What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-01-07 compared with 2025-10-09 · 110 added, 92 removed, 317 unchanged (39% of the section changed)

44 unchanged sentences

See Note 14 for additional information.

On October 31, 2025, the Company announced the separation of its Chief Executive Officer.

In connection with this separation agreement, the Board of Directors approved the accelerated vesting of certain outstanding unvested restricted stock awards and performance share unit awards previously granted.

As a result of this modification, the Company recognized incremental stock-based compensation expense of $2.1 million during the third quarter of fiscal 2026, representing the fair value of the awards that would have otherwise vested over the remaining service periods.

This amount is included in SG&A expenses in the Consolidated Results of Operations.

The following selected financial data should be read in conjunction with the Company’s Form 10-K for the year ended March 1, 2025, and the consolidated financial statements, including the notes to consolidated financial statements, included therein.

3 unchanged sentences

Three Months Ended % of Net Sales

(in thousands, except percentages) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024

(in thousands, except percentages) November 29, 2025 November 30, 2024 November 29, 2025 November 30, 2024

Net sales $ 348,563 $ 341,344 100.0 % 100.0 %

9 unchanged sentences

Effective tax rate 31.4 % 24.1 %

Six Months Ended % of Net Sales

(in thousands, except percentages) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024

Nine Months Ended % of Net Sales

(in thousands, except percentages) November 29, 2025 November 30, 2024 November 29, 2025 November 30, 2024

Net sales $ 1,053,379 $ 1,015,300 100.0 % 100.0 %

9 unchanged sentences

Effective tax rate 31.1 % 24.8 %

Comparison of Second Quarter Fiscal 2026 to Second Quarter Fiscal 2025

• Consolidated net sales increased 4.6%, to $358.2 million, driven by $24.9 million of inorganic sales contribution from the acquisition of UW Solutions and higher volume in Architectural Services.

This was partially offset by lower volume and price in Architectural Glass and unfavorable product mix in Architectural Metals.

• Gross margin decreased to 23.1%, compared to 28.4%, primarily due to lower price and volume, unfavorable mix, and higher material, tariff, and health insurance costs, partially offset by lower incentive compensation expense.

Comparison of Third Quarter Fiscal 2026 to Third Quarter Fiscal 2025

• Consolidated net sales increased 2.1%, to $348.6 million, driven by $18.4 million of inorganic sales contribution from the acquisition of UW Solutions and favorable product mix, partially offset by lower volume.

• Gross margin decreased to 23.8%, compared to 26.1%, primarily due to impact of lower volume and price, higher aluminum, restructuring and health insurance costs, partially offset by lower incentive compensation expense.

• SG&A expense as a percent of net sales decreased to 16.7%, compared to 17.7%.

The decrease was primarily due to lower incentive compensation expense, partially offset by higher amortization expense and integration costs related to the UW Solutions acquisition.

The decrease was primarily due to lower acquisition-related costs and lower incentive compensation expense, partially offset by higher amortization expense related to the UW Solutions acquisition and incremental stock-based compensation expense related to CEO transition costs.

• Operating income declined to $24.9 million from $28.6 million, and operating margin decreased 130 basis points to 7.1%.

• Adjusted EBITDA decreased to $44.4 million compared to $53.1 million and adjusted EBITDA margin decreased to 12.4% compared to 15.5%.

The decrease in adjusted EBITDA margin was primarily driven by lower price and volume, unfavorable mix and higher material, tariff, and health insurance costs, partially offset by lower incentive compensation expense.

• Interest expense increased to $4.1 million, primarily due to higher debt resulting from the acquisition of UW Solutions.

• Adjusted EBITDA increased to $46.1 million compared to $45.8 million and adjusted EBITDA margin decreased to 13.2% compared to 13.4%.

The decrease in adjusted EBITDA margin was primarily driven by lower volume and price, higher aluminum and health insurance costs, partially offset by lower incentive compensation expense and benefits from cost savings related to Project Fortify Phase 2.

• Interest expense increased to $3.2 million, primarily due to a higher average debt balance resulting from the acquisition of UW Solutions in November 2024.

