LONDON and HERNE, Germany, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced that Apollo-managed funds ("Apollo Funds") have agreed to acquire a majority stake in Kelvion (or the "Company"), a leading global provider of energy efficient heat exchange and cooling solutions, from funds advised by Triton ("Triton"). Triton will maintain a minority interest in Kelvion. Founded and headquartered in Germany for over a century, Kelvion has established itself as a premier provider of thermal mana ...

Financial Data and Key Metrics Changes - Revenue for the second quarter increased by 18% to $43 million, up from $36.5 million in the same period last year [7] - Gross profit increased by 35%, with gross margin expanding by 320 basis points to 25.1% compared to 21.9% in the second quarter of last year [8] - Adjusted EBITDA increased by 41.9% to $6.1 million, translating to an adjusted EBITDA margin of 14%, up from 11.9% in the same period last year [8][22] - Net profit increased by 25% compared to 2024 and by 53% year over year in the first half of 2025 [21] Business Line Data and Key Metrics Changes - APU work revenue increased by 12% year over year, but saw a slight sequential decrease due to market volatility [11] - Revenue from trading and leasing tripled, showcasing operational flexibility amid modest MRO intake [12] - All strategic product lines grew double digits year over year, aligning with company expectations [25] Market Data and Key Metrics Changes - Long-term agreement value and backlog increased by $85 million to $524 million, reflecting new contract wins and customer base expansion [5][27] - The backlog for APU and landing gear segments grew to $204 million compared to $170 million at the end of 2025 [27] Company Strategy and Development Direction - The company aims to enhance value for strategic customers by expanding service offerings and exploring strategic acquisitions [14][52] - Focus on operational efficiencies and margin improvement continues, with ongoing initiatives to optimize cost structure and improve product mix [8][72] - The company is well-positioned to manage through macroeconomic challenges and is optimistic about long-term growth prospects [9][86] Management's Comments on Operating Environment and Future Outlook - Management noted that while the aviation sector faces macroeconomic and operational headwinds, the company is well-positioned to navigate these challenges [9] - There is cautious optimism regarding future demand for MRO work, particularly in the APU and landing gear segments [18] - Management emphasized the importance of maintaining operational flexibility to adapt to market dynamics [10][41] Other Important Information - The company completed a financing round of $45 million to strengthen its balance sheet and support growth initiatives [24] - Cash flow from operations was approximately $6.9 million, driven by better collections and improved payment terms [23] Q&A Session Summary Question: Can you discuss the MRO acceleration comments and where the reacceleration is happening? - Management indicated that the MRO market is experiencing a recovery after a period of reduced intake due to airlines managing cash flow by leveraging spare inventories [34][36] Question: What was the largest driver of cash flow in the quarter? - The company highlighted improved collections and tighter controls on inventory management as key drivers of positive cash flow [38][41] Question: How is the APU strategy progressing? - Management confirmed that the strategy is on track, with increasing market share and successful wins in smaller deals leading to larger opportunities [42][44] Question: Are there specific capabilities or products targeted for M&A? - The company aims to expand into more mechanical systems and components while remaining close to its existing capabilities [52] Question: What are the expectations for trading and leasing growth in the second half? - Management noted steady demand for leasing but acknowledged challenges in trading due to reduced teardown activity of old aircraft [64][66]