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.
Caustic soda demand remained stable with robust global alumina demand and Latin American pulp and paper capacity expansion offsetting US reductions.
Epoxy resin volume improved year over year despite weak building, automotive, and consumer electronics markets, supported by reliability and security of supply as the last fully integrated producer in North America and Europe.
Operating cash flow of more than $212 million was generated, funding the Winchester acquisition, paying down $39 million of debt, and buying back $10 million of Olin shares.
Second quarter adjusted EBITDA declined by 5% compared to 2025, primarily due to a headwind of $32 million of planned maintenance turnaround costs in our chemicals businesses.
Winchester's defense business grew due to strong military ammunition demand, while the commercial ammunition business faced margin weakness from customer destocking, lower pricing, and higher raw material costs.
Advanced Polymer Solutions segment EBITDA was $40 million, stable with prior quarter despite ongoing challenges in automotive markets.
Cash balance at the end of the quarter was $1.7 billion, above the target cash balance of $1.5 billion, supporting financial flexibility.
Cash conversion rate over the past 12 months was 75%, close to the long-term target of 80%, with strong shareholder returns totaling $2.1 billion over the last 12 months.
Cash generation resumed in the quarter with cash returns to shareholders exceeding $500 million through increased dividends and opportunistic share repurchases.
Intermediates and Derivatives segment EBITDA increased by $79 million to $290 million, primarily from improved styrene and propylene oxide margins.
Olefin and Polyolefin Americas segment EBITDA improved by more than 25% sequentially to $318 million, driven by higher integrated polyethylene margins and less downtime.
Olefin and Polyolefin Europe, Asia and International segment EBITDA was $46 million, improving due to lower feedstock costs and seasonal demand.
Second quarter earnings were $0.62 per share with EBITDA of $715 million, showing sequential improvement due to less downtime and lower feedstock costs.
Technology segment EBITDA was $34 million, lower than guidance due to inventory cost adjustments and sales mix changes, with licensing activity remaining subdued.
Ecovyst exceeded guidance with adjusted EBITDA just under $56 million in Q2 2025, above the high end of guidance.
The company’s free cash flow was a use of $2 million in the first half, impacted by acquisition costs and share repurchases.
Guidance for 2025 free cash flow was raised to a range of $70 million to $80 million, with expectations of leverage ratio approaching 3x by year-end, aligning with long-term targets.
Gross profit per ton improved sequentially due to better operating performance and cost improvements, partially offset by an adverse inventory revaluation.
Net debt-to-EBITDA ratio ended at 3.55, one turn above the high end of the target range.
Orion reported $69 million of adjusted EBITDA in Q2 2025, in line with expectations despite demand headwinds.
Rubber segment volumes grew 7% year-over-year with a 4% increase in adjusted EBITDA, driven by improved plant operations and despite import headwinds.
Specialty segment volumes declined 8% year-over-year and 6% sequentially due to macroeconomic uncertainty and tariff-related customer hesitancy.
Volumes increased 3% year-over-year but declined 4.5% sequentially.
Dafinchi