ALLIENT INC

Previous wording

The realignment will improve business focus and better leverage the Company’s footprint to deliver high-precision system solutions for demanding applications in various served markets including Aerospace and Defense, Medical and Electronic Test and Assembly Equipment. One-time costs required to implement the changes are estimated to be approximately $4 to $5 million, primarily related to employee severance and other personnel related expenses and are expected to be substantially incurred during 2025. The initiative is expected to support our goal of driving an additional $6 to $7 million in annualized cost savings in 2025.

Current wording

The realignment will improve business focus and better leverage the Company’s footprint to deliver high-precision system solutions for demanding applications in various served markets including Aerospace and Defense, Medical and Electronic Test and Assembly Equipment. One-time costs required to implement the changes are estimated to be approximately $4 to $5 million, primarily related to employee severance and other personnel related expenses and are expected to be substantially incurred during 2025. The actions undertaken in 2025 under this initiative are expected to support our goal of driving an additional $6 to $7 million in annualized cost savings.

Previous wording

On July 4, 2025, legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was signed into law which, among other things, modifies the income tax treatment of research and development expenses, as well as includes revisions to bonus depreciation and international tax regimes. We are in the process of evaluating the financial implications of the OBBBA and will begin reflecting its effects in the third quarter of 2025.

Current wording

On July 4, 2025, legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was signed into law which, among other things, modifies the income tax treatment of research and development expenses, as well as includes revisions to bonus depreciation and international tax regimes. The effects of OBBBA are reflected in our results for the three months ended September 30, 2025, and there were no material impacts to our income tax provision or effective tax rate.

Previous wording

REVENUES: The increase in revenues during the second quarter 2025 reflects increases in several target markets, most significantly within Medical, Industrial, and Aerospace and Defense markets, partially offset by decreases in Vehicle. Our revenue for the second quarter of 2025 was comprised of 55% to U.S. customers and 45% to customers primarily in Europe, Canada, and Asia-Pacific. The overall increase in revenue was primarily due to a 1.8% foreign currency increase and a volume increase of 0.9%. Organic revenue increased 0.9% during the second quarter 2025.

Current wording

REVENUES: The increase in revenues during the three months ended September 30, 2025 reflects increases in each of our target markets, most significantly within Industrial. Our revenues for the three months ended September 30, 2025 was comprised of 57% to U.S. customers and 43% to customers primarily in Europe, Canada, and Asia-Pacific. The overall increase in revenue was primarily due to a 9.0% volume increase and a foreign currency increase of 1.8%. Organic revenue increased 9.0% during the three months ended September 30, 2025. Organic revenue is a non-GAAP measure. Refer to information included in “Non-GAAP Measures” below for a discussion and reconciliation of the non-GAAP measures.

Previous wording

GROSS PROFIT AND GROSS MARGIN: Gross profit increased to $46,356 in the second quarter of 2025 from $40,676 in the second quarter of 2024, and gross margins increased to 33.2% for 2025, compared to 29.9% for 2024. Gross profit and gross margin percentage were impacted favorably by slightly higher sales volume, improved product mix, and operational improvements driven by our Simplify to Accelerate NOW strategy.

Current wording

GROSS PROFIT AND GROSS MARGIN: Gross profit increased to $46,181 in the three months ended September 30, 2025 from $39,264 in the three months ended September 30, 2024, and gross margins increased to 33.3% for 2025, compared to 31.4% for 2024. Gross profit and gross margin percentage were impacted favorably by higher sales volume, improved product mix, and operational improvements driven by our Simplify to Accelerate NOW strategy.

Previous wording

SELLING EXPENSES: Selling expenses decreased 10% during the second quarter of 2025 compared to 2024, reflecting cost reduction actions taken as part of our Simplify to Accelerate NOW strategy. Selling expenses as a percentage of revenues were 4% and 5% in the three months ended June 30, 2025 and 2024, respectively.

Current wording

SELLING EXPENSES: Selling expenses decreased 2% during the three months ended September 30, 2025 compared to 2024, reflecting cost reduction actions taken as part of our Simplify to Accelerate NOW strategy as well as impacts of sales mix. Selling expenses as a percentage of revenues were 4% and 5% in the three months ended September 30, 2025 and 2024, respectively.

Previous wording

GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses increased 2% during the second quarter 2025 compared to 2024 due primarily to higher incentive compensation, offset in part by cost reduction actions taken reflecting our Simplify to Accelerate NOW strategy. As a percentage of revenues, general and administrative expenses were 10% in each of the three months ended June 30, 2025 and 2024.

