By Roshan Fernandez

Shares of EnerSys fell after the battery manufacturer said lingering effects from tariffs would pull down first quarter results.

EnerSys' stock fell about 13%, to $83.41, midday Thursday, and is down about 9.8% year to date.

In its earnings call earlier Thursday, the company said its current exposure to tariffs is about $92 million. The company previously had forecast exposure of about $160 million, before the May 12 announcement that the U.S. and China had agreed to cut retaliatory tariffs.

The Reading, Pa., company expects to absorb about $5 million in costs from stranded tariffs in the first quarter, Chief Financial Officer Andrea Funk said on the call with analysts.

"We intend to fully offset this impact, but expect some near-term friction in Q1 due to stranded tariffs that can't be passed on to customers and shifting customer order patterns," Chief Operating Officer Shawn O'Connell said.

EnerSys said Wednesday it expects first-quarter net sales of $830 million to $870 million, and adjusted earnings between $2.03 and $2.13 a share. Analysts surveyed by FactSet were expecting $908 million in sales and $2.41 a share in adjusted earnings.

In addition to the effects from tariffs, the guidance also reflects typical seasonal volume softness in the motive-power and transportation sectors, but is exacerbated by short-term macroeconomic conditions, Funk said.

Write to Roshan Fernandez at roshan.fernandez@wsj.com

(END) Dow Jones Newswires

May 22, 2025 15:39 ET (19:39 GMT)

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