TRIMAS CORP
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 31, 2026
TRS$38.61+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0000842633-26-000029
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0000842633-26-000049
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 110 previous paragraphs and 133 current paragraphs.
52 unchanged; 46 reworded; 29 added; 11 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 7 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
During second quarter 2026, we recorded $2.1 million of realignment costs related to the closure and consolidation of our Atkins, Arkansas facility into other locations within our Packaging segment, including $1.4 million related to facility move and consolidation costs and $0.5 million related to charges to accelerate the depreciation of certain fixed assets.
Current report
The effective income tax rate for second quarter 2026 was (272.3)% as compared to 22.5% for second quarter 2025. See the Results of Operations section below for additional information.
Current report
The significantly lower effective tax rate in the second quarter of 2026 was primarily driven by the misapplication of income tax accounting guidance related to allocation of tax provision in the first quarter of 2026 that resulted in tax expense of $53.9 million being reported in the results of continuing operations. The $53.9 million of tax expense was subsequently reported as an out-of-period adjustment in the second quarter of 2026 in the results of discontinued operations. There was no change to the total Company tax expense in either period.
Current report
Segment Information and Supplemental Analysis
Current report
•Realignment costs related to the closure and consolidation of our Atkins, Arkansas facility into other locations within our Packaging segment;
Current report
Overall, net sales increased $2.8 million, or 1.6%, to $174.6 million for the three months ended June 30, 2026, as compared with $171.8 million in the three months ended June 30, 2025. Organic sales, excludingthe impact of currency exchange, remained relatively flat, as organic sales increased 10.2%within our Specialty segment, due to higher demand levels for steel cylinders, while organic sales decreased 2.1% within our Packaging segment. In addition, net sales increased by $2.9 million due to currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of the weakening of the U.S. dollar relative to foreign currencies.
Current report
Gross profit margin (gross profit as a percentage of sales) approximated 20.2% and 22.1% for the three months ended June 30, 2026 and 2025, respectively. Gross profit margin decreased primarily due to $1.9 million of higher realignment costs related to the closure and consolidation of our Atkins, Arkansas facility within our Packaging segment, as well as due to higher production costs and manufacturing inefficiencies within our Specialty Products segment.
Current report
Operating profit margin (operating profit as a percentage of sales) approximated 6.2% and 4.3% for the three months ended June 30, 2026 and 2025, respectively. Operating profit increased $3.5 million to $10.9 million in the three months ended June 30, 2026, from $7.4 million for the three months ended June 30, 2025, primarily due to a decrease in consulting costs and costs associated with actions to reorganize the corporate office in the second quarter of 2025, as well as a decrease in employee-related costs and overall general corporate expenses. These increases were partially offset by $1.4 million of higher realignment costs, primarily related to the closure and consolidation of our Atkins, Arkansas facility within our Packaging segment, and higher production costs and manufacturing inefficiencies within our Specialty Products segment.
Current report
Interest expense decreased $0.4 million, to $4.1 million for the three months ended June 30, 2026, compared to $4.6 million for the three months ended June 30, 2025, due to a decrease in our weighted average borrowings on our revolving credit facility within the second quarter of 2026.
Current report
Other income increased $11.1 million to $11.3 million for the three months ended June 30, 2026, as compared to $0.3 million for the three months ended June 30, 2025, primarily due to $10.9 million of interest income on the invested cash proceeds from the sale of Aerospace.
Current report
The effective income tax rate for the three months ended June 30, 2026 and 2025 was (272.3)% and 22.5%, respectively. We recorded an income tax benefit of $49.2 million and income tax expense of $0.7 million for the three months ended June 30, 2026 and 2025, respectively. The significantly lower effective tax rate in the second quarter of 2026 was primarily driven by the misapplication of income tax accounting guidance related to allocation of tax provision in the first quarter of 2026 that resulted in tax expense of $53.9 million being reported in the results of continuing operations. The $53.9 million of tax expense was subsequently reported as an out-of-period adjustment in the second quarter of 2026 in the results of discontinued operations. There was no change to the total Company tax expense in either period.
Current report
Packaging. Net sales decreased $0.1 million, or 0.1% (of which (2.1)% was organic and 2.0% was foreign currency exchange), to $142.9 million in the three months ended June 30, 2026, as compared to $143.0 million in the three months ended June 30, 2025. Sales of products used in food and beverage applications decreased by $2.5 million, sales of dispensing products used primarily for beauty, personal care and home care applications decreased by $2.2 million, and sales of other consumer goods products decreased by $2.6 million. These decreases were partially offset by higher sales of products used in life sciences markets of $3.2 million and higher sales of products used for industrial applications of $1.2 million. Net sales increased by $2.9 million due to currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of the weakening of the U.S. dollar relative to foreign currencies, as compared to second quarter 2025.
Current report
Selling, general and administrative expenses decreased $0.7 million to $14.9 million, or 10.4% of sales, in the three months ended June 30, 2026, as compared to $15.5 million, or 10.9% of sales, in the three months ended June 30, 2025, primarily due to lower employee-related costs and lower intangible asset amortization expense due to certain assets becoming fully amortized, partially offset by $0.2 million of higher realignment costs.
Current report
Operating profit decreased $1.3 million to $18.7 million, or 13.1% of sales, in the three months ended June 30, 2026, as compared to $20.0 million, or 14.0% of sales, in the three months ended June 30, 2025, primarily due to $2.1 million of higher realignment costs, partially offset by lower employee-related costs and lower intangible asset amortization expense due to certain assets becoming fully amortized.
Current report
Specialty Products. Net sales for the three months ended June 30, 2026 increased $2.9 million, or 10.2%, to $31.7 million, as compared to $28.7 million in the three months ended June 30, 2025, primarily due to higher demand and market share gains.
Current report
Gross profit decreased $0.6 million to $1.8 million, or 5.6% of sales, in the three months ended June 30, 2026, as compared to $2.4 million, or 8.4% of sales, in the three months ended June 30, 2025, as the impact of increased steel cylinder sales was more than offset by higher production costs due to inefficient ramping up of labor and machinery to meet the higher demand levels, as well as higher material costs.
Current report
Selling, general and administrative expenses were flat at $1.1 million, or 3.4% of sales, in the three months ended June 30, 2026, as compared to $1.1 million, or 4.0% of sales, in the three months ended June 30, 2025, as the segment managed spending levels while supporting elevated market demand.