• Other income was $2.5 million compared to $0.1 million.

The change was due to a $4.6 million gain related to a New Market Tax Credit recognized in the current period.

The change was due to a $2.1 million gain related to a New Markets Tax Credit recognized in the current period.

• Income tax expense as a percentage of earnings before income tax was 31.4%, compared to 24.1%.

The decrease in the effective tax rate was primarily due to a decrease in tax expense for discrete items.

The increase in the effective tax rate was primarily due to an increase in tax expense for discrete items.

• Net earnings were $16.5 million compared to $21.0 million.

Comparison of First Six Months Fiscal 2026 to First Six Months Fiscal 2025

• Consolidated net sales increased 4.6%, to $704.8 million, primarily driven by $46.6 million of inorganic sales contribution from the acquisition of UW Solutions and higher volume in Architectural Services.

This was partially offset by lower price in Architectural Glass and a less favorable product mix in Architectural Metals.

• Gross margin decreased to 22.4%, compared to 29.1%, primarily due to lower price and volume, unfavorable mix, and higher material, tariff, health insurance costs, and restructuring charges, partially offset by lower incentive compensation expenses.

Comparison of First Nine Months Fiscal 2026 to First Nine Months Fiscal 2025

• Consolidated net sales increased 3.8%, to $1.1 billion, primarily driven by $65.3 million of inorganic sales contribution from the acquisition of UW Solutions.

This was partially offset by lower volume and price as a result of lower demand.

• Gross margin decreased to 22.9%, compared to 28.1%, primarily due to lower price and volume, higher aluminum, restructuring and health insurance costs, partially offset by lower incentive compensation expenses.

• SG&A expenses as a percent of net sales increased to 17.3%, compared to 17.1%.

The increase was primarily due to increased restructuring charges and increased amortization expense associated with the UW Solutions transaction, partially offset by lower incentive compensation expense.

The increase was primarily due to increased restructuring charges related to Project Fortify Phase 2, increased amortization expense associated with the UW Solutions transaction and incremental stock-based compensation expense related to CEO transition costs, partially offset by lower transaction-related costs and lower incentive compensation expense.

• Operating income declined to $58.7 million from $112.0 million, and operating margin decreased 540 basis points to 5.6%.

• Adjusted EBITDA decreased to $124.9 million compared to $151.5 million and adjusted EBITDA margin decreased to 11.9% compared to 14.9%.

The decrease in adjusted EBITDA margin was primarily driven by lower price and volume, a less favorable mix and higher material, tariff and health insurance costs, partially offset by lower incentive compensation expense.

• Interest expense, net increased to $7.9 million, primarily due to increased debt resulting from the acquisition of UW Solutions.

The decrease in adjusted EBITDA margin was primarily driven by lower price and volume, higher material and health insurance costs, partially offset by lower incentive compensation expense and cost savings as a result of Project Fortify Phase 2.

• Interest expense, net increased to $11.1 million, primarily due to a higher average debt balance resulting from the acquisition of UW Solutions.

• Other income was $6.9 million compared to $0.5 million.

The change was driven by a $4.6 million gain from a New Market Tax Credit recognized in the current period.

The change was driven by a $6.7 million gain from New Markets Tax Credits.

• Income tax expense as a percentage of earnings before income tax was 31.1%, compared to 24.8% for the same period last year.

The increase in the effective tax rate was primarily due to lower earnings before income taxes, partially offset by a decrease in tax expense for discrete items.

• Net earnings was $21.0 million compared to $61.6 million.

The increase in the effective tax rate was primarily due to increases in tax expense for discrete items.

• Net earnings were $37.5 million compared to $82.6 million.

Segment Analysis

1 unchanged sentence

Each of our four segments have distinct economic characteristics, including products and services provided, production processes and varying ranges in performance and results.

We evaluate the performance of our segments based on segment net sales and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).

Our CEO is our chief operating decision maker (CODM).

We evaluate the performance of our segments based on segment net sales and adjusted EBITDA.

Our CEO is our CODM.

