Adjusted net income was $20 million, up 149%, and adjusted net income per diluted share was $0.97, up 106% compared to the prior year period.
Aviation adjusted EBITDA increased 48% to a record $47 million or 17.1% of revenue, while consolidated adjusted EBITDA rose 52% to $43 million or 16% of revenue.
Free cash flow improved by approximately $28 million versus Q2 2024, generating about $6 million in the quarter, supported by disciplined working capital management and record operating results.
The adjusted net leverage ratio was 2.2x following the sale of the fleet business and acquisition of Turbine Weld, providing significant financial flexibility.
VSE Corporation reported record revenue of $272 million in Q2 2025, a 41% increase year-over-year, driven by strong performance in aviation distribution and MRO businesses and contributions from recent acquisitions.
Aerojet Rocketdyne delivered its highest revenue quarter on record with a 2.0 book-to-bill.
Free cash flow was $574 million, driven by increased operating income and improved working capital performance.
L3Harris reported record $8.3 billion in orders for Q2 2025, resulting in a 1.5 book-to-bill ratio.
Non-GAAP EPS was $2.78, up 16% year-over-year; pension-adjusted EPS was $2.42, up 22% year-over-year.
Revenue was $5.4 billion, reflecting strong organic growth of 6%.
Segment operating margin was 15.9%, up 30 basis points, marking the seventh consecutive quarter of year-over-year margin expansion.
Segment results included CS revenue up 2% with 24.4% margin, IMS revenue up 6% organically with 13.2% margin, SAS revenue up 7% organically with 12.3% margin, and Aerojet Rocketdyne with 12% organic growth and 13.3% margin.
Dafinchi