Current report
Operating profit decreased $0.6 million to $0.7 million, or 2.2% of sales, in the three months ended June 30, 2026, as compared to $1.3 million, or 4.4% of sales, in the three months ended June 30, 2025, as the impact of increased steel cylinder sales was more than offset by higher production costs and manufacturing inefficiencies.
Current report
Corporate expenses decreased $5.3 million to $8.6 million for the three months ended June 30, 2026, from $13.9 million for the three months ended June 30, 2025, due to:
Current report
•Corporate operating expenses decreased $5.9 million to $6.2 million in the three months ended June 30, 2026 from $12.1 million in the three months ended June 30, 2025, primarily due to a $2.2 million decrease related to consulting costs and costs associated with actions to reorganize the corporate office in the second quarter of 2025, a $0.8 million decrease in costs associated with upgrades to certain of our information technology applications, as well as a decrease of $3.8 million of employee-related costs and overall general corporate expenses. These decreases were partially offset by $0.9 million of higher professional fees related to mergers, acquisition, diligence and transaction costs.
Current report
Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
Current report
The effective income tax rate for the six months ended June 30, 2026 and 2025 was 24.7% and 23.7%, respectively. We recorded income tax expense of $5.1 million for the six months ended June 30, 2026, as compared to $1.4 million for the six months ended June 30, 2025. The increase in the effective tax rate was primarily driven by the jurisdictional mix of earnings and the impact of certain permanent tax benefits recognized in the prior year period. Those benefits had a proportionately greater effect on the prior year effective tax rate due to the significantly lower level of pre-tax income in that period.
Current report
Income from continuing operations increased by $11.2 million, to $15.5 million for the six months ended June 30, 2026, compared to $4.4 million for the six months ended June 30, 2025. The Increase was primarily the result of an increase in other income of $12.0 million and an increase in operating profit of $3.2 million, partially offset by an increase in income tax expense of $3.8 million and an increase in interest expense of $0.3 million.
Current report
Gross profit decreased $0.8 million to $66.2 million, or 23.5% of sales, in the six months ended June 30, 2026, as compared to $67.0 million, or 24.8% of sales, in the six months ended June 30, 2025, as the $1.9 million higher realignment costs related to the closure and consolidation of our Atkins, Arkansas facility more than offset the impact of increased sales.
Current report
Selling, general and administrative expenses increased $3.2 million to $33.0 million, or 11.7% of sales, in the six months ended June 30, 2026, as compared to $29.8 million, or 11.0% of sales, in the six months ended June 30, 2025, primarily due to $2.9 million of higher realignment costs related to the comprehensive reorganization of our Packaging segment.
Current report
Operating profit decreased $4.0 million to $33.3 million, or 11.8% of sales, in the six months ended June 30, 2026, as compared to $37.2 million, or 13.8% of sales, in the six months ended June 30, 2025, primarily due to higher realignment costs, partially offset by the impact of increased sales.
Current report
Corporate expenses decreased $3.7 million to $19.1 million for the six months ended June 30, 2026, from $22.8 million in the six months ended June 30, 2025, due to:
Current report
•Corporate operating expenses decreased $10.3 million to $13.4 million in six months ended June 30, 2026 from $23.7 million in six months ended June 30, 2025, due to a $4.4 million decrease related to consulting costs and costs associated with actions to reorganize the corporate office in the first half of 2025 (exclusive of non-cash stock compensation), a $0.5 million decrease in costs associated with upgrades to certain of our information technology applications, as well as a decrease of $6.0 million in employee-related costs and overall general corporate expenses. These decreases were partially offset by a $0.6 million increase in professional fees related to mergers, acquisition, diligence and transaction costs.
Current report
•Non-cash stock compensation increased $1.3 million to $5.5 million in six months ended June 30, 2026 from $4.2 million in six months ended June 30, 2025, primarily due to timing and estimated attainment of existing awards.
Removed paragraphs (11)
Previous report
Sales of certain of our products for industrial applications, for example steel cylinders for packaged gas applications, have experienced volatility in demand related to customers securing high order rates in prior periods, only to enter a period of destocking in more recent periods. This significant level of volatility in demand levels, input and transportation costs, and material and labor availability, has pressured our ability to operate efficiently in recent periods. While some areas of demand volatility and softness remain, such as in our Specialty Products segment, and more specifically our Norris Cylinder business, we have experienced more steady and consistent demand in our Packaging segment.
Previous report
During first quarter 2026, we recorded $4.1 million of realignment costs related to the comprehensive reorganization of our Packaging segment and corporate office, primarily for severance, including $0.5 million of non-cash compensation expense.
Previous report
On January 31, 2025, we completed the divestiture of our Arrow Engine business within our Specialty Products segment for net cash proceeds of $21.0 million. We recognized a pre-tax gain of $5.3 million on the sale of Arrow Engine. Arrow Engine contributed $1.4 million of sales in first quarter 2025.
Previous report
The effective income tax rate forfirst quarter 2026 was 2,137.8% as compared to 25.1% forfirst quarter 2025. The increase in the effective tax rate forfirst quarter 2026 was primarily driven by incremental income tax expense of $53.9 million resulting from the reclassification of deferred tax benefits previously recognized at December 31, 2025 in connection with the Aerospace divestiture.
Previous report
•Realignment costs related to the comprehensive reorganization of our Packaging segment and corporate office;
Previous report
•The impact of the divestiture of our Arrow Engine business in first quarter 2025; and
Previous report
The effective income tax rate for the three months ended March 31, 2026 and March 31, 2025 was 2,137.8% and 25.1%, respectively. We recorded tax expense of $54.3 million for the three months ended March 31, 2026, as compared to $0.7 million for the three months ended March 31, 2025. The effective tax rate for the three months ended March 31, 2026 was higher than in the prior year primarily due to incremental income tax expense of $53.9 million resulting from the reclassification of deferred tax benefits previously recognized at December 31, 2025 in connection with the Aerospace divestiture.
Previous report
Selling, general and administrative expenses increased $3.9 million to $18.1 million, or 13.0% of sales, in the three months ended March 31, 2026, as compared to $14.2 million, or 11.1% of sales, in the three months ended March 31, 2025, primarily due to $2.7 million of higher realignment costs related to the comprehensive reorganization of our Packaging segment.
