The quarter beat the market’s standing forecast. Adjusted diluted EPS reached $2.32 versus published consensus of roughly $2.11, while sales were $920.6 million versus expectations near $905 million. That is a genuine beat, not merely year-over-year growth.
| Metric | Q2 2026 | Q2 2025 / expectation |
|---|---|---|
| Orders | $1,071.6M (Financial Highlights) | $829.8M; +29% reported (Financial Highlights) |
| Net sales | $920.6M; +6% reported, +5% organic (Financial Highlights) | ~$905M published consensus; $865.4M prior year |
| Adjusted diluted EPS | $2.32 (Adjusted EPS reconciliation) | ~$2.11 published consensus; $2.07 prior year |
| Adjusted EBITDA margin | 28.1%, up 70 bps (Adjusted EBITDA reconciliation) | 27.4% prior year |
| Q3 adjusted EPS outlook | $2.20–$2.25 (Outlook) | ~$2.19 published consensus |
The strongest underlying signal was demand, especially in Health & Science Technologies. Consolidated orders rose 29%, including 28% organically, and HST organic sales increased 12%, helped by AI-related data-center power demand, semiconductors, space and defense. HST adjusted EBITDA rose 26% and its margin expanded 270 basis points, making it the main driver of the upside (Segment results — HST).
The headline beat was partly helped by a temporary tariff benefit. IEEPA tariff refunds contributed $7.3 million to gross profit, $7.3 million to adjusted EBITDA and $0.08 to adjusted EPS; they also reduced reported sales by $14.7 million through customer rebates. The beat therefore remains meaningful, but roughly four cents of the $0.21 EPS surprise versus consensus was tied to this nonrecurring item (IEEPA Tariff Impacts).
Profitability improved broadly, but the portfolio was uneven. Consolidated adjusted gross margin expanded 110 basis points and free cash flow conversion improved to 103%. FMT was roughly stable, while FSDP sales fell 1% organically and its adjusted EBITDA margin declined 50 basis points, showing that the quarter’s strength was concentrated rather than uniform (Segment results; Free Cash Flow reconciliation).
The outlook moved above the prior market baseline. Management set Q3 adjusted EPS at $2.20–$2.25, slightly above published consensus, and raised full-year organic sales growth expectations to 5%–6% from 3%–4%. Together with the earnings beat and record orders, that shifts the read from a one-quarter upside surprise toward a broader improvement in expected growth, although the tariff contribution is not a repeatable operating tailwind.
Read the original 8-K on SEC EDGAR ↗