DONALDSON Co INC

Previous wording

The U.S. imposed tariffs on a wide range of imports, with the potential for further tariff actions, which resulted in retaliatory tariffs. These trade measures, along with updates to export controls and sanctions regimes, pose ongoing risks to global supply chains, potentially increasing the cost of goods, straining procurement cycles and impacting customer demand. On February 20, 2026, the United States Supreme Court issued a decision concluding that the International Emergency Economic Powers Act does not provide authority for the President to impose tariffs. Certain tariffs that affected us were imposed under this statute pursuant to presidential executive order. The extent and timing of any potential recoveries of tariffs previously paid remain subject to further legal interpretation and administrative processes. We will continue to monitor developments and will evaluate the effect of the ruling on future reporting periods as additional information becomes available. The Company is closely monitoring the evolving trade landscape, as well as its ability to mitigate the impact of tariffs and its analysis of the potential impact. The Company will continue to utilize its global manufacturing footprint and supply chain to mitigate the cost impact of tariffs.

Current wording

The U.S. imposed tariffs on a wide range of imports, with the potential for further tariff actions, which resulted in retaliatory tariffs. These trade measures, along with updates to export controls and sanctions regimes, pose ongoing risks to global supply chains, potentially increasing the cost of goods, straining procurement cycles and impacting customer demand. On February 20, 2026, the United States Supreme Court issued a decision concluding that the IEEPA does not provide authority for the President to impose tariffs. Certain tariffs that affected us were imposed under this statute pursuant to presidential executive order. On March 4, 2026, the Court of International Trade (CIT) ordered U.S. Customs and Border Protection (CBP) to begin the refund process for all importers who were subject to IEEPA duties. The situation continues to evolve, and further legislative, regulatory, or judicial developments may affect the ultimate outcome and the availability or timing of any refunds. As of April 30, 2026, we did not record an asset related to the potential refund. We will continue to evaluate new developments and would record a potential refund under a loss recovery model pursuant to ASC 410-30 if the requirements are met. We are closely monitoring the evolving trade landscape, as well as our ability to mitigate the impact of tariffs and our analysis of the potential impact. We will continue to utilize our global manufacturing footprint and supply chain to mitigate the cost impact of tariffs.

Previous wording

Any additional tariffs in the U.S. or retaliatory tariffs imposed by other governments could exacerbate the impact. Any new, substantial tariff increases on imports to the U.S. from Mexico, China and the European Union (EU) should they be implemented and sustained for an extended period of time, could have a significant adverse effect on the Company and its supply chain.

Current wording

Any additional tariffs in the U.S. or retaliatory tariffs imposed by other governments could exacerbate the impact. Any new, substantial tariff increases on imports to the U.S. from Mexico, China and the European Union (EU) should they be implemented and sustained for an extended period of time, could have a significant adverse effect on us and our supply chain.

Previous wording

Net sales for the three months ended January 31, 2026 increased $26.3 million, or 3.0%, from the three months ended January 31, 2025, reflecting higher sales in the Mobile Solutions segment of $9.1 million, or 1.6% growth, the Industrial Solutions segment of $6.0 million, or 2.4% growth, and the Life Sciences segment of $11.2 million, or 16.2% growth. Foreign currency translation increased net sales by $27.9 million compared to the three months ended January 31, 2025, reflecting an increase in the Mobile Solutions segment of $16.6 million, an increase in the Industrial Solutions segment of $6.9 million, and an increase in the Life Sciences segment of $4.4 million. During the three months ended January 31, 2026, the Company’s net sales increase was driven by favorable foreign currency impacts and pricing benefits, partially offset by volume decline.

Current wording

Net sales for the three months ended April 30, 2026 increased $55.0 million, or 5.8%, from the three months ended April 30, 2025, reflecting higher sales in the Mobile Solutions segment of $47.3 million, or 8.1% growth, and the Life Sciences segment of $9.3 million, or 12.7% growth, partially offset by lower sales in the Industrial Solutions segment of $1.6 million, or a 0.6% decline. Foreign currency translation increased net sales by $25.4 million compared to the three months ended April 30, 2025, reflecting an increase in the Mobile Solutions segment of $16.2 million, an increase in the Industrial Solutions segment of $5.7 million, and an increase in the Life Sciences segment of $3.5 million. During the three months ended April 30, 2026, the Company’s net sales increase was driven by favorable foreign currency impacts, net pricing benefits and volume growth.

