DMC Global Inc.

Previous wording

DynaEnergetics designs, manufactures, markets, and sells perforating systems and associated hardware for the global oil and gas industry. These products are primarily sold to oilfield service companies in the U.S., Europe, Canada, Africa, the Middle East, and Asia. The market for perforating products, which are used during the well completion process, generally corresponds with oil and gas exploration and production activity. Well completion operations are increasingly complex, which in turn has increased the demand for intrinsically-safe, reliable and technically advanced perforating systems.

Current wording

DynaEnergetics designs, manufactures, markets, and sells perforating systems, detonators, and associated hardware primarily for the global oil and gas industry. These products are primarily sold to oilfield service companies in the U.S., Europe, Canada, Africa, the Middle East, and Asia. The market for perforating products, which are used during the well completion process, generally corresponds with oil and gas exploration and production activity. Well completion operations are increasingly complex, which in turn has increased the demand for intrinsically-safe, reliable and technically advanced perforating systems.

Previous wording

Cost of products sold for DynaEnergetics includes the cost of metals, explosives and other raw materials used to manufacture shaped charges, detonating products and perforating guns as well as employee compensation and benefits, depreciation of manufacturing facilities and equipment, supplies and other manufacturing overhead expenses.

Current wording

Cost of products sold for DynaEnergetics includes the cost of metals, explosives and other raw materials used to manufacture shaped charges, detonating products and perforating guns as well as employee compensation and benefits, manufacturing facility lease expense, depreciation of manufacturing facilities and equipment, supplies and other manufacturing overhead expenses.

Previous wording

Cost of products sold for NobelClad includes the cost of metals, explosive powders and other raw materials used to manufacture clad metal plates and transition joints as well as employee compensation and benefits, outside processing costs, depreciation of manufacturing facilities and equipment, manufacturing facility lease expense, supplies and other manufacturing overhead expenses.

Current wording

Cost of products sold for NobelClad includes the cost of metals, explosive powders and other raw materials used to manufacture clad metal plates and transition joints as well as employee compensation and benefits, outside processing costs, manufacturing facility lease expense, depreciation of manufacturing facilities and equipment, supplies and other manufacturing overhead expenses.

Previous wording

•Consolidated net sales were $156,953 in the second quarter of 2026 versus $155,487 in the second quarter of 2025, an increase of 1%. The increase was primarily attributable to higher sales at Arcadia Products, partially offset by lower sales at NobelClad, as described below.

Current wording

•Consolidated net sales were $172,825 in the third quarter of 2026 versus $151,532 in the third quarter of 2025, an increase of 14%. The increase was attributable to higher sales at Arcadia Products and NobelClad, partially offset by lower sales at DynaEnergetics, as described below.

Previous wording

•Arcadia Products reported net sales of $67,419 in the second quarter of 2026, representing an increase of 9% compared with the second quarter of 2025. The increase was primarily attributable to higher sales volumes in short-cycle commercial exterior and high-end residential markets as well as higher customer pricing in response to increases in raw material input costs.

Current wording

•Arcadia Products reported net sales of $76,886 in the third quarter of 2026, representing an increase of 25% compared with the third quarter of 2025. The increase was primarily attributable to higher sales volumes across all product lines.

Previous wording

•The Company’s leverage ratio, calculated in accordance with its credit facility, was 2.19x as of June 30, 2026 in comparison to the maximum ratio permitted of 3.0x. The Company’s adjusted leverage ratio, calculated using net debt, a non-GAAP measure, was 1.15x as of June 30, 2026.

Current wording

•The Company’s leverage ratio, calculated in accordance with its credit facility, was 1.41x as of September 30, 2026 in comparison to the maximum ratio permitted of 3.0x. The Company’s adjusted leverage ratio, calculated using net debt, a non-GAAP measure, was 0.39x as of September 30, 2026.

Previous wording

Conditions across our three manufacturing businesses continue to be impacted by macroeconomic and geopolitical developments, including the conflict in the Middle East, uncertainty in global oil and gas markets, elevated interest rates, and changes in global tariff policies. DynaEnergetics and NobelClad, which serve the upstream and downstream oil and gas markets, respectively, remain exposed to fluctuations in crude oil prices. If we or our customers are unable to offset the effects of these conditions, our net sales and profitability may be adversely affected.

