DIODES INC /DEL/
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
DIOD$77.36+13.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000950170-25-105233
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001193125-25-270081
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 130 previous paragraphs and 134 current paragraphs.
97 unchanged; 31 reworded; 4 added; 1 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
We leverage our expanded product portfolio of analog and discrete power solutions combined with leading-edge packaging technology to meet customers’ needs. Our broad range of application-specific products and solutions-focused sales, coupled with global operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-volume, high-growth markets.
Current report
Net sales for the three months ended September 30, 2025 increased 7% sequentially and 12% year-over-year driven by strong demand across the general computing market, including artificial intelligence related server applications as well as data center and edge computing. The Company’s global point of sales increased the strongest in Asia followed by North America. Additionally, channel inventory is at healthy levels, decreasing again this quarter in terms of dollars and weeks with overall inventory dollars decreasing over 25% from peak levels.
Current report
While the rate of recovery in the automotive and industrial markets continues to be slower than expected, revenue increased both sequentially and year-over-year in both of these end markets. When coupled with the computing market growing the strongest along with the consumer market also increasing sequentially, product mix unfavorably weighed on gross margin during the quarter. Future margin expansion will be driven by the Company’s higher-margin automotive and industrial end markets combined with increased new product introductions in all target markets as well as improved loading across our manufacturing facilities.
Current report
We recognized an income tax expense of approximately $3.6 million for the three months ended September 30, 2025 and 2024, respectively. The similarity in income tax expense between periods is consistent with comparable levels of pretax book income in the respective quarters.
Removed paragraphs (1)
Previous report
Net sales for the three months ended June 30, 2025, exceeded the Company’s expectations due to ongoing improvement in market conditions and demand. Distribution point of sales increased in all global regions with double-digit growth in Asia both year over year and versus the first quarter of 2025. The increasing demand in the three months ended June 30, 2025 also contributed to channel inventory being reduced further and with both channel and internal inventory days decreasing. While the Company has seen signs of a broader market recovery, the consumer market experienced the strongest growth during the quarter. The less favorable end market mix combined with continued low internal factory utilization is limiting gross margin expansion near term. Channel inventory depletion continues to limit increased loading at our manufacturing facilities, resulting in under loading costs creating difficulty in gross margin expansion.
Reworded paragraphs (31)
Previous wording
We are a leading global manufacturer and supplier of high-quality application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. The Company serves the industrial, automotive, computing, consumer, and communications markets. For more information about our product and markets we serve, see Note 1 – Summary of Operations and Significant Accounting Policies, included in the condensed consolidated financial statements in Item 1 above. Our products are sold primarily throughout Asia, the Americas, and Europe. We believe focusing on dependable delivery and support tailored to specific end-user applications and our solution-selling approach has fostered deep customer relationships and created a key competitive advantage for us in the highly fragmented discrete, logic, analog, and mixed-signal semiconductor marketplace. We believe our close relationships with our customers have provided us with keener insight into our customers’ product needs. This results in a stronger demand for our product designs and often provides us with insight into additional opportunities for new design wins in our customers’ products.
Current wording
For more information about our product and markets we serve, see Note 1 – Summary of Operations and Significant Accounting Policies, included in the condensed consolidated financial statements in Item 1 above.
Previous wording
Net sales were $366.2 million, an increase of 14.5% from the $319.8 million in the three months ended June 30, 2024 and an increase of 10.3% from the $332.1 in three months ended March 31, 2025;
Current wording
Net sales were $392.2 million, an increase of 12.0% from the $350.1 million in the three months ended September 30, 2024 and an increase of 7.1% from the $366.2 in three months ended June 30, 2025;
Previous wording
Gross profit was $115.3 million, an increase of 7.4% from the $107.4 million in the three months ended June 30, 2024 and an increase of 10.2% from the $104.7 million in the three months ended March 31, 2025;
Current wording
Gross profit was $120.5 million, an increase of 2.1% from the $118.0 million in the three months ended September 30, 2024 and an increase of 4.5% from the $115.3 million in the three months ended June 30, 2025;
Previous wording
Gross profit margin was 31.5%, compared to 33.6% in the three months ended June 30, 2024 and 31.5% in the three months ended March 31, 2025;
Current wording
Gross profit margin was 30.7%, compared to 33.7% in the three months ended September 30, 2024 and 31.5% in the three months ended June 30, 2025;
Previous wording
Net income was $46.1 million, compared to net income of $8.0 million in the three months ended June 30, 2024 and net loss of $4.4 million in the three months ended March 31, 2025;
Current wording
Net income was $14.3 million, compared to net income of $13.7 million in the three months ended September 30, 2024 and net income of $46.1 million in the three months ended June 30, 2025;
Previous wording
Earnings per share attributable to common stockholders was $0.99 per diluted share, compared to $0.17 per diluted share in the three months ended June 30, 2024 and a loss of $0.10 per diluted share in the three months ended March 31, 2025; and
Current wording
Earnings per share attributable to common stockholders was $0.31 per diluted share, compared to $0.30 per diluted share in the three months ended September 30, 2024 and $0.99 per diluted share in the three months ended June 30, 2025; and
Previous wording
Cash flow provided by operations was $41.5 million. We had $20.4 million of capital expenditures. Net cash flow was ($18.2) million.
