee from EnerSys Finance under the program.

During fiscal 2026, the Company sold $1,021,537 of accounts receivables for approximately $1,021,537 in net proceeds to an unaffiliated financial institution, of which $921,537 were collected as of March 31, 2026. Total collateralized accounts receivables of approximately $418,400, were held by EnerSys Finance at March 31, 2026.

During fiscal 2025, the Company sold $775,236 of accounts receivables for approximately $775,236 in net proceeds to an unaffiliated financial institution, of which $775,236 were collected as of March 31, 2025. Total collateralized accounts receivables of approximately $388,030, were held by EnerSys Finance at March 31, 2025.

Any accounts receivables held by EnerSys Finance would likely not be available to other creditors of the Company in the event of bankruptcy or insolvency proceedings relating to the Company until the outstanding balances under the RPA are satisfied. Additionally, the financial obligations of EnerSys Finance to the unaffiliated financial institutions under the program are limited to the assets it owns and there is no recourse to the Company for receivables that are uncollectible as a result of the insolvency of EnerSys Finance or its inability to pay the account debtors.

**6. Inventories**

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| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| Raw materials | $287705 | $296365 |
| Work-in-process | 111719 | 125459 |
| Finished goods | 325266 | 318170 |
| Total | $724690 | $739994 |

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**7. Property, Plant, and Equipment**

Property, plant, and equipment consist of:

---

| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| Land | $31751 | $32419 |
| Buildings and improvements | 295509 | 289639 |
| Machinery and equipment | 1121542 | 994003 |
| Construction in progress | 57437 | 115500 |
|  | 1506239 | 1431561 |
| Less accumulated depreciation | (913237) | (839128) |
| Total | $593002 | $592433 |

---

Depreciation expense for the fiscal years ended March 31, 2026, 2025, and 2024 totaled $80,116, $69,071, and $64,028, respectively. Interest capitalized in connection with major capital expenditures amounted to $2,849, $4,544, and $1,268 for the fiscal years ended March 31, 2026, 2025 and 2024, respectively.

**8. Goodwill and Other Intangible Assets**

***Other Intangible Assets***

Information regarding the Company's other intangible assets are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31,** | **March 31,** | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
| | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** |
| | **Gross<br>Amount** | **Accumulated<br>Amortization** | **Net<br>Amount** | **Gross<br>Amount** | **Accumulated<br>Amortization** | **Net<br>Amount** |
| Indefinite-lived intangible assets: |  |  |  |  |  |  |
| Trademarks | $128986 | $(953) | $128033 | $129210 | $(953) | $128257 |
| Finite-lived intangible assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer relationships | 357730 | (191394) | 166336 | 356800 | (168932) | 187868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-compete | 2825 | (2825) |  | 2825 | (2825) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology | 119763 | (74966) | 44797 | 119645 | (65160) | 54485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trademarks | 14901 | (11169) | 3732 | 14815 | (9995) | 4820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licenses | 1196 | (1196) |  | 1196 | (1196) |  |
| Total | $625401 | $(282503) | $342898 | $624491 | $(249061) | $375430 |

---

The Company's amortization expense related to finite-lived intangible assets was $33,442, $31,805, and $27,993, for the years ended March 31, 2026, 2025 and 2024, respectively. The expected amortization expense based on the finite-lived intangible assets as of March 31, 2026, is $32,614 in fiscal 2027, $32,120 in fiscal 2028, $30,213 in fiscal 2029, $25,221 in fiscal 2030 and $23,675 in fiscal 2031.

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***Goodwill***

The following table presents the changes in the carrying amount of goodwill by segment during fiscal 2025 and 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Energy Systems** | **Motive Power** | **Specialty** | **Total** |
| Balance at March 31, 2024 | $259011 | $326718 | $97205 | $682934 |
| Acquisitions |  |  | 50821 | 50821 |
| Foreign currency translation adjustment | (13264) | 328 | 254 | (12682) |
| Balance at March 31, 2025 | $245747 | $327046 | $148280 | $721073 |
| Acquisitions |  |  | 16236 | 16236 |
| Foreign currency translation adjustment | 9975 | 3972 | 1168 | 15115 |
| Balance at March 31, 2026 | $255722 | $331018 | $165684 | $752424 |

---

***Impairment of goodwill, finite and indefinite-lived intangibles***

Goodwill is tested annually for impairment during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances that indicate goodwill is more likely than not impaired. The Company did not record any impairment relating to its goodwill during fiscal 2026, 2025, and 2024.

During fiscal year 2026, there were $402 non-cash charges related to impairment of indefinite-lived trademarks under the caption "Impairment of indefinite-lived intangibles" in the Consolidated Statements of Income. During the fiscal year 2024, the Company recorded non-cash charges of $13,619, related to impairment of indefinite-lived trademarks under the caption "Impairment of indefinite-lived intangibles" in the Consolidated Statements of Income. Management completed its evaluation of key inputs used to estimate the fair value of its indefinite-lived trademarks and determined that an impairment charge was appropriate.

The Company estimated tax-deductible goodwill to be approximately $108,580 and $122,904 as of March 31, 2026 and 2025, respectively.

**9. Prepaid and Other Current Assets**

Prepaid and other current assets consist of the following:

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| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| Prepaid income taxes | $280715 | $246816 |
| Contract assets | 93798 | 71774 |
| Prepaid non-income taxes | 19801 | 21357 |
| Non-trade receivables | 15376 | 6674 |
| Other | 62683 | 62126 |
| Total | $472373 | $408747 |

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**10. Accrued Expenses**

Accrued expenses consist of the following:

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| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| Payroll and benefits | $104233 | $90956 |
| Accrued selling expenses | 44162 | 48098 |
| Contract liabilities | 48080 | 28821 |
| Warranty | 27774 | 28090 |
| Operating lease liabilities | 24976 | 22357 |
| Income taxes payable | 24427 | 22110 |
| Freight | 28304 | 19908 |
| VAT and other non-income taxes | 17950 | 14649 |
| Net Investment Hedges | 16076 |  |
| Interest | 9034 | 9025 |
| Other | 74633 | 56593 |
| Total | $419649 | $340607 |

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**11. Debt**

The following summarizes the Company's long-term debt as of March 31, 2026 and March 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2026** | **2026** | **2025** | **2025** |
| | **Principal** | **Unamortized Issuance Costs** | **Principal** | **Unamortized Issuance Costs** |
| Senior Notes | $600000 | $4149 | $600000 | $5276 |
| Amended Credit Facility | 487563 | 3632 | 490000 | 1183 |
|  | $1087563 | $7781 | $1090000 | $6459 |
| Less: Unamortized issuance costs | 7781 |  | 6459 |  |
| Long-term debt, net of unamortized issuance costs | $1079782 |  | $1083541 |  |

---

The Company's Senior Notes comprise the following:

***4.375% Senior Notes due 2027***

On December 11, 2019, the Company issued $300,000 in aggregate principal amount of its 4.375% Senior Notes due December 15, 2027 (the "2027 Notes"). Proceeds from this offering, net of debt issuance costs were $296,250 and were utilized to pay down the Amended 2017 Revolver (defined below). The 2027 Notes bear interest at a rate of 4.375% per annum accruing from December 11, 2019. Interest is payable semiannually in arrears on June 15 and December 15 of each year, commencing on June 15, 2020. The 2027 Notes mature on December 15, 2027, unless earlier redeemed or repurchased in full and are unsecured and unsubordinated obligations of the Company. They are fully and unconditionally guaranteed, jointly and severally, by certain of its subsidiaries that are guarantors under the Sixth Amended Credit Facility (defined below). These guarantees are unsecured and unsubordinated obligations of such guarantors.

The Company may redeem, prior to September 15, 2027, all or a portion of the 2027 Notes at a price equal to 100% of the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid interest and a "make whole" premium to, but excluding, the redemption date. The Company may redeem, on or after September 15, 2027, all or a portion of the 2027 Notes at a price equal to 100% of the principal amount of the 2027 Notes, plus accrued and unpaid interest to, but excluding, the redemption date. If a change of control triggering event occurs, the Company will be required to offer to repurchase the 2027 Notes at a price in cash equal to 101% of the aggregate principal amount of the 2027 Notes, plus accrued and unpaid interest to, but excluding, the date of repurchase.

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***6.625% Senior Notes due 2032***

On January 11, 2024, the Company issued $300,000 in aggregate principal amount of its 6.625% Senior Notes due January 15, 2032 (the "2032 Notes"). Proceeds from this offering, net of debt issuance costs were $297,000 and were utilized to pay down the Fourth Amended Credit Facility. The 2032 Notes bear interest at a rate of 6.625% per annum accruing from January 11, 2024. Interest is payable semiannually in arrears on January 15 and July 15 of each year, commencing on July 15, 2024. The 2032 Notes mature on January 15, 2032, unless earlier redeemed or repurchased in full and are unsecured and unsubordinated obligations of the Company. They are fully and unconditionally guaranteed, jointly and severally, by certain of its subsidiaries that are guarantors under the Fourth Amended Credit Facility (defined below). These guarantees are unsecured and unsubordinated obligations of such guarantors.

The Company may redeem, prior to January 15, 2027, all or a portion of the 2032 Notes at a price equal to 100% of the aggregate principal amount of the 2032 Notes to be redeemed, plus accrued and unpaid interest and a "make whole" premium to, but excluding, the redemption date. The Company may redeem, on or after January 15, 2027, all or a portion of the 2032 Notes at a price equal to 100% of the principal amount of the 2032 Notes, plus accrued and unpaid interest and a redemption premium to, but excluding, the redemption date. The Company may, in compliance with certain conditions, on any one or more occasions redeem up to 40% of the original aggregate principal amount of the 2032 Notes, with the net cash proceeds of one or more equity offerings at a price equal to 106.625% of the aggregate principal amount of the 2032 Notes, plus accrued and unpaid interest to, but excluding, the redemption date. If a change of control triggering event occurs, the Company will be required to offer to repurchase the 2032 Notes at a price in cash equal to 101% of the aggregate principal amount of the 2032 Notes, plus accrued and unpaid interest to, but excluding, the date of repurchase.

***2017 Credit Facility and Subsequent Amendments***

In fiscal 2018, the Company entered into a credit facility (the "2017 Credit Facility"). The 2017 Credit Facility scheduled to mature on September 30, 2022, initially comprised a $600,000 senior secured revolving credit facility ("2017 Revolver") and a $150,000 senior secured term loan ("2017 Term Loan"). The Company utilized the borrowings from the 2017 Credit Facility to repay its pre-existing credit facility.

In fiscal 2019, the Company amended the 2017 Credit Facility (as amended, the "Amended Credit Facility") to fund the Alpha acquisition. The Amended Credit Facility consisted of $449,105 senior secured term loans (the "Amended Term Loan"), including a CAD 133,050 ($99,105) senior secured term loan and a $700,000 senior secured revolving credit facility (the "Amended Revolver"). The amendment resulted in an increase of the 2017 Term Loan and the 2017 Revolver by $299,105 and $100,000, respectively.

During the second quarter of fiscal 2022, the Company entered into a second amendment to the 2017 Credit Facility (as amended, the "Second Amended Credit Facility"). The Second Amended Credit Facility, scheduled to mature on September 30, 2026, consisted of a $130,000 senior secured term loan (the "Second Amended Term Loan"), a CAD 106,440 ($84,229) senior secured term loan and an $850,000 senior secured revolving credit facility (the "Second Amended Revolver"). The second amendment resulted in a decrease of the Amended Term Loan by $150,000 and an increase of the Amended Revolver by $150,000.

During the second quarter of fiscal 2023, the Company entered into a third amendment to the 2017 Credit Facility (as amended, the "Third Amended Credit Facility"). The Third Amended Credit Facility provided a new incremental delayed-draw senior secured term loan up to $300,000 (the "Third Amended Term Loan"), which was be available to draw at any time until March 15, 2023. Once drawn, the funds would have matured on September 30, 2026, the same as the Company's Second Amended Term loan and Second Amended Revolver. In connection with the agreement, the Company incurred $1,161 in third party administrative and legal fees recognized in interest expense and capitalized $1,096 in charges from existing lenders as a deferred asset. During the fourth quarter of fiscal 2023, the Company drew $300,000 in the form of the Third Amended Term Loan. Additionally, the Company derecognized the capitalized deferred asset and recognized the $1,096 as a deferred financing costs.

During the fourth quarter of fiscal 2023, the Company entered into a fourth amendment to the 2017 Credit Facility (as amended, the "Fourth Amended Credit Facility"). The Fourth Amended Credit Facility replaced the London Interbank Offered Rate

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("LIBOR") with the Secured Overnight Financing Rate ("SOFR") in the calculation of interest for both the Second Amended Revolver and the Second Amended Term Loan.

In the fourth quarter of fiscal year 2024, we received proceeds from the issuance of the 2032 Senior Notes and paid down $86,488 and $188,750 towards the Second and Third Amended Term loans and wrote off $753 in deferred finance costs.

In the first quarter of fiscal year 2025, the Company entered into a fifth amendment to the 2017 Credit Facility (as amended, the "Fifth Amended Credit Facility"). The Fifth Amended Credit Facility replaced the Canadian Dollar Offered Rate ("CODR") with term CORRA in the calculation of interest for borrowings denominated in Canadian Dollars.

During the second quarter of fiscal 2026, the Company entered into the sixth amendment to the 2017 Credit Facility (as amended, the "Sixth Amended Credit Facility"). The Sixth Amended Credit Facility provides (i) an upsized revolving credit facility in an aggregate committed amount of $1.0 billion (the " Third Amended Revolver"), which represents an increase of $150 million from the existing revolving credit facility and which matures on September 30, 2030 and (ii) certain other modifications to the existing credit agreement as further set forth in the Sixth Amended Credit Facility. In connection with the Sixth Amended Credit Facility, (i) all of the outstanding term loans (including accrued and unpaid interest thereon) and (ii) all accrued and unpaid interest and fees on the outstanding revolving loans, in each case, under the existing credit agreement were repaid in full.

The Sixth Amended Credit Facility may be increased by an aggregate amount of $615,000 in revolving commitments and /or one or more new tranches of term loans, under certain conditions. The Third Amended Revolver bear interest, at the Company's option, at a rate per annum equal to either (i) the SOFR, CORRA, Euribor or SONIA Base rate as applicable according to credit extended, plus (i) between 1.250% and 2.25% (currently 1.250% and based on the Company's consolidated net leverage ratio) or (ii) the U.S. Dollar Base Rate plus between 0.25% and 1.25%, which equals, for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 0.50%, (b) Bank of America "Prime Rate" and (c) Term SOFR plus 1%; provided that, if the Base Rate shall be less than zero, such rate shall be deemed zero)

Obligations under the Sixth Amended Credit Facility are secured by substantially all of the Company's existing and future acquired assets, including substantially all of the capital stock of the Company's United States subsidiaries that are guarantors under the Sixth Amended Credit Facility and up to 65% of the capital stock of certain of the Company's foreign subsidiaries that are owned by the Company's United States subsidiaries.

The Sixth Amended Credit Facility allows for up to two temporary increases in the maximum leverage ratio to 4.50x from 4.00x for a four quarter period following an acquisition larger than $250,000. Effective with the Sixth Amended Credit Facility, the leverage ratio remains at 4.00x.

As of March 31, 2026, the Company had $487,563 outstanding on the Third Amended Revolver.

***Interest Rates on Long Term Debt***

The weighted average interest rate on the long term debt at March 31, 2026 and March 31, 2025, was 4.9% and 4.5%, respectively.

***Interest Paid***

The Company paid in cash, $53,556, $48,806 and $48,080, net of interest received, for interest during the fiscal years ended March 31, 2026, 2025 and 2024, respectively.

***Covenants***

The Company's financing agreements contain various covenants, which, absent prepayment in full of the indebtedness and other obligations, or the receipt of waivers, would limit the Company's ability to conduct certain specified business transactions including incurring debt, mergers, consolidations or similar transactions, buying or selling assets out of the ordinary course of business, engaging in sale and leaseback transactions, paying dividends and certain other actions. The Company is in compliance with all such covenants.

***Short-Term Debt***

As of March 31, 2026 and 2025, the Company had $29,201 and $28,502, respectively, of short-term borrowings. The weighted-average interest rate on these borrowings was approximately 4.0% and 4.7%, respectively, for fiscal years ended March 31, 2026 and 2025.

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***Letters of Credit***

As of March 31, 2026 and 2025, the Company had $5,856 and $5,584, respectively, of standby letters of credit.

***Debt Issuance Costs***

In fiscal 2026, the Company capitalized $3,462 in debt issuance costs in connection with the Sixth Amendment of the 2017 Credit Facility and wrote off $255 in deferred financing costs related to the Second and Third Amended Term Loans. In fiscal 2024 and 2025, the Company capitalized $4,412 in debt issuance costs in connection with the issuance of the Senior Notes. In fiscal 2024, the Company also wrote off $753 in deferred financing costs related to the Second and Third Amended Term Loans. Amortization expense, relating to debt issuance costs, included in interest expense was $1,925, $1,927, and $1,697 for the fiscal years ended March 31, 2026, 2025 and 2024, respectively. Debt issuance costs, net of accumulated amortization, totaled $7,781 and $6,459 as of March 31, 2026 and 2025, respectively.

***Available Lines of Credit***

As of March 31, 2026 and 2025, the Company had available and undrawn, under all its lines of credit, $565,015 and $652,552, respectively, including $58,347 and $87,982, respectively, of uncommitted lines of credit as of March 31, 2026 and March 31, 2025.

**12. Other Liabilities**

Other liabilities consist of the following:

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| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| Operating lease liabilities | $52377 | $67033 |
| Net investment hedges | 53914 | 33002 |
| Warranty | 45947 | 38331 |
| Pension | 25895 | 25307 |
| Liability for uncertain tax positions | 2790 | 3335 |
| Contract liabilities | 1830 | 2801 |
| Other | 11620 | 5109 |
| Total | $194373 | $174918 |

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**13. Fair Value of Financial Instruments**

***Recurring Fair Value Measurements***

The following tables represent the financial assets and (liabilities) measured at fair value on a recurring basis as of March 31, 2026 and March 31, 2025 and the basis for that measurement:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Total Fair Value Measurement March 31, 2026** | **Quoted Price in<br>Active Markets<br>for Identical<br>Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| Lead forward contracts | $(3521) | $— | $(3521) | $— |
| Foreign currency forward contracts | 1173 |  | 1173 |  |
| Interest rate swaps | (68) |  | (68) |  |
| Net investment hedges | (69990) |  | (69990) |  |
| Total derivatives | $(72406) | $— | $(72406) | $— |

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---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Total Fair Value Measurement March 31, 2025** | **Quoted Price in<br>Active Markets<br>for Identical<br>Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| Lead forward contracts | $(225) | $— | $(225) | $— |
| Foreign currency forward contracts | 1629 |  | 1629 |  |
| Interest Rate Swaps | 5 |  | 5 |  |
| Net investment hedges | (33002) |  | (33002) |  |
| Total derivatives | $(31593) | $— | $(31593) | $— |

---

The fair values of lead forward contracts are calculated using observable prices for lead as quoted on the London Metal Exchange ("LME") and, therefore, were classified as Level 2 within the fair value hierarchy as described in Note 1, Summary of Significant Accounting Policies.

