APTARGROUP, INC.

Previous 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.

Current wording

For the first six months of 2025, COS as a percentage of net sales decreased to 62.1% compared to 63.0% in the same period in 2024. This decrease is mainly due to the improved mix of higher-margin Pharma product sales and royalties along with improved operational performance and savings from our cost management initiatives discussed above.

Previous 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.

Current wording

Selling, research & development and administrative expenses (“SG&A”) increased by approximately $1.8 million to $151.1 million in the second quarter of 2025 compared to $149.3 million during the same period in 2024. Excluding changes in foreign currency rates, SG&A decreased by approximately $1.8 million in the quarter mainly as a result of our cost optimization efforts. Also, higher bad debt costs due to a reversal of a specific customer reserve in the 2024 period were more than compensated by lower costs to evaluate potential acquisition targets in the 2025 period. SG&A as a percentage of net sales decreased to 15.6% in the second quarter of 2025 compared to 16.4% in the same period in 2024.

Previous 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.

Current wording

Depreciation and amortization expenses increased by approximately $6.2 million to $135.6 million in the first six months of 2025 compared to $129.3 million during the same period a year ago. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $6.3 million in the first six months of 2025 compared to the same period a year ago. As discussed above, this increase is due to higher capital investments made during the prior years to support our growth strategy. Depreciation and amortization as a percentage of net sales increased to 7.3% in the first six months of 2025 compared to 7.1% in the same period of the prior year.

Previous 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.

Current wording

For the three and six months ended June 30, 2025, we recognized $1.6 million and $3.6 million, respectively of restructuring costs related to our initiatives to better leverage our fixed cost base through growth and cost reduction measures. For the three and six months ended June 30, 2024, we recognized $2.3 million and $5.8 million of restructuring costs related to these initiatives, respectively. The cumulative expense incurred as of June 30, 2025 was $68.3 million.

Previous wording

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

Current wording

Restructuring costs for the three and six months ended June 30, 2025 and 2024 were as follows:

Previous 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.

Current wording

For the first six months of 2025, operating income increased by approximately $19.7 million to $257.8 million compared to $238.1 million in the same period of the prior year. Excluding changes in foreign currency rates, operating income increased by approximately $19.3 million in the first six months of 2025 compared to the same period a year ago. This increase was driven by sales growth from our Aptar Pharma segment and effective cost management efforts. Operating income as a percentage of net sales increased to 13.9% in the first six months of 2025 compared to 13.0% for the same period in the prior year.

Previous 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.

Current wording

Interest expense increased approximately $0.8 million to $10.9 million in the second quarter of 2025 compared to $10.1 million for the same period of the prior year. During 2024, we replaced more than $370 million of private placement debt having interest rates between 1.2% and 3.5% with term loan and revolving credit facility borrowings having current variable interest rates between 2.98% and 5.83%.

Previous 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.

Current wording

We reported net income attributable to AptarGroup, Inc. of $111.7 million and $190.5 million in the three and six months ended June 30, 2025, respectively, compared to $90.5 million and $173.6 million for the same periods in the prior year.

Previous 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.

Current wording

Net sales for the first six months of 2025 increased by approximately 4% to $852.1 million compared to $821.8 million in the first six months of 2024. Changes in currency rates negatively impacted net sales by 1% during the first six months of 2025. Therefore, core sales increased by 3% in the first six 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 9% 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 12% 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 increased by 1% despite a challenging comparison to the first half of 2024 which experienced a 14% increase in revenues related to 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 active film and diabetes protection technologies. Digital Health currently does not represent a significant percentage of the total Pharma sales.

Previous 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.

Current wording

Adjusted EBITDA in the first six months of 2025 increased 9% to $299.3 million compared to $273.7 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 35.1% in the first six months of 2025 compared to 33.3% in the first six months of 2024.

Previous 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.

Current wording

For the first six months of 2025, reported net sales of $640.6 million decreased 1% compared to $648.8 million reported in the first six months of the prior year. Changes in currency rates did not have a significant impact on the 2025 results. Therefore, core sales also decreased 1% in the first six months of 2025 compared to the same period in the prior year. Sales gains in North America, Latin America and Asia could not compensate for lower European and specialty skincare applications for the indie brand market. Core sales of our products to the beauty market decreased 7% during the first six months of 2025 due to softer European demand for our prestige fragrance technologies and facial skin care products. However, personal care core sales improved 10% 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 7% on higher demand from our customers selling air care and surface cleaning products.

