What changed in this filing

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Item 1. Financial Statements

2026-08-12 compared with 2026-05-13 · 179 added, 170 removed, 478 unchanged (42% of the section changed)

2 unchanged sentences

Consolidated Condensed Balance Sheets

April 4, 2026 with Comparative Figures for December 31, 2025

July 4, 2026 with Comparative Figures for December 31, 2025

(In thousands)

April 4, 2026 December 31, 2025

July 4, 2026 December 31, 2025

Current Assets:

36 unchanged sentences

See notes to Consolidated Condensed Financial Statements.

1 Prior-period Shareholders’ Equity balances have been adjusted to reflect the impact of the twenty percent Class B stock distribution to shareholders of record on June 15, 2026, with no impact on Total Shareholders’ Equity.

ASTRONICS CORPORATION

Consolidated Condensed Statements of Operations

Three Months Ended April 4, 2026 with Comparative Figures for 2025

Three and Six Months Ended July 4, 2026 with Comparative Figures for 2025

(In thousands, except per share data)

Three Months Ended

April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Sales $ 490,576 $ 410,614 $ 259,957 $ 204,678

7 unchanged sentences

Income Before Income Taxes 62,639 12,025 37,854 1,851

(Benefit from) Provision for Income Taxes ( 755 ) 646

Provision for Income Taxes 2,039 1,183 2,794 537

Net Income $ 60,600 $ 10,842 $ 35,060 $ 1,314

3 unchanged sentences

See notes to Consolidated Condensed Financial Statements.

1 All per share information have been adjusted to reflect the impact of the twenty percent Class B stock distribution to shareholders of record on June 15, 2026.

ASTRONICS CORPORATION

Consolidated Condensed Statements of Comprehensive Income

Three Months Ended April 4, 2026 with Comparative Figures for 2025

Three and Six Months Ended July 4, 2026 with Comparative Figures for 2025

(In thousands)

Three Months Ended

April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Net Income $ 60,600 $ 10,842 $ 35,060 $ 1,314

3 unchanged sentences

Retirement Liability Adjustment – Net of Tax

255 ( 472 ) 128 ( 236 )

Total Other Comprehensive (Loss) Income ( 1,698 ) 2,459 ( 670 ) 1,943

3 unchanged sentences

Consolidated Condensed Statements of Cash Flows

Three Months Ended April 4, 2026 with Comparative Figures for 2025

Three Months Ended

(In thousands) April 4, 2026 March 29, 2025

Six Months Ended July 4, 2026 with Comparative Figures for 2025

Six Months Ended

(In thousands) July 4, 2026 June 28, 2025

Cash Flows from Operating Activities:

8 unchanged sentences

Operating Lease Non-cash Expense 2,806 3,174

Non-Cash Litigation Provision Adjustment — 6,228

Simplification Initiative-related Non-cash Charges — 6,229

Other 1,223 ( 601 )

22 unchanged sentences

Effect of Exchange Rates on Cash ( 359 ) 1,280

(Decrease) Increase in Cash and Cash Equivalents and Restricted Cash ( 6,313 ) 7,520

Decrease in Cash and Cash Equivalents and Restricted Cash ( 9,164 ) ( 4,968 )

Cash and Cash Equivalents and Restricted Cash at Beginning of Period 18,180 18,428

1 unchanged sentence

Supplemental Disclosure of Cash Flow Information

Non-Cash Investing Activities:

Capital Expenditures in Accounts Payable $ 425 $ —

Capital Expenditures in Accounts Payable (Non-Cash Investing Activities) $ 422 $ —

Interest Paid $ 3,972 $ 2,967

Income Taxes Paid, Net of Refunds $ 195 $ 827

Income Taxes Paid, Net $ 2,110 $ 12,848

See notes to Consolidated Condensed Financial Statements.

1 unchanged sentence

Consolidated Condensed Statements of Shareholders’ Equity

Three Months Ended April 4, 2026 with Comparative Figures for 2025

Three and Six Months Ended July 4, 2026 with Comparative Figures for 2025

(In thousands)

Three Months Ended

April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Beginning of Period $ 345 $ 329 $ 348 $ 333

10 unchanged sentences

Tax Withholding Related to Issuance of RSUs ( 5,441 ) ( 1,730 ) — —

Cash Paid in Lieu of Fractional Shares from Stock Distribution ( 135 ) — ( 135 ) —

End of Period 4,070 146,250 4,070 146,250

13 unchanged sentences

See notes to Consolidated Condensed Financial Statements.

