Atmus Filtration Technologies Inc.

Previous wording

The following is our discussion and analysis of changes in our financial condition and results of operations for thethree and six months ended June 30, 2025 compared to thethree and six months ended June 30, 2024.

Current wording

The following is our discussion and analysis of changes in our financial condition and results of operations for thethree and nine months ended September 30, 2025 compared to thethree and nine months ended September 30, 2024.

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, those that are based on current expectations, estimates and projections about the industries in which we operate and management’s views, plans, objectives, projections, beliefs and assumptions. Forward-looking statements may be identified by the use of words such as “anticipates,” “expects,” “forecasts,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “could,” “should,” “may” or words of similar meaning. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance, discussions of future operations, impact of planned acquisitions and dispositions, our strategy for growth, product development activities, regulatory approvals, market position, expenditures and the effects of the Full Separation, Separation and IPO (each as defined in Note 1, Description of the Business, to our Condensed Consolidated Financial Statements included herein). These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which we refer to as “future factors,” which are difficult to predict. If the underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, our actual outcomes, results and financial condition may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Future factors and uncertainties include, but are not limited to:

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, those that are based on current expectations, estimates and projections about the industries in which we operate and management’s views, plans, objectives, projections, beliefs and assumptions. Forward-looking statements may be identified by the use of words such as “anticipates,” “expects,” “forecasts,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “could,” “should,” “may” or words of similar meaning. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance, the development of future operations, the impact of planned acquisitions and dispositions, our strategy for growth, product development activities, regulatory approvals, market position, expenditures and the effects of the Full Separation, Separation and IPO (each as defined in Note 1, Description of the Business, to our Condensed Consolidated Financial Statements included herein). These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which we refer to as “future factors,” which are difficult to predict. If the underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, our actual outcomes, results and financial condition may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Future factors and uncertainties include, but are not limited to:

Previous wording

During the first half of 2025, the United States announced changes to U.S. trade policy, including increasing tariffs on imports, in some cases significantly, and potentially negotiating or terminating existing trade agreements. The United States also indicated that tariffs may change and that additional measures are under consideration to be introduced. These tariff and tariff-related measures include potential impacts to the industry in which we operate and the commodities to which our products are exposed. These actions, along with corresponding retaliatory tariffs imposed by other countries on U.S. exports, have led to significant volatility and uncertainty in global demand in both aftermarket and first-fit. In response to these developments, we mitigated the cost impact on our business by employing any exemptions for which we were eligible, such as compliance under the United States-Mexico-Canada Agreement (“USMCA”), adjustment to our supply chain, and select price adjustments. We will continue to evaluate opportunities to offset these costs and mitigate the impact on our business, consolidated results of operations and financial condition. Given the uncertainties, it is difficult to estimate the evolving tariff and policy landscape which may have a material impact on our profitability going forward.

Current wording

During 2025, the United States announced changes to U.S. trade policy, including increasing tariffs on imports, in some cases significantly, and potentially negotiating or terminating existing trade agreements. The United States also indicated that tariffs may change and that additional measures are under consideration to be introduced. These tariff and tariff-related measures include potential impacts to the industry in which we operate and the commodities to which our products are exposed. These actions, along with corresponding retaliatory tariffs imposed by other countries on U.S. exports, have led to significant volatility and uncertainty in global demand in both aftermarket and first-fit. In response to these developments, we mitigated the cost impact on our business by employing any exemptions for which we were eligible, such as compliance under the United States-Mexico-Canada Agreement (“USMCA”), adjusting our supply chain, and implementing select price adjustments. We will continue to evaluate opportunities to offset these costs and mitigate the impact on our business, consolidated results of operations and financial condition. Given the uncertainties, it is difficult to estimate the evolving tariff and policy landscape which may have a material impact on our profitability going forward.

Previous wording

Aftermarket demand remained soft in the first six months of 2025. We continue to be in a period of slow growth in global aftermarkets, and this trend is expected to continue through the second half of 2025. First-fit experienced reduced demand in the first six months of 2025 reflecting depressed market conditions. First-fit demand is expected to remain at reduced levels through the second half of 2025 based on overall market cyclicality.