Previous wording

Adjusted EBITDA in the first three months of 2025 decreased 10% to $37.1 million compared to $41.1 million reported in the same period in the prior year. Savings realized from our cost improvement initiatives could not fully compensate for the lower beauty volumes mentioned above. Therefore, our Adjusted EBITDA margin declined from 12.6% in the first three months of 2024 to 12.1% during the first three months of 2025.

Current wording

Adjusted EBITDA in the first six months of 2025 decreased 2% to $84.2 million compared to $85.8 million reported in the same period in the prior year. Improved results from our equity method investments and savings realized from our cost improvement initiatives could not fully offset the lower beauty and indie brand skin care volumes mentioned above. Therefore, our Adjusted EBITDA margin declined slightly from 13.2% in the first six months of 2024 to 13.1% during the first six months of 2025.

Previous 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.

Current wording

Net sales for the first six months of 2025 increased approximately 2% to $360.7 million compared to $354.9 million in the first six months of 2024. Changes in currency rates negatively impacted net sales by 1%. Therefore, core sales increased approximately 3% in the first six months of 2025 compared to the same period in the prior year. During the first six months 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 the current year presentation. While core product sales to our food and beverage markets each increased 7% and 4% respectively, both were negatively impacted by 2% lower tooling sales compared to the first six months of 2024. For the food market, we reported strong product sales of our closures for salad dressing, spread, jellies and honey, granulars and powders and Asian sauce products. Core sales to our beverage customers during the first six months of 2025 increased on improving functional drink application sales. Personal care core sales declined on lower tooling and sales of our hair care solutions while the other markets improved by 3% on stronger sales of our laundry and dish care products.

Previous 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.

Current wording

Adjusted EBITDA in the first six months of 2025 increased 9% to $59.1 million compared to $54.3 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 15.3% in the first six months of 2024 to 16.4% during the first six months of 2025.

Previous wording

In addition to our three reporting segments, we assign certain costs to “Corporate & Other,” which is presented separately in Note 16 – Segment Information of the Notes to the Condensed Consolidated Financial Statements. For Corporate & Other, Adjusted EBITDA (which excludes net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items) primarily includes certain professional fees, compensation and information system costs which are not allocated directly to our reporting segments.

Current wording

In addition to our three reporting segments, we assign certain costs to “Corporate & Other,” which is presented separately in Note 16 – Segment Information of the Notes to the Condensed Consolidated Financial Statements. For Corporate & Other, Adjusted EBITDA (which excludes net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items) primarily includes certain professional fees, compensation and information system costs along with certain equity method investments which are not allocated directly to our reporting segments.

Previous wording

For the first three months of 2025 Corporate & Other costs increased to $23.5 million compared to $21.6 million reported in the same period of the prior year. This increase is mainly related to higher incentive compensation costs, including higher accrual rates for certain equity compensation programs.

Current wording

For the first six months of 2025 Corporate & Other costs decreased to $40.9 million compared to $42.1 million reported in the same period of the prior year. This decrease is mainly due to the improved performance of our equity method investments and lower costs to evaluate acquisition targets mentioned above, which more than offset higher incentive compensation costs, including higher accrual rates for certain equity compensation programs.

Previous wording

In our Management’s Discussion and Analysis, we exclude the impact of foreign currency translation when presenting net sales and other information, which we define as “constant currency.” Core sales, which excludes the impact of foreign currency translation is a non-U.S. GAAP financial measure. Core sales growth is calculated as current-period core sales less prior period core sales divided by prior period core sales multiplied by a hundred. As a worldwide business, it is important that we take into account the effects of foreign currency translation when we view our results and plan our strategies. Consequently, when our management looks at our financial results to measure the core performance of our business, we may exclude the impact of foreign currency translation by translating our prior period results at current-period foreign currency exchange rates. As a result, our management believes that these presentations are useful internally and may be useful to investors. We also exclude the impact of material acquisitions when comparing results to prior periods. Changes in operating results excluding the impact of acquisitions are non-U.S. GAAP financial measures. We believe it is important to exclude the impact of acquisitions on period over period results in order to evaluate performance on a more comparable basis.

