APTARGROUP INC

Previous wording

For further discussion on net sales by reporting segment, please refer to the analysis of segment net sales and segment Adjusted EBITDA on the following pages.

Current wording

For discussion regarding net sales by reporting segment, please refer to the analysis of segment net sales and segment Adjusted EBITDA on the following pages.

Previous wording

For the first nine months of 2024, COS as a percent of net sales decreased to 62.5% compared to 64.1% in the same period in 2023. This decrease is mainly due to an improved mix of our higher value Pharma services and product sales along with improved operational performance and cost management initiatives as discussed above. During the prior year period, we also incurred approximately $16 million of incremental costs related to our injectables Enterprise Resource Planning (“ERP”) system implementation which did not repeat during 2024.

Current wording

For the first three months of 2025, cost of sales ("COS") as a percent of net sales decreased to 62.1% compared to 63.7% in the same period in 2024. This decrease is mainly due to an improved mix of higher Pharma royalties and product sales along with savings from our cost management initiatives.

Previous wording

Selling, research & development and administrative expenses (“SG&A”) increased by approximately $3.5 million to $141.6 million in the third quarter of 2024 compared to $138.1 million during the same period in 2023. Excluding changes in foreign currency rates, SG&A increased by approximately $3.3 million in the quarter. Improvements from our cost management initiatives were more than offset by higher compensation costs, including accruals related to our current short-term incentive compensation and certain equity compensation programs. SG&A as a percentage of net sales increased slightly to 15.6% in the third quarter of 2024 compared to 15.5% in the same period in 2023.

Current wording

Our selling, research & development and administrative expenses (“SG&A”) increased by approximately $2.5 million to $155.3 million in the first three months of 2025 compared to $152.8 million during the same period in 2024. Excluding changes in foreign currency rates, SG&A increased by approximately $5.8 million in the first three months of 2025 compared to the first three months of 2024. Improvements realized from our cost management initiatives for the first quarter of 2025 were more than offset by higher compensation costs, including higher accrual rates for certain equity compensation programs and higher hosting fees for our information systems. SG&A as a percentage of net sales increased to 17.5% in the first three months of 2025 compared to 16.7% in the same period in 2024.

Previous wording

Depreciation and amortization expenses increased by approximately $12.1 million to $196.3 million in the first nine months of 2024 compared to $184.2 million during the same period a year ago. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $12.2 million in the first nine months of 2024 compared to the same period a year ago. Incremental depreciation and amortization costs related to our acquisitions of iD SCENT and Gulf Closures were $0.3 million. As discussed above, this increase is due to higher internal capital investments made during the prior years. Depreciation and amortization as a percentage of net sales increased to 7.2% in the first nine months of 2024 compared to 7.0% in the same period of the prior year.

Current wording

Depreciation and amortization expenses increased by approximately $1.3 million to $65.6 million in the first three months of 2025 compared to $64.3 million during the same period a year ago. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $3.0 million in the first quarter of 2025 compared to the same period a year ago. This increase is due to higher internal capital investments made during the prior years to support our growth strategy. Depreciation and amortization as a percentage of net sales increased to 7.4% in the first three months of 2025 compared to 7.0% in the same period of the prior year.

Previous wording

As part of our ongoing efforts to better leverage our fixed cost base through growth and cost reduction measures, during the three and nine months ended September 30, 2024, we recognized $3.9 million and $9.7 million of operational restructuring costs related to this initiative, respectively. For the three and nine months ended September 30, 2023, we recognized $6.6 million and $20.1 million of restructuring costs related to this initiative, respectively. The cumulative expense incurred as of September 30, 2024 was $61.3 million.

Current wording

For the three months ended March 31, 2025 and March 31, 2024, we recognized $2.0 million and $3.5 million, respectively, of restructuring costs related to our initiatives to better leverage our fixed cost base through growth and cost reduction measures. The cumulative expense incurred as of March 31, 2025 was $66.7 million.

Previous wording

Restructuring costs for the three and nine months ended September 30, 2024 and 2023 were as follows:

Current wording

Restructuring costs for the three months ended March 31, 2025 and 2024 were as follows:

Previous wording

For the first nine months of 2024, operating income increased approximately $56.6 million to $376.4 million compared to $319.8 million in the same period of the prior year. Excluding changes in foreign currency rates, operating income increased by approximately $55.1 million in the first nine months of 2024 compared to the same period a year ago as income from our strong Pharma segment growth and improved operational performance and cost management initiatives drove the increase. Operating income as a percentage of net sales increased to 13.8% in the first nine months of 2024 compared to 12.1% for the same period in the prior year.

