Adjusted EBITDA margins improved to nearly 18%, up from 16.5% in the prior year, supported by strong gross margin expansion of 170 basis points to 39.3%.
Adjusted net income was $97 million or $1.65 per share, compared to $82 million or $1.35 per share in the prior year.
Cash flow from operations was $72 million, slightly down from $78 million prior year, and free cash flow was $14 million compared to $15 million, impacted by higher working capital and capital expenditures.
Domestic segment sales increased 7% to $884 million with adjusted EBITDA margin of 17.9%, while international segment sales increased 7% to $197 million with adjusted EBITDA margin of 15%.
GAAP net income rose to $74 million from $59 million in the prior year quarter, with diluted net income per share increasing to $1.25 from $0.97.
Operating expenses increased 12% due to higher variable costs from shipment volumes, increased employee costs, and expenses related to recent acquisitions.
Second quarter net sales increased 6% year-over-year to $1.06 billion, driven by 7% growth in residential product sales and 5% growth in commercial and industrial (C&I) product sales.
Adjusted EBITDA margin reached a quarterly record of 21.8%, up 100 basis points year-over-year.
Adjusted EPS grew mid-teens, with Q2 EPS at $1.26, $0.12 above the midpoint of guidance and up 16% versus prior year.
Net debt to adjusted EBITDA stands at 0.4x, reflecting a strong balance sheet and capacity for continued investment.
Revenue growth was 6% in the quarter, driven primarily by outperformance in Measurement and Control Solutions (MCS) and contributions from all segments.
Segment highlights: MCS revenue up 10%, backlog at $1.7 billion; Water Infrastructure revenue up 4%, margin expanded 200 basis points; Applied Water revenue up 5%, margin expanded 420 basis points; Water Solutions & Services revenue up 5%, margin expanded 60 basis points.
Xylem delivered strong Q2 2025 results with broad-based organic revenue growth led by measurement and control solutions.
Year-to-date free cash flow was down $61 million year-over-year due to outsourced water projects and timing of tax payments, mostly offset by higher net income and improved net working capital.
Adjusted EBITDA was $68 million, down $6 million year-over-year, impacted by higher operating costs including start-up expenses and maintenance timing.
Aerospace and high-strength conversion revenue declined 5% due to a 4% shipment decrease amid commercial aircraft supply chain destocking.
Automotive conversion revenue declined 4% on a 15% shipment decrease due to tariff-related uncertainties, partially offset by better pricing and mix.
Cash flow from operations was $16 million with capital expenditures of $44 million; free cash flow guidance revised down to $50 million to $70 million due to working capital impacts from metal pricing and tariffs.
General engineering conversion revenue rose 3% with a 5% shipment increase driven by reshoring and strong pricing.
Kaiser Aluminum delivered second quarter results exceeding expectations, with conversion revenue of $374 million, up 1% year-over-year.
Liquidity remains strong with $13 million cash and $525 million borrowing availability; net debt leverage ratio increased to 4.2x from 3.9x.
Net income was $23 million or $1.41 per diluted share; adjusted net income was $20 million or $1.21 per diluted share, down from prior year adjusted net income of $27 million.
Packaging conversion revenue increased 9% year-over-year on improved product mix despite a 3% shipment decline due to ramp-up of new roll coat line.
Reported operating income was $38 million, up $2 million from prior year, but adjusted operating income was down $7 million after excluding prior year non-run rate charges.
Gross margin improved to 31% from 30% in Q2 2024, driven by favorable refrigerant pricing trends, with gross profit at $22.8 million, slightly higher than last year.
Hudson Technologies reported second quarter 2025 revenues of $72.8 million, a 3% decrease compared to the same quarter last year, primarily due to slightly lower sales volume from a cooler spring season.
Net income rose to $10.2 million or $0.23 per diluted share, compared to $9.6 million or $0.20 per diluted share in Q2 2024.
Operating income was $12.7 million, just below the $12.8 million from the prior year, impacted by increased SG&A expenses of $9.3 million due to higher staffing.
Stock repurchases totaled $2.7 million in Q2, with $4.5 million repurchased year-to-date.
The company ended the quarter with $84.3 million in cash and no debt, maintaining an unlevered balance sheet.
Dafinchi