Energizer (ENR) Teardown: Cash Cow, Heavy Debt

Two brands dominate US battery retail. Duracell, owned by Berkshire Hathaway, holds the top share. Energizer Holdings (NYSE: ENR) holds number two, and together they account for roughly 85% of US battery sales. That duopoly position is the core business.

Everything else in the Energizer story - the $3.2 billion in net debt, the Auto Care segment, the ongoing tariff headwinds, the S&P negative outlook - flows from one central question: is that duopoly position durable enough, and the cash it generates strong enough, to service the debt Energizer loaded onto the balance sheet when it acquired the Rayovac and Armor All brands in 2019?

The math, as of the fiscal year ended September 30, 2025: $2.95 billion in revenue, a 41.7% GAAP gross margin (elevated by production tax credits; adjusted closer to 38-40%), approximately $384 million in operating income, $239 million in net income - and $63.2 million in free cash flow against $3.4 billion in gross debt. The gap between reported earnings and actual cash generation is the single most important line in this story.

Section 1 - The snapshot

Metric	FY2025 (ending Sept 30, 2025)	Q1 FY2026 (Oct-Dec 2025)	Q2 FY2026 (Jan-Mar 2026)
Revenue	$2,952.7M	$778.9M	$643.3M
Revenue YoY	+2.3%	n/a (incl. APS)	n/a
Gross margin (GAAP)	41.7%*	32.9%	40.2%
Operating margin	~13% (~$384M)**	~11%**	~11% (est.)**
Net income	$239.0M	-$3.4M	$10.1M
Diluted EPS	$3.32	n/a	n/a
Operating cash flow	$147.1M	$149.5M	n/a
Free cash flow	$63.2M	$124.2M	n/a
Cash	$236.2M	$214.8M	$172.5M
Gross debt (total)	$3,445.9M	$3,318.7M	$3,304.6M
Net debt	$3,195.5M	~$3,104M	~$3,132M
Inventory	$781.2M	$720.7M	$743.6M

The five-year arc:

Fiscal year (ends Sept 30)	Revenue	YoY growth	Gross margin	Net income	OCF	Net debt
FY2021	$3,021.5M	n/a	38.4%	$160.9M	$179.7M	~$3,094M
FY2022	$3,050.1M	+0.9%	36.7%	-$231.5M	$1.0M	~$3,294M
FY2023	$2,959.7M	-3.0%	38.0%	$140.5M	$395.2M	~$3,109M
FY2024	$2,887.0M	-2.5%	38.3%	$38.1M	$429.6M	$2,990.8M
FY2025	$2,952.7M	+2.3%	41.7%*	$239.0M	$147.1M	$3,195.5M

Section 2 - The business model: two segments, one debt stack

Energizer operates through two segments that were built at different times and serve different markets.

Batteries and Lights is the original franchise. Energizer MAX alkaline batteries, Energizer Ultimate Lithium (the premium consumer line), Eveready (the value tier in developing markets), and Rayovac (added via the 2019 Spectrum Brands acquisition, now the primary brand across much of Europe, Latin America, and Asia Pacific) are the core. Batteries are sold through mass retail, grocery, drug, club, auto parts, convenience, and e-commerce channels. There is no disclosed direct-to-consumer revenue line. The brand does not own retail locations. Distribution is purely wholesale into retail.

Auto Care is the diversifying segment, acquired in 2019 alongside the battery deal. Armor All (car protection and cleaning), STP (motor oil additives and fuel treatments), and A/C Pro (automotive air conditioning refrigerant) serve the DIY car maintenance category - a different seasonal demand pattern and a different retail channel (Walmart auto section, AutoZone, O'Reilly, Advance Auto Parts) than batteries. In May 2025, Energizer added Advanced Power Solutions (APS), a portable and distributed power business serving smart home, outdoor power, and defense markets.

The channel structure creates significant concentration risk. Walmart accounted for 13.2% of FY2024 net sales - the only single customer above the 10% disclosure threshold in the 10-K. The top handful of retailers (Walmart, Target, Amazon, Costco, CVS, Walgreens, AutoZone) collectively represent a large majority of total revenue. That retail dependency is the flip side of the duopoly position: you get the shelf space, but the retailer knows it, and they use that knowledge in trade negotiations.

