Adjusted EBITDA was $3.9 million, an improvement of $6.6 million year-over-year, reflecting strong operating leverage.
CapEx was $6.9 million, primarily software-related, with expected quarterly CapEx of approximately $7 million for the remainder of 2025.
Cash and cash equivalents and marketable securities totaled $226 million at quarter end, down $5 million from Q1 due to CapEx investments.
Completed convertible debt refinancing with $250 million of new 0.75% convertible notes due 2030, improving terms and reducing dilution risk.
Gross profit was $65.2 million with a record gross margin of 40.1%, marketplace gross margin reached 35.4%, up 190 basis points year-over-year.
Marketplace revenue was $148 million, up 26% year-over-year, while supplier services revenue was $14.3 million, declining slightly.
Q2 2025 revenue increased 23% year-over-year to $163 million, driven by strong marketplace growth.
U.S. segment adjusted EBITDA was $6.9 million with a 5.1% margin, improving $6.6 million year-over-year; International segment loss was $2.9 million, flat year-over-year.
Adjusted Q2 operating profit was $5 million, significantly down from prior year, excluding $15 million in severance and asset impairment costs.
Bolzoni revenues declined year-over-year due to phasing out lower-margin legacy products, but showed sequential revenue growth.
Lift Truck segment margins were negatively impacted by $10 million in tariff-driven material and freight cost increases.
Net debt improved year-over-year due to excess cash generation and debt reduction; liquidity remains strong with nearly $260 million unused borrowing capacity.
Operating cash flow improved to approximately $30 million in Q2, driven by working capital management and inventory reductions.
Q2 2025 revenues declined 19% year-over-year due to lower volumes and tariff-related economic uncertainty.
Tax expense was $200,000 in Q2 compared to $26 million prior year, influenced by lower pretax earnings and capitalization of R&D costs.
Earnings per share rose 28% year over year to $8.15, driven by higher sales, improved segment performance, and a $1.04 gain from the training services divestiture.
Free cash flow for the quarter was $637 million, with full-year guidance increased to $3.05 billion to $3.35 billion.
Northrop Grumman reported second-quarter 2025 sales of $10.4 billion, up 1% year over year and 9% sequentially from Q1, with all segments contributing to growth.
Organic sales were $10.3 billion, up 2% year over year, reflecting divestiture of training services.
Segment margins improved notably in Defense Systems (12.7%) and Mission Systems (14%), with Space Systems margin up 50 basis points despite lower sales volume.
Segment operating income increased 11% year over year, with a segment operating margin of 11.8%, up 100 basis points.
Dafinchi