Previous report
Operating profit decreased $2.7 million to $14.6 million, or 10.5% of sales, in the three months ended March 31, 2026, as compared to $17.2 million, or 13.5% of sales, in the three months ended March 31, 2025, primarily due to $2.7 million of higher realignment costs, a less favorable product sales mix, partially offset by increased sales and the favorable impact of operational improvement actions.
Previous report
Corporate expenses increased $1.6 million to $10.5 million for the three months ended March 31, 2026, from $8.9 million in the three months ended March 31, 2025, due to:
Previous report
•Corporate operating expenses decreased $4.4 million to $7.2 million in three months ended March 31, 2026 from $11.6 million in three months ended March 31, 2025, due to $1.5 million lower realignment costs associated with actions to reorganize the corporate office (exclusive of non-cash stock compensation) and an overall decrease in other general corporate expenses.
Reworded paragraphs (46)
Previous wording
As a result of the decision of the U.S. Supreme Court in February 2026, we may be entitled to a refund of tariffs previously paid on certain imported product under IEEPA. Although a reimbursement process became available on April 20, 2026, the timing and amount of any potential refunds for previously collected tariffs remain uncertain and may be subject to further legal and regulatory developments. To date, the changes in the tariffs, on an overall basis, have not had a significant impact on our results of operations. We will continue to monitor the situation and evaluate the impact of any replacement tariffs or policy changes on our business, including the potential for cost recovery and future tariff exposure.
Current wording
As a result of the decision of the U.S. Supreme Court in February 2026, we are entitled to a refund of tariffs previously paid on certain imported product under IEEPA. To date, the changes in the tariffs, on an overall basis, have not had a significant impact on our results of operations. We will continue to monitor the situation and evaluate the impact of any replacement tariffs or policy changes on our business, including the potential for cost recovery and future tariff exposure.
Previous wording
Overall, ourfirst quarter 2026 net sales increased $15.8 million, or 10.4%, compared tofirst quarter 2025. We experienced organic growth of 4.4% within our Packaging segment, compared tofirst quarter 2025. Net sales increased 17.0% in our Specialty Products segment as compared to the prior year quarter, as higher sales of steel cylinders more than offset the lost sales due to the divestiture of our Arrow Engine business in January 2025. Our overall sales increase included$6.0 million of currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of a weakening U.S. dollar relative to foreign currencies.
Current wording
Overall, oursecond quarter 2026 net sales increased $2.8 million, or 1.6%, compared tosecond quarter 2025. Net sales increased 10.2% in our Specialty Products segment as compared to the prior year quarter due to increased market demand for steel cylinders. Organic sales decreased 2.1% within our Packaging segment, compared tosecond quarter 2025, due to volatility in certain of our end markets. Our overall sales increase included$2.9 million of currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of a weakening U.S. dollar relative to foreign currencies.
Previous wording
The most significant drivers affecting our financial results in first quarter 2026 compared with first quarter 2025, other than as directly impacted by sales changes, were realignment costs related to the comprehensive reorganization of our Packaging segment and corporate office, interest income earned on the invested cash proceeds from the sale of our Aerospace business, the impact of the divestiture of our Arrow Engine business in first quarter 2025, and an increase in our effective tax rate.
Current wording
The most significant drivers affecting our financial results in second quarter 2026 compared with second quarter 2025, other than as directly impacted by sales changes, were realignment costs related to the closure and consolidation of our Atkins, Arkansas facility, interest income earned on the invested cash proceeds from the sale of our Aerospace business, and a decrease in our effective tax rate.
Previous wording
During first quarter 2026, we invested the cash proceeds from the sale of our Aerospace business in highly liquid instruments, including U.S. Treasury‑backed money market funds and cash deposits that earn interest at a rate of approximately 3.5%. During the three months ended March 31, 2026, we earned interest income of $2.0 million.
Current wording
During first quarter 2026, we invested the cash proceeds from the sale of our Aerospace business in highly liquid instruments, including U.S. Treasury‑backed money market funds and cash deposits that earned interest at a rate of approximately 3.7% during second quarter. During the three months ended June 30, 2026, we earned interest income of $10.9 million.
Previous wording
Oil-based commodity costs are a significant driver of raw materials and purchased components used within our Packaging segment. As such, an increase in crude oil prices often is a precursor to rising polymeric raw material costs, for which we may experience a contractual commercial recovery lag.
Current wording
Oil-based commodity costs are a significant driver of raw materials and purchased components used within our Packaging segment. As such, an increase in crude oil prices often is a precursor to rising polymeric raw material costs, for which we may experience a contractual commercial recovery lag. During 2026, geopolitical instability in the Middle East has contributed to volatility in global energy and logistics markets. These conditions have led to increased oil-based commodity costs, including resin and other input costs, which began to affect us in second quarter 2026.
Previous wording
We continue to evaluate alternatives to redeploy the cash generated by our businesses, one of which includes returning capital to our shareholders. In February 2026, our Board of Directors authorized us to increase the purchase of our common stock up to $150 million in the aggregate, adding to the $48.9 million remaining under the previous authorization. During first quarter 2026, 1,487,057 shares were purchased. As of March 31, 2026, we had $95.5 million remaining under the repurchase authorization.
Current wording
We continue to evaluate alternatives to redeploy the cash generated by our businesses, one of which includes returning capital to our shareholders. In February 2026, our Board of Directors authorized us to increase the purchase of our common stock up to $150 million in the aggregate, adding to the $48.9 million remaining under the previous authorization. During second quarter 2026, 509,264 shares were purchased. As of June 30, 2026, we had $76.5 million remaining under the repurchase authorization.
Previous wording
In addition, infirst quarter 2026, we declared dividends of $0.04 per share of common stock and paid dividends of$1.5 million. We will continue to evaluate opportunities to return capital to shareholders through the purchase of our common stock, as well as dividends, depending on market conditions and other factors.
Current wording
In addition, insecond quarter 2026, we declared dividends of $0.04 per share of common stock and paid dividends of$1.4 million. We will continue to evaluate opportunities to return capital to shareholders through the purchase of our common stock, as well as dividends, depending on market conditions and other factors.
Previous wording
•Increases in demand for products within our Packaging and Specialty Products segments;
Current wording
•Increase in demand for products within our Specialty Products segment;
Previous wording
•An increase in our effective tax rate in first quarter 2026 compared with first quarter 2025.
Current wording
•A decrease in our effective tax rate in second quarter 2026 compared with second quarter 2025.