ASTRONICS CORPORATION

Consolidated Condensed Statements of Shareholders’ Equity, Continued

Three Months Ended April 4, 2026 with Comparative Figures for 2025

Three and Six Months Ended July 4, 2026 with Comparative Figures for 2025

(In thousands)

Three Months Ended

(Shares) April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

(Shares) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Beginning of Period 34,464 32,871 34,786 33,301

11 unchanged sentences

See notes to Consolidated Condensed Financial Statements.

1 All share information have been adjusted to reflect the impact of the twenty percent Class B stock distribution to shareholders of record on June 15, 2026.

ASTRONICS CORPORATION

Notes to Consolidated Condensed Financial Statements

April 4, 2026

1) Basis of Presentation

4 unchanged sentences

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

On June 1, 2026, Astronics Corporation announced a twenty percent stock distribution of Class B Stock (the “Class B stock distribution”) to holders of both Common and Class B Stock.

Stockholders received one share of Class B Stock for every five shares of Common and Class B Stock held on the record date of June 15, 2026, with an ex-dividend date of June 15, 2026.

All prior-period share or per share amounts presented herein have been retroactively adjusted to reflect the Class B stock distribution.

The number of shares underlying, and the exercise price of outstanding stock options and other equity awards were proportionately adjusted to reflect the Class B stock distribution.

Operating Results

The results of operations for any interim period are not necessarily indicative of results for the full year.

Operating results for the three months ended April 4, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

Operating results for the six months ended July 4, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

The balance sheet on December 31, 2025, has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S.

12 unchanged sentences

Envoy Aerospace is included in our Aerospace segment.

The total purchase price was approximately $ 8.3 million, net of cash acquired and the estimated closing adjustment.

Of the purchase price, $ 4.5 million was paid at the closing date.

Payments of $ 2.0 million and $ 1.8 million will become payable by the Company following the first and second anniversary of the closing date, respectively, based on the achievement of certain milestones.

The total purchase price was approximately $ 8.3 million, net of cash acquired and the closing adjustment.

Of the purchase price, $ 4.5 million was paid at the closing date and $ 2.0 million was paid on the first anniversary of the closing date which was reflected as an outflow from financing activities in the Consolidated Condensed Statement of Cash Flows.

A payment of $ 1.8 million becomes payable by the Company following the second anniversary of the closing date based on the achievement of certain milestones.

On October 13, 2025, the Company acquired all of the issued and outstanding capital stock of Bühler Motor Aviation (“BMA”), located in Uhldingen-Mühlhofen, Germany.

4 unchanged sentences

Restricted Cash

Under the provisions of the ABL Revolving Credit Facility (as defined and discussed below in Note 7, Long-term Debt and Notes Payable) which was terminated on October 22, 2025, the Company had a cash dominion arrangement with the banking institution for its accounts within the United States whereby daily cash receipts were contractually utilized to pay down outstanding balances on the ABL Revolving Credit Facility.

Under the provisions of the Company’s prior asset-based revolving credit facility which was terminated on October 22, 2025, the Company had a cash dominion arrangement with the banking institution for its accounts within the United States whereby daily cash receipts were contractually utilized to pay down outstanding balances on the ABL Revolving Credit Facility.

Account balances that had not yet been applied to the ABL Revolving Credit Facility were classified as restricted cash in the applicable Consolidated Condensed Balance Sheets.

following table provides a reconciliation of cash and restricted cash included in Consolidated Condensed Balance Sheets to the amounts included in the Consolidated Condensed Statements of Cash Flows.

(In thousands) April 4, 2026 March 29, 2025

Cash and Cash Equivalents $ 11,867 $ 24,805

Restricted Cash — 1,143

Total Cash and Restricted Cash Shown in Statements of Cash Flows $ 11,867 $ 25,948

Trade Accounts Receivable and Contract Assets

1 unchanged sentence

The Company regularly reviews the allowance by considering factors such as the age of the receivable balances, historical experience, credit quality, current economic conditions, and reasonable and supportable forecasts of future economic conditions that may affect a customer’s ability to pay.

