Closings volume increased 4% year-over-year, with spec sales penetration rising to 65% in Q2 from 58% in Q1 and 59% a year ago.
Delivered 3,340 homes at an average price of $589,000, generating $2 billion in home closings revenue with an adjusted home closings gross margin of 23%.
Financial services revenue increased to $53 million with a gross margin of 51.1%, up from $49 million and 42.5% a year ago.
Home closings gross margin was 22.3% in Q2; adjusted margin was 23%, in line with guidance.
Liquidity stood at approximately $1.1 billion with net homebuilding debt to capitalization ratio at 22.9%.
Reported net income of $194 million or $1.92 per diluted share, adjusted net income of $204 million or $2.02 per diluted share, both up year-over-year.
Repurchased 1.7 million shares for $100 million in Q2; targeting at least $350 million in total share repurchases for 2025.
SG&A expense ratio improved by 90 basis points year-over-year to 9.3% of home closings revenue.
Comparable earnings per share from continuing operations were $3.32 in the second quarter, up 11% from $3 in the prior year.
Dedicated operating revenue decreased 3% due to lower fleet count, but earnings before tax (EBT) increased 1% due to acquisition synergies and prior year integration cost benefits.
Fleet Management Solutions operating revenue increased 1%, driven by ChoiceLease revenue up 2%, but pretax earnings declined due to weaker freight market conditions and increased used vehicle wholesale volumes.
Operating revenue for the second quarter was $2.6 billion, up 2% year-over-year, primarily reflecting contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS).
Return on equity (ROE) was 17% for the trailing 12-month period, in line with expectations during a freight cycle downturn.
Ryder delivered its third consecutive quarter of double-digit earnings per share growth with second quarter results above expectations, driven by outperformance in the Supply Chain segment.
Supply Chain operating revenue increased 3%, with earnings up 16% reflecting new business, higher volumes, pricing, and operational improvements.
Used vehicle sales pricing declined 17% year-over-year for tractors and trucks, with increased wholesale volumes to manage aged inventory impacting results.
Year-to-date free cash flow increased to $461 million from $71 million in the prior year, reflecting lower working capital needs and reduced capital expenditures.
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.
Dafinchi