ATI INC

Previous wording

ATI is a global manufacturer of technically advanced specialty materials and complex components. Our largest market is aerospace & defense, representing 68% of sales for the year-to-date period ended September 28, 2025, led by products for jet engines and airframes. Additionally, we have a strong presence in the specialty energy, medical and electronics markets. In aggregate, these markets represented 80% of our sales for theyear-to-date period ended September 28, 2025. ATI is a market leader in manufacturing differentiated products that require our materials science capabilities and unique process technologies, including our new product development competence. Our capabilities range from cast/wrought and powder alloy development to final production of highly engineered finished components, including those used in latest generation jet engines and 3D-printed aerospace products.

Current wording

specialty materials. HPMC’s capabilities range from cast/wrought and powder alloy development to production of highly

Previous wording

Third quarter 2025 sales increased 7% to $1.13 billion, compared to $1.05 billion of sales for the third quarter 2024, primarily due to increased demand in the aerospace & defense market, partially offset by a decline in sales to our other core and industrial markets. In aggregate, ATI’s aerospace & defense market sales increased 21% to $792.7 million, or 70% of total sales in the third quarter 2025, compared to $653.8 million, or 62% of total sales in the third quarter 2024. The increase in aerospace & defense market sales was partially offset by sales declines in other core and industrial markets of 23% and 11%, respectively.

Current wording

First quarter 2026 sales increased approximately 1% to $1.15 billion, compared to $1.14 billion of sales for the first quarter 2025, primarily due to increased demand and favorable pricing in the aerospace & defense markets, partially offset by a net decline in sales to our other markets, mostly in the conventional energy market. In aggregate, ATI’s aerospace & defense sales increased 6% to $797.6 million, or 69% of total sales in the first quarter 2026, compared to $754.4 million, or 66% of total sales in the first quarter 2025. The increase in aerospace & defense sales was driven by commercial jet engine and defense products, partially offset by a decline in sales of commercial airframe products.

Previous wording

Comparative information regarding our overall revenues (in millions) by end market and their respective percentages of total revenues for the quarters and year-to-date periods ended September 28, 2025 and September 29, 2024 is shown below.

Current wording

Comparative information regarding our overall sales (in millions) by end market and their respective percentages of total sales for the quarterly periods ended March 29, 2026 and March 30, 2025 is shown below.

Previous wording

For the third quarter 2025, international sales increased to $445 million, or 40% of total sales, from $426 million, or 40% of total sales, in the third quarter 2024. ATI’s international sales are mostly to our core end markets.

Current wording

For the first quarter 2026, international sales increased to $459 million, or 40% of total sales, from $501 million, or 44% of total sales, in the first quarter 2025.

Previous wording

Comparative information regarding our major products based on their percentages of revenues are shown below. HRPF conversion service sales in the AA&S segment are excluded from this presentation.

Current wording

Comparative information regarding our major products based on their percentages of sales are shown below. Hot-Rolling and Processing Facility (HRPF) conversion service sales in the AA&S segment are excluded from this presentation.

Previous wording

Gross profit for the third quarter of 2025 was $255.3 million, or 22.7% of sales, compared to $224.8 million, or 21.4% of sales, for the third quarter 2024. Third quarter 2025 gross profit includes $7.0 million of start-up and transaction-related costs, which are excluded from Adjusted EBITDA. Third quarter 2024 gross profit includes a benefit of $4.8 million related to the recognition of previously deferred employee retention tax credits, of which $2.9 million related to the HPMC segment and $1.9 million related to the AA&S segment. Third quarter 2024 gross profit also includes $2.5 million of start-up costs, partially offset by a $0.4 million credit for adjustments to inventory reserves related to our European restructuring, which are excluded from Adjusted EBITDA.

Current wording

Gross profit for the first quarter of 2026 was $262.9 million, or 22.8% of sales, compared to $235.8 million, or 20.6% of sales, for the first quarter 2025. First quarter 2026 gross profit includes $7.9 million of start-up and transaction-related costs and $1.1 million of restructuring-related costs, which are excluded from Adjusted EBITDA. First quarter 2025 gross profit includes $4.0 million of start-up and transaction-related costs, which are excluded from Adjusted EBITDA.

Previous wording

Selling and administrative expenses for the third quarter 2025 were $94.6 million, an increase of 15% compared to $82.4 million for the third quarter 2024. The increase was primarily due to higher incentive compensation costs, foreign exchange losses compared to gains in the prior year period, and higher research and development expenses. Third quarter 2025 includes $3.8 million of transformation and transaction-related costs and $2.5 million of losses on the sale of customer accounts receivable, which are excluded from Adjusted EBITDA. Third quarter 2024 includes $1.7 million of transaction costs, which are excluded from Adjusted EBITDA.

