APTARGROUP, INC.

Previous wording

We reported net sales of $1.03 billion for the quarter ended June 30, 2026, which represents a 6% increase compared to $966.0 million reported during the second quarter of 2025. The U.S. dollar weakened against most European currencies resulting in a positive 2% currency translation impact at the consolidated level. Acquisitions also positively impacted consolidated sales by 3%. Therefore, core sales, which excludes acquisitions and changes in foreign currency rates, increased 1% in the second quarter of 2026 compared to the same period in 2025. Strong product volume growth in our Closures segment and the pass through of higher input costs more than compensated for lower tooling sales.

Current wording

We reported net sales of $1.02 billion for the quarter ended September 30, 2026, which represents a 6% increase compared to $961.1 million reported during the third quarter of 2025. The translation of foreign currencies did not have a significant impact at the consolidated level. Acquisitions, net of deconsolidation of our Russian subsidiary, had a net positive impact on consolidated sales of 1%. Therefore, core sales, which excludes acquisitions and deconsolidation and changes in foreign currency rates, increased 5% in the third quarter of 2026 compared to the same period in 2025. Strong product growth in our Beauty and Closures segments and the pass through of higher input costs more than compensated for lower tooling sales. In Pharma, strong growth within our consumer healthcare and injectables markets were able to compensate for lower sales of emergency medicine products.

Previous wording

Reported net sales for the first six months of 2026 increased 8% to $2.01 billion compared to $1.85 billion for the first six months of 2025. Foreign currency exchange rates and acquisitions each positively impacted our consolidated results by 4% and 3%, respectively, during the first six months of 2026. Therefore, core sales, which exclude acquisitions and changes in foreign currency exchange rates, for the first six months of 2026 increased 1% when compared with the same period in 2025. During the first half of 2026, we benefitted from strong sales of our higher value products within the Beauty and Closures segments, along with higher tooling sales. In Pharma, strong growth within our consumer healthcare and injectables markets were able to compensate for lower sales of emergency medicine products.

Current wording

Reported net sales for the first nine months of 2026 increased 8% to $3.03 billion compared to $2.81 billion for the first nine months of 2025. Foreign currency exchange rates and acquisitions/deconsolidation each positively impacted our consolidated results by 4% and 2%, respectively, during the first nine months of 2026. Therefore, core sales for the first nine months of 2026 increased 2% when compared with the same period in 2025. During the first nine months of 2026, we benefitted from strong sales of our higher value products within the Beauty and Closures segments, along with the pass through of higher input costs. Strong growth within Pharma's consumer healthcare and injectables markets offset by lower sales of emergency medicine products.

Previous wording

Cost of sales (“COS”) as a percentage of net sales increased to 64.4% in the second quarter of 2026 compared to 62.0% in the second quarter of 2025. Sales within our Pharma segment were negatively impacted by a mix of lower margin applications compared to the same period in 2025. We also were negatively impacted by higher operating costs and an increase in certain input costs.

Current wording

Cost of sales (“COS”) as a percentage of net sales increased to 63.4% in the third quarter of 2026 compared to 62.2% in the third quarter of 2025. Sales within our Pharma segment were negatively impacted by a mix of lower margin applications compared to the same period in 2025. We also were negatively impacted by higher operating costs and an increase in certain input costs, which were passed through to customers but with no margin.

Previous wording

For the first six months of 2026, COS as a percentage of net sales increased to 64.3% compared to 62.1% in the same period in 2025. As discussed above, this increase is mainly due to the lower sales of some higher margin Pharma products, along with higher input costs and lower productivity when compared to the first six months of 2025.

Current wording

For the first nine months of 2026, COS as a percentage of net sales increased to 64.0% compared to 62.1% in the same period in 2025. As discussed above, this increase is mainly due to the lower sales of some higher margin Pharma products, along with higher input costs and lower productivity in certain segments when compared to the first nine months of 2025.

Previous wording

Selling, research & development and administrative expenses (“SG&A”) increased by approximately $6.6 million to $157.7 million in the second quarter of 2026 compared to $151.1 million during the same period in 2025. Excluding changes in foreign currency rates, SG&A increased by approximately $3.2 million in the quarter, with $3.3 million coming from SG&A expenses from our acquisitions. SG&A as a percentage of net sales decreased to 15.4% in the second quarter of 2026 compared to 15.6% in the same period in 2025.