The fair values for foreign currency forward contracts and net investment hedges are based upon current quoted market prices and are classified as Level 2 based on the nature of the underlying market in which these derivatives are traded.

The fair value of interest rate swap agreements are based on observable prices as quoted for receiving the variable one month term SOFR and paying fixed interest rates and, therefore, were classified as Level 2.

***Financial Instruments***

The fair values of the Company's cash and cash equivalents approximate carrying value due to their short maturities.

The fair value of the Company's short-term debt and borrowings under the Second Amended Credit Facility (as defined in Note 10), approximate their respective carrying value, as they are variable rate debt and the terms are comparable to market terms as of the balance sheet dates and are classified as Level 2.

The fair value of the Company's 2032 Notes and 2027 Notes, (collectively, the "Senior Notes") represent the trading values based upon quoted market prices and are classified as Level 2. The 2032 Notes were trading at approximately 102% and 101% of face value on March 31, 2026 and March 31, 2025, respectively. The 2027 Notes were trading at approximately 99% and 96% of face value on March 31, 2026 and March 31, 2025, respectively.

The carrying amounts and estimated fair values of the Company's derivatives and Senior Notes at March 31, 2026 and 2025 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
| | **Carrying<br>Amount** | **Fair Value** | **Carrying<br>Amount** | **Fair Value** |
| **Financial liabilities:** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Notes <sup>(1)</sup> | $600000 | $601425 | $600000 | $591420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives <sup>(2)</sup> | 72406 | 72406 | 31593 | 31593 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)The fair value amount of the Senior Notes at March 31, 2026 and March 31, 2025 represent the trading value of the instruments.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents lead, foreign currency forward contracts, interest rate swaps, and net investment hedges (see Note 14 for asset and liability positions of the lead, foreign currency forward contracts, interest rate swaps, and net investment hedges at March 31, 2026 and March 31, 2025).

***Non-recurring fair value measurements***

The valuation of goodwill and other intangible assets is based on information and assumptions available to the Company at the time of acquisition, using income and market approaches to determine fair value. The Company tests goodwill and other intangible assets annually for impairment, or when indications of potential impairment exist (see Note 1).

Goodwill is tested for impairment by determining the fair value of the Company's reporting units. The unobservable inputs used to measure the fair value of the reporting units include projected growth rates, profitability, and the risk factor premium

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added to the discount rate. The remeasurement of the reporting unit fair value is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed using company-specific information.

The inputs used to measure the fair value of other intangible assets were largely unobservable and accordingly were also classified as Level 3. The fair value of trademarks is based on an estimate of the royalties saved that would have been paid to a third party had the Company not owned the trademark. The fair value of other indefinite-lived intangibles was estimated using the income approach, based on cash flow projections of revenue growth rates, taking into consideration industry and market conditions.

On November 8, 2023, the Company's Board of Directors approved a plan to stop production and operations of residential renewable energy products, which included the OutBack and Mojave brands. Management determined that residential renewable energy products no longer fit with the Company's core strategy and resources will be better allocated toward commercial energy solutions for enterprise customers. As a result the Company's indefinite-lived trademark, which were acquired through acquisition, was recorded at fair value on a non-recurring basis at $880 and the remeasurement resulted in an impairment of $6,020 in the third quarter of fiscal 2024. In determining the fair value of these assets, the Company used a royalty rate of 1.5% based on comparable market rates and used discount rate of 24.5%. The inputs used to measure the fair value were largely unobservable and accordingly were classified as Level 3.

In the fourth quarter of fiscal 2024, the Company finalized a strategy to stop marketing certain brands including the Purcell products. These indefinite-lived trademarks, which were acquired through acquisitions, were recorded at fair value on a non-recurring basis at $7,599 and the remeasurement resulted in the full impairment charge of the carrying value.

In the fourth quarter of fiscal 2026, the Company decided to exit the Sao Paulo, Brazil operations. Associated indefinite-lived trademarks, which were acquired through acquisitions, were recorded at fair value on a non-recurring basis at $402 and the remeasurement resulted in the full impairment charge of the carrying value.

These impairment charges are included under the caption *Impairment of indefinite-lived intangibles* in the Consolidated Statements of Income.

*Hagen, Germany* 

In fiscal 2021, the Company committed to a plan to substantially close all of its facility in Hagen, Germany, which produces flooded motive power batteries for forklifts. Management determined that future demand for the motive power batteries produced at this facility was not sufficient, given the conversion from flooded to maintenance free batteries by customers, the existing number of competitors in the market, as well as the near term decline in demand and increased uncertainty from the pandemic. As a result, the Company concluded that the carrying value of the asset group was not recoverable and recorded a write-off of $3,975 of the fixed assets to their estimated fair value of $14,456, which was recognized in the third quarter of fiscal 2021. The valuation technique used to measure the fair value of fixed assets was a combination of the income and market approaches. The inputs used to measure the fair value of these fixed assets under the income approach were largely unobservable and accordingly were classified as Level 3.

In the fourth quarter of fiscal 2025, the Company reclassified property, plant and equipment with a carrying value of $7,000 to assets held for sale on the Consolidated Balance Sheet and recognized an impairment loss of $4,867 under the caption *Loss on assets held for sale* on its consolidated statement of income, by recording the carrying value of these assets to their estimated fair value of $2,113, based on a non-recurring basis. In the fourth quarter of fiscal 2026, the Company recorded a gain on assets held for sale previously impaired of $1,187 based on a non-recurring basis. The fair value was based on the expected proceeds, less costs to sell.

**14. Derivative Financial Instruments**

The Company utilizes derivative instruments to reduce its exposure to fluctuations in commodity prices, foreign exchange rates and interest under established procedures and controls. The Company does not enter into derivative contracts for speculative purposes. The Company's agreements are with creditworthy financial institutions and the Company anticipates performance by counterparties to these contracts and therefore no material loss is expected.

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***Derivatives in Cash Flow Hedging Relationships***

*Lead Forward Contracts*

The Company enters into lead forward contracts to fix the price for a portion of its lead purchases. Management considers the lead forward contracts to be effective against changes in the cash flows of the underlying lead purchases. The vast majority of such contracts are for a period not extending beyond one year. At March 31, 2026 and 2025, the Company has hedged the price to purchase approximately 82.7 million pounds and 70.0 million pounds of lead, respectively, for a total purchase price of $74,909 and $63,841, respectively.

*Foreign Currency Forward Contracts*

The Company uses foreign currency forward contracts and options to hedge a portion of the Company's foreign currency exposures for lead, as well as other foreign currency exposures so that gains and losses on these contracts offset changes in the underlying foreign currency denominated exposures. The vast majority of such contracts are for a period not extending beyond one year. As of March 31, 2026 and 2025, the Company had entered into a total of $36,771 and $39,196, respectively, of such contracts.

*Interest Rate Swap Agreements*

The Company is exposed to changes in variable interest rates on borrowings under our credit agreement. On a selective basis, from time to time, it enters into interest rate swap agreements to reduce the negative impact that increases in interest rates could have on our outstanding variable rate debt. At March 31, 2026 and 2025 such agreements effectively convert $200,000 of our variable-rate debt to a fixed-rate basis, utilizing the one-month term SOFR, as a floating rate reference. Fluctuations in SOFR and fixed rates affect both our net financial investment position and the amount of cash to be paid or received by us under these agreements.

***Derivatives in Net Investment Hedging Relationships***

*Net Investment Hedges*

The Company uses cross currency fixed interest rate swaps to hedge its net investments in foreign operations against future volatility in the exchange rates between the U.S. Dollar and Euro.

On September 29, 2022, the Company entered into cross-currency fixed interest rate swap contracts with an aggregate notional amount of $150,000, maturing on December 15, 2027. On July 2, 2024, the Company entered into cross-currency fixed interest rate swap contracts with an aggregate notional amount of $150,000, maturing on January 15, 2029. Additionally, on December 23, 2024 and December 24, 2024 , the Company entered into cross-currency fixed interest rate swap contracts each with an aggregate notional amount of $150,000, maturing on June 15, 2028 and December 15, 2026, respectively. The cross-currency fixed interest rate swap contracts qualify for hedge accounting as a net investment hedging instrument, which allows for them to be remeasured to foreign currency translation adjustment within AOCI ("Accumulated Other Comprehensive Income") to offset the translation risk from those investments. Balances in the foreign currency translation adjustment accounts remain until the sale or substantially complete liquidation of the foreign entity, upon which they are recognized as a component of income (expense).

***Impact of Hedging Instruments on AOCI***

In the coming twelve months, the Company anticipates that $476 of pretax gain relating to lead, foreign currency forward contracts, interest rate swaps, and net investment hedges will be reclassified from AOCI as part of cost of goods sold and interest expense. This amount represents the current net unrealized impact of hedging lead, foreign exchange rates and interest rates, which will change as market rates change in the future. This amount will ultimately be realized in the Consolidated Statements of Income as an offset to the corresponding actual changes in lead, foreign exchange rates and lead costs resulting from variable lead cost, foreign exchange and interest rates hedged.

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***Derivatives not Designated in Hedging Relationships***

*Foreign Currency Forward Contracts*

The Company also enters into foreign currency forward contracts to economically hedge foreign currency fluctuations on intercompany loans and foreign currency denominated receivables and payables. These are not designated as hedging instruments and changes in fair value of these instruments are recorded directly in the Consolidated Statements of Income. As of March 31, 2026 and 2025, the notional amount of these contracts was $76,262 and $63,146, respectively.

Presented below in tabular form is information on the location and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Income:

**Fair Value of Derivative Instruments**

**March 31, 2026 and 2025** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Derivatives and Hedging Activities Designated as Cash Flow Hedges** | **Derivatives and Hedging Activities Designated as Cash Flow Hedges** | **Derivatives and Hedging Activities Designated as Net Investment Hedges** | **Derivatives and Hedging Activities Designated as Net Investment Hedges** | **Derivatives and Hedging Activities Not Designated as Hedging Instruments** | **Derivatives and Hedging Activities Not Designated as Hedging Instruments** |
| | **March 31, 2026** | **March 31, 2025** | **March 31, 2026** | **March 31, 2025** | **March 31, 2026** | **March 31, 2025** |
| Prepaid and other current assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lead forward contracts | $— | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency forward contracts | 336 |  |  |  | 837 | 1919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment hedges |  |  |  |  |  |  |
| Other Assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps |  | 5 |  |  |  |  |
| Total assets | $336 | $5 | $— | $— | $837 | $1919 |
| Accrued expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lead forward contracts | $3521 | $225 | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency forward contracts |  | 290 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment hedges |  |  | 16076 |  |  |  |
| Other liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | 68 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment hedges |  |  | 53914 | 33002 |  |  |
| Total liabilities | $3589 | $515 | $69990 | $33002 | $— | $— |

---

**The Effect of Derivative Instruments on the Consolidated Statements of Income**

**For the fiscal year ended March 31, 2026** 

---

| | | | |
|:---|:---|:---|:---|
| **Derivatives Designated as Cash Flow Hedges** | **Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)** | **Location of Gain<br>(Loss) Reclassified<br>from<br>AOCI into Income<br>(Effective Portion)** | **Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)** |
| Lead forward contracts | $(8686) | Cost of goods sold | $(3323) |
| Foreign currency forward contracts | (1133) | Cost of goods sold | (1064) |
| Interest Rate Swaps | 677 | Interest expense | 750 |
| Total | $(9142) |  | $(3637) |

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| | | | |
|:---|:---|:---|:---|
| **Derivatives Designated as Net Investment Hedges** | **Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)** | **Location of Gain<br>(Loss) Reclassified<br>from<br>AOCI into Income<br>(Effective Portion)** | **Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)** |
| Cross currency fixed interest rate swaps | $(29959) | Interest expense | $7029 |
| Total | $(29959) |  | $7029 |

---

---

| | | |
|:---|:---|:---|
| **Derivatives Not Designated as Hedging Instruments** | **Location of Gain (Loss)<br>Recognized in Income<br>on Derivatives** | **Pretax Gain (Loss)** |
| Foreign currency forward contracts | Other (income) expense, net | $(409) |
| Total |  | $(409) |

---

**The Effect of Derivative Instruments on the Consolidated Statements of Income**

**For the fiscal year ended March 31, 2025** 

---

| | | | |
|:---|:---|:---|:---|
| **Derivatives Designated as Cash Flow Hedges** | **Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)** | **Location of Gain<br>(Loss) Reclassified<br>from<br>AOCI into Income<br>(Effective Portion)** | **Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)** |
| Lead forward contracts | $(3703) | Cost of goods sold | $(4880) |
| Foreign currency forward contracts | 1475 | Cost of goods sold | 1297 |
| Interest rate swaps | (825) | Interest Expense | 1866 |
| Total | $(3053) |  | $(1717) |

---

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| | | | |
|:---|:---|:---|:---|
| **Derivatives Designated as Net Investment Hedges** | **Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)** | **Location of Gain<br>(Loss) Reclassified<br>from<br>AOCI into Income<br>(Effective Portion)** | **Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)** |
| Cross currency fixed interest rate swaps | $(9422) | Interest expense | $4413 |
| Total | $(9422) |  | $4413 |

---

---

| | | |
|:---|:---|:---|
| **Derivatives Not Designated as Hedging Instruments** | **Location of Gain (Loss)<br>Recognized in Income<br>on Derivatives** | **Pretax Gain (Loss)** |
| Foreign currency forward contracts | Other (income) expense, net | $3136 |
| Total |  | $3136 |

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**The Effect of Derivative Instruments on the Consolidated Statements of Income**

**For the fiscal year ended March 31, 2024** 

---

| | | | |
|:---|:---|:---|:---|
| **Derivatives Designated as Cash Flow Hedges** | **Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)** | **Location of Gain<br>(Loss) Reclassified<br>from<br>AOCI into Income<br>(Effective Portion)** | **Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)** |
| Lead forward contracts | $(455) | Cost of goods sold | $5388 |
| Foreign currency forward contracts | 1740 | Cost of goods sold | 612 |
| Interest rate swaps | $6915 | Interest expense | $3057 |
| Total | $8200 |  | $9057 |

---

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| | | | |
|:---|:---|:---|:---|
| **Derivatives Designated as Net Investment Hedges** | **Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)** | **Location of Gain<br>(Loss) Reclassified<br>from<br>AOCI into Income<br>(Effective Portion)** | **Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)** |
| Cross currency fixed interest rate swaps | $(2695) | Interest expense | $713 |
| Total | $(2695) |  | $713 |

---

---

| | | |
|:---|:---|:---|
| **Derivatives Not Designated as Hedging Instruments** | **Location of Gain (Loss)<br>Recognized in Income<br>on Derivatives** | **Pretax Gain (Loss)** |
| Foreign currency forward contracts | Other (income) expense, net | $(846) |
| Total |  | $(846) |

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**15. Income Taxes**

The components of provision for income taxes for all periods presented were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| **Current income tax expense** | **2026** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $10886 | $39021 | $21785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | 3943 | 11147 | 3252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | 24609 | 24599 | 27396 |
| Total current income tax expense | 39438 | 74767 | 52433 |
| **Deferred income tax (benefit) expense** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $3162 | $(6000) | $(25008) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | (663) | (1446) | (3564) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign | 11912 | (24479) | (772) |
| Total deferred income tax (benefit) expense | 14411 | (31925) | (29344) |
| **Total income tax expense** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $14048 | $33021 | $(3223) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | 3280 | 9701 | (312) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | 36521 | 120 | 26624 |
| Total income tax expense | $53849 | $42842 | $23089 |

---

Income before provision for income taxes for fiscal years ended March 31, 2026, 2025, and 2024 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| **Income from continuing operations before income tax expense** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States | $196721 | $201332 | $99230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | 150685 | 205245 | 192955 |
| Total income from continuing operations before income tax expense | $347406 | $406577 | $292185 |

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The following table sets forth the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities:

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| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| **Deferred tax assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | $— | $278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 13657 | 13154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating loss carryforwards | 48813 | 44442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 18488 | 21016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized R&D Expenditures | 51128 | 48856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 55119 | 42909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 23305 | 22080 |
| Gross deferred tax assets | 210510 | 192735 |
| Less valuation allowance | (34223) | (25594) |
| Total deferred tax assets | 176287 | 167141 |
| **Deferred tax liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 90 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | 60593 | 49025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease Right-of-use assets | 18488 | 21016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | 36968 | 32332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 5049 | 7616 |
| Total deferred tax liabilities | 121188 | 109989 |
| Net deferred tax assets (liabilities) | $55099 | $57152 |

---

The Company has approximately $179 in United States federal net operating loss carryforwards, all of which are limited by Section 382 of the Internal Revenue Code, that expire in fiscal 2027. The Company has approximately $175,133 of foreign net operating loss carryforwards, of which $126,150 may be carried forward indefinitely and $48,983 expire between fiscal 2027 and fiscal 2046. In addition, the Company also has approximately $17,085 of state net operating loss carryforwards with expirations between fiscal 2028 and fiscal 2046.

The following table sets forth the changes in the Company's valuation allowance for fiscal 2026, 2025 and 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Balance at <br>Beginning of <br>Period** | **Additions <br>Charged to <br>Expense** | **Valuation Allowance Reversal** | **Other**<sup>(1)</sup>  | **Balance at <br>End of <br>Period** |
| Fiscal year ended March 31, 2024 | 31172 | 9463 | (2614) | (2267) | 35754 |
| Fiscal year ended March 31, 2025 | 35754 | 4949 | (9219) | (5890) | 25594 |
| Fiscal year ended March 31, 2026 | 25594 | 9314 | (1426) | 741 | 34223 |

---

(1)Includes the impact of currency changes and the expiration of net operating losses for which a full valuation allowance was recorded.

As of March 31, 2026 and 2025, the Company had no federal valuation allowance and the valuation allowance associated with the state tax jurisdictions was $468.

