What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-04-30 · 176 added, 68 removed, 456 unchanged (35% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net sales $ 1,004.3 $ 1,011.3 $ 1,949.9 $ 1,975.2

2 unchanged sentences

Selling, general and administrative expenses 197.7 191.3 401.6 383.9

Restructuring and impairment expenses 22.6 — 22.6 —

Interest expense 8.1 4.6 15.2 7.5

Other income, net — ( 1.2 )

Other expense (income), net 1.4 ( 0.4 ) 1.4 ( 1.6 )

Earnings before provision for income taxes 158.0 201.6 312.7 382.7

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net earnings $ 124.9 $ 152.2 $ 242.9 $ 288.8

1 unchanged sentence

Foreign currency translation adjustments ( 3.7 ) 14.5 ( 7.2 ) 15.2

Unrealized gains on cash flow derivative instruments, less related income provision of $( 0.4 ) in 2026, and $( 0.3 ) in 2025

Adjustment to pension liability, less related income tax provision of $ 0.0 in 2026 and $ 0.0 2025

Unrealized net gains (losses) on cash flow derivative instruments, less related income tax (provision) benefit of $( 0.1 ) and $( 0.5 ) in 2026, $ 0.0 and $( 0.2 ) in 2025

0.2 ( 0.2 ) 1.5 0.6

Adjustment to pension liability, less related income tax provision of $ 0.0 and $ 0.0 in 2026 and $ 0.1 and $ 0.1 in 2025

— 0.1 0.1 0.2

Comprehensive Earnings $ 121.4 $ 166.6 $ 237.3 $ 304.8

31 unchanged sentences

Stockholders’ Equity

Class A Common Stock (shares issued, 25,993,539 and 25,993,539 as of March 31, 2026 and December 31, 2025, respectively)

Common Stock (shares issued 164,714,053 and 164,714,053 as of March 31, 2026 and December 31, 2025, respectively)

Class A Common Stock (shares issued, 25,991,739 and 25,993,539 as of June 30, 2026 and December 31, 2025, respectively)

Common Stock (shares issued 164,715,855 and 164,714,053 as of June 30, 2026 and December 31, 2025, respectively)

Capital in excess of par value 623.1 614.4

8 unchanged sentences

(dollars in millions)

Three Months Ended

Six Months Ended

Operating Activities

4 unchanged sentences

Deferred income taxes 25.1 ( 9.1 )

Non-cash impairment 12.4 —

Net changes in operating assets and liabilities:

24 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Class A Common Stock

23 unchanged sentences

Exercise of stock options 0.2 0.7 ( 2.9 ) ( 1.1 )

Share incentives and directors' compensation 0.3 0.3 0.3 0.3

Shares repurchased ( 111.1 ) ( 130.7 ) ( 162.4 ) ( 251.3 )

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

Basis of Presentation

2 unchanged sentences

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results expected for the full year.

Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results expected for the full year.

It is suggested the accompanying condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 10, 2026.

8 unchanged sentences

ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, with early adoption permitted.

The Company is currently in the process of reviewing the guidance and evaluating the impact on its financial statements.

The Company is currently in the process of reviewing the guidance and evaluating the impact of adopting this ASU on its financial statements.

In November 2024, the FASB issued ASU 2024-03 “Income Statement - Reporting Comprehensive Income (Topic 220):

6 unchanged sentences

This ASU requires added disclosures related to the tax rate reconciliation and income taxes paid and includes other amendments intended to improve effectiveness and comparability.

The update is effective for the Company beginning with its 2025 annual disclosures and interim periods beginning in 2026.

The update was effective for the Company beginning with its 2025 annual disclosures and interim periods beginning in 2026.

The adoption of ASU 2023-09 did not affect the Company’s financial position or its results of operations.