Current wording

Selling, research & development and administrative expenses (“SG&A”) increased by approximately $11.4 million to $160.2 million in the third quarter of 2026 compared to $148.8 million during the same period in 2025. Excluding changes in foreign currency rates, SG&A increased by approximately $11.5 million in the quarter, with a net incremental expense of $0.9 million coming from our acquisitions and the deconsolidation of our Russian subsidiary. The remaining increase was mainly due to higher professional fees and allowances for credit losses primarily related to our Russian receivables. We also recorded the one-time impact of a $3.0 million deferred compensation expense which offsets a curtailment gain in net other income (expense) discussion below for an associate who is now a U.S employee. SG&A as a percentage of net sales increased to 15.7% in the third quarter of 2026 compared to 15.5% in the same period in 2025.

Previous wording

Our SG&A expenses increased by approximately $18.9 million to $325.3 million in the first six months of 2026 compared to $306.4 million during the same period in 2025. Excluding changes in foreign currency rates, SG&A increased by approximately $5.9 million in the first six months of 2026 compared to the first six months of 2025 with incremental SG&A costs from our acquisitions contributing the full amount of this increase. SG&A as a percentage of net sales decreased to 16.2% in the first six months of 2026 compared to 16.5% in the same period in 2025.

Current wording

Our SG&A expenses increased by approximately $30.3 million to $485.5 million in the first nine months of 2026 compared to $455.2 million during the same period in 2025. Excluding changes in foreign currency rates, SG&A increased by approximately $17.4 million in the first nine months of 2026 compared to the first nine months of 2025 with incremental SG&A costs from our acquisitions and deconsolidation contributing approximately $6.8 million of this increase. The remaining increase, as noted above, reflects the effect of higher professional fees, bad debt expenses and a pension cost transfer. SG&A as a percentage of net sales decreased to 16.0% in the first nine months of 2026 compared to 16.2% in the same period in 2025.

Previous wording

Depreciation and amortization expenses increased by approximately $9.7 million to $79.6 million in the second quarter of 2026 compared to $69.9 million during the same period in 2025. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $8.0 million in the second quarter of 2026 compared to the same period a year ago. Approximately $3.9 million of this increase is due to recent acquisitions, while the remainder is related to higher capital investments in our legacy businesses made to support our growth strategy. Depreciation and amortization as a percentage of net sales increased to 7.8% in the second quarter of 2026 compared to 7.2% in the same period of the prior year.

Current wording

Depreciation and amortization expenses increased by approximately $0.3 million to $75.5 million in the third quarter of 2026 compared to $75.2 million during the same period in 2025. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $0.4 million in the third quarter of 2026 compared to the same period a year ago. Approximately $1.7 million of this increase is due to recent acquisitions. This was partially offset by approximately $1.3 million of lower depreciation in our existing businesses, reflecting lower capital spending, along with the lapsing of certain amortized costs. Depreciation and amortization as a percentage of net sales decreased to 7.4% in the third quarter of 2026 compared to 7.8% in the same period of the prior year.

Previous wording

Depreciation and amortization expenses increased by approximately $19.8 million to $155.4 million in the first six months of 2026 compared to $135.6 million during the same period a year ago. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $13.3 million in the first six months of 2026 compared to the same period a year ago. Of this increase, $7.7 million relates to incremental depreciation and amortization costs in 2026 due to our acquisitions. The remaining net increase is due to higher capital investments made to support our growth strategy as discussed above. Depreciation and amortization as a percentage of net sales increased to 7.7% in the first six months of 2026 compared to 7.3% in the same period of the prior year.

Current wording

Depreciation and amortization expenses increased by approximately $20.1 million to $230.9 million in the first nine months of 2026 compared to $210.8 million during the same period a year ago. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $13.6 million in the first nine months of 2026 compared to the same period a year ago. Of this increase, $9.4 million relates to incremental depreciation and amortization costs in 2026 due to our acquisitions. The remaining net increase is due to the impact of higher capital investments earlier in the year made to support our growth strategy. Depreciation and amortization as a percentage of net sales increased to 7.6% in the first nine months of 2026 compared to 7.5% in the same period of the prior year.

Previous wording

For the three and six months ended June 30, 2026, we recognized $1.4 million and $2.5 million, respectively, of restructuring costs related to initiatives to better leverage our fixed cost base through growth and cost reduction measures. For the three and six months ended June 30, 2025, we recognized $1.6 million and $3.6 million of restructuring costs related to these initiatives, respectively. The cumulative expense incurred as of June 30, 2026 was $77.0 million.

Current wording

For the three and nine months ended September 30, 2026, we recognized $2.2 million and $4.7 million, respectively, of restructuring costs related to initiatives to better leverage our fixed cost base through growth and cost reduction measures. For the three and nine months ended September 30, 2025, we recognized $2.2 million and $5.8 million of restructuring costs related to these initiatives, respectively.