Current wording

Selling and administrative expenses for the first quarter 2026 were $92.1 million, an increase of 8.4% compared to $85.0 million for the first quarter 2025. The increase was primarily due to $8.0 million of transformation and transaction-related costs and $2.4 million of losses on the sale of customer accounts receivable, which are excluded from Adjusted EBITDA. First quarter 2025 included $1.6 million of losses on the sale of customer accounts receivable, which are excluded from Adjusted EBITDA.

Previous wording

(Gain) Loss on Asset Sales and Sales of Businesses, net

Current wording

Loss on Asset Sales and Sales of Businesses, net

Previous wording

Gain on asset sales and sales of businesses, net of $1.3 million for the third quarter of 2025 primarily includes a $1.1 million gain on the sale of our East Hartford, CT operations, an immaterial, non-core operation that was part of the Forged Products business unit in the HPMC segment. The year-to-date period ended September 28, 2025 loss on asset sales and sales of businesses, net of $2.6 million also includes a $3.7 million loss for the sale of certain immaterial, non-core operations in Birmingham, UK and Dusseldorf, Germany, which were part of our European business in the HPMC Segment.

Current wording

The loss on asset sales and sales of businesses, net of $3.9 million in first quarter 2025 was mostly attributable to the prior year sale of certain immaterial, non-core operations that were part of our European business in the HPMC segment.

Previous wording

Our effective tax rate for the third quarter of 2025 was 21.4%, resulting in an income tax provision of $31.0 million, and our effective tax rate for the third quarter of 2024 was 24.6%, resulting in an income tax provision of $28.3 million. The effective tax rate for the third quarter of 2025 includes discrete tax expense of $2.8 million, primarily related to return-to-provision adjustments for limitations of permanent benefits due to decreased taxable income. The effective tax rate for the third quarter of 2024 includes discrete tax expense of $0.2 million. Excluding the discrete tax items, the Company’s effective tax rates for the third quarter of 2025 and 2024 were 19.5% and 24.5%, respectively. The decline in the effective tax rate was primarily due to deductions previously limited by net operating losses.

Current wording

Our effective tax rate for the first quarter of 2026 was 11.8%, resulting in an income tax provision of $16.1 million, and our effective tax rate for the first quarter of 2025 was 17.3%, resulting in an income tax provision of $21.0 million. The lower effective tax rate on a year-over-year basis was primarily due to the timing and amount of discrete tax benefits. The effective tax rate for the first quarter of 2026 includes discrete tax benefits of $11.9 million, while the effective tax rate for the first quarter of 2025 includes discrete tax benefits of $5.1 million. The discrete tax benefits in both periods were primarily for share-based compensation.

Previous wording

Net income attributable to ATI was $110.0 million, or $0.78 per share, in the third quarter of 2025, compared to $82.7 million, or $0.57 per share, for the third quarter of 2024.

Current wording

Net income attributable to ATI was $118.2 million, or $0.85 per share, in the first quarter of 2026, compared to $97.0 million, or $0.67 per share, for the first quarter of 2025.

Previous wording

Comparative financial information (in millions) for our segments and corporate operations for the quarters and year-to-date periods ended September 28, 2025 and September 29, 2024 is shown below.

Current wording

Comparative financial information (in millions) for our segments and corporate operations for the quarterly periods ended March 29, 2026 and March 30, 2025 is shown below.

Previous wording

International sales represented 44% of total segment sales for the third quarter 2025, compared to 48% in the prior year period. Comparative information for the HPMC segment’s major product categories, based on their percentages of revenue for the quarters ended September 28, 2025 and September 29, 2024, is as follows:

Current wording

International sales represented 45% of total segment sales for the first quarter 2026, compared to 46% in the prior year period. Comparative information for the HPMC segment’s major product categories, based on their percentages of revenue for the quarters ended March 29, 2026 and March 30, 2025, is as follows:

Previous wording

The Company’s investments to increase capacity and focus on continuous improvement are driving improvements to our work-flow processes and operations. HPMC results for 2025 reflected year-over-year improved operating leverage and pricing as we continued to experience increasing demand from the aerospace & defense market, especially for commercial jet engines. Although macro risks and uncertainty continue, we believe our capabilities, strong backlog and long-term agreements with aerospace market OEMs for our specialty materials, including powders, parts and components, position the HPMC segment for profitable growth for the next several years. ATI has prepared for the potential risks of tariffs for many years, and we have taken actions to minimize the impact of tariffs in our contracts and supply chains. While we expect continued, near-term challenges, we believe the backlog of commercial aircraft production, increasing requirements for maintenance, repair, and operations, and the current OEM production forecasts support our long-term growth expectations in this end market.

