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%.
Adjusted EBITDA loss for Q2 was $190 million, within the guided range of $100 million to $120 million, reflecting increased investments primarily in people-related costs.
Archer closed Q2 2025 with $1.7 billion in cash and cash equivalents, marking the fourth consecutive quarter of record liquidity and nearly double the cash on hand compared to its closest competitor.
Cash used in operating and investing activities totaled $127 million, with investing activities at $24 million, reflecting strategic acquisitions and material purchases.
Despite increased investments, Archer's cash reserves grew by $694 million compared to Q1 2025 and more than quadrupled year-over-year.
Excluding noncash charges, adjusted net loss was $114 million, or approximately $0.20 per share.
GAAP operating expenses increased by $32 million quarter-over-quarter to $176 million, driven mainly by higher personnel costs supporting manufacturing, certification, and defense initiatives.
The company reported a net loss of $206 million for Q2 2025, with a net loss per share of $0.36, including $92 million in noncash charges related to stock-based compensation and warrant revaluation.
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%.
Dafinchi