EnerSys, Inc. Jefferies Renewables, Clean Energy and E&C Conference 2026

Yeah, sure. Good morning, and thank you for having us. It's fascinating just to hear the tail end of ONE Nuclear Energy. EnerSys is a market leader in stored energy for some of the most critical applications on the planet. We have a technology stack that begins with a battery, is coupled with power electronics that charge that battery and manage the power flow to the end application, software that manages that whole solution. Then we have a full-time company-owned service group that makes it all run smoothly on-site when those on-site services are needed. Our customers are grappling with the same issues I heard ONE Nuclear Energy talk about, and it's energy security. On the other hand, labor scarcity. There's not enough electrons currently on the planet being generated and sent to the right places, and there's not enough electricians to help manage all that.

EnerSys has solutions certainly to offset both. A bit about our markets, just quickly. We have three business segments, Network and Infrastructure Solutions. This is very specialized backup power solutions for data centers, for telecommunications, communications entities, and cable broadband entities, and then power utilities. Across those, EnerSys would have a commanding market share in our area in all of those. Our next business is Industrial Mobility Solutions. Think material handling and mining type devices, forklifts, powering electric forklifts, and then the Class 8 trucks that move those same goods that were loaded by the forklifts. Think APU on a Class 8 truck. Then our final segment is what we call Precision Power, and it's largely aerospace and defense. EnerSys is the largest battery supplier to the U.S. Department of Defense and many of our NATO allies.

That is manned and unmanned systems, satellites, submarines, fighter aircraft, standoff weapons. When you think about the stockpile depletions that are going on right now, many of the stockpiles that now have to be added to feature one of the EnerSys lithium technologies, managing guidance systems and other things on that platform. So those are our three market segments. They're very specialized. They are high trust environments that require a lot of learning, a lot of customer intimacy. EnerSys tends to focus very specifically in our lane because we have a right to win. We're not in the open C&I market. We're not out putting large trailers of just battery energy storage together for utility scale type applications. That's not us. Again, we stay in our lane and stay very specialized. With that, I'll pause and see where Carter takes us.

Yeah. We are tremendously excited about what is going on in the world with data. Even before we get to the AI conversation, and look at what the growth was in the area of hyperscale, it is just a massive growth cycle and AI is only accentuating that. But the demands for data continue to increase on the planet. There are tens of thousands of data centers on planet Earth. EnerSys has a commanding market share. Traditionally, we have been mostly a lead-acid battery play. We have now launched a lithium battery. Both will be very important in the growth of those data centers. So we have a lot of upside in that area, and it is being reflected in our order book. But it is not just the data being created and generated and managed somehow, it also needs to be transmitted around the planet.

And so if you look at our cable and broadband business right now, we have very robust growth as we see DOCSIS 4.0 come online and the need to expand the data pipeline over the mediums that exist out there. So that is very exciting for us. And then, of course, we already talked about this energy equation. Our power utility business, we have over 50% market share in the U.S., for example, in electric substation. So we are seeing double-digit growth there in our substation business, to support these power demand needs. On the other hand, in our precision power and aerospace and defense, we are seeing very robust growth there. EnerSys has some unique technologies. We are involved in about nine chemistries of different lithium batteries today.

But we have specialized chemistries, for example, our lithium silicon cobalt disulfide is the most energy density you can get for a joint standoff weapon. So if you see the large announcements about stockpile replenishment, you see EnerSys, the reason why we are seeing very robust backlog growth and accumulation in those businesses. So we are very excited about A&D. Our Bren-Tronics acquisition got us deeper into soldier power, deeper into drone power and power management, hybridized power systems at the forward edge of battle. And again, EnerSys is right in the middle of that conversation with the U.S. Department of Defense and a leading provider in how we are going to solve for the electrification of the battlefield. And so it is just a really, really nice position for us to be in. I do not want to discredit our motive power material handling business or our industrial mobility.

Right now we're seeing a resurgence of the transportation markets, which is fantastic. There was the great transportation recession kept us slow for a while in that business. Now with the new truck regulations coming out, the new NOx truck requirements, and just the backlog, we're seeing robust growth there. And our material handling business, the forklift powering business, we've seen only a couple of down cycles in our history like this one. But the recovery is usually pretty strong. It's a very dependable business, a very important part of our margin and cash generation, and we definitely see that showing some green shoots and coming back. But certainly between the data center and data situation and the aerospace and defense situation, we're in two of some of the best super cycles we've seen in our career.

Yeah. We have a seat at the table. I'll start with the relationship part. I mentioned high trust in the beginning. Data center, for as large as that industry seems, it is a fairly small and incestuous business. And there's actually a fairly small cadre of people that manage the environmentals across those hyperscalers and in that arena. So they really can't make a bad bet on a supplier. They really need reliability and the next shiny widget isn't enough for them. They need somebody that's going to walk the walk, be there when there's a problem, have quick resolution, and EnerSys has established that position over decades. So I won't mention specific names, but I can tell you that we have a primary seat at the table with all of the hyperscalers. In addition to that, we also serve the OEMs.

Those would be the names you know, the large uninterruptible power supply manufacturers are also our customers. So we're really coming to market through both of those channels. Our data center business today for EnerSys is, Andi, correct me if I get the numbers wrong, about $400 million.

This year we'll round out to $500 million this year, Sean.

$500 million this year. I got to stay ahead of the growth. About $500 million this year for us. We've said publicly in our earnings calls, we've talked about having a very high double digit additions in our order book. We're seeing tremendous growth in that area.