Previous wording

Restructuring costs for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

Restructuring costs for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Operating income decreased approximately $17.7 million to $126.7 million in the second quarter of 2026 compared to $144.4 million in the same period a year ago. Excluding changes in foreign currency rates, operating income decreased by approximately $20.2 million in the quarter compared to the same period a year ago. Cost management efforts were more than offset by higher cost of sales and depreciation and amortization as noted above. Operating income as a percentage of net sales decreased to 12.3% in the second quarter of 2026 compared to 15.0% in the prior year period.

Current wording

Operating income decreased approximately $1.9 million to $135.0 million in the third quarter of 2026 compared to $136.9 million in the same period a year ago. Excluding changes in foreign currency rates, operating income decreased by approximately $0.3 million in the quarter compared to the same period a year ago. Higher sales were offset by higher SG&A and input costs along with the mix of lower margin applications compared to the same period in 2025. Operating income as a percentage of net sales decreased to 13.3% in the third quarter of 2026 compared to 14.3% in the prior year period.

Previous wording

For the first six months of 2026, operating income decreased by approximately $23.6 million to $234.2 million compared to $257.8 million in the same period of the prior year. Excluding changes in foreign currency rates, operating income decreased by approximately $35.9 million in the first six months of 2026 compared to the same period a year ago. This decrease was mainly driven by higher COS as a percentage of revenue, reflecting lower sales of certain higher-margin products within our Pharma segment and higher depreciation costs to support our growth initiatives. Operating income as a percentage of net sales decreased to 11.7% in the first six months of 2026 compared to 13.9% for the same period in the prior year.

Current wording

For the first nine months of 2026, operating income decreased by approximately $25.5 million to $369.2 million compared to $394.8 million in the same period of the prior year. Excluding changes in foreign currency rates, operating income decreased by approximately $36.3 million in the first nine months of 2026 compared to the same period a year ago. This decrease was mainly driven by higher SG&A costs and COS as a percentage of revenue, reflecting lower sales of certain higher-margin products within our Pharma segment and higher depreciation costs to support our growth initiatives. Operating income as a percentage of net sales decreased to 12.2% in the first nine months of 2026 compared to 14.0% for the same period in the prior year.

Previous wording

Interest expense increased approximately $10.7 million to $32.9 million in the first six months of 2026 compared to $22.2 million during the same period in 2025. Since the beginning of 2025, we have repaid $250.0 million of private placement debt having an interest rate of 3.6% and issued a total of $600.0 million in new notes with a fixed interest rate of 4.75%, thus increasing both the amount and the average interest rate of our debt in the first six months of 2026 compared to the same period in the prior year. See Note 6 - Debt to the Condensed Consolidated Financial Statements for further details on our current debt structure.

Current wording

Interest expense increased approximately $13.0 million to $48.7 million in the first nine months of 2026 compared to $35.7 million during the same period in 2025. Since the beginning of 2025, we have repaid $250.0 million of private placement debt having an interest rate of 3.6% and issued a total of $600.0 million in new notes with a fixed interest rate of 4.75%, thus increasing both the amount and the average interest rate of our debt in the first nine months of 2026 compared to the same period in the prior year. See Note 6 - Debt to the Condensed Consolidated Financial Statements for further details on our current debt structure.

Previous wording

Net other income decreased approximately $2.5 million to $7.5 million of income for the six months ended June 30, 2026 from $10.1 million of income in the same period of the prior year. Higher interest income of $1.7 million was offset by approximately $2.3 million in lower equity results from affiliates in part due to our investment in BTY now being fully consolidated.

Current wording

Net other income decreased approximately $92.2 million to $51.3 million of expense for the nine months ended September 30, 2026 from $40.8 million of income in the same period of the prior year. As discussed above, we recorded a $58.0 million loss on deconsolidation of our Russian operations. We also realized approximately $5.0 million of impairment losses and approximately $2.9 million in lower equity results from affiliates in part due to our investment in BTY now being fully consolidated, which was offset by a $3.3 million gain on pension curtailment. During the third quarter of 2025, we realized a $26.5 million remeasurement gain related to our additional investment in BTY.

Previous wording

The effective tax rate for the three months ended June 30, 2026 and 2025 was 23.5% and 20.0% respectively. The effective tax rate for the six months ended June 30, 2026 and 2025 was 23.0% and 22.5%, respectively. The effective tax rate for the three and six months ended June 30, 2026 did not include a deferred tax benefit from the release of a valuation allowance, and greater excess tax benefits from share-based compensation that existed in the prior-year period.

Current wording

The effective tax rate for the three months ended September 30, 2026 and 2025 was 45.6% and 17.1% respectively. The effective tax rate for the three months ended September 30, 2026, reflects a loss on the deconsolidation of our Russian subsidiary on September 21, 2026, which is not deductible for tax purposes (25.7%). The effective tax rate for the three months ended September 30, 2025 reflects a benefit related to the tax impact from the gain from remeasurement of an equity investment upon consolidation (4.2%), and a deferred tax benefit resulting from the release of a valuation allowance (2.7%).