The CODM uses these measurements to assess segment performance and make decisions about the allocation of operating and capital resources by analyzing recent results, trends, and variances of each segment in relation to forecasts and historical performance.

1 unchanged sentence

The following table presents net sales, adjusted EBITDA and adjusted EBITDA margin by segment and the consolidated total.

Three Months Ended Six Months Ended

(In thousands, except percentages) August 30, 2025 August 31, 2024 % Change August 30, 2025 August 31, 2024 % Change

Three Months Ended Nine Months Ended

(In thousands, except percentages) November 29, 2025 November 30, 2024 % Change November 29, 2025 November 30, 2024 % Change

Segment net sales

21 unchanged sentences

N/M Indicates calculation not meaningful.

The following table summarizes the impact that different items had on our net sales for the second quarter fiscal 2026.

All net sales for the second quarter of fiscal 2025 were organic.

Three Months Ended August 30, 2025

The following table summarizes the impact that different items had on our net sales for the third quarter fiscal 2026.

All net sales for the third quarter of fiscal 2025 were organic.

Three Months Ended November 29, 2025

(In thousands, except percentages) Architectural Metals

15 unchanged sentences

— % — % — % 55.3 % — % 5.4 %

Six Months Ended August 30, 2025

Nine Months Ended November 29, 2025

(In thousands, except percentages) Architectural Metals

19 unchanged sentences

Architectural Metals

Comparison of Second Quarter Fiscal 2026 to Second Quarter Fiscal 2025

• Net sales were $140.9 million, compared to $141.4 million, primarily reflecting a less favorable mix, partially offset by higher volume and price.

Comparison of Third Quarter Fiscal 2026 to Third Quarter Fiscal 2025

• Net sales were $124.4 million, compared to $138.0 million, primarily due to lower volume, partially offset by favorable price and product mix.

• Adjusted EBITDA was $16.8 million, or 13.5% of net sales, compared to $17.5 million, or 12.7% of net sales.

The decline in adjusted EBITDA margin was primarily driven by unfavorable mix, and higher material and tariff costs, partially offset by lower incentive compensation expense.

Comparison of First Six Months of Fiscal 2026 to First Six Months of Fiscal 2025

• Net sales were $269.6 million, compared to $274.5 million, primarily reflecting a less favorable mix and lower price, partially offset by increased volume.

The higher adjusted EBITDA margin was primarily driven by favorable productivity including cost savings related to Project Fortify Phase 2, lower incentive compensation expense, and favorable price and product mix, partially offset by lower volume.

Comparison of First Nine Months of Fiscal 2026 to First Nine Months of Fiscal 2025

• Net sales were $394.0 million, compared to $412.6 million, primarily reflecting lower volume, partially offset by increased price.

• Adjusted EBITDA was $46.9 million, or 11.9% of net sales, compared to $63.6 million, or 15.4% of net sales.

The decline in adjusted EBITDA margin was primarily driven by higher material and tariff costs as well as lower price and a less favorable mix, partially offset by lower incentive compensation costs.

The decline in adjusted EBITDA margin was primarily driven by lower volume, higher aluminum costs and less favorable product mix, partially offset by cost savings from Project Fortify Phase 2 and lower incentive compensation costs.

Architectural Services

Comparison of Second Quarter Fiscal 2026 to Second Quarter Fiscal 2025

Comparison of Third Quarter Fiscal 2026 to Third Quarter Fiscal 2025

• Net sales were $105.2 million, compared to $104.9 million, primarily due to increased volume.

• Adjusted EBITDA decreased to $5.0 million, or 5.0% of net sales, compared to $7.3 million, or 7.5% of net sales.

The decrease in adjusted EBITDA margin was primarily driven by project mix, partially offset by lower short-term incentive compensation costs.

Comparison of First Six Months of Fiscal 2026 to First Six Months of Fiscal 2025

• Net sales were $207.0 million, compared to $197.0 million, primarily due to increased volume, partially offset by an unfavorable project mix.

• Adjusted EBITDA increased to $10.2 million, or 9.7% of net sales, compared to $10.0 million, or 9.5% of net sales.

The increase in adjusted EBITDA margin was primarily driven by lower incentive compensation expense, partially offset by unfavorable project mix.

