Adjusted earnings per share were $0.87, up $0.09 sequentially but down $0.05 year-over-year due to divestitures.
Adjusted operating income was about $179 million, representing a 19.0% margin, including $12 million of tariff pass-through revenues which diluted margins by 20 basis points.
Adjusted operating margins improved 70 basis points sequentially from Q1 2025 and were flat year-over-year excluding tariff impacts.
Corporate and other adjusted operating expenses increased by $4 million year-over-year, mainly due to higher variable compensation.
Free cash flow was $116 million, a 17% increase year-over-year, with a 91% cash conversion rate, up 17 percentage points from Q1 2025 and 20 points from Q2 2024.
Performance Sensing revenue declined 10% year-over-year to $652 million due to divestitures and lower on-road truck production, but margins expanded 20 basis points to 22.5%.
Sensata reported Q2 2025 revenue of approximately $943 million, down from $1.036 billion in Q2 2024, primarily due to divestitures but up $32 million sequentially from Q1 2025.
Sensing Solutions revenue grew 9% year-over-year to $291 million, driven by industrials and aerospace growth, with margin expansion of 50 basis points to 30.2%.
Adjusted net income increased 6.3% to $264 million; diluted adjusted EPS rose 8% to $1.88.
Dividend increased 15% to $0.45 per share; $100 million accelerated share repurchase completed with $1.3 billion remaining capacity.
Net cash from operating activities increased 15.5% to $245 million; free cash flow rose 22.6% to $189 million.
Net income was $253 million, down 18% year-over-year, primarily due to a $102 million net gain in the prior year from disposed businesses and early debt extinguishment.
Net interest expense increased to $36 million from $29 million due to higher debt and interest rates; effective tax rate was 22.7%, up from 21.7% due to a prior year one-time tax benefit.
Net interest expense increased to $36 million from $29 million due to higher debt and interest rates; effective tax rate was 22.7% versus 21.7% prior year.
OCC adjusted EBITDA grew 9.7% with total adjusted EBITDA margins at 57.6%, up 220 basis points from prior year, including a 120 basis point FX benefit.
Organic constant currency (OCC) revenue grew 7.9%, with underwriting up 7.7% and claims up 8.3%.
Paid a cash dividend of $0.45 per share, a 15% increase year-over-year; completed a $100 million accelerated share repurchase program with $1.3 billion remaining capacity.
Second quarter 2025 consolidated GAAP revenue was $773 million, up 7.8% versus prior year, driven by strong growth in underwriting and claims.
Subscription revenues, comprising 82% of total revenue, grew 9.3% on an OCC basis, led by forms, rules and loss costs, extreme event solutions, and anti-fraud businesses.
Subscription revenues, comprising 82% of total revenue, grew 9.3% on an OCC basis, led by forms, rules, loss costs, extreme event solutions, and anti-fraud businesses.
Transactional revenues, 18% of total revenue, grew 1.8% on OCC basis, driven by international businesses and extreme events securitization, offset by softness in auto and sustainability businesses.
Transactional revenues, 18% of total revenue, grew 1.8% on OCC basis, supported by international businesses and securitization, offset by softness in auto and sustainability businesses.
ARPA growth was over 5%, the highest in 8 years, driven by customers self-selecting premium rate plans, including the new Experience Beyond plan.
Core adjusted EBITDA grew 6% year-over-year, and adjusted free cash flow reached a Q2 record of $4.6 billion, with a 26% conversion rate from service revenues.
Fiber broadband is ramping up with the launch of T-Fiber and acquisitions of Lumos and Metronet, targeting 100,000 fiber net additions this year.
Postpaid service revenues grew 9% year-over-year, accelerating from Q1, while total service revenues grew 6%, more than double the rate of closest competitors.
The business group led the industry in net additions, and 5G broadband led the industry for the 14th consecutive quarter in net additions.
T-Mobile delivered its best Q2 ever with record growth in postpaid phone nets, total postpaid net additions, and gross additions, all up double digits year-over-year.
Adjusted EBITDA was negative $5 million, improving $8 million year-over-year and $19 million sequentially.
Cash and cash equivalents plus restricted cash totaled $134 million at quarter-end, down from $171 million at year-end 2024.
DDD reported Q2 2025 consolidated revenue of $95 million, down 16% year-over-year and 11% excluding the divested Geomagic software business.
GAAP net income was $104 million, driven by gains from the Geomagic asset sale and debt repayment, resulting in GAAP EPS of $0.57.
Healthcare Solutions revenue decreased 8% year-over-year, with Dental down 3% and MedTech growing 13%.
Industrial Solutions revenue declined 23% year-over-year, or 13% excluding Geomagic, driven by softness in consumer-facing markets but partially offset by Aerospace and Defense growth.
Non-GAAP gross margin was 39%, slightly down from 41% the prior year, boosted by a $2 million milestone recognition in Regenerative Medicine.
Non-GAAP loss per share improved to $0.07 from $0.14 in the prior year.
Non-GAAP operating expenses were $47 million, down 27% year-over-year and 24% sequentially due to restructuring and cost efficiencies.
Sequential revenue grew 8% when adjusting for the Geomagic divestiture.
Dafinchi