Current wording

GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses increased 2% during the three months ended September 30, 2025 compared to 2024 due primarily to higher incentive compensation, offset in part by cost reduction actions

Previous wording

ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses decreased by 3% in the second quarter of 2025 compared to 2024. The decrease reflects the cost reduction actions taken as part of our Simplify to Accelerate NOW strategy. As a percentage of revenues, engineering and development expenses were 7% and 8% for the three months ended June 30, 2025 and 2024, respectively.

Current wording

ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses increased by 7% in the three months ended September 30, 2025 compared to 2024. The increase primarily reflects higher incentive compensation, partially offset by the cost reduction actions taken as part of our Simplify to Accelerate NOW strategy. As a percentage of revenues, engineering and development expenses were 7% in each of the three months ended September 30, 2025 and 2024.

Previous wording

RESTRUCTURING AND BUSINESS REALIGNMENT COSTS: Restructuring and business realignment costs decreased in the second quarter of 2025 compared to 2024 primarily reflecting costs primarily associated with the transfer of assembly operations from our Dothan, Alabama facility in 2025 and a reduction in other Simplify to Accelerate NOW actions as compared with the prior year.

Current wording

RESTRUCTURING AND BUSINESS REALIGNMENT COSTS: Restructuring and business realignment costs increased in the three months ended September 30, 2025 compared to 2024 primarily reflecting costs primarily associated with the transfer of assembly operations from our Dothan, Alabama facility in 2025 and timing of other Simplify to Accelerate NOW actions as compared with the prior year, which primarily occurred in the three months ended June 30, 2024.

Previous wording

INTEREST EXPENSE: Interest expense increased in the second quarter of 2025 compared to 2024 due to higher average effective interest rates due to maturity of certain interest rate swaps, partially offset by lower average debt balances. The increase in interest expense is partially offset by reductions to interest expense realized through our interest rate swaps.

Current wording

INTEREST EXPENSE: Interest expense decreased in the three months ended September 30, 2025 compared to 2024 due to lower average debt balances, partially offset by higher average effective interest rates due to maturity of certain interest rate swaps. Interest expense incurred is partially offset by reductions to interest expense realized through our interest rate swaps.

Previous wording

INCOME TAXES: The effective income tax rate was 23.1% and 20.6% for the three months ended June 30, 2025 and 2024, respectively. The change in rates compared to the prior year is primarily due to the impact of discrete tax costs on share based awards. We expect our income tax rate for the full year 2025 to be approximately 21% to 23%.

Current wording

INCOME TAXES: The effective income tax rate was 22.2% and 22.6% for the three months ended September 30, 2025 and 2024, respectively. We expect our income tax rate for the full year 2025 to be approximately 21% to 23%.

Previous wording

NET INCOME AND ADJUSTED NET INCOME: Net income increased during the second quarter of 2025 compared to 2024, primarily relating to slightly higher sales volume, including anincrease in organic revenue, and a decrease in cost of goods sold, as well as a decrease in operating expenses, reflecting the actions in our Simplify to Accelerate NOW strategy. Adjusted net income for the quarters ended June 30, 2025 and 2024 was $9,525 and $4,857, respectively. Adjusted diluted earnings per share for the second quarter of 2025 and 2024 were $0.57 and $0.29, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non–GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to adjusted net income and diluted earnings per share to adjusted diluted earnings per share.

Current wording

NET INCOME AND ADJUSTED NET INCOME: Net income increased during the three months ended September 30, 2025 compared to 2024, primarily relating to slightly higher sales volume, including anincrease in organic revenue, and improvements to gross profit margin percentage, reflecting the actions in our Simplify to Accelerate NOW strategy. Adjusted net income for the quarters ended September 30, 2025 and 2024 was $9,885 and $5,068, respectively. Adjusted diluted earnings per share for the third quarter of 2025 and 2024 were $0.59 and $0.31, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non–GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to adjusted net income and diluted earnings per share to adjusted diluted earnings per share.

Previous wording

EBITDA AND ADJUSTED EBITDA: EBITDA was $17,255 for the second quarter of 2025 compared to $11,249 for the second quarter of 2024. Adjusted EBITDA was $20,067 and $13,931 for the second quarters of 2025 and 2024, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation expense, foreign currency gain/loss and certain other items. Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA.

