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.
Capital expenditures were $9 million, primarily for plant modernizations and capacity expansions.
Cash from operating activities was $55.5 million; cash and restricted cash decreased by $6.9 million to $368.4 million.
Factory-Built Housing segment revenue was $535.7 million, up 17% year-over-year, driven by a 14.7% increase in homes sold and a 1.9% increase in average revenue per home.
Financial Services segment revenue was $21.2 million, up 8.2% year-over-year, driven by higher insurance premium rates and improved underwriting.
Gross margin improved to 23.3% from 21.7% year-over-year, with Financial Services gross margin increasing significantly from negative 0.6% to 40.9%.
Net income was $51.6 million, up from $34.4 million last year, with diluted EPS of $6.42 versus $4.11 in the prior year quarter.
Operating profit increased about 50% compared to both last quarter and a year ago.
Revenue for Q1 fiscal 2026 was $556.9 million, up 16.6% year-over-year and 9.5% compared to the prior year quarter.
Selling, general and administrative expenses increased to $69.1 million or 12.4% of net revenue, mainly due to higher bonuses and commissions.
Stock repurchases totaled $50 million this quarter, with 16.6% of shares repurchased since fiscal 2021.
Adjusted EBITDA for the quarter was $100 million, and adjusted EPS was $1.63.
Adjusted EBITDA margins compressed in the Electrical segment due to pricing declines but improved in the S&I segment due to volume growth and productivity gains.
Atkore reported net sales of $735 million in Q3 2025, with 2% organic volume growth.
Cash flow from operations was $192 million year-to-date, with $14 million proceeds from divestitures and equipment sales.
The balance sheet remains strong with no debt maturities until 2028 and a net leverage ratio of approximately 1x.
Year-to-date volume growth was driven by metal framing, cable management, construction services, PVC and fiberglass conduit products, and electrical cable and flexible conduit.
Dafinchi