Previous wording

Gross margin as a percentage of net sales for the three months ended January 31, 2026 was 33.5% compared with 35.2% for the three months ended January 31, 2025. The decrease in gross margin as a percentage of net sales was driven primarily by operational inefficiencies related to shifting Power Generation equipment production to a new point of manufacturing to support higher customer demand in Industrial Solutions and costs associated with footprint optimization efforts, partially offset by benefits from pricing actions.

Current wording

Gross margin as a percentage of net sales for the three months ended April 30, 2026 was 33.5% compared with 34.2% for the three months ended April 30, 2025. The decrease in gross margin as a percentage of net sales was driven primarily by $9.1 million of costs associated with footprint optimization efforts and operational inefficiencies related to shifting Power Generation equipment production to a new point of manufacturing to support customer-specific requirements in Industrial Solutions, partially offset by net pricing increases and favorable mix.

Previous wording

Selling, general and administrative expenses for the three months ended January 31, 2026 were $162.5 million, or 18.1% of net sales, compared with $159.2 million, or 18.3% of net sales, for the three months ended January 31, 2025, an increase of $3.3 million, or 2.1%. The decrease in selling, general and administrative expenses as a percentage of net sales was primarily due to ongoing disciplined expense management, partially offset by restructuring and other charges.

Current wording

Selling, general and administrative expenses for the three months ended April 30, 2026 were $158.9 million, or 16.0% of net sales, compared with $152.3 million, or 16.2% of net sales, for the three months ended April 30, 2025, an increase of $6.6 million, or 4.3%. The decrease in selling, general and administrative expenses as a percentage of net sales was primarily due to leverage on higher sales and continued disciplined expense management. Additionally, the three months ended April 30, 2025 included a $6.2 million benefit from the reduction of the Purilogics’ contingent consideration liability, which represents the fair value based on the probability of achieving certain milestones, which did not repeat in the three months ended April 30, 2026.

Previous wording

Research and development expenses for the three months ended January 31, 2026 were $18.6 million, or 2.2% of net sales, compared with $21.2 million, or 2.4% of net sales, for the three months ended January 31, 2025, a decrease of $2.6 million, or 11.7%, driven by focused project prioritization.

Current wording

Research and development expenses for the three months ended April 30, 2026 were $19.2 million, or 2.0% of net sales, compared with $21.4 million, or 2.3% of net sales, for the three months ended April 30, 2025, a decrease of $2.2 million, or 10.2%, driven by focused project prioritization.

Previous wording

Interest expense for the six months ended January 31, 2026 was $14.8 million, compared with $11.4 million for the six months ended January 31, 2025, an increase of $3.4 million, or 30.4%. The increase reflected a combination of higher proportion of variable interest rate debt and higher overall level of debt.

Current wording

Interest expense for the three months ended April 30, 2026 was $6.5 million, compared with $5.7 million for the three months ended April 30, 2025, an increase of $0.8 million, or 13.3%. The increase reflected a higher average level of debt for the three months ended April 30, 2026 compared to the prior year.

Previous wording

Other income, net for the three months ended January 31, 2026 was $5.6 million, compared with other income, net of $5.4 million for the three months ended January 31, 2025, an increase of $0.2 million, which was relatively consistent with the prior year.

Current wording

Other income, net for the three months ended April 30, 2026 was $6.0 million, compared with other income, net of $5.3 million for the three months ended April 30, 2025, an increase of $0.7 million, driven by higher earnings from equity investments.

Previous wording

Net sales for the six months ended January 31, 2026 increased $61.6 million, or 3.5%, from the six months ended January 31, 2025, reflecting higher sales in the Mobile Solutions segment of $35.0 million, or 3.1% growth, the Industrial Solutions segment of $6.2 million, or 1.2% growth, and the Life Sciences segment of $20.4 million, or 14.6% growth. Foreign currency translation increased net sales by $39.8 million compared to the six months ended January 31, 2025, reflecting an increase in the Mobile Solutions segment of $23.3 million, an increase in the Industrial Solutions segment of $9.9 million, and an increase in the Life Sciences segment of $6.6 million. During the six months ended January 31, 2026, the Company’s net sales increased due to favorable foreign currency impacts and pricing benefits, partially offset by volume decline.

