DUCOMMUN INC /DE/

Previous wording

As disclosed in our Amendment No. 1 to Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K/A”), we restated our audited consolidated financial statements for the year ended December 31, 2025, and our unaudited quarterly financial information for each quarter in the year ended December 31, 2025 (the “Affected Periods”), among other periods, and corrected certain other immaterial items that were previously identified and concluded as immaterial, individually and in the aggregate, to its consolidated financial statements during the Affected Periods as further described below.

Current wording

As disclosed in our Amendment No. 1 to Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K/A”), we restated our audited consolidated financial statements for the year ended December 31, 2025, and our unaudited quarterly financial information for each quarter in the year ended December 31, 2025 (collectively, the “Affected Periods”), among other periods, and corrected certain other immaterial items that were previously identified and concluded as immaterial, individually and in the aggregate, to its consolidated financial statements during the Affected Periods as further described below.

Previous wording

Boeing was one of our largest customers in 2025, and the 737 MAX was one of our highest commercial end use market revenue platforms. In early January 2024, the Federal Aviation Administration (“FAA”) initiated an investigation into Boeing’s quality control system, which was followed by the agency announcing actions to increase its oversight of Boeing as well as not approving production rate increases or additional production lines for the 737 MAX until it was satisfied that Boeing attained full compliance with required quality control procedures. Subsequently, in July 2024, Boeing pleaded guilty to conspiracy fraud charges, which may result in additional external oversight on its manufacturing and quality control processes. More recently, Boeing announced that the FAA cleared Boeing’s plan to raise 737 MAX production from 38 airplanes to 42 airplanes per month.

Current wording

Boeing was one of our largest customers in 2025, and the 737 MAX was one of our highest commercial end use market revenue platforms. In early January 2024, the Federal Aviation Administration (“FAA”) initiated an investigation into Boeing’s quality control system, which was followed by the agency announcing actions to increase its oversight of Boeing as well as not approving production rate increases or additional production lines for the 737 MAX until it was satisfied that Boeing attained full compliance with required quality control procedures. Subsequently, in July 2024, Boeing pleaded guilty to conspiracy fraud charges, which may result in additional external oversight on its manufacturing and quality control processes. More recently, Boeing announced that the FAA cleared Boeing’s plan to raise 737 MAX production from 42 airplanes to 47 airplanes per month. In addition, the FAA recently announced that Boeing can resume issuing airworthiness certificates for its 737 MAX aircraft.

Previous wording

Since February 2025, the U.S. government has issued several executive orders (“Executive Orders”), under various statutes, imposing tariffs on imports from most countries with whom the U.S. engages in trade. As such, during 2025, the United States reached bilateral trade agreements that recognize tariff-free trade of products within the scope of the World Trade Organization Agreement on Trade in Civil Aircraft with the United Kingdom, Japan, and the European Union. Moreover, the United States applies a diverse range of reciprocal tariffs to imports originating from countries that have not concluded bilateral trade agreements with the United States. On February 20, 2026, the U.S. Supreme Court struck down the sweeping tariffs that the U.S. government had imposed through the Executive Orders issued pursuant to International Emergency Economic Powers Act (“IEEPA”) of 1977. However, the U.S. government subsequently imposed a global tariff of 10% (which could potentially increase to 15%) that went into effect on February 24, 2026, and which would be effective for 150 days unless they are extended by the U.S Congress.

Current wording

Since February 2025, the U.S. government has issued several executive orders (“Executive Orders”), under various statutes, imposing tariffs on imports from most countries with whom the U.S. engages in trade. As such, during 2025, the United States reached bilateral trade agreements that recognize tariff-free trade of products within the scope of the World Trade Organization Agreement on Trade in Civil Aircraft with the United Kingdom, Japan, and the European Union. Moreover, the United States applies a diverse range of reciprocal tariffs to imports originating from countries that have not concluded bilateral trade agreements with the United States. In February 2026, the U.S. Supreme Court struck down the sweeping tariffs that the U.S. government had imposed through the Executive Orders issued pursuant to International Emergency Economic Powers Act (“IEEPA”) of 1977. However, the U.S. government subsequently imposed a global tariff of 10% (which could potentially increase to 15%) that went into effect on February 24, 2026, and which would be effective for 150 days unless they are extended by the U.S. Congress. Additionally, in late July 2026, an Executive Order implementing tariffs under Section 304(a) of the Trade Act of 1974, as amended, was issued imposing tariffs of 10% to 12.5% on non-exempt goods depending on the country of origin, and from which civil aircraft parts and components and goods qualifying under the United States-Mexico-Canada Agreement are exempt.

