EnerSys aims to keep leverage below 2x; balance sheet remains strong

By Devika Patel

Knoxville, Tenn., May 28 – EnerSys Inc. reported a strong balance sheet and assured investors that leverage would stay below 2x for all of fiscal 2022.

“Our balance sheet remains strong and positions us well to navigate the current economic environment,” executive vice president of finance and chief financial officer Michael J. Schmidtlein said on the company’s fourth quarter and year ended March 31 earnings conference call on Thursday.

“We expect our leverage to remain below 2x in fiscal 2022,” he said,

As of May 27, the company’s leverage ratio was 1.7x, which allows for over $600 million in additional borrowing capacity, Schmidtlein said.

The company had a record year for free cash flow.

“We generated a record $288 million in free cash flow in fiscal 2021,” Schmidtlein said.

Cash and cash equivalents were $451,808,000 as of March 31, 2021, compared to $326,979,000 as of March 31, 2020.

Long-term debt, net of unamortized debt issuance costs, was $969,618,000 as of March 31, 2021, compared to $1,104,731,000 as of March 31, 2020.

EnerSys is a Reading, Pa.-based provider of stored energy solutions for industrial applications.

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