Energizer's stock is having its worst day ever, as tariffs prove a drain on profits

By Tomi Kilgore

Battery maker's shares are also on track for a record-low close after an earnings miss, and the outlook for the current quarter was less than half what Wall Street projected

Energizer's stock was seeing a selloff toward a record low Tuesday after the company reported a rare profit miss in the latest quarter and a lowered outlook for the current quarter.

Shares of Energizer Holdings were headed for their worst day ever on Tuesday, after the battery seller said tariffs were eating away at profits, particularly in the current quarter.

The company (ENR) missed fiscal fourth-quarter expectations for earnings per share - for just the fifth time in the past five years - and provided a first-quarter outlook that was less than half what Wall Street was projecting. Energizer, which is the parent of its namesake battery brand and also of Rayovac, Armor All and STP, also blamed "softer consumer demand" for weakness in sales volumes, which was only partially offset by higher prices.

"As we begin Fiscal 2026, we are operating through a period of transition, with the first quarter more heavily affected by temporary tariff costs and mitigation efforts," said Chief Executive Mark LaVigne.

The stock tumbled 20.8% in recent morning trading, putting it on track to break the record for a one-day selloff of 14.8%, which was set on Nov. 12, 2020. It was also trading below its June 20, 2025, record-low close of $19.83.

Net income for the quarter to Sept. 30 declined 26.7% to $34.9 million. Adjusted earnings per share, which excludes nonrecurring items, fell to $1.05 from $1.22, hurt by higher costs for products and tariffs. That was below the average analyst estimate compiled by FactSet of $1.12.

For the current first fiscal quarter, adjusted EPS is expected to be in the range of 20 cents to 30 cents, well below the FactSet consensus of 73 cents.

"The macroenvironment continues to evolve," LaVigne said, according to a FactSet transcript of the post-earnings call with analysts. "Tariffs have increased our costs. Consumer demand softened late in the year, and supply chains required rapid rebalancing."

While the company has responded by realigning manufacturing to minimize the tariff impact and by raising prices to protect profitability, the steps taken "weren't easy," LaVigne said, and they impacted results over the short term.

Meanwhile, net sales for the latest quarter grew 3.4% to $832.8 million, to beat the FactSet consensus of $829.8 million, with batteries and lights sales up 3.9% to $677.2 million and auto-care sales up 1% to $155.6 million.

Organic sales, which exclude the boost in sales from acquisition, fell 2.2% form last year, as a 2.9% drop in volumes was only partially offset by a 0.7% increase in pricing, which was driven by tariffs.

For the current quarter, the company expects organic net sales to decline in the high-single-digit percentage range.

The stock has tumbled 45.8% in 2025, while the S&P 500 index SPX has gained 12.3%.

-Tomi Kilgore

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11-18-25 1107ET