Previous wording

In November 2025, the U.S. Government enacted a continuing resolution (“CR”) to keep the government funded through January 30, 2026 while Congress works to enact full year fiscal year 2026 (“FY26”) remaining appropriation bills or an additional CR to fund government departments and agencies after January 30, 2026. In addition, on January 7, 2026, President Trump called for increasing the FY27 U.S. military budget to $1.5 trillion, significantly higher than the $901 billion approved by Congress for FY26. However, such increase in the military budget would require congressional authorization.

Current wording

In November 2025, the U.S. Government enacted a continuing resolution (“CR”) to keep the government funded through January 2026 while Congress works to enact full year fiscal year 2026 (“FY26”) remaining appropriation bills or an additional CR to fund government departments and agencies after January 2026. In addition, in January 2026, President Trump called for increasing the FY27 U.S. military budget to $1.5 trillion, significantly higher than the $901 billion approved by Congress for FY26. However, such increase in the military budget would require congressional authorization.

Previous wording

On February 3, 2026, President Trump signed into law a funding package to end the brief U.S. Government shutdown. The legislation will ensure full year funding for the federal government through the end of September 2026, with the lone exception of funding for the Department of Homeland Security.

Current wording

In February 2026, President Trump signed into law a funding package to end the brief U.S. Government shutdown. The legislation will ensure full year funding for the federal government through the end of September 2026, with the lone exception of funding for the Department of Homeland Security. On June 10, 2026, President Trump signed into law a funding package that included funding for the Department of Homeland Security.

Previous wording

Subsequent to December 31, 2025, on January 7, 2026, we entered into a binding confidential agreement (“Confidential Agreement”) to resolve an additional subrogation claim (“Additional Subrogation Claim”) against us related to the Guaymas fire. The Confidential Agreement provides for, among other things, the final dismissal of the Additional Subrogation Claim and a release of all claims against us, with prejudice, in exchange for us issuing a payment of $4.0 million. We do not believe there are any remaining subrogation or other claims relating to the Guaymas fire at this time other than by an insurer of the plaintiff in the Guaymas Fire Litigation based in Mexico for payments issued to its insured for damages allegedly incurred in the Guaymas fire, which we believe to be time barred. See Note 11 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for further information.

Current wording

Subsequent to December 31, 2025, in January 2026, we entered into a binding confidential agreement (“Confidential Agreement”) to resolve an additional subrogation claim (“Additional Subrogation Claim”) against us related to the Guaymas fire. The Confidential Agreement provides for, among other things, the final dismissal of the Additional Subrogation Claim and a release of all claims against us, with prejudice, in exchange for us issuing a payment of $4.0 million. We do not believe there are any remaining subrogation or other claims relating to the Guaymas fire at this time other than by an insurer of the plaintiff in the Guaymas Fire Litigation based in Mexico for payments issued to its insured for damages allegedly incurred in the Guaymas fire, which we believe to be time barred. See Note 11 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for further information.

Previous wording

•Net income of $9.9 million, or 4.7% of net revenues, or $0.64 per diluted share

Current wording

•Net income of $20.4 million, or 9.1% of net revenues, or $1.31 per diluted share

Previous wording

First Quarter of 2026 Compared to First Quarter of 2025 (As Restated)

Current wording

Second Quarter of 2026 Compared to Second Quarter of 2025 (As Restated)

Previous wording

Net revenues by end-use market and operating segment during the fiscal three months ended April 4, 2026 and March 29, 2025, respectively, were as follows:

Current wording

Net revenues by end-use market and operating segment during the fiscal three and six months ended July 4, 2026 and June 28, 2025, respectively, were as follows:

Previous wording

Net revenues for the three months ended April 4, 2026 were $209.0 million, compared to $192.5 million for the three months ended March 29, 2025. The year-over-year increase in our key end-use markets were primarily due to the following:

Current wording

Net revenues for the three months ended July 4, 2026 were $224.5 million, compared to $200.8 million for the three months ended June 28, 2025. The year-over-year increase in our key end-use markets were primarily due to the following:

Previous wording

(1)Includes The Boeing Company (“Boeing”), Lockheed Martin Corporation (“Lockheed”), Northrop Grumman Corporation (“Northrop”), and RTX Corporation (“RTX”) for the three months ended April 4, 2026 and March 29, 2025.

