The quarter materially beat published expectations on both sales and EPS. Revenue reached $627.0 million versus a published consensus near $497 million, while diluted EPS was $0.68 versus roughly $0.52 expected. That is a substantial upside surprise, driven primarily by BASX backlog conversion and sharply higher production throughput.
| Metric | Q2 2026 | Q2 2025 | Versus expectation |
|---|---|---|---|
| Net sales | $627.0M (Income Statement) | $311.6M (Income Statement) | ~$497M consensus |
| Gross profit | $152.5M (Income Statement) | $82.7M (Income Statement) | — |
| Gross margin | 24.3% (Income Statement) | 26.6% (Income Statement) | — |
| Diluted EPS | $0.68 (Income Statement) | $0.19 (Income Statement) | ~$0.52 consensus |
| Adjusted EBITDA margin | 15.0% (Adjusted EBITDA reconciliation) | 14.9% (Adjusted EBITDA reconciliation) | — |
| Operating cash flow, six months | $55.0M (Cash Flow statement) | $(31.0)M (Cash Flow statement) | — |
BASX is now the main upside engine, not merely a favorable comparison. BASX revenue rose 220.7% year over year to $218.0 million, with gross margin expanding to 30.0% from 27.9% (Segment results — BASX). BASX-branded backlog still stood at $1.43 billion, up 185.4% year over year, supporting the argument that data-center demand and capacity expansion are driving a genuine step-up in the business rather than a one-quarter timing benefit (Backlog table; Segment results — BASX).
The trade-off is that management raised the sales outlook while cutting the margin outlook. Full-year sales-growth guidance moved to 55%-60% from 40%-45%, but gross-margin guidance fell to 25%-26% from 27%-28% (2026 outlook). The quarter's 24.3% consolidated margin was pressured by Memphis start-up costs, outsourcing, freight, inflation, and price-cost timing (Financial Highlights). In other words, demand is running well ahead of prior assumptions, but the economics of fulfilling that demand are temporarily weaker than previously expected.
Cash generation improved, but the expansion remains capital- and balance-sheet-intensive. Six-month operating cash flow turned positive at $55.0 million versus a $31.0 million use of cash a year earlier, yet capital expenditures consumed $97.3 million and long-term debt increased to $435.0 million from $398.3 million at year-end (Cash Flow statement; Balance Sheet). The filing therefore strengthens the growth and backlog case, while leaving margin conversion, utilization, and cash-flow productivity as the key proof points for the second half.
Read the original 8-K on SEC EDGAR ↗