13 unchanged sentences

Revenue Recognition (continued)

customers in China pay the Company prior to the shipment of products resulting in a customer deposits liability of $ 28.9 million and $ 34.2 million at March 31, 2026 and December 31, 2025, respectively.

customers in China pay the Company prior to the shipment of products resulting in a customer deposits liability of $ 24.3 million and $ 34.2 million at June 30, 2026 and December 31, 2025, respectively.

Customer deposit liabilities are short term in nature, recognized into revenue within one year of receipt.

2 unchanged sentences

In addition, the Company monitors other risk factors including forward-looking information when establishing adequate allowances for credit losses, which reflects the current estimate of credit losses expected to be incurred over the life of the receivables.

The Company’s allowance for credit losses was $ 15.3 million and $ 14.1 million at March 31, 2026 and December 31, 2025, respectively.

The Company’s allowance for credit losses was $ 15.7 million and $ 14.1 million at June 30, 2026 and December 31, 2025, respectively.

Rebates and incentives are based on pricing agreements and are tied to sales volume.

25 unchanged sentences

Water treatment products The Company’s water treatment products range from point-of-entry water softeners, solutions for problem well water, and whole-home water filtration products to on-the-go filtration bottles, point-of-use carbon, and reverse osmosis products.

A portion of the Company’s sales is comprised of replacement filters.

Typical applications for the Company’s water treatment products include residences, restaurants, hotels and offices.

1 unchanged sentence

The Company’s water treatment products are also sold through independent water quality dealers as well as directly to consumers including through e-commerce sales channels.

A portion of the Company’s sales of water treatment products in the North America segment is comprised of replacement filters.

Revenue Recognition (continued)

3 unchanged sentences

(dollars in millions) Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

North America

1 unchanged sentence

Boilers, related parts, and components (1)

101.7 71.2 183.2 135.6

Water treatment products and related parts 62.4 63.4 122.5 123.1

6 unchanged sentences

Total Net Sales $ 1,004.3 $ 1,011.3 $ 1,949.9 $ 1,975.2

(1) Includes $ 15.9 million of sales of LVC Holdco LLC (Leonard Valve) from January 6, 2026, the date of acquisition.

(1) Includes sales of $ 15.9 million and $ 31.8 million in the three and six months ended June 30, 2026, respectively, related to the January 6, 2026 acquisition of Leonard Valve.

2026 Acquisition

On January 6, 2026, the Company acquired 100 percent of the shares and related assets of Leonard Valve a leading manufacturer of water temperature and flow solutions.

The addition of Leonard Valve is an advancement of its presence in the water management market, and Leonard Valve is included in its North America segment.

On January 6, 2026, the Company acquired 100 percent of the shares and related assets of LVC Holdco LLC (Leonard Valve) a leading manufacturer of water temperature and flow solutions.

The addition of Leonard Valve is an advancement of the Company's presence in the water management market, and Leonard Valve is included in the Company's North America segment.

The transaction was completed for $ 470.0 million, net of cash acquired and subject to customary adjustments.

3 unchanged sentences

Most of the combined purchase price for assets and operations acquired was recorded as intangibles and goodwill with the remaining portion allocated to identifiable assets acquired and liabilities assumed.

As of March 31, 2026, the purchase price allocation remains preliminary and subject to final valuation adjustments that will be completed within the one-year period following the acquisition date.

As of June 30, 2026, the purchase price allocation remains preliminary and subject to final valuation adjustments that will be completed within the one-year period following the acquisition date.

The Company incurred acquisition costs of approximately $ 6.8 million that were recorded in "Selling, general and administrative expenses."

10 unchanged sentences

Net assets acquired $ 470.0

Of the $ 244.5 million of acquired identifiable intangible assets, $ 39.6 million was assigned to trademarks that are not subject to amortization, $ 5.9 million was assigned to patents which are amortized over 10 years, and the remaining $ 199.0 million was assigned to customer relationships which are amortized over 19 and 20 years.

The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill.

