Celanese reported a second quarter 2025 EPS run rate target of $2 per share, with Q3 guidance midpoint at $1.25.
Free cash flow guidance remains strong at $700 million to $800 million for 2025, driven primarily by operations despite $650 million to $700 million in interest expense.
Inventory reduction efforts in Engineered Materials caused a sequential $25 million negative earnings impact in Q3, offset by a prior Q2 benefit.
The company experienced volume weakness in China automotive orders, European demand in Engineered Materials, and the Western Hemisphere Acetyl Chain.
Volumes in the Western Hemisphere acetyl demand are at the lowest levels in 20 years, with Engineered Materials volumes down 5-6% year-over-year.
Adjusted EBITDA margin reached a quarterly record of 21.8%, up 100 basis points year-over-year.
Adjusted EPS grew mid-teens, with Q2 EPS at $1.26, $0.12 above the midpoint of guidance and up 16% versus prior year.
Net debt to adjusted EBITDA stands at 0.4x, reflecting a strong balance sheet and capacity for continued investment.
Revenue growth was 6% in the quarter, driven primarily by outperformance in Measurement and Control Solutions (MCS) and contributions from all segments.
Segment highlights: MCS revenue up 10%, backlog at $1.7 billion; Water Infrastructure revenue up 4%, margin expanded 200 basis points; Applied Water revenue up 5%, margin expanded 420 basis points; Water Solutions & Services revenue up 5%, margin expanded 60 basis points.
Xylem delivered strong Q2 2025 results with broad-based organic revenue growth led by measurement and control solutions.
Year-to-date free cash flow was down $61 million year-over-year due to outsourced water projects and timing of tax payments, mostly offset by higher net income and improved net working capital.
Adjusted EBITDA was $19.7 million or 14.6% of revenue, and non-GAAP EPS was $0.41, above guidance and up $0.03 year-over-year.
Cash from operations was $10.6 million, with $3.1 million returned to shareholders via share repurchases; cash and investments totaled $123.2 million with zero debt.
CNC machining revenue was a company record, growing 20% year-over-year, with U.S. CNC machining up 30%.
Injection molding revenue declined 4% year-over-year, 3D printing revenue was down 1%, and sheet metal revenue grew 9%.
Non-GAAP gross margin was flat sequentially at 44.8%, but down 90 basis points year-over-year due to higher network revenue mix and tariff impacts.
Non-GAAP operating expenses increased 6% year-over-year, mainly due to variable expenses tied to revenue such as incentive compensation and commissions.
Proto Labs reported record second quarter 2025 revenue of $135.1 million, up 6.5% year-over-year in constant currencies and 7% sequentially, exceeding guidance.
Revenue fulfilled through digital factories grew 4% year-over-year, while revenue through the Proto Labs Network increased 16%.
U.S. revenue grew 12% year-over-year, while Europe revenue declined 15% in constant currencies due to contracting manufacturing activity.
Dafinchi