Current wording

For the first three months of 2025, operating income increased by approximately $1.4 million to $113.4 million compared to $112.1 million in the same period of the prior year. Excluding changes in foreign currency rates, operating income increased by approximately $5.2 million in the first three months of 2025 compared to the same period a year ago. This increase was driven by strong growth from our Pharma segment and effective cost management efforts. Operating income as a percentage of net sales increased to 12.8% in the first three months of 2025 compared to 12.2% for the same period in the prior year.

Previous wording

Interest expense increased approximately $2.3 million to $12.3 million in the third quarter of 2024 compared to $10.0 million for the same period of the prior year. During 2024, we repaid more than $370 million of private placement debt having interest rates between 1.2% and 3.5% and initiated term loan and revolving credit facility borrowings having current interest rates between 4.5% and 6.0%.

Current wording

Interest expense increased $1.2 million to $11.4 million in the first three months of 2025 compared to $10.2 million during the same period in 2024. During 2024, we refinanced more than $370 million of private placement debt having interest rates between 1.2% and 3.5% and entered into a new term loan and revolving credit facility borrowings having current variable interest rates between 3.4% and 5.8%. See Note 6 - Debt to the Condensed Consolidated Financial Statements for further details.

Previous wording

Net other income increased $5.6 million to $9.8 million of income for the nine months ended September 30, 2024 from $4.3 million of income in the same period of the prior year. Interest income increased by approximately $6.8 million. This increase, along with the pension curtailment gain discussed above, more than compensated for the lower contributions from our equity results from affiliates and the change in the fair value of our PureCycle investment which resulted in $0.3 million less income during the first nine months of 2024 compared to the prior year period.

Current wording

Net other income increased $1.5 million to $3.9 million of income for the three months ended March 31, 2025 from $2.4 million of income in the same period of the prior year. Approximately $2.3 million of higher equity results from affiliates more than compensated for the change in the fair value of our PureCycle investment, which resulted in $1.7 million less income during the first three months of 2025 compared to the prior year period.

Previous wording

The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings and related estimated full year-taxes, adjusted for the impact of discrete quarterly items.

Current wording

The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings and related estimated full year-taxes, adjusted for the impact of discrete quarterly items. The effective tax rate for the three months ended March 31, 2025 and 2024 was 25.8% and 20.5%, respectively. The higher effective tax rate for the three months ended March 31, 2025 reflects the estimated impact of the temporary 2025 surtax enacted in France during the quarter and lower tax benefits from share-based compensation. The tax rate for 2024 also reflects tax incentives in certain non-U.S. jurisdictions from intellectual property development activities.

Previous wording

We reported net income attributable to AptarGroup, Inc. of $100.0 million and $273.6 million in the three and nine months ended September 30, 2024, respectively, compared to $84.3 million and $222.1 million for the same periods in the prior year.

Current wording

We reported net income attributable to AptarGroup, Inc. of $78.8 million in the three months ended March 31, 2025 compared to $83.1 million for the same period in the prior year.

Previous wording

Net sales for the first nine months of 2024 increased by 9% to $1.24 billion compared to $1.14 billion in the first nine months of 2023. Changes in currency rates did not impact net sales during the first nine months of 2024. Therefore, core sales also increased by 9% in the first nine months of 2024 compared to the same period in the prior year. Core sales of products included in our prescription drug division increased 16% on continued strong demand for our allergic rhinitis, central nervous system and emergency medicine systems and higher customer royalties. Core sales in the consumer health care market were flat as higher demand for our nasal decongestant and eye care solutions was offset by lower sales of dermal and cough and cold products. Core sales of our products to the injectables market improved by 5% due primarily to the prior year shutdown of operations for the implementation of our new ERP system, which more than compensated for service revenue that did not repeat. Core sales of our active material science solutions increased 6% mainly on growth in our probiotics, diabetes and oral solid dose applications after a period of destocking.