Previous wording
Income (loss) from continuing operations decreased by $53.7 million, to a loss of $51.8 million for the three months ended March 31, 2026, compared to income of $1.9 million for the three months ended March 31, 2025. The decrease was primarily the result of a decrease in operating profit of $0.3 million, an increase in interest expense of $0.7 million, and an increase in income tax expense of $53.7 million, partially offset by an increase in other income by $0.9 million.
Current wording
Income from continuing operations increased $64.9 million, to $67.3 million for the three months ended June 30, 2026, as compared to $2.4 million for the three months ended June 30, 2025. The increase was primarily the result of a decrease in income tax expense of $49.9 million, an increase of $11.1 million in other income, an increase in operating profit of $3.5 million, and a decrease in interest expense of $0.4 million.
Previous wording
Gross profit increased $1.2 million to $32.7 million, or 23.5% of sales, in the three months ended March 31, 2026, as compared to $31.5 million, or 24.7% of sales, in the three months ended March 31, 2025, due to higher sales levels as well as the favorable impact of prior year operational improvement actions. Although gross profit increased, gross profit margin decreased primarily due to a less favorable product sales mix.
Current wording
Gross profit decreased $2.0 million to $33.6 million, or 23.5% of sales, in the three months ended June 30, 2026, as compared to $35.6 million, or 24.9% of sales, in the three months ended June 30, 2025, primarily due to $1.9 million higher realignment costs related to the closure and consolidation of our Atkins, Arkansas facility.
Previous wording
•Non-cash stock compensation increased $0.7 million to $3.2 million in three months ended March 31, 2026 from $2.5 million in three months ended March 31, 2025, primarily due to timing and estimated attainment of existing awards.
Current wording
•Non-cash stock compensation increased $0.6 million to $2.3 million in the three months ended June 30, 2026 from $1.7 million in the three months ended June 30, 2025, primarily due to timing and estimated attainment of existing awards.
Previous wording
Overall, net sales increased $15.8 million, or 10.4%, to $168.3 million for the three months ended March 31, 2026, as compared with $152.5 million in the three months ended March 31, 2025. Organic sales, excluding the impact of currency exchange and divestitures, increased $11.2 million, or 7.3%, as organic sales increased 22.6% and 4.4% within our Specialty Products and Packaging segments, respectively, due to end market demand improvements and growth initiatives. These increases were partially offset by the impact of the divestiture of our Arrow Engine business in our Specialty Products segment. In addition, net sales increased by $6.0 million due to currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of a weakening U.S. dollar relative to foreign currencies.
Current wording
Overall, net sales increased $18.7 million, or 5.8%, to $342.9 million for the six months ended June 30, 2026, as compared with $324.2 million in the six months ended June 30, 2025. Organic sales, excluding the impact of currency exchange and divestitures, increased $11.1 million, or 3.4%, as organic sales increased 16.0% and 1.0% within our Specialty Products and Packaging segments, respectively, due to end market demand improvements and growth initiatives. These increases were partially offset by the impact of the divestiture of our Arrow Engine business in our Specialty Products segment. In addition, net sales increased by $8.9 million due to currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of a weakening U.S. dollar relative to foreign currencies.
Previous wording
Gross profit margin (gross profit as a percentage of sales) approximated 21.9% for the three months ended March 31, 2026 and 21.5% for the three months ended March 31, 2025. Gross profit margin increased primarily due to higher sales levels and related improved fixed cost absorption within our Specialty Products segment, as well as due to the favorable impact of prior year operational improvement actions within the Packaging segment. These improvements were partially offset by a less favorable product sales mix within our Packaging segment.
Current wording
Gross profit margin (gross profit as a percentage of sales) approximated 21.1% for the six months ended June 30, 2026 and 21.8% for the six months ended June 30, 2025. Gross profit margin decreased primarily due to $1.9 million of higher realignment costs related to the closure and consolidation of our Atkins, Arkansas facility within our Packaging segment. This decrease was partially offset by increased gross profit and margin from our Specialty Products segment.
Previous wording
Operating profit margin (operating profit as a percentage of sales) approximated 4.1% and 4.7% for the three months ended March 31, 2026 and March 31, 2025, respectively. Operating profit decreased $0.3 million, to $6.9 million, for the three months ended March 31, 2026, compared to $7.2 million for the three months ended March 31, 2025, primarily due to the year-over-year impact of a $5.3 million gain on the sale of Arrow Engine in first quarter 2025 that did not recur, a less favorable product sales mix within our Packaging segment, and higher stock compensation expense. These decreases were partially offset by higher sales levels and related improved fixed cost absorption within our Specialty Products segment.
Current wording
Operating profit margin (operating profit as a percentage of sales) approximated 5.2% and 4.5% for the six months ended June 30, 2026 and 2025, respectively. Operating profit increased $3.2 million, to $17.8 million, for the six months ended June 30, 2026, compared to $14.5 million for the six months ended June 30, 2025, primarily due to a decrease in consulting costs as well as a decrease in employee-related costs and overall general corporate expenses. Additionally, operating profit increased from our Specialty Products segment, as a result of increased sales of our steel cylinders. These increases were partially offset by the year-over-year impact of a $5.3 million gain on the sale of Arrow Engine in the first half of 2025 that did not recur and $1.7 million of higher realignment costs primarily related to the closure and consolidation of our Atkins, Arkansas facility within our Packaging segment.
Previous wording
Interest expense increased $0.7 million, to $5.2 million, for the three months ended March 31, 2026, as compared to $4.5 million for the three months ended March 31, 2025, due to an increase in our weighted average borrowings and a higher effective interest rate on our revolving credit facility within the first quarter of 2026.
Current wording
Interest expense increased $0.3 million, to $9.4 million, for the six months ended June 30, 2026, as compared to $9.1 million for the six months ended June 30, 2025, due to an increase in our weighted average borrowings and a higher effective interest rate on our revolving credit facility within the first half of 2026.
Previous wording
Other income (expense) increased $0.9 million to $0.9 million of income, for the three months ended March 31, 2026, from a nominal amount of expense for the three months ended March 31, 2025, as the $2.0 million of interest income earned on invested cash proceeds from the sale of our Aerospace business was partially offset by increased losses on foreign currency transactions.
Current wording
Other income increased $12.0 million to $12.2 million, for the six months ended June 30, 2026, from $0.2 million for the six months ended June 30, 2025, as the $12.9 million of interest income earned on invested cash proceeds from the sale of our Aerospace business was partially offset by increased losses on foreign currency transactions.
