Eastern (EML) Q2 Revenue Tops Estimates, Gross Margin Declines

Eastern (EML) reported Q2 FY2025 results with adjusted earnings per share of $0.57, beating the $0.54 consensus estimate, and GAAP revenue of $70.2 million, ahead of the $68.87 million estimate. However, both metrics fell compared to the prior year due to ongoing weakness in core transportation and industrial end-markets. Gross margin declined by 2.1 percentage points to 23.3%. The company has been focusing on cost-control, portfolio actions, and product innovation to offset competitive pricing pressure and cyclical swings in core end-markets.

Palantir Technologies (NASDAQ: PLTR), a leading data analytics and artificial intelligence software company, reported its second quarter (Q2) FY2025 earnings on August 4, 2025, delivering impressive results that exceeded market expectations. The company's GAAP revenue surged 48.0% year-over-year to $1.00 billion, significantly outperforming the $937.7 million average analyst estimate. This remarkable growth was driven by a 93% year-over-year increase in U.S. commercial sales, which was bolstered by the accelerated adoption of the Artificial Intelligence Platform (AIP).

Key financial highlights include:
- Adjusted non-GAAP earnings per share (EPS) of $0.16, surpassing the $0.14 consensus estimate by $0.02.
- Adjusted free cash flow (non-GAAP) reached $569 million, a substantial improvement over the $149 million reported in Q2 2024.
- GAAP net income more than doubled year-over-year to $327 million.

Management attributed the strong performance to a record U.S. deal pipeline and robust cash generation. The company closed 157 deals of at least $1 million each, with an overall contract value booked of $2.27 billion, up 140% year-over-year. The number of customers also increased by 43% year-over-year and 10% sequentially.

However, international commercial revenue declined 5% year-over-year and 11% sequentially to $141 million, reflecting a slower pace of international expansion. The company's government business, on the other hand, continues to build momentum, with the Army contract expected to underpin revenues for years.

Palantir's management raised its 2025 guidance in response to the strong Q2 results. For Q3 2025, the company expects GAAP revenue between $1.083 billion and $1.087 billion, and the largest sequential quarterly revenue growth in its history. Full-year revenue guidance was increased to $4.142–$4.150 billion for FY2025. The company aims for U.S. commercial revenue in excess of $1.302 billion for FY2025, representing at least 85% growth.

Investors should closely monitor further customer expansion outside the U.S., trends in contract cancellations or deferrals, and the ongoing impact of stock-based compensation on per-share results as key variables for upcoming quarters.

References:
[1] https://www.nasdaq.com/articles/palantir-pltr-q2-revenue-surges-48
[2] https://investors.xometry.com/news-releases/news-release-details/xometry-reports-record-second-quarter-2025-results