Adjusted earnings per share of $1.78 exceeded the high end of guidance, with a pretax margin in the top 3 of the industry.
Alaska Air Group reported a second quarter GAAP net income of $172 million and adjusted net income of $215 million, excluding special items and fuel hedge adjustments.
Fuel price averaged $2.39 per gallon in Q2, trending down through June, with an expected $2.45 average in Q3.
Liquidity ended the quarter at $3 billion, net leverage at 2.4x, and debt to capital at 60%.
Second quarter unit costs were up 6.5% year-over-year, driven by airport real estate cost growth, maintenance, and new labor contracts.
The company generated a record $3.7 billion in revenue, with year-over-year unit revenue performance expected to lead the industry.
The company repurchased $428 million in shares in Q2, totaling $535 million year-to-date.
Adjusted earnings per share were $1.93, down 4% from last year, including $0.03 accretion from the M&C TechGroup acquisition.
Americas segment sales increased 2% reported and organic, with adjusted operating margin at 29.1%, down 220 basis points due to inflation, FX, and tariffs.
Free cash flow was $38 million for the quarter, representing 60% of earnings, with operating cash flow up over 25% year-over-year.
GAAP operating margin was 18.1%, with adjusted operating margin at 21.4%, down 200 basis points from the prior year.
Gross margins declined 170 basis points to 46.6%, pressured by transactional foreign currency headwinds, inflation, lower organic volume, and early tariff impacts.
International segment sales increased 4% reported (including M&C and FX tailwinds) but declined 4% organically, with adjusted operating margin at 13.1%, down 330 basis points.
Net debt increased to $532 million primarily due to the M&C acquisition, with net leverage at 1.1x, maintaining a strong balance sheet.
Second quarter sales were $474 million, a 3% increase on a reported basis and flat organic growth year-over-year.
Comfort Systems USA reported record quarterly revenue exceeding $2 billion for the first time, reaching $2.2 billion in Q2 2025, a 20% increase year-over-year.
Earnings per share were $6.53, a 75% increase compared to the prior year.
EBITDA reached $334 million, a 50% increase year-over-year, and 12-month trailing EBITDA exceeded $1 billion for the first time.
Free cash flow was $222 million, including a $118 million tax refund and normalization of advanced customer payments.
Gross profit was $510 million, up $146 million from last year, with gross profit margin rising to 23.5% from 20.1%.
Mechanical segment revenue increased by 13%, while Electrical segment revenue grew by 49%.
Net income was $231 million, or $6.53 per share, compared to $134 million, or $3.74 per share, in Q2 2024.
Operating income increased over 60% to $300 million, with operating margin improving to 13.8% from 10.2%.
SG&A expenses increased to $210 million, or 9.7% of revenue, mainly due to investments in people to support higher activity levels.
Dafinchi