Current wording

Aftermarket demand remained soft in the first nine months of 2025. We continue to be in a period of slow growth in global aftermarkets, and this trend is expected to continue for the remainder of 2025. First-fit experienced reduced demand in the first nine months of 2025 reflecting depressed market conditions. First-fit demand is expected to remain at reduced levels through 2025 based on overall market cyclicality.

Previous wording

Overall supply chain conditions remained largely stable in the first six months of 2025 with minimal disruptions being experienced. Logistics costs increased during the first half of 2025, primarily due to the impact of tariffs. Our management team continues to monitor and evaluate all of the factors affecting our supply chain condition and the related impacts on our business and operations, and we continue to minimize any supply chain impacts to our business and to our customers.

Current wording

Overall supply chain conditions remained largely stable in the first nine months of 2025 with minimal disruptions being experienced. Logistics costs increased during the first nine months of 2025, primarily due to the transition to a standalone distribution network as part of the Separation and the impact of tariffs. Our management team continues to monitor and evaluate all of the factors affecting our supply chain condition and the related impacts on our business and operations, and we continue to minimize any supply chain impacts to our business and to our customers.

Previous wording

We have experienced variability in direct material costs through the first half of 2025. Various key commodities have been exposed to inflationary pressures, primarily due to the impact of tariffs. While the costs of our principal materials fluctuate, generally we believe there will continue to be an adequate supply of the materials we use and that they will broadly remain available.

Current wording

We have experienced general variability in direct material costs through the first nine months of 2025. While the costs of our principal materials fluctuate, generally we believe there will continue to be an adequate supply of the materials we use and that they will broadly remain available.

Previous wording

During the first six months of 2025, our Selling, general and administrative expenses decreased due to lower one-time separation expenses.

Current wording

During the first nine months of 2025, our Selling, general and administrative expenses decreased due to lower one-time separation expenses.

Previous wording

Additionally, the appreciation of the U.S. dollar against certain foreign currencies had an unfavorable impact on our condensed consolidated results of operations in the first six months of 2025 due to translation impacts. We remain in a volatile currency environment and as such, there can be no assurances that this trend will continue for the remainder of 2025.

Current wording

Additionally, the depreciation of the U.S. dollar against certain foreign currencies had an unfavorable impact on our condensed consolidated results of operations in the first nine months of 2025 due to translation impacts. We remain in a volatile currency environment and as such, there can be no assurances that this trend will continue for the remainder of 2025.

Previous wording

We have incurred, and expect to continue to incur, additional costs associated with becoming a standalone public company. During the three months ended June 30, 2025, we incurred approximately $2.5 million of one-time expenses including $1.9 million within Cost of sales and $0.6 million within Selling, general and administrative expenses. During the six months ended June 30, 2025, we incurred approximately$11.8 million of one-time expenses including $8.7 million within Cost of sales and $3.1 million within Selling, general and administrative expenses. We expect to incur one-time expenses of approximately $10 million to $15 million in 2025 in connection with becoming a standalone public company. In addition, we expect to incur capital expenditures in connection with the Separation of approximately $10 million to $15 million in 2025. These expenses and capital expenditures primarily relate to the establishment of functions previously co-mingled with Cummins, such as information technologies, distribution centers, manufacturing and human resources. The one-time costs incurred during the six months ended June 30, 2025, were primarily associated with establishing our own standalone warehouse in Belgium as we worked to ensure we were supporting customer needs and our technology transformation and modernization project. These expenses and capital expenditures are expected to be complete by the end of 2025. The actual amount of the expenses and capital expenditures we will incur as a stand-alone public company may be higher, perhaps significantly, from our current estimates for a number of reasons, including, among others, the final terms we are able to negotiate with service providers, as well as additional costs we may incur that we have not currently anticipated. Additionally, the actual timing of when we incur these incremental expenses may be different, perhaps significantly, from our current estimates for a number of reasons, including, among others, unforeseen events that may cause delays or interruptions in our plans or our service providers’ ability to provide their services.

