Acquisitions contributed an additional 6% to sales, including Dipsol and Sutai.
Adjusted EBITDA was $75.5 million with margins of 15.6%, reflecting sales growth and disciplined cost management.
Capital expenditures were approximately $8 million, focused on new facility construction in China.
GAAP diluted earnings per share were a loss of $3.78 due to a noncash goodwill impairment charge and a $9 million restructuring charge.
Gross margins were 36%, slightly lower than prior periods but within target range, impacted by higher raw material and manufacturing costs and product/geographic mix.
Gross margins were 36%, slightly lower than prior year due to higher raw material and manufacturing costs and product/geographic mix.
Net debt was $735 million with a net leverage ratio of 2.6x trailing 12 months adjusted EBITDA.
Non-GAAP diluted earnings per share were $1.71.
Operating cash flow was $42 million in the quarter, with working capital as a source of cash.
Operating cash flow was $42 million, with $33 million used for share repurchases.
Organic volumes increased 2%, driven by new business wins of approximately 5% and continued strength in Asia/Pacific.
Second quarter net sales were $483 million, a 4% increase from the prior year.
Potential Impact of Chinese Supply Rationalization on MDI Market
Peter Huntsman expressed optimism about China's focus on overcapacity and potential closures of older facilities, which could help balance supply and demand.
He noted that Chinese MDI facilities are technologically advanced and large-scale, making them less likely to shut down compared to European plants.
Trade patterns show Chinese imports into North America have virtually stopped, while European imports have increased, indicating complex trade dynamics.
Impact of Tariffs on Business Strategy and Operations
Hyster-Yale is actively managing tariff impacts through monthly price adjustments based on actual product costs, reflecting a flexible pricing strategy to offset tariff-related cost increases.
The company has built in a 10-15% tariff impact into its outlook, with ongoing negotiations and adjustments, especially in China and India where tariffs remain high.
Tariffs have caused a $10 million negative impact on product margins in Q2, prompting proactive measures such as global sourcing and cost management to mitigate effects.
Management expects tariffs to negatively affect financial results in the second half of 2025 despite mitigation efforts, with some uncertainty about the timing and magnitude of tariff stabilization.
Impact of Tariffs and Trade Policy on Market Dynamics
Tariffs have affected the consumer segment, causing customers to delay restocking, but July saw large orders as inventories normalized.
Titan believes fair trade policies will benefit long-term competitiveness, citing past wins against unfair import practices.
The company is positioned to benefit from tariffs on imports due to its U.S.-based production and global footprint.
Progress in international trade agreements, including the Japan trade deal, is viewed positively, though tariffs and trade tensions remain key uncertainties.
Dafinchi