Adjusted diluted EPS improved compared to last year, supported by EBITDA gains but partially offset by lower interest income and higher depreciation.
Adjusted EBITDA improved year-over-year due to higher sales volumes and lower production costs, including $8.3 million in lower inventory reserves.
Second quarter revenue increased 84% year-over-year, driven by ramp-up in sales of magnet precursor products and record NdPr oxide production at Mountain Pass.
Sequentially, adjusted EBITDA declined due to reduced sales of REO concentrate following strategic decision to stockpile excess production.
Free cash flow was $78 million, a significant increase compared to last year, representing a cash conversion of 108%.
Interest and other expenses were $44 million, $29 million higher than last year due to ESG acquisition financing interest.
Liquidity remained strong with $1.2 billion at quarter end, no debt maturities until 2029.
Operating margin declined 310 basis points year-over-year, consistent with planned sequential improvement of 190 basis points.
Returned capital to shareholders with $21 million stock repurchase and $11 million dividends in Q2.
Segment results: Aerials sales of $607 million with improved operating margin sequentially; MP sales of $454 million with 12.7% operating margin; Environmental Solutions sales of $430 million with 19.1% operating margin.
Terex delivered earnings per share of $1.49 on sales of $1.5 billion with an operating margin of 11% in Q2 2025.
Total net sales grew 8% year-over-year or 7% at constant exchange rates, with legacy sales declining by 12% excluding ESG.
Cash and short-term investments increased to $433 million, with no debt on the balance sheet.
Domestic revenues decreased by 8% due to project timing, while international revenues increased 39%, driven by Canadian and Middle East/Africa operations.
Electric Utility market revenues grew 31%, Commercial and Other Industrial by 18%, and traction market by 61%, albeit from a small base.
Gross profit increased by $6 million to $88 million, with gross margin improving by 230 basis points to 30.7%.
Net income rose 4% year-over-year to $48.2 million, generating a record quarterly EPS of $3.96.
New orders totaled $362 million, a 2% increase from the prior year, with a book-to-bill ratio of 1.3x and backlog growth of 7% to $1.4 billion.
Operating cash flow was $47 million, and capital expenditures totaled $5.1 million related to facility expansion and new equipment.
Powell Industries reported third quarter fiscal 2025 revenue of $286 million, roughly flat compared to $288 million in the prior year period.
SG&A expenses increased by $3 million to $25 million, driven by higher compensation and acquisition-related costs, with SG&A as a percentage of revenue rising to 8.8%.
Dafinchi