Where the ~41% GAAP gross margin comes from: Energizer manufactures in owned and third-party facilities across North America, Europe, and Asia. Primary inputs are zinc, manganese dioxide, and lithium for battery cells, plus packaging and chemicals for auto care. The FY2025 gross margin of 41.7% was elevated by production tax credits under the US Inflation Reduction Act - credits for domestic battery manufacturing that were concentrated in Q3 FY2025, producing that quarter's anomalous 55.1% gross margin. The normalized adjusted gross margin is closer to 38-40%. Below the gross profit line: SGA of $532.4M (18.0% of revenue), acquisition intangible amortization from the Spectrum Brands deals, and Project Momentum restructuring charges.

Section 3 - Strengths: the duopoly and the diversifier

1. A genuine battery duopoly with unavoidable shelf presence. Duracell and Energizer together hold roughly 85% of US battery sales. Retailers need a branded battery option alongside their private label; for most retailers, that means carrying both Duracell and Energizer. This creates a structural floor on Energizer's distribution that smaller battery brands cannot access without Duracell-scale trade spending. The Energizer Bunny is one of the most recognized advertising mascots in consumer goods. Source: ENR 10-K FY2025 Item 1; PMG Super Bowl category analysis, Feb 2025.

2. Auto Care is a different demand driver. Armor All, STP, and A/C Pro serve vehicle maintenance needs tied to the installed base of older vehicles - a more durable demand driver as average US vehicle age rises. The Auto Care segment has different seasonality, different retail positioning, and less direct private-label competition than alkaline batteries. Revenue from this segment also partially offsets the secular volume pressure on alkalines. The APS acquisition adds faster-growing portable power markets to this diversification story.

3. E-commerce is a positive volume channel. Management has cited e-commerce growth as a specific volume contributor in every recent reporting period. Batteries are well suited to e-commerce subscription reorder (Amazon Subscribe and Save). Volume growth through digital channels partially offsets the footfall softness in physical retail. For Auto Care, Armor All and STP maintain strong product ratings at major e-commerce platforms - consumer loyalty to these brands in their category is measurable. Source: ENR FY2025 and Q1 FY2026 earnings releases.

4. Debt maturity extended through FY2025 refinancing. In March 2025, Energizer extended the term loan to 2032 and the revolving credit facility to 2030. In September 2025, it completed a $400M Senior Notes offering at 6.00% due 2033 and used proceeds to redeem $300M of 6.50% Senior Notes that had been due in 2027. The transactions were leverage-neutral but eliminated near-term maturity risk. The next major maturity event is 2029 (the 4.375% and Euro Senior Notes). Source: ENR 10-K FY2025 notes to financial statements.

Section 4 - Weaknesses: the cracks in the 10-K

1. FY2025 free cash flow against the debt load is thin. $63.2M FCF against $3.4B in gross debt is structurally fragile. Energizer paid $87.1M in dividends and repurchased $89.7M in common shares in FY2025 - total capital returns of approximately $177M in a year when FCF was $63.2M. Net debt grew from $2,990.8M to $3,195.5M over the same period. Returning more than 2x FCF to shareholders while net debt expands is a bet on future cash generation, not a reflection of current cash generation. This posture requires the FY2025 trough to be genuinely temporary, not the new normal. Source: ENR 10-K FY2025 cash flow statement; ENR earnings release, Nov 18, 2025.

2. Private label is a structural problem, not a cyclical one. Amazon Basics commands 27.1% of the US household battery category. That share reflects a permanent change in how informed consumers purchase batteries: price transparency at Amazon means the private label and the branded option are in adjacent search results. The Energizer response - premium innovation (Ultimate Lithium), e-commerce distribution gains, and brand investment - partially offsets this but does not reverse the trend. The FY2025 10-K risk factors call out "intense competition" from private label specifically. Duracell has the same structural problem and larger brand investment; Energizer has the same problem with fewer resources to fight it. Source: ENR 10-K FY2025 Item 1A; PMG Super Bowl category analysis, Feb 2025.

3. The S&P negative outlook means the debt is near its edge. S&P Global revised Energizer's credit outlook to negative on February 20, 2026, expecting adjusted debt-to-EBITDA of approximately 6.3x in 2026. The credit agreement contains a 3.25x net senior secured leverage covenant (which is stricter in what it excludes versus what S&P includes) and a 2x minimum interest coverage covenant. Energizer was in compliance with both as of September 30, 2025. The S&P negative outlook signals that the total adjusted leverage picture - inclusive of all debt, adjusted EBITDA, and a less favorable lens on non-recurring credits - is already near the threshold for a downgrade. A downgrade would raise future refinancing costs at the next debt maturity event (2029). Source: S&P Global Ratings update, Feb 20, 2026; ENR 10-K FY2025.