Current wording

(1)Includes The Boeing Company (“Boeing”), Lockheed Martin Corporation (“Lockheed”), Northrop Grumman Corporation (“Northrop”), RTX Corporation (“RTX”), and Viasat, Inc. (“Viasat”) for the three and six months ended July 4, 2026 and June 28, 2025.

Previous wording

Boeing, Lockheed, Northrop, and RTX, represented the following percentages of total accounts receivable:

Current wording

Boeing, Lockheed, Northrop, RTX, and Viasat represented the following percentages of total accounts receivable:

Previous wording

The net revenues and accounts receivable from Boeing, Lockheed, Northrop, and RTX were diversified over a number of commercial, military and space programs and were generated by both operating segments.

Current wording

The net revenues and accounts receivable from Boeing, Lockheed, Northrop, RTX, and Viasat were diversified over a number of commercial, military and space programs and were generated by both operating segments.

Previous wording

Gross profit consists of net revenues less cost of sales. Cost of sales includes the cost of production of finished products and other expenses related to inventory management, manufacturing quality, and order fulfillment. Gross profit as a percentage of net revenues increased year-over-year with the three months ended April 4, 2026 of 26.9%, compared to the three months ended March 29, 2025 of 26.2% primarily due to lower other manufacturing costs, favorable product mix, and higher manufacturing volume.

Current wording

Gross profit consists of net revenues less cost of sales. Cost of sales includes the cost of production of finished products and other expenses related to inventory management, manufacturing quality, and order fulfillment. Gross profit as a percentage of net revenues increased year-over-year with the three months ended July 4, 2026 of 28.0%, compared to the three months ended June 28, 2025 of 26.4% primarily due to higher manufacturing volume and savings from the facility consolidation program, partially offset by unfavorable product mix.

Previous wording

Restructuring charges decreased $0.4 million year-over-year in the three months ended April 4, 2026, compared to the three months ended March 29, 2025, primarily due to the completion as of December 31, 2025, the previously disclosed restructuring plan that was approved and commenced in April 2022. See Note 3 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for further information.

Current wording

Restructuring charges decreased $0.6 million and $1.0 million year-over-year in the three and six months ended July 4, 2026, respectively, compared to the three and six months ended June 28, 2025, primarily due to the completion as of the prior year ended December 31, 2025, the previously disclosed restructuring plan that was approved and commenced in April 2022. See Note 3 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for further information.

Previous wording

Interest expense increased $0.7 million year-over-year in the three months ended April 4, 2026, compared to the three months ended March 29, 2025, respectively, primarily due to a higher outstanding debt balance partially offset by lower interest rates.

Current wording

Interest expense, net increased $0.5 million and $1.3 million year-over-year in the three and six months ended July 4, 2026, compared to the three and six months ended June 28, 2025, respectively, primarily due to a higher outstanding debt balance, partially offset by lower interest rates.

Previous wording

We recorded income tax expense of $1.8 million for the three months ended April 4, 2026 compared to income tax expense of $0.3 million for the three months ended March 29, 2025. The increase in income tax expense for the first quarter of 2026 compared to the first quarter of 2025 was primarily due to higher pre-tax income in the first quarter of 2026 compared to the first quarter of 2025. The increase in income tax expense was partially offset by higher income tax benefits recognized for net tax windfalls related to stock-based compensation in the first quarter of 2026 compared to the first quarter of 2025.

Current wording

We recorded income tax expense of $4.4 million for the three months ended July 4, 2026 compared to income tax expense of $3.7 million for the three months ended June 28, 2025. The increase in income tax expense for the second quarter of 2026 compared to the second quarter of 2025 was primarily due to higher pre-tax income in the second quarter of 2026 compared to the second quarter of 2025. The increase in income tax expense was partially offset by higher income tax benefits recognized for net tax windfalls related to stock-based compensation in the second quarter of 2026 compared to the second quarter of 2025.

Previous wording

Our total amount of unrecognized tax benefits was $5.3 million and $5.0 million as of April 4, 2026 and December 31, 2025, respectively. If recognized, $3.2 million would affect the effective tax rate. We record interest and penalty charges, if any, related to uncertain tax positions as a component of tax expense and unrecognized tax benefits. The amounts accrued for interest and penalty charges as of April 4, 2026 and December 31, 2025 were not significant.