The changes in allowances for estimated credit losses for the three months ended April 4, 2026 and March 29, 2025 consisted of the following:

Three Months Ended

(In thousands) April 4, 2026 March 29, 2025

The changes in allowances for estimated credit losses for the three and six months ended July 4, 2026 and June 28, 2025 consisted of the following:

Six Months Ended Three Months Ended

(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Balance at Beginning of the Period $ 847 $ 2,377 $ 1,363 $ 2,291

2 unchanged sentences

Balance at End of the Period $ 867 $ 842 $ 867 $ 842

Simplification Initiatives

In the second quarter of 2025, the Company initiated simplification activities in the Aerospace segment, including costs related to footprint rationalization and portfolio shaping.

Restructuring charges, including impairments of inventory and other long-lived assets, were recorded as a result of these simplification initiatives.

In the three and six months ended June 28, 2025, the Company recorded $ 5.8 million and $ 0.4 million in simplification initiative charges to Cost of Products Sold and Selling, General and Administrative Expenses, respectively, in the accompanying Consolidated Condensed Statements of Operations.

No such charges were recorded in the three and six months ended July 4, 2026.

Cloud Computing Arrangements

The Company incurs costs to implement cloud computing arrangements that are hosted by third-party vendors.

Implementation costs associated with cloud computing arrangements are capitalized when incurred during the application development phase.

Amortization begins when the related cloud computing solution is ready for its intended use and is calculated on a straight-line basis over the contractual term of the cloud computing arrangement.

Implementation costs associated with cloud computing arrangements are reflected in Cash from Operating Activities on the Consolidated Condensed Statements of Cash Flows in accordance with ASC Topic 350-40, Intangibles - Goodwill and Other - Internal-Use Software .

The Company capitalized implementation costs related to such arrangements of $ 5.0 million and $ 2.8 million as of April 4, 2026 and December 31, 2025, respectively, within other non-current assets in the Consolidated Condensed Balance Sheets.

Amortization expense was insignificant for the three months ended April 4, 2026 and March 29, 2025.

The Company incurs costs to implement cloud computing arrangements hosted by third-party vendors.

Implementation costs incurred during the application development phase are capitalized in accordance with ASC Topic 350-40, Intangibles—Goodwill and Other—Internal-Use Software , and are included in Other Non-Current Assets on the Consolidated Condensed Balance Sheets.

Capitalized costs are amortized on a straight-line basis over the contractual term of the arrangement, beginning when the related cloud computing solution is ready for its intended use.

Implementation costs are reflected within Cash from Operating Activities on the Consolidated Condensed Statements of Cash Flows.

Amortization expense was immaterial for the three and six months ended July 4, 2026 and June 28, 2025.

As of July 4, 2026 and December 31, 2025, the Company had capitalized implementation costs of $ 6.7 million and $ 2.8 million, respectively, which relate to one cloud computing implementation project that has not yet been placed into service;

accordingly, amortization on this project has not yet begun.

Valuation of Goodwill and Long-Lived Assets

3 unchanged sentences

Should the carrying amount exceed undiscounted projected cash flows, an impairment loss would be recognized to the extent the carrying amount exceeds fair value.

As of April 4, 2026 and March 29, 2025, the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed in the three-month periods then ended.

As of July 4, 2026 and June 28, 2025, the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed in the six-month periods then ended.

Foreign Currency Translation

The aggregate foreign currency transaction gain or loss included in operations was immaterial for the three months ended April 4, 2026 and March 29, 2025.

The aggregate foreign currency transaction gain or loss included in operations was immaterial for the three and six months ended July 4, 2026 and June 28, 2025.

New or Recent Accounting Pronouncements

We consider the applicability and impact of all ASUs.

There have been no new applicable accounting pronouncements or changes in accounting pronouncements during the three months ended April 4, 2026 as compared with the recent accounting

pronouncements described in the 2025 10-K.

There have been no new applicable accounting pronouncements or changes in accounting pronouncements during the three months ended July 4, 2026 as compared with the recent accounting pronouncements described in the 2025 10-K.

ASUs not disclosed were assessed and determined to be either not applicable or had or are expected to have minimal impact on our financial statements and related disclosures.

On April 4, 2026, we had $ 734.3 million of remaining performance obligations, which we refer to as total backlog.

On July 4, 2026, we had $ 780.6 million of remaining performance obligations, which we refer to as total backlog.

We expect to recognize approximately $ 642.2 million of our outstanding performance obligations as revenue over the next twelve months and the balance thereafter.