Current wording

Net sales for the nine months ended April 30, 2026 increased $116.6 million, or 4.3%, from the nine months ended April 30, 2025, reflecting higher sales in the Mobile Solutions segment of $82.2 million, or 4.8% growth, the Life Sciences segment of $29.8 million, or 14.0% growth, and the Industrial Solutions segment of $4.6 million, or 0.6% growth. Foreign currency translation increased net sales by $65.2 million compared to the nine months ended April 30, 2025, reflecting an increase in the Mobile Solutions segment of $39.5 million, an increase in the Industrial Solutions segment of $15.6 million, and an increase in the Life Sciences segment of $10.1 million. During the nine months ended April 30, 2026, the Company’s net sales primarily increased due to favorable foreign currency impacts and net pricing benefits.

Previous wording

Gross margin as a percentage of net sales for the six months ended January 31, 2026 was 34.3% compared with 35.3% for the six months ended January 31, 2025. The decrease in gross margin as a percentage of net sales was driven primarily by operational inefficiencies related to shifting Power Generation equipment production to a new point of manufacturing to support higher customer demand in Industrial Solutions and costs associated with footprint optimization efforts, partially offset by benefits from pricing actions.

Current wording

Gross margin as a percentage of net sales for the nine months ended April 30, 2026 was 34.0% compared with 35.0% for the nine months ended April 30, 2025. The decrease in gross margin as a percentage of net sales was driven primarily by operational inefficiencies related to shifting Power Generation equipment production to a new point of manufacturing to support customer-specific requirements in Industrial Solutions and costs associated with footprint optimization efforts, partially offset by favorable net pricing.

Previous wording

Selling, general and administrative expenses for the six months ended January 31, 2026 were $332.1 million, or 18.1% of net sales, compared with $325.3 million, or 18.4% of net sales, for the six months ended January 31, 2025, an increase of $6.8 million, or 2.1%. The decrease in selling, general and administrative expenses as a percentage of net sales was primarily due to ongoing disciplined expense management and leverage on higher sales.

Current wording

Selling, general and administrative expenses for the nine months ended April 30, 2026 were $491.0 million, or 17.4% of net sales, compared with $477.6 million, or 17.6% of net sales, for the nine months ended April 30, 2025, an increase of $13.4 million, or 2.8%. The decrease in selling, general and administrative expenses as a percentage of net sales was primarily due to ongoing disciplined expense management and leverage on higher sales. Additionally, the nine months ended April 30, 2025 included a $6.2 million benefit from the reduction of the Purilogics’ contingent consideration liability, which represents the fair value based on the probability of achieving certain milestones, which did not repeat in the nine months ended April 30, 2026.

Previous wording

Gain on sale of fixed assets for the six months ended January 31, 2026 was $9.3 million, or 0.5% of net sales, compared to no gain on sale of fixed assets for the six months ended January 31, 2025. The gain on sale of fixed assets was driven by the sale of land and a building associated with footprint optimization initiatives.

Current wording

Gain on sale of fixed assets for the nine months ended April 30, 2026 was $9.3 million, or 0.3% of net sales, compared to $1.2 million, or 0.1% of net sales, for the nine months ended April 30, 2025. The increase in gain on sale of fixed assets was driven by the sale of land and a building associated with footprint optimization initiatives.

Previous wording

Research and development expenses for the six months ended January 31, 2026 were $37.8 million, or 2.1% of net sales, compared with $43.9 million, or 2.5% of net sales, for the six months ended January 31, 2025, a decrease of $6.1 million, or 13.7%, driven by focused project prioritization.

Current wording

Research and development expenses for the nine months ended April 30, 2026 were $57.0 million, or 2.0% of net sales, compared with $65.3 million, or 2.4% of net sales, for the nine months ended April 30, 2025, a decrease of $8.3 million, or 12.6%, driven by focused project prioritization.

Previous wording

Interest expense for the three months ended January 31, 2026 was $7.7 million, compared with $5.9 million for the three months ended January 31, 2025, an increase of $1.8 million, or 29.0%. The increase reflected a combination of higher proportion of variable interest rate debt and higher overall level of debt.

Current wording

Interest expense for the nine months ended April 30, 2026 was $21.3 million, compared with $17.1 million for the nine months ended April 30, 2025, an increase of $4.2 million, or 24.6%. The increase reflected a combination of a higher proportion of variable interest rate debt and a higher overall level of debt.

Previous wording

Other income, net for the six months ended January 31, 2026 was $10.9 million, compared with other income, net of $10.6 million for the six months ended January 31, 2025, an increase of $0.3 million, which was relatively consistent with the prior year.

