Adjusted unallocated corporate expenses and software development costs declined 2.1% year-over-year.
Capital expenditures were $2.7 million, primarily for aircraft maintenance and software development.
Cash and short-term investments totaled $113.4 million at quarter-end with no debt.
Medical revenues rose 17.6% year-over-year to a record $45.1 million in Q2 2025, driven by new transplant center customers and strengthened demand from third-party service providers.
Medical segment adjusted EBITDA margin increased to 13.4% in Q2 2025 from 11.4% in Q1 2025 but declined 100 basis points compared to 14.4% in Q2 2024 due to elevated maintenance downtime and costs.
Passenger segment adjusted EBITDA tripled year-over-year from $0.8 million to $2.4 million.
Passenger segment adjusted SG&A expenses fell 17% year-over-year due to lower marketing spend, restructuring in Europe, and exit from Canada.
Passenger segment flight margin improved by 580 basis points year-over-year to 30.5% in Q2 2025, driven by margin expansion in short distance and Jet & Other segments.
Working capital increased by $7 million in Q2 2025, contributing to cash from operations being negative $3.1 million despite adjusted EBITDA of $3.2 million.
Adjusted EBITDA margin in Q4 was 14.8%, down from 17.7% in the prior year quarter, mainly due to lower volumes and tariff impacts.
Adjusted EPS for fiscal 2025 was $1.34, supported by one-time items and restructuring savings despite lower sales and production volumes.
Adjusted EPS in Q4 declined to $0.34 from $0.49 in the prior year quarter.
Capital expenditures were $87 million in fiscal 2025, compared to $102 million the prior year.
Free operating cash flow for fiscal 2025 was $121 million, down from $175 million the prior year, impacted by lower net income and higher inventory costs.
Kennametal reported a 4% organic sales decline for fiscal 2025, with Metal Cutting down 5% and Infrastructure down 2%.
Kennametal returned $122 million to shareholders in fiscal 2025 through $60 million in share repurchases and $62 million in dividends.
Q4 sales declined 5% organically year-over-year, with Metal Cutting down 4% and Infrastructure down 5%.
Dafinchi