Adjusted EBITDA was $30.8 million with a margin of 13%.
Backlog increased 23% year-over-year to $360 million, led by longer-cycle project orders offsetting short-cycle softness.
Free cash flow was negative $21.4 million due to working capital seasonality, acquisition payments, higher taxes, and tariff payments.
GAAP loss per share was $0.07; adjusted EPS was $0.50, down $0.12 year-over-year mainly due to tariffs.
Gross margin was 32.7% GAAP and 34.3% adjusted, with adjusted gross margin contracting 370 basis points year-over-year due to tariffs, volume, and mix.
Operating income was $5.5 million GAAP and $18.5 million adjusted, with adjusted operating margin of 7.8%.
Orders grew 2% year-over-year to $259 million, driven by 8% growth in project-related orders and strength in EMEA.
Sales were down 2% year-over-year to $235.9 million, with a 3% decline in short-cycle sales and unchanged project-related sales.
SG&A expenses increased on a GAAP basis due to acquisition and realignment costs but adjusted SG&A decreased 5% excluding these items.
Short-cycle orders declined 4% due to tariff impacts and market digestion of price increases.
Tariffs negatively impacted gross profit by $4.2 million and gross margin by 180 basis points in Q1.
Adjusted EBITDA for Ecoservices was $49.8 million, flat compared to Q2 2024, with pricing gains offset by lower volume and higher manufacturing costs.
Adjusted free cash flow was a use of $2 million in the first half of 2025, impacted by timing of dividends, higher capital expenditures, the Waggaman acquisition ($41 million cash outlay), and $22 million in share repurchases.
Advanced Materials and Catalysts segment sales declined slightly due to lower event-driven custom catalyst sales, with adjusted EBITDA at $13.7 million, above guidance but down from prior year.
Ecoservices sales increased 14% year-over-year to $176 million, driven by favorable pricing, the Waggaman acquisition, and higher sulfur costs pass-through.
Ecovyst reported adjusted EBITDA of just under $56 million for Q2 2025, exceeding the high end of guidance.
Net debt leverage rose to 3.5x at quarter-end, primarily due to acquisition and share repurchases, with pro forma leverage at 3.2x.
Total liquidity remained healthy at $152 million, including $83 million available under the ABL facility.
Zeolyst joint venture sales were $28 million, slightly below prior year, with higher sustainable fuel catalyst sales offsetting lower hydrocracking and custom catalyst sales.
Adjusted EPS increased by $0.02 year-over-year, aided by share repurchases.
Adjusted operating income was $373 million, slightly down $8 million on a comparable basis due to $31 million lower sales but offset by cost controls and tariff management.
Adjusted operating margin was strong at 10.3%, despite a 40 basis point tariff headwind, marking the fifth consecutive quarter with margin at or above 10%.
BorgWarner reported second quarter 2025 sales of just over $3.6 billion, relatively flat year-over-year excluding foreign exchange, in line with market production.
Free cash flow was $507 million, a 71% increase from the prior year, driven by strong working capital and capital expenditure performance.
Light vehicle eProduct sales increased 31% year-over-year, driven by strong growth in Europe and Asia.
The company returned over $130 million to shareholders in the quarter through dividends and share repurchases.
Dafinchi