Current wording

Net sales for the first three months of 2025 increased by approximately 1% to $409.5 million compared to $407.3 million in the first three months of 2024. Changes in currency rates negatively impacted net sales by 2% during the first three months of 2025. Therefore, core sales increased by 3% in the first three months of 2025 compared to the same period in the prior year. Strong volume growth and royalty increases more than compensated for lower tooling sales and pricing adjustments to secure longer term contracts. Core sales of products included in our prescription drug division increased 10% on continued strong demand for our central nervous system and emergency medicine solutions along with higher revenues received from customer royalties. Core sales in the consumer health care market decreased 10% as higher demand for our eye care solutions was offset by lower sales of nasal decongestant, nasal saline and cough and cold products. Injectables core sales declined by 8% facing a challenging comparison from the prior year quarter. The injectables division grew 54% in the first quarter of 2024 during a catch-up period following an enterprise resource planning system implementation. Core sales of our active material science solutions increased 11% mainly on higher demand for our diabetes protection technologies. Digital Health currently does not represent a significant percentage of the total Pharma sales.

Previous wording

Adjusted EBITDA in the first nine months of 2024 increased 14% to $425.3 million compared to $371.5 million in the same period of the prior year. This positive impact was mainly due to the profitability on strong core sales growth in prescription, injectables and active material solutions. During the prior year, we also incurred additional expenses related to our injectables ERP system implementation which did not repeat. Overall, our Adjusted EBITDA margin improved to 34.2% in the first nine months of 2024 compared to 32.7% in the first nine months of 2023.

Current wording

Adjusted EBITDA in the first three months of 2025 increased 8% to $142.5 million compared to $132.2 million in the same period of the prior year. This increase was mainly due to the strong core sales growth in prescription and active material solutions along with higher royalty income as discussed above. Overall, our Adjusted EBITDA margin improved to 34.8% in the first three months of 2025 compared to 32.5% in the first three months of 2024.

Previous wording

For the first nine months of 2024, reported net sales of $951.7 million decreased 3% compared to $980.0 million reported in the first nine months of the prior year. Changes in currency rates and our acquisition of iD SCENT did not have an impact on segment sales. Therefore, core sales also decreased 3% in the first nine months of 2024 compared to the same period in the prior year. Core sales of our products to the beauty market during the first nine months of 2024 decreased 7% due to the lower tooling sales and difficult European comparisons to prior year mentioned above. Personal care core sales improved 1% over the prior year as higher sales of our body and skin care products more than compensated for lower sales of our sun care and personal cleansing applications. Core sales of our home care market products improved 10% on higher demand from our customers selling air care and automotive products.

Current wording

For the first three months of 2025, reported net sales of $305.7 million decreased 7% compared to $327.3 million reported in the first three months of the prior year. Changes in currency rates negatively impacted segment sales by 4%. Therefore, core sales decreased 3% in the first three months of 2025 compared to the same period in the prior year. Volume gains in North America, Latin America and Asia could not compensate for lower European volumes. Core sales of our products to the beauty market decreased 11% during the first three months of 2025 due to softer European demand for our prestige fragrance and facial skin care products. However, personal care core sales improved 9% over the prior year on higher sales of our hair care and body and skin care products. Also, core sales of our home care market products improved 15% on higher demand from our customers selling air care and surface cleaning products.

Previous wording

Operations that sell dispensing closures, sealing solutions and food service trays to the food, beverage, personal care, home care, beauty and healthcare markets form our Aptar Closures segment. Aptar's food protection business and elastomeric flow-control technology business continue to report through the Aptar Closures segment.

Current wording

Operations that sell dispensing closures, sealing solutions and food service trays to the food, beverage, personal care, home care, beauty and healthcare markets form our Aptar Closures segment. Our food protection business and elastomeric flow-control technology business continue to report through the Aptar Closures segment.

Previous wording

Net sales for the first nine months of 2024 increased approximately 1% to $540.7 million compared to $533.1 million in the first nine months of 2023. Changes in currency rates negatively impacted net sales by 1% while our acquisition of Gulf Closures had no significant impact on net sales. Therefore, core sales increased approximately 2% in the first nine months of 2024 compared to the same period in the prior year. Core sales to the food market improved 3% compared to prior year on strong sales of our closures on sauces and condiments, dry spices and seasonings products. Core sales to our beverage customers increased 1% in the first nine months of 2024 compared to the same period of the prior year on improving bottled water and functional drink sales. Personal care declined slightly on lower sales of our hair care solutions, while other sales were consistent with prior year as strong sales of our laundry care products offset slightly lower sales of our dish care applications after the 2023 product launch mentioned above.