Current wording

Other income, net for the nine months ended April 30, 2026 was $16.9 million, compared with other income, net of $15.9 million for the nine months ended April 30, 2025, an increase of $1.0 million, driven by higher earnings from equity investments.

Previous wording

The effective tax rate was 20.7% and 23.2% for the three months ended January 31, 2026 and 2025, respectively. The lower effective tax rate was primarily due to an increase in excess tax benefits on stock-based compensation.

Current wording

The effective tax rate was 22.5% and 26.2% for the nine months ended April 30, 2026 and 2025, respectively. The lower effective tax rate was primarily due to the tax impact resulting from the loss on impairment of intangible assets in the nine months ended April 30, 2025. Excluding the prior year impact of the loss on impairment of intangible assets, the effective tax rate is lower primarily due to an increase in excess tax benefits on stock-based compensation.

Previous wording

Net sales of Aftermarket increased $5.1 million primarily driven by higher vehicle utilization rates in EMEA and APAC. Net sales of Off-Road increased $6.3 million, reflecting a modest rebound following declines in the prior year. Net sales of On-Road decreased $2.3 million primarily due to a continuing decline in global truck production.

Current wording

Net sales of Aftermarket increased $37.5 million, primarily driven by higher vehicle utilization rates in all regions. Net sales of Off-Road increased $8.4 million reflecting improved market conditions, particularly in construction, following declines in the prior year. Net sales of On-Road increased $1.4 million from higher truck production, primarily in EMEA.

Previous wording

Net sales of Aftermarket increased $34.2 million due to market share gains and higher vehicle utilization rates, primarily in EMEA and APAC. Net sales of Off-Road increased $11.8 million, reflecting a modest rebound following declines in the prior year. Net sales of On-Road decreased $11.0 million primarily due to a continuing decline in global truck production.

Current wording

Net sales of Aftermarket increased $71.6 million due to market share gains and higher vehicle utilization rates in all regions. Net sales of Off-Road increased $20.2 million, reflecting a modest rebound following declines in the prior year. Net sales of On-Road decreased $9.6 million primarily due to a continuing decline in global truck production.

Previous wording

Net sales of IFS increased $18.4 million, driven by First Fit project timing and strong Aftermarket demand in Power Generation, as well as strong global demand in Industrial Gases. Net sales of Aerospace and Defense decreased by $12.2 million primarily due to project timing.

Current wording

Net sales of IFS increased $5.3 million, driven by net pricing benefits and Power Generation new equipment sales, partially offset by volume declines in Industrial Gases and dust collection. Net sales of Aerospace and Defense decreased by $6.9 million primarily due to ongoing supply chain constraints and project timing.

Previous wording

Earnings before income taxes for the Industrial Solutions segment for the three months ended January 31, 2026 were $31.0 million, or 11.9% of net sales, a decrease from 16.1% of net sales for the three months ended January 31, 2025. The decrease was driven primarily by operational inefficiencies related to shifting Power Generation equipment production to a new point of manufacturing to support higher customer demand and costs associated with footprint optimization efforts, as well as unfavorable mix in business unit sales.

Current wording

Earnings before income taxes for the Industrial Solutions segment for the three months ended April 30, 2026 were $37.7 million, or 13.4% of net sales, a decrease from 18.1% of net sales for the three months ended April 30, 2025. The decrease was driven primarily by operational inefficiencies related to shifting Power Generation equipment production to a new point of manufacturing to support customer-specific requirements, as well as unfavorable mix in business unit sales.

Previous wording

Net sales of IFS increased $15.1 million, driven by First Fit project timing and strong Aftermarket demand in Power Generation, as well as strong global demand in Industrial Gases. Net sales of Aerospace and Defense decreased by $9.1 million primarily due to project timing.

Current wording

Net sales of IFS increased $23.6 million, driven by net pricing benefits, as well as First Fit project timing in Power Generation. Net sales of Aerospace and Defense decreased by $19.0 million primarily due to project timing.

Previous wording

Earnings before income taxes for the Industrial Solutions segment for the six months ended January 31, 2026 were $63.2 million, or 12.2% of net sales, a decrease from 16.0% of net sales for the six months ended January 31, 2025 driven primarily by operational inefficiencies related to shifting Power Generation equipment production to a new point of manufacturing to support higher customer demand, costs associated with footprint optimization efforts and unfavorable mix in business unit sales.