Current wording
Cash flow provided by operations was $79.1 million. We had $16.3 million of capital expenditures. Net cash flow was $59.3 million.
Previous wording
As of June 30, 2025, our cash, cash equivalents, and short-term investments were $327.3 million, and we had access to unused borrowing capacity of $225.0 million under the revolving portion of our U.S. Credit Agreement. We believe our liquidity and our borrowing capacity will allow us to cover our cash needs for working capital, capital expenditures, and acquisitions for at least the next 12 months.
Current wording
As of September 30, 2025, our cash, cash equivalents, and short-term investments were $386.4 million, and we had access to unused borrowing capacity of $225.0 million under the revolving portion of our U.S. Credit Agreement. We believe our liquidity and
Previous wording
Net sales increased approximately $46.4 million, or 14.5%, for the three months ended June 30, 2025, compared to the same period last year, primarily due to strong momentum in Asia. During the three months ended June 30, 2025, weighted-average sales price
Current wording
Net sales increased approximately $42.1 million, or 12.0%, for the three months ended September 30, 2025, compared to the same period last year, primarily due to strong demand in the computing market, especially for artificial intelligence related server applications as well as data center and edge computing. During the three months ended September 30, 2025, weighted-average sales price decreased
Previous wording
-23- decreased 4.2% and volume increased 19.5%, when compared to the same period in 2024. The decrease in weighted-average sales price was primarily due to lower market pricing.
Current wording
4.1% and volume increased 19.5%, when compared to the same period in 2024. The decrease in weighted-average sales price was primarily due to lower market pricing.
Previous wording
For the three months ended June 30, 2025, gross profit increased approximately 7.4% when compared to the same period last year primarily due to higher net sales. Gross profit margin for the three months ended June 30, 2025 and 2024 was 31.5% and 33.6%, respectively. The decrease in gross profit margin was primarily due to factory utilization and lower market pricing.
Current wording
For the three months ended September 30, 2025, gross profit increased approximately 2.1% when compared to the same period last year primarily due to higher net sales. Gross profit margin for the three months ended September 30, 2025 and 2024 was 30.7% and 33.7%, respectively. The decrease in gross profit margin was primarily due to factory utilization and lower market pricing.
Previous wording
Operating expenses for the three months ended June 30, 2025, increased $2.3 million when compared to the three months ended June 30, 2024. Operating expenses as a percentage of net sales were 28.9% and 32.4% for the three months ended June 30, 2025 and 2024, respectively. SG&A increased approximately $1.0 million as compared to the same period last year reflecting an increase in discretionary benefits of $1.8 million, expense related to stock grants of $1.4 million, and expense related to professional services of $1.1 million, partially offset by decreases in selling expenses of $3.7 million. SG&A, as a percentage of net sales, was 16.2% and 18.3% for the three months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025, research and development expenses (“R&D”) increased approximately $7.3 million when compared to the three months ended June 30, 2024, due to increased R&D spending in wages and benefits of $1.8 million, supplies expense of $1.3 million, and marketing expense of $2.4 million. R&D, as a percentage of net sales, was 11.1% and 10.4% for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Operating expenses for the three months ended September 30, 2025, increased $12.8 million when compared to the three months ended September 30, 2024. Operating expenses as a percentage of net sales were 27.8% and 27.5% for the three months ended September 30, 2025 and 2024, respectively. SG&A increased approximately $1.1 million as compared to the same period last year reflecting an increase in salaries and wages of $3.7 million, partially offset by decreases in selling expenses of $2.0 million and professional services of $1.1 million. SG&A, as a percentage of net sales, was 15.4% and 17.0% for the three months ended three months ended September 30, 2025 and 2024 respectively. For the three months ended September 30, 2025, research and development expenses (“R&D”) increased approximately $8.2 million when compared to the three months ended September 30, 2024, due to increased R&D spending in wages and benefits of $2.7 million, increased depreciation and amortization of $2.3 million, operating expense of $1.5 million, and marketing expense of $1.3 million. R&D, as a percentage of net sales, was 10.7% and 9.6% for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Interest income increased $2.8 million, or 65.8%, for the three months ended June 30, 2025, compared to the same period last year, reflecting interest income received in the Company’s derivative hedging instruments. Interest expense was flat for the three months ended June 30, 2025, compared to the same period last year. During the three months ended June 30, 2025, the Company recognized changes in unrealized gains on investments for mark-to-market adjustments to adjust the value of the investments. These mark-to-market adjustments include a $33.3 million increase in the value of the Company’s investment in Atlas. The Company recognized a gain of approximately $13.7 million related to the disposal of a subsidiary.