Current wording

Our total amount of unrecognized tax benefits was $5.5 million and $5.0 million as of July 4, 2026 and December 31, 2025, respectively. If recognized, $3.4 million would affect the effective tax rate. We record interest and penalty charges, if any, related to uncertain tax positions as a component of tax expense and unrecognized tax benefits. The amounts accrued for interest and penalty charges as of July 4, 2026 and December 31, 2025 were not significant.

Previous wording

In July 2025, the U.S. enacted the OBBBA. Amongst other things, the OBBBA provides for several corporate tax provision changes including restoring the full expensing of qualified property placed in service after January 19, 2025, reinstating the immediate expensing of U.S. research and development expenditures paid or incurred for tax years beginning after December 31, 2024, and changes in the computations of U.S. taxation on international earnings for tax years beginning after December 31, 2025. We completed the initial assessment of the OBBBA corporate tax provisions as they relate to our financial statements. The enactment of the OBBBA did not have a material impact to our effective tax rate for the three months ended April 4, 2026. However, we expect the OBBBA to decrease our cash tax liability for 2026. We will continue to evaluate the full impact of the OBBBA corporate tax provision changes as additional guidance becomes available.

Current wording

In July 2025, the U.S. enacted the OBBBA. Amongst other things, the OBBBA provides for several corporate tax provision changes including restoring the full expensing of qualified property placed in service after January 19, 2025, reinstating the immediate expensing of U.S. research and development expenditures paid or incurred for tax years beginning after December 31, 2024, and changes in the computations of U.S. taxation on international earnings for tax years beginning after December 31, 2025. We completed the initial assessment of the OBBBA corporate tax provisions as they relate to our financial statements. The enactment of the OBBBA did not have a material impact to our effective tax rate for the three and six months ended July 4, 2026. However, we expect the OBBBA to decrease our cash tax liability for 2026. We will continue to evaluate the full impact of the OBBBA corporate tax provision changes as additional guidance becomes available.

Previous wording

Net income, net income as a percentage of revenues, and earnings per share for the three months ended April 4, 2026 were $9.9 million, or 4.7% of revenues, or $0.64 per diluted share, respectively, compared to $1.4 million, or 0.7% of revenues, or $0.09 per diluted share, respectively, for the three months ended March 29, 2025. The increase in net income for the three months ended April 4, 2026 compared to the three months ended March 29, 2025 was primarily due to higher gross profit of $5.8 million and lower stock-based compensation expense of $4.3 million discussed above, partially offset by higher income tax expense of $1.5 million discussed above.

Current wording

Net income, net income as a percentage of revenues, and earnings per share for the six months ended July 4, 2026 were $30.3 million, or 7.0% of revenues, or $1.95 per diluted share, respectively, compared to $14.2 million, or 3.6% of revenues, or $0.93 per diluted share, respectively, for the six months ended June 28, 2025. The increase in net income for the six months ended July 4, 2026 compared to the six months ended June 28, 2025 was primarily due to higher gross profit of $15.7 million, lower SG&A expenses of $4.6 million due to compensation clawback of $3.9 million, which is a reduction to SG&A expenses discussed above, partially offset by higher income tax expense of $2.2 million.

Previous wording

We report our financial performance based upon our two reportable operating segments: Electronic Systems and Structural Systems. The results of operations differ between our reportable operating segments due to differences in competitors, customers, extent of proprietary deliverables and performance. The following table summarizes our business segment performance for the three months ended April 4, 2026 and March 29, 2025:

Current wording

We report our financial performance based upon our two reportable operating segments: Electronic Systems and Structural Systems. The results of operations differ between our reportable operating segments due to differences in competitors, customers, extent of proprietary deliverables and performance. The following table summarizes our business segment performance for the three and six months ended July 4, 2026 and June 28, 2025:

Previous wording

(2)The three months ended April 4, 2026 and March 29, 2025 each included less than $0.1 million of stock-based compensation expense recorded as cost of sales.

Current wording

(2)The three and six months ended July 4, 2026 included $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and six months ended June 28, 2025 each included $0.1 million of stock-based compensation expense recorded as cost of sales.

Previous wording

(3)The three months ended April 4, 2026 and March 29, 2025 included less than $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales.

Current wording

(3)The three and six months ended July 4, 2026 included less than $0.1 million and $0.1 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and six months ended June 28, 2025 each included $0.1 million of stock-based compensation expense recorded as cost of sales.

Previous wording

(1) The three months ended April 4, 2026 and March 29, 2025 included $0.3 million and $0.6 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three months ended April 4, 2026 and March 29, 2025 included $0.1 million and less than $0.1 million, respectively, of stock-based compensation expense recorded as cost of sales.