Previous wording
Packaging. Net sales increased $11.6 million, or 9.1% (of which 4.4% was organic and 4.7% was foreign currency exchange), to $139.2 million in the three months ended March 31, 2026, as compared to $127.6 million in the three months ended March 31, 2025. The increase was driven primarily by higher sales of products used in life sciences markets of $5.0 million and dispensing products used primarily for beauty, personal care and home care applications of $2.4 million, partially offset by lower sales of products used for industrial applications of $1.2 million. Net sales increased by $6.0 million due to currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of the weakening U.S. dollar relative to foreign currencies, as compared to 2025.
Current wording
Packaging. Net sales increased $11.5 million, or 4.3% (of which 1.0% was organic and 3.3% was foreign currency exchange), to $282.1 million in the six months ended June 30, 2026, as compared to $270.6 million in the six months ended June 30, 2025. The increase was driven primarily by higher sales of products used in life sciences markets of $8.2 million, partially offset by the decrease in sales of other consumer goods products of $3.6 million and decrease in sales of products used in food and beverage applications of $2.2 million. Net sales increased by $8.9 million due to currency exchange, as our reported results in U.S. dollars were favorably impacted as a result of the weakening U.S. dollar relative to foreign currencies, as compared to 2025.
Previous wording
Specialty Products. Net sales for the three months ended March 31, 2026 increased $4.2 million, or 17.0% (of which 22.6% was organic and (5.6)% was due to the divestiture of Arrow Engine), to $29.1 million, as compared to $24.9 million in the three months ended March 31, 2025. Sales of steel cylinders increased $5.6 million, or 24.0%, to $29.1 million, as compared to $23.5 million, due predominantly to improved demand for industrial applications. Arrow Engine contributed $1.4 million of sales in three months ended March 31, 2025. See Note 6, "Acquisitions and Sale of Business," included in Part I, Item 1, "Notes to Consolidated Financial Statements," within this quarterly report on Form 10-Q for more information.
Current wording
Specialty Products. Net sales for the six months ended June 30, 2026 increased $7.1 million, or 13.3% (of which 16.0% was organic and (2.7)% was due to the divestiture of Arrow Engine), to $60.8 million, as compared to $53.6 million in the six months ended June 30, 2025. Sales of steel cylinders increased $8.6 million, or 16.4%, to $60.8 million, as compared to $52.2 million, primarily due to improved demand for industrial applications and market share gains. Arrow Engine contributed $1.4 million of sales in six months ended June 30, 2025. See Note 6, "Acquisitions and Sale of Business," included in Part I, Item 1, "Notes to Consolidated Financial Statements," within this quarterly report on Form 10-Q for more information.
Previous wording
Gross profit increased $2.8 million to $4.2 million, or 14.5% of sales, in the three months ended March 31, 2026, as compared to $1.4 million, or 5.5% of sales, in the three months ended March 31, 2025, primarily due to an increase in sales of our steel cylinders and improved fixed cost absorption, partially offset by the year-over-year impact from the divestiture of our Arrow Engine business.
Current wording
Gross profit increased $2.2 million to $6.0 million, or 9.8% of sales, in the six months ended June 30, 2026, as compared to $3.8 million, or 7.0% of sales, in the six months ended June 30, 2025, primarily due to an increase in sales of our steel cylinders. The increase in gross profit from the sale of our steel cylinders was partially offset by the year-over-year impact from the divestiture of our Arrow Engine business.
Previous wording
Selling, general and administrative expenses decreased $1.2 million to $1.4 million, or 4.7% of sales, in the three months ended March 31, 2026, as compared to $2.5 million, or 10.1% of sales, in the three months ended March 31, 2025, primarily due to $1.2 million of incurred expenses related to our Arrow Engine business, which we divested in January 2025.
Current wording
Selling, general and administrative expenses decreased $1.2 million to $2.5 million, or 4.0% of sales, in the six months ended June 30, 2026, as compared to $3.7 million, or 6.8% of sales, in the six months ended June 30, 2025, primarily due to $1.2 million of incurred expenses related to our Arrow Engine business, which we divested in January 2025.
Previous wording
Operating profit increased $4.0 million to $2.9 million, or 9.8% of sales, in the three months ended March 31, 2026, as compared to a loss of $1.2 million, or 4.6% of sales, in the three months ended March 31, 2025, primarily due to higher steel cylinder sales, and lower selling, general and administrative expenses, partially offset by the year-over-year impact from the divestiture of our Arrow Engine business.
Current wording
Operating profit increased $3.4 million to $3.6 million, or 5.8% of sales, in the six months ended June 30, 2026, as compared to $0.1 million, or 0.2% of sales, in the six months ended June 30, 2025, primarily due to higher sales of our steel cylinders and lower selling, general and administrative expenses, partially offset by the year-over-year impact from the divestiture of our Arrow Engine business.
Previous wording
•We recognized a $5.3 million pre-tax gain in the three months ended March 31, 2025, on the sale of our former Arrow Engine business.
Current wording
•We recognized a $5.3 million pre-tax gain in the six months ended June 30, 2025, on the sale of our former Arrow Engine business.
Previous wording
Discontinued Operations. The results of discontinued operations consists of our Aerospace segment, for which we entered into a definitive agreement to sell on November 4, 2025. On March 16, 2026, we completed the sale for a purchase price of approximately $1,456.9 million, subject to certain adjustments as set forth in the Purchase Agreement, which adjustments we expect to be finalized during 2026. Income from discontinued operations, net of income tax expense, was $852.6 million for the three months ended March 31, 2026, as compared to $10.5 million for the three months ended March 31, 2025. See Note 3, "Discontinued Operations," included in Part I, Item 1, "Notes to Consolidated Financial Statements," within this quarterly report on Form 10-Q for more information.
Current wording
Discontinued Operations. The results of discontinued operations consist of our Aerospace segment, for which we entered into a definitive agreement to sell on November 4, 2025. On March 16, 2026, we completed the sale for a purchase price of approximately $1,456.9 million, subject to certain adjustments as set forth in the Purchase Agreement, which adjustments we expect to be finalized during 2026. Income from discontinued operations, net of income tax expense, was $798.7 million for the six months ended June 30, 2026, as compared to $24.8 million for the six months ended June 30, 2025. See Note 3, "Discontinued Operations," included in Part I, Item 1, "Notes to Consolidated Financial Statements," within this quarterly report on Form 10-Q for more information.