Current wording

Despite the improved profitability of our three manufacturing businesses, each continues to be impacted by macroeconomic and geopolitical developments, including the conflict in the Middle East, volatility in global oil and gas markets, elevated interest rates, and changes in global tariff policies. DynaEnergetics and NobelClad, which serve the upstream and downstream oil and gas markets, respectively, remain exposed to fluctuations in crude oil prices. If we or our customers are unable to offset the effects of these conditions, our net sales and profitability may be adversely affected.

Previous wording

Arcadia Products continues to work to mitigate the effects of elevated interest rates, volatile input costs, and generally lower construction activity in its core regional markets. Despite these conditions, Arcadia Products has recently improved product availability and lead times across its network of regional service centers and accelerated sales in its core, short-cycle commercial product line in the second quarter of 2026. Arcadia Products’ high-end residential window and door line also improved reflecting successful efforts to right-size the product offering and refocus on its target market.

Current wording

Arcadia Products continues to work to mitigate the effects of elevated interest rates, volatile input costs, and generally lower construction activity in its core regional markets. During the third quarter of 2026, Arcadia Products continued to focus on improving product availability and lead times across its network of regional service centers, and accelerated sales in its core, short-cycle commercial product line. Sales of Arcadia Products’ high-end residential windows and doors also improved, reflecting successful efforts to right-size the product offering and refocus on its target markets.

Previous wording

DynaEnergetics is continuing a series of initiatives designed to reduce costs and increase market share. Demand remains steady across its North American and international markets. DynaEnergetics also is pursuing growth opportunities in the Enhanced Geothermal Systems industry and has expanded its sales and marketing efforts in certain emerging global shale markets.

Current wording

DynaEnergetics is continuing a series of initiatives designed to reduce costs and increase market share. While demand remains steady across its North American and international markets, DynaEnergetics has expanded its sales and marketing efforts in certain emerging global shale markets. Additionally, DynaEnergetics is pursuing growth opportunities in the defense and Enhanced Geothermal Systems industries.

Previous wording

NobelClad uses backlog, defined as all unfilled firm purchase orders and commitments at a point in time, to assess near-term demand. Most firm purchase orders and commitments are realized and shipped within 12 months. Order backlog decreased to $63,508 at the end of the second quarter of 2026, compared with $70,308 at the end of the first quarter of 2026, which was the highest level in more than 15 years. Shipments from NobelClad’s order backlog are expected to accelerate during the second half of 2026 and improve NobelClad’s current year financial performance. NobelClad is also pursuing additional opportunities with the U.S. Navy following its recently announced plans to accelerate its Naval readiness program.

Current wording

NobelClad uses backlog, defined as all unfilled firm purchase orders and commitments at a point in time, to assess near-term demand. Most firm purchase orders and commitments are realized and shipped within 12 months. Order backlog increased to $72,361 at the end of the third quarter of 2026, compared with $63,508 at the end of the second quarter of 2026, with increases attributable to large project orders in the energy, engineered wood and defense sectors. Shipments from NobelClad’s order backlog accelerated during the third quarter and are expected to remain above historic levels during the fourth quarter. NobelClad continues to pursue additional opportunities with the U.S. Navy following its recently announced plans to accelerate its naval readiness program.

Previous wording

Although each of our businesses continue to be affected by challenging end-market conditions, we are beginning to benefit from specific improvement initiatives, most notably at Arcadia Products. However, we continue to evaluate additional mitigation strategies and targeted cost-reduction programs if business conditions do not improve.

Current wording

Although each of our businesses continue to be affected by challenging end-market conditions, we are beginning to benefit from specific improvement initiatives. However, we will continue to evaluate additional mitigation strategies and targeted cost-reduction programs if business conditions deteriorate.

