A. O. Smith reported second quarter 2025 sales of $1 billion, a 1% decrease year-over-year, with earnings per share of $1.07, a 1% increase compared to the prior period.
China sales declined 11% in local currency due to economic challenges and limited government subsidies, but operating margin was maintained through restructuring and cost controls.
North America segment sales decreased 1% to $779 million, driven by lower water heater volumes but offset by higher boiler sales; segment operating margin expanded by 30 basis points to 25.4%.
Operating cash flow for the first half of 2025 was $178 million, with free cash flow of $140 million, both higher than the prior year period.
Rest of the World segment sales decreased 2% to $240 million, including $16 million from the Pureit acquisition; earnings remained flat at $25 million with a slight margin decline to 10.5%.
Share repurchases totaled approximately 3.8 million shares for $251 million in the first half of 2025, with full-year repurchase plans increased to approximately $400 million.
The company ended June with $178 million in cash and a net debt position of $126 million, with a leverage ratio of 14.1%.
Adjusted diluted earnings per share rose 5% to $0.64, driven by lower interest expense and share repurchases.
Axalta delivered a record quarter for adjusted EBITDA and adjusted diluted earnings per share despite a challenging global market.
Cash flow from operations increased 25% year-over-year, driving free cash flow to $101 million.
Gross margin improved by 100 basis points to 35%, driven by favorable cost dynamics and operational efficiency.
Income from operations declined by $12 million due to restructuring-related costs aligned with long-term strategy.
Industrial net sales declined 6% primarily due to lower volume from macro softness, partially offset by positive price-mix and currency translation.
Mobility Coatings adjusted EBITDA increased 35% year-over-year to $92 million with margin expansion of 500 basis points nearing 20%.
Mobility Coatings net sales increased 1% with organic sales contributing approximately 2 percentage points of growth.
Mobility segment showed 2% organic growth with adjusted EBITDA margins near 20%.
Net sales were just over $1.3 billion, in line with guidance, with adjusted EBITDA at $292 million and margins exceeding 22%.
Performance Coatings net sales declined 6% year-over-year due to lower volumes and unfavorable price-mix, partially offset by acquisitions and FX benefits.
Refinish net sales decreased 6% with organic sales down high single digits due to industry softness and distributor inventory corrections.
This marks the fifth consecutive quarter with adjusted EBITDA margins at or above the 21% target outlined in the A Plan.
Total net leverage ratio remains at 2.5x consistent with A Plan target, with return on invested capital expanded by 110 basis points to 14.3%.
AAON Coil Products sales grew 86.4%, driven by a large liquid cooling project, but AAON branded products declined due to ERP disruptions.
AAON Oklahoma segment sales declined 18% with a 970 basis point gross margin contraction, impacted by supply chain disruptions and ERP-related coil shortages.
BasX segment sales grew 20.4% with a slight gross margin contraction of 60 basis points, reflecting operational improvements.
Cash and equivalents totaled $1.3 million with debt at $317.3 million and a leverage ratio of 1.4; capital expenditures increased 18.7% to $89.6 million year-to-date.
Gross margin contracted by 950 basis points to 26.6%, primarily due to lower production volumes and inefficiencies related to the ERP implementation.
Net sales declined 0.6% year-over-year to $311.6 million, driven by a 20.9% decline in AAON branded sales nearly offset by a 90% increase in BasX branded sales.
Non-GAAP adjusted EBITDA was 14.9%, down 1,120 basis points, and non-GAAP adjusted EPS was $0.22, down 64.5% year-over-year.
Adjusted diluted earnings per share for the second quarter was $0.21.
Adjusted income from operations was $57 million, a 9% increase year-over-year.
Enterprise revenues, excluding fuel surcharge, were $1.3 billion, up 10% compared to 1 year ago.
Free cash flow increased approximately $10 million compared to the same period in 2024.
Intermodal operating income was $16 million, a 10% increase compared to the same period last year.
Intermodal operating ratio was 93.9%, an improvement of 30 basis points compared to second quarter 2024.
Intermodal revenues, excluding fuel surcharge, were $265 million for the second quarter, up 5% year-over-year.
Logistics income from operations was $8 million, near first quarter levels, but down 29% from last year's high watermark.
Logistics operating ratio was 97.7%, an increase of 120 basis points compared to prior year.
Logistics revenue, excluding fuel surcharge, totaled $340 million in the second quarter, up 7% from the same period 1 year ago.
Net debt leverage was 0.6x at the end of the quarter, an improvement from 0.8x at the end of the first quarter.
Network margins improved sequentially by 150 basis points.
Truckload earnings improved nearly 60% sequentially and over 30% year-over-year.
Truckload operating income reached $40 million, a 31% increase year-over-year.
Truckload operating ratio was 93.6%, an improvement of 70 basis points compared to last year and approximately 230 basis points better than the first quarter.
Truckload revenue, excluding fuel surcharge, was $622 million in the second quarter, up 15% year-over-year.
Century Aluminum reported adjusted EBITDA of $74 million in Q2 2025, a $4 million decrease from Q1, driven by a $247 per tonne increase in U.S. Midwest premiums offset by lower LME and European premiums.
Century completed refinancing $250 million of 7.5% senior secured notes with $400 million of 6.875% notes, lowering interest costs and extending maturity to 2032.
Liquidity improved to $363 million with a cash balance of $41 million; net debt remained flat at $446 million.
Net sales were $628 million, down $6 million primarily due to lower third-party alumina sales, partially offset by higher shipments and metal pricing.
The company reported a net loss of $5 million or $0.05 per share, but adjusted net income was $30 million or $0.30 per share excluding exceptional items.
Dafinchi