Total Revenue

6.6% (from $249.1M to $265.519M)

Total revenue increased by $16.419 million, driven by solid growth across segments—benefiting from previous trends of improving sales in both Aerospace & Defense and RF Test & Measurement—which built momentum from Q2 2024. This sustained improvement reflects ongoing market strength and effective execution on pricing and sales initiatives. " "

U.S. Revenue

5.8% (from $175.47M to $185.546M)

U.S. revenue grew by approximately $10.076 million as domestic sales continued their upward trend, leveraging improved product mixes and operational enhancements seen in the previous period, indicating strong market demand in the home market. " "

International Revenue

8.6% (from $73.66M to $79.973M)

International revenue increased by $6.313 million, outperforming domestic growth by building on historical success in overseas markets. The higher percentage increase reflects accelerated demand and effective market penetration abroad compared to the previous period. " "

Aerospace & Defense Segment

7.4% (from $114.7M to $123.369M)

A&D segment revenue rose by $8.669 million, benefiting from stronger commercial and Navy sales that built upon previous quarter strengths. This growth continues the trend observed in earlier periods, where strategic product mix and competitive order wins helped drive consistent performance. " "

RF Test & Measurement Segment

9.3% (from $47.1M to $51.383M)

The segment expanded by $4.283 million, with improvements in sales performance reflecting operational enhancements and proactive pricing adjustments. Building on previous period initiatives, this growth signifies deeper market adoption and efficient order fulfillment. " "

Net Earnings

33.7% (from $23,219K to $31,033K)

Net Earnings surged by $7,814K, a dramatic improvement fueled by higher sales and margin expansions that more than compensated for cost increases. This notable jump, compared to Q2 2024, reflects effective cost management and enhanced operational efficiency, continuing a positive trend from previous periods. " "

Operating Cash Flow

Over 129% increase (from $10,491K to $24,101K)

Operating Cash Flow more than doubled by $13,610K, primarily due to the significant rise in net earnings and better working capital management. This improvement indicates that underlying operational cash generation is robust and has built on previous period gains in efficiency and cost control. " "

Long-term Debt

Decrease of approximately 60% (from $171,000K to $68,000K)

Long-term debt was reduced by $103,000K, reflecting a strategic deleveraging effort enabled by improved cash flows and disciplined financial management. The marked reduction compared to Q2 2024 builds on prior initiatives to manage balance sheet leverage effectively. " "

Full-Year Adjusted EPS Guidance

FY 2025

$5.30–$5.50 per share "

None

no current guidance

Second Quarter Adjusted EPS Guidance

Q2 2025

$1.20–$1.30 per share "

None

no current guidance

Sales Growth Guidance for Fiscal 2025

FY 2025

6%–8% growth "

None

no current guidance

Adjusted EPS Growth Guidance for Fiscal 2025

FY 2025

16%–21% growth "

None

no current guidance

Commercial Aerospace Recovery

Q1 2025 earnings call described strong commercial growth driven by robust underlying demand despite high orders in prior periods. " "

Q2 2025 earnings call noted a slight moderation in orders—attributed to Boeing’s strike and tighter inventory management—but emphasized a substantial backlog and early signs of recovery. "

Stable with moderated order flow yet sustained long‐term confidence.

Test Segment Growth

Q1 2025 saw 40%+ order increases, broad-based growth across regions, and expanding orders in key areas. " "

Q2 2025 confirmed continued healthy order acceleration and very healthy backlogs across diverse end markets, with no additional mention of wireless challenges. "

Consistent strong performance with slight de‐emphasis on previous wireless concerns.

Wireless Market Challenges

Q1 2025 and Q4 2024 noted softness and cycle challenges with wireless markets, exacerbated by uncertainty in China. " "

Q2 2025 did not specifically mention wireless market challenges, indicating less focus or improved conditions. "

Reduced focus or improved sentiment relative to earlier challenges.

Utility Solutions

Earlier periods (Q3 and Q4 2024, Q1 2025) highlighted robust orders, healthy margins, and strong capital spending in the Utility Solutions segment. " " "

Q2 2025 reported another strong quarter with nearly 17% order growth and improved margins driven by Doble and sequential sales recovery at NRG. "

Continued robust performance with incremental strength and sustained customer capital investment.

