Free cash flow outlook remains unchanged despite higher adjusted EBITDA guidance due to timing and prudence around a large Canadian receivable.
Quanta Services reported strong second quarter 2025 results with revenues of $6.8 billion, net income attributable to common stock of $229 million or $1.52 per diluted share, adjusted diluted earnings per share of $2.48, and adjusted EBITDA of $669 million.
Record backlog reached $35.8 billion along with other record financial metrics.
Second quarter performance was ahead of expectations across most financial metrics and similar to the first quarter.
The company generated healthy cash flows with cash flow from operations of $296 million and free cash flow of $170 million in Q2.
The company is seeing mid-single digit organic top-line growth and close to double-digit EPS growth organically.
Adjusted EPS increased 15% to $1.12 per share compared to the prior year.
DuPont reported second quarter sales of $3.3 billion, growing 2% organically year-over-year.
Electronics segment sales grew 6% organically to $1.2 billion, driven by volume growth in semiconductor technologies and Interconnect Solutions.
Free cash flow was $433 million with a conversion rate of 93%.
Industrials segment sales increased 1% organically to $2.1 billion, with Healthcare & Water up high single digits and diversified industrials down low single digits.
Operating EBITDA margin for Electronics was 31.9%, up 220 basis points, and for Industrials was 24.4%, up 50 basis points.
Operating EBITDA was $859 million, up 8% year-over-year, with a margin of 26.4%, an increase of 120 basis points.
Cash at quarter end was $137 million with total debt of approximately $1 billion; leverage ratio was approximately 1.7x including Sigma & Omega acquisition.
Consolidated segment income grew by $18 million or 15.5% to $136 million, with segment margin increasing by 110 basis points.
Detection & Measurement segment revenues increased 21% year-over-year, with 5.5% organic growth and 14.9% from the KTS acquisition; segment income grew 18% but margin declined 60 basis points.
HVAC segment revenues grew 5.7% year-over-year with 4.9% organic growth; segment income grew 14.5% with margin up 190 basis points.
Q2 adjusted EPS grew 16% year-over-year to $1.65.
Q2 adjusted free cash flow was approximately $37 million.
Segment backlog at quarter end was $540 million for HVAC (up 19.5% from Q1) and $365 million for Detection & Measurement (up 6% sequentially).
Total company revenues increased 10% year-over-year, driven by acquisitions and higher project sales in Detection & Measurement.
Adjusted gross margins expanded 260 basis points to 34.9%, marking the seventh consecutive quarter of sequential margin improvement.
FCD segment sales grew 7% driven by Mogas acquisition, but adjusted operating margins were 12.2%, negatively impacted by approximately 260 basis points due to fabricated modules and inventory write-offs.
Flowserve delivered second quarter revenue of $1.2 billion, representing 3% growth versus prior year, with adjusted operating margin of 14.6% and adjusted earnings per share of $0.91, a 25% increase year-over-year.
Incremental margins during the quarter were an impressive 94%, with adjusted operating income increasing 20% to $174 million.
Net debt to adjusted EBITDA ratio was 1.25x, the lowest in a decade, providing significant capital allocation flexibility.
Strong cash from operations of $154 million and free cash flow of $138 million were reported, with a free cash conversion ratio of 115%.
The FPD segment achieved adjusted operating margins of 20.3%, a 340 basis point increase year-over-year, driven by 80/20 program, productivity gains, and favorable mix.
Americas revenue increased 21% to $840 million, adjusted EBITDA increased 34% to $133 million driven by volume growth, category mix, and lower operating costs.
AMP reported 5% global shipments growth and 18% adjusted EBITDA growth in Q2 2025 versus prior year, ahead of guidance.
Europe revenue increased 9% to $615 million (4% constant currency), shipments grew 1%, but adjusted EBITDA decreased 3% to $77 million due to input cost headwinds.
Net leverage declined to 5.3x from prior year, liquidity position strong at $680 million with no near-term bond maturities.
North America shipments increased 8%, Brazil beverage can shipments increased 12%, outperforming the industry.
Adjusted earnings increased 39% and adjusted EBITDA rose 9%, with adjusted EBITDA margin improving over 400 basis points to 30.1%.
Adjusted gross margin improved by 600 basis points, leading to a 9% increase in adjusted gross profit.
A noncash goodwill impairment charge of $184 million was recorded for the APT segment due to shifts in customer order patterns and higher discount rates.
APT segment sales dropped 10% due to weaker customer demand influenced by tariff uncertainty and competitive pressures, resulting in EBITDA of about $1 million for the quarter.
Free cash flow improved, enabling a reduction in net leverage to 3x, a full turn improvement in less than a year.
Performance Chemicals sales declined about 10% due to repositioning and wet weather impacts, but segment EBITDA more than tripled year-over-year with margins approaching 20%.
Performance Materials delivered EBITDA margins above 50%, though sales declined 2% due to regional variances and tariff-related uncertainty.
Second quarter sales were $365 million, down 7% year-over-year primarily due to repositioning actions in Industrial Specialties, wet weather impacting Road Tech paving activity, and indirect tariff impacts on APT volumes in Europe.
Dafinchi