Current wording
Interest income increased $4.0 million, or 87.3%%, for the three months ended September 30, 2025, compared to the same period last year, reflecting interest income received in the Company’s derivative hedging instruments. Interest expense was flat for the three months ended September 30, 2025, compared to the same period last year. During the three months ended September 30, 2025, the Company recognized $2.4 in unrealized gains on investments for mark-to-market adjustments.
Previous wording
Results of operations for the six months ended June 30, 2025 and 2024
Current wording
Results of operations for the nine months ended September 30, 2025 and 2024
Previous wording
The following table and discussion explains in greater detail our consolidated operating results and financial condition for the six months ended June 30, 2025, compared to the three months ended June 30, 2024. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Current wording
The following table and discussion explains in greater detail our consolidated operating results and financial condition for the nine months ended September 30, 2025, compared to the three months ended September 30, 2024. This discussion should be read in
Previous wording
Net sales increased approximately $76.6 million, or 12.3%, for the six months ended June 30, 2025, compared to the same period last year, primarily due to increased demand in Asia. During the six months ended June 30, 2025, weighted-average sales price increased 2.6% and volume increased 9.5%, when compared to the same period in 2024. The increase in weighted-average sales price was primarily due to product mix.
Current wording
Net sales increased approximately $118.7 million, or 12.2%, for the nine months ended September 30, 2025, compared to the same period last year. During the nine months ended September 30, 2025, weighted-average sales price increased 0.1% and volume increased 12.1%, when compared to the same period in 2024. The increase in weighted-average sales price was primarily due to product mix.
Previous wording
The table below sets forth our product revenue as a percentage of total product revenue by end-user market for the six months ended June 30, 2025 and 2024:
Current wording
The table below sets forth our product revenue as a percentage of total product revenue by end-user market for the nine months ended September 30, 2025 and 2024:
Previous wording
For the six months ended June 30, 2025, gross profit increased approximately 6.3% when compared to the same period last year primarily due to higher net sales. Gross profit margin for the six months ended June 30, 2025 and 2024 was 31.5% and 33.3%, respectively. The decrease in gross profit margin was primarily due to lower factory utilization and lower market pricing.
Current wording
For the nine months ended September 30, 2025, gross profit increased approximately 4.8% when compared to the same period last year primarily due to higher net sales. Gross profit margin for the nine months ended September 30, 2025 and 2024 was 31.2% and 33.4%, respectively. The decrease in gross profit margin was primarily due to lower factory utilization and lower market pricing.