Current wording

The Company continues to invest in capacity and to improve work-flow processes and operations. HPMC results for first quarter 2026 reflected year-over-year improved operating leverage and pricing as we continued to experience strong demand in our key aerospace & defense markets, particularly for commercial jet engine products. We believe our long-term agreements with aerospace market OEMs and backlog for our specialty materials, including powders, parts and components, position the HPMC segment for continued growth.

Previous wording

International sales represented 35% of total segment sales for the third quarter of 2025, compared to 32% in the prior year’s third quarter. Comparative information regarding the AA&S segment’s major product categories, based on their percentages of revenue for the quarters ended September 28, 2025 and September 29, 2024, is presented in the following table. HRPF conversion service sales are excluded from this presentation.

Current wording

International sales represented 34% of total segment sales for the first quarter of 2026, compared to 42% in the prior year’s first quarter. Comparative information regarding the AA&S segment’s major product categories, based on their percentages of revenue for the quarters ended March 29, 2026 and March 30, 2025, is presented in the following table. HRPF conversion service sales are excluded from this presentation.

Previous wording

Segment EBITDA was $90.4 million, or 17.3% of sales, for the third quarter 2025, compared to segment EBITDA of $73.6 million, or 14.8% of sales, for the third quarter 2024. The margin increase compared to the prior year was primarily due to favorable sales mix and pricing of exotic alloys. Third quarter 2024 included a $1.9 million benefit from the recognition of previously deferred employee retention tax credits.

Current wording

Segment EBITDA was $97.0 million, or 18.1% of sales, for the first quarter 2026, compared to segment EBITDA of $83.4 million, or 14.9% of sales, for the first quarter 2025. The margin rate increase compared to the prior year was primarily due to favorable sales mix changes and favorable pricing of exotic alloys.

Previous wording

As part of managing the performance of our business, we focus on Managed working capital, a non-GAAP financial measure that we define as gross accounts receivable, short-term contract assets and gross inventories, excluding the effects of reserves for uncollectible accounts receivable and inventory valuation reserves, less accounts payable and short-term contract liabilities. We assess Managed working capital performance as a percentage of the prior three months annualized sales. Managed working capital is not intended to replace working capital or other GAAP financial measures or to be used as a measure of liquidity.

Current wording

As part of managing the performance of our business, we focus on Managed working capital, a non-GAAP financial measure that we define as gross accounts receivable, short-term contract assets and gross inventories, excluding the effects of reserves for uncollectible accounts receivable and inventory valuation reserves, less accounts payable and short-term contract liabilities. Managed working capital is not intended to replace working capital or other GAAP financial measures or to be used as a measure of liquidity. Management believes this non-GAAP financial measure focuses on the assets and liabilities most closely attributable to our core operations, allowing Management to quantify and evaluate the asset intensity of our business. Further, Management believes this non-GAAP financial measure provides investors with additional insights into the Company’s effectiveness in balancing the need to maintain appropriate asset levels to support sales growth and operations while deploying our cash effectively.

Previous wording

We employ several strategies to actively manage our Managed working capital, seeking to effectively balance the need to maintain appropriate levels of Managed working capital to support our growth and operations while deploying our cash efficiently. Our strategies include, but are not limited to, taking advantage of favorable customer and supplier payment terms, participating in supplier financing programs, accounts receivable factoring arrangements and other customer financing programs, managing the timing of purchases of raw materials, and leveling manufacturing process throughput and shipping to limit periodic increases in Managed working capital.

Current wording

We employ several strategies to actively manage our Managed working capital, seeking to effectively balance the need to maintain appropriate levels of Managed working capital to support our growth and operations while deploying our cash efficiently. Our strategies include, but are not limited to, taking advantage of favorable customer and supplier payment terms, participating in supplier financing programs, accounts receivable factoring arrangements and other customer financing programs, managing the timing of purchases of raw materials, and leveling manufacturing process throughput and shipping to limit periodic increases in Managed working capital. We assess Managed working capital performance as a percentage of the prior three months annualized sales.

