AMPCO PITTSBURGH CORP

Previous wording

The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by us or on behalf of Ampco-Pittsburgh Corporation and its subsidiaries (collectively, “we,” “us,” “our,” or the “Corporation”). Management’s Discussion and Analysis of Financial Condition and Results of Operationsand other sections of this Quarterly Report on Form 10-Q, as well as the condensed consolidated financial statements and notes hereto, may include, but are not limited to, statements about operating performance, trends and events we expect or anticipate will occur in the future, statements about sales and production levels, timing of orders for our products, restructurings, the impact from pandemics and geopolitical conflicts, profitability and anticipated expenses, inflation, the global supply chain, the continued impact of tariffs, global trade conditions, and cash outflows. All statements in this document other than statements of historical fact are statements that are, or could be, deemed “forward-looking statements” within the meaning of the Act and words such as “may,” “will,” “intend,” “believe,” “expect,” “anticipate,” “estimate,” “project,” “target,” “goal,” “forecast,” and other terms of similar meaning that indicate future events and trends are also generally intended to identify forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made, are not guarantees of future performance or expectations, and involve risks and uncertainties. For us, these risks and uncertainties include, but are not limited to:

Current wording

The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by us or on behalf of Ampco-Pittsburgh Corporation and its subsidiaries (collectively, “we,” “us,” “our,” or the “Corporation”). Management’s Discussion and Analysis of Financial Condition and Results of Operationsand other sections of this Quarterly Report on Form 10-Q, as well as the condensed consolidated financial statements and notes hereto, may include, but are not limited to, statements about operating performance, trends and events we expect or anticipate will occur in the future, statements about sales and production levels, timing of orders for our products, restructurings, the impact from pandemics and geopolitical conflicts, profitability and anticipated expenses, inflation, the global supply chain, the continued impact of tariffs, global trade conditions, the number and size of asbestos-related claims and sufficiency of asbestos-related insurance coverage, our ability to convert backlog to revenue in a timely manner, and cash outflows. All statements in this document other than statements of historical fact are statements that are, or could be, deemed “forward-looking statements” within the meaning of the Act and words such as “may,” “will,” “intend,” “believe,” “expect,” “anticipate,” “estimate,” “project,” “target,” “goal,” “forecast,” and other terms of similar meaning that indicate future events and trends are also generally intended to identify forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made, are not guarantees of future performance or expectations, and involve risks and uncertainties. For us, these risks and uncertainties include, but are not limited to:

Previous wording

Through October 13, 2025, the date immediately prior to the Filing Date, the operating results of UES-UK are included in the condensed consolidated operating results of the Corporation. Effective as of the Filing Date, the Corporation no longer consolidates the operating results of UES-UK, as the Corporation no longer has decision-making control over UES-UK. As of the Filing Date, the Corporation (i) wrote down its investment in UES-UK to its estimated fair value; (ii) recognized the other comprehensive losses of UES-UK deferred in accumulated other comprehensive loss; and (iii) established an estimated recovery for the amount of funds expected to be returned to the lenders under the Corporation's Second Amended and Restated Revolving Credit, Term Loan and Security Agreement (the “Credit Agreement”), if any, after the costs and expenses of the Structured Insolvency, since the accounts receivables, inventories, and equipment of UES-UK were held as collateral under the Credit Agreement (the “Estimated Recovery”).

Current wording

Through October 13, 2025, the date immediately prior to the Filing Date, the operating results of UES-UK are included in the condensed consolidated operating results of the Corporation. Effective as of the Filing Date, the Corporation no longer consolidates the operating results of UES-UK, as the Corporation no longer has decision-making control over UES-UK. As of the Filing Date, the Corporation (i) wrote down its investment in UES-UK to its estimated fair value; (ii) recognized the other comprehensive losses of UES-UK deferred in accumulated other comprehensive loss; and (iii) established an estimated recovery for the amount of funds expected to be returned to the lenders under the Corporation's Second Amended and Restated Revolving Credit, Term Loan and Security Agreement (the “Credit Agreement”) after the costs and expenses of the Structured Insolvency, if any, since the accounts receivables, inventories, and equipment of UES-UK were held as collateral under the Credit Agreement (the “Estimated Recovery”).