Current wording

We have incurred additional costs associated with becoming a standalone public company. During the three months ended September 30, 2025, we incurred approximately$3.7 million of one-time expenses including $2.5 million within Cost of sales and $1.2 million within Selling, general and administrative expenses. During the nine months ended September 30, 2025, we incurred approximately$15.5 million of one-time expenses including $11.2 million within Cost of sales and $4.3 million within Selling, general and administrative expenses. In addition, we have incurred capital expenditures in connection with the Separation of approximately$9.5 million in 2025. These expenses and capital expenditures primarily relate to the establishment of functions previously co-mingled with Cummins, such as information technologies, distribution centers, manufacturing and human resources. The one-time costs incurred during the three months ended September 30, 2025, were primarily associated with our technology transformation and modernization project. The transition services agreement under which Cummins had continued to provide certain services related primarily to administrative services ended in September 2025. With the conclusion of this agreement, we do not expect to incur any additional one-time expenses or capital expenditures in 2025 or in future periods in connection with becoming a standalone public company.

Previous wording

Net sales were$453.5 million for the three months ended June 30, 2025, an increase of$20.9 million compared to$432.6 million for the three months ended June 30, 2024. The increase in Net sales was mainly due to favorable volumes of $15.0 million and pricing of $10.2 million, offset by unfavorable impacts of currency of $4.3 million.

Current wording

Net sales were$447.7 million for the three months ended September 30, 2025, an increase of$44.0 million compared to$403.7 million for the three months ended September 30, 2024. The increase in Net sales was mainly due to favorable volumes of $25.8 million, pricing of $14.9 million and favorable impacts of currency of $3.3 million. The favorable impact from pricing is primarily driven by normal pricing initiatives and select increases as a result of tariffs.

Previous wording

Gross margin was$131.0 million for the three months ended June 30, 2025, a decrease of$0.9 million compared to$131.9 million for the three months ended June 30, 2024. The decrease in Gross margin was mainly due to unfavorable logistics costs of $10.7 million, a $2.1 million increase in one-time separation costs, unfavorable manufacturing and other costs of $2.0 million and $1.5 million in unfavorable currency impacts, partially offset by favorable pricing of $10.2 million as described above, and favorable volumes of $5.2 million. Gross margin as a percentage of Net sales was 28.9% for the three months ended June 30, 2025, a decrease of 1.6 percentage points compared to 30.5%for the three months ended June 30, 2024. The decrease in Gross margin as a percentage of Net sales was primarily driven by the items noted above.

Current wording

Gross margin was$129.4 million for the three months ended September 30, 2025, an increase of$18.1 million compared to$111.3 million for the three months ended September 30, 2024. The increase in Gross margin was mainly due to favorable pricing of $14.9 million as described above, favorable volumes of $9.0 million, favorable manufacturing and other costs of $6.2 million and a $2.5 million decrease in one-time separation costs, partially offset by unfavorable logistics costs of $14.5 million. Gross margin as a percentage of Net sales was 28.9% for the three months ended September 30, 2025, an increase of 1.3 percentage points compared to 27.6%for the three months ended September 30, 2024. The increase in Gross margin as a percentage of Net sales was primarily driven by the items noted above.

Previous wording

Selling, general and administrative expenses were$46.1 million for the three months ended June 30, 2025, a decrease of$3.0 million compared to$49.1 million for the three months ended June 30, 2024. The decrease was primarily driven by lower one-time separation costs of $3.5 million, partially offset by higher consulting expenses. Selling, general and administrative expenses as a percentage of Net sales were 10.2% for the three months ended June 30, 2025, a decrease of 1.1 percentage points compared to 11.3% for the three months ended June 30, 2024. The decrease in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.

Current wording

Selling, general and administrative expenses were$45.9 million for the three months ended September 30, 2025, a decrease of$0.5 million compared to$46.4 million for the three months ended September 30, 2024. The decrease was primarily driven by lower one-time separation costs of $2.7 million, partially offset by higher consulting expenses. Selling, general and administrative expenses as a percentage of Net sales were 10.3% for the three months ended September 30, 2025, a decrease of 1.2 percentage points compared to 11.5% for the three months ended September 30, 2024. The decrease in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.

Previous wording

Interest expense was$8.5 million for the three months ended June 30, 2025, a decrease of$2.0 million compared to$10.5 million for the three months ended June 30, 2024. The decrease was primarily driven by a reduction to the interest rate on our borrowings and lower outstanding borrowings on our Credit Agreement as principal payments were made.

Current wording

Interest expense was$8.5 million for the three months ended September 30, 2025, a decrease of$1.9 million compared to$10.4 million for the three months ended September 30, 2024. The decrease was primarily driven by a reduction to the interest rate on our borrowings and lower outstanding borrowings on our Credit Agreement as principal payments were made.