Current wording

Net sales for the first three months of 2025 decreased approximately 5% to $172.1 million compared to $180.8 million in the first three months of 2024. Changes in currency rates negatively impacted net sales by 3%. Therefore, core sales decreased approximately 2% in the first three months of 2025 compared to the same period in the prior year. During the first quarter of 2025, liquid coffee creamer product sales were reclassified from our food market to the beverage market to better align with how those products are currently managed. All prior period amounts have been revised to conform to current year presentation. While core product sales to our food and beverage markets each increased 6%, both were negatively impacted by lower tooling sales compared to the first three months of 2024 resulting in overall core sales to both markets remaining flat compared to the prior year period. For the food market, strong sales of our closures on granular and powders were offset by lower sales of our confectionary products. Core sales to our beverage customers during the first three months of 2025 were flat compared to the same period of the prior year as improving functional drink sales were offset by lower sales of our liquid coffee creamer products. Personal care declined on lower sales of our hair care solutions, while the other markets improved by 7% on strong sales of our laundry and dish care products.

Previous wording

Adjusted EBITDA in the first nine months of 2024 increased 6% to $86.3 million compared to $81.4 million reported in the same period of the prior year. Our profitability was positively impacted by the higher sales along with operational improvements and containing costs discussed above. These improvements more than compensate for a negative resin pass-through impact of $2.5 million. This led to our Adjusted EBITDA margin improving from 15.3% in the first nine months of 2023 to 16.0% during the first nine months of 2024.

Current wording

Adjusted EBITDA in the first three months of 2025 increased slightly to $27.3 million compared to $27.2 million reported in the same period of the prior year. Our profitability was positively impacted by the higher product sales discussed above along with our cost improvement initiatives which more than compensated for a lower tooling contribution. This led to our Adjusted EBITDA margin improving from 15.0% in the first three months of 2024 to 15.8% during the first three months of 2025.

Previous wording

Because of our international presence, movements in exchange rates may have a significant impact on the translation of the financial statements of our foreign subsidiaries. Our primary foreign exchange exposure is to the euro, but we also have foreign exchange exposure to the Chinese yuan, Brazilian real, Mexican peso, Swiss franc and other Asian, European and South American currencies. A weakening U.S. dollar has an additive effect. Conversely, a strengthening U.S. dollar relative to foreign currencies has a dilutive translation effect on our financial statements. In some cases, we sell products denominated in a currency different from the currency in which the related costs are incurred. Any changes in exchange rates on such inter-country sales could materially impact our results of operations. During the third quarter ended September 30, 2024, the U.S. dollar was weaker compared to most European currencies and the Chinese yuan while strengthening against most Latin American currencies, except for the Brazilian real. During the nine months ended September 30, 2024, the U.S. dollar was stronger compared to all currencies except the Colombian and Mexican pesos, Swiss franc and the British pound. This resulted in a neutral impact on our translated results during the third quarter and year-to-date period of 2024 when compared to the third quarter and year-to-date period of 2023.

Current wording

Because of our international presence, movements in exchange rates can have a significant impact on the translation of the financial statements of our foreign subsidiaries. Our primary foreign exchange exposure is to the euro, but we also have foreign exchange exposure to the Chinese yuan, Brazilian real, Argentine peso, Mexican peso, Swiss franc and other Asian, European and Latin American currencies. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on our financial statements. Conversely, a strengthening U.S. dollar has a dilutive effect. We manage our exposures to foreign exchange principally with forward exchange contracts to economically hedge recorded transactions and firm purchase and sales commitments denominated in foreign currencies.