Previous wording

Net sales were $156,953 for the three months ended June 30, 2026, an increase of 1% compared with the same period in 2025. Arcadia Products’ net sales increased 9% as a result of higher sales volumes in short-cycle commercial exterior and high-end residential markets and higher customer pricing. DynaEnergetics’ net sales increased 1% largely resulting from higher international sales volumes partially offset by lower sales volumes and a decrease in pricing in its core North American market. NobelClad’s net sales decreased 17% driven by the timing of large project shipments out of backlog and lower activity levels due in part to the impact of evolving tariff policies.

Current wording

Net sales were $172,825 for the three months ended September 30, 2026, an increase of 14% compared with the same period in 2025. Arcadia Products’ net sales increased 25% primarily as a result of higher sales volumes across all product lines. NobelClad’s net sales increased 38% driven principally by shipments associated with a large international petrochemical project. DynaEnergetics’ net sales declined 3% due to lower sales volumes in its core North American market, partially offset by higher international sales due to project timing.

Previous wording

Selling and distribution expenses increased $383 for the three months ended June 30, 2026, compared with the same period in 2025, primarily driven by higher selling costs at DynaEnergetics.

Current wording

Selling and distribution expenses increased $308 for the three months ended September 30, 2026, compared with the same period in 2025, primarily driven by higher selling costs at all three business segments.

Previous wording

Amortization of purchased intangible assets decreased $406 for the three months ended June 30, 2026, compared to the same period in 2025, as the Arcadia Products customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Current wording

Amortization of purchased intangible assets decreased $408 for the three months ended September 30, 2026, compared to the same period in 2025, as the Arcadia Products customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Previous wording

Strategic review and related expensesof $775 for the three months ended June 30, 2025 primarily included professional service fees.

Current wording

Strategic review and related expensesof $303 for the three months ended September 30, 2025 primarily included professional service fees.

Previous wording

Income tax provisionof $1,936 was recorded on income before income taxes of $3,953 for the three months ended June 30, 2026, and we recorded an income tax provision of $1,419 on income before income taxes of $1,740 for the three months ended June 30, 2025. Our most significant operations are in the United States, which has a 21% statutory income tax rate, and Germany, which has a 32% combined statutory income tax rate. The mix of income or loss before income taxes between these jurisdictions is one of the primary drivers of the difference between our 21% statutory tax rate and our effective tax rate. Additionally, the effective rates were impacted unfavorably by state taxes and a valuation allowance in the U.S. which results in no benefit for losses generated domestically. The operating results of Arcadia Products that are attributable to the redeemable noncontrolling interest holder are not taxed at DMC, which resulted in a partially offsetting favorable impact to the effective tax rates.

Current wording

Income tax provisionof $1,195 was recorded on income before income taxes of $13,266 for the three months ended September 30, 2026, compared with an income tax provision of $714 on a loss before income taxes of $1,356 for the three months ended September 30, 2025. Our most significant operations are in the United States and Germany, which have statutory income tax rates of 21% and 32% (combined), respectively. The mix of income or loss before income taxes between these jurisdictions is a primary driver of the difference between our 21% statutory tax rate and our effective tax rate. State taxes and a U.S. valuation allowance, which results in no tax benefit for losses generated domestically, also unfavorably impact our effective tax rate. For the three months ended September 30, 2026, the effective tax rate was further unfavorably affected by the recognition of an uncertain tax position liability related to an ongoing tax audit in Germany. These unfavorable impacts were partially offset by the operating results of Arcadia Products that are attributable to the redeemable noncontrolling interest holder, which are not taxed at DMC.

Previous wording

Netincome attributable to DMC Global Inc. for thethree months ended June 30, 2026 was$507, compared withnet income attributable to DMC Global Inc. of $116 for the same period in 2025, primarily due to the factors discussed above.

Current wording

Netincome attributable to DMC Global Inc. for thethree months ended September 30, 2026 was$9,708, compared withnet loss attributable to DMC Global Inc. of $3,081 for the same period in 2025, primarily due to the factors discussed above.

Previous wording

Adjusted Net Income and Adjusted Diluted Earnings Per Share decreased for the three months ended June 30, 2026, compared with the same period in 2025, due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of non-GAAP measures. The following is a reconciliation of the most directly comparable GAAP measures to Adjusted Net Income and Adjusted Diluted Earnings Per Share.

