Adjusted EBITDA margin expanded by 140 basis points to 16%, marking a record for Q3.
Adjusted free cash flow is expected to grow approximately 27% year-over-year with a conversion rate of about 34%, a 500 basis point increase.
BrightView delivered its highest-ever adjusted EBITDA and margin in Q3 2025, with adjusted EBITDA reaching $113 million, a 5% increase year-over-year.
Net leverage improved to 2.3x from 2.4x in the prior year period, driven by lower debt levels and improved profitability.
Total revenue for Q3 was $708 million, a 4% decrease due to macroeconomic headwinds affecting maintenance discretionary spending and development projects.
Trailing 12-month EBITDA improved by $45 million or 15% over seven quarters, now totaling $344 million.
Adjusted diluted EPS was $0.57 versus $0.89 last year.
AEC gross profit decreased from $24 million to $14 million, reflecting cumulative EAC adjustments.
Cash balance was $107 million with $355 million borrowing capacity under credit facility.
Consolidated adjusted EBITDA was $52 million versus $63 million last year; Machine Clothing adjusted EBITDA was $52 million versus $59 million last year; AEC adjusted EBITDA was $11 million versus $20 million last year.
Consolidated gross profit was $98 million or 31.3% of sales, down from $112 million or 33.9% last year.
Consolidated net sales were $311 million, down 6.2% from $332 million in the second quarter of last year.
Consolidated SG&A expenses increased to $59 million from $56 million due to currency effects and higher professional fees.
Effective tax rate was 31.3% versus 27.9% last year, due to prior year favorable discrete tax adjustments.
Engineered Composites (AEC) net sales were $130 million, lower by 5.7% versus the second quarter of 2024, impacted by cumulative catch-up adjustments but offset by growth in new programs.
Free cash flow was positive $18 million in Q2 versus negative $14 million in Q1; first half free cash flow was $4 million versus $46 million last year.
GAAP net income was $9.2 million versus $24.6 million last year; GAAP diluted EPS was $0.31 versus $0.39 last year.
Machine Clothing gross profit decreased from $89 million to $84 million, but gross margin improved by 40 basis points to 46.3%.
Machine Clothing net sales were $181 million, a decrease of 6.5% versus the second quarter of last year, adjusted decrease approximately 4% after strategic business exits.
Net R&D expenses increased to 4% of sales, reflecting emphasis on material science and new business ventures.
Adjusted income from continuing operations was $1.55 per share compared to $1.54 per share last year.
Bell revenues increased $222 million to $1 billion, with segment profit of $80 million, down $2 million due to higher R&D costs.
Corporate expenses were $36 million; net interest expense was $26 million; LIFO inventory provision was $38 million; intangible asset amortization was $8 million; net special charges were $4 million.
Finance segment revenues were $15 million with profit of $8 million, up from $12 million revenue and $7 million profit last year.
Industrial revenues declined $75 million to $839 million, with segment profit up $12 million to $54 million, reflecting disposition impacts and cost reductions.
Manufacturing cash flow before pension contributions totaled $336 million versus $320 million in Q2 2024.
Segment profit was $346 million, up $3 million from the prior year quarter.
Textron Aviation revenues were $1.5 billion, up $42 million, with segment profit of $180 million, down $15 million due to mix and warranty costs.
Textron eAviation revenues were $8 million with a segment loss of $16 million, slightly improved from last year.
Textron reported revenues of $3.7 billion in Q2 2025, up 5.4% or $189 million from Q2 2024.
Textron repurchased approximately 2.9 million shares for $214 million in the quarter, totaling 5.8 million shares and $429 million year-to-date.
Textron Systems revenues were $321 million, down $2 million, with segment profit up $5 million to $40 million.
Capital spending increased with $295 million toward the Blue Ridge rebuild; free cash flow was lower year-to-date due to higher CapEx and lower net earnings.
Earnings per share decreased by 10% year-over-year but grew by 29% quarter-over-quarter.
Expenses increased by 2% year-over-year, including network disruption costs, inflation, and higher depreciation, partly offset by lower fuel prices.
Fuel costs decreased by $32 million year-over-year due to lower prices despite higher consumption from reroutes.
Labor and fringe expenses rose due to inflation and trucking business headcount increases, while rail headcount decreased year-over-year and sequentially.
Operating income increased $242 million from Q1, with margins improving by 550 basis points, ahead of normal seasonality.
Reported operating margin declined by 320 basis points year-over-year but increased by 550 basis points sequentially.
Total revenue was $3.6 billion for the quarter, down 3% year-over-year, largely due to lower coal and fuel prices.
Total volume was flat compared to last year, with a 4% sequential increase driven by merchandise and coal shipments.
Dafinchi