Energizer’s 2025 earnings miss targets as debt soars to $3.19 billion

A decade of acquisitions left Energizer drowning in debt. Now, flat sales and shrinking earnings reveal the steep cost of its expansion strategy.

, and Administrator

2025 November 28 . 10:01 AM

2 min read

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Energizer’s 2025 earnings miss targets as debt soars to $3.19 billion

Energizer has reported weaker-than-expected results for 2025, with organic growth slipping to just 0.7%. The company's full-year earnings and EBITDA both fell short of earlier guidance. Meanwhile, its net debt climbed to $3.19 billion, raising concerns about financial stability.

The battery and lighting specialist has faced persistent challenges in recent years. High debt levels and negative organic growth have weighed on performance, despite a near-doubling of revenue over the past decade through acquisitions. However, this expansion came at a cost—rising debt and share dilution.

In 2024, sales dropped by over 2%, though adjusted earnings per share improved by $0.23. Net debt stood just below $3 billion, while EBITDA exceeded $600 million. The company's last major acquisition, Pilas Varta (Varta) in 2016, marked a shift toward organic growth and portfolio optimisation.

Looking ahead to 2026, Energizer expects organic net sales to remain flat or grow only slightly. Earnings and EBITDA are projected to decline, pushing leverage ratios higher. For 2025, the company guided modest EBITDA growth to $625–$645 million, with adjusted earnings forecasted between $3.45 and $3.65 per share.

The company's share price has reflected its struggles. Trading at around $28 in late 2024, it sits far below the $60s range seen a decade ago. Batteries and lights still dominate sales, accounting for nearly 80% of revenue, alongside auto care products.

Despite efforts to stabilise operations, net debt rose by $200 million in 2025. Weak cash flow conversion and ongoing dividend payments contributed to the increase, even as earnings stagnated. Share buybacks and minor acquisitions added further pressure.

Energizer's latest results highlight ongoing financial strain. With debt rising and earnings under pressure, the company faces a tough path ahead. Analysts will watch closely as it navigates flat sales growth and higher leverage in 2026.