Previous wording

The Estimated Recovery recorded and outstanding as of December 31, 2025 equaled $7,500, which was based on the Corporation's assessment of the expected recovery from the insolvency proceedings, including consideration of information provided by the Administrators such as the value and the priority of the claims by various creditors. In January 2026, the Administrators distributed $1,255, which was returned to the lenders under the Credit Agreement and reduced the Corporation's balance outstanding under the Credit Agreement. As of March 31, 2026, the Corporation evaluated the collectability of the remaining Estimated Recovery and, based on updated information received from the Administrators including lower funds expected to be available for future distributions, wrote down the Estimated Recovery by $875 which is recognized as a Deconsolidation Charge in the accompanying condensed consolidated statement of operations.

Current wording

The Estimated Recovery recorded and outstanding as of December 31, 2025 equaled $7,500, which was based on the Corporation's assessment of the expected recovery from the insolvency proceedings, including consideration of information provided by the Administrators such as the value and the priority of the claims by various creditors. In January 2026, the Administrators distributed $1,255 to the Corporation, which was returned to the lenders under the Credit Agreement reducing the Corporation's balance outstanding under the Credit Agreement. Based on updated information received from the Administrators, including lower funds expected to be available for future distributions, the Corporation subsequently wrote down the Estimated Recovery by $875 which is recognized as a Deconsolidation Charge in the accompanying condensed consolidated statements of operations for the six months ended June 30, 2026.

Previous wording

The Corporation will continue to evaluate the collectability of the Estimated Recovery and will adjust the Estimated Recovery based on facts and circumstances at each reporting date. If it is determined the Estimated Recovery is expected to be lower than currently estimated, then the Estimated Recovery would be reduced and a charge to net (loss) income would be recorded. Similarly, if it is determined the Estimated Recovery is expected to be higher than currently estimated, then the Estimated Recovery would be increased and a credit to net (loss) income would be recorded. Any recovery will be distributed in the order of priority set forth in the Insolvency Act 1986.

Current wording

The Corporation will continue to evaluate the collectability of the Estimated Recovery and will adjust the Estimated Recovery based on facts and circumstances at each reporting date. If it is determined the Estimated Recovery is expected to be lower than currently estimated, then the Estimated Recovery would be reduced and a charge to net income would be recorded. Similarly, if it is determined the Estimated Recovery is expected to be higher than currently estimated, then the Estimated Recovery would be increased and a credit to net income would be recorded. Any recovery will be distributed in the order of priority set forth in the Insolvency Act 1986.

Previous wording

In addition, during 2025, the Corporation closed its non-core steel distribution facility located in Ohio previously held by Alloys Unlimited and Processing, LLC (“AUP”). In December 2025, AUP was merged into Union Electric Steel Corporation, a direct wholly owned subsidiary of the Corporation.

Current wording

In addition, during 2025, the Corporation closed its non-core steel distribution facility located in Ohio previously held by Alloys Unlimited and Processing, LLC (“AUP”). In December 2025, AUP was merged into Union Electric Steel Corporation, an indirect wholly owned subsidiary of the Corporation.

Previous wording

For the FCEP segment, global steel manufacturing capacity continues to exceed global steel product consumption. Steel demand is soft but, to date, has been improving for the segment's largest markets. In the third quarter of 2025, the U.S. government announced new tariffs on coated steel imports and, effective April 2026, tariffs were increased to 50% on most flat-rolled steel imported into the United States. These additional tariff protections cover more products for our North American customers and have meaningfully reduced imports, thereby supporting pricing, improving U.S. steel mill utilization and, in turn, increasing the number of rolling mill rolls being consumed, a positive for the segment.