Current wording

Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share increased for the three months ended September 30, 2026, compared with the same period in 2025, due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of non-GAAP measures. The following is a reconciliation of the most directly comparable GAAP measures to Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share.

Previous wording

Gross profit percentage was 20.4% compared with 24.8% for the same period in 2025. The decrease compared to the prior year was attributableto a decrease in pricing in DynaEnergetics’ North American market, as well as an unfavorable mix and higher input costs. Arcadia Products was also impacted by higher input costs due to inflation in base aluminum metal costs which exceeded corresponding increases in customer pricing. Additionally, gross profit was negatively impacted by lower absorption of fixed manufacturing overhead costs as a result of decreases in net sales at all three business segments.

Current wording

Gross profit percentage was 22.8% compared with 23.8% for the same period in 2025. The decrease compared to the prior year was primarily attributableto NobelClad’s decline in sales which also included a less favorable project mix and lower absorption of fixed manufacturing overhead costs. The decrease in gross profit was also impacted by inflation in base aluminum metal costs at Arcadia Products which exceeded corresponding increases in customer pricing.

Previous wording

General and administrative expenses decreased $4,531 for the six months ended June 30, 2026, compared with the same period in 2025, primarily attributable to lower compensation and incentive costs of $3,971, a decrease in business-related travel of $182, and lower outside services costs of $105.

Current wording

General and administrative expenses decreased $3,297 for the nine months ended September 30, 2026, compared with the same period in 2025, primarily attributable to lower outside services costs of $1,117, the prior year recognition of a remediation liability at a former NobelClad European cladding site of $696, lower rent expense at DynaEnergetics of $363, a decrease in business-related travel of $251, and lower depreciation expense of $194.

Previous wording

Amortization of purchased intangible assets decreased $813 for the six months ended June 30, 2026, compared to the same period in 2025, as the Arcadia Products customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Current wording

Amortization of purchased intangible assets decreased $1,221 for the nine months ended September 30, 2026, compared to the same period in 2025, as the Arcadia Products customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Previous wording

Strategic review and related expenses of $2,073 for the six months ended June 30, 2025 primarily included $1,507 in professional service fees and $366 in employee retention compensation, including $36 of stock-based compensation.

Current wording

Strategic review and related expenses of $2,376 for the nine months ended September 30, 2025 primarily related to $1,786 in professional service fees and $366 in employee retention compensation, including $36 of stock-based compensation.

Previous wording

Restructuring expenses and asset impairmentsof $805 for the six months ended June 30, 2026 related to employee severance associated with headcount reductions at Arcadia Products, DynaEnergetics, and Corporate.

Current wording

Restructuring expenses and asset impairmentsof $899 for the nine months ended September 30, 2026 related to employee severance associated with headcount reductions at Arcadia Products, DynaEnergetics, and Corporate.

Previous wording

Restructuring expenses and asset impairments of $1,149 for the three months ended June 30, 2025 included an asset impairment charge and related contract termination costs associated with exiting a lease at DynaEnergetics totaling $605 and $544 of employee severance associated with headcount reductions across all three business segments.

Current wording

For the nine months ended September 30, 2025, restructuring expenses and asset impairments of $2,676 included contract termination costs associated with exiting a lease at NobelClad of $1,013, an asset impairment charge and related contract termination costs associated with exiting a lease at DynaEnergetics of $605, and employee severance associated with headcount reductions across all three business segments of $1,058.

Previous wording

Income tax provision of $3,157 was recorded on loss before income taxes of $1,636 for the six months ended June 30, 2026, and we recorded an income tax provision of $4,152 on income before income taxes of $6,336 for the six months ended June 30, 2025. Our most significant operations are in the United States, which has a 21% statutory income tax rate, and Germany, which has a 32% combined statutory income tax rate. The mix of income or loss before income taxes between these jurisdictions is one of the primary drivers of the difference between our 21% statutory tax rate and our effective tax rate. Additionally, the effective rates were impacted unfavorably by state taxes and a valuation allowance in the U.S. which results in no benefit for losses generated domestically. The operating results of Arcadia Products that are attributable to the redeemable noncontrolling interest holder are not taxed at DMC, which resulted in a partially offsetting favorable impact to the effective tax rates.