As of March 31, 2026 and 2025, the valuation allowance associated with certain foreign tax jurisdictions was $33,755 and $25,126, respectively. Of the net increase of $8,629, $7,888 was recorded as a increase to tax expense primarily related to deferred tax assets generated in the current year that the Company believes are not more likely than not to be realized, and by $741 primarily related to foreign currency translation adjustments and expiration of foreign net operating losses for which a full valuation allowance was recorded.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:

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| | | |
|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2026** |
| **US federal statutory income tax rate** | 72955 | 21.0% |
| **Domestic federal** |  |  |
| &nbsp;&nbsp;Tax credits |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AMPC Impact | (33305) | (9.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other tax credits | (970) | (0.3)% |
| &nbsp;&nbsp;Nontaxable and nondeductible items |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nondeductible officer's compensation | 4724 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (894) | (0.3)% |
| &nbsp;&nbsp;Cross-border tax laws |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Global intangible low-taxed income | 4129 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 724 | 0.2% |
| &nbsp;&nbsp;Other reconciling items | (53) | —% |
| **Domestic state and local income taxes, net of federal (1)** | 2453 | 0.7% |
| **Foreign tax effects** |  |  |
| Brazil |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in valuation | 8384 | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (2180) | (0.6)% |
| Mexico |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax incentives | (5310) | (1.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 2243 | 0.6% |
| Switzerland |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory income tax rate | (14472) | (4.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cantonal Taxes | 5476 | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;IP Transaction | 4208 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1215 | 0.3% |
| Other foreign jurisdictions | 5313 | 1.5% |
| **Changes in unrecognized tax benefits** | (791) | (0.2)% |
| **Total income tax** | 53849 | 15.5% |

---

(1) During the year ended March 31, 2026, state taxes in California, Florida, Illinois, Pennsylvania, and Texas comprise the majority (greater than 50%) of the tax effect in this category.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:

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| | | |
|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2025** | **2024** |
| United States statutory income tax expense | $85381 | $61358 |
| Increase (decrease) resulting from: |  |  |
| State income taxes, net of federal effect | 7361 | (995) |
| Nondeductible expenses and other | 14135 | 3833 |
| Net effect of GILTI, FDII, BEAT | 3322 | 3313 |
| Effect of foreign operations | (14074) | (17475) |
| Valuation allowance | (4270) | 6849 |
| Research and Development Credit | (5652) | (5158) |
| AMPC Impact | (38764) | $(28636) |
| Tax Act | (4597) | $— |
| Total | $42842 | $23089 |

---

The Organization for Economic Co-operation and Development (OECD) has adopted model rules to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2), with certain aspects of Pillar 2 effective for taxable years beginning after December 31, 2023.

On January 5, 2026, the OECD issued the Side-by-Side package (the "SbS Package"), which provides administrative guidance that modifies the application of the Pillar Two rules. The SbS Package includes simplifications and additional safe harbors intended to facilitate coordination between domestic and international tax regimes and the Pillar Two framework. If adopted by relevant jurisdictions, certain provisions of the SbS Package could result in U.S.-parented groups being exempt from the application of two of the three Pillar Two top-up taxes.

The SbS Package is expected to be available for fiscal years beginning on or after January 1, 2026. The safe harbors are not self-executing and generally would require enactment through domestic legislation (and related interpretive guidance) by each Inclusive Framework member, subject to local legislative processes and timelines, as well as potential guidance related to the European Union ("EU") Minimum Tax Directive. The Company continues to monitor developments and assess the potential impact of the SbS Package on its results of operations. In addition, the SbS Package extends the Transitional Country-by-Country Reporting ("CbCR") Safe Harbor by one year, through the end of fiscal year 2027. The Company continues to refine the effective tax rate and cash tax impact for Pillar 2 considering legislative changes in multiple countries.

On July 4, 2025, the "One Big Beautiful Bill Act" ("OBBBA") was enacted into law. The law included permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and changes to the tax treatment for certain business provisions and energy credits.

The impact of the enacted legislation is included in our effective tax rate. The Company will continue to monitor and evaluate as new legislation and guidance is issued.

On August 26, 2024, the U.S. Tax Court issued a ruling in *Varian Medical Systems, Inc. v. Commissioner ("Varian")*. The ruling related to the U.S. taxation of deemed foreign dividends in the transition tax of the Tax Cuts and Jobs Act ("Tax Act") which was originally recorded in fiscal 2018. The impact of the ruling was included in our fiscal 2025 results.

In fiscal 2025 the Company entered into a cost sharing arrangement and platform contribution transaction ("IP Transaction") related to certain intellectual property between the EnerSys U.S. and a Swiss subsidiary. Although the transaction between consolidated entities did not result in any gain in the consolidated statement of operations, the Company recorded a net tax expense of approximately $2,500 in fiscal 2025 and $5,897 in fiscal 2026. The net expense represents the tax recognized by the selling jurisdiction offset by the value of future tax deductions for amortization of the assets in the acquiring jurisdiction.

The effective income tax rates for the fiscal years ended March 31, 2026, 2025 and 2024 were 15.5%, 10.5% and 7.9%, respectively. The effective income tax rate with respect to any period may be volatile based on the mix of income in the tax jurisdictions in which the Company operates and the amount of its consolidated income before taxes. The rate increase in fiscal 2026 compared to fiscal 2025 is primarily due to the impact of changes in valuation allowances, IP Transaction, the impact of *Varian* in fiscal 2025, and mix of earnings among tax jurisdictions. The rate increase in fiscal 2025 compared to fiscal 2024 is primarily due to the impact of Pillar 2, IP Transaction, and mix of earnings among tax jurisdictions offset by the impact of *Varian*.

In fiscal 2026, the foreign effective income tax rate on foreign pre-tax income of $150,685 was 24.2%. In fiscal 2025, the foreign effective income tax rate on foreign pre-tax income of $205,245 was 0.1% and in fiscal 2024, the foreign effective

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income tax rate on foreign pre-tax income of $192,955 was 13.8%. The rate increase in fiscal 2026 compared to fiscal 2025 is primarily due to the impact of changes in valuation allowances, IP Transaction, and changes in mix of earnings among tax jurisdictions. The rate decrease in fiscal 2025 compared to fiscal 2024 is primarily due to the IP Transaction offset by changes in mix of earnings among tax jurisdictions.

Income from the Company's Swiss subsidiary comprised a substantial portion of its overall foreign mix of income for the fiscal years ended March 31, 2026, 2025 and 2024 and was taxed at approximately 16%, 13% and 9%, respectively.The rate increase in fiscal 2026 compared to fiscal 2025 is primarily related to the IP Transaction.

A portion of the Company's undistributed earnings of foreign subsidiaries is not considered indefinitely reinvested and, accordingly, the Company recorded additional income taxes in prior years. The Company intends to continue to indefinitely reinvest the remaining undistributed foreign earnings and outside basis differences. While substantially all of the Company's undistributed earnings of foreign subsidiaries have been taxed in the United States, distributions may be subject to foreign withholding taxes and additional U.S. income taxes (net of applicable foreign tax credits). The determination of the deferred tax liability related to unremitted earnings and outside basis differences for which the Company asserts indefinite reinvestment is not practicable.

**Uncertain Tax Positions**

The following table summarizes activity of the total amounts of unrecognized tax benefits:

---

| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| Balance at beginning of year | $2880 | $2845 | $3495 |
| Increases related to current year tax positions | 243 | 630 | (2) |
| Decreases related to prior tax positions |  |  | (129) |
| Decreases related to prior year tax positions settled |  |  |  |
| Lapse of statute of limitations | (723) | (595) | (519) |
| Balance at end of year | $2400 | $2880 | $2845 |

---

All of the balance of unrecognized tax benefits at March 31, 2026, if recognized, would be included in the Company's Consolidated Statements of Income and have a favorable impact on both the Company's net earnings and effective tax rate.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions and is routinely subject to income tax examinations. As of March 31, 2026, the most significant tax examinations in process are the United States and Switzerland. The Company regularly assesses the likely outcomes of its tax audits and disputes to determine the appropriateness of its tax reserves. However, any tax authority could take a position on tax treatment that is contrary to the Company's expectations, which could result in tax liabilities in excess of reserves. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2009.

The Company recognizes tax related interest and penalties in income tax expense in its Consolidated Statements of Income. As of March 31, 2026 and 2025, the Company had an accrual of $390 and $455, respectively, for interest and penalties.

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The amounts of cash income taxes paid by the Company were as follows:

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| | |
|:---|:---|
| | **Fiscal year ended March 31,** |
| | **2026** |
| **Federal** | $14689 |
| **State** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12238 |
| **Foreign** |  |
| &nbsp;&nbsp;France | 3000 |
| &nbsp;&nbsp;Switzerland - Federal | 5913 |
| &nbsp;&nbsp;Switzerland – Cantonal/Communal | 2718 |
| &nbsp;&nbsp;Other | 12950 |
| Total income taxes paid | $51508 |

---

The amount of cash income taxes paid by the Company during the years ended March 31, 2025 and 2024 was $40,410 and $28,810, respectively.

**16. Retirement Plans**

*Defined Benefit Plans*

The Company sponsors several retirement and pension plans covering eligible salaried and hourly employees. The Company uses a measurement date of March 31 for its pension plans.

Net periodic pension cost for fiscal 2026, 2025 and 2024, includes the following components:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **United States Plans** | **United States Plans** | **United States Plans** | **International Plans** | **International Plans** | **International Plans** |
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** | **2026** | **2025** | **2024** |
| Service cost | $— | $— | $— | $1080 | $954 | $884 |
| Interest cost |  | 491 | 657 | 1726 | 2501 | 2215 |
| Expected return on plan assets | 97 | (141) | (424) | (252) | (1421) | (1244) |
| Amortization and deferral |  | (61) |  | 301 | 582 | 326 |
| Settlement (loss) gain |  | (1548) |  | 9711 |  |  |
| Net periodic benefit cost | $97 | $(1259) | $233 | $12566 | $2616 | $2181 |

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The following table sets forth a reconciliation of the related benefit obligation, plan assets, and accrued benefit costs related to the pension benefits provided by the Company for those employees covered by defined benefit plans:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **United States Plans** | **United States Plans** | **International Plans** | **International Plans** |
| | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| **Change in projected benefit obligation** |  |  |  |  |
| Benefit obligation at the beginning of the period | $— | $13313 | $53802 | $55806 |
| Service cost |  |  | 1080 | 954 |
| Interest cost |  | 491 | 1726 | 2501 |
| Benefits paid, inclusive of plan expenses |  | (635) | (2382) | (2759) |
| Plan curtailments and settlements |  | (13338) | (27349) |  |
| Plan combinations |  |  |  |  |
| Actuarial (gains) losses |  | 169 | (1810) | (3601) |
| Foreign currency translation adjustment |  |  | 2721 | 901 |
| Benefit obligation at the end of the period | $— | $— | $27788 | $53802 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Change in plan assets** | | | | |
| Fair value of plan assets at the beginning of the period | $1157 | $15153 | $30164 | $32563 |
| Actual return on plan assets | (97) | (23) | (587) | (2075) |
| Employer contributions | (1060) |  | 1877 | 1720 |
| Benefits paid, inclusive of plan expenses |  | (635) | (2382) | (2759) |
| Plan curtailments and settlements |  | (13338) | (27349) |  |
| Foreign currency translation adjustment |  |  | 1184 | 715 |
| Fair value of plan assets at the end of the period | $— | $1157 | $2907 | $30164 |
| Funded status surplus (deficit) | $— | $1157 | $(24881) | $(23638) |

---

---

| | | |
|:---|:---|:---|
| | **March 31,** | **March 31,** |
| | **2026** | **2025** |
| Amounts recognized in the Consolidated Balance Sheets consist of: |  |  |
| Non-current assets | $2599 | $4409 |
| Accrued expenses | (1585) | (1583) |
| Other liabilities | (25895) | (25307) |
| Funded status deficit | $(24881) | $(22481) |

---

The following table represents pension components (before tax) and related changes (before tax) recognized in AOCI for the Company's pension plans for the years ended March 31, 2026, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| Amounts recorded in AOCI before taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior service cost | $(1) | $(43) | $(85) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | (675) | (11145) | (9590) |
| Net amount recognized | $(676) | $(11188) | $(9675) |

---

The following table represents changes in plan assets and benefit obligations recognized in AOCI for the Company's pension plans for the years ended March 31, 2026, 2025 and 2024:

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| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| Changes in plan assets and benefit obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss (gain) arising during the year | $(971) | $228 | $7439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of exchange rates on amounts included in AOCI | 471 | 260 | 127 |
| Amounts recognized as a component of net periodic benefit costs: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service cost | (45) | (42) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization or settlement recognition of net loss | (9966) | 1069 | (284) |
| Total recognized in other comprehensive (income) loss | $(10511) | $1515 | $7240 |

---

The amounts included in AOCI as of March 31, 2026 that are expected to be recognized as components of net periodic pension cost (before tax) during the next twelve months are as follows:

---

| | |
|:---|:---|
| Prior service cost | $1 |
| Net loss | (10) |
| Net amount expected to be recognized | $(9) |

---

The accumulated benefit obligation related to all defined benefit pension plans and information related to unfunded and underfunded defined benefit pension plans at the end of each fiscal year are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **United States Plans** | **United States Plans** | **International Plans** | **International Plans** |
| | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
| | **2026** | **2025** | **2026** | **2025** |
| All defined benefit plans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated benefit obligation | $— | $— | $26152 | $51690 |
| Unfunded defined benefit plans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Projected benefit obligation | $— | $— | $27474 | $26871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated benefit obligation |  |  | 25868 | 24787 |
| Defined benefit plans with a projected benefit obligation in excess of the fair value of plan assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Projected benefit obligation | $— | $— | $27788 | $27214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value of plan assets |  |  | 308 | 325 |
| Defined benefit plans with an accumulated benefit obligation in excess of the fair value of plan assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Projected benefit obligation | $— | $— | $27474 | $26871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated benefit obligation |  |  | 25868 | 24787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value of plan assets |  |  |  |  |

---

**Assumptions**

Significant assumptions used to determine the net periodic benefit cost for the U.S. and International plans were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **United States Plans** | **United States Plans** | **United States Plans** | **International Plans** | **International Plans** | **International Plans** |
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** | **2026** | **2025** | **2024** |
| Discount rate | N/A | 5.2% | 4.9% | 3.3%-5.9% | 3.8%-5.3% | 3.5%-6% |
| Expected return on plan assets | N/A | 3.25 | 5.5 | 5.3-5.75 | 4.8-5.0 | 4-4.7 |
| Rate of compensation increase | N/A | N/A | N/A | 2.0-4.5 | 2.5-4.5 | 2.3-4.5 |

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N/A = not applicable

Significant assumptions used to determine the projected benefit obligations for the U.S. and International plans were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **United States Plans** | **United States Plans** | **International Plans** | **International Plans** |
| | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
| | **2026** | **2025** | **2026** | **2025** |
| Discount rate | N/A | N/A | 3.3%-5.1% | 3.3%-5.9% |
| Rate of compensation increase | N/A | N/A | 2.0-4.0 | 2.0-4.5 |

---

N/A = not applicable

The expected long-term rate of return for the Company's pension plan assets is based upon the target asset allocation and is determined using forward looking assumptions in the context of historical returns and volatilities for each asset class, as well as correlations among asset classes. The Company evaluates the rate of return assumptions for each of its plans on an annual basis.

**Pension Plan Investment Strategy** 

The US plan has been terminated during fiscal 2025. All expenses associated with the plan termination have been paid, and excess cash has been returned to the Company. In fiscal 2024, the UK plan entered in an annuity insurance contract and the UK plan was fully insured. In fiscal 2026, the UK plan was terminated and once all expenses associated with the plan termination have been paid, any excess cash will be returned to the Company.

The following table represents the Company's pension plan investments measured at fair value as of March 31, 2026 and 2025 and the basis for that measurement:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **United States Plans** | **United States Plans** | **United States Plans** | **United States Plans** | **International Plans** | **International Plans** | **International Plans** | **International Plans** |
| | **Total Fair<br>Value<br>Measurement** | **Quoted Price<br>In Active<br>Markets<br>for Identical<br>Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** | **Total Fair<br>Value<br>Measurement** | **Quoted Price<br>In Active<br>Markets<br>for Identical<br>Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| **Asset category:** | | | | | | | | |
| **Cash and cash equivalents** | $— | $— | $— | $— | $2599 | $2599 | $— | $— |
| **Fixed income**<sup>(a)</sup> |  |  |  |  | 308 |  | 308 |  |
| **Other investments**<sup>(b)</sup> |  |  |  |  |  |  |  |  |
| **Total** | $— | $— | $— | $— | $2907 | $2599 | $308 | $— |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| | **United States Plans** | **United States Plans** | **United States Plans** | **United States Plans** | **International Plans** | **International Plans** | **International Plans** | **International Plans** |
| | **Total Fair<br>Value<br>Measurement** | **Quoted Price<br>In Active<br>Markets<br>for Identical<br>Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** | **Total Fair<br>Value<br>Measurement** | **Quoted Price<br>In Active<br>Markets<br>for Identical<br>Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| **Asset category:** | | | | | | | | |
| **Cash and cash equivalents** | $1157 | $1157 | $— | $— | $3252 | $3252 | $— | $— |
| **Fixed income**<sup>(a)</sup> |  |  |  |  | 324 |  | 324 |  |
| **Other investments**<sup>(b)</sup> |  |  |  |  | 26588 |  |  | 26588 |
| **Total** | $1157 | $1157 | $— | $— | $30164 | $3252 | $324 | $26588 |

---

The fair values presented above were determined based on valuation techniques to measure fair value as discussed in Note 1.

&nbsp;&nbsp;&nbsp;&nbsp;(a)Fixed income consists primarily of investment grade bonds from diversified industries.

&nbsp;&nbsp;&nbsp;&nbsp;(b)Other investments consists of a buy-in annuity insurance contract. The fair value of the buy-in policy is set equal to the value of the obligations as determined by the actuary. This value is considered Level 3 due to the use of the significant unobservable inputs.

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**Level 3 Rollforward**

The following presents our Level 3 Rollforward for our defined pension plan assets:

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| | |
|:---|:---|
| Beginning of year balance as of March 31, 2024 | $28497 |
| Actual return on plan assets, relating to assets still held at the reporting date | (1511) |
| Purchases | (1024) |
| Change due to exchange rate changes | 626 |
| End of year balance as of March 31, 2025 | $26588 |
| Actual return on plan assets, relating to assets still held at the reporting date | (562) |
| Plan Settlements | (27185) |
| Change due to exchange rate changes | 1159 |
| End of year balance as of March 31, 2026 | $— |

---

The Company expects to make cash contributions of approximately $1,621 to its pension plans in fiscal 2027.

