Adjusted earnings per share was $0.80 for Q2, up 18% on a two-year stack basis.
Aftermarket revenue was 37% of total revenue, up 100 basis points year-over-year.
Deployed $500 million to share repurchases, $47 million to M&A, and $8 million for dividends in Q2.
Free cash flow for Q2 was $210 million, down year-over-year due to bond interest timing; year-to-date free cash flow up 13%.
Leverage improved by 0.3 turns to 1.7x compared to prior year.
Orders grew 8% year-over-year with a book-to-bill of 1.03x; backlog increased mid-teens percentage compared to end of 2024.
Second quarter adjusted EBITDA was $509 million with a margin of 27%, down year-over-year due to volume declines, dilutive impact from acquisitions, tariff pricing matching costs, and targeted growth investments.
Segment IT&S orders up 7% year-over-year with organic low single-digit growth; adjusted EBITDA margins declined due to volume and tariff impacts.
Segment P&ST orders up 13% year-over-year with organic orders down 5% due to prior year large projects; revenue up 17% driven by M&A; adjusted EBITDA margin improved sequentially.
EPS was $4.72, down 35 cents from last year, with 25 cents of headwinds including pension amortization and legal payment impacts.
Financial services operating earnings were $68.2 million, down 2.8% from $70.2 million last year.
Gross margin was 50.5%, down 10 basis points, with 50 basis points unfavorable currency offset by RCI initiatives.
Operating income before financial services was $259.1 million, down 7.6% from last year, impacted by a $11.2 million nonrecurring legal benefit in 2024.
Operating income margin was 22%, down 180 basis points from last year, reflecting investments in product, brand, and people.
Segment results: Commercial & Industrial sales declined 7.6% organically; Tools Group sales up 1.6% organically; RSNI sales up 2.3% organically with margin improvement.
Snap-on reported second quarter sales of $1,179.4 million, flat year-over-year, with organic sales down 0.7% excluding $8.6 million favorable currency impact.
Battery category performed well, while Auto Care was softer due to mild weather; the new Podium Series exceeded launch expectations in 15,000 doors.
Energizer delivered a strong third quarter with results ahead of expectations, reflecting margin restoration, growth investments, and operational agility.
Organic sales growth, gross margin improvement, and earnings growth were achieved in the quarter, with EPS at $0.78 excluding production credits, outperforming consensus.
Returned $84 million to shareholders via dividends and share repurchases in the quarter, with an additional $27 million repurchased in July while maintaining leverage.
The acquisition of Advanced Power Solutions is expected to add $40 million to $50 million in net sales for the fiscal year without immediate earnings impact.
Target raised its 2025 revenue guidance to $310-$320 million and adjusted EBITDA to $50-$60 million, reflecting strong momentum from new contracts and project expansions.
The company ended the quarter with $19 million in cash, a net leverage ratio of 0.1x, and over $190 million in liquidity, supporting ongoing growth initiatives.
Management emphasized that the robust growth pipeline, driven by domestic investment and government demand, positions Target well for continued expansion and shareholder value creation.
Dafinchi