EnerSys (NYSE:ENS) Q2 2024 Earnings Call Transcript

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David Shaffer: Yes. The Landmark is indeed been our target customer. The project has evolved over time. The units – the average size of the unit has dramatically increased on where we started. There’s been a lot of complexity added to the initiative. We’re extremely pleased with where we landed. The first group of orders of 50 is, we feel to start with this particular customer, and then in terms of pipeline activities with other customers, there’s certainly and we’re starting to see interest even within our other lines of business. So it’s going to be managing the growth effectively and making sure that we do a great job as we – as we build this business up. But in terms of the revenue that we have outlined in our Investor Day model that we laid out, we still feel very good about that and couldn’t be more excited and I’m just really proud of the team.

Greg Wasikowski: That’s great. And then, could you maybe speak to the updated marketing strategy as you see it, you know, who you’re really targeting now? I mean, imagine that similar REIT type customers probably still fit the mold, but you kind of alluded to maybe some overlap in some of your other areas of the business as well, is that something that you guys are actively seeking, maybe some not upselling, but, you know, overlap in material handling centers or what have you, wherever it makes sense?

David Shaffer: Greg, I think the core of the device is its capabilities to manage energy effectively and so as you know, many of our businesses, be it data centers, be it networks, be it forklift charging, all our electrified devices, where users want to maximize or optimize their energy efficiency and minimize their costs. And so the opportunities for effective energy management are broad and the EV fast charges is – I always think of as the cherry on the Sunday, because electric cars are going to present a very high and unpredictable load on the grid, and so I think in the system as it relates to EVs as a shock absorber to protect the grids. But the most – the biggest payback our customers are going to see with this investment is their ability to manage their energy costs and they can take advantage of cheap electricity when it’s available and primarily avoiding things like demand charges.

So as you start to think about – and the other opportunities are finding us, we haven’t really actively sought anything on the marketing yet. We’ve been so focused on getting it right on the engineering and getting the launch right. Our next one of the themes for our next Board meeting is how big how fast, and – but right now I want to stay very much in line with what we’ve committed to in the Investor Day model and we’re very excited about it.

Greg Wasikowski: Got it. All right. Thanks, Dave. I’ll take the rest offline. So that’s it for me. All my best to Drew.

David Shaffer: Thank you.

Andrea Funk: Thanks, Greg.

Operator: Thank you. I’m showing no further questions at this time, I would now like to turn it back to David Shaffer for closing remarks.

David Shaffer: Thanks, Dede. I want to thank everyone for joining us on today’s call, I want to thank you for your interest in EnerSys and we look forward to updating you again next quarter. Have a good day.

Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.

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