Adjusted EBITDA for Mobile Modular decreased 1% to $53.1 million due to higher inventory center expenses and SG&A costs.
Adjusted EBITDA grew by 3% to $86.5 million.
Average fleet utilization was 73.7% for Mobile Modular, 61.1% for Portable Storage, and 64.8% for TRS-RenTelco.
Interest expense decreased by $5.2 million to $7.8 million due to lower rates and debt levels.
Mobile Modular total revenues increased 8% to $156 million with rental revenues up 5%, rental-related services up 11%, and sales revenues up 13%.
Net borrowings at quarter end were $573 million with funded debt to adjusted EBITDA ratio of 1.6:1.
Net cash provided by operating activities was $110 million, down from $139 million prior year.
Portable Storage revenues decreased 3% to $23.3 million with rental revenues down 5% but sequentially up 5% from Q1; adjusted EBITDA decreased 11% to $9.8 million but increased 15% sequentially.
Rental equipment purchases were $50 million, down from $145 million last year.
Total revenues increased 11% to $235.6 million in Q2 2025.
TRS-RenTelco revenues increased 11% to $36.4 million with rental revenues up 7%; adjusted EBITDA increased 7% to $19.3 million.
Adjusted EBITDA margin reached a quarterly record of 21.8%, up 100 basis points year-over-year.
Adjusted EPS grew mid-teens, with Q2 EPS at $1.26, $0.12 above the midpoint of guidance and up 16% versus prior year.
Net debt to adjusted EBITDA stands at 0.4x, reflecting a strong balance sheet and capacity for continued investment.
Revenue growth was 6% in the quarter, driven primarily by outperformance in Measurement and Control Solutions (MCS) and contributions from all segments.
Segment highlights: MCS revenue up 10%, backlog at $1.7 billion; Water Infrastructure revenue up 4%, margin expanded 200 basis points; Applied Water revenue up 5%, margin expanded 420 basis points; Water Solutions & Services revenue up 5%, margin expanded 60 basis points.
Xylem delivered strong Q2 2025 results with broad-based organic revenue growth led by measurement and control solutions.
Year-to-date free cash flow was down $61 million year-over-year due to outsourced water projects and timing of tax payments, mostly offset by higher net income and improved net working capital.
Dafinchi