Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 reached $91.3 million, reflecting a 41% increase year-over-year, while year-to-date adjusted EBITDA was $109.4 million, up 42% [4][20][25] - Q2 GAAP loss per share was $0.22 compared to GAAP earnings per share of $0.14 in the prior year quarter, while adjusted EPS for Q2 was $0.39, up from $0.25 [20][21] - Year-to-date GAAP earnings per share improved to $0.16 from a loss of $0.42 in the same period last year [21] Business Line Data and Key Metrics Changes - Fire Safety segment revenue for Q2 was $120.3 million, a 22% year-over-year increase, and year-to-date revenue was $157.4 million, up 27% [16] - Specialty Products segment Q2 net sales were $42.4 million, a 47% increase from the prior year, with year-to-date net sales reaching $77.2 million, up 23% [19] - Fire Safety's adjusted EBITDA for Q2 was $77.7 million, representing a 40% increase over last year, while Specialty Products adjusted EBITDA rose to $13.7 million from $9.3 million in the prior year [18][20] Market Data and Key Metrics Changes - U.S. wildfire activity was approximately normal in the first half of 2025, with expectations that the full season will not be exceptionally mild [18][34] - International operations, including Canada, Europe, the Middle East, and Asia Pacific, contributed positively to revenue growth due to severe conditions [17] Company Strategy and Development Direction - The company aims to provide high-quality products and exceptional service while delivering private equity-like returns with public market liquidity, focusing on three operational pillars: owning exceptional businesses, applying operational value drivers, and decentralized management [5][6][8] - Significant capital investment of nearly $62 million was made in Q2, including capital expenditures, share repurchases, and asset purchases to support the retardant business [4][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of Q2 performance, indicating that there were no one-time factors affecting results [50] - The company is committed to resolving operational challenges at the Saje plant and expects ongoing impacts until control is regained [58] Other Important Information - The company settled litigation with Compass Minerals for $20 million, which included the acquisition of surplus assets and the return of intellectual property [10][59] - Capital expenditures for Q2 were $12.8 million, with a focus on growth and productivity initiatives [24][26] Q&A Session Summary Question: What is the range of normal wildfire activity? - Management indicated that a normal fire season is roughly 6 million to 7 million acres burned in the contiguous U.S., excluding Alaska [32][34] Question: Is there an inverse relationship between revenue per acre burned and acres burned? - Management confirmed that large swings in acres can lead to muted changes in retardant usage due to resource availability and operational factors [38][40] Question: How has resource availability evolved? - Management noted that California has expanded its air tanker fleet, which improves resource availability, and emphasized the importance of contract structures to support resource availability [44][45] Question: How sustainable is the Q2 performance in Fire Safety? - Management stated that Q2 performance is sustainable and not driven by one-time factors [50] Question: What was the impact of the Saje plant outages on financial performance? - Management acknowledged significant impacts from ongoing operational issues at the Saje plant, which are expected to continue until control is regained [58]