Estimated future benefit payments under the Company's pension plans are as follows:

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| | |
|:---|:---|
| 2027 | $1620 |
| 2028 | 1663 |
| 2029 | 2226 |
| 2030 | 2627 |
| 2031 | 2145 |
| Years 2032-2036 | 13230 |

---

*Defined Contribution Plan*

The Company maintains defined contribution plans primarily in the U.S. and U.K. eligible employees can contribute a portion of their pre-tax and / or after-tax income in accordance with plan guidelines and the Company will make contributions based on the employees' eligible pay and /or will match a percentage of the employee contributions up to certain limits. Matching contributions charged to expense for the fiscal years ended March 31, 2026, 2025 and 2024 were $22,166, $22,031 and $22,819, respectively.

**17. Stockholders' Equity** 

 *Preferred Stock and Common Stock*

The Company's certificate of incorporation authorizes the issuance of up to 1,000,000 shares of preferred stock, par value $0.01 per share ("Preferred Stock"). At March 31, 2026 and 2025, no shares of Preferred Stock were issued or outstanding. The Board of Directors of the Company has the authority to specify the terms of any Preferred Stock at the time of issuance.

The following demonstrates the change in the number of shares of common stock outstanding during fiscal years ended March 31, 2024, 2025 and 2026, respectively:

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| | |
|:---|:---|
| Shares outstanding as of March 31, 2023 | 40901059 |
| Purchase of treasury stock | (1002415) |
| Shares issued towards equity-based compensation plans, net of equity awards surrendered for option price and taxes | 373292 |
| Shares outstanding as of March 31, 2024 | 40271936 |
| Purchase of treasury stock | (1568292) |
| Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes | 488417 |
| Shares outstanding as of March 31, 2025 | 39192061 |
| Purchase of treasury stock | (3457688) |
| Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes | 727838 |
| Shares outstanding as of March 31, 2026 | 36462211 |

---

*Treasury Stock*

In fiscal 2026, the Company purchased 3,457,688 shares for $373,523. The Company purchased 1,568,292 shares for $153,961 in fiscal 2025 and 1,002,415 shares for $95,690 in fiscal 2024. At March 31, 2026 and 2025, the Company held 21,089,229 and 17,647,529 shares as treasury stock, respectively.

*Treasury Stock Reissuance*

During fiscal 2026, fiscal 2025 and fiscal 2024, the Company also issued 15,988, 12,751 and 13,981 shares out of its treasury stock, respectively, valued at $62.55 per share, on a FIFO basis, to participants under the Company's Employee Stock Purchase Plan.

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*Accumulated Other Comprehensive Income ("AOCI")*

The components of AOCI, net of tax, are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Beginning<br>Balance** | **Before Reclassifications** | **Amount Reclassified from AOCI** | **Ending<br>Balance** |
| **March 31, 2026** | | | | |
| Pension funded status adjustment | $(10374) | $(372) | $8110 | $(2636) |
| Net unrealized gain (loss) on derivative instruments | (269) | (7079) | 2786 | (4562) |
| Foreign currency translation adjustment <sup>(1)</sup> | (236836) | 31770 |  | (205066) |
| Accumulated other comprehensive loss | $(247479) | $24319 | $10896 | $(212264) |
| **March 31, 2025** |  |  |  |  |
| Pension funded status adjustment | $(9798) | $132 | $(708) | $(10374) |
| Net unrealized gain (loss) on derivative instruments | 755 | (2339) | 1315 | (269) |
| Foreign currency translation adjustment <sup>(1)</sup> | (195808) | (41028) |  | (236836) |
| Accumulated other comprehensive loss | $(204851) | $(43235) | $607 | $(247479) |
| **March 31, 2024** |  |  |  |  |
| Pension funded status adjustment | $(4423) | $(5672) | $297 | $(9798) |
| Net unrealized gain (loss) on derivative instruments | 1411 | 6283 | (6939) | 755 |
| Foreign currency translation adjustment <sup>(1)</sup> | (180462) | (15346) |  | (195808) |
| Accumulated other comprehensive loss | $(183474) | $(14735) | $(6642) | $(204851) |

---

(1) Foreign currency translation adjustment for the fiscal year ended March 31, 2026, March 31, 2025, March 31, 2024 and includes a $28,345 loss (net of taxes of $8,643), $10,600 gain (net of taxes of $3,235) and $2,615 loss (net of taxes $797), respectively, related to the Company's cross-currency fixed interest rate swap contracts.

The following table presents reclassifications from AOCI during the twelve months ended March 31, 2026:

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| | | |
|:---|:---|:---|
| **Components of AOCI** | **Amounts Reclassified from AOCI** | **Location of (Gain) Loss Recognized on Income Statement** |
| **Derivatives in Cash Flow Hedging Relationships:** | | |
| Net unrealized loss on derivative instruments | $3637 | Cost of goods sold |
| Tax benefit | (851) |  |
| Net unrealized loss on derivative instruments, net of tax | $2786 |  |
| **Derivatives in net investment hedging relationships:** |  |  |
| Net unrealized gain on derivative instruments | $(7029) | Interest expense |
| Tax expense | 1645 |  |
| Net unrealized gain on derivative instruments, net of tax | $(5384) |  |
| **Defined benefit pension costs:** |  |  |
| Prior service costs, deferrals, and settlements | $10011 | Net periodic benefit cost, included in other (income) expense, net - See Note 16 |
| Tax benefit | (1901) |  |
| Net periodic benefit cost, net of tax | $8110 |  |

---

The following table presents reclassifications from AOCI during the twelve months ended March 31, 2025:

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| | | |
|:---|:---|:---|
| **Components of AOCI** | **Amounts Reclassified from AOCI** | **Location of (Gain) Loss Recognized on Income Statement** |
| **Derivatives in Cash Flow Hedging Relationships:** | | |
| Net unrealized loss on derivative instruments | $1717 | Cost of goods sold |
| Tax benefit | (402) |  |
| Net unrealized loss on derivative instruments, net of tax | $1315 |  |
| **Derivatives in net investment hedging relationships:** |  |  |
| Net unrealized gain on derivative instruments | $(4413) | Interest expense |
| Tax expense | 1032 |  |
| Net unrealized gain on derivative instruments, net of tax | $(3381) |  |
| **Defined benefit pension costs:** |  |  |
| Prior service costs and deferrals | $(1027) | Net periodic benefit cost, included in other (income) expense, net - See Note 16 |
| Tax benefit | 319 |  |
| Net periodic benefit cost, net of tax | $(708) |  |

---

The following table presents reclassifications from AOCI during the twelve months ended March 31, 2024:

---

| | | |
|:---|:---|:---|
| **Components of AOCI** | **Amounts Reclassified from AOCI** | **Location of (Gain) Loss Recognized on Income Statement** |
| **Derivatives in Cash Flow Hedging Relationships:** | | |
| Net unrealized gain on derivative instruments | $(9057) | Cost of goods sold |
| Tax benefit | 2118 |  |
| Net unrealized gain on derivative instruments, net of tax | $(6939) |  |
| **Derivatives in net investment hedging relationships:** |  |  |
| Net unrealized gain on derivative instruments | $(713) | Interest expense |
| Tax expense | 167 |  |
| Net unrealized gain on derivative instruments, net of tax | $(546) |  |
| **Defined benefit pension costs:** |  |  |
| Prior service costs and deferrals | $326 | Net periodic benefit cost, included in other (income) expense, net - See Note 16 |
| Tax benefit | (29) |  |
| Net periodic benefit cost, net of tax | $297 |  |

---

**18. Stock-Based Compensation** 

As of March 31, 2026, the Company maintains the 2023 Equity Incentive Plan ("2023 EIP"). The 2023 EIP reserved 3,614,500 shares of common stock for the grant of various classes of nonqualified stock options, restricted stock units, market condition-based on total shareholder return ("TSR") and performance condition-based share units ("PSU") and other forms of equity-based compensation. Shares subject to any awards that expire without being exercised or that are forfeited or settled in cash shall again be available for future grants of awards under the 2023 EIP. Shares subject to stock option or stock appreciation right awards, that have been retained by the Company in payment or satisfaction of the exercise price and any applicable tax withholding obligation of such awards, shall not be available for future grant under the 2023 EIP.

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As of March 31, 2026, 2,453,008 shares are available for future grants. The Company's equity incentive plans are intended to provide an incentive to employees and non-employee directors of the Company to remain in the service of the Company and to increase their interest in the success of the Company in order to promote the long-term interests of the Company. The plans seek to promote the highest level of performance by providing an economic interest in the long-term performance of the Company. The Company settles employee share-based compensation awards with newly issued shares.

***Stock Options***

During fiscal 2026, the Company granted to management and other key employees 201,989 non-qualified options that vest ratably over 3 years from the date of grant. Options expire 10 years from the date of grant.

The Company recognized stock-based compensation expense relating to stock options of $8,830, with a related tax benefit of $614 for fiscal 2026, $5,869 with a related tax benefit of $1,161 for fiscal 2025 and $7,022 with a related tax benefit of $730 for fiscal 2024.

For purposes of determining the fair value of stock options granted, the Company used a Black-Scholes Model with the following assumptions:

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| | | | |
|:---|:---|:---|:---|
| | **2026** | **2025** | **2024** |
| Risk-free interest rate | 3.90% | 3.84% | 4.24% |
| Dividend yield | 1.10% | 1.02% | 0.95% |
| Expected life (years) | 6 | 6 | 6 |
| Volatility | 38.48% | 38.61% | 38.25% |

---

The following table summarizes the Company's stock option activity in the years indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of<br>Options** | **Weighted-<br>Average<br>Remaining<br>Contract<br>Term (Years)** | **Weighted-<br>Average<br>Exercise<br>Price** | **Aggregate<br>Intrinsic<br>Value** |
| Options outstanding as of March 31, 2023 | 1196311 | 7.3 | $78.83 | $12150 |
| Granted | 200314 |  | 101.04 |  |
| Exercised | (197350) |  | 71.81 | 6110 |
| Forfeited | (9166) |  | 78.68 | 158 |
| Expired |  |  |  |  |
| Options outstanding as of March 31, 2024 | 1190109 | 7.0 | $83.74 | $15043 |
| Granted | 266027 |  | 101.56 |  |
| Exercised | (139016) |  | 76.66 | 3950 |
| Forfeited | (29340) |  | 98.38 | 115 |
| Expired |  |  |  |  |
| Options outstanding as of March 31, 2025 | 1287780 | 6.8 | $87.85 | $10472 |
| Granted | 201989 |  | 102.11 |  |
| Exercised | (591396) |  | 82.55 | 27843 |
| Forfeited | (22033) |  | 92.56 | 572 |
| Expired |  |  |  |  |
| Options outstanding as of March 31, 2026 | 876340 | 7.2 | $94.60 | $69340 |
| Options exercisable as of March 31, 2026 | 460510 | 5.9 | $87.97 | $39490 |
| Options vested and expected to vest, as of March 31, 2026 | 856681 | 7.2 | $94.43 | $67926 |

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The following table summarizes information regarding stock options outstanding as of March 31, 2026:

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| | | | |
|:---|:---|:---|:---|
| **Range of Exercise Prices** | **Number of<br>Options** | **Weighted-<br>Average<br>Remaining<br>Contractual Life (Years)** | **Weighted-<br>Average<br>Exercise Price** |
| $57.60 - $60.00 | 72717 | 3.3 | $57.75 |
| $70.01 - $80.00 | 97206 | 5.4 | $74.52 |
| $80.01 - $90.00 | 5419 | 1.1 | $83.14 |
| $90.01 - $100.00 | 197925 | 7.8 | $94.33 |
| $100.01 - $109.69 | 503073 | 7.9 | $104.03 |
|  | 876340 | 7.2 | $94.60 |

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***Restricted Stock Units, Market - condition based Awards***

*Non-Employee Directors*

In fiscal 2026, the Company granted to non-employee directors 19,742 deferred restricted stock units ("DSU") at the fair value of $79.01 per unit at the date of grant. In fiscal 2025, such grants amounted to 19,214 DSU's at the fair value of $76.52 per unit at the date of grant and in fiscal 2024, such grants amounted to 21,147 DSU's units at the fair value of $76.83 unit at the date of grant. The awards vest immediately upon the date of grant and are settled in shares of common stock six months after termination of service as a director.

The Company also granted to non-employee directors, during fiscal 2026, fiscal 2025 and fiscal 2024, 8,047, 9,972, and 8,386 restricted stock units, respectively, at fair values of $113.00, $98.62 and $94.34, respectively, under the deferred compensation plan for non-employee directors.

*Employees*

In fiscal 2026, the Company granted to management and other key employees 327,387 restricted stock units that vest ratably over four years from the date of grant, at the fair value of $95.60 per restricted stock unit.

In fiscal 2025, the Company granted to management and other key employees 361,222 restricted stock units that vest ratably over four years from the date of grant at the fair value of $94.63 per restricted stock unit.

In fiscal 2024, the Company granted to management and other key employees 269,751 restricted stock units that vest ratably over four years from the date of grant at a fair value of $94.31 per restricted stock unit.

A summary of the changes in restricted stock units, including DSU's, and TSRs awarded to employees and directors that were outstanding under the Company's equity compensation plans during fiscal 2026 is presented below:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Restricted Stock Units (RSU)** | **Restricted Stock Units (RSU)** | **Market condition-based Share Units (TSR)** | **Market condition-based Share Units (TSR)** |
| | **Number of<br>RSU** | **Weighted-<br>Average<br>Grant Date<br>Fair Value** | **Number of<br>TSR** | **Weighted-<br>Average<br>Grant Date<br>Fair Value** |
| Non-vested awards as of March 31, 2025 | 919707 | $80.42 | 1143 | $66.89 |
| Granted | 355176 | 94.60 |  |  |
| Stock dividend | 8162 | 82.46 | 9 | 66.89 |
| Performance factor |  |  |  |  |
| Vested | (263040) | 86.87 |  |  |
| Forfeitures | (78131) | 90.76 |  |  |
| Non-vested awards as of March 31, 2026 | 941874 | $82.88 | 1152 | $66.89 |

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The Company recognized stock-based compensation expense relating to restricted stock units of $28,764, with a related tax benefit of $4,380 for fiscal 2026, $21,867, with a related tax benefit of $3,520 for fiscal 2025 and $23,585, with a related tax benefit of $4,557 for fiscal 2024.

***All Award Plans***

As of March 31, 2026, unrecognized compensation expense associated with the non-vested equity awards outstanding was $64,150 and is expected to be recognized over a weighted-average period of 20 months.

**19. Earnings Per Share**

The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding and the calculations of net earnings per common share attributable to EnerSys stockholders.

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| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| Net earnings attributable to EnerSys stockholders | $293557 | $363735 | $269096 |
| Weighted-average number of common shares outstanding: |  |  |  |
| Basic | 37439727 | 39760829 | 40669392 |
| Dilutive effect of: |  |  |  |
| Common shares from exercise and lapse of equity awards, net of shares assumed reacquired | 704483 | 677750 | 702047 |
| Diluted weighted-average number of common shares outstanding | 38144210 | 40438579 | 41371439 |
| Basic earnings per common share attributable to EnerSys stockholders | $7.84 | $9.15 | $6.62 |
| Diluted earnings per common share attributable to EnerSys stockholders | $7.70 | $8.99 | $6.50 |
| Anti-dilutive equity awards not included in diluted weighted-average common shares | 420769 | 551411 | 356893 |

---

**20. Commitments, Contingencies and Litigation**

*Litigation and Other Legal Matters*

In the ordinary course of business, the Company and its subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings are generally based on alleged violations of environmental, anti-competition, employment, contract and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company and its subsidiaries. In the ordinary course of business, the Company and its subsidiaries are also subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. In connection with formal and informal inquiries by federal, state, local and foreign agencies, the Company and its subsidiaries receive numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of their activities.

*European Competition Investigations* 

Certain of the Company's European subsidiaries had received subpoenas and requests for documents and, in some cases, interviews from, and have had on-site inspections conducted by the competition authorities of Belgium, Germany and the Netherlands relating to conduct and anticompetitive practices of certain industrial battery participants. As of March 31, 2026 and March 31, 2025, the Company did not have a reserve balance related to these matters.

The precise scope, timing and time period at issue, as well as the final outcome of the investigations or customer claims, remain uncertain. Accordingly, the Company's estimate may change from time to time, and actual losses could vary.

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*Environmental Issues*

As a result of its operations, the Company is subject to various federal, state and local, as well as international environmental laws and regulations and is exposed to the costs and risks of registering, handling, processing, storing, transporting, and disposing of hazardous substances, especially lead and acid. The Company's operations are also subject to federal, state, local and international occupational safety and health regulations, including laws and regulations relating to exposure to lead in the workplace. The Company believes that it has adequate reserves to satisfy its environmental liabilities.

*Collective Bargaining*

At March 31, 2026, the Company had approximately 9,682 employees. Of these employees, approximately 31% were covered by collective bargaining agreements. Employees covered by collective bargaining agreements that expire in the next twelve months were approximately 6% of the total workforce. The average term of these agreements is 1 year, with the longest term being 4 years. The Company considers its employee relations to be good and did not experience any significant labor unrest or disruption of production during fiscal 2026.

*Lead, Foreign Currency Forward Contracts and Swaps*

To stabilize its lead costs and reduce volatility from currency movements, the Company enters into contracts with financial institutions. The vast majority of such contracts are for a period not extending beyond one year. The Company also entered into cross currency fixed interest rate swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between U.S. Dollars and Euros and these agreements mature on December 15, 2027. Please refer to Note 14 - Derivative Financial Instruments for more details.

*Other* 

The Company has various purchase and capital commitments incidental to the ordinary conduct of business. In the aggregate, such commitments are not at prices in excess of current market.

**21. Restructuring, Exit and Other Charges**

*Restructuring Programs*

The Company had committed to various restructuring plans aimed at improving operational efficiencies across its lines of business. All of these plans are complete. Restructuring and exit charges for the reportable segments are as follows:

During fiscal 2026, the Company announced and completed restructuring programs in all reportable segments to improve operational efficiencies. The charges related to Energy Systems severance payments amounted to $1,720 to approximately 127 employees. The charges related to Motive Power primarily related to severance payments amounted to $1,713 to approximately 148 employees.The charges related to Specialty severance payments amounted to $252 to approximately 15 employees.

During fiscal 2025, the Company announced and completed restructuring programs in all reportable segments to improve operational efficiencies. The charges related to Energy Systems severance payments amounted to $3,364 to approximately 160 employees. The charges related to Motive Power severance payments amounted to $1,492 to approximately 66 employees.The charges related to Specialty severance payments amounted to $397 to approximately 4 employees.

During fiscal 2024, the Company recorded charges related to our fiscal 2024 and fiscal 2023 programs in the Energy Systems and Motive Power segments to improve operational efficiencies. The charges related to severance payments and amounted to $4,468 to approximately 146 employees in the Energy Systems' segment and $2,713 to approximately 37 employees in the Motive Power segment.

