Adjusted EBITDA increased 80% to $131.7 million, with a record adjusted EBITDA margin of 16.9%, up 280 basis points from last year.
Capital expenditures totaled $36.7 million for the quarter, with full-year guidance of $130 million to $140 million.
Debt to trailing 12 months EBITDA ratio was 3.17x, with a target to reduce leverage to approximately 2.5x by late fiscal 2026.
Net income was $44 million, with adjusted net income at $45.2 million or $0.81 per diluted share.
Operating cash flow was $83 million, more than doubling from $35 million a year ago, with a strong conversion rate of 80% to 85% of EBITDA to cash flow expected for FY 2025.
Q3 revenue was $779.3 million, up 51% year-over-year, driven 5% by organic growth and 46% by acquisitions.
Consumer & Specialties sales were $278 million, up 4% sequentially; Household & Personal Care sales were $127 million, up 3% sequentially.
Engineered Solutions sales were $251 million, up 12% sequentially; High-Temperature Technologies sales were $178 million, 3% below prior year but up 5% sequentially.
Free cash flow was $34 million in Q2; CapEx was $29 million with full-year projection of approximately $100 million.
Liquidity stood at nearly $700 million with net leverage ratio at 1.7x EBITDA, below the 2x target.
Operating income for Consumer & Specialties was $37 million, up 24% sequentially with margin at 13.4%.
Operating income for Engineered Solutions was $44 million, with margin improving 200 basis points sequentially to 17.4%, matching last year's record.
Operating income was $79 million, up 25% sequentially, with operating margin at 14.9%, up 200 basis points from Q1.
Sales reached $529 million, an 8% sequential increase driven by higher volumes and favorable pricing.
Second quarter EPS was $1.55, up 36% sequentially and second only to last year's stronger Q2.
Strong cash conversion maintained at around 7% of sales, consistent with historical averages.
Adjusted EBITDA improved by $5 million to $34 million, with an adjusted EBITDA margin expansion of 40 basis points to 10.7%.
Adjusted net income was $18.1 million and adjusted diluted EPS was $0.85, a 27% increase over last year.
Cash position strengthened to $400 million, up $103 million from June 2024.
Executive Search adjusted EBITDA was $54.6 million with a margin of 22.9%.
Executive Search revenue grew 13% to $238 million, with regional growth of 9% in the Americas, 31% in Europe, and 12% in APAC.
General and administrative expenses improved by $4.3 million to $42.2 million, or 13.3% of net revenue, a 340 basis point improvement from the prior year quarter.
Heidrick Consulting revenue increased 17% to $31 million, with adjusted EBITDA positive at $0.6 million.
On-Demand Talent revenue increased 14% to $48 million, turning adjusted EBITDA positive at $1 million versus a loss of $1.6 million last year.
Q2 2025 revenue reached approximately $317 million, a 14% increase compared to Q2 2024.
R&D spend was $6 million or 1.9% of net revenue, focused on technology investments powering all business lines.
Salary and benefits increased 17.6% year-over-year, driven by higher base salaries, payroll taxes, deferred compensation, talent acquisition, retention costs, retirement benefits, and stock compensation.
Adjusted earnings per share was $1.24 with an effective tax rate of 0.9%, significantly lower than 25.2% in the prior year quarter due to $8 million of 45Q tax credits claimed.
Adjusted EBITDA was $56 million with a margin of 13.6%.
Capital expenditures were $28 million, down $5 million from the prior year, resulting in a negative $7 million free cash flow for the quarter, with expectations to strengthen free cash flow in the second half and target positive full year free cash flow.
Cash flow from operations was $21 million, down $29 million year-over-year, impacted by lower net income, timing of 45Q tax credit cash, and unwinding of prior year ammonium sulfate prebuy cash advances.
Nylon and caprolactam margins modestly increased due to declining benzene costs, but sales volume was down about $5 million year-over-year.
Plant costs and other items were a $7 million headwind, including increased utility costs partly due to higher natural gas prices and timing of planned turnarounds.
Pricing over raw materials was unfavorable by $10 million year-over-year, with margin contraction in acetone due to rising propylene costs and margin pressure in plant nutrients from higher sulfur and natural gas costs.
Sales of $410 million in the quarter decreased approximately 10% versus the prior year, driven primarily by softer demand in key nylon end markets including engineered plastics applications serving the auto sector.
$200 million of common stock repurchased in Q2; $1.2 billion remains authorized for repurchases.
Aluminum Operations had operating losses of $69 million in first half 2025, with estimated losses of $40 million in Q3 and improving to $15-$20 million in Q4.
Capital investments for second half 2025 expected around $400 million, mainly for aluminum and biocarbon projects.
Cash flow from operations was $302 million in Q2; liquidity ended at $1.9 billion including $744 million cash and short-term investments.
Metal Recycling operating income was $21 million, $4 million lower sequentially due to lower realized ferrous pricing despite record shipments.
Operating income of $383 million was 39% higher than the first quarter, driven by steel metal spread expansion.
Second quarter 2025 net income was $299 million or $2.01 per diluted share with adjusted EBITDA of $533 million.
Second quarter 2025 revenue was $4.6 billion, above sequential first quarter results due to higher realized steel pricing.
Steel Fabrication operating income was $93 million, lower than first quarter due to pricing decline and increased steel substrate costs.
Steel Operations operating income was $382 million, over 65% higher sequentially due to pricing increases despite modestly lower shipments.
Adjusted EBITDA from continuing operations was $15.1 million in Q2 2025, a 90% increase from $8 million in Q2 2024, driven by higher-margin parts and services business growth.
Babcock & Wilcox Enterprises reported second quarter 2025 consolidated revenues of $144.1 million, slightly lower than Q2 2024 due to timing of large projects but offset by a $15.4 million increase in parts and services revenue.
For the first half of 2025, revenues from continuing operations were just under $300 million, up from $292.3 million in the first half of 2024, with adjusted EBITDA more than doubling to $21.2 million.
Net loss from continuing operations narrowed to $6.1 million in Q2 2025 compared to a $20.5 million loss in Q2 2024.
Operating income improved to $8.1 million in Q2 2025 from an operating loss of $4.4 million in Q2 2024.
The sale of Diamond Power International generated $177 million in gross proceeds, improving the balance sheet and reducing net debt to approximately $203.9 million after debt repayments.
Dafinchi