Of the $ 247.8 million of acquired identifiable intangible assets, $ 39.6 million was assigned to trademarks that are not subject to amortization, $ 5.9 million was assigned to patents which are amortized over 10 years, and the remaining $ 202.3 million was

Acquisitions (continued)

Revenues and pre-tax earnings associated with Leonard Valve included in the consolidated statement of earnings for the quarter ended March 31, 2026 totaled $ 15.9 million and $ 5.5 million, respectively.

As required under ASC 805 Business Combinations , results of operations have been included in the Company’s consolidated financial statements from the date of their acquisition.

assigned to customer relationships which are amortized over 19 and 20 years.

The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill.

The allocation of the purchase price to goodwill decreased by $ 2.1 million in the second quarter of 2026 due to valuation adjustments related to current assets as well as identifiable intangible assets.

Revenues and pre-tax earnings associated with Leonard Valve included in the consolidated statement of earnings for the six months ended June 30, 2026 totaled $ 31.8 million and $ 9.9 million, respectively.

As required under ASC 805 Business Combinations , results of operations have been included in the Company’s consolidated financial statements from the date of acquisition.

Restructuring and Impairment Expenses

In April 2026, the Company approved and announced a restructuring plan in its water treatment business within the North America segment for approximately $ 20 million, net of anticipated proceeds from the sale of certain assets expected to occur in late 2026.

The plan is designed to increase operational efficiency and accelerate growth through footprint optimization as well as brand rationalization.

The Company recognized $ 22.6 million of restructuring and impairment expenses during the quarter ended June 30, 2026.

These expenses were comprised of $ 2.8 million in severance costs, $ 7.4 million of other restructuring expenses, and asset impairments of $ 12.4 million.

These expenses had a corresponding tax benefit of $ 5.5 million.

(dollars in millions) Severance Expenses Other Restructuring Expenses Impairments Total

Accrued severance and restructuring expenses, March 31, 2026 (1)

$ — $ 0.5 $ — $ 0.5

Charges 2.8 7.4 12.4 22.6

Cash payments ( 0.1 ) ( 0.1 ) — ( 0.2 )

Non-cash impairments and other adjustments — — ( 12.4 ) ( 12.4 )

Accrued severance and restructuring expenses, June 30, 2026 $ 2.7 $ 7.8 $ — $ 10.5

(1) The $ 0.5 million of accrual recorded as of March 31, 2026 relates to a previously announced restructuring plan.

The following table presents the components of the Company’s inventory balances:

(dollars in millions) March 31,

(dollars in millions) June 30,

2026 December 31, 2025

9 unchanged sentences

(dollars in millions) Three Months Ended

Balance at April 1, $ 210.4 $ 194.3

Expense 23.6 23.4

Claims settled ( 20.4 ) ( 16.6 )

Balance at June 30, $ 213.6 $ 201.1

(dollars in millions) Six Months Ended

Balance at January 1, $ 209.7 $ 190.4

2 unchanged sentences

Claims settled ( 41.3 ) ( 33.2 )

Balance at March 31, $ 210.4 $ 194.3

Balance at June 30, $ 213.6 $ 201.1

In 2024, the Company renewed and amended its $ 500 million multi-year, multi-currency revolving credit agreement with a new expiration date of August 23, 2029.

1 unchanged sentence

Borrowings under the Company's bank credit lines and commercial paper borrowings are supported by a $ 500 million revolving credit agreement.

As a result of the long-term nature of this facility, the Company’s commercial paper and credit line borrowings are classified as long-term debt at March 31, 2026.

As a result of the long-term nature of this facility, the Company’s commercial paper and credit line borrowings are classified as long-term debt at June 30, 2026.

At its option, the Company either maintains cash balances or pays fees for bank credit and services.

The facility requires the Company to maintain two financial covenants, a leverage ratio test and an interest coverage test.

The Company was in compliance with the covenants as of March 31, 2026.