On July 22, 2025, the Company announced a reduction in force plan (the "Plan") as part of the Company's strategic restructuring plan under its new leadership to better align resources with current business priorities and long-term objectives. The Plan is expected to reduce non-production global workforce by approximately 11%, or approximately 575 employees, and is focused primarily on corporate and management positions. During fiscal 2026, the Company recorded $21,452 in costs relating to the Plan consisting of severance payments, notice period payments in applicable jurisdictions, employee benefits and related costs. The Plan was substantially completed as of December 28, 2025.

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Restructuring and exit charges for fiscal 2026, 2025 and 2024 by reportable segments are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fiscal year ended March 31, 2026** | **Fiscal year ended March 31, 2026** | **Fiscal year ended March 31, 2026** | **Fiscal year ended March 31, 2026** | **Fiscal year ended March 31, 2026** |
| | **Energy Systems** | **Motive Power** | **Specialty** | **Corporate Other** | **Total** |
| Restructuring charges | $9649 | $12665 | $2694 | $129 | $25137 |
| Exit charges | 13818 | 11265 | 717 |  | 25800 |
| Restructuring and other exit charges | $23467 | $23930 | $3411 | $129 | $50937 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fiscal year ended March 31, 2025** | **Fiscal year ended March 31, 2025** | **Fiscal year ended March 31, 2025** | **Fiscal year ended March 31, 2025** | **Fiscal year ended March 31, 2025** |
| | **Energy Systems** | **Motive Power** | **Specialty** | **Corporate Other** | **Total** |
| Restructuring charges | $5001 | $1575 | $398 | $— | $6974 |
| Exit charges | 993 | 4144 | 2317 |  | 7454 |
| Restructuring and other exit charges | $5994 | $5719 | $2715 | $— | $14428 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fiscal year ended March 31, 2024** | **Fiscal year ended March 31, 2024** | **Fiscal year ended March 31, 2024** | **Fiscal year ended March 31, 2024** | **Fiscal year ended March 31, 2024** |
| | **Energy Systems** | **Motive Power** | **Specialty** | **Corporate Other** | **Total** |
| Restructuring charges | $4526 | $3445 | $35 | $— | $8006 |
| Exit charges | 4312 | 8253 | 7532 |  | 20097 |
| Restructuring and other exit charges | $8838 | $11698 | $7567 | $— | $28103 |

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A roll-forward of the restructuring reserve is as follows:

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| | |
|:---|:---|
| Balance at March 31, 2023 | $445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued | 8006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs incurred | (6064) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency impact and other | 21 |
| Balance at March 31, 2024 | $2408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued | 6974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs incurred | (8292) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency impact and other | (11) |
| Balance at March 31, 2025 | $1079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued | 25137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs incurred | (20371) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency impact and other | 59 |
| Balance at March 31, 2026 | $5904 |

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*Exit Charges*

*Fiscal 2026 Programs*

On March 25, 2026, EnerSys announced a plan to close its facility in Tijuana, Mexico, which focused on manufacturing energy systems lead acid batteries . Management determined that the closure was appropriate as part of its efforts to optimize its cost structure, maximize near-term advanced manufacturing production tax benefits, and mitigate future risks associated with potential tariffs while reinforcing EnerSys' commitment to strengthening domestic industrial capacity and supply chain resilience. In connection with this restructuring plan, which is estimated to be substantially complete by December 2027, EnerSys plans to sell the land and buildings and possibly the plant and equipment to other parties. In addition, EnerSys estimates that there will be a reduction of approximately 474 employees upon completion. EnerSys expects to incur a pre-tax charge of approximately $37 million under this restructuring plan when completed, the majority of which is expected to be incurred by the second half of fiscal year 2027, of which $14 million is expected to be non-cash charges primarily from accelerated depreciation. Cash charges of approximately $23 million, include severance and employee retention costs, environmental related expenses and equipment decommissioning, along with contractual releases and legal expenses.

During fiscal 2026, the Company recorded a $10,969 in severance costs.

On March 25, 2026, EnerSys announced a plan to close its facility in Sao Paulo, Brazil. Management continually evaluates the Company's footprint and decided to exit this facility that operated under motive power and energy systems segments due to the challenging local economic environment. In connection with this closure, which is estimated to be substantially complete by the end of fiscal 2027, the Company estimates there will be a reduction of approximately 141 employees. EnerSys expects to incur a pre-tax charge of approximately $7,500 under this restructuring plan, of which includes cash charges of approximately $4,500, primarily related to severance and employee retention costs, and other cash and non-cash items.

During fiscal 2026, the Company recorded $2,984 in cash charges relating to severance and contract termination costs and $1,767 in non cash charges relating to ROU and fixed asset impairments.

On April 1, 2025, the Company's Board of Directors approved a plan to close its facility in Monterrey, Mexico, which focused on manufacturing flooded motive power batteries. Management determined that future demand for traditional motive power flooded cells will decrease as customers transition to maintenance free product solutions in lithium and Thin Plate Pure Lead (TPPL). Production of products being manufactured in Monterrey, Mexico will be moved to EnerSys' existing facility in Richmond, Kentucky. The Company expects to incur a pre-tax charge of approximately $13,700 under this restructuring plan when completed, the majority of which was recorded by the end of the 2026 fiscal year, of which $1,500 is expected to be a non-cash charge from fixed asset and inventory charges. Cash charges of approximately $12,200, include severance and employee retention costs, environmental related expenses and equipment decommissioning, along with contractual releases and legal expenses.

During fiscal 2026, the Company recorded a cash charges totaling $5,182 primarily relating to severance costs and unusual manufacturing variances of $2,268.

*Fiscal 2024 Programs*

*Renewables* 

On November 8, 2023, the Company's Board of Directors approved a plan to stop production and operations of residential renewable energy products, which include the OutBack and Mojave brands. Management determined that residential renewable energy products no longer fit with the Company's core strategy and resources will be better allocated toward commercial energy solutions for enterprise customers. The plan was completed as the end of fiscal 2025.

During fiscal 2024, the Company recorded non-cash charges totaling $551 primarily related to fixed assets and cash charges of $689 related to severance costs. The Company also recorded a non-cash write offs relating to inventories of $17,075, which was reported in cost of goods sold, and impairment of indefinite-lived intangible asset of $6,020.

During fiscal 2025, the Company recorded non-cash charges totaling $333 related to fixed asset write offs and inventories of $275.

*Spokane* 

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On November 8, 2023, the Company committed to a plan to close its facility in Spokane, Washington, which primarily manufactures enclosure systems for telecommunications and related end markets. Management determined that existing manufacturing locations have the capacity to satisfy demand for these products and will execute more efficient distribution to customers. The plan was completed as of the end of fiscal 2025.

During fiscal 2024, the Company recorded cash charges of $1,343 primarily related to severance costs and non-cash charges totaling $2,066 related to lease right of use asset and fixed asset write offs.

During fiscal 2025, the Company recorded cash charges of $669 primarily related to manufacturing variances.

*Fiscal 2023 Programs*

*Sylmar*

In November 2022, the Company committed to a plan to close its facility in Sylmar, California, which manufactures specialty lithium batteries for aerospace and medical applications. Management determined to close the site upon the expiration of its lease on the property and to redirect production through consolidation into existing locations. The plan was completed as of the end of fiscal 2025.

During fiscal 2023, the Company recorded cash charges of $1,682 related primarily related to severance costs and non-cash charges totaling $417 primarily relating to contract assets.

During fiscal 2024, the Company recorded cash charges of $7,155 primarily related to severance costs, relocation expenses, and manufacturing variances and non-cash charges totaling $377. The Company also recorded a non-cash write off relating to inventories of $3,098, which was reported in cost of goods sold.

During fiscal 2025, the Company recorded cash charges of $931 primarily related to relocation costs.

*Ooltewah*

On June 29, 2022, the Company committed to a plan to close its facility in Ooltewah, Tennessee, which produced flooded motive power batteries for electric forklifts. Management determined that future demand for traditional motive power flooded cells will decrease as customers transition to maintenance free product solutions in lithium and TPPL. These actions resulted in the reduction of approximately 165 employees. The plan was completed as of the end of fiscal 2026.

During fiscal 2023, the Company recorded cash charges relating to severance and manufacturing variances of $2,735 and non-cash charges of $7,261 relating to fixed asset write-offs. The Company also recorded a non-cash write off relating to inventories of $1,613, which was reported in cost of goods sold.

During fiscal 2024, the Company recorded cash charges relating to site cleanup and decommissioning equipment of $4,399.

During fiscal 2025, the Company recorded $474 cash charges relating to site cleanup.

During fiscal 2026, the Company recorded a $1,142 gain of the sale of the building.

*Fiscal 2021 Programs*

*Hagen, Germany*

In fiscal 2021, the Company's Board of Directors approved a plan to substantially close all of its facility in Hagen, Germany, which produces flooded motive power batteries for forklifts. Management determined that future demand for the motive power batteries produced at this facility was not sufficient, given the conversion from flooded to maintenance free batteries by customers, the existing number of competitors in the market, as well as the near term decline in demand and increased

uncertainty from the pandemic. The Company plans to retain the facility with limited sales, service and administrative functions along with related personnel for the foreseeable future.

These actions resulted in the reduction of approximately 200 employees. This program is considered substantially complete as of the end of fiscal 2026.

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During fiscal 2021, the Company recorded cash charges relating to severance of $23,331 and non-cash charges of $7,946 primarily relating to fixed asset write-offs.

During fiscal 2022, the Company recorded cash charges primarily relating to severance of $8,069 and non-cash charges of $3,522 primarily relating to fixed asset write-offs. The Company also recorded a non-cash write off relating to inventories of $960, which was reported in cost of goods sold.

During fiscal 2023, the Company recorded cash charges of $2,207 relating to primarily to site cleanup and $562 of non-cash charges relating to accelerated depreciation of fixed assets.

During fiscal 2024, the Company recorded cash charges of $2,118 relating primarily to site cleanup and $526 of non-cash charges relating to accelerated depreciation of fixed assets.

During fiscal 2025, the Company recorded cash charges of $3,625 relating primarily to site cleanup and $598 of non-cash charges relating to accelerated depreciation of fixed assets.

During fiscal 2026, the Company recorded cash charges of $2,432 relating primarily to site cleanup and $32 of non-cash charges relating to accelerated depreciation of fixed assets. Additionally, the Company recorded a gain on assets held for sale previously impaired of $1,187.

**22. Warranty**

The Company provides for estimated product warranty expenses when products are sold, with related liabilities included within accrued expenses and other liabilities. As warranty estimates are forecasts that are based on the best available information, primarily historical claims experience, costs of claims may ultimately differ from amounts provided. An analysis of changes in the liability for product warranties is as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| Balance at beginning of year | $66421 | $60819 | $56630 |
| Current year provisions | 31810 | 32400 | 34110 |
| Costs incurred | (25495) | (27867) | (30160) |
| Foreign currency translation adjustment | 985 | 1069 | 239 |
| Balance at end of year | $73721 | $66421 | $60819 |

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 **23. Other (Income) Expense, Net** 

Other (income) expense, net consists of the following:

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| | | | |
|:---|:---|:---|:---|
| | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** | **Fiscal year ended March 31,** |
| | **2026** | **2025** | **2024** |
| Cost of Funds Asset Securitization | $9161 | $8672 | $8776 |
| Non-service components of pension expense | 11583 | (1259) | 1530 |
| Foreign exchange transaction (gains) losses | 7409 | (3324) | (6053) |
| Other | 400 | 2904 | 5178 |
| Total | $28553 | $6993 | $9431 |

---

**24. Business Segments**

The Company's chief operating decision maker, or CODM (the Company's Chief Executive Officer), reviews financial information for purposes of assessing business performance and allocating resources, by focusing on the lines of business on a global basis. The Company identifies the following as its four operating segments, based on lines of business:

------

<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Energy Systems -** uninterruptible power systems, or "UPS" applications for computer and computer-controlled systems, as well as telecommunications systems, switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage and energy pipelines. Energy Systems also includes highly integrated power solutions and services to broadband, telecom, data center, and industrial customers, as well as thermally managed cabinets and enclosures for electronic equipment and batteries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Motive Power -** power for electric industrial forklifts, AGVs other material handling equipment used in manufacturing, and warehousing operations, as well as equipment used in floor care, mining, rail and airport ground support applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Specialty -** premium starting, lighting and ignition applications in transportation, energy solutions for satellites, spacecraft, commercial aircraft, military, aircraft, submarines, ships, other tactical vehicles, defense applications and portable power solutions for soldiers in the field, as well as medical devices and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **New Ventures** - energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles.

The operating segments of Energy Systems, Motive Power, and Specialty also represent the Company's reportable segments under ASC 280, *Segment Reporting*. The results of New Ventures include start-up and operating expenses captured within the "Corporate and other" category of operating earnings.

Summarized financial information related to the Company's reportable segments at March 31, 2026, 2025 and 2024 and for each of the fiscal years then ended is shown below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** |
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Energy Systems** | **Motive Power** | **Specialty** | **Corporate and other** <sup>(3)</sup> | **Total** |
| **Net Sales by segment to unaffiliated customers** <sup>(1)</sup> | $1651186 | $1430931 | $665087 | $4172 | $3751376 |
| Less: |  |  |  |  |  |
| **Other segment items**<sup>(4)</sup> | $1505747 | $1231124 | $603062 |  | $3344105 |
| **Segment income** | $145439 | $199807 | $62025 |  | $407271 |
| Less: |  |  |  |  |  |
| Inventory adjustment relating to exit activities |  | 2268 |  |  | 2268 |
| Restructuring and other exit charges | 23467 | 23930 | 3411 |  | 50808 |
| (Gain) loss on assets held for sale |  | (1187) |  |  | (1187) |
| Impairment of intangible assets | 402 |  |  |  | 402 |
| Amortization of intangible assets | 23354 | 492 | 9596 |  | 33442 |
| Accelerated stock compensation | 5383 | 3532 | 1844 |  | 10759 |
| Other | 7468 | 3844 | 5729 |  | 17041 |
| **Total operating earnings** <sup>(2)</sup> | $85365 | $166928 | $41445 | $132722 | $426460 |
| **Depreciation** | $31207 | $27092 | $21717 | $100 | $80116 |
| **Capital Expenditures** | $33429 | $21046 | $23526 | $2073 | $80074 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Reportable segments do not record inter-segment revenues and accordingly there are none to report.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The Company does not allocate interest expense or other (income) expense, net, to the reportable segments.

&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRC 45X production tax credits. Also, included are start-up costs for exploration of a new lithium plant, and start-up operating expenses from the New Ventures operating segment.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Primarily includes cost of sales and operating expenses.

------

<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** |
| | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| | **Energy Systems** | **Motive Power** | **Specialty** | **Corporate and other** <sup>(3)</sup> | **Total** |
| **Net Sales by segment to unaffiliated customers** <sup>(1)</sup> | $1531169 | $1484117 | $593488 | $8805 | $3617579 |
| Less: |  |  |  |  |  |
| **Other segment items**<sup>(4)</sup> | $1427963 | $1251362 | $556534 |  | $3244664 |
| **Segment income** | $103206 | $232755 | $36954 |  | $372915 |
| Less: |  |  |  |  |  |
| Inventory adjustment relating to exit activities | 274 |  | 3335 |  | 3609 |
| Restructuring and other exit charges | 5994 | 5719 | 2715 |  | 14428 |
| Loss on assets held for sale |  | 4634 |  |  | 4634 |
| Amortization of intangible assets | 23620 | 685 | 7500 |  | 31805 |
| Other | 588 | 1585 | 6672 |  | 8845 |
| **Total operating earnings** <sup>(2)</sup> | $72730 | $220132 | $16732 | $155092 | $464686 |
| **Depreciation** | $26823 | $23010 | $19206 | $32 | $69071 |
| **Capital Expenditures** | $39167 | $22758 | $47016 | $12097 | $121038 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Reportable segments do not record inter-segment revenues and accordingly there are none to report.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The Company does not allocate interest expense or other (income) expense, net, to the reportable segments.

&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRC 45X production tax credits. Also, included are start-up costs for exploration of a new lithium plant, and start-up operating expenses from the New Ventures operating segment.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Primarily includes cost of sales and operating expenses.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** |
| | **March 31, 2024** | **March 31, 2024** | **March 31, 2024** | **March 31, 2024** | **March 31, 2024** |
| | **Energy Systems** | **Motive Power** | **Specialty** | **Corporate and other** <sup>(3)</sup> | **Total** |
| **Net Sales by segment to unaffiliated customers** <sup>(1)</sup> | $1590023 | $1456181 | $535667 | $— | $3581871 |
| Less: |  |  |  |  |  |
| **Other segment items**<sup>(4)</sup> | $1503068 | $1241531 | $504301 |  | $3248900 |
| **Segment income** | $86955 | $214650 | $31366 |  | $332971 |
| **Less:** |  |  |  |  |  |
| Inventory adjustment relating to exit activities | 17075 |  | 3098 |  | 20173 |
| Restructuring and other exit charges | 8840 | 11697 | 7566 |  | 28103 |
| Impairment of indefinite-lived intangibles | 13619 |  |  |  | 13619 |
| Legal proceedings charge, net | 3705 |  |  |  | 3705 |
| Amortization of intangible assets | 24503 | 683 | 2808 |  | 27994 |
| Other | 3740 | 1032 | 295 |  | 5067 |
| **Total operating earnings** <sup>(2)</sup> | $15473 | $201238 | $17599 | $117260 | $351570 |
| **Depreciation** | $24966 | $23007 | $15954 | $101 | $64028 |
| **Capital Expenditures** | $33626 | $17115 | $35596 | $100 | $86437 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Reportable segments do not record inter-segment revenues and accordingly there are none to report.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The Company does not allocate interest expense or other (income) expense, net, to the reportable segments.

&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRC 45X production tax credits. Also, included are start-up costs for exploration of a new lithium plant, and start-up operating expenses from the New Ventures operating segment.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Primarily includes cost of sales and operating expenses.

------

<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

The Company's property, plant and equipment by reportable segments as of March 31, 2026 and 2025 are as follows:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2025** |
| **Property, plant and equipment, net** | | |
| Energy Systems | $143634 | $198841 |
| Motive Power | 110750 | 144076 |
| Specialty | 324584 | 236861 |
| Other | 14034 | 12655 |
| Total | $593002 | $592433 |

---

The Company markets its products and services in over 100 countries. Sales are attributed to countries based on the location of sales order approval and acceptance. Sales to customers in the United States were 64.0%, 63.5% and 60.2% for fiscal years ended March 31, 2026, 2025 and 2024, respectively. Property, plant and equipment, net, attributable to the United States as of March 31, 2026 and 2025, were $415,263 and $422,263, respectively. No single country, outside the United States, accounted for more than 10% of the consolidated net sales or net property, plant and equipment and, therefore, was deemed not material for separate disclosure.