Previous wording
Operating expenses for the six months ended June 30, 2025, increased $19.0 million when compared to the six months ended June 30, 2024. Operating expenses as a percentage of net sales were 30.0% and 30.6% for the six months ended June 30, 2025 and 2024, respectively. SG&A increased approximately $6.0 million as compared to the same period last year reflecting an increase in salaries and wages of $9.2 million. The increase in salaries and wages in 2025 when compared to 2024 is partially related to a reversal of bonus accruals in 2024 for bonuses that were not paid. SG&A, as a percentage of net sales, was 16.9% and 18.0% for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025, R&D increased approximately $12.0 million when compared to the six months ended June 30, 2024 due to increased R&D expenses related to marketing of $3.8 million, supplies of $2.6 million, and salaries and benefits of $3.0 million. R&D, as a percentage of net sales, was 11.3% and 10.8% for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Operating expenses for the nine months ended September 30, 2025, increased $31.8 million when compared to the nine months ended September 30, 2024. Operating expenses as a percentage of net sales were 29.2% and 29.5% for the nine months ended September 30, 2025 and 2024, respectively. SG&A increased approximately $7.1 million as compared to the same period last year reflecting an increase in salaries and wages of $12.9 million. The increase in salaries and wages in 2025 when compared to 2024 is partially related to a reversal of bonus accruals in 2024 for bonuses that were not paid. SG&A, as a percentage of net sales, was 16.4% and 17.7% for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025, R&D increased approximately $20.2 million when compared to the nine months ended September 30, 2024 due to increased R&D expenses related to R&D operating expense of $5.0 million, marketing of $5.1 million, supplies of $2.6 million, and salaries and benefits of $5.8 million. R&D, as a percentage of net sales, was 11.1% and 10.4% for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Interest income increased $4.0 million, or 45.0%, for the six months ended June 30, 2025, compared to the same period last year, reflecting interest income received in the Company’s derivative hedging instruments. Interest expense was flat for the six months ended June 30, 2025, compared to the same period last year. During the six months ended June 30, 2025, the Company recognized an impairment loss on an equity investment of $5.8 million, due to a decline in the value of the investment. The change in unrealized gain on investments in 2025 compared to 2024 was due to mark-to-market adjustments to adjust the value of the investments, including a $33.3 million increase in the value of the Company’s investment in Atlas. The Company recognized a gain of approximately $13.7 million related to the disposal of a subsidiary.
Current wording
Interest income increased $7.9 million, or 59.3%, for the nine months ended September 30, 2025, compared to the same period last year, reflecting interest income received in the Company’s derivative hedging instruments. Interest expense was flat for the nine months ended September 30, 2025, compared to the same period last year. During the nine months ended September 30, 2025, the Company recognized an impairment loss on an equity investment of $5.8 million, due to a decline in the value of the investment. The change in unrealized gain on investments in 2025 compared to 2024 was due to mark-to-market adjustments to adjust the value of the investments, including a $33.3 million increase in the value of the Company’s investment in Atlas. The Company recognized a gain of approximately $13.7 million related to the disposal of a subsidiary.
Previous wording
We recognized an income tax expense of approximately $9.1 million and $2.6 million for the three months ended June 30, 2025 and 2024, respectively. The increase in income taxes for 2025 compared to 2024 was primarily attributable to an increase in pretax book income.
Current wording
We recognized an income tax expense of approximately $12.6 million and $9.8 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in income taxes for 2025 compared to 2024 was primarily attributable to an increase in pretax book income.
Previous wording
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments, and our credit facilities. Our cash and cash equivalents and restricted cash increased from $314.7 million at December 31, 2024 to $322.8 million at June 30, 2025. This increase in cash, cash equivalents, and restricted cash reflects normal operations of the Company. As of June 30, 2025, we had short-term investments totaling $10.3 million. These investments are highly liquid with maturity dates greater than three months at the date of purchase. We generally can access these investments in a relatively short time frame but in doing so we generally forfeit all earned and future interest income.
Current wording
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments, and our credit facilities. Our cash and cash equivalents and restricted cash increased from $314.7 million at December 31, 2024 to $382.0 million at September 30, 2025. This increase in cash, cash equivalents, and restricted cash reflects normal operations of the Company. As of September 30, 2025, we had short-term investments totaling $9.8 million. These investments are highly liquid with maturity dates greater than three months at the date of purchase. We generally can access these investments in a relatively short time frame but in doing so we generally forfeit all earned and future interest income.
Previous wording
At June 30, 2025 and December 31, 2024, our working capital was $871.0 million and $848.6 million, respectively. We expect cash generated by our operations together with existing cash, cash equivalents, short-term investments, and available borrowing under credit facilities to be sufficient to cover our cash needs for working capital, capital expenditures, and acquisitions for at least the next 12 months.
Current wording
At September 30, 2025 and December 31, 2024, our working capital was $889.7 million and $848.6 million, respectively. We expect cash generated by our operations together with existing cash, cash equivalents, short-term investments, and available borrowing under credit facilities to be sufficient to cover our cash needs for working capital, capital expenditures, and acquisitions for at least the next 12 months.
Previous wording
Our undistributed foreign earnings continue to be indefinitely reinvested in foreign operations, with limited exceptions related to earnings of certain European and Asian subsidiaries. As of June 30, 2025, our foreign subsidiaries held approximately $198.8 million of cash, cash equivalents and investments of which approximately $76.5 million would be subject to a potential non-U.S. withholding tax if distributed outside the country in which the cash is currently held. The $76.5 million is held in Germany, China, Korea, and Taiwan.
