Aftermarket operations accounted for approximately 63% of total gross profit with parts, service, and collision center revenues reaching $636.3 million, a 1.4% increase year-over-year.
Board of Directors approved a $0.19 per share cash dividend, a 1% increase over the prior quarterly dividend and the ninth increase since July 2018.
Medium-duty Class 4-7 commercial vehicle sales increased 1% year-over-year with 3,626 units sold in the U.S. and 177 units in Canada.
New Class 8 truck sales in the U.S. were 3,178 units, a 20% year-over-year decrease primarily due to timing of large fleet deliveries in the prior year.
Repurchased $83.9 million of common stock during the quarter and paid $14.5 million in cash dividends.
Rush Truck Leasing achieved record revenues of $93.1 million, up 6.3% year-over-year.
Second quarter revenues were $1.9 billion with net income of $72.4 million or $0.90 per diluted share.
Technician turnover reached a 12-month low and aftermarket revenues reached their highest level in the past 12 months.
Used commercial vehicle sales were flat year-over-year at 1,715 units.
Adjusted EBITDA declined 15% to $174 million, with adjusted EBITDA margin falling to 9.5% from 10.7% a year ago due to pricing and cost pressures as well as lower volumes.
Capital expenditures totaled $130 million, with $48 million in maintenance CapEx and $82 million in expansionary CapEx focused on capacity expansion, geographic growth, and automation.
Construction segment sales declined 4% to $552 million with a 6% decline in selling prices partially offset by a 2% increase in units; operating profits declined by $16 million.
Earnings per share for the quarter were $1.70.
Gross profits declined due to lower volumes, higher material and manufacturing costs, and operational challenges, especially in site-built and composite decking businesses.
Net sales for Q2 2025 were $1.8 billion, down 3.5% from $1.9 billion last year, driven by a 3% decline in units and a 1% decline in pricing with recent acquisitions providing a modest offset.
Operating cash flow was $113 million for the quarter, including a seasonal net working capital increase of $166 million expected to convert to cash by end of Q3.
Packaging segment sales declined 2% to $429 million with a 4% decrease in selling prices and 2% unit growth from acquisitions; operating profits declined by $3 million.
Retail segment sales declined 3% due to a 7% decline in unit sales offset by a 4% increase in price; operating profits declined by $6 million.
The company returned capital to shareholders through $42 million in dividends and $261 million in share repurchases.
Adjusted EBITDA grew 4% year-over-year to $313 million, with margin expanding 160 basis points to 38.5%.
Diluted earnings per share increased 8% to a quarterly record $2.29, supported by higher net income and lower diluted shares outstanding.
Gross profit increased $8 million to $402 million, driven by price increases partially offset by lower volumes and unfavorable material costs.
Net cash provided by operating activities was $184 million, up from $171 million, driven by lower working capital needs and higher gross profit, partially offset by acquisition expenses.
Net income rose $8 million to $195 million, helped by higher gross profit and unrealized mark-to-market gains, offset by $15 million acquisition-related expenses.
Net leverage ratio stood at 1.38x with $778 million cash and $745 million available credit, maintaining a flexible, covenant-light debt structure.
Second quarter 2025 net sales were $814 million, flat year-over-year, with a 47% increase in defense end market sales and record $142 million sales outside North America On-Highway, up 11%.
Adjusted earnings per share was $1.08, inclusive of a discrete tax benefit.
Adjusted EBITDA margin was 8.1%, down 260 basis points versus prior year, reflecting gross margin changes and growth investments.
Adjusted gross margin rate was 27.5%, down due to a 3-point impact from tariffs and lower volume, partially offset by supply chain efficiencies and price actions.
Adjusted segment margin for Tools & Outdoor was 8%, down 240 basis points due to tariffs, lower volume, and growth investments.
Engineered Fastening adjusted segment margin was 10.8%, down due to softness in automotive fasteners.
