Ended the quarter with $19 million in cash and a net leverage ratio of 0.1x, with no outstanding borrowings under the revolving credit facility.
Government segment revenue was approximately $7 million, impacted by contract terminations but partially offset by reactivation of Dilley, Texas assets.
HFS and other segments delivered approximately $39 million in revenue, maintaining substantial asset utilization.
Recurring corporate expenses were approximately $10 million for the quarter.
Second quarter total revenue was approximately $62 million with adjusted EBITDA of approximately $4 million.
Strong cash flow from operations of over $15 million in the first half of 2025.
Total capital spending was approximately $6 million, focused on Government segment asset enhancements.
Workforce Hospitality Solutions segment generated approximately $15 million in revenue, primarily from construction activity.
C&I operating income margin was 5.6% compared to 0.4% last year, helped by absence of prior contingent compensation expense and better project margins.
C&I revenues were $394 million, up 6% year-over-year, driven primarily by fixed price contracts.
EBITDA was $56 million compared to negative $5 million in the prior year quarter.
Funded debt-to-EBITDA leverage ratio remained strong at 0.46x.
Gross margin improved to 11.5% from 4.9% in the prior year quarter, due to better productivity and favorable job closeouts, partially offset by labor and project inefficiencies.
Net income was $27 million versus a net loss of $15 million last year; diluted EPS was $1.70 versus negative $0.91.
Operating cash flow was $33 million, up from $23 million last year; free cash flow was $12 million versus $3 million last year.
Second quarter 2025 revenues were $900 million, an increase of $71 million or 8.6% compared to the same period last year.
SG&A expenses increased by $2 million to $63 million, mainly due to higher employee incentive compensation and support for growth.
T&D operating income margin was 8% compared to an operating loss margin of 1.8% last year.
T&D revenues were $506 million, up 10% year-over-year, with $305 million from Transmission and $201 million from Distribution.
Total backlog as of June 30, 2025, was $2.64 billion, 4% higher than a year ago, with $927 million in T&D and $1.72 billion in C&I.
Working capital was $251 million, funded debt $86 million, and borrowing availability $383 million as of June 30, 2025.
Cash from operations was $60 million, up 47%, with net debt at $204 million and credit availability of $515 million.
Corporate operating expenses increased to $15.7 million from $10.1 million, mainly due to higher post-retirement and stock compensation costs.
Dividends of $0.14 per share were paid, and $20 million of shares were repurchased during the quarter.
Environmental Solutions Group (ESG) net sales grew 18% to $481 million, operating income up 26%, and adjusted EBITDA margin improved by 150 basis points to 23.1%.
Federal Signal delivered 15% year-over-year net sales growth to $565 million in Q2 2025, with organic sales growth of 9%.
GAAP diluted EPS was $1.16, up 17%, and adjusted EPS was $1.17, up 23% year-over-year.
Gross margin improved by 60 basis points to 30%, and selling, engineering, general and administrative expenses decreased slightly as a percentage of sales.
Operating income increased 20% to $97.7 million, and adjusted EBITDA rose 21% to $118.2 million, with a margin expansion of 100 basis points to 20.9%.
Orders reached $540 million, a 14% increase, with backlog at $1.08 billion, slightly up from last year.
Safety and Security Systems Group (SSG) net sales increased 3% to $84 million, operating income up 17%, and adjusted EBITDA margin rose 320 basis points to 26.9%.
Adjusted EBITDA was $1.3 billion, up 1.8% year-over-year.
Adjusted operating expenses increased 28 basis points to 13.7% of sales due to investments in fleet, buildings, and sales headcount.
Adjusted operating income was $1.1 billion, up 1.1% year-over-year, with adjusted EPS growth of 6.5% to $1.48.
A noncash goodwill impairment charge of $92 million was recorded related to the guests worldwide business.
Gross profit grew 3.9% with 19 basis points of gross margin expansion, driven by strategic sourcing efforts.
International segment posted 3.6% top line growth reported and 8.3% excluding Mexico, with 4% local case growth and 20.1% adjusted operating income increase.
Local U.S. Foodservice case volume declined 1.5%, a 200 basis point improvement from Q3, with a 1% decline excluding an intentional business exit.
SYGMA segment sales grew 5.9% in Q4 and 8.3% for the year, with bottom line growth of 12.5%.
Sysco reported Q4 sales of $21.1 billion, up 2.8% on a reported basis and 3.7% excluding the divestiture of the Mexican business.
US Foodservice national sales volume grew 1.3%, with gross profit growing nearly 3x faster than volume due to customer optimization and contract provisions.
Dafinchi