Previous wording

At September 28, 2025, Managed working capital increased as a percentage of annualized sales to 36.4% compared to 30.9% at December 29, 2024. The increase in Managed working capital as a percentage of annualized sales was primarily due to seasonal inventory builds to support increased operating levels and the timing of shipments, which impacts days sales outstanding, and vendor payments in the quarter. Days sales outstanding, which measures actual collection timing for accounts receivable, worsened by 5% as of September 28, 2025 compared to year end 2024. Gross inventory turns, which measures how many times we turn over our inventory relative to cost of sales in a year, worsened by 8% as of September 28, 2025 compared to year end 2024.

Current wording

At March 29, 2026, Managed working capital increased as a percentage of annualized sales to 34.8% compared to 32.5% at December 28, 2025. The increase in Managed working capital as a percentage of annualized sales was primarily due to seasonal inventory builds to support increased operating levels and the timing of shipments. As a result, gross inventory turns, which measures how many times we turn over our inventory relative to cost of sales in a year, worsened by 13% at March 29, 2026 compared to December 28, 2025. Days sales outstanding, which measures actual collection timing for accounts receivable, was relatively flat at March 29, 2026 compared to December 28, 2025.

Previous wording

The computations of Managed working capital at September 28, 2025 and December 29, 2024, reconciled to the financial statement line items as computed under U.S. GAAP, were as follows. The December 29, 2024 amounts include management working capital balances that are classified as held for sale.

Current wording

The computations of Managed working capital at March 29, 2026 and December 28, 2025, reconciled to the financial statement line items as computed under U.S. GAAP, were as follows.

Previous wording

On June 13, 2025, we amended our Asset Based Lending (ABL) Credit Facility, which is collateralized by the accounts receivable and inventory of our operations. This amendment extended the ABL facility through June 2030. The amended ABL includes a $600 million revolving credit facility, a letter of credit sub-facility of up to $200 million, a $200 million term loan (Term Loan), and a swing loan facility of up to $60 million. Additionally, the amendment gives the Company the ability, through June 13, 2026 and as long as no default or event of default has occurred and is continuing, to borrow an additional term loan of up to $100 million in total, using one or two draws (the Delayed-Draw Term Loan). The ABL facility also provides us with the option of including certain machinery and equipment as additional collateral for purposes of determining availability under the facility.

Current wording

The Company's amended Asset Based Lending (ABL) Credit Facility is collateralized by the accounts receivable and inventory of our operations and includes a $600 million revolving credit facility, a letter of credit sub-facility of up to $200 million, a $200 million term loan (Term Loan), and a swing loan facility of up to $60 million. Additionally, the Company has the ability, through June 13, 2026 and as long as no default or event of default has occurred and is continuing, to borrow an additional term loan of up to $100 million in total, using one or two draws (the Delayed-Draw Term Loan). The ABL facility also provides us with the option of including certain machinery and equipment as additional collateral for purposes of determining availability under the facility. The ABL term runs through June of 2030.

Previous wording

As of September 28, 2025, there were no outstanding borrowings under the revolving portion of the ABL facility, and $29.4 million was utilized to support the issuance of letters of credit. At September 28, 2025, we had $372.2 million of cash and cash equivalents, available additional liquidity under the ABL facility of approximately $570 million, and up to $100 million of availability under the Delayed-Draw Term Loan. Our next significant debt maturity is in the fourth quarter of this year and relates to the 6.95% Debentures due 2025 issued by our wholly owned subsidiary, Allegheny Ludlum LLC.

Current wording

As of March 29, 2026, there was $75 million in outstanding borrowings under the revolving portion of the ABL facility, and $29.3 million was utilized to support the issuance of letters of credit. At March 29, 2026, we had $401.7 million of cash and cash equivalents, available additional liquidity under the ABL facility of approximately $495 million, and up to $100 million of availability under the Delayed-Draw Term Loan. Our next significant debt maturity is $350 million of 5.875% Senior Notes in the fourth quarter of fiscal year 2027.

Previous wording

Periodically, our Board of Directors authorizes the repurchase of ATI common stock (the “Share Repurchase Program”), the most recent of which was $700 million that was announced in September 2024. Repurchases under these programs are made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. Open market repurchases are structured to occur within the pricing and volume requirements of SEC Rule 10b-18. In the quarter and year-to-date period ended September 28, 2025, ATI used $150 million and $470 million, respectively, to repurchase 2.0 million and 6.4 million, respectively, of its common stock under the Share Repurchase Program. At September 28, 2025, the Company has utilized $580 million of the $700 million currently authorized under the Share Repurchase Program.

