Adjusted EBITDA from continuing operations was $15.1 million in Q2 2025, a 90% increase from $8 million in Q2 2024, driven by higher-margin parts and services business growth.
Babcock & Wilcox Enterprises reported second quarter 2025 consolidated revenues of $144.1 million, slightly lower than Q2 2024 due to timing of large projects but offset by a $15.4 million increase in parts and services revenue.
For the first half of 2025, revenues from continuing operations were just under $300 million, up from $292.3 million in the first half of 2024, with adjusted EBITDA more than doubling to $21.2 million.
Net loss from continuing operations narrowed to $6.1 million in Q2 2025 compared to a $20.5 million loss in Q2 2024.
Operating income improved to $8.1 million in Q2 2025 from an operating loss of $4.4 million in Q2 2024.
The sale of Diamond Power International generated $177 million in gross proceeds, improving the balance sheet and reducing net debt to approximately $203.9 million after debt repayments.
Average age of tractors increased slightly to 22 months from 21 months a year ago.
Consolidated adjusted operating income decreased by 19.6% to $15 million, mainly due to cost increases in the Truckload segment.
Consolidated freight revenue increased by 7.8% year-over-year to $276.5 million in Q2 2025.
Dedicated fleet grew by 162 tractors or 11.7% year-over-year, with freight revenue up $8.3 million or 10.2%.
Dedicated segment's adjusted operating ratio was 95%, improved sequentially but below prior year and long-term targets.
Expedited segment had a 93.9% adjusted operating ratio, slightly better than the prior year but below expectations.
Managed Freight exceeded revenue and profitability expectations, benefiting from nonrecurring business that will roll off in Q3.
Minority investment in TEL contributed $4.3 million pretax net income, with TEL's revenue up 34% driven by fleet expansion but offset by lower margins.
Net indebtedness increased by $49 million to $268.7 million as of June 30, 2025, with an adjusted leverage ratio of approximately 2x and debt-to-capital ratio of 39.2%.
Return on average invested capital was 7% compared to 8% in the prior year.
Warehouse segment revenue was flat year-over-year, but adjusted operating profit fell by approximately 45% due to facility cost increases and start-up inefficiencies.
Cash flow from operations was $247 million, with $191 million in net CapEx deployed; liquidity stood at $824 million with net debt leverage ratio improving to 2.5x.
Company-wide adjusted EBITDA was down 1% year-over-year, with operating income up 1% to $198 million and net income of $106 million ($0.89 diluted EPS).
LTL adjusted EBITDA grew 1% year-over-year to $300 million, with margin expansion of 90 basis points to 24.2%.
Maintenance cost per mile improved 6%, supported by a younger fleet with average tractor age under 4 years.
North American LTL segment revenue declined 3% year-over-year due to lower fuel surcharge revenue but increased 6% sequentially excluding fuel.
Purchase transportation expense declined 53% year-over-year due to insourcing linehaul miles, resulting in $36 million in savings.
XPO reported $2.1 billion in revenue and adjusted EBITDA of $340 million for Q2 2025, with adjusted diluted EPS of $1.05 exceeding expectations.
Dafinchi