Current wording

EBITDA AND ADJUSTED EBITDA: EBITDA was $18,146 for the three months ended September 30, 2025 compared to $12,595 for the third quarter of 2024. Adjusted EBITDA was $20,299 and $14,432 for the third quarters of 2025 and 2024, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation expense, foreign currency gain/loss and certain other items. Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA.

Previous wording

REVENUES: The decrease in revenues for the year to date 2025 reflects decreases primarily within Vehicle and Industrial markets. Decreases in revenues compared to the prior year period are largely impacted by elevated shipments during the first three months of the prior year period as supply chains normalized, combined with elevated inventory levels and slowing demand at our customers in the first three months of the current period, offset partially by year-over-year growth in certain markets during the second quarter of 2025 compared to the prior year period. Our revenues for the period ended June 30, 2025 was comprised of 54% to U.S. customers and 46% to customers primarily in Europe, Canada and Asia-Pacific. The overall decrease in revenue was due to a 3.9% volume decrease partially offset by a 0.2% favorable currency impact. Organic revenue decreased 4.3% during the year to date 2025.

Current wording

REVENUES: The increase in revenues for the nine months ended September 30, 2025 reflects increases primarily within Aerospace and Defense, Industrial, and Medical markets, partially offset by a decrease in the Vehicle market. The increase in revenue is partially offset by elevated shipments during the first three months of the prior year period as supply chains normalized, combined with elevated inventory levels and slower demand at our customers in the first three months of the current year. Our revenues for the period ended September 30, 2025 was comprised of 55% to U.S. customers and 45% to customers primarily in Europe, Canada and Asia-Pacific. The overall increase in revenue was due to a 0.7% favorable foreign currency impact and a 0.1% volume increase. Organic revenue decreased 0.2% during nine months ended September 30, 2025. Organic revenue is a non-GAAP measure. Refer to information included in “Non-GAAP Measures” below for a discussion and reconciliation of the non-GAAP measures.

Previous wording

GROSS PROFIT AND GROSS MARGIN: Gross profit increased to $89,108 for year to date 2025 from $88,053 in 2024 driven by decreases in cost of goods sold, and gross margins increased to 32.7% for 2025, compared to 31.1% for 2024. Gross profit and gross margin percentage were impacted favorably by improved product mix and operational improvements driven by our Simplify to Accelerate NOW strategy, partially offset by lower sales volume.

Current wording

GROSS PROFIT AND GROSS MARGIN: Gross profit increased to $135,289 for the nine months ended September 30, 2025 from $127,317 in 2024 driven by decreases in cost of goods sold, and gross margins increased to 32.9% for 2025, compared to 31.2% for 2024. Gross profit and gross margin percentage were impacted favorably by improved product mix and operational improvements driven by our Simplify to Accelerate NOW strategy.

Previous wording

SELLING EXPENSES: Selling expenses decreased 7% during year to date 2025 compared to 2024, reflecting cost reduction actions taken as part of our Simplify to Accelerate NOW strategy. Selling expenses as a percentage of revenues were 4% and 5% during year to date 2025 and 2024, respectively.

Current wording

SELLING EXPENSES: Selling expenses decreased 5% during the nine months ended September 30, 2025 compared to 2024, reflecting cost reduction actions taken as part of our Simplify to Accelerate NOW strategy as well as impacts of sales mix. Selling expenses as a percentage of revenues were 4% and 5% during the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses decreased by 1% during the six months ended June 30, 2025 compared to the same period of 2024, reflecting cost reduction actions taken as part of our Simplify to Accelerate NOW strategy, offset, in part, by higher incentive compensation. As a percentage of revenues, general and administrative expenses were 10% in each of 2025 and 2024.

Current wording

Simplify to Accelerate NOW strategy, offset, in part, by higher incentive compensation. As a percentage of revenues, general and administrative expenses were 10% in each of 2025 and 2024.

Previous wording

ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses decreased by 9% during the year to date 2025 compared to 2024, reflecting cost reduction actions taken as part of our Simplify to Accelerate NOW strategy. As a percentage of revenues, engineering and development expenses were 7% for the six months ended June 30, 2025 compared to 8% for the six months ended June 30, 2024.

Current wording

ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses decreased by 4% during the nine months ended September 30, 2025 compared to 2024, reflecting cost reduction actions taken as part of our Simplify to Accelerate NOW strategy. As a percentage of revenues, engineering and development expenses were 7% for each of the nine months ended September 30, 2025 and 2024.