Engineered Fastening segment revenue was down 2% reported and 1% organically, with aerospace growing over 20% organically.
Second quarter 2025 revenue was $3.9 billion, down 2% versus the previous year and down 3% organically.
Second quarter free cash flow was $135 million, strong despite operational impacts from trade policies.
The quarter was impacted by a slow outdoor buying season and shipment disruptions related to tariffs.
Tools & Outdoor segment revenue was approximately $3.5 billion, down 2% year-over-year and 3% organically.
Adjusted operating income increased approximately 10% to $195 million with margin up 50 basis points to 17.9%, reflecting a 26% incremental margin.
Capital allocation included $57 million invested in growth and $169 million returned to shareholders via dividends and $127 million in share repurchases.
Gross profit dollars increased approximately 6% to $406 million with gross profit margin steady at 37.3%, down 30 basis points versus prior year.
Reported diluted EPS was $2.56; adjusted EPS increased 11% to $2.60, including $0.03 from favorable foreign exchange and $0.06 from share repurchases.
Savings actions and cost management offset lower volumes and an $8.5 million LIFO charge; year-to-date LIFO charges total approximately $10 million.
Second quarter sales increased 6.6% to $1.089 billion, driven by 5.2% higher price, 3% benefit from acquisitions, and 70 basis points from favorable foreign exchange translation, partially offset by 2.3% lower volumes.
Segment performance: Americas Welding sales up 7% with adjusted EBIT margin at 18.6%, International Welding sales down 2.5% with margin improving to 12.7%, and Harris Products Group sales up 19% with record margin of 19.4%.
SG&A expenses increased 1% primarily from acquisitions, with savings actions offsetting incremental employee costs including reinstated merit increases.
Year-to-date cash flow generation strong with over 100% free cash flow conversion and adjusted ROIC at 21.7%.
Cost per shipment increased 7.7% year-over-year but decreased 4% sequentially from the first quarter due to cost management and reduced headcount by 4.2%.
Diluted earnings per share were $2.67, down from $3.83 in the second quarter of the prior year.
Fuel surcharge revenue declined 5.8% and represented 14.6% of total revenue compared to 15.4% a year ago.
Operating ratio improved sequentially by 330 basis points to 87.8%, outperforming the historical average improvement of 250 to 300 basis points.
Revenue per shipment excluding fuel surcharge increased 2.7%, and including fuel surcharge increased 1.8% compared to the prior year.
Second quarter revenue was $817.1 million, a decrease of 0.7% year-over-year due to muted volume trends amid the macroeconomic landscape.
Shipments per workday declined 2.8% year-over-year, while tonnage per workday increased 1.1%, driven by a 4% increase in average weight per shipment.
Total operating expenses increased 4.7% year-over-year, driven by a 5% increase in salaries, wages, and benefits, and a 21.2% increase in claims and insurance expense.
Adjusted operating profit was $2.9 billion with an adjusted operating profit margin of 17.6%, both better than expectations despite tariff headwinds.
Adjusted profit per share was $4.72, down from $5.99 in the prior year, excluding restructuring costs of $0.10 per share.
Capital deployment included $1.5 billion returned to shareholders via share repurchases and dividends; net debt was $5.2 billion with enterprise cash balance of $5.4 billion.
Financial Products revenues increased 4% to approximately $1.0 billion with segment profit up 9% to $248 million.
ME&T free cash flow was about $2.4 billion, slightly lower than prior year due to higher CapEx spend.
Second quarter sales and revenues were $16.6 billion, down 1% year-over-year, primarily due to unfavorable price realization partially offset by higher sales volume and financial products revenue growth.
Segment performance: Construction Industries sales decreased 7% to $6.2 billion with a 20.1% margin; Resource Industries sales decreased 4% to $3.1 billion with a 17.4% margin; Energy & Transportation sales increased 7% to $7.8 billion with a 20.2% margin.
Dafinchi