Current wording

Periodically, our Board of Directors authorizes the repurchase of ATI common stock (the “Share Repurchase Program”), the most recent of which was $500 million that was announced in February 2026. Repurchases under these programs are made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. Open market repurchases are structured to occur within the pricing and volume requirements of SEC Rule 10b-18. In the quarter ended March 29, 2026, ATI used $75 million to repurchase 0.5 million of its common stock under the Share Repurchase Program. At March 29, 2026, the Company has utilized $655 million of the $1.20 billion currently authorized under its currently active Share Repurchase Programs.

Previous wording

In managing our overall capital structure, we focus on the ratio of net debt to Adjusted EBITDA, which we use as a measure of our ability to repay our incurred debt. We define net debt as the total principal balance of our outstanding indebtedness excluding deferred financing costs, net of cash, at the balance sheet date. See above for our definition of Adjusted EBITDA, which is a non-GAAP measure and is not intended to represent, and should not be considered more meaningful than, or as an alternative to, a measure of operating performance as determined in accordance with U.S. GAAP. Our ratio of net debt to

Current wording

In managing our overall capital structure, we focus on the ratio of both total and net debt to Adjusted EBITDA (Adjusted EBITDA Leverage ratios), which we use as a measure of our ability to repay our incurred debt. We define total debt as the total principal balance of our outstanding indebtedness including deferred financing costs. Net debt is defined as the total principal balance of our outstanding indebtedness excluding deferred financing costs, net of cash, at the balance sheet date. See below for our definition of Adjusted EBITDA, which is a non-GAAP measure and is not intended to represent, and should not be considered more meaningful than, or as an alternative to, a measure of operating performance as determined in accordance with U.S. GAAP. We calculate the Adjusted EBITDA Leverage ratios based on total or net debt at the balance sheet date and Adjusted EBITDA for the trailing twelve-month period from the balance sheet date.

Previous wording

Our Total Debt to Adjusted EBITDA Leverage ratio improved in the third quarter of 2025 compared to year end 2024, while our Net Debt to Adjusted EBITDA Leverage ratio worsened in the third quarter of 2025 compared to year end 2024, largely due to a lower cash balance. The reconciliations of our Adjusted EBITDA Leverage Ratios to the balance sheet and income statement amounts as reported under U.S. GAAP are as follows:

Current wording

Our Total Debt to Adjusted EBITDA Leverage and Net Debt to Adjusted EBITDA Leverage ratios remained consistent at March 29, 2026 as compared to December 28, 2025. The reconciliations of our Adjusted EBITDA Leverage ratios to the balance sheet and income statement amounts as reported under U.S. GAAP are as follows:

Previous wording

Cash provided by operations was $298.5 million in the year-to-date period ended September 28, 2025, a significant improvement compared to $26.3 million in the year-to-date period ended September 29, 2024. The 2025 period improvement was due to higher net income and improved working capital changes compared to the 2024 period, including cash flows from accounts receivable and inventory balances. Accounts receivable were positively impacted by the sale of $80 million of accounts receivable in exchange for cash under the new Receivables Facility. Working capital balances, and consequently cash from operations, can fluctuate throughout any operating period based upon the timing of receipts from customers and payments to vendors. Other significant 2025 and 2024 operating cash flow items included payment of the annual cash incentive compensation.

Current wording

Cash provided by operations was $128.2 million in the quarter ended March 29, 2026, a significant improvement compared to cash used in operating activities of $92.5 million in the quarter ended March 30, 2025. The 2026 period improvement was due to higher net income and improved working capital changes compared to the 2025 period. Cash provided by operations was also positively impacted by the sale of $40 million of accounts receivable in exchange for cash under the Receivables Facility. Working capital balances, and consequently cash from operations, can fluctuate throughout any operating period based upon the timing of receipts from customers and payments to vendors. Other significant first quarter 2026 and 2025 operating cash flow items included payment of the annual cash incentive compensation.

Previous wording

Cash used in investing activities was $149.0 million in the year-to-date period ended September 28, 2025, which included $187.9 million for capital expenditures primarily to support various growth projects in our aerospace & defense and other core markets. Cash used in investing activities was $178.2 million in the year-to-date period ended September 29, 2024, reflecting $191.8 million in capital expenditures. Proceeds from disposals of property, plant and equipment in the year-to-date period ended September 28, 2025 of $10.9 million mostly relates to $10.5 million of proceeds on the sale of certain oil and gas rights. Proceeds from disposals of property, plant and equipment in the year-to-date period ended September 29, 2024 of $10.6 million related to $3.7 million of proceeds on the sale of certain oil and gas rights and $3.5 million of proceeds received for the sale of assets for our idled Houston, PA facility. We expect to fund our capital expenditures with cash on hand and cash flow generated from our operations and, if needed, borrowings under the ABL facility.

