Energizer Holdings, Inc.

Good morning, my name is Joanna and I will be your conference operator today. At this time, I would like to welcome everyone to Energizer's fourth quarter and fiscal year 2025 conference call. After the speaker's remarks, there will be a question and answer session. To ask a question, please press star one on your touchtone phone. As a reminder, this call is being recorded. I would now like to turn the conference over to John Polden, Vice President, Treasurer and Investor Relations. You may begin your conference.

Good morning. and welcome to Energizer's fourth quarter and fiscal 2025 conference call. Joining me today are Mark Levine, President and Chief Executive Officer, and John Drabik, Executive Vice President and Chief Financial Officer. In just a moment, Mark will share a few opening comments and then we'll take your questions. A replay of this call will be available on the investor relations section of our website, energizerholdings.com. In addition, please note that our earnings release prepared remarks, and a slide deck are also posted on our website. During the call, we will make forward-looking statements about the company's future business and financial performance, among other matters. These statements are based on management's current expectations and are subject to risks and uncertainties, which may cause actual results that differ materially from these statements. We do not undertake to update these forward-looking statements. Other factors that could cause actual results to differ materially from these statements are included in reports we file with the SEC. We also refer in our presentation to non-GAAP financial measures. The reconciliation of non-GAAP financial measures to comparable GAAP measures is shown in our press release issued earlier today, which is available on our website. Information concerning our categories and estimated market share discussed in this call relates to the categories where we compete and is based on Energizer's internal data, data from industry analysis, and estimates we believe to be reasonable. The battery category information includes both brick-and-mortar and e-commerce retail sales. Unless otherwise noted, all comments regarding the quarter and year pertain to Energizer's fiscal year, and all comparisons to prior year relate to the same period in fiscal 2024. With that, I would like to turn the call over to Mark.

Good morning, and thanks for joining us today. We delivered strong earnings in fiscal 2025 by staying agile and focused in the face of a disruptive environment and shifting trade policies. We moved quickly, capitalized on opportunities, and executed with discipline to achieve outstanding results. Our decisive actions to reshape our operational footprint combined with strategic investments and strong execution have established an elevated earnings base positioning Energizer to win as we close 2025 and move into 2026. Let me share a few highlights that define our progress in 2025. We grew net sales in a challenging environment driven by significant growth in e-commerce, international expansion, and meaningful innovation in auto care. We made necessary changes to our network and executed targeted pricing to mitigate tariffs and preserve margins. Project Momentum achieved over $200 million in savings to date. As we announced this morning, we have extended it into a fourth year focused on increased operational efficiency and the integration of advanced power solutions. Our innovation pipeline is robust, designed to drive category growth and strengthen our leadership across batteries and auto care. And finally, through this transformation and strategic investments, we have established a stronger earnings foundation for the future. For the year, net sales grew 2.3 percent to nearly $3 billion. Adjusted earnings per share increased 6 percent to $3.52, supported by organic growth, disciplined cost management, and manufacturing production credits enabled by our investments in U.S. production. We also returned $177 million to shareholders in fiscal 2025 through dividends and share purchases, reducing our outstanding shares by roughly 5%.