**25. Subsequent Events**

*Dividend*

On May 20, 2026, the Board of Directors approved a quarterly cash dividend of $0.2625 per share of common stock to be paid on July 2, 2026, to stockholders of record as of June 19, 2026.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

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| | |
|:---|:---|
| **ITEM 9.** | ***CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE*** |

---

None.

---

| | |
|:---|:---|
| **ITEM 9A.** | ***CONTROLS AND PROCEDURES*** |

---

(a) Disclosure Controls and Procedures. The Company's management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective.

(b) Internal Control Over Financial Reporting. There have not been any changes in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter of the fiscal year to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

The report called for by Item 308(a) of Regulation S-K is included herein as "Management Report on Internal Control Over Financial Reporting."

**Management Report on Internal Control over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. With the participation of the Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework and criteria established in *Internal Control—Integrated Framework*, issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework).

Based on this evaluation, our management has concluded that our internal control over financial reporting was effective as of March 31, 2026.

The attestation report called for by Item 308(b) of Registration S-K is included herein as "Report of Independent Registered Public Accounting Firm," which appears in Item 8 in this Annual Report on Form 10-K.

---

| | |
|:---|:---|
| /s/ Shawn M. O'Connell | /s/ Andrea J. Funk |
| **Shawn M. O'Connell<br>Chief Executive Officer** | **Andrea J. Funk<br>Chief Financial Officer** |

---

---

| | |
|:---|:---|
| **ITEM 9B.** | ***OTHER INFORMATION*** |

---

***10b5-1 Plans***

During the quarter ended March 31, 2026, none of our directors or officers (as defined in Section 16 of the Securities Exchange Act of 1934, as amended) adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" (each as defined in Item 408(a) and (c) of Regulation S-K).

---

| | |
|:---|:---|
| **ITEM 9C.** | ***DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS*** |

---

Not applicable.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**PART III**

---

| | |
|:---|:---|
| **ITEM 10.** | ***DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE*** |

---

The information required by this item is incorporated by reference from the sections entitled "Board of Directors," "Executive Officers," "Section 16(a) Beneficial Ownership Reporting Compliance," "Corporate Governance—Independence of Directors," "Corporate Governance—Process for Selection of Director Nominee Candidates," "Audit Committee Report," and "Certain Relationships and Related Transactions—Employment of Related Parties" of the Company's definitive proxy statement for its 2026 Annual Meeting of Stockholders (the "Proxy Statement") to be filed no later than 120 days after the fiscal year end.

We have adopted a Code of Business Conduct and Ethics that applies to all of our officers, directors and employees (including our Chief Executive Officer, Chief Financial Officer, and Corporate Controller) and have posted the Code on our website at <u>www.enersys.com</u>, and a copy is available in print to any stockholder who requires a copy. If we waive any provision of the Code applicable to any director, our Chief Executive Officer, Chief Financial Officer, and Corporate Controller, such waiver will be promptly disclosed to the Company's stockholders through the Company's website.

---

| | |
|:---|:---|
| **ITEM 11.** | ***EXECUTIVE COMPENSATION*** |

---

The information required by this item is incorporated by reference from the sections entitled "Corporate Governance—Compensation Committee" and "Executive Compensation" of the Proxy Statement") to be filed no later than 120 days after the fiscal year end.

---

| | |
|:---|:---|
| **ITEM 12.** | ***SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT RELATED STOCKHOLDER MATTERS*** |

---

The information required by this item is incorporated by reference from the section entitled "Security Ownership of Certain Beneficial Owners and Management" of the Proxy Statement to be filed no later than 120 days after the fiscal year end.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Equity Compensation Plan Information** | **Equity Compensation Plan Information** | **Equity Compensation Plan Information** | **Equity Compensation Plan Information** | **Equity Compensation Plan Information** |
| **Plan Category** | **Number of<br>securities to be<br>issued upon<br>exercise of<br>outstanding<br>options,<br>warrants<br>and rights<br>(a)** | | **Weighted-average<br>exercise price of<br>outstanding options,<br>warrants and rights<br>(b)** | | **Number of<br>securities<br>remaining available<br>for future issuance<br>under equity<br>compensation plans<br>(excluding<br>securities reflected<br>in column (a))<br>(c)** |
| Equity compensation plans approved by security holders | 1818630 | <sup>(1)</sup> | $94.43 | <sup>(2)</sup> | 2453008 |
| Equity compensation plans not approved by security holders |  |  |  |  |  |
| Total | 1818630 |  | $94.43 |  | 2453008 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Assumes a 200% payout on market and performance condition-based awards.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Awards of restricted stock units, market and performance condition-based awards and deferred stock units held in both the EnerSys Voluntary Deferred Compensation Plan for Non-Employee Directors and the EnerSys Voluntary Deferred Compensation Plan for Executives were not included in calculating the weighted-average exercise price as they will be settled in shares of common stock for no consideration.

---

| | |
|:---|:---|
| **ITEM 13.** | ***CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE*** |

---

The information required by this item is incorporated by reference from the sections entitled "Corporate Governance," and "Certain Relationships and Related Transactions" of the Proxy Statement to be filed no later than 120 days after the fiscal year end.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

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| | |
|:---|:---|
| **ITEM 14.** | ***PRINCIPAL ACCOUNTING FEES AND SERVICES*** |

---

The information required by this item is incorporated by reference from the section entitled "Audit Committee Report" of the Proxy Statement to be filed no later than 120 days after the fiscal year end.

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**PART IV**

---

| | |
|:---|:---|
| **ITEM 15.** | ***EXHIBITS, FINANCIAL STATEMENT SCHEDULES*** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following documents are filed as part of this Report:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consolidated Financial Statements

See Index to Consolidated Financial Statements.

All other schedules are omitted because they are not applicable or the required information is contained in the consolidated financial statements or notes thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The following documents are filed herewith as exhibits:

---

| | |
|:---|:---|
| **Exhibit Number** | **Description of Exhibit** |
| 3.1 | <u>[Fifth Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.2 to Amendment No. 3 to EnerSys' Registration Statement on Form S-1 (File No. 001-32253) filed on February 6, 2013).](https://www.sec.gov/Archives/edgar/data/1289308/000119312513041060/d447395dex32.htm)</u> |
| 3.2 | <u>[Fifth Amended and Restated Bylaws (incorporated by reference to Exhibits 3.2 to EnerSys' Quarterly Report on Form 10-Q for the quarter ended December 29, 2024 (File No. 001-32253) filed on February 5, 2025).](https://www.sec.gov/Archives/edgar/data/1289308/000128930825000005/fifthamendedandrestatedbyl.htm)</u> |
| 4.1 | <u>[Indenture, dated as of April 23, 2015, among EnerSys, the Guarantors party thereto and MUFG Union Bank, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to EnerSys' Current Report on Form 8-K (File No. 00-32253) filed on April 23, 2015).](https://www.sec.gov/Archives/edgar/data/1289308/000128930815000024/ex_41xindenturex042315.htm)</u> |
| 4.2 | <u>[Fourth Supplemental Indenture, dated as of December 11, 2019, among EnerSys, the Guarantors party thereto and MUFG Union Bank, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to EnerSys' Current Report on Form 8-K (File No. 00-32253) filed on December 11, 2019).](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001289308/000119312519309264/d809829d8k.htm)</u> |
| 4.3 | <u>[Form of 4.375% Senior Note due 2027 (incorporated by reference to Exhibit 4.2 to EnerSys' Current Report on Form 8-K (File No. 00-32253) filed on December 11, 2019).](https://www.sec.gov/Archives/edgar/data/1289308/000119312519311553/d841258dex41.htm)</u> |
| 4.4 | <u>[Fifth Supplemental Indenture, dated as of January 11, 2024, among EnerSys, the Guarantors party thereto and U.S. Bank Trust Company, National Association, as successor in interest to U.S. Bank National Association, as successor in interest to MUFG Union Bank, N.A., as Trustee.](https://www.sec.gov/ix?doc=/Archives/edgar/data/1289308/000119312524006626/d675978d8k.htm)</u> <u>[(incorporated by reference to Exhibit 4.2 to EnerSys' Current Report on Form 8-K (File No. 00-32253) filed on January 11, 2024).](https://www.sec.gov/Archives/edgar/data/1289308/000119312524006626/d675978dex42.htm)</u> |
| 4.5 | <u>[Form of 6.625% Senior Notes due 2032 (incorporated by reference to Exhibit 4.3 to EnerSys' Current Report on Form 8-K (File No. 00-32253) filed on January 11, 2024).](https://www.sec.gov/Archives/edgar/data/1289308/000119312524006626/d675978dex42.htm)</u>  |
| 4.6 | <u>[Description of Capital Stock (filed herewith).](exhibit46_capitalxstockxfy.htm)</u> |
| 10.1 | <u>[Credit Agreement, dated as of August 4, 2017, among EnerSys, certain other borrowers and guarantors identified therein, Bank of America, N.A., as administrative agent, swing line lender and Letters of Credit issuer, and other lenders party thereto (incorporated herein by reference to Exhibit 10.4 of EnerSys' Quarterly Report on Form 10-Q for the quarter ended July 2, 2017 (File No. 001-32253) filed with the SEC on August 9, 2017).](https://www.sec.gov/Archives/edgar/data/1289308/000128930817000045/conformedcreditagreement_e.htm)</u> |
| 10.2 | <u>[Stock Subscription Agreement, dated March 22, 2002, among EnerSys Holdings Inc., Morgan Stanley Dean Witter Capital Partners IV, L.P., Morgan Stanley Dean Witter Capital Investors IV, L.P., MSDW IV 892 Investors, L.P., Morgan Stanley Global Emerging Markets Private Investment Fund, L.P. and Morgan Stanley Global Emerging Markets Private Investors, L.P. (incorporated by reference to Exhibit 10.27 to Amendment No. 3 to EnerSys' Registration Statement on Form S-1 (File No. 333-115553) filed on July 13, 2004).](https://www.sec.gov/Archives/edgar/data/1289308/000104746904023116/a2139890zex-10_27.htm)</u> |
| 10.3 | <u>[EnerSys 2013 Management Incentive Plan (incorporated by reference to Appendix A to EnerSys' Definitive Proxy Statement on Schedule 14A (File No. 001-32253) filed on June 27, 2013).](https://www.sec.gov/Archives/edgar/data/1289308/000119312513274827/d507111ddef14a.htm)</u> |

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

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| | |
|:---|:---|
| **Exhibit Number** | **Description of Exhibit** |
| 10.4 | <u>[Second Amended and Restated EnerSys 2010 Equity Incentive Plan (incorporated by reference to Appendix A to EnerSys' Definitive Proxy Statement on Schedule 14A (File No. 001-32253) filed on June 23, 2016).](https://www.sec.gov/Archives/edgar/data/1289308/000119312516630148/d144227ddef14a.htm)</u> |
| 10.5 | <u>[EnerSys Voluntary Deferred Compensation Plan for Executives as amended August 5, 2010, and May 26, 2011 (incorporated by reference to Exhibit 10.23 to EnerSys' Annual Report on Form 10-K (File No. 001-32253) filed on May 31, 2011).](https://www.sec.gov/Archives/edgar/data/1289308/000119312511154707/dex1023.htm)</u> |
| 10.6 | <u>[EnerSys 2018 Employee Stock Purchase Plan (incorporated by reference to Appendix A to EnerSys' Definitive Proxy Statement on Schedule 14A (File No. 001-32253) filed on June 21, 2018).](https://www.sec.gov/Archives/edgar/data/1289308/000119312518199547/d532586ddef14a.htm)</u> |
| 10.7 | <u>[Form of Deferred Stock Unit Agreement – Non-Employee Directors – 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.35 to EnerSys' Annual Report on Form 10-K (File No. 001-32253) filed on May 31, 2011).](https://www.sec.gov/Archives/edgar/data/1289308/000119312511154707/dex1035.htm)</u> |
| 10.8 | <u>[Form of Severance Agreement, (incorporated by reference to Exhibit 10.37 to EnerSys' Annual Report on Form 10-K (File No. 001-32253) filed on May 28, 2013).](https://www.sec.gov/Archives/edgar/data/1289308/000119312513237411/d485118dex1037.htm)</u> |
| 10.9 | <u>[Form of Stock Option Agreement - Employees - 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.32 to EnerSys' Annual Report on Form 10-K for the year ended March 31, 2014 (File No. 001-32253) filed on May 28, 2014).](https://www.sec.gov/Archives/edgar/data/1289308/000128930814000019/exhibit1032_4qxfy14.htm)</u> |
| 10.10 | <u>[Form of Indemnification Agreement - Directors and Officers (incorporated by reference to Exhibit 10.37 to EnerSys' Annual Report on Form 10-K for the year ended March 31, 2016 (File No. 001-32253) filed on May 28, 2014).](https://www.sec.gov/Archives/edgar/data/1289308/000128930817000019/exhibit1026_x4qxfy17.htm)</u> |
| 10.11 | <u>[Form of Indemnification Agreement - Directors and Officers (incorporated by reference to Exhibit 10.26 to EnerSys' Annual Report on Form 10-K for the year ended March 31, 2017 (File No. 001-32253) filed on May 30, 2017).](https://www.sec.gov/Archives/edgar/data/1289308/000128930817000019/exhibit1026_x4qxfy17.htm)</u> |
| 10.12 | <u>[Form of Stock Option Agreement - Employees - 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.42 to EnerSys' Annual Report on Form 10-K for the year ended March 31, 2015 (File No. 001-32253) filed on May 27, 2015).](https://www.sec.gov/Archives/edgar/data/1289308/000128930817000019/exhibit1041_4qfy17.htm)</u> |
| 10.13 | <u>[Form of Stock Option Agreement - Employees - 2010 Equity Incentive Plan (incorporated by reference to Exhibit 10.46 to EnerSys' Annual Report on Form 10-K for the year ended March 31, 2016 (File No. 001-32253) filed on May 31, 2016).](https://www.sec.gov/Archives/edgar/data/1289308/000128930816000060/exhibit1046_4qxfy16.htm)</u> |
| 10.14 | <u>[Form of letter agreement, dated June 7, 2017, between EnerSys and David M. Shaffer (incorporated herein by reference to Exhibit 10.1 of EnerSys' Current Report on Form 8-K (File No. 001-32253) filed with the SEC on June 12, 2017).](https://www.sec.gov/Archives/edgar/data/1289308/000128930817000025/shafferseveranceagreement.htm)</u> |
| 10.15 | <u>[Employment Offer Letter, dated October 20, 2014, of EnerSys Delaware Inc. to David M. Shaffer (incorporated by reference to Exhibit 10.5 to EnerSys' Quarterly Report on Form 10-Q for the period ended September 28, 2014 (File No. 001-32253) filed on November 5, 2014).](https://www.sec.gov/Archives/edgar/data/1289308/000128930814000054/exhibit_105xdaveshafferx2q.htm)</u> |
| 10.16 | <u>[Form of letter agreement, dated June 7, 2017, between EnerSys and an executive officer (incorporated herein by reference to Exhibit 10.1 of EnerSys' Current Report on Form 8-K (File No. 001-32253) filed with the SEC on June 12, 2017).](https://www.sec.gov/Archives/edgar/data/1289308/000128930817000025/sechristschmidtleinseveran.htm)</u> |
| 10.17 | <u>[Form of Deferred Stock Unit Agreement - Non-Employee Directors - 2017 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.5 of EnerSys' Quarterly Report on Form 10-Q for the quarter ended July 2, 2017 (File No. 001-32253) filed with the SEC on August 9, 2017).](https://www.sec.gov/Archives/edgar/data/1289308/000128930817000045/neddsugrantagreement-exhib.htm)</u> |
| 10.18 | <u>[Second Amendment to Credit Agreement, dated as of July 15, 2021, among EnerSys, certain of its subsidiaries party thereto, Bank of America, N.A., as administrative agent, swing line lender and l/c issuer, and the other lenders party thereto (incorporated by reference to Exhibit 10.1 of EnerSys' Current Report on Form 8-K (File No. 001-32253) filed with the SEC on July 15, 2021).](https://www.sec.gov/Archives/edgar/data/1289308/000128930821000035/enersys2021refisecondamend.htm)</u> |