The Company was in compliance with the covenants as of June 30, 2026.

On January 5, 2026, the Company entered into an agreement for a new three-year , $ 470 million term loan with a group of eight banks.

1 unchanged sentence

The term loan matures in January 2029, and the terms of the agreement outline a balloon payment at maturity.

The interest rate on the loan is variable based on the SOFR (secured overnight financing rate) plus 0.88 %.

For the period ending March 31, 2026, the interest rate was 4.55 %.

The interest rate on the loan is variable based on the SOFR (secured overnight financing rate) plus 0.88 percent.

For the three and six month periods ending June 30, 2026, the interest rate was 4.52 percent and 4.53 percent, respectively.

Earnings per Share of Common Stock

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Denominator for basic earnings per share - weighted average shares 137,147,703 141,629,971 137,717,039 142,599,394

6 unchanged sentences

Smith Combined Executive Incentive Compensation Plan which was originally approved by stockholders in 2002.

The number of shares available for granting of share based compensation at March 31, 2026 was 1,893,236 .

Share Based Compensation (continued)

The number of shares available for granting of share-based compensation at June 30, 2026 was 1,890,715 .

Upon vesting or exercise of share-based compensation, shares are issued from treasury stock.

1 unchanged sentence

Share units vest three years after the date of grant.

The Company granted 182,070 and 209,366 share units under the Incentive Plan in the three months ended March 31, 2026 and 2025, respectively.

The Company granted 199,163 and 211,010 share units under the Incentive Plan in the six months ended June 30, 2026 and 2025, respectively.

The share units were valued at $ 15.5 million and $ 13.8 million at the date of issuance in 2026 and 2025, respectively, based on the price of the Company’s Common Stock at the date of grant.

The share units are recognized as compensation expense ratably over the three-year vesting period.

Included in share unit expense in the three months ended March 31, 2026 and 2025 was expense associated with accelerated vesting of share unit awards for certain employees who are retirement eligible or will become retirement eligible during the vesting period.

Share based compensation expense attributable to share units of $ 5.7 million and $ 5.5 million was recognized in the three months ended March 31, 2026 and 2025, respectively.

Included in share unit expense in the six months ended June 30, 2026 and 2025 was expense associated with accelerated vesting of share unit awards for certain employees who are retirement eligible or will become retirement eligible during the vesting period.

Share-based compensation expense attributable to share units of $ 2.0 million and $ 1.8 million was recognized in the three months ended June 30, 2026 and 2025, respectively.

Share-based compensation expense attributable to share units of $ 7.7 million and $ 7.3 million was recognized in the six months ended June 30, 2026 and 2025, respectively.

Certain non-U.S.-based employees receive the cash value of the share price at the vesting date in lieu of shares.

Unvested cash-settled awards are remeasured at each reporting period.

A summary of share unit activity under the Incentive Plan is as follows for the three months ended March 31, 2026:

A summary of share unit activity under the Incentive Plan is as follows for the six months ended June 30, 2026:

Number of Units Weighted-Average

3 unchanged sentences

Vested ( 154,975 ) 67.15

Issued and unvested at March 31, 2026 660,082 72.09

Forfeited ( 10,907 ) 74.39

Issued and unvested at June 30, 2026 664,588 71.89

Performance Stock Units

3 unchanged sentences

Potential payouts range from zero to 150 % of the target awards and changes from target amounts are reflected as performance adjustments.

The Company granted 30,015 and 35,365 performance stock units under the Incentive Plan in the three months ended March 31, 2026 and 2025, respectively.

The Company granted 30,015 and 35,365 performance stock units under the Incentive Plan in the six months ended June 30, 2026 and 2025, respectively.

The performance stock units were valued at $ 2.4 million and $ 2.3 million at the date of issuance in 2026 and 2025, respectively, based on the price of the Company’s Common Stock at the date of grant.

The performance stock units are recognized as compensation expense ratably over the three-year vesting period.