Current wording

For the FCEP segment, global steel manufacturing capacity continues to exceed global steel product consumption. Steel demand has been improving over the last few quarters for the segment's largest market. In the third quarter of 2025, the U.S. government announced new tariffs on coated steel imports and, effective April 2026, tariffs were increased to 50% on most flat-rolled steel imported into the United States. These additional tariff protections cover more products for our North American customers and have meaningfully reduced imports, thereby supporting pricing, improving U.S. steel mill utilization and, in turn, increasing the number of rolling mill rolls being consumed, a positive for the segment.

Previous wording

Tariffs are now applied to steel forged and cast rolls shipped from the segment's European facilities to the United States and to U.S. forged and cast rolls shipped to China. Steel is an important distinction as the highest volume of cast rolls imported into the United States is subject only to a country-specific tariff of 10%, which will expire in the third quarter of 2026, instead of the higher rates on steel forged roll imports. As the U.S. market is underserved for cast rolls, these tariffs have had little effect on our business. Tariffs remain in place for products that compete with our FEP products, resulting in increases in orders and higher margins.

Current wording

Tariffs are now applied to steel forged and cast rolls shipped from the segment's European facilities to the United States and to U.S. forged and cast rolls shipped to China. Steel is an important distinction as the highest volume of cast rolls imported into the United States is subject only to a country-specific tariff of 10% instead of the higher rates on steel forged roll imports. As the U.S. market is underserved for cast rolls, these tariffs have had little effect on our business. Tariffs remain in place for products that compete with our FEP products, resulting in increases in orders and higher margins.

Previous wording

For the ALP segment, businesses are benefiting from increased demand across the power generation and defense sectors. By prioritizing customer relationships and delivering highly engineered solutions, we believe the segment has successfully increased market share and is actively investing in increased capacity to support this growth. Though it continues to face rising production costs due to inflation, the segment has mitigated these effects through strategic price increases. The focus for this segment is to grow revenues, strengthen engineering and manufacturing capabilities and continue to improve its sales distribution network.

Current wording

For the ALP segment, businesses are benefiting from higher demand in the power generation, primarily due to growth in the data center market, and defense sectors, primarily due to higher defense spending by U.S. Navy shipbuilders. By prioritizing customer relationships and delivering highly engineered solutions, the Corporation believes the segment has successfully increased its market share and is actively investing in increased capacity to support this growth. Though it continues to face rising production costs due to inflation, the segment has mitigated these effects through strategic price increases. With rising market demand and increasing backlog, the focus for this segment is to add to its manufacturing capacity with the timely commissioning of new equipment expected in the second half of 2026, increase its headcount, and improve its manufacturing efficiencies.

Previous wording

Net sales approximated $108,327 and $104,265 for the three months ended March 31, 2026 and 2025, respectively, an improvement of $4,062. A discussion of net sales for the Corporation’s two segments is included below.

Current wording

Net sales approximated $102,918 and $113,104 for the three months ended June 30, 2026 and 2025, respectively, a decrease of $10,186, and $211,245 and $217,369 for the six months ended June 30, 2026 and 2025, respectively, a decrease of $6,124. A discussion of net sales for the Corporation’s two segments is included below.

Previous wording

Income from operations approximated $2,562 and $3,850 for the three months ended March 31, 2026 and 2025, respectively, a decrease of $1,288. Income from operations for the three months ended March 31, 2026 includes the Deconsolidation Charge of $875 associated with the write-down of the Estimated Recovery. A discussion of income from operations for the Corporation’s two segments is included below.

Current wording

Income (loss) from operations approximated $5,072 and $(3,078) for the three months ended June 30, 2026 and 2025, respectively, an improvement of $8,150, and $7,634 and $772 for the six months ended June 30, 2026 and 2025, respectively, an increase of $6,862. Income from operations for the six months ended June 30, 2026 includes the Deconsolidation Charge of $875 associated with the write-down of the Estimated Recovery.