Previous wording

We reported net income attributable to AptarGroup, Inc. of $87.6 million and $160.2 million in the three and six months ended June 30, 2026, respectively, compared to $111.7 million and $190.5 million for the same periods in the prior year.

Current wording

We reported net income attributable to AptarGroup, Inc. of $32.6 million and $192.8 million in the three and nine months ended September 30, 2026, respectively, compared to $127.9 million and $318.4 million for the same periods in the prior year.

Previous wording

Net sales for the Pharma segment increased 4% in the second quarter of 2026 to $458.2 million compared to $442.6 million in the second quarter of 2025. Changes in currencies and acquisitions positively affected net sales by 2% and 1%, respectively. Therefore, core sales increased by 1% in the second quarter of 2026 compared to the second quarter of 2025. Higher tooling sales and the positive impact from the pass through of higher input costs to our customers more than compensated for lower device sales in certain markets. Core sales of our products to the prescription drug market decreased 7% primarily due to the anticipated reduction in emergency medicine sales, partially offset by growth in central nervous system therapeutics and Asthma/COPD applications. The 15% core sales improvement in the consumer health care market was mainly driven by strong demand for our nasal decongestant and eye care technologies, along with higher tooling sales. Sales of our products and services to the injectables market increased 9% on strong demand for our elastomeric components, which are used in a number of end markets including GLP-1, biologics and vaccines. Active material science solutions decreased 2% mainly due to a challenging prior year comparison and lower sales for diabetes test strips.

Current wording

Net sales for the Pharma segment increased 2% in the third quarter of 2026 to $454.0 million compared to $445.4 million in the third quarter of 2025. Changes in currencies negatively affected net sales by 1% while acquisitions and deconsolidation positively impacted net sales by 2%. Therefore, core sales increased by 1% in the third quarter of 2026 compared to the third quarter of 2025. This increase was driven by overall higher device sales and the favorable effect of passing increased input costs through to our customers. Core sales of our products to the prescription drug market decreased 7% primarily due to the anticipated reduction in emergency medicine sales, partially offset by growth in central nervous system therapeutics and asthma/COPD applications. The 13% core sales improvement in the consumer health care market was mainly driven by strong demand for our nasal decongestant and dermal drug delivery technologies. Sales of our products and services to the injectables market increased 9% on strong demand for our elastomeric components, which are used in a number of end markets including GLP-1, biologics and vaccines. Active material science solutions increased 4% on strong sales of our probiotic and oral solid dose products.

Previous wording

Net sales for the first six months of 2026 increased by approximately 5% to $896.7 million compared to $852.1 million in the first six months of 2025. Changes in currency rates and acquisitions positively impacted net sales by 4% and 1%, respectively during the first six months of 2026. Therefore, core sales remained flat during the first six months of 2026 compared to the same period in the prior year. Strong sales in our consumer healthcare and Injectables divisions, along with higher tooling sales were offset by lower prescription drug sales. Core sales of products included in our prescription drug division decreased 9% as strong demand for our products used on asthma and central nervous system applications could not compensate for lower emergency medicine product sales. Core sales in the consumer healthcare market increased 10% on higher tooling sales and strong demand for our nasal decongestant and eye care products. Injectables core sales increased 14% with strong demand primarily for elastomeric components used for GLP-1 and other biologics applications. Core sales of our active material science solutions decreased 1% as increases in sales of our probiotic and oral solid dose technologies could not offset declines in diabetes product sales.

Current wording

Net sales for the first nine months of 2026 increased by approximately 4% to $1.35 billion compared to $1.30 billion in the first nine months of 2025. Changes in currency rates and acquisitions/deconsolidation positively impacted net sales by 3% and 1%, respectively during the first nine months of 2026. Therefore, core sales remained flat during the first nine months of 2026 compared to the same period in the prior year. Strong sales in our consumer healthcare and Injectables divisions, along with higher tooling sales were offset by lower prescription drug sales. Core sales of products included in our prescription drug division decreased 8% as strong demand for our products used on asthma/COPD and central nervous system applications, along with increasing royalties could not compensate for lower emergency medicine product sales. Core sales in the consumer healthcare market increased 11% on strong demand for our nasal decongestant, dermal drug delivery and eye care products. Injectables core sales increased 13% with high demand primarily for elastomeric components used for GLP-1 and other biologics applications. Core sales of our active material science solutions remained flat as increases in sales of our oral solid dose technologies were offset by declines in diabetes product sales.