Comparison of First Nine Months of Fiscal 2026 to First Nine Months of Fiscal 2025

• Net sales were $312.2 million, compared to $302.0 million, primarily due to increased volume, partially offset by unfavorable project mix.

• Adjusted EBITDA decreased to $21.3 million, or 6.8% of net sales, compared to $23.9 million, or 7.9% of net sales.

2 unchanged sentences

Three Months Ended

(in thousands) August 30, 2025 August 31, 2024

(in thousands) November 29, 2025 November 30, 2024

Gross favorable adjustments

4 unchanged sentences

$ 3,976 $ 5,801

Six Months Ended

(in thousands) August 30, 2025 August 31, 2024

Nine Months Ended

(in thousands) November 29, 2025 November 30, 2024

Gross favorable adjustments

5 unchanged sentences

Architectural Glass

Comparison of Second Quarter Fiscal 2026 to Second Quarter Fiscal 2025

• Net sales were $72.2 million, compared to $90.1 million, primarily reflecting lower volume and price due to lower end-market demand.

Comparison of Third Quarter Fiscal 2026 to Third Quarter Fiscal 2025

• Net sales were $70.9 million, compared to $70.2 million, primarily due to increased volume and favorable mix, partially offset by lower price driven by lower end-market demand.

• Adjusted EBITDA decreased to $11.5 million, or 16.3% of net sales, compared to $13.2 million, or 18.8% of net sales.

The decline in adjusted EBITDA margin was primarily driven by lower price and volume, partially offset by lower short-term incentive compensation expense.

Comparison of First Six Months of Fiscal 2026 to First Six Months of Fiscal 2025

• Net sales were $145.5 million compared to $176.8 million, primarily reflecting lower volume due to lower end-market demand.

The decrease in adjusted EBITDA margin was primarily driven by lower price and higher material costs, partially offset by higher volume, favorable mix, and lower short-term incentive compensation expense.

Comparison of First Nine Months of Fiscal 2026 to First Nine Months of Fiscal 2025

• Net sales were $216.3 million compared to $247.0 million, primarily reflecting lower volume and price due to lower end-market demand.

• Adjusted EBITDA decreased to $36.6 million, or 16.9% of net sales, compared to $57.6 million, or 23.3% of net sales.

1 unchanged sentence

Performance Surfaces

Comparison of Second Quarter Fiscal 2026 to Second Quarter Fiscal 2025

Comparison of Third Quarter Fiscal 2026 to Third Quarter Fiscal 2025

• Net sales were $53.0 million, compared to $33.2 million, which included $18.4 million of inorganic sales contribution from the acquisition of UW Solutions and organic growth of 4.3%.

• Adjusted EBITDA was $11.9 million, or 22.5% of net sales, compared to $7.8 million, or 23.6% of net sales.

The increase in adjusted EBITDA margin was primarily driven by favorable price and volume.

Comparison of First Six Months of Fiscal 2026 to First Six Months of Fiscal 2025

The decrease in adjusted EBITDA margin was primarily driven by the dilutive impact of lower adjusted EBITDA margin from UW Solutions and unfavorable productivity, partially offset by favorable product mix and price.

Comparison of First Nine Months of Fiscal 2026 to First Nine Months of Fiscal 2025

• Net sales were $143.6 million, compared to $74.2 million, which included $65.3 million of inorganic sales contribution from the acquisition of UW Solutions and organic growth of 5.5%.

2 unchanged sentences

Corporate and Other

Comparison of Second Quarter Fiscal 2026 to Second Quarter Fiscal 2025

• Corporate and Other adjusted EBITDA expense was $4.3 million, compared to $5.2 million, primarily driven by lower incentive compensation expense, partially offset by higher health insurance costs.

Comparison of First Six Months of Fiscal 2026 to First Six Months of Fiscal 2025

• Corporate and Other adjusted EBITDA expense was $6.8 million, compared to $8.8 million, primarily driven by lower incentive compensation expense, partially offset by higher health insurance expenses.