4. Alkaline category headwind is slow but structural. The alkaline battery market was approximately 48% of the global primary battery market in 2025, valued at approximately $9.75 billion globally. Secular pressure comes from rechargeable devices (smartphones, tablets, wireless earbuds, electric toothbrushes) that reduce alkaline consumption, and from devices with built-in batteries that previously used replaceable alkalines. The category is not collapsing - smoke alarms, remote controls, flashlights, and toys maintain the demand base - but volume growth is structurally flat to negative in mature markets like the US. Energizer's Q1 FY2026 volume declined 4.5% (partly storm-activity comp-related, partly soft consumer demand). Source: CNET battery market analysis, Jun 2026; ENR Q1 FY2026 earnings release, Feb 2026.

Section 5 - Opportunities and threats

The most material near-term opportunity is operational: restoring OCF toward the $395-430M range demonstrated in FY2023-FY2024. The Q1 FY2026 FCF of $124.2M (15.9% of net sales, in a single quarter) is a credible early signal that FY2025's $63M was inventory-timing-driven, not a new baseline. The $124M inventory build in FY2025 (from $657M to $781M) needs to work through the system; if inventory days normalize in FY2026, OCF should recover meaningfully.

The APS acquisition adds revenue with a delay. APS contributed $64.6M to Q1 FY2026 net sales and carries a lower gross margin than core batteries (approximately 170 basis points dilutive to adjusted gross margin in Q1 FY2026). The integration thesis - that APS expands Energizer's addressable market into distributed power for smart home, outdoor power equipment, and defense - is plausible. The execution risk is high. Integrating a new-platform acquisition while simultaneously rebalancing the manufacturing network (Project Momentum) divides management attention, as reflected in Q1 FY2026's reported net loss of $3.4M on $778.9M in revenue.

On the threat side, tariffs are the near-term variable. The Q1 FY2026 gross margin bridge showed approximately 290 basis points of tariff headwind (versus prior year adjusted gross margin). Management is absorbing this through: pricing increases (+0.2% in Q1 FY2026), production tax credits ($9.7M in Q1 FY2026), and Project Momentum savings. The FY2026 guidance absorbs the tariff impact in this way - if tariff rates escalate materially from current levels, the offset levers may not be sufficient. Source: ENR Q1 FY2026 earnings release, Feb 2026.

Section 6 - The macro environment

Three macro forces bear directly on Energizer's FY2026 operating path.

First, US consumer demand softness. Q1 FY2026 volumes declined 4.5% - management cited "softer consumer demand in the U.S. across both segments" and an unfavorable comparison against prior-year storm-activity-driven demand. Battery demand spikes around major weather events; FY2025's Q1 comparison included elevated storm-driven purchases. The FY2026 compare normalizes, but the underlying consumer environment in batteries remains soft as households manage budgets by trading down to private label or reducing impulse battery purchases. This is not a battery-specific phenomenon - it reflects broader consumer caution across consumables in 2025-2026.

Second, the tariff environment. Energizer manufactures in North America, Europe, and Asia. Some finished battery imports from Asia carry tariff exposure. Primary raw materials - zinc, manganese dioxide - also have supply chains with tariff sensitivity. Management locked input pricing on many raw materials for FY2026, reducing but not eliminating commodity and tariff exposure. The IRA production tax credits for domestic battery manufacturing are Energizer's structural offset to this exposure: $9.7M in Q1 FY2026 (1.4% of revenue), with a full-year FY2026 production credit expected to partially offset tariff costs.

Third, interest rates. The Term Loan ($857.9M outstanding at September 30, 2025, extended to 2032) is SOFR-based. At current SOFR levels, the term loan generates meaningful variable interest expense annually. The FY2025 refinancing shifted more of the debt to fixed-rate Senior Notes (the $400M 6.00% notes due 2033 are fixed), reducing but not eliminating SOFR sensitivity. Any material increase in SOFR would directly raise the term loan's interest cost. This is the macro risk that connects most directly to the S&P negative outlook: rising rates at existing leverage ratios are exactly what makes a 6x debt-to-EBITDA ratio unstable. Source: ENR 10-K FY2025 MD&A; ENR 10-K FY2025 debt structure.

