Record Gross Margin and Profitability
Gross margin reached a record 33.2%, up 100 basis points sequentially and 330 basis points from a year ago, driven by a favorable mix, higher volumes, and continued improvement in operating discipline. Net income increased by 58% from Q1 and nearly fivefold year-over-year.
Strong Cash Flow and Debt Reduction
Generated $24.5 million in operating cash during the quarter, which enabled further debt reduction. Lowered net debt by $35.8 million year-to-date, bringing the leverage ratio down to 2.3x compared with 3x at the end of last year.
Aerospace and Defense Growth
Aerospace and Defense grew 13%, reflecting strong execution and a healthy pipeline of opportunities, contributing significantly to overall growth.
Revenue Growth and Market Diversification
Revenue for the second quarter was $139.6 million, a 3% increase year-over-year and up 5% sequentially, driven by continued strength in aerospace and defense, industrial markets, and medical applications.