Previous wording

Our effective tax rate for the three months ended June 30, 2025 was 21.9%, an increase of 0.1 percentage points compared to 21.8% for the three months ended June 30, 2024. The increase in the effective tax rate was driven by a change in the mix of earnings among tax jurisdictions and discrete tax items. Our effective tax rate differs from the U.S. statutory rate primarily due to differences in rates applicable to foreign subsidiaries, withholding taxes and state income taxes.

Current wording

Our effective tax rate for the three months ended September 30, 2025 was 23.6%, an increase of 5.2 percentage points compared to 18.4% for the three months ended September 30, 2024. The increase in the effective tax rate was driven by an unfavorable change in the mix of earnings among tax jurisdictions and reductions to U.S. tax incentives and credits due to the adoption of the OBBBA, partially offset by discrete tax items. Our effective tax rate differs from the U.S. statutory rate primarily due to differences in rates applicable to foreign subsidiaries, withholding taxes and state income taxes.

Previous wording

Net sales were$870.0 million for thesix months ended June 30, 2025, an increase of$10.8 million compared to$859.2 million for thesix months ended June 30, 2024. The increase in Net sales was mainly due to $15.0 million of favorable pricing impacts and higher volumes of $11.5 million, partially offset by the unfavorable impacts of currency of $15.6 million.

Current wording

Net sales were$1,317.7 million for thenine months ended September 30, 2025, an increase of$54.8 million compared to$1,262.9 million for thenine months ended September 30, 2024. The increase in Net sales was mainly due to higher volumes of $37.3 million and favorable pricing impacts of $29.9 million, partially offset by the unfavorable impacts of currency of $12.4 million. The favorable impact from pricing is primarily driven by normal pricing initiatives and select increases as a result of tariffs.

Previous wording

Gross margin was$241.5 million for thesix months ended June 30, 2025, a decrease of$2.2 million compared to$243.7 million for thesix months ended June 30, 2024. The decrease in Gross margin was mainly due to unfavorable logistics costs of $12.9 million, $6.3 million in unfavorable currency impacts and a $5.6 million increase in one-time separation costs, partially offset by favorable pricing of $15.0 million as described above, favorable volumes of $4.0 million, a $2.3 million decrease in warranty costs and a $1.3 million decrease in manufacturing and other costs. Gross margin as a percentage of Net sales was 27.8% for thesix months ended June 30, 2025, a decrease of 0.6 percentage points compared to 28.4% for thesix months ended June 30, 2024. The decrease in Gross margin as a percentage of Net sales was primarily due to the items noted above.

Current wording

Gross margin was$370.9 million for thenine months ended September 30, 2025, an increase of$15.9 million compared to$355.0 million for thenine months ended September 30, 2024. The increase in Gross margin was mainly due to favorable pricing of $29.9 million as described above, favorable volumes of $13.0 million and a $9.8 million decrease in manufacturing and other costs, partially offset by unfavorable logistics costs of $27.4 million, $6.2 million in unfavorable currency impacts and a $3.1 million increase in one-time separation costs. Gross margin as a percentage of Net sales was 28.1% for thenine months ended September 30, 2025, consistent with a gross margin of 28.1% for thenine months ended September 30, 2024.

Previous wording

Selling, general and administrative expenses were$92.0 million for thesix months ended June 30, 2025, a decrease of$0.4 million compared to$92.4 million for thesix months ended June 30, 2024. The decrease was primarily driven by lower one-time separation costs of $3.7 million, partially offset by increased people-related and consulting expenses. Selling, general and administrative expenses as a percentage of Net sales were 10.6% for thesix months ended June 30, 2025, a decrease of 0.2 percentage points compared to 10.8% for thesix months ended June 30, 2024. The decrease in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.

Current wording

Selling, general and administrative expenses were$137.9 million for thenine months ended September 30, 2025, a decrease of$0.9 million compared to$138.8 million for thenine months ended September 30, 2024. The decrease was primarily driven by lower one-time separation costs of $6.4 million, partially offset by increased people-related and consulting expenses. Selling, general and administrative expenses as a percentage of Net sales were 10.5% for thenine months ended September 30, 2025, a decrease of 0.5 percentage points compared to 11.0% for thenine months ended September 30, 2024. The decrease in Selling, general and administrative expenses as a percentage of Net sales was primarily driven by the items noted above.