Comparison of Third Quarter Fiscal 2026 to Third Quarter Fiscal 2025

• Corporate and Other adjusted EBITDA expense was $4.3 million, compared to $2.7 million, primarily driven by higher health insurance costs.

Comparison of First Nine Months of Fiscal 2026 to First Nine Months of Fiscal 2025

• Corporate and Other adjusted EBITDA expense was $11.0 million, compared to $11.5 million primarily due to lower incentive compensation expense, partially offset by higher health insurance costs.

Backlog represents the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which may be expected to be recognized as revenue in the future.

Backlog is most meaningful for Architectural Services due to the longer-term nature of their projects.

Backlog is most meaningful for the Architectural Services Segment due to the longer-term nature of their projects.

Backlog is not a term defined under U.S.

2 unchanged sentences

In addition to backlog, we have a substantial amount of projects with short lead times that book-and-bill within the same reporting period and are not included in backlog.

Architectural Services

As of August 30, 2025, segment backlog was approximately $792.3 million, compared to approximately $792.1 million at the end of the second quarter of fiscal 2025.

As of November 29, 2025, segment backlog in the Architectural Services segment was approximately $774.7 million, compared to approximately $742.2 million at the end of the third quarter of fiscal 2025.

Reconciliation of Non-GAAP Financial Measures

Adjusted net earnings, adjusted diluted earnings per share (adjusted diluted EPS), adjusted net earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), and adjusted EBITDA margin are supplemental non-GAAP financial measures provided by the Company to assess performance on a more comparable basis from period-to-period by excluding amounts that management does not consider part of core operating results.

Adjusted net earnings, adjusted diluted earnings per share (adjusted diluted EPS), adjusted EBITDA, and adjusted EBITDA margin are supplemental non-GAAP financial measures provided by the Company to assess performance on a more comparable basis from period-to-period by excluding amounts that management does not consider part of core operating results.

Management uses these non-GAAP measures as noted below:

7 unchanged sentences

Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended August 30, 2025

Three Months Ended November 29, 2025

(In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and Other Consolidated

8 unchanged sentences

2,537 1,864 — — 679 5,080

CEO transition costs (3)

— — — — 3,026 3,026

NMTC settlement gain (4)

3 unchanged sentences

Adjusted EBITDA margin 13.5 % 9.7 % 16.3 % 22.5 % N/M 13.2 %

Three Months Ended August 31, 2024

Three Months Ended November 30, 2024

(In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and Other Consolidated

1 unchanged sentence

Interest expense (income), net 563 (4) (121) — 606 1,044

Income tax (benefit) expense — — (31) — 10,580 10,549

Income tax expense — — 117 — 6,539 6,656

Depreciation and amortization 3,932 981 3,069 2,461 691 11,134

EBITDA 16,641 10,711 13,180 7,302 (8,011) 39,823

Acquisition-related costs (1)

— — — 526 4,542 5,068

Restructuring costs (2)

3 unchanged sentences

Adjusted EBITDA margin 12.7 % 9.5 % 18.8 % 23.6 % N/M 13.4 %

Six Months Ended August 30, 2025

Nine Months Ended November 29, 2025

(In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and Other Consolidated

8 unchanged sentences

4,363 15,870 — — 3,321 23,554

CEO transition costs (3)

— — — — 3,026 3,026

NMTC settlement gain (4)

3 unchanged sentences

Adjusted EBITDA margin 11.9 % 6.8 % 16.9 % 21.7 % N/M 11.9 %

Six Months Ended August 31, 2024

Nine Months Ended November 30, 2024

(In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and Other Consolidated

4 unchanged sentences

EBITDA 60,796 24,370 57,551 17,527 (16,978) 143,266

Acquisition-related costs (1)

— — — 526 4,542 5,068

Restructuring costs (2)

5 unchanged sentences

Restructuring costs related to Project Fortify.

Costs incurred in fiscal year 2025 were associated with Phase 1 and costs incurred in fiscal year 2026 are associated with Phase 2.

Gain related to the settlement of a New Market Tax Credit transaction.

Costs incurred in fiscal 2025 were associated with Phase 1 and costs incurred in fiscal 2026 are associated with Phase 2.