Current wording
Our undistributed foreign earnings continue to be indefinitely reinvested in foreign operations, with limited exceptions related to earnings of certain European and Asian subsidiaries. As of September 30, 2025, our foreign subsidiaries held approximately $197.5 million of cash, cash equivalents and investments of which approximately $79.3 million would be subject to a potential non-U.S. withholding tax if distributed outside the country in which the cash is currently held. The $79.3 million is held in Germany, China, Korea, and Taiwan.
Previous wording
Our Asia subsidiaries maintain short-term credit facilities with several financial institutions through our foreign entities worldwide totaling $115.5 million. Other than two Taiwanese credit facilities that are collateralized by assets, our foreign credit lines are unsecured, uncommitted, and contain no restrictive covenants. These credit facilities bear interest at the Taipei Interbank Offering Rate (or similar indices) plus a specified margin. Interest payments are due monthly on outstanding amounts under the credit lines. The unused and available credit under the various facilities as of June 30, 2025, was approximately $87.5 million, net of $27.6 million advanced under our foreign credit lines and $0.4 million of credit used for import and export guarantee.
Current wording
Our Asia subsidiaries maintain short-term credit facilities with several financial institutions through our foreign entities worldwide totaling $148.9 million. Other than two Taiwanese credit facilities that are collateralized by assets, our foreign credit lines are unsecured, uncommitted, and contain no restrictive covenants. These credit facilities bear interest at the Taipei Interbank Offering Rate (or similar indices) plus a specified margin. Interest payments are due monthly on outstanding amounts under the credit lines. The unused and available credit under the various facilities as of September 30, 2025, was approximately $115.3 million, net of $33.2 million advanced under our foreign credit lines and $0.4 million of credit used for import and export guarantee.
Previous wording
Net cash flows from operating activities for the six months ended June 30, 2025 was $98.3 million. The following recurring operating items gave rise to the calculation of net cash flows from operating activities for the six months ended June 30, 2025: Net income of $41.4 million, depreciation and amortization of intangible assets of $71.8 million, a net increase of $15.3 million of changes in working capital accounts, and share-based compensation of $12.2 million. During the six months ended June 30, 2025 the Company also recognized net investment gains of $39.4 million, including a $33.3 million non-cash mark-to-market increase in the value of the Company’s investment in Atlas, a non-cash mark-to-market decrease of $7.7 million of previously made equity investments, and a gain on the disposal of a subsidiary for $13.7 million.
Current wording
Net cash flows from operating activities for the nine months ended September 30, 2025 was $177.4 million. The following recurring operating items gave rise to the calculation of net cash flows from operating activities for the nine months ended September 30, 2025: Net income of $56.9 million, depreciation and amortization of intangible assets of $108.5 million, a net increase of $43.3 million of changes in working capital accounts, and share-based compensation of $19.0 million. During the nine months ended September 30, 2025 the Company also recognized net investment gains of $27.6 million, including a $33.3 million non-cash mark-to-market increase in the value of the Company’s investment in Atlas, a non-cash mark-to-market decrease of $5.5 million of previously made equity investments, and a gain on the disposal of a subsidiary for $13.7 million.
Previous wording
Net cash flows from operating activities for the six months ended June 30, 2024 was ($16.7) million. Our net use of cash from operating activities for the six months ended June 30, 2024 resulted from net income of $25.4 million, depreciation and amortization of intangible assets of $68.6 million and share-based compensation of $9.3 million. The increases were offset by a net decrease of $104.4 million due to changes in operating asset and liability accounts, and non-cash gains and other income of $15.8 million.
Current wording
Net cash flows from operating activities for the nine months ended September 30, 2024 was $37.6 million. Our net use of cash from operating activities for the nine months ended September 30, 2024 resulted from net income of $40.6 million, depreciation and amortization of intangible assets of $90.8 million and share-based compensation of $16.1 million. The increases were offset by a net decrease of $104.9 million due to changes in operating asset and liability accounts, and non-cash gains and other income of $15.8 million.
Previous wording
During the six months ended June 30, 2024, we used cash to fund increases in accounts receivable as sales began to improve in the second quarter of 2024, and used cash to fund increases in inventories, particularly in finished goods, to improve our product availability in a dynamic market environment. We also used cash to decrease accounts payable and accrued liabilities by as part of normal business operations.