Previous wording
Cash flows used for operating activities were $19.4 million for the three months ended March 31, 2026, as compared to cash provided by operating activities of $9.2 million for the three months ended March 31, 2025. Significant changes in cash flows provided by operating activities and the reasons for such changes were as follows:
Current wording
Cash flows used for operating activities were $57.9 million for the six months ended June 30, 2026, as compared to cash provided by operating activities of $39.4 million for the six months ended June 30, 2025. Significant changes in cash flows provided by operating activities and the reasons for such changes were as follows:
Previous wording
•For the three months ended March 31, 2026, we reported a use of $167.2 million in cash flows, based on reported net income of $800.8 million, which includes a $51.8 million loss from continuing operations and $852.6 million income from discontinued operations, and after considering the effects of non-cash items related to depreciation, amortization, and gain on dispositions of assets, amortization of debt issuance costs, changes in deferred income taxes, stock-based compensation, provision for losses on accounts receivable, and other operating activities. For the three months ended March 31, 2025, we generated $23.5 million in cash flows based on reported net income of $12.4 million, which includes $1.9 million income from continuing operations and $10.5 million income from discontinued operations, and after considering the effects of similar non-cash items.
Current wording
•For the six months ended June 30, 2026, we reported a use of $192.3 million in cash flows, based on reported net income of $814.2 million, which includes a $15.5 million loss from continuing operations and $798.7 million income from discontinued operations, and after considering the effects of non-cash items related to depreciation, amortization, and gain on dispositions of assets, amortization of debt issuance costs, changes in deferred income taxes, stock-based compensation, provision for losses on accounts receivable, and other operating activities. For the six months ended June 30, 2025, we generated $54.8 million in cash flows based on reported net income of $29.1 million, which includes $4.4 million income from continuing operations and $24.8 million income from discontinued operations, and after considering the effects of similar non-cash items.
Previous wording
•Increases in accounts receivable resulted in a use of cash of $23.0 million and $14.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively. The increased use of cash for each of the three month periods is due primarily to the timing of sales and collection of cash related thereto within the periods. Days sales outstanding of receivables increased seven days through the three months ended March 31, 2026, and increased three days through the three months ended March 31, 2025.
Current wording
•Increases in accounts receivable resulted in a use of cash of $48.7 million and $29.7 million for the six months ended June 30, 2026 and 2025, respectively. The increased use of cash for each of the six month periods is due primarily to the timing of sales and collection of cash related thereto within the periods. Days sales outstanding of receivables increased 14 days through the six months ended June 30, 2026 primarily due to increased sales with customers that generally have longer payment terms, and increased one day through the six months ended June 30, 2025.
Previous wording
•We increased our investment in inventory by $16.6 million and $4.6 million for the three months ended March 31, 2026 and the three months ended March 31, 2025, respectively. Our days sales in inventory increased five days through the three months ended March 31, 2026 and through the three months ended March 31, 2025, as we continued to manage inventory levels, considering our supply needs, and balanced with sales growth across our segments.
Current wording
•We increased our investment in inventory by $15.5 million and decreased our investment in inventory by $1.3 million for the six months ended June 30, 2026 and the six months ended June 30, 2025, respectively. Our days sales in inventory decreased five days through the six months ended June 30, 2026, and decreased seven days through the six months ended June 30, 2025, as we continued to manage inventory levels, considering our supply needs, and balanced with sales growth across our segments.
Previous wording
•A decrease in prepaid expenses and other assets resulted in a source of cash of $4.6 million and $3.9 million for the three months ended March 31, 2026, and 2025, respectively. These changes were primarily a result of the timing of payments made for income taxes and certain operating expenses.
Current wording
•A decrease in prepaid expenses and other assets resulted in a source of cash of $7.4 million for the six months ended June 30, 2026 and an increase in prepaid expenses resulted in a use of cash of $1.4 million for the six months ended June 30, 2025. These changes were primarily a result of the timing of payments made for income taxes and certain operating expenses.
Previous wording
•An increase in accounts payable and accrued liabilities resulted in a source of cash of $182.8 million and $1.1 million for the three months ended March 31, 2026, and 2025, respectively. The increase in accounts payable and accrued liabilities for the three months ended March 31, 2026, includes a liability for estimated tax payments of $194.5 million related to the gain on the sale of Aerospace. Days accounts payable on hand (excluding the impact of the estimated tax payment for the three months ended March 31, 2026) decreased by two days through each of the three months ended March 31, 2026 and 2025. Our days accounts payable on hand fluctuate primarily as a result of the timing of payments made to suppliers and the mix of vendors and related terms.
Current wording
•An increase in accounts payable and accrued liabilities resulted in a source of cash of $191.2 million and $14.5 million for the six months ended June 30, 2026, and 2025, respectively. The increase in accounts payable and accrued liabilities for the six months ended June 30, 2026, includes a liability for estimated tax payments of $164.3 million related to the gain on the sale of Aerospace. Days accounts payable on hand (excluding the impact of the estimated tax payment for the six months ended June 30, 2026) decreased by 14 days through the six months ended June 30, 2026 and increased one day through the six months ended June 30, 2025. Our days accounts payable on hand fluctuate primarily as a result of the timing of payments made to suppliers and the mix of vendors and related terms.
Previous wording
Net cash provided by investing activities for the three months ended March 31, 2026 was $1,431.3 million, while net cash used for investing activities was $29.6 million during the three months ended March 31, 2025. During the three months ended March 31, 2026, we invested $5.2 million in capital expenditures, as we continued our investment in growth, capacity and productivity-related capital projects. We also received combined net proceeds of $1,436.5 million from the sale of our Aerospace business and disposition of property and equipment. During the three months ended March 31, 2025, we invested $12.9 million in capital expenditures, paid $37.2 million, net of cash acquired, to acquire GMT Aerospace, and received net proceeds of $20.5 million from the sale of our Arrow Engine business and disposition of property and equipment.
Current wording
Net cash provided by investing activities for the six months ended June 30, 2026 was $1,423.8 million, while net cash used for investing activities was $46.0 million during the six months ended June 30, 2025. During the six months ended June 30, 2026, we invested $13.1 million in capital expenditures, as we continued our investment in growth, capacity and productivity-related capital projects. We also received combined net proceeds of $1,436.9 million from the sale of our Aerospace business and disposition of property and equipment. During the six months ended June 30, 2025, we invested $30.0 million in capital expenditures, paid $37.2 million, net of cash acquired, to acquire GMT Aerospace, and received net proceeds of $21.2 million from the sale of our Arrow Engine business and disposition of property and equipment.