Current wording

Income tax provision of $4,352 was recorded on income before income taxes of $11,630 for the nine months ended September 30, 2026, compared with an income tax provision of $4,866 on income before income taxes of $4,980 for the nine months ended September 30, 2025. Our most significant operations are in the United States and Germany, which have statutory income tax rates of 21% and 32% (combined), respectively. The mix of income or loss before income taxes between these jurisdictions is a primary driver of the difference between our 21% statutory tax rate and our effective tax rate. State taxes and a U.S. valuation allowance, which results in no tax benefit for losses generated domestically, also unfavorably impact our effective tax rate. These unfavorable impacts were partially offset by the operating results of Arcadia Products that are attributable to the redeemable noncontrolling interest holder, which are not taxed at DMC.

Previous wording

Netloss attributable to DMC Global Inc. for thesix months ended June 30, 2026 was$5,558, compared tonet income attributable to DMC Global Inc. of $793 for the same period in 2025, primarily due to the factors discussed above.

Current wording

Netincome attributable to DMC Global Inc. for thenine months ended September 30, 2026 was$4,150, compared tonet loss attributable to DMC Global Inc. of $2,288 for the same period in 2025, primarily due to the factors discussed above.

Previous wording

Adjusted EBITDA decreased for the three months ended June 30, 2026, compared with the same period in 2025, due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.

Current wording

Adjusted EBITDA decreased for the nine months ended September 30, 2026, compared with the same period in 2025, primarily due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.

Previous wording

Adjusted Net (Loss) Income and Adjusted Diluted Earnings Per Share decreased for the six months ended June 30, 2026, compared with the same period in 2025, primarily due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of non-GAAP measures. The following is a reconciliation of the most directly comparable GAAP measures to Adjusted Net (Loss) Income and Adjusted Diluted Earnings Per Share.

Current wording

Adjusted Net Income and Adjusted Diluted Earnings Per Share increased for the nine months ended September 30, 2026, compared with the same period in 2025, primarily due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of non-GAAP measures. The following is a reconciliation of the most directly comparable GAAP measures to Adjusted Net Income and Adjusted Diluted Earnings Per Share.

Previous wording

Amortization of purchased intangible assets decreased $406 for the three months ended June 30, 2026, compared with the same period in 2025, as the customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Current wording

Amortization of purchased intangible assets decreased $408 for the three months ended September 30, 2026, compared with the same period in 2025, as the customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Previous wording

Restructuring expenses and asset impairmentsof $47 and $192 for the three months ended June 30, 2026, and 2025, respectively, related to employee severance associated with headcount reductions.

Current wording

Restructuring expenses and asset impairmentsof $47 and $132 for the three months ended September 30, 2026, and 2025, respectively, related to employee severance associated with headcount reductions.

Previous wording

Net sales increased $5,439 for the three months ended June 30, 2026, compared with the same period in 2025, primarily due to higher sales volumes in short-cycle commercial exterior and high-end residential markets as well as higher customer pricing in response to increases in raw material input costs.

Current wording

Net sales increased $11,790 for the nine months ended September 30, 2026, compared with the same period in 2025, primarily due to higher sales volumes in short-cycle commercial exterior, commercial interior, and high-end residential markets as well as higher customer pricing in response to increases in raw material input costs.

Previous wording

Amortization of purchased intangible assets decreased $813 for the six months ended June 30, 2026, compared with the same period in 2025, as the customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Current wording

Amortization of purchased intangible assets decreased $1,221 for the nine months ended September 30, 2026, compared with the same period in 2025, as the customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Previous wording

Selling and distribution expenses decreased $771 for the six months ended June 30, 2026, compared with the same period in 2025, driven by lower bad debt expense of $537 and a decrease in compensation costs of $275.

Current wording

Selling and distribution expenses decreased $281 for the three months ended September 30, 2026, compared with the same period in 2025, primarily due to lower bad debt expense of $525, partially offset by higher selling costs of $292.