Current wording

Earnings before income taxes for the Industrial Solutions segment for the nine months ended April 30, 2026 were $100.9 million, or 12.6% of net sales, a decrease from 16.8% of net sales for the nine months ended April 30, 2025. The decrease was driven primarily by operational inefficiencies related to shifting Power Generation equipment production to a new point of manufacturing to support customer-specific requirements and unfavorable mix in business unit sales.

Previous wording

Net sales for the Life Sciences segment for the three months ended January 31, 2026 were $80.0 million, compared with $68.8 million for the three months ended January 31, 2025, an increase of $11.2 million, or 16.2%. Foreign currency translation favorably impacted net sales for the Life Sciences segment by 6.4%. The increase in net sales was driven by strong global sales in Food and Beverage and Disk Drive.

Current wording

Net sales for the Life Sciences segment for the three months ended April 30, 2026 were $83.5 million, compared with $74.2 million for the three months ended April 30, 2025, an increase of $9.3 million, or 12.7%. Foreign currency translation favorably impacted net sales for the Life Sciences segment by 4.8%. The increase in net sales was driven by strong global sales in Food and Beverage and Disk Drive.

Previous wording

Earnings before income taxes for the Life Sciences segment for the six months ended January 31, 2026 were $14.7 million, or 9.2% of net sales, an improvement from losses before income taxes of $5.8 million, or 4.2% of net sales, for the six months ended January 31, 2025. The improvement was driven by leverage on higher volume and benefits from restructuring activities that occurred during fiscal 2025.

Current wording

Earnings before income taxes for the Life Sciences segment for the three months ended April 30, 2026 were $6.8 million, or 8.1% of net sales, an increase from earnings before income taxes of $5.8 million, or 7.8% of net sales, for the three months ended April 30, 2025. The improvement was driven by leverage from higher volume and favorable product mix. Additionally, the three months ended April 30, 2025 included a $6.2 million benefit, an impact of 8.3% on fiscal 2025 quarter-to-date profitability, from the reduction of the Purilogics’ contingent consideration liability, which represents the fair value based on the probability of achieving certain milestones.

Previous wording

Net sales for the Life Sciences segment for the six months ended January 31, 2026 were $159.3 million, compared with $138.9 million for the six months ended January 31, 2025, an increase of $20.4 million, or 14.6%. Foreign currency translation favorably impacted net sales for the Life Sciences segment by 4.8%. The increase in net sales was driven by strong global sales in Food and Beverage and Disk Drive.

Current wording

Net sales for the Life Sciences segment for the nine months ended April 30, 2026 were $242.8 million, compared with $213.0 million for the nine months ended April 30, 2025, an increase of $29.8 million, or 14.0%. Foreign currency translation favorably impacted net sales for the Life Sciences segment by 4.8%. The increase in net sales was driven by strong global sales in Food and Beverage and Disk Drive.

Previous wording

Earnings before income taxes for the Life Sciences segment for the three months ended January 31, 2026 were $7.4 million, or 9.3% of net sales, an increase from losses before income taxes of $0.5 million, or 0.7% of net sales, for the three months ended January 31, 2025. The improvement was driven by leverage from higher volume and disciplined expense management.

Current wording

Earnings before income taxes for the Life Sciences segment for the nine months ended April 30, 2026 were $21.5 million, or 8.9% of net sales, an improvement from no earnings or losses before income taxes for the nine months ended April 30, 2025. The improvement was driven by leverage from higher volume and favorable product mix.

Previous wording

Cash provided by operating activities for the six months ended January 31, 2026 was $158.4 million, compared with $163.3 million for the six months ended January 31, 2025, a decrease of $4.9 million. The decrease in cash provided by operating activities was primarily driven by higher income taxes paid in the current fiscal year, partially offset by higher earnings.

Current wording

Cash provided by operating activities for the nine months ended April 30, 2026 was $293.8 million, compared with $251.0 million for the nine months ended April 30, 2025, an increase of $42.8 million. The increase in cash provided by operating activities was primarily driven by higher earnings and working capital management improvement.

Previous wording

Cash used in investing activities for the six months ended January 31, 2026 was $18.4 million, compared with $115.1 million for the six months ended January 31, 2025, a decrease of $96.7 million. The decrease in cash used in investing activities was primarily due to the $71.2 million equity method investment in Medica during the six months ended January 31, 2025, as well as $10.8 million received from the sale of property, plant and equipment in the first six months ended January 31, 2026.