Previous wording

Given our current level of leverage and our ability to generate cash flow from operations, we believe we are in a strong financial position to meet our business requirements in the foreseeable future. We have historically used cash flow from operations, our revolving and other credit facilities, proceeds from stock options and debt, as needed, as our primary sources of liquidity. Our primary uses of cash are to invest in equipment and working capital for the continued growth of our business, including facilities that are necessary to support our growth, pay quarterly dividends to stockholders, to make acquisitions and repurchase shares of our common stock that will contribute to the achievement of our strategic objectives. Due to uncertain macroeconomic conditions, including rising interest rates and the inflationary environment, in the event that customer demand decreases significantly for a prolonged period of time and adversely impacts our cash flows from operations, we would have the ability to restrict and significantly reduce capital expenditure levels and share repurchases, as well as reevaluate our acquisition strategy. A prolonged and significant reduction in capital expenditure levels could increase future repairs and maintenance costs as well as have a negative impact on operating margins if we were unable to invest in new innovative products.

Current wording

Given our current level of leverage and our ability to generate cash flow from operations, we believe we are in a strong financial position to meet our business requirements in the foreseeable future. We have historically used cash flow from operations, our revolving and other credit facilities, and proceeds from stock options, as needed, as our primary sources of liquidity. Our primary uses of cash are to invest in equipment, capacity expansions and as working capital for the continued growth of our business and to achieve our strategic objectives. We also use cash to pay quarterly dividends to stockholders, invest in the acquisition of new businesses and repurchase shares of our common stock. Due to uncertain macroeconomic conditions, including rising interest rates, inflation and the impact of tariffs and related trade restrictions, if there was a prolonged decrease in customer demand and that decrease adversely impacted our cash flows from operations, we would have the ability to restrict and significantly reduce capital expenditure levels and share repurchases, as well as reevaluate our acquisition strategy. A prolonged and significant reduction in capital expenditure levels could increase future repairs and maintenance costs as well as have a negative impact on operating margins if we were unable to invest in new innovative products.

Previous wording

Cash and equivalents and restricted cash increased to $325.5 million at September 30, 2024 from $223.6 million at December 31, 2023. Total short and long-term interest-bearing debt decreased from $1.14 billion at December 31, 2023 to $1.08 billion at September 30, 2024. The ratio of our Net Debt (interest-bearing debt less cash and cash equivalents) to Net Capital (stockholders’ equity plus Net Debt) decreased to 22.7% at September 30, 2024 from 28.3% at December 31, 2023. See the reconciliation under “Non-U.S. GAAP Measures.”

Current wording

Cash and equivalents and restricted cash decreased to $125.8 million at March 31, 2025 from $223.8 million at December 31, 2024. Total short and long-term interest-bearing debt decreased from $1.03 billion at December 31, 2024 to $1.01 billion at March 31, 2025. The ratio of our Net Debt (interest-bearing debt less cash and cash equivalents) to Net Capital (stockholders’ equity plus Net Debt) increased to 25.4% at March 31, 2025 from 24.4% at December 31, 2024. See the reconciliation under “Non-U.S. GAAP Measures.”

Previous wording

In the first nine months of 2024, our operations provided approximately $465.2 million in net cash flow compared to $355.6 million for the same period a year ago. In both periods, cash flow from operations was primarily derived from earnings before depreciation and amortization and better working capital management.

Current wording

In the first three months of 2025, our operations provided approximately $82.7 million in net cash flow compared to $92.3 million for the same period a year ago. In both periods, cash flow from operations was primarily derived from earnings before depreciation and amortization.

Previous wording

We used $225.7 million in cash for investing activities during the first nine months of 2024 compared to $239.3 million during the same period a year ago. Our investment in capital projects decreased $20.8 million during the first nine months of 2024 compared to the first nine months of 2023 as we completed larger projects that had significant spend in the prior year. The capital expenditures accrued within accounts payable, accrued and other liabilities was $21.3 million as of September 30, 2024 compared to $20.1 million as of September 30, 2023.

Current wording

We used $56.6 million in cash for investing activities during the first three months of 2025 compared to $76.6 million during the same period a year ago. Our investment in capital projects decreased $18.8 million during the first three months of 2025 compared to the first three months of 2024 as we completed larger projects that had higher spend in the prior year.

Previous wording

Financing activities used $137.7 million in cash during the first nine months of 2024 compared to $94.0 million in cash used by financing activities during the same period a year ago. The increased use of cash in the first nine months of 2024 is primarily related to the debt refinancing of $100.0 million of Senior Unsecured Notes in the first quarter of 2024, €200 million of Senior Unsecured Notes in the second quarter of 2024 and $50.0 million of Senior Unsecured Notes in the third quarter of 2024. This was partially offset by the new term loan of $166.0 million and increased borrowings on our amended revolving credit facility of $14.5 million.