Previous wording

Equity, royalty and interest income from investees was$16.7 million for thesix months ended June 30, 2025, a decrease of$1.9 million compared to$18.6 million for thesix months ended June 30, 2024. The decrease was primarily due to lower earnings of$1.9 million from our joint ventures in India and China.

Current wording

Equity, royalty and interest income from investees was$25.1 million for thenine months ended September 30, 2025, a decrease of$1.6 million compared to$26.7 million for thenine months ended September 30, 2024. The decrease was primarily due to lower earnings of$1.6 million from our joint ventures in India and China.

Previous wording

Other operating (income) expense, net was$(0.2) million for thesix months ended June 30, 2025, a decrease of$1.2 million compared to$1.0 million for thesix months ended June 30, 2024. The change was primarily due to prior year asset write-offs in 2024 that did not recur.

Current wording

Other operating (income) expense, net was$(0.2) million for thenine months ended September 30, 2025, a decrease of$1.3 million compared to$1.1 million for thenine months ended September 30, 2024. The change was primarily due to prior year asset write-offs in 2024 that did not recur.

Previous wording

Interest expense was$16.9 million for thesix months ended June 30, 2025, a decrease of$4.1 million compared to$21.0 million for thesix months ended June 30, 2024. The decrease in Interest expense was primarily driven by a reduction to the interest rate on our borrowings and lower outstanding borrowings on our Credit Agreement as principal payments were made.

Current wording

Interest expense was$25.4 million for thenine months ended September 30, 2025, a decrease of$6.0 million compared to$31.4 million for thenine months ended September 30, 2024. The decrease in Interest expense was primarily driven by a reduction to the interest rate on our borrowings and lower outstanding borrowings on our Credit Agreement as principal payments were made.

Previous wording

Our effective tax rate for thesix months ended June 30, 2025 was 21.6%, a decrease of 0.3 percent percentage points compared to 21.9% for thesix months ended June 30, 2024. The decrease in the effective tax rate was driven by a change in the mix of earnings among tax jurisdictions and discrete tax items. Our effective tax rate differs from the U.S. statutory rate primarily due to differences in rates applicable to foreign subsidiaries, withholding taxes and state income taxes.

Current wording

Our effective tax rate for thenine months ended September 30, 2025 was 22.3%, an increase of 1.4 percentage points compared to 20.9% for thenine months ended September 30, 2024. The increase in the effective tax rate was driven by an unfavorable change in the mix of earnings among tax jurisdictions and reductions to U.S. tax incentives and credits due to the adoption of the OBBBA, partially offset by discrete tax items. Our effective tax rate differs from the U.S. statutory rate primarily due to differences in rates applicable to foreign subsidiaries, withholding taxes and state income taxes.

Previous wording

Our facilities under the Credit Agreement provide for $1.0 billion in total availability, which includes a $600 million term loan and a $400 million revolving credit facility. As of June 30, 2025, we have outstanding borrowings of $585.0 million on the term loan and zero on the revolving credit facility. As a result, we had capacity under our revolving credit facility of $400 million as of June 30, 2025.

Current wording

Our facilities under the Credit Agreement provide for $1.0 billion in total availability, which includes a $600 million term loan and a $400 million revolving credit facility. As of September 30, 2025, we have outstanding borrowings of $577.5 million on the term loan and no amount was drawn on the revolving credit facility. As a result, we had capacity under our revolving credit facility of $400 million as of September 30, 2025.

Previous wording

Net cash provided by operating activities was$73.1 million for thesix months ended June 30, 2025, an increase of$58.4 million compared to$14.7 million for thesix months ended June 30, 2024. The increase was driven primarily by lower working capital requirements of$50.4 million. During thesix months ended June 30, 2025, lower working capital requirements resulted in a cash outflow of$41.3 million compared to a cash outflow of$91.7 million for thesix months ended June 30, 2024, mainly due to higher trade payables, lower inventory and lower prepaids, partially offset by higher trade receivables.