Transition costs related to departure of the Chief Executive Officer during the third quarter of fiscal 2026.

Gain related to the settlement of a New Markets Tax Credit transactions.

Reconciliation of Non-GAAP Financial Measures

Adjusted Net Earnings and Adjusted Diluted Earnings Per Share

Three Months Ended Six Months Ended

(In thousands) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024

Three Months Ended Nine Months Ended

(In thousands) November 29, 2025 November 30, 2024 November 29, 2025 November 30, 2024

Net earnings $ 16,549 $ 20,989 $ 37,511 $ 82,566

3 unchanged sentences

5,080 912 23,554 3,213

CEO transition costs (3)

3,026 — 3,026 —

NMTC settlement gain (4)

3 unchanged sentences

Adjusted net earnings $ 22,030 $ 26,112 $ 54,981 $ 89,426

Three Months Ended Six Months Ended

August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024

Three Months Ended Nine Months Ended

November 29, 2025 November 30, 2024 November 29, 2025 November 30, 2024

Diluted earnings per share $ 0.77 $ 0.96 $ 1.74 $ 3.76

3 unchanged sentences

0.24 0.04 1.09 0.15

CEO transition costs (3)

0.14 — 0.14 —

NMTC settlement gain (4)

6 unchanged sentences

Restructuring costs related to Project Fortify.

Costs incurred in fiscal year 2025 were associated with Phase 1 and costs incurred in fiscal year 2026 are associated with Phase 2.

Gain related to the settlement of a New Market Tax Credit transaction

Costs incurred in fiscal 2025 were associated with Phase 1 and costs incurred in fiscal 2026 are associated with Phase 2.

Transition costs related to departure of the Chief Executive Officer during the third quarter of fiscal 2026.

Gain related to the settlement of a New Markets Tax Credit transactions.

Income tax impact reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred.

2 unchanged sentences

Operating Activities.

Net cash provided by operating activities was $37.3 million for the first six months of fiscal 2026, compared to $64.1 million in the prior year period.

The decrease in net cash provided by operating activities was primarily driven by lower net earnings and an increased cash used for working capital, including a net payment of $13.7 million for the settlement of an arbitration award.

Net cash provided by operating activities was $66.6 million for the first nine months of fiscal 2026, compared to $95.1 million in the prior year period.

The decrease in net cash provided by operating activities was primarily driven by lower net earnings and increased cash used for working capital, which included a net payment of $13.7 million for the settlement of an arbitration award during our first fiscal quarter.

This was partially offset by lower taxes paid as a result of the One Big Beautiful Bill Act tax legislation.

Investing Activities.

Net cash used in investing activities was $10.9 million for the first six months of fiscal 2026, compared to $15.5 million in the prior-year period.

The net cash used in investing activities was primarily related to capital expenditures in both periods.

Net cash used in investing activities was $15.8 million for the first nine months of fiscal 2026, compared to $257.1 million in the prior-year period.

The net cash used in investing activities was primarily related to capital expenditures in the current year period while the prior year period included a net use of cash for the acquisition of UW Solutions of $233.1 million.

Financing Activities.

Net cash used in financing activities was $29.1 million for the first six months of fiscal 2026, compared to $34.6 million in the prior year period.

The decrease in net cash used in financing activities was primarily driven by a reduction in repurchases of common stock.

Net cash used in financing activities was $51.9 million for the first nine months of fiscal 2026, compared to $169.0 million of cash provided by financing activities in the prior year period.

The prior year period included $250.0 million in proceeds from financing for the acquisition of UW Solutions.

The prior year period also included $15.1 million for repurchases of common stock.

Additional Liquidity Considerations.

1 unchanged sentence

On July 19, 2024, we entered into a Credit Agreement (the Credit Agreement) with Bank of America, N.A., as administrative agent, and other lenders.

The Credit Agreement provides for an unsecured senior credit facility in an aggregate principal amount of up to $700.0 million, in which commitments were made through a $450.0 million, five-year revolving credit facility

and a committed $250.0 million delayed draw term loan facility.