Previous wording

Net sales decreased $5,483 for the six months ended June 30, 2026, compared with the same period in 2025, primarily due to lower sales volumes and a decrease in pricing due to a highly competitive North American market, which collectively reduced net sales by $8,678. This decrease was partially offset by an increase in international sales of $3,195 primarily due to project timing.

Current wording

Net sales decreased $7,305 for the nine months ended September 30, 2026, compared with the same period in 2025, primarily due to lower sales volumes and a decrease in pricing due to a highly competitive core North American market, which collectively reduced net sales by $11,507. This decrease was partially offset by an increase in international sales of $4,202 primarily due to project timing.

Previous wording

Selling and distribution expenses decreased $267 for the six months ended June 30, 2026, compared with the same period in 2025, primarily due to a reduction in bad debt expense of $419 partially offset by an increase in compensation costs of $246.

Current wording

Selling and distribution expenses decreased $547 for the nine months ended September 30, 2026, compared with the same period in 2025, primarily due to a reduction in bad debt expense of $931, partially offset by higher incentive compensation costs of $418.

Previous wording

Restructuring expenses and asset impairments of $746 for the three months ended June 30, 2025 included an asset impairment charge and related contract termination costs associated with exiting a lease totaling $605 and employee severance of $141 associated with headcount reductions.

Current wording

Restructuring expenses and asset impairments of $803 for the nine months ended September 30, 2025 included an asset impairment charge and related contract termination costs associated with exiting a lease totaling $605 and employee severance of $198 associated with headcount reductions.

Previous wording

Gross profit percentage decreased to 26.0% for the six months ended June 30, 2026 primarily due to inflation in base aluminum metal costs which exceeded corresponding increases in customer pricing as well as lower absorption of fixed manufacturing overhead costs as a result of the decrease in net sales described above.

Current wording

Gross profit percentage decreased to 23.2% for the nine months ended September 30, 2026 due to an unfavorable project mix as well as lower absorption of fixed manufacturing overhead costs as a result of the decrease in net sales described above.

Previous wording

Restructuring expenses and asset impairments of $746 for the six months ended June 30, 2025 included an asset impairment charge and related contract termination costs associated with exiting a lease totaling $605 and employee severance of $141 associated with headcount reductions.

Current wording

Restructuring expenses and asset impairmentsof $1,224 for the nine months ended September 30, 2025 included contract termination costs associated with exiting a lease totaling $1,013 and employee severance of $211 associated with headcount reductions.

Previous wording

We have historically financed our operations from a combination of internally generated cash flow, revolving credit borrowings, and various long-term debt arrangements. Our net debt position was $30,513 at June 30, 2026, compared with $18,746 at December 31, 2025. The increase was primarily due to net credit facility borrowings of $8,201 to assist in funding increased working capital to support expected near-term higher activity levels across all of the Company’s business segments.

Current wording

We have historically financed our operations from a combination of internally generated cash flow, revolving credit borrowings, and various long-term debt arrangements. Our net debt position was $13,717 at September 30, 2026, compared with $18,746 at December 31, 2025. The decrease was primarily driven by an increase in cash and cash equivalents resulting from improved operating performance and related cash flow generation across all three of our business segments during the three months ended September 30, 2026.

Previous wording

The leverage ratio is defined in the credit facility as the ratio of Consolidated Funded Indebtedness (as defined in the credit facility) on the last day of any trailing four quarter period to Consolidated EBITDA (as defined in the credit facility) for such period. The maximum leverage ratio permitted by ourcredit facility is 3.0 to 1.0; provided, however, that the Second Amendment (as defined below) provides for a temporary increase in the maximum leverage ratio under certain circumstances as described below. The actual leverage ratio as of June 30, 2026 was 2.19 to 1.0.

Current wording

The leverage ratio is defined in the credit facility as the ratio of Consolidated Funded Indebtedness (as defined in the credit facility) on the last day of any trailing four quarter period to Consolidated EBITDA (as defined in the credit facility) for such period. The maximum leverage ratio permitted by ourcredit facility is 3.0 to 1.0; provided, however, that the Second Amendment (as defined below) provides for a temporary increase in the maximum leverage ratio under certain circumstances as described below. The actual leverage ratio as of September 30, 2026 was 1.41 to 1.0.