Current wording

In our Management’s Discussion and Analysis, we exclude the impact of foreign currency translation when presenting net sales and other information, which we define as “constant currency.” Core sales, which excludes the impact of foreign currency translation is a non-U.S. GAAP financial measure. Core sales growth is calculated as current-period core sales less prior period core sales divided by prior period core sales multiplied by a hundred. As a worldwide business, it is important that we take into account the effects of foreign currency translation when we view our results and plan our strategies. Consequently, when our management looks at our financial results to measure the core performance of our business, we may exclude the impact of foreign currency translation by translating our prior period results at current-period foreign currency exchange rates. As a result, our management believes that these presentations are useful internally and may be useful to investors. We also exclude the impact of acquisitions when comparing results to prior periods. Changes in operating results excluding the impact of acquisitions are non-U.S. GAAP financial measures. We believe it is important to exclude the impact of acquisitions on period over period results in order to evaluate performance on a more comparable basis.

Previous wording

During the three months ended March 31, 2025, the U.S. dollar was weaker compared to all currencies except the Thai baht. This resulted in an additive impact on our translated results during the first quarter of 2025 when compared to the first quarter of 2024.

Current wording

During the six months ended June 30, 2025, the U.S. dollar was weaker compared to all currencies except Latin America currencies, Chinese yuan, Indian rupee and Indonesia rupiah. This resulted in an additive impact on our translated results during the second quarter of 2025 when compared to the second quarter of 2024.

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, 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.

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, 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 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.”

Current wording

Cash and equivalents and restricted cash decreased to $161.7 million at June 30, 2025 from $223.8 million at December 31, 2024. Total short and long-term interest-bearing debt increased from $1.03 billion at December 31, 2024 to $1.09 billion at June 30, 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 25.2% at June 30, 2025 from 24.4% at December 31, 2024. See the reconciliation under “Non-U.S. GAAP Measures.”

Previous 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.

Current wording

In the first six months of 2025, our operations provided approximately $208.7 million in net cash flow compared to $235.9 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 $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.

Current wording

We used $126.1 million in cash for investing activities during the first six months of 2025 compared to $145.0 million during the same period a year ago. Our investment in capital projects decreased $26.9 million during the first six months of 2025 compared to the first six months of 2024 as we completed larger projects that had higher spend in the prior year.

Previous 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.

Current wording

Financing activities used $162.0 million in cash during the first six months of 2025 compared to $89.0 million in cash used by financing activities during the same period a year ago. The increased use of cash in the first six months of 2025 is primarily related to $132.9 million of additional treasury stock purchases as compared to the prior year and $17.2 million less of proceeds from stock option exercises.

Previous wording

In October 2020, we entered into an unsecured money market borrowing arrangement to provide short-term financing of up to $30 million that is available in the U.S. No borrowing on this facility is permitted over a quarter end date. As such, no balance was utilized under this arrangement as of March 31, 2025.

Current wording

In October 2020, we entered into an unsecured money market borrowing arrangement to provide short-term financing of up to $30 million that is available in the U.S. No balance was outstanding under this arrangement as of June 30, 2025.

Previous 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.

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 June 30, 2025, we had utilized $111.5 million and €130 million ($153.1 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 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.

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. As of June 30, 2025, $141.1 millionwas utilized under the Term Loan facility.

Previous 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.

Current wording

Based upon the above consolidated leverage ratio covenant, we would have the ability to borrow approximately an additional $1.9 billion before the 3.50 to 1.00 maximum ratio requirement would be exceeded.

Previous 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.

Current wording

We expect earnings per share for the third quarter of 2025, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.53 to $1.61 and this guidance is based on an effective tax rate range of 20.5% to 22.5%. Our total 2025 estimated cash outlays for capital expenditures net of government grant proceeds are expected to be approximately $270 million to $290 million.

Previous 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;

Current wording

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