Previous wording

Adjusted EBITDA in the second quarter of 2026 decreased 2% to $153.9 million compared to $156.8 million in the same period of the prior year, reflecting the less favorable product mix described above while royalties and strong operational performance continued to positively impact margins. As a result, our Adjusted EBITDA margin declined to 33.6% in the second quarter of 2026 from 35.4% in the second quarter of 2025.

Current wording

Adjusted EBITDA in the third quarter of 2026 decreased slightly to $165.1 million compared to $165.8 million in the same period of the prior year, as the lower emergency medicine volumes described above offset increased volumes in other applications, higher royalties and strong operational performance. As a result, our Adjusted EBITDA margin declined to 36.4% in the third quarter of 2026 from 37.2% in the third quarter of 2025.

Previous wording

Adjusted EBITDA in the first six months of 2026 remained relatively flat at $300.1 million compared to $299.3 million in the same period of the prior year. Strong operational performance in the first half of 2026, a favorable currency impact and the core sales growth in consumer healthcare and injectables discussed above were able to compensate for the lower sales of our higher-margin emergency medicine products. However, due to the disproportionate margin discrepancy on our emergency medicine products, our Adjusted EBITDA margin declined to 33.5% in the first six months of 2026 compared to 35.1% in the first six months of 2025.

Current wording

Adjusted EBITDA in the first nine months of 2026 remained relatively flat at $465.3 million compared to $465.1 million in the same period of the prior year. Strong operational performance in the first nine months of 2026, a favorable currency impact, higher royalties and the core sales growth in consumer healthcare and injectables discussed above were able to compensate for the lower sales of our higher-margin emergency medicine products. However, due to the disproportionate margin discrepancy on our emergency medicine products, our adjusted EBITDA margin declined to 34.4% in the first nine months of 2026 compared to 35.8% in the first nine months of 2025.

Previous wording

Reported net sales for the quarter ended June 30, 2026 increased 10% to $367.5 million compared to $334.8 million in the second quarter of the prior year. Changes in currency rates and acquisitions impacted net sales by 3% and 6%, respectively in the second quarter of 2026. Therefore, core sales increased 1% in the second quarter of 2026 compared to the same quarter of the prior year as the pass through of higher input costs more than compensated for lower tooling sales. Core sales to the F&F market increased 2% on strong demand for our color cosmetics and prestige fragrance dispensing technologies. Personal care sales were flat versus prior year as strong sales of our hair care applications offset lower tooling sales. Home care core sales decreased 8% on lower sales of our products to air care and automotive customers.

Current wording

Reported net sales for the quarter ended September 30, 2026 increased 9% to $357.4 million compared to $327.8 million in the third quarter of the prior year. While there was no impact for the changes in currency rates, acquisitions positively impacted net sales by 1% in the third quarter of 2026. Therefore, core sales increased 8% in the third quarter of 2026 compared to the same quarter of the prior year as product sales growth and the pass through of higher input costs more than compensated for lower tooling sales. Core sales to the F&F market increased 5% on strong demand for our prestige fragrance and color cosmetics dispensing technologies. Personal care sales increased 11% versus prior year on strong sales of our hair care, personal cleansing and baby care applications. Home care core sales increased 24% on higher sales of our products to hair care and industrial customers.

Previous wording

For the first six months of 2026, reported net sales of $731.1 million increased 14% compared to $640.6 million reported in the first six months of the prior year. Changes in currency rates and acquisitions positively impacted net sales by 6% and 6%, respectively, in the first six months of 2026. Therefore, core sales increased 2% during the first six months of 2026 compared to the same period in the prior year. Overall, improving product sales and the pass through of higher material costs more than compensated for lower tooling sales. Core sales of our products to the F&F market increased 2% during the first six months of 2026 due to strong demand for our color cosmetics and prestige fragrance technologies. Personal care core sales improved 3% over the prior year on higher sales of our hair care and body and skincare products. Core sales of our home care market products, which makes up a smaller percentage of our total sales, declined 10% on lower demand from our customers selling air care products.

Current wording

For the first nine months of 2026, reported net sales of $1.09 billion increased 12% compared to $968.3 million reported in the first nine months of the prior year. Changes in currency rates and acquisitions positively impacted net sales by 4% and 4%, respectively, in the first nine months of 2026. Therefore, core sales increased 4% during the first nine months of 2026 compared to the same period in the prior year. Overall, improving product sales and the pass through of higher material costs more than compensated for lower tooling sales. Core sales of our products to the F&F market increased 3% during the first nine months of 2026 due to strong demand for our prestige fragrance and color cosmetics technologies. Personal care core sales improved 6% over the prior year on higher sales of our hair care and personal cleansing products. Core sales of our home care market products, which makes up a smaller percentage of our total sales, remained flat as lower demand from our customers selling hair care applications were offset by improving sales of our industrial products.