Previous wording

Backlog equaled $345,532 as of March 31, 2026 versus $328,937 as of December 31, 2025. Backlog represents the accumulation of firm orders on hand which: (i) are supported by evidence of a contractual arrangement, (ii) include a fixed and determinable sales price, (iii) have reasonably assured collectability, and (iv) generally are expected to ship within two years from the backlog reporting date. Backlog at a certain date may not be a direct measure of future revenue for a particular order because price increases, negotiated subsequently to the original order, are not included in backlog until the updated contract is received from the customer, certain surcharges are not determinable until the order is complete and ready for shipment to the customer, and certain orders are denominated in currency other than the functional (local) currency of the subsidiary and are not hedged. Approximately 18% of the backlog is expected to be released after 2026. A discussion of backlog by segment is included below.

Current wording

Backlog equaled $385,378 as of June 30, 2026 versus $328,937 as of December 31, 2025. Backlog represents the accumulation of firm orders on hand which (i) are supported by evidence of a contractual arrangement, (ii) include a fixed and determinable sales price, (iii) have reasonably assured collectability, and (iv) generally are expected to ship within two years from the backlog reporting date. Backlog at a certain date may not be a direct measure of future revenue for a particular order because price increases, negotiated subsequently to the original order, are not included in backlog until the updated contract is received from the customer, certain surcharges are not determinable until the order is complete and ready for shipment to the customer, and certain orders are denominated in currency other than the functional (local) currency of the subsidiary and are not hedged. Approximately 44% of the backlog is expected to be released after 2026. A discussion of backlog by segment is included below.

Previous wording

Costs of products sold, excluding depreciation and amortization, as a percentage of net sales, for the three months ended March 31, 2026 and 2025 approximated 80.1% and 78.7% respectively, with the increase primarily being driven by the FCEP segment. See further discussion in the below commentary for the Corporation’s two segments.

Current wording

Costs of products sold, excluding depreciation and amortization, as a percentage of net sales, approximated 78.4% and 81.3%, for the three months ended June 30, 2026 and 2025, respectively, and 79.3% and 80.1%, for the six months ended June 30, 2026 and 2025, respectively, with the improvement being attributable to the ALP segment. Included in costs of products sold, excluding depreciation and amortization, for the three and six months ended June 30, 2025 is the benefit from the Employee-Retention Credits. See further discussion in the below commentary for the Corporation’s two segments.

Previous wording

Selling and administrative expenses approximated $13,884 and $13,659 for the three months ended March 31, 2026 and 2025, respectively, an increase of $225. Closure of UES-UK and AUP in the fourth quarter of 2025 eliminated approximately $970 of selling and administrative costs for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025 offset by higher commissions for the ALP segment of approximately $600, higher employee-related costs, and general inflationary increases.

Current wording

Selling and administrative expenses approximated $12,917 and $12,968 for the three months ended June 30, 2026 and 2025, respectively, a decrease of $51, and $26,801 and $26,627 for the six months ended June 30, 2026 and 2025, respectively, an increase of $174. Selling and administrative expenses remained relatively comparable for each of the periods. While the closure of UES-UK and AUP in the fourth quarter of 2025 eliminated approximately $1,100 and $2,100 of selling and administrative costs for the three and six months ended June 30, 2026 when compared to the three and six months ended June 30, 2025, respectively, higher employee-related costs, higher commissions for the ALP segment, and general inflationary increases offset the expected reduction in selling and administrative expenses.

Previous wording

Depreciation and amortization approximated $4,258 and $4,636 for the three months ended March 31, 2026 and 2025, respectively, a decrease of $378 principally attributable to the absence of depreciation for UES-UK and AUP for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025.

Current wording

Depreciation and amortization approximated $4,226 and $5,368 for the three months ended June 30, 2026 and 2025, respectively, a decrease of $1,142, and $8,484 and $10,004 for the six months ended June 30, 2026 and 2025, respectively, a decrease of $1,520 principally attributable to the absence of depreciation for UES-UK and AUP. Depreciation and amortization for UES-UK and AUP approximated $1,000 and $1,400 for the three and six months ended June 30, 2025, respectively.