Share based compensation expense attributable to performance stock units of $ 0.9 million and $ 0.5 million was recognized in the three months ended March 31, 2026 and 2025, respectively.

Share-based compensation expense attributable to performance stock units of $ 0.7 million and $ 0.7 million was recognized in the three months ended June 30, 2026 and 2025, respectively.

Share-based compensation expense attributable to performance stock units of $ 1.6 million and $ 1.2 million was recognized in the six months ended June 30, 2026 and 2025, respectively.

Certain non-U.S.-based executives receive the cash value of the share price at the vesting date in lieu of shares.

Unvested cash-settled awards are remeasured at each reporting period.

Share Based Compensation (continued)

A summary of performance stock unit activity under the Incentive Plan is as follows for the three months ended March 31, 2026:

A summary of performance stock unit activity under the Incentive Plan is as follows for the six months ended June 30, 2026:

Number of Units Weighted-Average

4 unchanged sentences

Performance adjustments 10,911 65.68

Issued and unvested at March 31, 2026 117,521 74.71

Issued and unvested at June 30, 2026 117,521 74.71

Segment Results

9 unchanged sentences

The CODM uses these financial measures to evaluate and allocate capital and company resources as critical determinants of segment performance.

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

(dollars in millions) North America Rest of World Total Segments Corporate Expenses Total

7 unchanged sentences

Selling, general and administrative expenses 120.4 55.5 175.9 21.8 197.7

Restructuring and impairment expense 22.6 — 22.6 — 22.6

Other expense (income), net 0.1 1.8 1.9 ( 0.5 ) 1.4

Earnings $ 177.2 $ 10.2 $ 187.4 $ ( 21.3 ) $ 166.1

Interest expense ( 8.1 )

Earnings before provision for income taxes $ 158.0

Three Months Ended June 30, 2025

(dollars in millions) North America Rest of World Inter-segment Elimination Total Segments Corporate Expenses Total

Sales from external customers $ 774.0 $ 237.3 $ — $ 1,011.3 $ — $ 1,011.3

Inter-segment sales 5.0 2.8 — 7.8 — 7.8

779.0 240.1 — 1,019.1 — 1,019.1

Elimination of Inter-segment sales ( 5.0 ) ( 2.8 ) — ( 7.8 ) — ( 7.8 )

Net Sales 774.0 237.3 — 1,011.3 — 1,011.3

Cost of products sold 463.3 150.9 — 614.2 — 614.2

Gross profit 310.7 86.4 — 397.1 — 397.1

Inter-segment profit — 0.2 ( 0.2 ) — — —

Selling, general and administrative expenses 112.8 60.6 — 173.4 17.9 191.3

Other (income) expense, net ( 0.2 ) 0.7 — 0.5 ( 0.9 ) ( 0.4 )

3 unchanged sentences

Segment Results (continued)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2026

(dollars in millions) North America Rest of World Total Segments Corporate Expenses Total

7 unchanged sentences

Selling, general and administrative expenses 242.6 110.4 353.0 48.6 401.6

Restructuring and impairment expense 22.6 — 22.6 — 22.6

Other (income) expense, net ( 0.3 ) 3.0 2.7 ( 1.3 ) 1.4

2 unchanged sentences

Earnings before provision for income taxes $ 312.7

Six Months Ended June 30, 2025

(dollars in millions) North America Rest of World Inter-segment Elimination Total Segments Corporate Expenses Total

Sales from external customers $ 1,517.4 $ 457.8 $ — $ 1,975.2 $ — $ 1,975.2

Inter-segment sales 10.3 9.0 — 19.3 — 19.3

1,527.7 466.8 — 1,994.5 — 1,994.5

Elimination of Inter-segment sales ( 10.3 ) ( 9.0 ) — ( 19.3 ) — ( 19.3 )

