Significant Growth in AST Driven by Semiconductor and Optical Coatings
AST sales increased over 14%, led by growth in leading-edge precision cleaning solutions, optical coatings, and demand for semiconductor tools.
Segment adjusted EBITDA rose nearly 4%, with margins at 19.6%, impacted by $2.5 million of growth-related operating expenses and $2.8 million foreign exchange headwinds.
Investments in growth initiatives and technology differentiation are expected to support high single to low double-digit revenue growth and EBITDA exceeding 30% over time.
Foreign exchange headwinds are primarily due to weakening of the U.S. dollar, especially in Taiwan, affecting expenses in local currencies.
Management expects continued leverage of growth investments and a resilient supply chain to sustain AST performance in the second half.
Adjusted EBITDA margin expanded by 140 basis points to 16%, marking a record for Q3.
Adjusted free cash flow is expected to grow approximately 27% year-over-year with a conversion rate of about 34%, a 500 basis point increase.
BrightView delivered its highest-ever adjusted EBITDA and margin in Q3 2025, with adjusted EBITDA reaching $113 million, a 5% increase year-over-year.
Net leverage improved to 2.3x from 2.4x in the prior year period, driven by lower debt levels and improved profitability.
Total revenue for Q3 was $708 million, a 4% decrease due to macroeconomic headwinds affecting maintenance discretionary spending and development projects.
Trailing 12-month EBITDA improved by $45 million or 15% over seven quarters, now totaling $344 million.
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.
Dafinchi