Current wording

(4)The three and six months ended July 4, 2026 included zero and $0.3 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and six months ended June 28, 2025 included $0.6 million and $1.2 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash.

Previous wording

Electronic Systems net revenues in the three months ended April 4, 2026 compared to the three months ended March 29, 2025 increased $8.5 million primarily due to the following in our key end-use markets:

Current wording

Electronic Systems net revenues in the three months ended July 4, 2026 compared to the three months ended June 28, 2025 increased $21.7 million primarily due to the following in our key end-use markets:

Previous wording

•$5.3 million higher revenues in our military and space end-use markets due to higher rates on selected fixed-wing aircraft and missile platforms, partially offset by lower rates on electronic warfare and radar platforms; and

Current wording

•$15.4 million higher revenues in our military and space end-use markets due to higher rates on selected fixed-wing aircraft and missiles platforms, partially offset by lower rates on radar and electronic warfare, and naval platforms, along with a classified program; and

Previous wording

Electronic Systems segment operating income in the three months ended April 4, 2026 compared to the three months ended March 29, 2025 increased $5.5 million primarily due to favorable product mix, higher manufacturing volume, and lower other manufacturing costs.

Current wording

Electronic Systems segment operating income in the six months ended July 4, 2026 compared to the six months ended June 28, 2025 increased $10.5 million, primarily due to higher manufacturing volume and lower other manufacturing costs, partially offset by unfavorable product mix.

Previous wording

•$0.1 million higher revenues in our military and space end-use markets due to higher rates on selected missile platforms, partially offset by lower rates on selected rotary-wing aircraft platforms.

Current wording

•$2.1 million lower revenues in our military and space end-use markets due to lower rates on selected rotary-wing aircraft platforms, partially offset by higher rates on several missiles platforms.

Previous wording

•$12.5 million higher revenues in our commercial aerospace end-use markets due to higher rates on large aircraft and rotary-wing aircraft platforms; and

Current wording

•$12.0 million higher revenues in our commercial aerospace end-use markets due to higher rates on large aircraft and rotary-wing aircraft platforms, partially offset by lower rates on selected business jet platforms; partially offset by

Previous wording

A neighboring, non-related manufacturing facility, also suffered fire damage during the same time as the fire that severely damaged our Guaymas performance center and, in November 2023, the occupant of the neighboring facility filed suit against us in U.S. District Court for the Central District of California seeking unspecified amounts for damages relating to the fire. Subsequent to our quarter ended September 27, 2025, on October 3, 2025, we entered into a binding settlement term sheet (the “Term Sheet”) to resolve the Guaymas fire litigation against us. The Term Sheet provides for, among other things, the final dismissal of the Guaymas fire litigation against us with prejudice and a release of claims against us in exchange for us issuing a payment of $150.0 million, $56.0 million of which is expected to be funded by our insurance carriers. Also subsequent to our quarter ended September 27, 2025, on October 9, 2025, we settled an ancillary subrogation claim related to the fire for $1.4 million. Further, subsequent to the fiscal year ended December 31, 2025, on January 7, 2026, we settled another ancillary subrogation claim related to the fire for $4.0 million. See Note 11 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for further information.

Current wording

A neighboring, non-related manufacturing facility, also suffered fire damage during the same time as the fire that severely damaged our Guaymas performance center and, in November 2023, the occupant of the neighboring facility filed suit against us in U.S. District Court for the Central District of California seeking unspecified amounts for damages relating to the fire. Subsequent to our quarter ended September 27, 2025, on October 3, 2025, we entered into a binding settlement term sheet (the “Term Sheet”) to resolve the Guaymas fire litigation against us. The Term Sheet provides for, among other things, the final dismissal of the Guaymas fire litigation against us with prejudice and a release of claims against us in exchange for us issuing a payment of $150.0 million, $56.0 million of which at that time was expected to be funded by our insurance carriers. Also subsequent to our quarter ended September 27, 2025, on October 9, 2025, we settled an ancillary subrogation claim related to the fire for $1.4 million. Further, subsequent to the fiscal year ended December 31, 2025, on January 7, 2026, we settled another ancillary subrogation claim related to the fire for $4.0 million. See Note 11 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for further information.

Previous wording

Adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, and restructuring charges (“Adjusted EBITDA”) were $35.4 million and $29.7 million for the three months ended April 4, 2026 and March 29, 2025, respectively.

