EMEA and APAC regions showed robust performance with 11% total sales growth and EBITDA margins reaching 20.6%, driven by high-growth markets and acquisitions.
ESAB delivered strong Q2 2025 results with total sales growth of 2% and record adjusted EBITDA margins of 20.4%, the highest in company history.
Free cash flow for the quarter was $46 million, with expectations for improved cash flow in H2 2025 due to reduced tariff-related inventory and seasonal trends.
The Americas faced volume headwinds due to tariff-related uncertainty, particularly impacting Mexico and delaying automation orders, resulting in flat organic growth in the region.
The company maintained net leverage within its 2x target range, supporting flexible investment in growth opportunities.
Building Services operating income grew 6.8% to $50 million with a 6.3% margin; Industrial Services reported a slight operating loss of $419,000.
Diluted earnings per share were $6.72, up 28% from $5.25 in the prior year period.
EMCOR reported a record quarterly revenue of $4.3 billion for Q2 2025, a 17.4% increase year-over-year.
Industrial Services revenues declined 13.3% to $281.1 million, impacted by lower field and shop services volumes.
Operating cash flow was $194 million for the quarter and $302.2 million year-to-date.
Operating income for Electrical Construction rose 78% to $157.7 million with an 11.8% margin; Mechanical Construction operating income increased nearly 12% to $238.7 million with a 13.6% margin.
Operating margins reached 9.6%, a 50 basis point improvement year-over-year, with operating income of $415.2 million.
U.K. Building Services revenues grew 26.3% to $134.6 million, driven by increased service revenues and new contract awards.
U.S. Building Services revenues increased 1.6% to $793.2 million, with Mechanical Services growing 6.5%.
U.S. Electrical Construction revenues increased 67.5% to $1.34 billion, driven by strong organic growth and the Miller Electric acquisition.
U.S. Mechanical Construction revenues were a record $1.76 billion, up 6% organically.
Year-to-date share repurchases totaled $432.2 million and acquisitions $887.2 million.
Adjusted debt-to-EBITDA ratio finished at 2.8x, maintaining A-ratings from all three credit rating agencies.
Adjusted operating ratio was 58.1%, improving 230 basis points versus last year, reflecting a 90 basis point impact from the Brakeperson agreement.
Cash from operations totaled $4.5 billion, up over $500 million versus last year, with $4.3 billion returned to shareholders through share repurchases and dividends.
Freight revenue growth was driven by volume growth adding 375 basis points and price/mix contributing 200 basis points, offset partially by a $100 million decline in fuel surcharge revenue due to lower fuel prices.
Fuel expense declined 8% due to an 11% decrease in fuel prices and improved fuel consumption rate by 2%, setting a second quarter record.
Operating expenses increased only 1% to $3.6 billion despite a 4% increase in volume, with compensation and benefits up 5% due to a $55 million Brakeperson buyout agreement.
Operating revenue was $6.2 billion, up 2% year-over-year, while freight revenue set a second quarter record at $5.8 billion, increasing 4%.
Reported operating income grew to $2.5 billion, a second quarter record, and net income totaled $1.9 billion.
Union Pacific reported second quarter 2025 earnings per share of $3.15, with adjusted EPS of $3.03 excluding unusual items, up 12% versus last year's adjusted results.
Dafinchi