Section 7 - The CFO verdict and the operator bridge

The Street debate on Energizer is structured as a binary. The bull case: ENR trades cheap after a ~31% stock decline, at a depressed multiple of FY2026 adjusted EBITDA guidance of $580-610M; the battery category is more stable than feared; buy for the depressed multiple and the dividend yield. The bear case (StockStory's framing): private label structural share loss, weak organic volume growth, and $3.4B in gross debt constrain everything - the stock is cheap because it should be cheap.

Both cases are partly right. S&P's February 2026 negative outlook - adjusted leverage of approximately 6.3x in 2026 - is not a bull or bear argument, it is a fact-based credit assessment from people who are underwriting to worst case.

The Eightx read differs from both extremes. The bulls understate the private-label structural problem. Amazon Basics at 27.1% of household battery share is not a promotional cycle; it reflects a permanent purchasing-channel shift toward price-transparent e-commerce, and this will continue compressing the Energizer-Duracell premium even as volumes stay stable. The bears understate the asset quality: a battery duopoly in a non-discretionary consumable is a genuinely durable revenue base. Auto Care (Armor All, STP) has meaningful consumer loyalty and a different competitive dynamic than alkalines. This is not a business in structural decline; it is a business carrying more debt than its current cash generation can service at scale.

The differentiated thesis: the equity story resolves on whether normalized operating cash flow recovers to the $350-430M range demonstrated in FY2023-FY2024, and sustains there long enough to reduce net debt below $3.0 billion. The FY2025 OCF plunge to $147M was real but partly timing-driven (inventory build, refinancing costs, APS acquisition). Q1 FY2026's $124.2M FCF in one quarter is the early evidence the trough was temporary. If management delivers the $580-610M adjusted EBITDA FY2026 guide and OCF normalizes, the deleveraging math becomes manageable over a 3-5 year horizon. If organic volume continues declining and tariffs escalate further, the S&P negative outlook becomes a downgrade, refinancing in 2029 becomes more expensive, and the equity stub becomes a question of capital structure priority rather than operating performance.

When I work with consumer brands in the $5-80M range, the Energizer pattern shows up in a different form but the same underlying structure. A brand that has expanded beyond its original category through acquisition or product-line extension, carrying a fixed-cost infrastructure - contracted manufacturing, trade spend commitments, a larger team - sized for higher revenue projections than the business is currently generating. The warning sign is not the debt level in isolation. It is the ratio of total fixed cash obligations (interest, mandatory principal, capex, dividend) to actual operating cash flow. When that ratio climbs above 60-70%, the business is running without financial cushion.

I have worked with founders who look at their net income line and feel comfortable, while their bank balance is quietly shrinking - because cash is tied up in inventory, extended trade payment terms, and debt service. The Energizer pattern in FY2025 is exactly that: $239M in net income, $147M in OCF, $63M in FCF, and net debt growing by $205M in the same year. Net income is an accounting calculation. Operating cash flow is a fact. The two diverged in FY2025 because production tax credits hit the P&L and inventory absorbed the cash. Knowing which lines to track - and tracking them quarterly - is what separates a CFO from a bookkeeper.

The early-warning scorecard for this pattern at your scale:

1. Total fixed cash obligations as a percentage of trailing-12-month OCF: add interest expense (cash paid), mandatory principal repayment, capex, and dividends. If that sum exceeds 70% of your OCF, one soft quarter creates a cash shortfall, not just an earnings miss. Track this before your lender does.

2. Inventory days on hand trend: Energizer built $124M of additional inventory in FY2025 while revenue grew only $65.7M. If your inventory days are expanding faster than your revenue growth rate, you are self-financing a working capital trap. The cash will come back when you sell through, but you may need to borrow to cover the gap in the meantime.

3. Capital returns vs. free cash flow: returning more than 1x FCF to shareholders (dividends plus buybacks) while net debt grows is a bet on future performance. If this ratio sustains above 1.5x for two consecutive years, either the payout needs to be reduced or the debt needs to be refinanced at current performance levels.

4. Private label share at your key retail accounts: Energizer watches Amazon Basics. You should track the equivalent at your top three retail doors. When the private label equivalent exceeds 15-20% of category share in an account where you need volume, your trade spend needs to increase or your pricing premium needs a product-innovation reason to hold.