Previous wording

Adjusted EBITDA in the first six months of 2026 increased 1% to $85.2 million compared to $84.2 million reported in the same period in the prior year. This increase was mainly driven by improving fragrance and color cosmetic sales mentioned above along with a favorable currency impact. Adjusted EBITDA margin declined from 13.1% in the first six months of 2025 to 11.7% during the first six months of 2026.

Current wording

Adjusted EBITDA in the first nine months of 2026 also increased 2% to $125.9 million compared to $124.0 million reported in the same period in the prior year. This increase was mainly driven by improving fragrance and color cosmetic sales mentioned above along with a favorable currency impact. Adjusted EBITDA margin declined from 12.8% in the first nine months of 2025 to 11.6% during the first nine months of 2026 mainly due to the aforementioned unfavorable product mix and ongoing challenges in North American operations.

Previous wording

Reported sales for the quarter ended June 30, 2026 increased approximately 7% to $200.9 million compared to $188.6 million in the second quarter of the prior year. Changes in currency rates positively impacted net sales by 3%. Therefore, core sales for the second quarter of 2026 increased approximately 4% from the same quarter of the prior year. During 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. Strong product sales along with the pass through of higher input costs more than compensated for a decline in tooling sales. Sales to the food market decreased 1% on lower tooling sales. The 14% increase in beverage market sales was mainly due to higher sales of our closures for bottled water and functional drink products. Personal care sales declined 3% during the second quarter of 2026 mainly due to lower hair care sales, while other sales increased 11% on strong sales of our laundry and dish care applications.

Current wording

Reported sales for the quarter ended September 30, 2026 increased approximately 11% to $207.8 million compared to $188.0 million in the third quarter of the prior year. Changes in currency rates positively impacted net sales by 1%, while the Russian deconsolidation negatively impacted net sales by 1%. Therefore, core sales for the third quarter of 2026 increased approximately 11% from the same quarter of the prior year. During 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. The growth in core sales is mainly due to higher product and tooling sales, along with the pass through of higher input costs. Sales to the food market increased 9% on higher sauces and condiment and salad dressing application sales. The 19% increase in beverage market sales was mainly due to higher sales of our closures for concentrates and bottled water products. Personal care sales increased 2% during the third quarter of 2026 mainly due to higher hair care application sales, while other sales increased 8% on strong sales of our laundry and dish care applications.

Previous wording

Net sales for the first six months of 2026 increased approximately 6% to $381.6 million compared to $360.7 million in the first six months of 2025. Changes in currency rates positively impacted net sales by 4%. Therefore, core sales increased 2% in the first six months of 2026 compared to the same period in the prior year as strong product sales and the pass through of higher input costs more than compensated for a decline in tooling sales. Core sales to our food customers declined 2% mainly due to the lower tooling sales noted above. Increases in sales of our products to the food service and sauce and condiment markets were offset by lower Asian sauces and granular powder product sales. Core sales to our beverage customers increased 13% during the first six months of 2026 on strong bottled water and liquid coffee creamer application sales. Personal care core sales declined 8% on lower sales of our hair care solutions while the other markets improved by 12% on stronger sales of our laundry and dish care products.

Current wording

Net sales for the first nine months of 2026 increased approximately 7% to $589.3 million compared to $548.7 million in the first nine months of 2025. Changes in currency rates positively impacted net sales by 3% while the Russian deconsolidation negatively impacted net sales by 1%. Therefore, core sales increased 5% in the first nine months of 2026 compared to the same period in the prior year on strong product sales and the pass through of higher input costs. Core sales to our food customers increased 2% as higher sales of our products to the sauce and condiment markets more than compensated for lower tooling sales. Core sales to our beverage customers increased 15% during the first nine months of 2026 on strong bottled water, concentrates and liquid coffee creamer application sales. Personal care core sales declined 5% on lower sales of our body and skin care solutions while the other markets improved by 11% on stronger sales of our laundry and dish care products.

Previous wording

Adjusted EBITDA in the second quarter of 2026 decreased 6% to $29.8 million compared to $31.9 million reported in the same period of the prior year primarily due to higher operational costs associated with the ramp up of a new production line along with some previously reported maintenance costs, which lessened as the quarter progressed. Our Adjusted EBITDA margin declined from 16.9% in the second quarter of 2025 to 14.9% during the second quarter of 2026 due to the items discussed above along with higher input costs which are mostly passed through to customers with no margin.