Current wording
During the nine months ended September 30, 2024, we generated cash through the collection in accounts receivable and used cash to fund increases in inventories, particularly in finished goods, to improve our product availability in a dynamic market environment. We also used cash to decrease accounts payable and accrued liabilities as part of normal business operations.
Previous wording
Net cash and cash equivalents from investing activities was ($78.6) million for the six months ended June 30, 2025. Net cash and cash equivalents from investing activities for the three months ended June 30, 2025 was primarily due to purchases of property, plant, and equipment of $36.3 million, or 5.2% of net sales. We expect capital expenditures for the twelve months ended December 31, 2025 to be within our target model of 5% to 9% of net sales. The Company made purchases of equity securities, including making an investment in ATX of approximately $30.0 million, increasing its investment in Atlas by approximately $17.3 million, and the acquisition of the minority interest in a joint venture in Taiwan for approximately $4.1 million, bringing the Company’s ownership to 100%. The Company also paid approximately $6.9 million due to the expiration of a hedge instrument. These uses of cash for investing were partially offset by the receipt of approximately $16.0 million related to the sale of TFS.
Current wording
Net cash and cash equivalents from investing activities was $(94.0) million for the nine months ended September 30, 2025. Net cash and cash equivalents from investing activities for the nine months ended September 30, 2025 was primarily due to purchases of property, plant, and equipment of $52.7 million, or 4.8% of net sales. We expect capital expenditures for the twelve months ended December 31, 2025 to be within our target model of 5% to 9% of net sales. The Company made purchases of equity securities of $49.3 million, including making an investment in ATX of approximately $30.0 million, increasing its investment in Atlas by approximately $17.3 million, and the acquisition of the minority interest in a joint venture in Taiwan for approximately $4.1 million, bringing the Company’s ownership to 100%. The Company also paid approximately $6.9 million due to the expiration of a hedge instrument. These uses of cash for investing were partially offset by the receipt of approximately $16.0 million related to the sale of TFS.
Previous wording
Net cash and cash equivalents from investing activities was ($30.8) million for the six months ended June 30, 2024. Net cash and cash equivalents used in investing activities for the six months ended June 30, 2024 was primarily due to purchases of property, plant, and equipment of $38.3 million, or 6.2% of net sales.
Current wording
Net cash and cash equivalents from investing activities was ($48.9) million for the nine months ended September 30, 2024. Net cash and cash equivalents used in investing activities for the nine months ended September 30, 2024 was primarily due to purchases of property, plant, and equipment of $53.3 million, or 5.5% of net sales. This outflow of cash to purchase property, plant and equipment was partially offset by the receipt of an insurance recovery of $4.7 million and net proceeds from the sale of short-term investments of $2.5 million.
Previous wording
Net cash and cash equivalents from financing activities was ($30.1) million for the three months ended June 30, 2025. Net cash from financing activities in the three months ended June 30, 2025 consisted of net decreases in non-controlling interests of $13.5 million, stock repurchases of $10.0 million, $5.0 million of net decreases in our debt, and taxes paid on net share settlements of $1.6 million. Net cash and cash equivalents from financing activities was ($17.0) million for the six months ended June 30, 2024. Net cash provided by financing activities in the six months ended June 30, 2024 consisted primarily of $13.5 million of net decreases in our debt and taxes paid on net share settlements of $5.7 million.
Current wording
Net cash and cash equivalents from financing activities was $(30.8) million for the nine months ended September 30, 2025. Net cash from financing activities in the nine months ended September 30, 2025 consisted of net decreases in non-controlling interests of $18.0 million, stock repurchases of $10.0 million, $1.6 million of net decreases in our debt, and taxes paid on net share settlements of $4.3 million. Net cash and cash equivalents from financing activities was ($15.5) million for the nine months ended September 30, 2024. Net cash provided by financing activities in the nine months ended September 30, 2024 consisted primarily of $3.8 million of net decreases in our debt and taxes paid on net share settlements of $9.5 million.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
-23- our borrowing capacity will allow us to cover our cash needs for working capital, capital expenditures, and acquisitions for at least the next 12 months.
Current report — wording carried from elsewhere
-25- conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
We recognized an income tax expense of approximately $9.1 million and $6.2 million for the six months ended June 30, 2025 and 2024, respectively. The increase in income taxes for 2025 compared to 2024 was primarily attributable to an increase in pretax book income.