5. Interest coverage margin: know what revenue decline breaks your interest coverage covenant (2x for Energizer). A 15% revenue decline, a 150-basis-point gross margin compression - what does that do to your EBIT-to-interest ratio? If you do not know the answer, the bank does.

If you want to run this scorecard against your own numbers before a lender review or refinancing discussion, that is a fractional CFO conversation. The analysis takes a few hours. The cost of not doing it is discovering the problem when your banker already has the answer.

Related teardowns

For more consumer staples and personal care teardowns, read Edgewell Personal Care (the company that spun off Energizer in 2015), Church and Dwight, and Helen of Troy. Track category dynamics across the public-DTC field on the Public DTC Leaderboard.

Sources and methodology

SEC EDGAR is the primary source for all financial figures in this post. Energizer Holdings, Inc. (CIK 0001632790) files on SEC EDGAR. Filings used: 10-K FY2025 (filed 2025-11-18, accession 000163279025000091); 10-K FY2024 (filed 2024-11-19); 10-K FY2023 (filed 2023-11-14); 10-K FY2022 (filed 2022-11-15); 10-K FY2021 (filed 2021-11-16); 10-Q Q2 FY2026 (filed 2026-05-05). Revenue, gross profit, SGA, net income, EPS, operating cash flow, cash, inventory, and balance sheet figures are from SEC EDGAR XBRL companyfacts data, cross-referenced against the 10-K and 10-Q income statements. ENR SEC EDGAR filings index.

Operating income (~$384M, ~13% operating margin for FY2025) is sourced from the 10-K income statement and MD&A, not from XBRL. Energizer does not separately XBRL-tag a clean consolidated operating income line in a way that is reliably extractable from companyfacts; the figure is derived from the FY2025 10-K income statement and confirmed as approximately 13% of net sales in the 10-K MD&A and sell-side analysis. The exact dollar figure is in the 10-K. ENR FY2025 10-K filing.

Net debt of $3,195.5M (Sept 30, 2025) and free cash flow of $63.2M (FY2025) are sourced to the Energizer Holdings FY2025 fourth quarter and full-year earnings release, November 18, 2025, which explicitly computes net debt as total debt per the balance sheet ($3,431.7M) less cash ($236.2M). ENR FY2025 full-year earnings release.

Q1 FY2026 figures (revenue $778.9M for Oct-Dec 2025 quarter per SEC EDGAR XBRL data; FCF $124.2M, adjusted gross margin 34.9%, tariff bridge) are sourced to the Energizer Holdings Q1 FY2026 earnings release, February 2026. Q2 FY2026 figures (revenue $643.3M for Jan-Mar 2026; gross margin 40.2%) are from SEC EDGAR XBRL data for the 10-Q filed May 5, 2026. ENR Q1 FY2026 earnings release.

Amazon Basics' 27.1% household battery category share is sourced to a PMG industry analysis published February 2025 covering the US battery category ahead of Super Bowl 59. PMG Super Bowl 59 battery market analysis.

S&P Global Ratings negative outlook revision is sourced to S&P's update dated February 20, 2026, as reported by Investing.com. S&P expects adjusted debt-to-EBITDA of approximately 6.3x in 2026 and flagged expected leverage reduction below 6x as the condition for stabilizing the outlook. S&P Revises Energizer Outlook to Negative on Leverage Concerns.

FY2025 gross margin of 41.7% reflects production tax credits. Energizer received production tax credits under IRA domestic manufacturing provisions that are recognized as a reduction to cost of goods sold. These were substantial in FY2025, with the majority concentrated in Q3 FY2025 (April-June 2025, gross margin 55.1% per SEC EDGAR XBRL quarterly data). Management guided FY2026 to include smaller production credits ($9.7M in Q1 FY2026). The GAAP gross margin of 41.7% is used throughout this post as the reported figure; where context requires it, the adjusted figure (~38-40%) is noted. Source: ENR FY2025 10-K MD&A; ENR Q1 FY2026 earnings release gross margin bridge.