Current wording

Net cash provided by operating activities was$155.2 million for thenine months ended September 30, 2025, an increase of$69.8 million compared to$85.4 million for thenine months ended September 30, 2024. The increase was driven primarily by lower working capital requirements of$49.7 million and higher net income of $13.9 million. During thenine months ended September 30, 2025, lower working capital requirements resulted in a cash outflow of$32.2 million compared to a cash outflow of$81.9 million for thenine months ended September 30, 2024, mainly due to higher trade payables and other accrued expenses and lower prepaids, partially offset by higher trade receivables.

Previous wording

Dividends received from our unconsolidated equity investees were$5.7 million and$9.6 million for thesix months ended June 30, 2025 and June 30, 2024, respectively.

Current wording

Dividends received from our unconsolidated equity investees were$17.8 million and$22.6 million for thenine months ended September 30, 2025 and September 30, 2024, respectively.

Previous wording

Net cash used in investing activities for thesix months ended June 30, 2025 and June 30, 2024 was primarily used for capital expenditures. Our capital expenditures were$24.4 million (of which approximately$6.6 million related to one-time separation capital expenditures) and$22.2 million (of which approximately$7.3 million related to one-time separation capital expenditures) for thesix months ended June 30, 2025 and June 30, 2024, respectively, corresponding to approximately 2.8% and 2.6% of Net sales for thesix months ended June 30, 2025 and June 30, 2024, respectively.

Current wording

Net cash used in investing activities for thenine months ended September 30, 2025 and September 30, 2024 was primarily used for capital expenditures. Our capital expenditures were$37.6 million (of which approximately$9.5 million related to one-time separation capital expenditures) and$38.6 million (of which approximately$12.4 million related to one-time separation capital expenditures) for thenine months ended September 30, 2025 and September 30, 2024, respectively, corresponding to approximately 2.9% and 3.1% of Net sales for thenine months ended September 30, 2025 and September 30, 2024, respectively.

Previous wording

Net cash used in financing activities for thesix months ended June 30, 2025 was$45.9 million compared to$0.0 millionfor thesix months ended June 30, 2024. Net cash used in financing activities for thesix months ended June 30, 2025 consisted primarily of repurchases of common stock, dividends paid and payments made on our term loan.

Current wording

Net cash used in financing activities for thenine months ended September 30, 2025 was$88.1 million compared to$18.0 millionfor thenine months ended September 30, 2024. Net cash used in financing activities for thenine months ended September 30, 2025 and September 30, 2024 consisted primarily of repurchases of common stock, payments made on our term loan and dividends paid.

Previous wording

We paid dividends of$8.3 million in the first six months of 2025 and none in the first six months of 2024. The first quarter 2025 dividend of $0.05 per share, declared on February 19, 2025 for shareholders of record as of March 4, 2025, was paid on March 19, 2025. The second quarter of 2025 dividend of $0.05 per share, declared on May 21, 2025 for shareholders of record as of June 3, 2025, was paid on June 18, 2025. The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.

Current wording

The third quarter 2025 dividend of $0.055 per share, declared on August 13, 2025 for shareholders of record as of August 26, 2025, was paid on September 10, 2025. The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.

Previous wording

Our total debt was$585.0 million at June 30, 2025 and$592.5 million at December 31, 2024. At June 30, 2025, the weighted-average term of our outstanding long-term debt was 2.4 years. Refer to Note 9, Debt and Borrowing Arrangements, to the Condensed Consolidated Financial Statements for more information on our debt and debt covenants.

Current wording

Our total debt was$577.5 million at September 30, 2025 and$592.5 million at December 31, 2024. At September 30, 2025, the weighted-average term of our outstanding long-term debt was 1.9 years. Refer to Note 9, Debt and Borrowing Arrangements, to the Condensed Consolidated Financial Statements for more information on our debt and debt covenants.

Previous wording

(a)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs and the related tax impact of those expenses. The tax impact of one-time separation costs for the three months ended June 30, 2025 and 2024 were $0.5 million and $0.8 million, respectively, and for the six months ended June 30, 2025 and 2024 were $2.5 million and $2.1 million, respectively.

Current wording

(a)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs and the related tax impact of those expenses. The tax impact of one-time separation costs for the three months ended September 30, 2025 and 2024 were $0.9 million and $1.6 million, respectively, and for the nine months ended September 30, 2025 and 2024 were $3.4 million and $3.8 million, respectively.