Current wording

Adjusted EBITDA in the third quarter of 2026 increased 6% to $32.2 million compared to $30.3 million reported in the same period of the prior year primarily due to higher sales volumes as discussed above. Our Adjusted EBITDA margin declined from 16.1% in the third quarter of 2025 to 15.5% during the third quarter of 2026 as higher input costs are mostly passed through to customers with no margin.

Previous wording

Adjusted EBITDA in the first six months of 2026 decreased 10% to $53.5 million compared to $59.1 million reported in the same period of the prior year. The positive impact of higher product sales discussed above was offset by some operational issues discussed above along with a $0.9 million write-off of an equity investment. This led to our Adjusted EBITDA margin declining from 16.4% in the first six months of 2025 to 14.0% during the first six months of 2026.

Current wording

Adjusted EBITDA in the first nine months of 2026 decreased 4% to $85.7 million compared to $89.5 million reported in the same period of the prior year. The positive impact of higher product sales was offset by operational issues in the first half of 2026 along with a $0.9 million write-off of an equity investment. This, along with the dilutive impact of passing through higher input costs, led to our Adjusted EBITDA margin declining from 16.3% in the first nine months of 2025 to 14.5% during the first nine months of 2026.

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, Russia deconsolidation impact and other special items) primarily includes certain professional fees, compensation and information system costs which are not allocated directly to our reporting segments.

Previous wording

For the quarter ended June 30, 2026, Corporate & Other costs decreased to $15.9 million from $17.4 million in the second quarter of 2025. Lower incentive compensation costs led to the current quarter improvement compared to the prior-year period.

Current wording

For the quarter ended September 30, 2026, Corporate & Other costs increased to $20.8 million from $13.3 million in the third quarter of 2025. Higher professional fees along with the $2.9 million write-off of an equity investment, as discussed in Note 17 - Investment in Equity Securities, led to the current quarter increase compared to the prior-year period.

Previous wording

For the first six months of 2026, Corporate & Other costs decreased to $37.4 million compared to $40.9 million reported in the same period of the prior year. This decrease is mainly due to lower incentive compensation costs.

Current wording

For the first nine months of 2026, Corporate & Other costs increased to $58.2 million compared to $54.1 million reported in the same period of the prior year. This increase is mainly due to higher professional fees and the $2.9 million equity investment write-off mentioned above.

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 acquisitions and 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, 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 acquisitions and 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, management believes that these presentations are useful internally and may be useful to investors. We also exclude the impact of material acquisitions and deconsolidation 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

We present earnings before net interest and taxes (“EBIT”), earnings before net interest, taxes, depreciation and amortization (“EBITDA”) and adjusted earnings per share. We also present our adjusted earnings before net interest and taxes (“Adjusted EBIT”), adjusted earnings before net interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and adjusted earnings per share, all of which exclude restructuring initiatives, acquisition-related costs, purchase accounting adjustments related to acquisitions and investments, net unrealized investment gains and losses related to observable market price changes on equity securities, and other special items. For the three and six months ended June 30, 2026, "Other special items" include costs incurred related to non-ordinary-course litigation regarding matters under "Legal Proceedings" within Note 12 - Commitments and Contingencies as these costs do not reflect our core operating performance. Our Outlook is also provided on a non-U.S. GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled, such as exchange rates and changes in the fair value of equity investments, or reliably predicted because they are not part of our routine activities, such as restructuring initiatives, acquisition-related costs and other special items.

Current wording

We present earnings before net interest and taxes (“EBIT”), earnings before net interest, taxes, depreciation and amortization (“EBITDA”) and adjusted earnings per share. We also present our adjusted earnings before net interest and taxes (“Adjusted EBIT”), adjusted earnings before net interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and adjusted earnings per share, all of which exclude restructuring initiatives, acquisition-related costs, purchase accounting adjustments related to acquisitions and investments, net unrealized investment gains and losses related to observable market price changes on equity securities, Russia deconsolidation impact and other special items. For the three and nine months ended September 30, 2026, "Other special items" include costs incurred related to non-ordinary-course litigation regarding matters under "Legal Proceedings" within Note 12 - Commitments and Contingencies as these costs do not reflect our core operating performance. For the three and nine months ended September 30, 2026, the Russia deconsolidation impact consists of the loss on deconsolidation of our Russian subsidiary and the related charges described in Note 20 – Deconsolidation. We exclude these charges because they resulted from a governmental action rather than from the operations of our businesses and therefore do not reflect the underlying performance of our remaining operations. Our Outlook is also provided on a non-U.S. GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled, such as exchange rates and changes in the fair value of equity investments, or reliably predicted because they are not part of our routine activities, such as restructuring initiatives, acquisition-related costs and other special items.