Limitations. Energizer does not publicly break out revenue by DTC vs. wholesale or by battery brand (Energizer vs. Rayovac vs. Eveready). The exact dollar amount of FY2025 operating income requires reading the 10-K income statement; the XBRL tag is not cleanly available in companyfacts. APS full-year contribution will be clearer in the FY2026 10-K. S&P ratings and outlooks are proprietary assessments current to February 20, 2026; they may change. Energizer's fiscal year ends September 30; all annual comparisons use fiscal years, not calendar years.

Frequently asked questions

how does energizer actually make money?

Energizer sells through two segments. Batteries and Lights covers alkaline batteries (Energizer MAX, Energizer Ultimate Lithium), the Rayovac brand globally, and Eveready in developing markets. Auto Care covers Armor All (car protection), STP (oil additives and fuel treatments), and A/C Pro (automotive AC refrigerant). Batteries are sold through mass retail, grocery, drug, club, auto parts, and e-commerce channels. Walmart was 13.2% of FY2024 net sales - the only customer above the 10% disclosure threshold. Source: ENR 10-K FY2025 Item 1.

why is energizer carrying so much debt?

Two acquisitions from Spectrum Brands, both closed in 2019. Energizer paid approximately $2B for Spectrum Brands' global battery and lighting division (adding the Rayovac brand internationally) and approximately $1.25B for its auto care division (Armor All, STP, A/C Pro). Both were primarily debt-funded. As of September 30, 2025, gross debt stood at approximately $3.4B across a SOFR-based Term Loan (due 2032), 4.375% Senior Notes (due 2029), 3.50% Euro Senior Notes (€650M, due 2029), and $400M in 6.00% Senior Notes (due 2033). Source: ENR 10-K FY2025 notes to financial statements.

what happened to energizer's cash flow in 2025?

Operating cash flow fell from $429.6M (FY2024) to $147.1M (FY2025), reducing free cash flow to $63.2M. The primary drivers were a $124M inventory build (from $657M to $781M year-over-year) and debt refinancing costs. Net income rose from $38.1M to $239M in the same period - the divergence reflects large production tax credits flowing through the income statement while working capital absorbed the cash. The Q1 FY2026 FCF of $124.2M in a single quarter suggests the FY2025 trough was partly timing-related. Source: ENR 10-K FY2025 cash flow statement.

who is energizer's biggest competitor?

Duracell, owned by Berkshire Hathaway, holds the #1 US battery share. Together, Energizer and Duracell account for roughly 85% of US battery sales. The more immediate competitive pressure is private label: Amazon Basics commands 27.1% of the US household battery category. In Auto Care, Armor All and STP compete with Meguiar's, Chemical Guys, and private-label options at auto parts chains. Source: PMG Super Bowl category analysis, Feb 2025; ENR 10-K FY2025 Item 1A.

what is s&p concerned about with energizer?

S&P Global revised Energizer's credit outlook to negative on February 20, 2026, citing expected adjusted debt-to-EBITDA of approximately 6.3x in 2026. The threshold to return to stable is sustaining adjusted leverage below 6x through operating performance improvement. The concern combines approximately $3.4B in outstanding debt, organic volume softness, and tariff-related margin pressure. The credit agreement contains a 3.25x maximum net senior secured leverage covenant - S&P's concern is about total adjusted leverage, a wider metric than the covenant definition. Source: S&P Global Ratings, Feb 20, 2026; ENR 10-K FY2025.

what is the aps acquisition?

Advanced Power Solutions (APS) is a portable and distributed power products business Energizer acquired May 2, 2025. APS contributed $64.6M to Q1 FY2026 net sales (October-December 2025). The APS business carries a lower gross margin profile than core batteries, creating approximately 170 basis points of dilution on Q1 FY2026 adjusted gross margin. Management's thesis is that APS opens addressable markets in smart home, outdoor power, and defense/industrial power that grow faster than alkaline consumer batteries. Source: ENR Q1 FY2026 earnings release, Feb 2026.

does energizer pay a dividend and buy back stock while carrying this much debt?

Yes. Energizer paid approximately $87.1M in dividends in FY2025 ($0.30/share per quarter) and repurchased $89.7M in common shares at an average price of $22.42/share. Combined capital returns of approximately $177M in a year when free cash flow was $63.2M means Energizer returned more than 2x its FCF to shareholders in FY2025. Net debt grew from $2,990.8M to $3,195.5M over the same period. This capital allocation posture requires the FY2026 OCF recovery to materialize for the math to work. Source: ENR 10-K FY2025, capital allocation section.