Net Sales 1,517.4 457.8 — 1,975.2 — 1,975.2

Cost of products sold 909.0 293.7 — 1,202.7 — 1,202.7

Gross profit 608.4 164.1 — 772.5 — 772.5

Inter-segment profit — 0.2 ( 0.2 ) — — —

Selling, general and administrative expenses 226.2 118.0 — 344.2 39.7 383.9

Other (income) expense, net ( 1.1 ) 1.3 — 0.2 ( 1.8 ) ( 1.6 )

Earnings $ 383.3 $ 45.0 $ ( 0.2 ) $ 428.1 $ ( 37.9 ) $ 390.2

Interest expense ( 7.5 )

Earnings before provision for income taxes $ 382.7

Segment Results (continued)

Assets, depreciation and capital expenditures by segment

(dollars in millions) March 31, 2026 December 31, 2025

(dollars in millions) June 30, 2026 December 31, 2025

North America $ 2,844.8 $ 2,325.7

5 unchanged sentences

Depreciation and amortization Three Months Ended

June 30, Six Months Ended

(dollars in millions) 2026 2025 2026 2025

5 unchanged sentences

Capital expenditures Three Months Ended

June 30, Six Months Ended

(dollars in millions) 2026 2025 2026 2025

14 unchanged sentences

Assets (liabilities) measured at fair value on a recurring basis are as follows (dollars in millions):

Fair Value Measurement Using Balance Sheet Location March 31,

Fair Value Measurement Using Balance Sheet Location June 30,

2026 December 31, 2025

2 unchanged sentences

(1) See Footnote 12 for additional details regarding the classifications of the derivative contracts.

Fair Value Measurements (continued)

Items measured at fair value were comprised of the Company’s marketable securities (Level 1) and derivative instruments (Level 2).

There were no changes in the Company's valuation techniques used to measure fair values on a recurring basis during the three months ended March 31, 2026.

There were no changes in the Company's valuation techniques used to measure fair values on a recurring basis during the six months ended June 30, 2026.

Derivative Instruments

15 unchanged sentences

The majority of the amounts in accumulated other comprehensive loss for cash flow hedges are expected to be reclassified into earnings within one year .

The combined fair value of the foreign currency forward contracts was an asset balance of $ 2.0 million as of March 31, 2026 and $ 1.0 million as of December 31, 2025, respectively, which was recorded in Other current assets within the condensed consolidated balance sheet.

Derivative Instruments (continued)

The combined fair value of the foreign currency forward contracts was an asset balance of $ 2.4 million as of June 30, 2026 and $ 1.0 million as of December 31, 2025, respectively, which was recorded in Other current assets within the condensed consolidated balance sheet.

The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts as of the dates indicated that were designated as cash flow hedges:

(dollars in millions) March 31, 2026 December 31, 2025

(dollars in millions) June 30, 2026 December 31, 2025

Buy Sell Buy Sell

6 unchanged sentences

The Company entered into a forward interest rate swap agreement with an independent counterparty to hedge the variability in cash flows due to changes in the Secured Overnight Financing Rate (SOFR) benchmark interest rate associated with variable rate borrowings.

The interest rate swap at March 31, 2026 has a maturity date of September 30, 2029 and effectively converts the Company’s variable interest rate obligation to a fixed interest rate obligation.

The interest rate swap had an aggregate notional amount of 4.2 billion rupees as of March 31, 2026 and December 31, 2025.

The aggregate effective interest rate of the swap as of March 31, 2026 was 8.25 %.

The fair value of the interest rate swap contract was a liability balance of $ 0.4 million and $ 1.0 million as of March 31, 2026 and December 31, 2025, respectively, which was recorded in Accrued liabilities within the condensed consolidated balance sheet.

The interest rate swap at June 30, 2026 has a maturity date of September 30, 2029 and effectively converts the Company’s variable interest rate obligation to a fixed interest rate obligation.