Previous wording

Net sales for the three months ended March 31, 2026 decreased $1,478 when compared to the same period of the prior year primarily due to:

Current wording

Interest expense decreased approximately $34 and $37 for the three and six months ended June 30, 2026 and 2025, respectively, when compared to the same periods of the prior year, primarily due to:

Previous wording

Other income – net is comprised of the following:

Current wording

Other income (expense) – net is comprised of the following:

Previous wording

Other income – net fluctuated primarily due to lower net pension and other postretirement income, which is principally attributable to the U.S. defined benefit pension plan reaching a fully funded status in early 2026, resulting in a change in its investment strategies to a more conservative portfolio.

Current wording

Lower net pension and other postretirement income, which is principally attributable to the U.S. defined benefit pension plan reaching a fully funded status in early 2026 resulting in a change in its investment strategies to a more conservative portfolio; and

Previous wording

The income tax provisions for three months ended March 31, 2025 includes a one-time income tax benefit of approximately $500, resulting from the Corporation's majority-owned Chinese joint venture initially qualifying as a high-tech enterprise (“HTE”). As a HTE, the earnings of the Chinese joint venture through the end of 2026 will be taxed at a rate of 15% (versus 25%). The HTE status is renewable, subject to certain criteria being met, for which the Chinese joint venture expects to renew.

Current wording

The income tax provision for the six months ended June 30, 2025 includes a one-time income tax benefit of approximately $500 resulting from the Corporation's majority-owned Chinese joint venture initially qualifying as a high-tech enterprise (“HTE”). As a HTE, the earnings of the Chinese joint venture through the end of 2026 will be taxed at a rate of 15% (versus 25%). The HTE status is renewable, subject to certain criteria being met, for which the Chinese joint venture expects to renew.

Previous wording

Valuation allowances are recorded against the majority of the Corporation’s deferred income tax assets. The Corporation will maintain the valuation allowances until there is sufficient evidence to support the reversal of all or some portion of the allowances. Given the Corporation’s current earnings and anticipated future earnings in Sweden and in the United States, the Corporation believes there is a reasonable possibility within the next 12 months, sufficient positive evidence may become available to allow the Corporation to conclude some portion of the valuation allowance will no longer be needed. Release of any portion of the valuation allowance would result in the recognition of deferred income tax assets on the Corporation’s condensed consolidated balance sheet and a decrease to the Corporation’s income tax expense in the period the release is recorded. The exact timing and the amount of the valuation allowance released are subject to, among many items, the level of profitability achieved. Once the valuation allowance is completely reversed, a tax provision would be recognized on future earnings.

Current wording

Valuation allowances are recorded against the majority of the Corporation’s deferred income tax assets. The Corporation will maintain the valuation allowances until there is sufficient evidence to support the reversal of all or some portion of the allowances. Given the Corporation’s current earnings and anticipated future earnings in Sweden and the United States, the Corporation believes there is a reasonable possibility within the next 12 months that sufficient positive evidence may become available to allow the Corporation to conclude some portion of the valuation allowance will no longer be needed. Release of any portion of the valuation allowance would result in the recognition of deferred income tax assets on the Corporation’s condensed consolidated balance sheets and a decrease to the Corporation’s income tax expense in the period the release is recorded. The exact timing and the amount of the valuation allowance released are subject to, among many items, the level of profitability achieved. Once the valuation allowance is completely reversed, a tax provision would be recognized on future earnings.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. OBBBA introduces multiple tax law and legislative changes. The Corporation has recognized the effects of the OBBBA provisions in its condensed consolidated financial statements to the extent they are applicable. Certain provisions of the OBBBA have effective dates after the date of this Quarterly Report on Form 10-Q; accordingly, the Corporation will continue to evaluate the impact of these provisions on its future condensed consolidated financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. OBBBA introduces multiple tax law and legislative changes. The Corporation has recognized the effects of the OBBBA provisions in its condensed consolidated financial statements to the extent they are applicable. The Corporation monitors and will continue to monitor legislative changes resulting from the OBBBA, and other legislative changes, and will incorporate the impact of such changes in the condensed consolidated financial statements when enacted.