Current wording

Adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, and restructuring charges (“Adjusted EBITDA”) were $38.4 million and $31.6 million for the three months ended July 4, 2026 and June 28, 2025, respectively.

Previous wording

•Interest expense may be useful to investors for determining current cash flow;

Current wording

•Interest expense, net may be useful to investors for determining current cash flow;

Previous wording

•Stock-based compensation may be useful to our investors for determining current cash flow; and

Current wording

•Stock-based compensation may be useful to our investors for determining current cash flow;

Previous wording

For the three months ended April 4, 2026 and March 29, 2025, we made the required quarterly amortization payments of $1.3 million and zero, respectively. The required quarterly amortization due on March 31, 2025 was in our second fiscal quarter of 2025. We made no voluntary prepayments on our term loans during each of the three months ended April 4, 2026 and March 29, 2025.

Current wording

For the three months ended July 4, 2026 and June 28, 2025, we made the required quarterly amortization payments of $1.3 million and $3.1 million, respectively. For the six months ended July 4, 2026 and June 28, 2025, we made the required quarterly amortization payments of $2.5 million and $3.1 million, respectively. The required quarterly amortization payments due on March 31, 2025 and June 30, 2025 were in our second and third fiscal quarters of 2025, respectively. We made no voluntary prepayments on our term loans during each of the three and six months ended July 4, 2026 and June 28, 2025.

Previous wording

In July 2022, as a result of completing a refinancing of our existing debt, we were required to complete an amendment of the Forward Interest Rate Swaps (“Amended Forward Interest Rate Swaps”). The Forward Interest Rate Swaps were based on U.S. dollar-one month LIBOR and were amended to be based on one month Term Secured Overnight Financing Rate (“SOFR”) as borrowings using LIBOR were no longer available under the 2022 Credit Facilities. The Amended Forward Interest Rate Swaps weighted average fixed rate is 1.7%, as a result of the difference between U.S. dollar-one month LIBOR and one month Term

Current wording

In July 2022, as a result of completing a refinancing of our existing debt, we were required to complete an amendment of the Forward Interest Rate Swaps (“Amended Forward Interest Rate Swaps”). The Forward Interest Rate Swaps were based on U.S. dollar-one month LIBOR and were amended to be based on one month Term Secured Overnight Financing Rate (“SOFR”) as borrowings using LIBOR were no longer available under the 2022 Credit Facilities. The Amended Forward Interest Rate Swaps weighted average fixed rate is 1.7%, as a result of the difference between U.S. dollar-one month LIBOR and one month Term SOFR. See Note 1, Note 4, and Note 8 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for further information.

Previous wording

Net cash provided by operating activities for the three months ended April 4, 2026 was $11.2 million compared to $0.8 million for the three months ended March 29, 2025. The higher net cash provided by operating activities during the first three months of 2026 was mainly due to higher net income and higher contract liabilities as a result of higher progress payments, partially offset by lower accrued and other liabilities and higher accounts receivable.

Current wording

Net cash provided by operating activities for the six months ended July 4, 2026 was $44.8 million compared to $23.2 million for the six months ended June 28, 2025. The higher net cash provided by operating activities during the first six months of 2026 was mainly due to higher net income, higher contract liabilities as a result of higher progress payments, and higher accounts payable, partially offset by higher accounts receivable, lower accrued and other liabilities, higher contract assets, and higher inventories.

Previous wording

Net cash used in investing activities was $2.9 million for the three months ended April 4, 2026, compared to $4.8 million in the three months ended March 29, 2025. The lower net cash used in investing activities during the first three months of 2026 was mainly due to lower purchases of property and equipment.

Current wording

Net cash used in investing activities was $6.4 million for the six months ended July 4, 2026, compared to $7.0 million in the six months ended June 28, 2025. The lower net cash used in investing activities during the first six months of 2026 was mainly due to lower purchases of property and equipment.

Previous wording

Net cash used in financing activities was $14.5 million for the three months ended April 4, 2026, compared to $2.4 million for the three months ended March 29, 2025. The higher net cash used in financing activities during the first three months of 2026 was mainly due to higher net cash paid upon issuance of common stock under stock plans related to the release of vested performance stock units and higher stock options exercised, both of which are net settled.

Current wording

Net cash used in financing activities was $43.9 million for the six months ended July 4, 2026, compared to $16.2 million for the six months ended June 28, 2025. The higher net cash used in financing activities during the first six months of 2026 was mainly due to higher net repayments on our senior secured revolving credit facility and higher net cash paid upon issuance of common stock under stock plans.