Previous wording

AMORTIZATION OF INTANGIBLE ASSETS: Amortization of intangible assets increased for year to date 2025 compared to 2024.

Current wording

AMORTIZATION OF INTANGIBLE ASSETS: Amortization of intangible assets remained consistent for the nine months ended September 30, 2025 compared to 2024.

Previous wording

INTEREST EXPENSE: Interest expense increased by 6% for the year to date 2025 compared to 2024 primarily due to an increase in the average effective interest rate on debt due to maturity of certain interest rate swaps, partially offset by lower average debt levels. The increase in interest expense is partially offset by reductions to interest expense realized through our interest rate swaps.

Current wording

INTEREST EXPENSE: Interest expense increased by 4% for the nine months ended September 30, 2025 compared to 2024 primarily due to an increase in the average effective interest rate on debt due to maturity of certain interest rate swaps, partially offset by lower average debt levels. Interest expense incurred is partially offset by reductions to interest expense realized through our interest rate swaps.

Previous wording

INCOME TAXES: For the six months ended June 30, 2025 and 2024, the effective income tax rate was 22.0% and 21.6%, respectively. The change in rates compared to the prior year is primarily due to the impact of discrete tax costs on share based awards. We expect our income tax rate for the full year 2025 to be approximately 21% to 23%.

Current wording

INCOME TAXES: For the nine months ended September 30, 2025 and 2024, the effective income tax rate was 22.1% and 21.8%, respectively. We expect our income tax rate for the full year 2025 to be approximately 21% to 23%.

Previous wording

NET INCOME AND ADJUSTED NET INCOME: Net income increased during year to date 2025 compared to 2024, primarily relating to a decrease in cost of goods sold, as well as a decrease in operating expenses, partially offset by lower sales volume. Adjusted net income for the six month periods ended June 30, 2025 and 2024 was $17,119 and $14,403, respectively. Adjusted diluted earnings per share for year to date 2025 and 2024 were $1.03 and $0.87, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non– GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to Adjusted net income and diluted earnings per share to Adjusted diluted earnings per share.

Current wording

NET INCOME AND ADJUSTED NET INCOME: Net income increased during the nine months ended September 30, 2025 compared to 2024, primarily relating to higher sales volume and improvements to gross profit margin percentage, as well as a decrease in operating expenses. Adjusted net income for the nine month periods ended September 30, 2025 and 2024 was $27,003 and $19,471, respectively. Adjusted diluted earnings per share for the nine months ended September 30, 2025 and 2024 were $1.62 and $1.17, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non– GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to Adjusted net income and diluted earnings per share to Adjusted diluted earnings per share.

Previous wording

EBITDA AND ADJUSTED EBITDA: EBITDA was $31,631 for year to date 2025 compared to $29,843 for year to date 2024. Adjusted EBITDA was $37,540 and $33,971 for year to date 2025 and 2024, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation expense, foreign currency gain/loss and certain other items. Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA.

Current wording

EBITDA AND ADJUSTED EBITDA: EBITDA was $49,777 for the nine months ended September 30, 2025 compared to $42,438 for the nine months ended September 30, 2024. Adjusted EBITDA was $57,838 and $48,404 for the nine months ended September 30, 2025 and 2024, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization. Adjusted EBITDA also excludes stock-based compensation expense, foreign currency gain/loss and certain other items. Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA.

Previous wording

The Company believes that revenue excluding foreign currency exchange impacts is a useful measure in analyzing sales results. The Company excludes the effect of currency translation from revenue for this measure because currency translation is not fully under management’s control, is subject to volatility and can obscure underlying business trends. The portion of revenue attributable to currency translation is calculated as the difference between the current period revenue and the current period revenue after applying foreign exchange rates from the prior period.

Current wording

management’s control, is subject to volatility and can obscure underlying business trends. The portion of revenue attributable to currency translation is calculated as the difference between the current period revenue and the current period revenue after applying foreign exchange rates from the prior period.

Previous wording

The Company’s calculation of Revenue excluding foreign currency exchange impacts for the three and six months ended June 30, 2025 is as follows:

Current wording

The Company’s calculation of Revenue excluding foreign currency exchange impacts for the three and nine months ended September 30, 2025 is as follows:

Previous wording

The Company’s calculation of organic revenue for the three and six months ended June 30, 2025 is as follows:

Current wording

The Company’s calculation of organic revenue for the three and nine months ended September 30, 2025 is as follows:

Previous wording

The Company’s calculation of EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):

Current wording

The Company’s calculation of EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024 is as follows (in thousands):

Previous wording

The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands except per share amounts):

Current wording

The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for the three and nine months ended September 30, 2025 and 2024 is as follows (in thousands except per share amounts):

Previous wording

The Company’s liquidity position as measured by cash and cash equivalents increased by $13,813 to a balance of $49,915 at June 30, 2025 from December 31, 2024.

