Record Performance in Power Systems and Distribution Segments
Power Systems segment achieved record revenues of $1.9 billion and EBITDA of $433 million, driven by strong demand in data center and mission-critical applications.
Distribution segment also posted record EBITDA of $445 million, with a 14.6% margin, benefiting from higher Power Generation demand and operational efficiencies.
Management emphasized operational improvements and capacity expansion, with capacity doubling expected to be fully online by early 2026.
Adjusted earnings per share rose 4.1% to $2.04, driven by operational performance and accretive capital deployment but partially offset by higher tax.
Adjusted operating margin was 23.7%, flat year-over-year, with segment margin expansion offset by increased corporate expenses.
Allegion reported Q2 2025 revenue exceeding $1 billion, a 5.8% increase compared to 2024, with organic revenue growth of 3.2%.
Americas segment revenue grew 6.6% reported and 4.5% organic, with nonresidential business growing high single digits organically and residential declining mid-single digits.
International segment revenue increased 2.9% reported but declined 2.2% organically, with electronic businesses growing but mechanical portfolio pressured.
Net debt to adjusted EBITDA ratio remained healthy at 1.5x.
Year-to-date available cash flow was $275.4 million, up 56.5%, supported by higher earnings, lower capital expenditures, and improved working capital.
Adjusted earnings per share increased 24% to $1.02, supported by strong operating results, a lower tax rate, foreign currency gains, and higher pension income.
Adjusted EBITDA was $146 million, up 16% year-over-year, driven by strong government operations performance.
Commercial Operations adjusted EBITDA was $16 million, down from $23 million last year, with margin pressure due to mix and growth investments.
Commercial Operations revenue increased 24% due to acquisitions and medical growth, but organic revenue declined 3%.
Free cash flow was robust at $126 million, aided by good working capital management.
Government Operations revenue grew 9% with adjusted EBITDA up 23%, yielding a 22.6% margin.
Second quarter 2025 revenue was $764 million, up 12% year-over-year, with organic revenue growth of 4% excluding acquisitions.
Adjusted EBITDA was $252 million or 11.5% of sales.
Dividends paid year-to-date were $135 million, with total shareholder returns of $602 million combined with buybacks.
Energy Equipment segment revenue grew 5% sequentially but margins declined due to unfavorable mix; it delivered its 12th straight quarter of year-over-year margin expansion.
Energy Products and Services segment revenue grew 3% sequentially but declined 2% year-over-year; adjusted EBITDA declined $38 million to $146 million or 14.2% of sales.
For Q2 2025, NOV reported revenues of $2.2 billion, up 4% sequentially and down 1% year-over-year.
Free cash flow generated was $108 million in Q2, with 83% EBITDA to free cash flow conversion over the last 12 months.
Net income was $108 million or $0.29 per fully diluted share.
Share repurchases totaled 10.9 million shares for $150 million in Q2; total repurchases since Q2 2024 are approximately 25 million shares.
Tariff expense was approximately $11 million in Q2, expected to rise to $20-$25 million in Q3 and $25-$30 million in Q4.
Working capital improved by 300 basis points year-over-year as a percentage of revenue.
Dafinchi