Target raised its 2025 revenue guidance to $310-$320 million and adjusted EBITDA to $50-$60 million, reflecting strong momentum from new contracts and project expansions.
The company ended the quarter with $19 million in cash, a net leverage ratio of 0.1x, and over $190 million in liquidity, supporting ongoing growth initiatives.
Management emphasized that the robust growth pipeline, driven by domestic investment and government demand, positions Target well for continued expansion and shareholder value creation.
Adjusted earnings per share rose 25% to $1.60 in Q3 2025.
Adjusted EBIT margins increased from 19.3% to 21.1% year-over-year in Q3, driven by favorable price, mix, and leverage effects.
ESCO Technologies reported strong Q3 2025 financial results with reported sales growth of nearly 27% and organic sales growth of 11%, excluding the Maritime acquisition impact.
Test segment delivered 21% sales growth in Q3 and 15.4% adjusted EBIT growth, though margins declined slightly due to mix and tariff impacts.
The Aerospace & Defense segment showed 56% reported sales growth and 14% organic growth, with a 560 basis point margin increase and record backlog of $832 million.
Utility Solutions Group had flattish sales growth of 2% but strong order growth of 5.5%, with some margin pressure due to timing issues at Doble.
Year-to-date results show double-digit adjusted EBIT margin improvement and over 24% adjusted EPS growth.
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