The interest rate swap had an aggregate notional amount of 3.6 billion rupees

Derivative Instruments (continued)

(approximately $ 37.7 million) and 4.2 billion rupees (approximately $ 46.6 million) as of June 30, 2026 and December 31, 2025, respectively.

The aggregate effective interest rate of the swap as of June 30, 2026 was 8.25 %.

The fair value of the interest rate swap contract was a liability balance of $ 0.5 million and $ 1.0 million as of June 30, 2026 and December 31, 2025, respectively, which was recorded in Accrued liabilities within the condensed consolidated balance sheet.

The effect of cash flow hedges on the condensed consolidated statement of earnings:

Three Months Ended March 31 (dollars in millions):

Three Months Ended June 30 (dollars in millions):

Derivatives in ASC 815 cash flow hedging relationships Amount of gain (loss) recognized in other

13 unchanged sentences

$ 0.7 $ ( 0.2 ) $ 0.6 $ —

Six Months Ended June 30 (dollars in millions):

Derivatives in ASC 815 cash flow hedging relationships Amount of gain (loss) recognized in other

comprehensive

loss on derivatives Location of gain (loss)

reclassified from

accumulated other

comprehensive loss

into earnings Amount of gain (loss)

reclassified from

accumulated other

comprehensive

loss into earnings

2026 2025 2026 2025

Foreign currency contracts $ 2.3 $ 1.6 Cost of products sold $ 1.4 $ ( 0.1 )

Interest rate swap 0.5 ( 0.8 ) Interest expense ( 0.3 ) ( 0.1 )

$ 2.8 $ 0.8 $ 1.1 $ ( 0.2 )

Net Investment Hedges

5 unchanged sentences

The Company recognized $ 3.3 million and $ 2.6 million of after-tax losses associated with hedges of net investments in non-U.S.

subsidiaries in currency translation adjustment in other comprehensive loss in the three months ended March 31, 2026 and March 31, 2025, respectively.

The contractual amount of the Company’s foreign currency denominated intercompany debt that is designated as a net investment hedge was ¥ 1.5 billion RMB as of March 31, 2026 and December 31, 2025.

The fair value of the net investment hedge was zero as of March 31, 2026 and December 31, 2025.

The Company’s effective income tax rate for the three months ended March 31, 2026 was 23.7 percent.

The Company estimates that its annual effective income tax rate for the full year 2026 will be approximately between 24.0 and 24.5 percent.

The effective income tax rate for the three months ended March 31, 2025 was 24.6 percent.

The change in the effective income tax rate for the three months ended March 31, 2026 compared to the effective income tax rate for the three months ended March 31, 2025 was primarily due to the geographical earnings mix.

As of March 31, 2026, the Company had $ 13.0 million of unrecognized tax benefits of which $ 4.9 million would affect its effective income tax rate if recognized.

subsidiaries in currency translation adjustment in other comprehensive loss in the three months ended June 30, 2026 and June 30, 2025, respectively.

The Company recognized $ 6.1 million and $ 3.8 million of after-tax losses associated with hedges of net investments in non-U.S.

subsidiaries in currency translation adjustment in other comprehensive loss in the six months ended June 30, 2026 and June 30, 2025, respectively.

The contractual amount of the Company’s foreign currency denominated intercompany debt that is designated as a net investment hedge was ¥ 1.5 billion RMB, approximately $ 214.9 million and $ 208.8 million, as of June 30, 2026 and December 31, 2025, respectively.

The fair value of the net investment hedge was zero as of June 30, 2026 and December 31, 2025.

The Company’s effective income tax rate for the three and six months ended June 30, 2026 was 20.9 percent and 22.3 percent, respectively.

The Company estimates that its annual effective income tax rate for the full year 2026 will be approximately 24.0 percent.

The effective income tax rate for both the three and six months ended June 30, 2025 was 24.5 percent.