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

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| | |
|:---|:---|
| **Exhibit Number** | **Description of Exhibit** |
| 10.19 | <u>[Third Amendment to Credit Agreement, dated as of September 8, 2022, among the Company, certain of its subsidiaries party thereto, Bank of America, N.A., as administrative agent, and the other lenders party thereto (incorporation by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-32253) filed on September 8, 2022)](https://www.sec.gov/Archives/edgar/data/1289308/000128930822000065/exhibit101-enersysxthirdam.htm)</u> |
| 10.20 | <u>[Fourth Amendment to Credit Agreement, dated as of March 22, 2023, among the Company, certain of its subsidiaries party thereto, Bank of America, N.A., as administrative agent, and the other lenders party thereto (file No. 001-32253) filed with the SEC on May 24, 2023.](https://www.sec.gov/Archives/edgar/data/1289308/000128930823000023/enersys-2022refixfourthame.htm)</u>  |
| 10.21 | <u>[Form of Severance Letter Agreement, dated April 1, 2019, between EnerSys and Shawn M. O'Connell (incorporated by reference to Exhibit 10.28 of EnerSys' Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (File No. 001-32253) filed with the SEC on June 1, 2020).](https://www.sec.gov/Archives/edgar/data/1289308/000128930820000029/exhibit10284qfy20.htm)</u> |
| 10.22 | <u>[Form of Severance Letter Agreement, dated April 1, 2021, between EnerSys and Andrea J. Funk (incorporated by reference to Exhibit 10.1 of EnerSys' Current Report on Form 8-K (File No. 001-32253) filed with the SEC on April 1, 2022).](https://www.sec.gov/Archives/edgar/data/1289308/000128930822000022/ex101_formofseveranceagree.htm)</u> |
| 10.23 | <u>[Amended and Restated 2017 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.32 of EnerSys' Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (File No. 001-32253) filed on May 26, 2021)](https://www.sec.gov/Archives/edgar/data/1289308/000128930821000027/amendedandrestated2017ener.htm)</u>. |
| 10.24 | <u>[Form of Deferred Stock Unit Agreement – Non-Employee Directors – Amended and Restated 2017 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.32 of EnerSys' Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (File No. 001-32253) filed on May 26, 2021)](https://www.sec.gov/Archives/edgar/data/1289308/000128930821000027/neddsugrantagreementtempla.htm)</u>. |
| 10.25 | <u>[Form of Stock Option Agreement – Employees – Amended and Restated 2017 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.32 of EnerSys' Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (File No. 001-32253) filed on May 26, 2021)](https://www.sec.gov/Archives/edgar/data/1289308/000128930821000027/employeestockoptionagmt_10.htm)</u>. |
| 10.26 | <u>[Form of Restricted Stock Unit Agreement - Employees – Amended and Restated 2017 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.32 of EnerSys' Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (File No. 001-32253) filed on May 26, 2021)](https://www.sec.gov/Archives/edgar/data/1289308/000128930821000027/awardagreementforemployees.htm)</u>. |
| 10.27 | <u>[Voluntary Deferred Compensation Plan For Non-Employee Directors (incorporated herein by reference to Exhibit 10.1 of EnerSys' Form 10-Q for the quarter ended July 2, 2023 (File Number 001-32253) filed on August 9, 2023).](https://www.sec.gov/Archives/edgar/data/0001289308/000128930823000038/deferredcompensationplanfo.htm)</u> |
| 10.28 | <u>[EnerSys Voluntary Deferred Compensation Plan For Executives (incorporated herein by reference to Exhibit 10.2 of EnerSys' Form 10-Q for the quarter ended July 2, 2023 (File Number 001-32253) filed on August 9, 2023).](https://www.sec.gov/Archives/edgar/data/0001289308/000128930823000038/deferredcompplanforexecuti.htm)</u> |
| 10.29 | <u>[Award Agreement for Employees - Restricted Stock Units under the 2023 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.3 of EnerSys' Form 10-Q for the quarter ended July 2, 2023 (File Number 001-32253) filed on August 9, 2023).](https://www.sec.gov/Archives/edgar/data/0001289308/000128930823000038/awardagreementforemployees.htm)</u> |
| 10.30 | <u>[Employee Stock Option Agreement under the 2023 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.4 of EnerSys' Form 10-Q for the quarter ended July 2, 2023 (File Number 001-32253) filed on August 9, 2023).](https://www.sec.gov/Archives/edgar/data/0001289308/000128930823000038/employeestockoptionagreeme.htm)</u> |
| 10.31 | <u>[Award Agreement for Non-Employee Directors Deferred Stock Units (incorporated herein by reference to Exhibit 10.5 of EnerSys' Form 10-Q for the quarter ended July 2, 2023 (File Number 001-32253) filed on August 9, 2023).](https://www.sec.gov/Archives/edgar/data/0001289308/000128930823000038/awardagreementfornon-emplo.htm)</u> |
| 10.32 | <u>[EnerSys 2023 Equity Incentive Plan (incorporated by reference to Appendix A to EnerSys' proxy statement on Schedule 14A dated June 22, 2023 for the annual meeting of shareholders held on August 3, 2023).](https://www.sec.gov/ix?doc=/Archives/edgar/data/1289308/000119312523172588/d384377ddef14a.htm#toc384377_79)</u> |

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

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| | |
|:---|:---|
| **Exhibit Number** | **Description of Exhibit** |
| 10.33 | <u>[Amendment letter agreement, dated May 22, 2025, between EnerSys and Shawn M. O'Connell (incorporated by reference to Exhibit 10.2 of EnerSys' Current Report on Form 8K (File Number 001-32253) filed on May 23, 2025](https://www.sec.gov/Archives/edgar/data/1289308/000128930825000020/ex102-amendmentletteragree.htm)</u> |
| 10.34 | <u>[Retirement and Continued Vesting Agreement, dated May 23, 2025, between EnerSys and David M. Shaffer (incorporated by reference to Exhibit 10.3 of EnerSys' Current Report on Form 8K (File Number 001-32253) filed on May 23, 2025](https://www.sec.gov/Archives/edgar/data/1289308/000128930825000020/ex103-retirementandcontinu.htm)</u> |
| 10.35 | <u>[Sixth Amendment to Credit Agreement, dated as of September 25, 2025, among EnerSys, certain of its subsidiaries party thereto, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and other lenders party thereto (incorporated by reference to Exhibit 10.1 on EnerSys' Current Report on Form 8K (File Number 001-32253) filed on September 25, 2025](https://www.sec.gov/Archives/edgar/data/1289308/000119312525218005/d948910dex101.htm)</u> |
| 10.36 | <u>[Receivables Agreement Amendment, Dated December 15, 2025, by and among EnerSys, Wells Fargo Bank, National Association, EnerSys Finance, LLC and certain other persons from time to time party thereto as purchasers (incorporated by reference to Exhibit 10.1 of EnerSys' Current Report on Form 8K (File Number 001-32253) filed on December 15, 2025](https://www.sec.gov/Archives/edgar/data/1289308/000128930825000046/exhibit101-amendmentreceiv.htm)</u> |
| 19.1 | <u>[Policy on Insider Trading (](exhibit191policyoninsidert.htm)[filed herewith](exhibit191policyoninsidert.htm)[)](exhibit191policyoninsidert.htm)</u> |
| 21.1 | <u>[Subsidiaries of the Registrant (filed herewith).](exhibit211_4qxfy26.htm)</u> |
| 23.1 | <u>[Consent of Ernst & Young LLP (filed herewith).](exhibit231_4qxfy26.htm)</u> |
| 31.1 | <u>[Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) Under the Securities Exchange Act of 1934 (filed herewith).](exhibit311_4qxfy26.htm)</u> |
| 31.2 | <u>[Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) Under the Securities Exchange Act of 1934 (filed herewith).](exhibit312_4qxfy26.htm)</u> |
| 32.1 | <u>[Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).](exhibit321_4qxfy26.htm)</u> |
| 97.1 | <u>[Clawback Policy (incorporated herein by reference to Exhibit 97.1 of EnerSys' Annual Report on Form 10-K for the fiscal year ended March 31, 2024 (File No. 001-32253) filed on May 22, 2024)](https://www.sec.gov/Archives/edgar/data/1289308/000128930824000018/exhibit971clawbackpolicy.htm)</u>  |
| 101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | XBRL Taxonomy Extension Definition Document |
| 101.LAB | XBRL Taxonomy Extension Label Document |
| 101.PRE | XBRL Taxonomy Extension Presentation Document |

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<u>[**Table of Contents**](#i8786429dbc604f208466f294ece24842_10)</u>

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
| | ENERSYS | ENERSYS |
| | By | /s/&nbsp;&nbsp;&nbsp;&nbsp;SHAWN M. O'CONNELL  |
| May 20, 2026 | | **Shawn M. O'Connell <br>Chief Executive Officer** |

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**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose name appears below hereby appoints Shawn M. O'Connell and Andrea J. Funk and each of them, as his true and lawful agent, with full power of substitution and resubstitution, for him and in his, place or stead, in any and all capacities, to execute any and all amendments to the within annual report, and to file the same, together with all exhibits thereto, with the Securities and Exchange Commission, granting unto each said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that each said attorney-in-fact and agent may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this annual report has been signed below by the following persons in the capacities and on the dates indicated:

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| | | |
|:---|:---|:---|
| **Name** | **Title** | **Date** |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;SHAWN M. O'CONNELL  | Chief Executive Officer | May 20, 2026 |
| **Shawn M. O'Connell** | Chief Executive Officer | May 20, 2026 |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;ANDREA J. FUNK | Chief Financial Officer<br>(Principal Accounting Officer) | May 20, 2026 |
| **Andrea J. Funk** | Chief Financial Officer<br>(Principal Accounting Officer) | May 20, 2026 |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;CAROLINE CHAN | Director | May 20, 2026 |
| **Caroline Chan** |  |  |
| /s/ STEVEN M. FLUDDER | Director | May 20, 2026 |
| **Steven M. Fludder** |  | May 20, 2026 |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;DAVID C. HABIGER | Director | May 20, 2026 |
| **David C. Habiger** | Director | May 20, 2026 |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;HOWARD I. HOFFEN | Director | May 20, 2026 |
| **Howard I. Hoffen** | Director | May 20, 2026 |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;LAUREN KNAUSENBERGER | Director | May 20, 2026 |
| **Lauren Knausenberger** | Director | May 20, 2026 |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;TAMARA MORYTKO | Director | May 20, 2026 |
| **Tamara Morytko** |  |  |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;PAUL J. TUFANO | Director | May 20, 2026 |
| **Paul J. Tufano** |  |  |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;RONALD P. VARGO | Director | May 20, 2026 |
| **Ronald P. Vargo** |  |  |
| /s/&nbsp;&nbsp;&nbsp;&nbsp;RUDOLPH WYNTER | Director | May 20, 2026 |
| **Rudolph Wynter** |  |  |

---

## Exhibit 4.6

**EXHIBIT 4.6**

**DESCRIPTION OF CAPITAL STOCK**

The following information describes our capital stock and provisions of our certificate of incorporation, as amended, and bylaws, as amended. This description is only a summary. You should refer to our certificate of incorporation and bylaws, which have been filed with the Securities and Exchange Commission.

**General Matters**

Our authorized capital stock consists of 135,000,000 shares of common stock, par value $0.01 per share, of which 36,517,773 shares were issued and outstanding as of May 15, 2026 and 1,000,000 shares of undesignated preferred stock, par value $0.01 per share, none of which was outstanding as of May 15, 2026.

The following summary describes the material provisions of our capital stock. This summary is not meant to be a complete description of our capital stock and we urge you to read our certificate of incorporation and our bylaws, which are incorporated by reference into this prospectus.

Certain provisions of our certificate of incorporation and bylaws summarized below may be deemed to have an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for shares of common stock.

**Common Stock**

We have one class of common stock. All holders of shares of common stock are entitled to the same rights and privileges. Holders of shares of common stock are entitled to one vote per share on the election or removal of our directors and on all other matters to be voted on by our stockholders.

Holders of shares of common stock are not entitled to any preemptive or preferential rights to subscribe for additional shares of any class of our capital stock. The holders of shares of common stock are entitled to receive dividends, when, as and if declared by our board of directors, out of funds legally available therefor. Holders of shares of common stock are entitled to share ratably, upon dissolution or liquidation, in the assets available for distribution to holders of shares of common stock after the payment of all prior claims.

**Preferred Stock**

Our authorized capital stock includes 1,000,000 shares of undesignated preferred stock, none of which is issued or outstanding. Our board of directors is authorized, without further action by our stockholders, to provide for the issuance of such preferred stock in one or more series and to fix the dividend rate, conversion privileges, voting rights, redemption rights, redemption price or prices, liquidation preferences and qualifications, limitations and restrictions thereof with respect to each series. Holders of shares of preferred stock may be entitled to receive a preference payment in the event of any liquidation, dissolution or winding-up of our company before any payment is made to the holders of shares of our common stock. In some circumstances, the issuance of shares of preferred stock may render more difficult or tend to discourage a merger, tender offer or proxy contest, the assumption of control by a holder of a large block of our securities or the removal of incumbent management. Upon the affirmative vote of our board of directors, without stockholder approval, we may issue shares of preferred stock with voting and conversion rights that could adversely affect the holders of shares of our common stock. We have no current intention to issue any shares of preferred stock.

**Section 203 of the Delaware General Corporation Law**

Section 203 of the Delaware General Corporation Law may have the effect of delaying, deferring or preventing a change of control. In general, Section 203 of the Delaware General Corporation Law prohibits a publicly held

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Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a period of three years following the date such stockholder became an "interested stockholder," unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prior to such date the board of directors approved either the "business combination" or the transaction that resulted in the stockholder becoming an "interested stockholder";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon consummation of the transaction that resulted in the stockholder becoming an "interested stockholder," the "interested stockholder" owned at least 85% of the voting stock outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding those shares owned by persons who are directors and also officers and certain other stockholders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on or subsequent to such date the "business combination" is approved by the board of directors and authorized at an annual or special meeting of stockholders by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the "interested stockholder."

A "business combination" includes certain mergers, stock or asset sales and other transactions resulting in a financial benefit to the "interested stockholder." An "interested stockholder" is a person who, together with affiliates and associates, owns (or in the preceding three years, did own) 15% or more of the outstanding voting stock. The statute could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us.

**Limitation of Liability and Indemnification of Directors and Officers**

We have included in our certificate of incorporation and bylaws provisions to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• eliminate the personal liability of our directors for monetary damages resulting from breaches of their fiduciary duty, but such provision does not eliminate liability for breaches of the duty of loyalty, acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, violations under Section 174 of the Delaware General Corporation Law or for any transaction from which the director derived an improper personal benefit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• indemnify our directors and officers to the fullest extent permitted by the Delaware General Corporation Law, including circumstances in which indemnification is otherwise discretionary.

Acting pursuant to the provisions of our certificate of incorporation and bylaws and the provisions of Section 145 of the Delaware General Corporation Law, we have entered into agreements with each of our officers and directors to indemnify them to the fullest extent permitted by such provisions and such law. We also are authorized to carry directors' and officers' insurance providing indemnification for our directors, officers and certain employees for some liabilities. We believe that these indemnification provisions and insurance are useful to attract and retain qualified directors and executive officers.

The limitation of liability and indemnification provisions in our certificate of incorporation and bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, investments in our common stock may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors or officers pursuant to the provisions described above, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

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**Other Provisions of our Certificate of Incorporation and Bylaws**

***Classified Board of Directors.***

***Special Meeting of Stockholders.***

Our certificate of incorporation provides that special meetings of our stockholders may be called only by our board of directors or our Chairman of the Board. This provision makes it more difficult for stockholders to take action opposed by our board of directors. This provision of our certificate of incorporation may not be amended or repealed by our stockholders except with the consent of the holders of at least two-thirds of our outstanding common stock.

***No Stockholder Action by Written Consent.***

Our certificate of incorporation provides that no action required or permitted to be taken at any annual or special meeting of our stockholders may be taken without a meeting, and the power of our stockholders to consent in writing, without a meeting, to the taking of any action is specifically denied. Such provision limits the ability of any stockholder to take action immediately and without prior notice to our board of directors. Such a limitation on a majority stockholder's ability to act might affect such person's or entity's decision to purchase our voting securities. This provision of our certificate of incorporation may not be amended or repealed by the stockholders except with the consent of the holders of at least two-thirds of our outstanding common stock.

***Advance Notice Requirements for Stockholder Proposals and Director Nominations.***

Our bylaws provide that stockholders seeking to bring business before an annual meeting of stockholders, or to nominate candidates for election as directors at an annual or special meeting of stockholders, must provide timely notice thereof in writing. To be timely, a stockholder's notice must be delivered to, or mailed and received at, our principal executive offices: in the case of an annual meeting that is called for a date that is within 30 days before or after the anniversary date of the immediately preceding annual meeting of stockholders, not less than 90 days nor more than 120 days prior to such anniversary date or, in the case of a special meeting called for the purpose of electing directors, not less than 90 days nor more than 120 days prior to such special meeting or not later than the close of business on the tenth day following the date on which public disclosure of the date of the meeting is made; and in the case of an annual meeting that is called for a date that is not within 30 days before or after the anniversary date of the immediately preceding annual meeting, not later than the close of business on the tenth day following the date on which public disclosure of the date of the meeting was made. Our bylaws also specify certain requirements for a stockholder's notice to be in proper written form. These provisions may preclude some stockholders from bringing matters before the stockholders at an annual or special meeting or from making nominations for directors at an annual or special meeting. You should refer to our bylaws for a complete description of these requirements. As set forth below, our bylaws may not be amended or repealed by our stockholders, except with the consent of holders of at least two-thirds of our outstanding common stock.

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***Majority Vote Requirement for Uncontested Director Elections.***

The Corporate Governance and Nominating Committee has established informal procedures under which a director nominee must tender his or her contingent resignation to the Nominating and Corporate Governance Committee in advance of an annual meeting of stockholders. If the Director Nominee fails to receive a majority number of votes for re-election in an uncontested election at an annual meeting, the Nominating and Corporate Governance Committee will make a recommendation to the board of directors whether to accept or reject the resignation or whether other action shall be taken. The board of directors will act on the Committee's recommendation and publicly disclose its decision and the rationale behind it within 90 days from the date of the certification of the election results. The resignation becomes effective only if the director fails to receive a majority number of votes for re-election in an uncontested election at an annual meeting and the board of directors accepts the resignation.

***Adjournment of Meetings of Stockholders.***

Our bylaws provide that when a meeting of our stockholders is convened, the presiding officer, if directed by our board of directors, may adjourn the meeting if no quorum is present for the transaction of business or if our board of directors determines that adjournment is necessary or appropriate to enable the stockholders to consider fully information that our board of directors determines has not been made sufficiently or timely available to stockholders or to otherwise effectively exercise their voting rights. This provision will, under certain circumstances, make more difficult or delay actions by the stockholders opposed by our board of directors. The effect of such provision could be to delay the timing of a stockholders' meeting, including in cases where stockholders have brought proposals before the stockholders that are in opposition to those brought by our board of directors and therefore may provide our board of directors with additional flexibility in responding to such stockholder proposals. As set forth below, our bylaws may not be amended or repealed by our stockholders, except with the consent of holders of at least two-thirds of our outstanding common stock.

***No Cumulative Voting.***

The Delaware General Corporation Law provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless our certificate of incorporation provides otherwise. Our certificate of incorporation does not provide for cumulative voting.

***Authorized but Unissued Capital Stock.***

Our certificate of incorporation authorizes our board of directors to issue one or more classes or series of preferred stock, and to determine, with respect to any such class or series of preferred stock, the voting powers (if any), designations, powers, preferences, rights and qualifications, limitations or restrictions of such preferred stock. We have no current intention to issue any shares of preferred stock.

The Delaware General Corporation Law does not require stockholder approval for any issuance of previously authorized shares of our capital stock. However, the listing requirements of the New York Stock Exchange, which will apply so long as our common stock is listed on the New York Stock Exchange, require, among other things, stockholder approval of certain related party transactions involving issuances of common stock, or securities convertible into or exercisable for common stock, if the issuance exceeds 1% of the number of shares of common stock outstanding or 1% of the voting power outstanding before the issuance. In addition, shareholder approval is required for certain issuances of common stock, or securities convertible into or exercisable for common stock, equal to or in excess of 20% of the voting power outstanding before such issuance or the number of shares of our common stock outstanding before the issuance of common stock or securities convertible into or exercisable for common stock. These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.

One of the effects of the existence of unissued and unreserved common stock or preferred stock may be to enable our board of directors to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of our company by means of a merger, tender offer, proxy contest

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or otherwise, and thereby protect the continuity of our management and possibly deprive the stockholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices.

***Amendment of the Bylaws.***

Our certificate of incorporation provides that our bylaws may not be amended or repealed by our stockholders except with the consent of holders of at least two-thirds of our outstanding common stock and grants our board of directors the authority to amend and repeal our bylaws without a stockholder vote in any manner not inconsistent with the laws of Delaware or our certificate of incorporation. This provision makes it more difficult for our stockholders to make changes to our bylaws that are opposed by our board of directors. This provision of our certificate of incorporation may not be amended or repealed by our stockholders except with the consent of holders of at least two-thirds of our outstanding common stock.