Current wording

Financing activities used $134.8 million in cash during the first three months of 2025 compared to $35.8 million in cash used by financing activities during the same period a year ago. The increased use of cash in the first three months of 2025 is primarily related to $67.9 million of additional treasury stock purchases as compared to the prior year and $19.0 million less of proceeds from stock option exercises.

Previous wording

Aptar has a revolving credit facility (the “revolving credit facility”) with a syndicate of banks which provides us with unsecured financing of up to $600 million, which may be increased by up to $300 million subject to certain conditions. The revolving credit facility is available in the U.S. and to our wholly-owned UK subsidiary and can be drawn in various currencies including USD, EUR, GBP, and CHF. The revolving credit facility was set to mature in June 2026, but on July 2, 2024, we entered into a new amended and restated agreement (the “amended revolving credit facility”) that extended the maturity date to July 2029, subject to a maximum of two one-year extensions in certain circumstances, As of December 31, 2023, Aptar had utilized $36.5 million and €40.0 million ($44.2 million) under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. As of September 30, 2024, Aptar had utilized €200 million ($222.7 million) under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary.

Current wording

We have a revolving credit facility (the “revolving credit facility”) with a syndicate of banks which provides us with unsecured financing of up to $600 million, which may be increased by up to $300 million subject to certain conditions. The revolving credit facility is available in the U.S. and to our wholly-owned UK subsidiary and can be drawn in various currencies including USD, EUR, GBP, and CHF. The revolving credit facility was set to mature in June 2026, but on July 2, 2024, we entered into a new amended and restated agreement (the “amended revolving credit facility”) that extended the maturity date to July 2029, subject to a maximum of two one-year extensions in certain circumstances. As of December 31, 2024, €170.0 million ($176.0 million) was utilized under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. As of March 31, 2025, we had utilized $18.5 million and €130 million ($140.6 million) under the amended revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary.

Previous wording

On July 2, 2024, we entered into a term loan with a syndicate of banks (the “Term Loan”). The Term Loan matures in July 2027 and enabled drawings on the loan until September 30, 2024 and provided for unsecured financing of up to $330 million available in the U.S. Funds are to be used to refinance near-term maturities and for general corporate purposes. As of September 30, 2024, $166 millionwas utilized under the Term Loan facility and the unused portion expired.

Current wording

On July 2, 2024, we entered into a term loan with a syndicate of banks (the “Term Loan”). The Term Loan matures in July 2027 and enabled drawings on the loan until September 30, 2024 to be used to refinance near-term maturities and for general corporate purposes. As of March 31, 2025, $166 millionwas utilized under the Term Loan facility and the unused portion expired.

Previous wording

Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:

Current wording

Our amended revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:

Previous wording

Based upon the above consolidated leverage ratio covenant, we would have the ability to borrow approximately an additional $1.7 billion before the 3.50 to 1.00 maximum ratio requirement would be exceeded.

Current wording

Based upon the above consolidated leverage ratio covenant, we would have the ability to borrow approximately an additional $1.8 billion before the 3.50 to 1.00 maximum ratio requirement would be exceeded.

Previous wording

We expect earnings per share for the fourth quarter of 2024, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.22 to $1.30 and this guidance is based on an effective tax rate range of 20% to 22%. Our total 2024 estimated cash outlays for capital expenditures net of government grant proceeds are expected to be approximately $280 million to $300 million.

Current wording

We expect earnings per share for the second quarter of 2025, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.56 to $1.64 and this guidance is based on an effective tax rate range of 19% to 21%, due to a one-time tax benefit. Our total 2025 estimated cash outlays for capital expenditures net of government grant proceeds are expected to be approximately $280 million to $300 million.

Previous wording

•geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the recent events in the Middle East and the resulting indirect impact on demand from our customers selling their products into these countries, as well as rising input costs and certain supply chain disruptions;

Current wording

•geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the resulting indirect impact on demand from our customers selling their products into these countries, and certain supply chain disruptions;

Previous wording

•fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs (particularly resin, metal, anodization costs and energy costs);

Current wording

•fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs;