Adjusted EBITDA reached a second quarter record of $1.8 billion, with a margin of nearly 46%.
Adjusted EPS was $10.47 for the quarter.
Fleet productivity increased by 3.3%, supported by disciplined execution.
Leverage remained at 1.8x, towards the lower end of the targeted range.
Rental CapEx was nearly $1.6 billion in the quarter, consistent with expectations.
Returned $534 million to shareholders in the quarter through share buybacks and dividends, with a full-year target of nearly $2.4 billion returned.
Specialty rental revenue grew 14% year-over-year, with 21 cold starts opened in Q2 and a target of at least 50 for the year.
Total rental revenue grew by 4.5% year-over-year to $3.9 billion in Q2, with rental revenue up 6.2% to $3.4 billion, both second quarter records.
Used equipment sales totaled $600 million, in line with expectations, with a full-year target of approximately $2.8 billion of fleet sales.
Year-to-date free cash flow was $1.2 billion, with full-year guidance raised to $2.4 billion to $2.6 billion, including benefits from recent federal tax policy changes.
Adjusted EPS grew nearly 30% year-over-year, with GAAP EPS at $0.27 and adjusted EPS at $0.40.
Aramark reported record revenue of $4.6 billion in Q3, a 6% increase year-over-year with slight FX favorability and over 5% organic growth driven by base business and new client wins.
International segment delivered double-digit organic revenue growth of 10%, led by the U.K., Chile, Canada, and Spain.
Medical expenses in the U.S. segment were about $15 million higher due to high-cost claims and prescription drug costs, impacting margins.
Operating Income was $183 million, up 13%, and Adjusted Operating Income was $230 million, up 19%, with AOI margin expanding by 60 basis points.
Profitability growth was driven by higher base business volume, supply chain efficiencies, and disciplined cost management.
U.S. Food & Support Services (FSS) segment organic revenue increased over 3%, led by workplace experience, education, sports & entertainment, and corrections sectors.
Adjusted EBITDA was $68 million, down $6 million year-over-year, impacted by higher operating costs including start-up expenses and maintenance timing.
Aerospace and high-strength conversion revenue declined 5% due to a 4% shipment decrease amid commercial aircraft supply chain destocking.
Automotive conversion revenue declined 4% on a 15% shipment decrease due to tariff-related uncertainties, partially offset by better pricing and mix.
Cash flow from operations was $16 million with capital expenditures of $44 million; free cash flow guidance revised down to $50 million to $70 million due to working capital impacts from metal pricing and tariffs.
General engineering conversion revenue rose 3% with a 5% shipment increase driven by reshoring and strong pricing.
Kaiser Aluminum delivered second quarter results exceeding expectations, with conversion revenue of $374 million, up 1% year-over-year.
Liquidity remains strong with $13 million cash and $525 million borrowing availability; net debt leverage ratio increased to 4.2x from 3.9x.
Net income was $23 million or $1.41 per diluted share; adjusted net income was $20 million or $1.21 per diluted share, down from prior year adjusted net income of $27 million.
Packaging conversion revenue increased 9% year-over-year on improved product mix despite a 3% shipment decline due to ramp-up of new roll coat line.
Reported operating income was $38 million, up $2 million from prior year, but adjusted operating income was down $7 million after excluding prior year non-run rate charges.
Dafinchi