Electrification Demand

Q1 2025 and Q4 2024 emphasized the role of broad-based energy demand drivers such as electric vehicles and data centers in boosting utility investments. " "

Q2 2025 reinforced favorable market conditions driven by increased electricity demand, aging infrastructure, and extreme weather, projecting a positive long-term outlook. "

Steady and positive, with growing recognition of infrastructure needs and energy demand.

Renewables Policy Impact

Q1 2025 mentioned softness in renewables due to tax incentive uncertainty, while Q4 2024 discussed challenges under the IRA but maintained a balanced view. " " "

Q2 2025 described improved sales performance and stronger order activity in renewables, anticipating a return to growth over time. "

Improved outlook with a rebound from earlier softness, though still subject to policy environment.

Navy Orders

Consistently in Q1, Q4, and Q3 2024, Navy orders were strong—with significant increases and record backlog levels in the Aerospace & Defense segment. " " "

Q2 2025 again highlighted solid growth in Navy orders, supported by prioritized submarine programs and a record backlog of $932 million. " "

Consistently strong order performance with sustained confidence in future Navy demand.

Backlog Conversion Timelines

Q1 2025 noted some delays owing to external factors; Q4 2024 and Q3 2024 provided context with typical conversion periods (e.g. around a year for commercial, longer for Navy). " " "

Q2 2025 emphasized a record backlog but noted good visibility into program milestones, indicating efficient conversion pathways. "

Stable with minor timing adjustments and improved visibility on conversion.

Acquisition Integration

Q3 and Q4 2024 described ongoing integration efforts with some regulatory uncertainties tied to the SM&P acquisition; Q1 2025 focused on pending UK regulatory approvals and strategic reviews. " " "

Q2 2025 reported smoother integration of the Maritime acquisition with integration costs excluded from guidance and no significant regulatory challenges mentioned. " "

Maturing integration process with reduced regulatory friction and clearer execution.

Regulatory Challenges

Earlier calls (Q3, Q4 2024, Q1 2025) stressed the uncertainties and delays—especially with UK regulatory reviews under national security considerations for acquisitions. " " "

Q2 2025 did not mention regulatory challenges, reflecting progress and possibly nearing regulatory approval milestones. " "

Improved regulatory clarity, suggesting these challenges are receding.

VACCO Business Uncertainty

Q3 2024 initiated a strategic review of the VACCO business; Q4 2024 discussed adjustments due to fixed‐price contract challenges, and Q1 2025 reiterated a review to decide on retention or sale. " " "

Q2 2025 continued to indicate uncertainty with the process ongoing and a decision expected by the end of May 2025. "

Persistent uncertainty with potential for high impact on future margins pending strategic resolution.

Space Segment Profitability

Q3 2024 and Q4 2024 highlighted profitability issues—with margins below segment averages and negative EPS impacts from the space business. " " "

Q1 2025 and Q2 2025 indicated improvement in managing challenges and recovery in performance, although margins remain lower compared to other Aerospace & Defense segments. " "

Gradual improvement but continued concern over lower margins, representing a key future risk.

Emerging Trends: AI

In Q1 2025, AI was cited as a factor indirectly driving energy demand along with broader infrastructure investments. "

In Q2 2025, executives stated there was no specific story related to AI, indicating it is no longer a focal point. "

Declining emphasis on AI, suggesting a shift away from it as a distinct narrative.

Emerging Trends: Reshoring

Q1 2025 mentioned reshoring as a driver of increased energy demand and asset upgrading. "

Q2 2025 continued to discuss reshoring, noting a recovery in China and its effect on electromagnetic compatibility markets. "

Consistent focus, now with more specific connections to product demand in EMC testing.

Emerging Trends: New Product Order Types

Earlier periods did not detail specific product order types under emerging trends; references were tied broadly to utility investments. "

Q2 2025 provided detailed insights into new order types such as EMP filters and magnet swaps in healthcare, highlighting higher-margin projects. "

Emerging as a new focus area with detailed, high-margin product orders driving the narrative.