Adjusted gross margins expanded 260 basis points to 34.9%, marking the seventh consecutive quarter of sequential margin improvement.
FCD segment sales grew 7% driven by Mogas acquisition, but adjusted operating margins were 12.2%, negatively impacted by approximately 260 basis points due to fabricated modules and inventory write-offs.
Flowserve delivered second quarter revenue of $1.2 billion, representing 3% growth versus prior year, with adjusted operating margin of 14.6% and adjusted earnings per share of $0.91, a 25% increase year-over-year.
Incremental margins during the quarter were an impressive 94%, with adjusted operating income increasing 20% to $174 million.
Net debt to adjusted EBITDA ratio was 1.25x, the lowest in a decade, providing significant capital allocation flexibility.
Strong cash from operations of $154 million and free cash flow of $138 million were reported, with a free cash conversion ratio of 115%.
The FPD segment achieved adjusted operating margins of 20.3%, a 340 basis point increase year-over-year, driven by 80/20 program, productivity gains, and favorable mix.
Free cash flow outlook remains unchanged despite higher adjusted EBITDA guidance due to timing and prudence around a large Canadian receivable.
Quanta Services reported strong second quarter 2025 results with revenues of $6.8 billion, net income attributable to common stock of $229 million or $1.52 per diluted share, adjusted diluted earnings per share of $2.48, and adjusted EBITDA of $669 million.
Record backlog reached $35.8 billion along with other record financial metrics.
Second quarter performance was ahead of expectations across most financial metrics and similar to the first quarter.
The company generated healthy cash flows with cash flow from operations of $296 million and free cash flow of $170 million in Q2.
The company is seeing mid-single digit organic top-line growth and close to double-digit EPS growth organically.
Dafinchi