Adjusted earnings per share were $0.69, $0.10 higher than prior year, mainly due to EBITDA growth and lower interest expense.
Adjusted EBITDA was $207 million, 2% higher than prior year, driven by lower costs and restructuring actions.
EMEA showed strongest growth driven by herbicides and branded Cyazypyr.
Free cash flow was $40 million, down $241 million from prior year, mainly due to absence of significant inventory reduction seen previously.
Latin America revenues increased slightly, North America sales declined 5% due to destocking in Canada, and Asia was down due to lower pricing and volumes, especially in India.
Price was down 3% due to pricing adjustments to diamide partners and FX was a mild 1% headwind.
Second quarter sales were 1% higher than prior year, driven by volume growth of 6%.
Capital expenditures for 2025 are estimated at $850 million, up from prior guidance, mainly due to higher labor and permitting costs on the Waco recycled paperboard project.
Inflation and inventory management decisions negatively impacted margins, with a $64 million EBITDA reduction from lower prices, input cost inflation, labor and benefits inflation, and the Augusta divestiture.
Inflation moderated in Q2 with lower resin, recovered fiber, and logistics costs compared to Q1. Foreign exchange provided an $11 million tailwind.
In Q2 2025, Graphic Packaging reported sales of $2.2 billion and adjusted EBITDA of $336 million with a margin of 15.3%. Adjusted EPS was $0.42.
Inventory reduction efforts removed 50,000 tons (12%) of inventory, though FX effects offset balance sheet inventory declines.
Share repurchases totaled 1.6% of outstanding shares at an average price of $22.26, with $1.75 billion available under repurchase authorizations.
Volumes in the Americas were modestly better than expected, driven by beverage promotions and targeted food and foodservice promotions.
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.
Adjusted EBITDA margin in Q4 was 14.8%, down from 17.7% in the prior year quarter, mainly due to lower volumes and tariff impacts.
Adjusted EPS for fiscal 2025 was $1.34, supported by one-time items and restructuring savings despite lower sales and production volumes.
Adjusted EPS in Q4 declined to $0.34 from $0.49 in the prior year quarter.
Capital expenditures were $87 million in fiscal 2025, compared to $102 million the prior year.
Free operating cash flow for fiscal 2025 was $121 million, down from $175 million the prior year, impacted by lower net income and higher inventory costs.
Kennametal reported a 4% organic sales decline for fiscal 2025, with Metal Cutting down 5% and Infrastructure down 2%.
Kennametal returned $122 million to shareholders in fiscal 2025 through $60 million in share repurchases and $62 million in dividends.
Q4 sales declined 5% organically year-over-year, with Metal Cutting down 4% and Infrastructure down 5%.
Dafinchi