Adjusted earnings per share increased by 41% to $2.69, and adjusted EBITDA rose 35% to $126 million.
Backlog totaled $2 billion, a 24% year-over-year increase, with E-Infrastructure backlog up 44%.
Building Solutions revenue declined 1% with adjusted operating income down 28%, impacted by housing market softness and affordability challenges.
Gross profit margin expanded by 400 basis points to 23.3%.
Operating cash flow was strong at $85 million for the quarter.
Sterling Infrastructure reported a 21% revenue growth in Q2 2025, driven by 29% growth in E-Infrastructure Solutions and 24% in Transportation segment.
Transportation Solutions backlog increased 5% year-over-year but declined 17% sequentially due to strong revenue burn and seasonal factors.
Combined adjusted EBITDA for Q2 2025 was $249.5 million, down from $273.6 million in Q2 2024.
Excluding DGD, Q2 2025 EBITDA was approximately $207 million versus $197 million in Q2 2024.
Feed Segment sales increased slightly to $936.5 million in Q2 2025 with improved EBITDA and stable volumes.
Food Segment sales rose to $386.1 million with stable gross margins at 26.9%.
Fuel Segment EBITDA declined to $61.3 million in Q2 2025 from $96.8 million in Q2 2024, reflecting challenges in the renewable fuel environment.
Gross margins improved to 23.3% in Q2 2025 from 22.5% in Q2 2024.
Leverage ratio improved to 3.34x at Q2 2025 from 3.93x at year-end 2024.
Net income was $12.7 million or $0.08 per diluted share in Q2 2025, down from $78.9 million or $0.49 per diluted share in Q2 2024.
Refinancing improved financial flexibility with a Eurobond upsized to EUR 750 million at 4.5% fixed rate and new credit facilities totaling $2.9 billion.
Total net sales for Q2 2025 were $1.48 billion, slightly up from $1.46 billion in Q2 2024.
Year-to-date combined adjusted EBITDA was $445.3 million compared to $553.7 million in 2024.
Year-to-date net loss was $13.5 million or negative $0.09 per diluted share.
Adjusted earnings per share increased 2% to $1.06.
Adjusted EBITDA margin was 14.9%, down 40 basis points year-over-year, reflecting temporary impacts from lower Performance Technologies volume and increased investments in Climate Solutions.
Climate Solutions segment saw a 10% improvement in adjusted EBITDA with a 20% adjusted EBITDA margin.
Data center sales grew 15% year-over-year, driven by North America growth.
Free cash flow was $200,000, lower than prior year due to higher inventory levels in Climate Solutions and $5 million cash payments related to restructuring and acquisition costs.
Gross margin declined 40 basis points to 24.2%, primarily due to lower sales and higher materials costs in Performance Technologies.
HVAC Technologies sales increased 34%, including $10 million revenue contribution from recent acquisitions AbsolutAire and L.B. White.
Leverage ratio remains strong at 1.0, with extended credit facility maturity and upside providing liquidity and flexibility.
Modine reported a 3% increase in total company sales for Q1 fiscal 2026, driven primarily by an 11% revenue increase in the Climate Solutions segment.
Net debt increased by $123 million to $403 million, related to acquisitions completed during the quarter.
Performance Technologies segment revenues declined 8%, with adjusted EBITDA down 14% and margin decreasing 100 basis points to 13.1%, impacted by lower sales volume and higher material costs.
Adjusted EBITDA was $67.2 million, up 1% year-over-year and up $30 million sequentially from Q1 2025, marking the second highest adjusted EBITDA quarter since the merger.
Adjusted EPS was $0.33 compared to $0.34 in the prior year period.
Consolidated net sales for Q2 2025 were $525 million, slightly up from $524 million in Q2 2024 and up 8% sequentially from Q1 2025.
Filtration & Advanced Materials (FAM) segment sales were $204 million, down 1% year-over-year, with adjusted EBITDA of $40 million, down just under $2 million.
Interest expense remained steady at just over $18 million, with over 80% of debt at fixed rates maturing between 2027 and 2029.
Net debt decreased by over $40 million sequentially to $995 million, with a net leverage ratio of 4.5x, providing about 1 full turn of headroom versus the 5.5x covenant.
Sustainable & Adhesive Solutions (SAS) segment sales were $321 million, up 5% organically and 1% reported year-over-year, with adjusted EBITDA of $45 million, down just under 2%.
Tax rate was unusually high at 417% due to valuation allowances and one-time tax adjustments.
Dafinchi