The change in the effective income tax rate for the three and six months ended June 30, 2026 compared to the effective income tax rate for the three and six months ended June 30, 2025 was primarily due to a discrete tax benefit recognized during the period ended June 30, 2026 related to U.S.

cross border tax elections.

Income Taxes (continued)

As of June 30, 2026, the Company had $ 13.0 million of unrecognized tax benefits of which $ 4.9 million would affect its effective income tax rate if recognized.

The Company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense.

6 unchanged sentences

For safety reasons, production in the affected area was temporarily suspended while remediation activities were performed.

During this period, the Company shifted certain production activities to other facilities to mitigate the operational impact.

During that period, the Company shifted certain production activities to other facilities to mitigate the operational impact.

The Company maintains insurance coverage for property damage, as well as business interruption losses, including lost profits and certain incremental costs incurred as a result of the event.

The Company is actively working with its insurance carrier and claims adjusters and continues to gather all costs and losses incurred as part of the event.

The Company does not expect this matter to have a material effect on its financial position, results of operations, or cash flows, as the majority of the related costs and losses are expected to be recoverable under its insurance coverage.

During the second quarter of 2026, the Company submitted an insurance claim for property damage and business interruption losses related to the event, and the Company continues to work with its insurance carrier through the claims process.

The Company does not expect this matter to have a material effect on its financial position, results of operations, or cash flows, as the related costs and losses are expected to be recoverable under its insurance coverage.

The Company maintained a commercial relationship with a supply-chain service provider (the Provider) in connection with the Company’s business in China.

3 unchanged sentences

As of December 31, 2025, the Company terminated the arrangement with the Provider.

Existing loan balances will be paid down throughout 2026 with no new loans offered.

All existing loans have been paid off as of June 30, 2026, with no new loans offered.

The Provider is required to indemnify the Company for any losses the Company would incur in the event of an inventory repurchase under these arrangements.

Potential losses under the repurchase arrangements represent the difference between the repurchase price and net proceeds from the resale of the product plus costs incurred in the process, less related distributor rebates.

The Company’s reserves for estimated losses under these repurchase arrangements were immaterial as of March 31, 2026 and December 31, 2025.

Table of Content s

The Company’s reserves for estimated losses under these repurchase arrangements were immaterial as of June 30, 2026 and December 31, 2025.

Changes in Accumulated Other Comprehensive Loss by Component

7 unchanged sentences

Balance at beginning of period 1.1 ( 0.7 )

Other comprehensive (losses) gains before reclassifications 0.5 ( 0.3 )

Realized (gains) losses on derivatives (net of income tax provision (benefit) of $ 0.2 and $ 0.1 in 2026 and 2025, respectively)

Balance at end of period 1.3 ( 0.9 )

Pension liability

Balance at beginning of period ( 7.1 ) ( 6.0 )

Amounts reclassified from accumulated other comprehensive loss:

Balance at end of period ( 7.1 ) ( 5.9 )

Accumulated other comprehensive loss, end of period $ ( 104.2 ) $ ( 95.9 )

(dollars in millions) Six Months Ended

Cumulative foreign currency translation

Balance at beginning of period $ ( 91.2 ) $ ( 104.3 )

Other comprehensive (loss) gain before reclassifications ( 7.2 ) 15.2

Balance at end of period ( 98.4 ) ( 89.1 )

Unrealized net (loss) gain on cash flow derivatives

Balance at beginning of period ( 0.2 ) ( 1.5 )

Other comprehensive gains before reclassifications 2.2 0.4

6 unchanged sentences

Accumulated other comprehensive loss, end of period $ ( 104.2 ) $ ( 95.9 )

Subsequent Event

In April 2026 the Company approved and announced a restructuring plan in its North America water treatment business designed to increase operational efficiency and improve profitability and growth through footprint optimization as well as brand rationalization.

In the second quarter, the Company estimates that it will recognize a restructuring charge of approximately $ 20 million, the majority of which is due to non-cash impairment expenses.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements