Capital expenditures were $29 million, with full-year CapEx expected to be 4-5% of revenue.
Electronics & Packaging revenue was $266 million, up 5% sequentially and 16% year-over-year, fueled by growth in chemistry and chemistry equipment despite normalization in flexible PCB drilling equipment.
Free cash flow was $136 million, representing over 100% of net earnings and 14% of revenue.
Gross margin was 46.6%, slightly above midpoint guidance but impacted by tariffs estimated to reduce margin by 115 basis points.
Liquidity stood at approximately $1.3 billion, with gross debt of $4.5 billion and a net leverage ratio of 4x, slightly improved from prior quarter.
MKS reported Q2 2025 revenue of $973 million, up 4% sequentially and 10% year-over-year, exceeding the high end of guidance.
Net earnings were $119 million or $1.77 per diluted share, at the high end of guidance.
Operating income was $202 million with a 20.8% margin; adjusted EBITDA was $240 million with a 24.7% margin, both above expectations.
Semiconductor revenue was $432 million, up 5% sequentially and 17% year-over-year, driven by strong NAND upgrade activity and demand for RF power solutions.
Specialty Industrial revenue was $275 million, up 2% sequentially but down 5% year-over-year due to softness in industrial markets offset by gains in research, defense, and life sciences.
Adjusted gross margin declined 10 basis points due to Mott acquisition dilution, unfavorable mix, and volume deleverage, partially offset by price/cost and operational productivity.
Free cash flow increased 25% year-over-year to $147 million, representing 94% conversion versus adjusted net income.
In Q2 2025, IDEX delivered strong financial performance with revenue toward the midpoint of guidance, adjusted EBITDA margin at 27.4%, and adjusted EPS outperforming expectations.
Liquidity remained strong at approximately $1.1 billion, with $568 million in cash and $541 million in undrawn revolver capacity after debt repayments.
Organic orders grew 2% and organic sales increased 1% year-over-year, supported by positive pricing and favorable results in aerospace, defense, data centers, pharmaceuticals, and North American fire OEMs.
Platform optimization and delayering initiatives delivered $14 million in savings in Q2, on track for $62 million full year savings.
Balance sheet remains strong with $55.1 million cash, no debt, and $120 million credit facility availability.
Board declared a quarterly dividend of $0.26 per share.
Capital expenditures were $1.4 million in the quarter, with expected full-year 2025 capex of $2 million to $3 million focused on maintenance.
Global Industrial reported second quarter 2025 revenue of $358.9 million, a 3.2% increase year-over-year, driven by growth in largest strategic accounts and offset by declines in smaller transactional customers.
Gross margin reached a record 37.1%, up 190 basis points from Q2 2024 and 220 basis points sequentially, reflecting price capture and favorable FIFO inventory timing.
Operating income rose 26.9% to a record $33.5 million, with operating margin at 9.3%.
Selling, distribution, and administrative expenses increased 3.5% to $99.5 million but remained flat as a percentage of sales at 27.7%, reflecting cost control and efficiency gains.
Strong cash flow generation was noted with operating cash flow from continuing operations at $31.8 million.
Adjusted EBITDA was $67.2 million, up 1% year-over-year and up $30 million sequentially from Q1 2025, marking the second highest adjusted EBITDA quarter since the merger.
Adjusted EPS was $0.33 compared to $0.34 in the prior year period.
Consolidated net sales for Q2 2025 were $525 million, slightly up from $524 million in Q2 2024 and up 8% sequentially from Q1 2025.
Filtration & Advanced Materials (FAM) segment sales were $204 million, down 1% year-over-year, with adjusted EBITDA of $40 million, down just under $2 million.
Interest expense remained steady at just over $18 million, with over 80% of debt at fixed rates maturing between 2027 and 2029.
Net debt decreased by over $40 million sequentially to $995 million, with a net leverage ratio of 4.5x, providing about 1 full turn of headroom versus the 5.5x covenant.
Sustainable & Adhesive Solutions (SAS) segment sales were $321 million, up 5% organically and 1% reported year-over-year, with adjusted EBITDA of $45 million, down just under 2%.
Tax rate was unusually high at 417% due to valuation allowances and one-time tax adjustments.
Dafinchi