Mesa Labs reports Q2 EPS 63c vs (23c) last year

Reports Q2 revenue $57.833M, consensus $57.88M. “The business continued its positive momentum in 2Q25 with sequential growth in orders and reductions in inventory and debt levels. Despite solid sequential order growth, sequential total revenues growth contracted by 0.6% primarily due to an increase in past due backlog in SDC which we expect to reduce over the next two quarters. Year over year core organic growth contracted by 2.8% due to shipment timing in SDC as well as year over year headwinds in China which started to impact our CG division in 3Q24. Profitability in our preferred metric of AOI margin percentage excluding unusual items of 24.8% reflected our ongoing leverage of the Mesa Way, our Lean approach to process improvement and productivity growth. From a balance sheet perspective, solid profitability and another step up in inventory turns enabled us to repay $7,438 in debt during the second quarter which reduced our total Net Leverage Ratio* to 3.26. We remain committed to drive this ratio down below 3.0x” said Gary Owens, Chief Executive Officer of Mesa.