Previous wording

During the six months ended June 30, 2026, the U.S. dollar was weaker compared to all European currencies, most Latin American currencies, Chinese yuan and the Thai baht. This resulted in an additive impact on our translated results during the second quarter of 2026 when compared to the second quarter of 2025.

Current wording

During the nine months ended September 30, 2026, the U.S. dollar was weaker compared to most European currencies, most Latin American currencies, Chinese yuan and the Thai baht. This resulted in an additive impact on our translated results during the first nine months of 2026 when compared to the first nine months of 2025.

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, as needed, as our primary sources of liquidity. Our primary uses of cash are to invest in equipment, capacity expansions and working capital for the continued growth of our business to achieve our strategic objectives, as well as paying quarterly dividends to stockholders, and investing in new businesses. Due to uncertain macroeconomic conditions, including rising interest rates and inflation, if there was a prolonged decrease in customer demand that would adversely impact our cash flows from operations, we would have the ability to restrict and significantly reduce capital expenditure levels and discretionary 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 working capital for the continued growth of our business to achieve our strategic objectives, as well as paying quarterly dividends to stockholders. Due to uncertain macroeconomic conditions, including interest rate volatility and inflation, if there was a prolonged decrease in customer demand that would adversely impact our cash flows from operations, we would have the ability to restrict and significantly reduce capital expenditure levels and discretionary 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 $192.8 million at June 30, 2026 from $404.8 million at December 31, 2025. Total short- and long-term interest-bearing debt decreased from $1.48 billion at December 31, 2025 to $1.37 billion at June 30, 2026. The ratio of our Net Debt (interest-bearing debt less cash and cash equivalents and short-term investments) to Net Capital (stockholders’ equity plus Net Debt) increased to 30.7% at June 30, 2026 from 28.6% at December 31, 2025. See the reconciliation under “Non-U.S. GAAP Measures.”

Current wording

Cash and equivalents and restricted cash decreased to $206.6 million at September 30, 2026 from $404.8 million at December 31, 2025 primarily reflecting cash used for capital expenditures, share repurchases, dividends, debt repayment, and cash balance of our deconsolidated subsidiary, partially offset by cash generated from operations. Total short- and long-term interest-bearing debt decreased to $1.38 billion at September 30, 2026 from $1.48 billion at December 31, 2025 primarily due to the repayment of the $125.0 million 3.60% Senior Notes that matured in February 2026. The ratio of our Net Debt (interest-bearing debt less cash and cash equivalents and short-term investments) to Net Capital (stockholders’ equity plus Net Debt) increased to 30.6% at September 30, 2026 from 28.6% at December 31, 2025, primarily due to the decrease in cash and cash equivalents, partially offset by lower interest-bearing debt. See the reconciliation under “Non-U.S. GAAP Measures.”

Previous wording

Financing activities used $308.3 million in cash during the first six months of 2026 compared to $162.0 million in cash used by financing activities during the same period a year ago. During the first six months of 2026, we paid $61.5 million in dividends, purchased $150.0 million of our common stock which we placed into treasury stock, repaid in full the $125.0 million of long-term debt being the 3.60% Senior Notes that were due in February 2026 and received proceeds of $19.0 million on stock option exercises.

Current wording

Net cash used for financing activities was $357.5 million during the first nine months of 2026 compared to $154.2 million in cash used by financing activities during the same period in 2025. The increase primarily reflected $94.6 million of lower revolving credit facility borrowings and repayment of the $125.0 million 3.60% Senior Notes that matured in February 2026. During the first nine months of 2026, we also paid $92.1 million in dividends and received $22.4 million from stock option exercises.

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 $600.0 million, which may be increased by up to $300.0 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 June 30, 2026, we had utilized $37.5 million and €130.0 million ($148.5 million) under the amended revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. As of December 31, 2025, €130.0 million ($152.6 million) was utilized 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 $600.0 million, which may be increased by up to $300.0 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 September 30, 2026, we had utilized $50.0 million and €130.0 million ($147.2 million) under the amended revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. As of December 31, 2025, €130.0 million ($152.6 million) was utilized under the 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. As of June 30, 2026, $116.2 millionwas utilized under the Term Loan.

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 September 30, 2026, $116.2 millionwas outstanding under the Term Loan.

Previous wording

Based upon the above consolidated leverage ratio covenant, we would have the ability to borrow approximately an additional $1.60 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 $1.6 billion before the 3.50 to 1.00 maximum ratio requirement would be exceeded.

Previous wording

On July 16, 2026, the Board of Directors declared a quarterly cash dividend of $0.48 per share payable on August 20, 2026 to stockholders of record as of July 30, 2026.

Current wording

On October 29, 2026, the Board of Directors declared a quarterly cash dividend of $0.50 per share payable on December 3, 2026 to stockholders of record as of November 12, 2026.