Current wording

Cash used in investing activities was $53.6 million in the quarter ended March 29, 2026, which included $55.2 million for capital expenditures primarily for various growth projects to support the aerospace & defense markets. Cash used in investing activities was $50.6 million in the quarter ended March 30, 2025, reflecting $53.3 million in capital expenditures. We expect to fund our capital expenditures with cash on hand and cash flow generated from our operations and, if needed, borrowings under the ABL facility.

Previous wording

Cash used in financing activities was $512.6 million in the year-to-date period ended September 28, 2025, which included $470.0 million to repurchase 6.4 million shares of ATI stock under our Share Repurchase Program. For the year-to-date period ended September 29, 2024, cash used in financing activities was $166.2 million, which included $190.0 million to repurchase 4.1 million shares of ATI stock under our Share Repurchase Program.

Current wording

Cash used in financing activities was $88.8 million in the quarter ended March 29, 2026, which included $81.1 million to repurchase shares associated with income tax withholdings on share-based compensation and $75.0 million to repurchase 0.5 million shares of ATI stock under our Share Repurchase Program. These outflows were offset by net borrowings under the Company's ABL of $75 million. For the quarter ended March 30, 2025, cash used in financing activities was $107.5 million, which included $70.0 million to repurchase 1.2 million shares of ATI stock under our Share Repurchase Program.

Previous wording

At September 28, 2025, cash and cash equivalents on hand totaled $372.2 million, a decrease of $349.0 million from year end 2024. Cash and cash equivalents held by our foreign subsidiaries was $179.1 million at September 28, 2025, of which $99.1 million was held by the STAL joint venture.

Current wording

At March 29, 2026, cash and cash equivalents on hand totaled $401.7 million, a decrease of $15.0 million from year end 2025. Cash and cash equivalents held by our foreign subsidiaries was $156.8 million at March 29, 2026, of which $75.1 million was held by the STAL joint venture.

Previous wording

(a)Third quarter 2025: Restructuring and other charges of $12.9 million include $7.2 millionof start-up and transaction-related costs, which are primarily reported within cost of sales on the consolidated statements of operations, and$3.6 million of transformation-related costs and$2.5 million for losses on sale of accounts receivable, which are reported in selling and administrative expenses on the consolidated statements of operations. These charges were partially offset by credits of $0.4 million due to a reduction in severance-related reserves for our European restructuring.

Current wording

(a)First quarter 2026: Restructuring and other charges of $26.4 million include $11.1 millionof start-up and transaction-related costs and$1.1 million of restructuring-related costs, which are primarily reported within cost of sales on the consolidated statements of operations,$7.0 million of restructuring-related severance and impairment costs, $4.8 million of transformation-related costs, and$2.4 million for losses on the sale of accounts receivable, which are reported in selling and administrative expenses on the consolidated statements of operations.

Previous wording

Third quarter 2024: Restructuring and other charges of $4.3 million include $2.5 million of start-up costs, partially offset by a $0.4 million credit for adjustments to inventory reserves related to our European restructuring, both of which are reported within cost of sales on the consolidated statements of operations. These charges also included $1.7 million of transaction costs, which are reported in selling and administrative expense on the consolidated statements of operation, and restructuring charges of $0.5 million.

Current wording

First quarter 2025: Restructuring and other charges of $5.6 million include $4.0 million of start-up and transaction-related costs, which are primarily reported within cost of sales on the consolidated statements of operations, and $1.6 million of losses on the sale of accounts receivable, which are reported in selling and administrative expense on the consolidated statements of operation.

Previous wording

(b)(Gain) loss on sales of businesses, net, for the third quarter of 2025 includes a $1.1 million gain on the sale of a non-core operation from the Forged Products business unit, which is part of the HPMC segment. (Gain) loss on sales of businesses, net, of $2.6 million for the year-to-date period ended September 28, 2025 also includes a $3.7 million loss on the sale of certain non-core European operations from the HPMC segment.

Current wording

(b)(Gain) loss on sales of businesses, net, of $3.7 million for the quarter ended March 30, 2025 represents a loss on the sale of certain non-core European operations from the HPMC segment.