Previous wording
Net cash used for financing activities was $132.3 million for the three months ended March 31, 2026, while net cash provided by financing activities was $30.1 million during the three months ended March 31, 2025. During the three months ended March 31, 2026, we made net repayments of $72.7 million on our revolving credit facilities, purchased $54.5 million of our outstanding common stock, used a net cash amount of $3.5 million related to our stock compensation arrangements, paid dividends of $1.5 million, and paid $0.1 million related to other financing liabilities. Our reported net proceeds from borrowings on our revolving credit facilities considers the impact of foreign currency translation. During the three months ended March 31, 2025, we received net proceeds of $35.3 million from borrowings on our revolving credit facilities, paid $1.3 million for debt financing fees, purchased $0.5 million of outstanding common stock, used a net cash amount of $1.8 million related to our stock compensation arrangements, paid dividends of $1.6 million, and paid $0.1 million related to other financing liabilities.
Current wording
Net cash used for financing activities was $153.4 million for the six months ended June 30, 2026, while net cash provided by financing activities was $13.7 million during the six months ended June 30, 2025. During the six months ended June 30, 2026, we made net repayments of $72.7 million on our revolving credit facilities, purchased $73.5 million of our outstanding common stock, used a net cash amount of $4.4 million related to our stock compensation arrangements, paid dividends of $3.0 million, and received $0.1 million related to other financing liabilities. Our reported net proceeds from borrowings on our revolving credit facilities considers the impact of foreign currency translation. During the six months ended June 30, 2025, we received net proceeds of $22.2 million from borrowings on our revolving credit facilities, paid $1.3 million for debt financing fees, purchased $2.3 million of outstanding common stock, used a net cash amount of $1.8 million related to our stock compensation arrangements, paid dividends of $3.3 million, and received $0.2 million related to other financing liabilities.
Previous wording
Beginning April 15, 2026, we may redeem all or part of the Senior Notes at par (100% of principal amount), plus accrued and unpaid interest, if any, to the redemption date.
Current wording
We may redeem all or part of the Senior Notes at par (100% of principal amount), plus accrued and unpaid interest, if any, to the redemption date.
Previous wording
For the three months ended March 31, 2026, our consolidated subsidiaries that do not guarantee the Senior Notes represented 32% of the total of guarantor and non-guarantor net sales, treating each as a consolidated group and excluding intercompany transactions between guarantor and non-guarantor subsidiaries. In addition, our non-guarantor subsidiaries represented 18% and 11% of the total guarantor and non-guarantor assets and liabilities, respectively, as of March 31, 2026, treating the guarantor and non-guarantor subsidiaries each as a consolidated group.
Current wording
For the six months ended June 30, 2026, our consolidated subsidiaries that do not guarantee the Senior Notes represented 39% of the total of guarantor and non-guarantor net sales, treating each as a consolidated group and excluding intercompany transactions between guarantor and non-guarantor subsidiaries. In addition, our non-guarantor subsidiaries represented 16% and 10% of the total guarantor and non-guarantor assets and liabilities, respectively, as of June 30, 2026, treating the guarantor and non-guarantor subsidiaries each as a consolidated group.
Previous wording
Amounts drawn under our revolving credit facility fluctuate daily based upon our working capital and other ordinary course needs. Availability under our revolving credit facility depends upon, among other things, compliance with our Credit Agreement's financial covenants. Our Credit Agreement contains various negative and affirmative covenants and other requirements affecting us and our subsidiaries, including the ability to, subject to certain exceptions and limitations, incur debt, liens, mergers, investments, loans, advances, guarantee obligations, acquisitions, asset dispositions, sale-leaseback transactions, hedging agreements, dividends and other restricted payments, transactions with affiliates, restrictive agreements and amendments to charters, bylaws, and other material documents. The terms of our Credit Agreement require us and our subsidiaries to meet certain restrictive financial covenants and ratios computed quarterly, including a maximum total net leverage ratio (total consolidated indebtedness plus outstanding amounts under the accounts receivable securitization facility, less the aggregate amount of certain unrestricted cash and unrestricted permitted investments, as defined, over consolidated EBITDA, as defined) and a minimum interest expense coverage ratio (consolidated EBITDA, as defined, over the sum of consolidated cash interest expense, as defined, and preferred dividends, as defined). Our permitted total net leverage ratio under the Credit Agreement is 4.00 to 1.00 as of March 31, 2026. If we were to complete an acquisition which qualifies for a Covenant Holiday Period, as defined in our Credit Agreement, then our permitted total net leverage ratio cannot exceed 4.50 to 1.00 during that period. Our actual total net leverage ratio was 1.84 to 1.00 at March 31, 2026. Our permitted interest expense coverage ratio under the Credit Agreement is 3.00 to 1.00 as of March 31, 2026. Our actual interest expense coverage ratio was 5.62 to 1.00 at March 31, 2026. In December 2025 and March 2026, we amended the Credit Agreement to update certain definitions used in ratio and indebtedness calculations due to the sale of the Aerospace segment. At March 31, 2026, we were in compliance with our financial covenants.
Current wording
Amounts drawn under our revolving credit facility fluctuate daily based upon our working capital and other ordinary course needs. Availability under our revolving credit facility depends upon, among other things, compliance with our Credit Agreement's financial covenants. Our Credit Agreement contains various negative and affirmative covenants and other requirements affecting us and our subsidiaries, including the ability to, subject to certain exceptions and limitations, incur debt, liens, mergers, investments, loans, advances, guarantee obligations, acquisitions, asset dispositions, sale-leaseback transactions, hedging agreements, dividends and other restricted payments, transactions with affiliates, restrictive agreements and amendments to charters, bylaws, and other material documents. The terms of our Credit Agreement require us and our subsidiaries to meet certain restrictive financial covenants and ratios computed quarterly, including a maximum total net leverage ratio (total consolidated indebtedness plus outstanding amounts under the accounts receivable securitization facility, less the aggregate amount of certain unrestricted cash and unrestricted permitted investments, as defined, over consolidated EBITDA, as defined) and a minimum interest expense coverage ratio (consolidated EBITDA, as defined, over the sum of consolidated cash interest expense, as defined, and preferred dividends, as defined). Our permitted total net leverage ratio under the Credit Agreement is 4.00 to 1.00 as of June 30, 2026. If we were to complete an acquisition which qualifies for a Covenant Holiday Period, as defined in our Credit Agreement, then our permitted total net leverage ratio cannot exceed 4.50 to 1.00 during that period. Our actual total net leverage ratio was 1.77 to 1.00 at June 30, 2026. Our permitted interest expense coverage ratio under the Credit Agreement is 3.00 to 1.00 as of June 30, 2026. Our actual interest expense coverage ratio was 21.21 to 1.00 at June 30, 2026. In December 2025 and March 2026, we amended the Credit Agreement to update certain definitions used in ratio and indebtedness calculations due to the sale of the Aerospace segment. At June 30, 2026, we were in compliance with our financial covenants.
