Adjusted earnings per share was $1.08, inclusive of a discrete tax benefit.
Adjusted EBITDA margin was 8.1%, down 260 basis points versus prior year, reflecting gross margin changes and growth investments.
Adjusted gross margin rate was 27.5%, down due to a 3-point impact from tariffs and lower volume, partially offset by supply chain efficiencies and price actions.
Adjusted segment margin for Tools & Outdoor was 8%, down 240 basis points due to tariffs, lower volume, and growth investments.
Engineered Fastening adjusted segment margin was 10.8%, down due to softness in automotive fasteners.
Engineered Fastening segment revenue was down 2% reported and 1% organically, with aerospace growing over 20% organically.
Second quarter 2025 revenue was $3.9 billion, down 2% versus the previous year and down 3% organically.
Second quarter free cash flow was $135 million, strong despite operational impacts from trade policies.
The quarter was impacted by a slow outdoor buying season and shipment disruptions related to tariffs.
Tools & Outdoor segment revenue was approximately $3.5 billion, down 2% year-over-year and 3% organically.
Adjusted EBITDA was $280 million, representing a 16.6% margin, down due to gross profit headwinds partially offset by SG&A savings.
Adjusted EPS was $0.24, a $0.01 decline year-over-year.
Adjusted gross profit was $554 million with a 32.9% adjusted gross margin, down 130 basis points year-over-year due to price actions, unfavorable mix, and increased supply chain expenses.
Adjusted net leverage ended at 3.2x adjusted EBITDA, unchanged from Q1.
Bioprocessing within Bioscience Production was flat year-over-year, with a 5% sequential increase but impacted by customer headwinds and extended maintenance.
Bioscience Production revenue was $561 million, up 2% organically year-over-year and 7% sequentially.
Free cash flow was $125 million with 100% adjusted conversion.
Lab Solutions revenue was $1.122 billion, down 1% organically year-over-year but up 2% sequentially.
Reported revenue for Q2 was $1.68 billion, flat year-over-year on an organic basis.
Record Performance in Power Systems and Distribution Segments
Power Systems segment achieved record revenues of $1.9 billion and EBITDA of $433 million, driven by strong demand in data center and mission-critical applications.
Distribution segment also posted record EBITDA of $445 million, with a 14.6% margin, benefiting from higher Power Generation demand and operational efficiencies.
Management emphasized operational improvements and capacity expansion, with capacity doubling expected to be fully online by early 2026.
Adjusted EBITDA increased 80% to $131.7 million, with a record adjusted EBITDA margin of 16.9%, up 280 basis points from last year.
Capital expenditures totaled $36.7 million for the quarter, with full-year guidance of $130 million to $140 million.
Debt to trailing 12 months EBITDA ratio was 3.17x, with a target to reduce leverage to approximately 2.5x by late fiscal 2026.
Net income was $44 million, with adjusted net income at $45.2 million or $0.81 per diluted share.
Operating cash flow was $83 million, more than doubling from $35 million a year ago, with a strong conversion rate of 80% to 85% of EBITDA to cash flow expected for FY 2025.
Q3 revenue was $779.3 million, up 51% year-over-year, driven 5% by organic growth and 46% by acquisitions.
Adjusted earnings per share rose 25% to $1.60 in Q3 2025.
Adjusted EBIT margins increased from 19.3% to 21.1% year-over-year in Q3, driven by favorable price, mix, and leverage effects.
ESCO Technologies reported strong Q3 2025 financial results with reported sales growth of nearly 27% and organic sales growth of 11%, excluding the Maritime acquisition impact.
Test segment delivered 21% sales growth in Q3 and 15.4% adjusted EBIT growth, though margins declined slightly due to mix and tariff impacts.
The Aerospace & Defense segment showed 56% reported sales growth and 14% organic growth, with a 560 basis point margin increase and record backlog of $832 million.
Utility Solutions Group had flattish sales growth of 2% but strong order growth of 5.5%, with some margin pressure due to timing issues at Doble.
Year-to-date results show double-digit adjusted EBIT margin improvement and over 24% adjusted EPS growth.
Gross profit was $108.3 million with a margin of 25.8%, slightly down from 26% in the prior year quarter.
Industrial Equipment division achieved record net sales of $240.7 million, up 17.6% organically, with operating income of $34.3 million and a 14.3% margin.
Interest expense decreased by $2.4 million due to lower debt levels, partially offsetting foreign exchange headwinds.
Net income increased nearly 10% to $31.1 million or $2.57 per diluted share, compared to $28.3 million or $2.35 per share in Q2 2024.
Operating income rose significantly to $47.1 million, with an operating margin of 11.2%, up 83 basis points year-over-year.
Second quarter 2025 revenue was $419.1 million, a modest increase from $416.3 million in Q2 2024.
Total debt was reduced by 93.5% year-over-year to $213.1 million, with net debt near zero at $11.3 million.
Vegetation Management division sales declined 15.7% to $178.4 million but showed an 8.8% sequential improvement.
Dafinchi