Borrowings under the revolving credit facility can be in Canadian dollars (CAD) limited to $25.0 million USD.

3 unchanged sentences

As a result of the execution of the Credit Agreement, in the second quarter of fiscal 2025, we recognized a loss on extinguishment of debt within interest expense of $0.5 million for the write-off of unamortized financing fees related to the previous revolving credit facility.

Additionally, we capitalized $3.0 million of lender fees and $0.8 million of third-party fees incurred in connection with the Credit Agreement, which were recorded as other non-current assets and are being amortized over the term of the credit facility as interest expense.

Additionally, we capitalized $3.0 million of lender fees and $0.8 million of third-party fees

incurred in connection with the Credit Agreement, which were recorded as other non-current assets and are being amortized over the term of the credit facility as interest expense.

The Credit Agreement contains two maintenance financial covenants that require our Consolidated Leverage Ratio (as defined in the Credit Agreement) to be less than 3.50 and our Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) to exceed 3.00.

At August 30, 2025, we were in compliance with all covenants as defined under the terms of the Credit Agreement.

At November 29, 2025, we were in compliance with all covenants as defined under the terms of the Credit Agreement.

The Credit Agreement also contains an acquisition “holiday”.

8 unchanged sentences

On November 4, 2024, as part of the acquisition of UW Solutions, and for working capital and general corporate purposes, we executed a drawdown against the delayed draw term loan facility for $250.0 million.

Outstanding borrowings under the term loan facility were $215.0 million as of August 30, 2025.

Outstanding borrowings under the revolving credit facility were $55.0 million as of August 30, 2025.

At August 30, 2025, we had a total of $2.6 million of ongoing letters of credit related to the senior credit facility, construction contracts and insurance collateral that expire in fiscal year 2026 and reduce borrowing capacity under the revolving credit facility.

As of August 30, 2025, the amount available for revolving borrowings was $392.4 million.

Outstanding borrowings under the term loan facility were $215.0 million as of November 29, 2025.

Outstanding borrowings under the revolving credit facility were $40.0 million as of November 29, 2025.

At November 29, 2025, we had a total of $2.6 million of ongoing letters of credit related to the senior credit facility, construction contracts and insurance collateral that expire in fiscal 2027 and reduce borrowing capacity under the revolving credit facility.

As of November 29, 2025, the amount available for revolving borrowings was $407.4 million.

We acquire the use of certain assets through operating leases, such as property, manufacturing equipment, vehicles and other equipment.

Future payments for such leases, excluding leases with initial terms of one year or less, were $69.4 million at August 30, 2025, with $8.5 million payable during the remainder of fiscal 2026.

As of August 30, 2025, we had $15.5 million of open purchase obligations, of which payments totaling $5.2 million are expected to become due during the remainder of fiscal 2026.

Future payments for such leases, excluding leases with initial terms of one year or less, were $63.2 million at November 29, 2025, with $3.9 million payable during the remainder of fiscal 2026.

As of November 29, 2025, we had $16.4 million of open purchase obligations, of which payments totaling $2.7 million are expected to become due during the remainder of fiscal 2026.

These purchase obligations primarily relate to raw material commitments and capital expenditures and are not expected to impact future liquidity, as amounts should be recovered through customer billings.

We expect to make contributions of $0.4 million to our defined-benefit pension plans in fiscal 2026, which will equal or exceed our minimum funding requirements.

As of August 30, 2025, we had reserves of $6.2 million for unrecognized tax benefits.

As of November 29, 2025, we had reserves of $5.9 million for unrecognized tax benefits.

We are unable to reasonably estimate in which future periods the remaining unrecognized tax benefits will ultimately be settled.

We are required, in the ordinary course of business, to provide surety or performance bonds that commit payments to our customers for any non-performance.

At August 30, 2025, $1.2 billion of these types of bonds were outstanding, of which $293.7 million is in our backlog.

At November 29, 2025, $1.2 billion of these types of bonds were outstanding, of which $253.0 million is in our backlog.

These bonds have expiration dates that align with completion of the purchase order or contract.

13 unchanged sentences

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 2. Management’s Discussion and Analysis