Current wording

Cash used in investing activities for the nine months ended April 30, 2026 was $42.2 million, compared with $129.8 million for the nine months ended April 30, 2025, a decrease of $87.6 million. The decrease in cash used in investing activities was primarily due to the $71.2 million equity method investment in Medica during the nine months ended April 30, 2025.

Previous wording

Cash used in financing activities generally relates to the use of cash for payment of dividends and repurchases of the Company’s common stock, net of borrowing activity and proceeds from the exercise of stock options. Cash used in financing activities for the six months ended January 31, 2026 was $131.5 million, compared with cash used in financing activities of $88.5 million for the six months ended January 31, 2025, an increase of $43.0 million. The increase in cash used in financing activities was primarily driven by a decrease in short-term borrowings of $41.8 million and an increase in the repurchases of the Company’s common stock of $29.6 million, partially offset by an increase of $26.3 million in exercise of stock options.

Current wording

Cash used in financing activities generally relates to the use of cash for payment of dividends and repurchases of the Company’s common stock, net of borrowing activity and proceeds from the exercise of stock options. Cash used in financing activities for the nine months ended April 30, 2026 was $232.3 million, compared with cash used in financing activities of $175.4 million for the nine months ended April 30, 2025, an increase of $56.9 million. The increase in cash used in financing activities was primarily driven by a net $61.9 million reduction of debt in the nine months ended April 30, 2026 compared to a $179.1 million net increase in debt in the nine months ended April 30, 2025. This was partially offset by lower repurchases of the Company’s common stock of $161.0 million, as well as $28.5 million more proceeds from the exercise of stock options.

Previous wording

To determine the level of dividend and share repurchases, the Company considers recent and projected performance across key financial metrics, including earnings, cash flow from operations and total debt. Dividends paid for the six months ended January 31, 2026 and 2025 were $69.3 million and $64.6 million, respectively. Share repurchases for the six months ended January 31, 2026 and 2025 were $111.2 million and $81.6 million, respectively.

Current wording

To determine the level of dividend and share repurchases, the Company considers recent and projected performance across key financial metrics, including earnings, cash flow from operations and total debt. Dividends paid for the nine months ended April 30, 2026 and 2025 were $104.0 million and $96.9 million, respectively. Share repurchases for the nine months ended April 30, 2026 and 2025 were $111.2 million and $272.2 million, respectively.

Previous wording

Additional sources of liquidity are existing cash and available credit facilities. Cash and cash equivalents as of January 31, 2026 was $194.4 million, compared with $180.4 million as of July 31, 2025. The Company has capacity of $755.3 million available for further borrowing under existing credit facilities as of January 31, 2026.

Current wording

Additional sources of liquidity are existing cash and available credit facilities. Cash and cash equivalents as of April 30, 2026 was $204.1 million, compared with $180.4 million as of July 31, 2025. The Company has capacity of $1,222.1 million available for further borrowing under existing credit facilities as of April 30, 2026.

Previous wording

As of January 31, 2026, total debt, including short-term borrowings and long-term debt, represented 30.2% of total capitalization, defined as total debt plus total stockholders’ equity, compared with 31.5% as of July 31, 2025. As of January 31, 2026, the Company was in compliance with its financial covenants.

Current wording

As of April 30, 2026, total debt, including short-term borrowings and long-term debt, represented 26.4% of total capitalization, defined as total debt plus total stockholders’ equity, compared with 31.5% as of July 31, 2025. As of April 30, 2026, the Company was in compliance with its financial covenants.

Previous wording

Long-term debt outstanding was $680.8 million as of January 31, 2026, compared with $637.1 million as of July 31, 2025, an increase of $43.7 million, primarily due to share repurchases during the six months ended January 31, 2026. As of January 31, 2026, there was $491.6 million available and $100.0 million outstanding on the Company’s $600.0 million unsecured revolving credit facility that expires on June 12, 2030. We expect to finance the Facet acquisition with a combination of cash on hand and proceeds from new debt.

Current wording

Long-term debt outstanding was $598.0 million as of April 30, 2026, compared with $637.1 million as of July 31, 2025, a decrease of $39.1 million, primarily due to limited share repurchases in preparation for the funding of the acquisition of Facet during the nine months ended April 30, 2026. As of April 30, 2026, there was $571.6 million available and $20.0 million outstanding on the Company’s $600.0 million unsecured revolving credit facility that expires on June 12, 2030.