EnerSys Announces Manufacturing Realignment, To Close Tijuana Facility And Shift Production To TPPL Plant, Expects $37M Charge And $20M Annual Pre-Tax Benefit

EnerSys(NYSE:ENS), a global leader in stored energy solutions for industrial applications, today announced a strategic manufacturing realignment to enhance operational efficiency. As part of this initiative, EnerSys will close its legacy lead-acid battery manufacturing facility in Tijuana, Mexico, and transition the majority of production to its existing proprietary advanced Thin Plate Pure Lead (TPPL) plant in Springfield, Missouri, leveraging its investments to expand capacity within its U.S. manufacturing network.

EnerSys' proprietary TPPL technology delivers greater power density and superior discharge performance compared to legacy valve‑regulated lead‑acid batteries. TPPL solutions are well suited for modern data center applications that require reliable, high‑output power over shorter discharge intervals, supporting increasingly demanding uptime and performance requirements.

EnerSys expects to incur a pre-tax charge of approximately $37 million under this plan when completed, the majority of which is expected to be incurred by the second half of fiscal year 2027, of which $14 million is expected to be a non-cash charge primarily from equipment write-offs. Cash charges of $23 million include severance, decommissioning and cleanup related to the facility. The restructuring is expected to deliver an annual estimated pre-tax benefit of approximately $20 million, beginning in fiscal year 2028, while ensuring continued product availability and customer support.