Current wording

The Company’s liquidity position as measured by cash and cash equivalents increased by $3,374 to a balance of $39,476 at September 30, 2025 from December 31, 2024.

Previous wording

Of the $49,915 of cash and cash equivalents at June 30, 2025, $38,609 was located at our foreign subsidiaries and may be subject to withholding tax if repatriated back to the U.S. The Company regularly evaluates opportunities to optimize cash available from operations in all geographies.

Current wording

Of the $39,476 of cash and cash equivalents at September 30, 2025, $34,293 was located at our foreign subsidiaries and may be subject to withholding tax if repatriated back to the U.S. The Company regularly evaluates opportunities to optimize cash available from operations in all geographies.

Previous wording

During the six months ended June 30, 2025, the increase in cash provided by operating activities is due to improved cash used/provided by inventory, decrease in cash used in accounts payable and accrued liabilities, and higher net income, offset by decrease in cash inflows on collections on accounts receivable.

Current wording

During the nine months ended September 30, 2025, the increase in cash provided by operating activities is due to higher net income as adjusted by non-cash operating activity items, offset by decrease in cash inflows on collections on accounts receivable.

Previous wording

The decrease in cash used in investing activities in the six months ended June 30, 2025 relates to $20,000 in cash paid for the acquisition of SNC, as well as $6,250 of cash paid relating to the 2022 Spectrum acquisition in the first quarter of 2024. Cash used in investing activities in the six months ended June 30, 2025 includes $3,189 for purchases of property and equipment compared to

Current wording

The decrease in cash used in investing activities in the nine months ended September 30, 2025 relates to $20,000 in cash paid for the acquisition of SNC, net of cash acquired of $881, as well as $6,250 of cash paid relating to the 2022 Spectrum acquisition in the first quarter of 2024. Cash used in investing activities in the nine months ended September 30, 2025 includes $5,090 for purchases of property and equipment compared to $6,903 during the nine months ended September 30, 2024. Capital expenditures are expected to be between $6,500 and $8,500 for the full year 2025.

Previous wording

The decrease in cash used/provided by financing activities during the six months ended June 30, 2025 is primarily due toborrowings of $20,000 to fund the SNC acquisition during the first quarter of 2024. Debt payments of $22,221 were made during the six months ended June 30, 2025. The $50,000 Notes issued in March 2024 were used to pay down the Revolving Facility. As of June 30, 2025, we had $146,962 of obligations under the Revolving Facility, excluding deferred financing costs.

Current wording

The change in cash (used in)/provided by financing activities during the nine months ended September 30, 2025 is primarily due toborrowings of $20,000 to fund the SNC acquisition during the first quarter of 2024. Debt payments of $34,334 were made during the nine months ended September 30, 2025. The $50,000 Notes issued in March 2024 were used to pay down the Revolving Facility. As of September 30, 2025, we had $134,963 of obligations under the Revolving Facility, excluding deferred financing costs.

Previous wording

As of June 30, 2025, the unused Revolving Facility was $133,038. The amount available to borrow may be limited by our debt and EBITDA levels, which impacts our covenant calculations. The Revolving Facility matures March 1, 2029. The Series A Senior Notes, under the 2024 Note Payable Agreement, are due March 21, 2031.

Current wording

As of September 30, 2025, the unused Revolving Facility was $145,037. The amount available to borrow could be limited by our debt and EBITDA levels, which impacts our covenant calculations. The Revolving Facility matures March 1, 2029. The Series A Senior Notes, under the 2024 Note Payable Agreement, are due March 21, 2031.

Previous wording

The Company declared dividends of $0.06 per share during each of the six months ended June 30, 2025 and 2024. The Company’s working capital, capital expenditure and dividend requirements are expected to be funded from cash provided by operations and amounts available under the Amended Credit Agreement.

Current wording

The Company declared dividends of $0.09 per share during each of the nine months ended September 30, 2025 and 2024. The Company’s working capital, capital expenditure and dividend requirements are expected to be funded from cash provided by operations and amounts available under the Amended Credit Agreement.