Bedding Products sales decreased 11% year-over-year, with strong trade rod and wire sales offset by weakness in mattresses and adjustable bases.
Furniture, Flooring & Textile Products sales were down 2%, with positive growth in Work Furniture and Textiles offset by declines in home furniture and flooring products.
Liquidity at quarter end was $878 million, including $369 million cash and $509 million revolving credit facility capacity.
Operating cash flow was $84 million, down $10 million versus prior year, mainly due to less benefit from working capital and noncash earnings items.
Second quarter earnings per share were $0.38; adjusted EPS was $0.30, a 3% increase from $0.29 in second quarter 2024.
Second quarter EBIT was $90 million and adjusted EBIT was $76 million, up $4 million versus second quarter 2024 adjusted EBIT, driven by metal margin expansion, restructuring benefits and cost management, partially offset by lower volume.
Second quarter sales were $1.1 billion, down 6% versus second quarter of 2024, due to softness in residential end markets, Automotive and Hydraulic Cylinders, partially offset by strength in trade wire and rod sales, Textiles, Work Furniture and Aerospace.
Specialized Products declined 5%, with Aerospace growing 6% but Automotive and Hydraulic Cylinders declining.
Total debt was reduced by $143 million to $1.8 billion, with net debt to trailing 12-month adjusted EBITDA at 3.5x.
Adjusted EBITDA was $67.2 million, up 1% year-over-year and up $30 million sequentially from Q1 2025, marking the second highest adjusted EBITDA quarter since the merger.
Adjusted EPS was $0.33 compared to $0.34 in the prior year period.
Consolidated net sales for Q2 2025 were $525 million, slightly up from $524 million in Q2 2024 and up 8% sequentially from Q1 2025.
Filtration & Advanced Materials (FAM) segment sales were $204 million, down 1% year-over-year, with adjusted EBITDA of $40 million, down just under $2 million.
Interest expense remained steady at just over $18 million, with over 80% of debt at fixed rates maturing between 2027 and 2029.
Net debt decreased by over $40 million sequentially to $995 million, with a net leverage ratio of 4.5x, providing about 1 full turn of headroom versus the 5.5x covenant.
Sustainable & Adhesive Solutions (SAS) segment sales were $321 million, up 5% organically and 1% reported year-over-year, with adjusted EBITDA of $45 million, down just under 2%.
Tax rate was unusually high at 417% due to valuation allowances and one-time tax adjustments.
Adjusted operating income increased by 1% for the quarter and 12% for the first half of 2025.
Cash generated from operations was $262 million in the first half, with capital expenditures net of disposals at $193 million.
Food & Industrial Ingredients LATAM segment faced a 5% net sales decline and a 2% decrease in operating income, impacted by Argentina joint venture and macroeconomic headwinds.
Food & Industrial Ingredients U.S./Canada segment net sales fell 6% and operating income declined 18%, materially impacted by a mechanical fire at the Chicago plant causing a $10 million loss.
Gross margin expanded by 230 basis points to 26% in Q2, with gross profit dollars growing 7%.
Ingredion delivered adjusted operating income of $273 million in Q2 2025, the highest quarter 2 in company history, despite a 2% decline in net sales primarily due to pass-through of lower corn costs.
Reported and adjusted operating income for the first half were $547 million and $546 million, up 21% and 12%, respectively.
Texture & Healthful Solutions segment led performance with a 2% net sales increase and a 29% rise in operating income, supported by a 3% increase in net sales volume and 400 basis points margin expansion.
The company repurchased $55 million of common shares and paid $106 million in dividends in the first half.
Year-to-date net sales were approximately $3.6 billion, down 3%, with gross profit dollars up 9% and gross margin up 290 basis points to 25.9%.
Dafinchi