Previous wording

Net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh equaled $(867), or $(0.04) per common share for the three months ended March 31, 2026 and included the Deconsolidation Charge, which increased the net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh by $875 and $0.04 per common share for the three months ended March 31, 2026.

Current wording

Net income attributable to Ampco-Pittsburgh and net income per common share attributable to Ampco-Pittsburgh equaled $1,489, or $0.07 per common share, and $622, or $0.03 per common share, for the three and six months ended June 30, 2026, respectively. Net income attributable to Ampco-Pittsburgh for the six months ended June 30, 2026 includes the Deconsolidation Charge, which decreased net income attributable to Ampco-Pittsburgh and net income per common share attributable to Ampco-Pittsburgh by $875 and $0.04 per common share for the six months ended June 30, 2026.

Previous wording

Net income attributable to Ampco-Pittsburgh and net income per common share attributable to Ampco-Pittsburgh for the three months ended March 31, 2025 equaled $1,142, or $0.06 per common share and included the income tax benefit resulting from the Corporation's majority-owned Chinese joint venture qualifying as an HTE of approximately $500, which improved net income attributable to Ampco-Pittsburgh and net income per common share attributable to Ampco-Pittsburgh by approximately $299 and $0.01 per common share for the three months ended March 31, 2025.

Current wording

Net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh equaled $(7,335), or $(0.36) per common share, and $(6,193), or $(0.31) per common share, for the three and six months ended June 30, 2025, respectively, including the U.K. Exit Charge and the Employee-Retention Credits. The U.K. Exit Charge and the Employee-Retention Credits impacted net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh by $6,006, or $0.30 per common share, for each of the three and six months ended June 30, 2025. The income tax benefit resulting from the Corporation's majority-owned Chinese joint venture qualifying as an HTE of approximately $500 reduced the net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh by approximately $299, or $0.01 per common share, for the six months ended June 30, 2025.

Previous wording

Lower volume of roll shipments primarily due to timing which decreased net sales by approximately $4,600; and

Current wording

Lower volume of roll shipments primarily due to the Structured Insolvency of UES-UK and lower sales of large rolls, which decreased net sales by approximately $9,300 and $13,900, respectively;

Previous wording

Higher variable-index surcharges passed through to customers as a result of fluctuations in the price of raw materials, energy and transportation costs, offset by slightly lower pricing due to changes in product mix which increased net sales by approximately $200.

Current wording

Lower pricing due to changes in product mix, partly offset by higher variable-index surcharges passed through to customers as a result of fluctuations in the price of raw materials, energy and transportation costs, which decreased net sales by approximately $2,500 and $2,300, respectively;

Previous wording

Lower volume of FEP shipments which decreased net sales by approximately $800; offset by

Current wording

Lower volume of FEP shipments for the six months ended, which decreased net sales by approximately $750; offset by

Previous wording

Changes in exchange rates used to translate net sales of the segment’s foreign subsidiaries into the U.S. dollar which increased net sales by approximately $3,700; and

Current wording

Changes in exchange rates used to translate the net sales of the segment’s foreign subsidiaries into the U.S. dollar, which increased net sales by approximately $1,200 and $4,800, respectively.

Previous wording

Lower manufacturing costs and higher variable-index surcharges net of slightly lower pricing, which increased operating results by approximately $900;

Current wording

Lower manufacturing costs including higher variable-index surcharges, which increased operating results by approximately $4,300 and $5,200;

Previous wording

Lower selling and administrative costs principally due to the closures of UES-UK and AUP offset by higher employee-related costs and general inflation, which increased operating income by approximately $500; and

Current wording

Lower selling and administrative costs principally due to the closures of UES-UK and AUP offset by higher employee-related costs and general inflation, which increased operating income by approximately $1,200 and $1,675; and

Previous wording

Changes in exchange rates used to translate the operating results of the segment’s foreign subsidiaries into the U.S. dollar which improved operating results by approximately $400.

