Adjusted EBITDA declined 15% to $174 million, with adjusted EBITDA margin falling to 9.5% from 10.7% a year ago due to pricing and cost pressures as well as lower volumes.
Capital expenditures totaled $130 million, with $48 million in maintenance CapEx and $82 million in expansionary CapEx focused on capacity expansion, geographic growth, and automation.
Construction segment sales declined 4% to $552 million with a 6% decline in selling prices partially offset by a 2% increase in units; operating profits declined by $16 million.
Earnings per share for the quarter were $1.70.
Gross profits declined due to lower volumes, higher material and manufacturing costs, and operational challenges, especially in site-built and composite decking businesses.
Net sales for Q2 2025 were $1.8 billion, down 3.5% from $1.9 billion last year, driven by a 3% decline in units and a 1% decline in pricing with recent acquisitions providing a modest offset.
Operating cash flow was $113 million for the quarter, including a seasonal net working capital increase of $166 million expected to convert to cash by end of Q3.
Packaging segment sales declined 2% to $429 million with a 4% decrease in selling prices and 2% unit growth from acquisitions; operating profits declined by $3 million.
Retail segment sales declined 3% due to a 7% decline in unit sales offset by a 4% increase in price; operating profits declined by $6 million.
The company returned capital to shareholders through $42 million in dividends and $261 million in share repurchases.
EMEA and APAC regions showed robust performance with 11% total sales growth and EBITDA margins reaching 20.6%, driven by high-growth markets and acquisitions.
ESAB delivered strong Q2 2025 results with total sales growth of 2% and record adjusted EBITDA margins of 20.4%, the highest in company history.
Free cash flow for the quarter was $46 million, with expectations for improved cash flow in H2 2025 due to reduced tariff-related inventory and seasonal trends.
The Americas faced volume headwinds due to tariff-related uncertainty, particularly impacting Mexico and delaying automation orders, resulting in flat organic growth in the region.
The company maintained net leverage within its 2x target range, supporting flexible investment in growth opportunities.
Depreciation per unit (DPU) was $251, well below the sub-$300 North Star target, exceeding it by 16%, driven by fleet rotation and strong residual values.
Direct operating expenses per transaction day declined 3% year-over-year to about $36, reflecting disciplined cost control and operational efficiency.
Hertz reported $2.2 billion in revenue for Q2 2025, with adjusted corporate EBITDA turning positive at $1 million, a $460 million improvement year-over-year.
Liquidity stood at $1.4 billion at the end of June, supported by delayed Wells Fargo litigation resolution and efficient balance sheet management.
Vehicle utilization improved to 83%, a 300 basis point increase year-over-year, despite a 6% reduction in fleet size.
Strategic Long-Term Contract Wins with Boeing and Airbus
ATI signed a new long-term guaranteed volume agreement with Boeing for airframe products, including titanium alloy sheet from Pageland, SC, validating ATI as a strategic supplier.
Expanded agreement with Airbus now positions ATI as Airbus' top titanium flat rolled and long products supplier, with increased customer share and long-term commitments.
These contracts include volume-based minimums, scope expansion, and pricing terms that allow for inflation and cost pass-through, supporting revenue growth and margin expansion.
AI-Driven Marketplace Margin Expansion and Technological Advancements
Marketplace gross margin reached a record 35.4% in Q2, up 190 basis points year-over-year, driven by AI-powered pricing and selection algorithms.
Overall company gross margin hit a record 40.1%, reflecting continuous improvements in AI technology and data utilization.
The company has increased its AI deployment, including new features like automated extraction from technical drawings and natural language search on Thomasnet.
These technological enhancements are central to driving operating leverage and expanding gross margins, with ongoing product rollouts planned for the second half of 2025.
Adjusted EBITDA margin was 18.6%, above expectations despite unfavorable product mix and tariff impacts.
Cash from operations was near-record at $37 million, with debt reduced by $67 million year-over-year, lowering net debt to adjusted EBITDA leverage to 2.6x.
Diluted EPS was $0.34, down 17% year-over-year, while non-GAAP diluted EPS was $0.59, down 8% but up 34% sequentially from Q1.
Electronics segment sales declined 4%, with gross profit and margin down significantly due to higher freight, duties, and product mix.
Helios Technologies reported Q2 2025 sales of $212 million, exceeding the outlook of $206 million, driven by stronger Hydraulics segment sales and favorable foreign exchange.
Hydraulics segment sales declined 3% year-over-year but gross profit and margin improved due to cost reductions and favorable foreign exchange.
Operating income declined by $4.1 million year-over-year due to lower volume and increased SEA expenses.
Dafinchi