**Transfer Agent and Registrar**

Computershare is the transfer agent and registrar for our common stock.

## Exhibit 19.1

**ENERSYS<br>POLICY ON INSIDER TRADING**

**I.Rule applicable to all directors, officers, employees, agents, independent advisors and consultants of EnerSys and its subsidiaries (collectively, the "Company") and their respective Related Persons**<sup>1</sup>**.**

Under federal securities laws, no director, officer, employee, agent, independent advisor or consultant of the Company or any Related Person of the foregoing may engage in the trading<sup>2</sup> of the securities of the Company, as well as derivative securities that are not issued by the Company (collectively, "Company Securities"), while in possession of material<sup>3</sup> nonpublic<sup>4</sup> information about the Company. Such prohibition also includes electing to participate in, or terminate an interest in, or increase or decrease an existing election in, the Company's Employee Stock Purchase Plan (the "ESPP"). Directors, officers and employees of the Company and their respective Related Persons are also prohibited from trading the securities of any other company while in possession of material nonpublic information about the other company as well as derivative securities related to those securities that were acquired in their capacity as a director, officer or employee of the Company. The Company also prohibits any hedging transactions involving Company Securities, which can be accomplished through a variety of mechanisms, including the use of financial instruments such as prepaid variable forwards, equity swaps, collars and exchange funds. Additionally, the Company prohibits Company Securities from being held in a margin account as collateral for a margin loan, which permits a broker without the customer's consent to sell such Company Securities if the customer fails to meet a margin call or pledged (or hypothecated) as collateral for a loan, which would permit such Company Securities to be sold in foreclosure if the borrower defaults on the loan.

<sup>1</sup> "Related Person" means: a spouse; minor children; anyone else living in your household; any family member who does not live in your household, but whose transactions in Company Securities are directed by you or are subject to your influence or control, such as parents or adult children who consult with you before they trade in Company Securities; partnerships in which you are a general partner; trusts of which you are a trustee; and estates of which you are an executor.

<sup>2</sup> "Trading" or "trade" refers to the purchase or sale of, or offer to purchase or sell, or the gift of securities (i.e., common stock, preferred stock, options to acquire common stock or preferred stock, etc.) or to "tipping" and making recommendations to trade to other persons and also includes an election to participate in, or terminate an interest in, or increase or decrease an existing election in, the Company's ESPP.

<sup>3</sup> "Material" information is information which would reasonably be expected to (i) affect the price of the securities of the company to which it pertains, (ii) be important to an investor in deciding whether to buy, sell or hold a security of the company to which it pertains, or (iii) significantly alter the total mix of information available in the marketplace concerning the issuer of the security. Material information can include both favorable and unfavorable information.

<sup>4</sup> "Nonpublic" information is information that is not available to the general public. Unless information has been publicly disclosed (such as by means of a press release carried over a major news service, in a major news publication, in a public filing made with the Securities and Exchange Commission ("SEC"), or in materials sent to stockholders) and the market has had sufficient time to absorb and react to the information, it should be assumed that the information is nonpublic. As a general rule, trading should be avoided for one (1) full trading day following major news announcements. If circumstances (e.g., a complex transaction) indicate that a longer period for public dissemination may be necessary, trading should be avoided until such time period has passed.

Revision: Version 13.0&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective Date: ________, 2026

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**II.Additional rules applicable to all directors, officers and certain employees of EnerSys identified in Attachment A.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Blackout Periods**

All persons subject to these trading rules must check the "**Blackout Calendar**" on the EnerSys' Legal Department SharePoint site before trading to determine whether a blackout period is in effect. If you have any questions regarding whether a blackout period is in effect, consult the Company's Chief Legal Officer.

<u>Quarterly blackout periods</u>. These persons may not trade in Company Securities during the recurring quarterly blackout period, which begins on the fifteenth (15th) calendar day of the months of March, June, September and December, and ends at the close of business on the first (1<sup>st</sup>) full trading day after the public release of the Company's earnings for such quarter (with the day of release being counted as the first trading day only if such public release occurs before the market opens). The blackout dates are posted on the Blackout Calendar. This prohibition applies to any trading in Company Securities during a blackout period, including (i) open market purchases or sales or (ii) a sale of Company Securities following exercise of an employee stock option (including a sale by way of a cashless net settlement).

<u>Temporary blackout periods</u>. The Company may also institute temporary blackout periods in the event of material corporate developments. Notice of such temporary blackout periods will be posted on the EnerSys' Legal Department SharePoint site on the "Blackout Calendar".

<u>Written (10b5-1) Plan</u>. The limitations of the blackout periods shall not apply to trading in Company Securities pursuant to a "written plan for trading securities" provided that such plan meets the requirements of SEC Rule 10b5-1 of the Securities Exchange Act of 1934 and is approved in advance by EnerSys' Chief Legal Officer. For more information regarding requirements of a trading plan under SEC Rule 10b5-1, see the <u>Policy on Material Non-Public Information for Directors, Executive Officers and Affiliates</u>.

<u>Employee Stock Purchase Plan</u>. These persons may <u>not</u> make an election to participate in, or terminate an interest in, or increase or decrease an existing election in, the Company's ESPP during a blackout period or at any time during which such person has material nonpublic information regarding the Company. However, ongoing purchases of Company stock through the ESPP pursuant to a prior election are permitted notwithstanding the fact that such person has material nonpublic information regarding the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Selling short**. These persons may not at any time during their employment or service with the Company sell Company Securities they do not own.

&nbsp;&nbsp;&nbsp;&nbsp;2

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Options**. An employee may exercise an employee stock option at any time, but any stock acquired upon such exercise may not be sold (whether by means of a cashless net settlement or otherwise) if the employee has material nonpublic information regarding the Company. (Note: Please consult with the Chief Legal Officer if you have any questions regarding the selling of your stock and material nonpublic information which you believe you may have.) At any time, however, an employee may deliver EnerSys stock already owned to pay the option exercise price and taxes. These persons may not at any time buy or sell options on Company Securities except in accordance with a program approved by the Company Board of Directors or a trade cleared by the Chief Legal Officer. (Note: This restriction does not apply to the exercise of employee stock options which is discussed in the first sentence of this paragraph.) See <u>Cashless Net Settlement of Options (Off-Market Policy</u>) for additional information regarding the cashless net settlement of options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Other Companies**. No person subject to this Policy nor their respective Related Persons may trade in any security of any other company while in possession of material nonpublic information that was obtained in the course of their involvement with the Company. No such person or their respective Related Person who knows of any such material nonpublic information may communicate that information to, or tip, any other person, including family members and friends, or otherwise disclose such information. For additional restrictions related to a proposed acquisition, see section III below.

**III.Additional rules applicable to proposed acquisitions.**

Whenever EnerSys is actively considering a particular company for a material acquisition or for another material business relationship (such as a joint venture) or whenever another company is considering acquiring EnerSys, all EnerSys employees involved in, or aware of, due diligence or other planning for or attention to the acquisition or business relationship ("Knowledge Holding Employees") are, together with their respective Related Persons, prohibited from trading in any Company Securities and any securities of the other company. If you are a Knowledge Holding Employee, you should contact the Company's Chief Legal Officer regarding whether such acquisition or business relationship would be considered "material" and result in a trading blackout with respect to Company Securities or any other company. All persons with knowledge of any proposed or pending acquisition or other business relationship must check with the Chief Legal Officer before trading.

Except with respect to directors and executive officers (see section IV.3 below) and unless as otherwise announced by the Company's Chief Legal Officer, the trading window may be closed to all EnerSys employees and their respective Related Persons, and remain closed for one (1) full trading day following the public announcement of an acquisition or relationship. If EnerSys does not enter into an agreement relating to the acquisition or relationship, this prohibition will terminate when announced by the Company's Chief Legal Officer. Any such blackout periods following public announcement of an acquisition or business relationship will be communicated by the Company's Chief Legal Officer.

If you have any questions whether trading is prohibited pursuant to this Section III, consult the Company's Chief Legal Officer.

&nbsp;&nbsp;&nbsp;&nbsp;3

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**IV.Additional rules for the Company directors and executive officers (i.e., Section 16 reporting persons).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Pre-clearance and reporting**. Any trade of Company Securities by a director, executive officer or Related Person must be pre-cleared with the Chief Legal Officer and such trade must be reported promptly to the Chief Legal Officer once made, in each case pursuant to the <u>Policy on Material Non-Public Information for Directors, Executive Officers and Affiliates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Options and other stock plans**. The exercise of EnerSys stock options and/or the sale of stock acquired upon an exercise are subject to special rules and the Chief Legal Officer must be contacted before any such transaction is conducted. See Section VIII of the <u>Policy on Material Non-Public Information for Directors, Executive Officers and Affiliates</u> and <u>Cashless Net Settlement of Options (Off-Market Policy)</u> for an explanation of these rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Mergers and Acquisitions**. Complex rules exist for directors and executive officers that restrict their trading in Company Securities and the securities of the other company while EnerSys is actively considering material merger or acquisition transactions and ending with the completion of the transaction. Please refer to Sections V.1 and XII.2 of the <u>Policy on Material Non-Public Information for Directors, Executive Officers and Affiliates</u> for a brief explanation of these rules.

\*\*\*

<u>Note</u>: This policy applies to personal securities transactions by all directors, officers, employees, agents, independent advisors or consultants of the Company and their respective Related Persons, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)transactions for accounts in which the EnerSys director, officer or employee has an interest or an ability to influence transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)transactions by the director's, officer's or employee's spouse or any other member of their household unless (i) the household member's investment decisions are made independently of the EnerSys director, officer or employee and (ii) the household member has not received nonpublic information about the issuer of the security.

(c)It must be understood, however, that the director, officer and employee and/or the household member will bear the burden of demonstrating that the household member has not received nonpublic information. Furthermore, EnerSys directors and executive officers are subject to special rules with respect to any transactions covered in paragraphs (a) and (b) above and any such proposed transaction in Company Securities must be discussed in advance with EnerSys' Chief Legal Officer.

\*\*\*

This Policy was adopted by, and is the responsibility of, the Nominating and Corporate Governance Committee, and is administered by the Chief Legal Officer of EnerSys. If you have any questions regarding this Policy, please contact EnerSys' Chief Legal Officer. In all cases, the responsibility for determining whether an individual is in

&nbsp;&nbsp;&nbsp;&nbsp;4

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possession of material nonpublic information rests with that individual, and any action by the Company, EnerSys' Chief Legal Officer or any other employee or director pursuant to this Policy (or otherwise) does not in any way constitute legal advice or insulate an individual from liability under applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;5

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EnerSys Policy on Insider Trading

Attachment A

1.&nbsp;&nbsp;&nbsp;&nbsp;All members of the Board of Directors of EnerSys;

2.&nbsp;&nbsp;&nbsp;&nbsp;All direct reports to the Chief Executive Officer of EnerSys;

3.&nbsp;&nbsp;&nbsp;&nbsp;All directly or indirectly reporting to the Chief Financial Officer;

4.&nbsp;&nbsp;&nbsp;&nbsp;All Vice President and Director level personnel; and

5.&nbsp;&nbsp;&nbsp;&nbsp;All employees directly or indirectly reporting into the Legal and Human Resources departments.

&nbsp;&nbsp;&nbsp;&nbsp;6

## Exhibit 21.1

**Exhibit 21.1** 

**ENERSYS** 

**Subsidiaries** 

---

| | |
|:---|:---|
| EnerSys Argentina S.A. | Argentina |
| EnerSys Australia Pty Ltd. | Australia |
| ICS Industries Pty Ltd. | Australia |
| ICS Sheet Metal Pty Ltd. | Australia |
| EnerSys GmbH | Austria |
| EnerSys Belgium BV | Belgium |
| EnerSys Brasil Ltda. | Brazil |
| EnerSys Participacoes Ltda. | Brazil |
| Industrial Battery Holding Ltda. | Brazil |
| Alpha Innovations Industria e Comercio de Produtos Eletronicos Ltda. | Brazil |
| EnerSys Bulgaria EOOD | Bulgaria |
| EnerSys Canada Inc. | Canada |
| EnerSys Evolution Limited | Canada |
| Alpha Technologies Ltd. | Canada |
| EnerSys Cayman Euro L.P. | Cayman Islands |
| EnerSys Cayman Holdings L.P. | Cayman Islands |
| EnerSys Cayman Inc. | Cayman Islands |
| YCI, Inc. | Cayman Islands |
| EnerSystem Chile Ltda. | Chile |
| EnerSys (China) Huada Batteries Company Limited | China |
| EnerSys (Chongqing) Huada Batteries Company Limited | China |
| EnerSys (Yangzhou) Huada Batteries Co. Ltd. | China |
| EnerSys s.r.o. | Czech Republic |
| EnerSys Europe Oy | Finland |
| Bren-Tronics International Solutions SARL | France |
| EnerSys SARL | France |
| Hawker GmbH | Germany |
| EnerSys AE | Greece |
| EnerSys Asia Limited | Hong Kong |
| EnerSys Hungária Kft. | Hungary |
| EnerSys Battery Private Limited | India |
| EnerSys India Batteries Private Ltd. | India |
| Alpha Tech Energy Solutions India Private Limited | India |
| EnerSys S.r.l. | Italy |
| EnerSys Holdings (Luxembourg) Sarl | Luxembourg |
| EnerSys (Luxembourg) Finance Sarl | Luxembourg |
| EnerSys Malaysia Sdn Bhd | Malaysia |
| UTS Holdings Sdn Bhd | Malaysia |
| EnerSys de Mexico, S de R.L. de CV | Mexico |
| EnerSys de Mexico II, S de R.L. de CV | Mexico |
| EnerSys de Mexico Tijuana, S. De R.L.de C.V | Mexico |
| Yecoltd, S. de R.L. de CV | Mexico |

---

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---

| | |
|:---|:---|
| Batterias Hawker de Mexico S. de R.L. de C.V. | Mexico |
| Alpha Mexico Network Power S.A. de C.V. | Mexico |
| Alpha Innovations Mexico S. de R.L. de C.V. | Mexico |
| ENAS Industrial Batteries Morocco Sarl | Morocco |
| EnerSys AS | Norway |
| EnerSys sp. z o.o. | Poland |
| EnerSys JSC | Russia |
| Battery Power International Pte Ltd. | Singapore |
| EnerSys Reserve Power Pte. Ltd. | Singapore |
| EnerSys South East Asia Pte. Ltd. | Singapore |
| NaviSemi Energy Pte Ltd. | Singapore |
| EnerSys s.r.o. | Slovak Republic |
| Acumuladores Industriales EnerSys SA | Spain |
| EnerSys AB | Sweden |
| N Holding AB | Sweden |
| EH Batterien AG | Switzerland |
| EH Europe GmbH | Switzerland |
| EH Global Holdings GmbH | Switzerland |
| EH Swiss Holdings GmbH | Switzerland |
| EnerSys BV | The Netherlands |
| Enersys Akü Sanaya Dis Ticaret Limited Sirketi | Turkey |
| EnerSys LLC | Ukraine |
| EnerSys MEA General Trading LLC | United Arab Emirates |
| ABSL Power Solutions Ltd. | United Kingdom |
| EnerSys Holdings UK Ltd. | United Kingdom |
| EnerSys Ltd. | United Kingdom |
| Industrial Battery and Charger Services Limited | United Kingdom |
| ABSL Power Solutions Inc. | Delaware |
| Bren-Tronics Defense LLC | Delaware |
| EnerSys Advanced Systems Inc. | Delaware |
| EnerSys Capital Inc. | Delaware |
| EnerSys Delaware Inc. | Delaware |
| EnerSys Delaware LLC I | Delaware |
| EnerSys Delaware LLC II | Delaware |
| EnerSys Delaware LLC III | Delaware |
| EnerSys Delaware LLC IV | Delaware |
| EnerSys Delaware LLC V | Delaware |
| EnerSys Energy Products Inc. | Delaware |
| EnerSys European Holding Co. | Delaware |
| EnerSys Evolution LLC | Delaware |
| EnerSys Finance LLC | Delaware |
| EnerSys Gigafactory LLC | Delaware |
| EnerSys IP Holding LLC | Delaware |
| EnerSys Mexico Holdings LLC | Delaware |
| Esfinco, LLC | Delaware |
| Hawker Powersource, Inc. | Delaware |
| Hawker Power Systems, Inc. | Delaware |
| Rebel Systems LLC | Delaware |

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 Alpha Technologies Services, Inc. Nevada <br> New Pacifico Realty, Inc. Nevada

## Exhibit 23.1

**Exhibit 23.1** 

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement (Form S-8 No. 333-273833) pertaining to the EnerSys 2023 Equity Incentive Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement (Form S-8 No. 333-226712) pertaining to the EnerSys 2018 Employee Stock Purchase Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement (Form S-8 No. 333-219838) pertaining to the EnerSys 2017 Equity Incentive Plan, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement (Form S-8 No. 333-168717) pertaining to the EnerSys 2010 Equity Incentive Plan;

of our reports dated May 20, 2026, with respect to the consolidated financial statements of EnerSys and the effectiveness of internal control over financial reporting of EnerSys included in this Annual Report (Form 10-K) of EnerSys for the year ended March 31, 2026.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

May 20, 2026

## Exhibit 31.1

**EXHIBIT 31.1** 

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER** 

**PURSUANT TO RULE 13a-14(a)/15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934** 

I, Shawn M. O'Connell, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Annual Report on Form 10-K of EnerSys;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| ENERSYS | ENERSYS |
| By | /s/ Shawn M. O'Connell  |
| | Shawn M. O'Connell |
| | Chief Executive Officer |

---

Date: May 20, 2026

## Exhibit 31.2

**EXHIBIT 31.2** 

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER** 

**PURSUANT TO RULE 13a-14(a)/15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934** 

I, Andrea J. Funk, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Annual Report on Form 10-K of EnerSys;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| ENERSYS | ENERSYS |
| By | /s/ Andrea J. Funk |
| | Andrea J. Funk |
| | Chief Financial Officer |

---

Date: May 20, 2026

## Exhibit 32.1

**EXHIBIT 32.1** 

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER** 

**AND CHIEF FINANCIAL OFFICER** 

**PURSUANT TO** 

**18. U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

I certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Annual Report of EnerSys on Form 10-K for the fiscal year ended March 31, 2026 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-K fairly presents, in all material respects, the financial condition and results of operations of EnerSys.

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| | |
|:---|:---|
| ENERSYS | ENERSYS |
| By | /s/ Shawn M. O'Connell |
| | Shawn M. O'Connell |
| | Chief Executive Officer |
| By | /s/ Andrea J. Funk |
| | Andrea J. Funk |
| | Chief Financial Officer |

---

Date: May 20, 2026

<br>