Current wording

Changes in exchange rates used to translate the operating results of the segment’s foreign subsidiaries into the U.S. dollar, which improved operating results by approximately $100 and $500; offset by

Previous wording

Lower volume of roll and FEP shipments, primarily due to timing, and unfavorable product mix which decreased operating results by approximately $1,500; and

Current wording

Lower volume of roll and FEP shipments and unfavorable product mix, which decreased operating results by approximately $2,600 and $4,100; and

Previous wording

Unfavorable manufacturing absorption which adversely impacted operating results by approximately $2,400;

Current wording

Unfavorable manufacturing absorption, which adversely impacted operating results by approximately $1,400 and $3,800.

Previous wording

Backlog decreased at March 31, 2026 from December 31, 2025 by $6,863 primarily due to timing with customer orders for 2027 expected later in 2026. Additionally, lower exchange rates used to translate the backlog of the Corporation’s foreign subsidiaries into the U.S. dollar decreased backlog at March 31, 2026, when compared to backlog at December 31, 2025, by approximately $2,600. At March 31, 2026, approximately 11% of the segment's backlog is expected to ship after 2026.

Current wording

Backlog increased at June 30, 2026 from December 31, 2025 by $9,635 primarily due to receipt of additional customer orders due, in part, to timing and also a direct result of the aforementioned tariffs. Changes in exchange rates used to translate the backlog of the Corporation’s foreign subsidiaries into the U.S. dollar decreased backlog at June 30, 2026, when compared to backlog at December 31, 2025, by approximately $4,100. At June 30, 2026, approximately 36% of the segment's backlog is expected to ship after 2026.

Previous wording

The increase in net sales for the three months ended March 31, 2026, when compared to the same period of the prior year, is primarily due to:

Current wording

The increase in net sales for the three and six months ended June 30, 2026, when compared to the same periods of the prior year, is primarily due to:

Previous wording

Higher volume of shipments of commercial OEM product, which increased net sales by approximately $2,070; and

Current wording

Higher volume of shipments of commercial product, which increased net sales by approximately $400 and $2,500, respectively;

Previous wording

Higher volume of shipments to customers in the power generation market, which increased nets sales by approximately $850; offset by

Current wording

Higher volume of shipments to customers in the power generation market, which increased nets sales by approximately $900 and $1,700, respectively; offset by

Previous wording

Lower volume of shipments to industrial OEMs, which reduced net sales by approximately $1,380.

Current wording

Lower volume of shipments to industrial customers, which reduced net sales by approximately $100 and $1,400.

Previous wording

Higher volume of shipments of pumps and aftermarket products to customers in the power generation market, which is benefiting from increased demand due to the growth in the data center market, which increased net sales by approximately $2,120; and

Current wording

Higher volume of shipments of pumps and aftermarket products to customers in the power generation market, which increased net sales by approximately $3,500 and $5,600, respectively; offset by

Previous wording

Lower volume of shipments of new pump sets to the U.S. Navy market principally due to timing of orders as requested by customers, which decreased net sales by approximately $1,080.

Current wording

Lower volume of shipments of new pump sets and aftermarket orders to the U.S. Navy market primarily due to timing of orders requested by customers, which decreased nets sales by approximately $2,400 and $2,900, respectively.

Previous wording

The improvement in operating income for the three months ended March 31, 2026, when compared to the three months ended March 31, 2025, is principally due to:

Current wording

The improvement in operating income for the three and six months ended June 30, 2026, when compared to the three and six months ended June 30, 2025, is principally due to:

Previous wording

Higher volume of net sales and changes in product mix, which benefited operating income by approximately $2,500; offset by

Current wording

Higher sales and changes in product mix, which benefited operating income by approximately $1,700 and $4,100; offset by