Previous wording
(3) Includes $1.2 million of finance leases. The Credit Agreement allows up to $240.0 million in cash netting.
Current wording
(3) Includes $1.0 million of finance leases. The Credit Agreement allows up to $240.0 million in cash netting.
Previous wording
At March 31, 2026, we had no amounts outstanding under our revolving credit facility and had $243.8 million available after giving effect to $6.2 million of letters of credit issued and outstanding. At December 31, 2025, we had $72.8 million outstanding under our revolving credit facility and had $171.2 million available after giving effect to $6.0 million of letters of credit issued and outstanding. Our letters of credit are used for a variety of purposes, including support of certain operating lease agreements, vendor payment terms and other subsidiary operating activities, and to meet various states' requirements to self-insure workers' compensation claims, including incurred but not reported claims. After consideration of leverage restrictions contained in the Credit Agreement, as of March 31, 2026 we had $190.1 million of borrowing capacity available for general corporate purposes. Our borrowing capacity was not reduced by leverage restrictions contained in the Credit Agreement as of December 31, 2025.
Current wording
At June 30, 2026, we had no amounts outstanding under our revolving credit facility and had $243.8 million available after giving effect to $6.2 million of letters of credit issued and outstanding. At December 31, 2025, we had $72.8 million outstanding under our revolving credit facility and had $171.2 million available after giving effect to $6.0 million of letters of credit issued and outstanding. Our letters of credit are used for a variety of purposes, including support of certain operating lease agreements, vendor payment terms and other subsidiary operating activities, and to meet various states' requirements to self-insure workers' compensation claims, including incurred but not reported claims. After consideration of leverage restrictions contained in the Credit Agreement, as of June 30, 2026 we had $203.6 million of borrowing capacity available for general corporate purposes. Our borrowing capacity was not reduced by leverage restrictions contained in the Credit Agreement as of December 31, 2025.
Previous wording
Our weighted average borrowings during the three months ended March 31, 2026 approximated $477.8 million, compared to $428.8 million during the three months ended March 31, 2025. Our weighted average borrowings increased year-over-year primarily due to borrowings made on our revolving credit facility to fund share repurchases.
Current wording
Our weighted average borrowings during the six months ended June 30, 2026 approximated $438.9 million, compared to $436.3 million during the six months ended June 30, 2025. Our weighted average borrowings increased year-over-year primarily due to borrowings made on our revolving credit facility to fund share repurchases.
Previous wording
The majority of our cash on hand as of March 31, 2026 is located within the U.S. Our available funding under our revolving credit facility is $190.1 million at March 31, 2026. Based on forecasted cash sources and requirements inherent in our business plans, we believe that our liquidity and capital resources, including anticipated cash flows from operations, will be sufficient to meet our debt service, capital expenditure and other short-term and long-term obligations for the foreseeable future, as well as dividends and share repurchases.
Current wording
The majority of our cash on hand as of June 30, 2026 is located within the U.S. Our available funding under our revolving credit facility is $203.6 million at June 30, 2026. Based on forecasted cash sources and requirements inherent in our business plans, we believe that our liquidity and capital resources, including anticipated cash flows from operations, will be sufficient to meet our debt service, capital expenditure and other short-term and long-term obligations for the foreseeable future, as well as dividends and share repurchases.
Previous wording
As of March 31, 2026, the majority of our cash was invested in highly liquid instruments, including U.S. Treasury‑backed money market funds and cash deposits with high‑credit‑quality financial institutions designated as Globally Systemically Important Banks. These investments are available on a same‑day basis, earn interest at a rate of approximately 3.5%, and qualify as permitted investments under our Credit Agreement. We intend to maintain these investments until they are deployed for organic growth initiatives, strategically aligned acquisition opportunities, share repurchases, or a combination thereof. During the three months ended March 31, 2026, we earned interest income of $2.0 million.
Current wording
As of June 30, 2026, the majority of our cash was invested in liquid instruments, including U.S. Treasury‑backed money market funds and cash deposits with high‑credit‑quality financial institutions designated as Globally Systemically Important Banks. These investments earn interest at an average rate of 3.7%, and qualify as permitted investments under our Credit Agreement. We intend to maintain these investments until they are deployed for organic growth initiatives, strategically aligned acquisition opportunities, share repurchases, or a combination thereof. During the six months ended June 30, 2026, we earned interest income of $12.9 million.
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Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
The following table summarizes financial information for our reportable segments for the six months ended June 30, 2026 and 2025 (dollars in thousands):
Current report — wording carried from elsewhere
The following table summarizes detail on the year-over-year sales growth percentages for our reportable segments for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025:
Current report — wording carried from elsewhere
•Interest income earned on the invested cash proceeds from the sale of our Aerospace business; and
Current report — wording carried from elsewhere
Corporate. Corporate expenses consist of the following (dollars in millions):
Current report — wording carried from elsewhere
Discontinued Operations. The results of discontinued operations consist of our Aerospace segment, for which we entered into a definitive agreement to sell on November 4, 2025. On March 16, 2026, we completed the sale for a purchase price of approximately $1,456.9 million, subject to certain adjustments as set forth in the Purchase Agreement, which adjustments we expect to be finalized during 2026. Income (loss) from discontinued operations, net of income tax expense, was a loss of $53.9 million for the three months ended June 30, 2026, as compared to income of $14.3 million for the three months ended June 30, 2025. See Note 3, "Discontinued Operations," included in Part I, Item 1, "Notes to Consolidated Financial Statements," within this quarterly report on Form 10-Q for more information.
Current report — wording carried from elsewhere
See below for a discussion of operating results by segment.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Interest income earned on the invested cash proceeds from the sale of our Aerospace business;