Adjusted EBITDA was $68 million, down $6 million year-over-year, impacted by higher operating costs including start-up expenses and maintenance timing.
Aerospace and high-strength conversion revenue declined 5% due to a 4% shipment decrease amid commercial aircraft supply chain destocking.
Automotive conversion revenue declined 4% on a 15% shipment decrease due to tariff-related uncertainties, partially offset by better pricing and mix.
Cash flow from operations was $16 million with capital expenditures of $44 million; free cash flow guidance revised down to $50 million to $70 million due to working capital impacts from metal pricing and tariffs.
General engineering conversion revenue rose 3% with a 5% shipment increase driven by reshoring and strong pricing.
Kaiser Aluminum delivered second quarter results exceeding expectations, with conversion revenue of $374 million, up 1% year-over-year.
Liquidity remains strong with $13 million cash and $525 million borrowing availability; net debt leverage ratio increased to 4.2x from 3.9x.
Net income was $23 million or $1.41 per diluted share; adjusted net income was $20 million or $1.21 per diluted share, down from prior year adjusted net income of $27 million.
Packaging conversion revenue increased 9% year-over-year on improved product mix despite a 3% shipment decline due to ramp-up of new roll coat line.
Reported operating income was $38 million, up $2 million from prior year, but adjusted operating income was down $7 million after excluding prior year non-run rate charges.
Adjusted EBITDA was $111.6 million or 11.8% of revenue, down from $115.9 million or 12.2% in the prior year quarter.
Billable headcount decreased 2% year-over-year and 2.9% sequentially, with declines in Economic Consulting and Strategic Communications partially offset by growth in FLC and Corporate Finance & Restructuring.
Earnings per share were $2.13 compared to $2.34 in the prior year quarter and $1.74 in Q1 2025, with sequential EPS growth driven by a $0.55 special charge in Q1.
Free cash flow was $38.3 million compared to $125.2 million in the prior year quarter.
FTI Consulting reported second quarter 2025 revenues of $943.7 million, slightly down from $949.2 million in the prior year quarter but up 5.1% sequentially from Q1 2025.
Net cash provided by operating activities was $55.7 million, down from $135.2 million in Q2 2024, impacted by increased forgivable loan issuances and tax payments.
Net income decreased to $71.7 million from $83.9 million year-over-year, primarily due to lower revenue, increased direct costs including forgivable loan amortization, FX losses, and a higher effective tax rate.
Segment highlights included record revenues and adjusted EBITDA in Corporate Finance & Restructuring and Strategic Communications, strong performance in Forensic and Litigation Consulting despite regulatory headwinds, and declines in Economic Consulting and Technology segments.
SG&A expenses decreased slightly year-over-year to $202.2 million or 21.4% of revenues, but increased sequentially due to non-recurring legal settlements in Q1.
Total debt net of cash increased to $317.2 million from negative $166.4 million a year ago, primarily due to share repurchases and forgivable loan issuances.
Adjusted earnings per share were $2.77, driven by strong productivity, restructuring actions, favorable FX impact, and lower interest expense, offset by higher input costs and plant shutdowns.
Adjusted operating income: Global Ceramic $90 million (8.1%), Flooring North America $69 million (7.3%), Flooring Rest of the World $76 million (10.4%).
Capital expenditures were $80 million in Q2 with planned investments reduced to approximately $500 million for 2025.
Cash and cash equivalents were $547 million with free cash flow of $126 million; share repurchases of approximately $42 million completed with a new $500 million authorization.
Gross margin was 25.5% as reported and 26.4% excluding charges, down approximately 70 basis points due to higher input costs, lower sales volume, and increased shutdown costs, partially offset by productivity gains and favorable FX.
Interest expense decreased to $5 million due to lower debt balance and interest income benefits.
Inventories increased by $130 million primarily due to FX and imported inventory from new tariffs.
Net sales for the second quarter were $2.8 billion, essentially flat as reported and on a constant basis.
Non-GAAP tax rate for Q2 was 19.3%, down from 20.9% prior year, with Q3 and full year tax rate forecasted at approximately 19%.
Nonrecurring restructuring charges of $34 million expected to deliver $100 million in annual cost savings in 2025.
Operating income on an adjusted basis was $223 million or 8% of sales, a decrease of approximately 120 basis points due to increased input costs, lower sales volume, and higher shutdown costs, partially offset by productivity and FX benefits.
Segment sales: Global Ceramic sales just over $1.1 billion (up 0.5% reported, 1.1% constant), Flooring North America sales $947 million (down 1.2%), Flooring Rest of the World sales $734 million (up 1% reported, down 3% constant).
Adjusted EBITDA margins improved to nearly 18%, up from 16.5% in the prior year, supported by strong gross margin expansion of 170 basis points to 39.3%.
Adjusted net income was $97 million or $1.65 per share, compared to $82 million or $1.35 per share in the prior year.
Cash flow from operations was $72 million, slightly down from $78 million prior year, and free cash flow was $14 million compared to $15 million, impacted by higher working capital and capital expenditures.
Domestic segment sales increased 7% to $884 million with adjusted EBITDA margin of 17.9%, while international segment sales increased 7% to $197 million with adjusted EBITDA margin of 15%.
GAAP net income rose to $74 million from $59 million in the prior year quarter, with diluted net income per share increasing to $1.25 from $0.97.
Operating expenses increased 12% due to higher variable costs from shipment volumes, increased employee costs, and expenses related to recent acquisitions.
Second quarter net sales increased 6% year-over-year to $1.06 billion, driven by 7% growth in residential product sales and 5% growth in commercial and industrial (C&I) product sales.
Adjusted EBITDA reached a second quarter record of $1.8 billion, with a margin of nearly 46%.
Adjusted EPS was $10.47 for the quarter.
Fleet productivity increased by 3.3%, supported by disciplined execution.
Leverage remained at 1.8x, towards the lower end of the targeted range.
Rental CapEx was nearly $1.6 billion in the quarter, consistent with expectations.
Returned $534 million to shareholders in the quarter through share buybacks and dividends, with a full-year target of nearly $2.4 billion returned.
Specialty rental revenue grew 14% year-over-year, with 21 cold starts opened in Q2 and a target of at least 50 for the year.
Total rental revenue grew by 4.5% year-over-year to $3.9 billion in Q2, with rental revenue up 6.2% to $3.4 billion, both second quarter records.
Used equipment sales totaled $600 million, in line with expectations, with a full-year target of approximately $2.8 billion of fleet sales.
Year-to-date free cash flow was $1.2 billion, with full-year guidance raised to $2.4 billion to $2.6 billion, including benefits from recent federal tax policy changes.
Adjusted debt-to-EBITDA ratio finished at 2.8x, maintaining A-ratings from all three credit rating agencies.
Adjusted operating ratio was 58.1%, improving 230 basis points versus last year, reflecting a 90 basis point impact from the Brakeperson agreement.
Cash from operations totaled $4.5 billion, up over $500 million versus last year, with $4.3 billion returned to shareholders through share repurchases and dividends.
Freight revenue growth was driven by volume growth adding 375 basis points and price/mix contributing 200 basis points, offset partially by a $100 million decline in fuel surcharge revenue due to lower fuel prices.
Fuel expense declined 8% due to an 11% decrease in fuel prices and improved fuel consumption rate by 2%, setting a second quarter record.
Operating expenses increased only 1% to $3.6 billion despite a 4% increase in volume, with compensation and benefits up 5% due to a $55 million Brakeperson buyout agreement.
Operating revenue was $6.2 billion, up 2% year-over-year, while freight revenue set a second quarter record at $5.8 billion, increasing 4%.
Reported operating income grew to $2.5 billion, a second quarter record, and net income totaled $1.9 billion.
Union Pacific reported second quarter 2025 earnings per share of $3.15, with adjusted EPS of $3.03 excluding unusual items, up 12% versus last year's adjusted results.
Dafinchi