4 unchanged sentences

$ 54,687 $ 26,962

Ending Balance, April 4, 2026

Ending Balance, July 4, 2026

$ 56,961 $ 27,282

The increase in contract assets reflects the net impact of new revenue recognized in excess of billings exceeding billing of previously unbilled revenue during the period.

For the three months ended April 4, 2026, the increase reflects a $ 2.8 million impact to revenue from a change in estimate due to updated variable consideration.

The increase in contract liabilities reflects the net impact of new customer advances or deferred revenues recorded in excess of revenue recognized.

The Company recognized $ 6.6 million and $ 11.6 million during the three months ended April 4, 2026 and March 29, 2025, respectively, in revenues that were included in the contract liability balance at the beginning of the period.

During the three and six months ended July 4, 2026, the Company recognized $ 12.7 million and $ 13.9 million, respectively, in revenues that were included in the contract liability balance at the beginning of the period.

During the three and six months ended June 28, 2025, the Company recognized $ 9.9 million and $ 17.8 million, respectively, in such revenues.

The Company recognizes an asset for certain, material costs to fulfill a contract if it is determined that the costs relate directly to a contract or an anticipated contract that can be specifically identified, generate or enhance resources that will be used in satisfying performance obligations in the future, and are expected to be recovered.

3 unchanged sentences

Should future orders not materialize or it is determined the costs are no longer probable of recovery, the capitalized costs are written off.

The Company’s capitalized fulfillment costs amounted to $ 6.3 million and $ 6.0 million on April 4, 2026 and December 31, 2025, respectively.

Amortization of fulfillment costs recognized within Cost of Products Sold was $ 0.1 million and $ 3.3 million for the three months ended April 4, 2026 and March 29, 2025, respectively.

The Company’s capitalized fulfillment costs amounted to $ 6.9 million and $ 6.0 million on July 4, 2026 and December 31, 2025, respectively.

Amortization of fulfillment costs recognized within Cost of Products Sold was $ 0.1 million and $ 0.2 million for the three and six months ended July 4, 2026, respectively, and $ 0.1 million and $ 3.4 million for the three and six months ended June 28, 2025, respectively.

Beginning in the current year, the Company reorganized its product line structure to align with changes in internal reporting.

Prior‑period disaggregated revenue information has been recast to conform to the current‑period presentation, including all prior years presented.

The Company’s updated disaggregation of revenue by product lines is consistent with the information used by the Chief Operating Decision Maker (“CODM”) to evaluate operating performance and allocate resources.

There was no impact on total revenue as a result of this change.

1 unchanged sentence

The following table presents our revenue disaggregated by Market Segments for the periods indicated:

Three Months Ended

(In thousands) April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Aerospace Segment

5 unchanged sentences

49,052 33,613 27,603 18,370

4,502 7,577 2,052 2,250

Aerospace Total 451,112 385,001 237,292 193,626

5 unchanged sentences

The following table presents our revenue disaggregated by Product Lines for the periods indicated:

Three Months Ended

(In thousands) April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

Recast Recast

(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Aerospace Segment

10 unchanged sentences

Lighting and Safety remains consistent and Structures is now reported within Other Aerospace revenue.

The following table presents our revenue disaggregated by Product Lines for the fiscal years ended December 31, 2025 and 2024 as follows:

Recast Recast

(In thousands) 2025 2024

Aerospace Segment

Inflight Entertainment & Connectivity $ 434,239 $ 383,679

Lighting & Safety 216,583 188,355

Flight Critical Electrical Power 73,706 68,368

Seat Motion 47,242 35,229

Other 25,549 31,053

Aerospace Total 797,319 706,684

Test Systems 64,809 88,742

Total $ 862,128 $ 795,426

The recast of prior‑period information does not affect the Company’s reportable segments or the measurement of segment profit or loss.

For the six months ended July 4, 2026, revenue in the Flight Critical Electrical Power product line includes $ 2.6 million related to performance obligations satisfied in prior periods due to a change in estimate of variable consideration.

3) Inventories

1 unchanged sentence

( In thousands )

April 4, 2026 December 31, 2025

July 4, 2026 December 31, 2025

Finished Goods

7 unchanged sentences

(In thousands)

April 4, 2026 December 31, 2025

July 4, 2026 December 31, 2025

$ 8,869 $ 8,902

9 unchanged sentences

The following table summarizes acquired intangible assets as follows:

April 4, 2026 December 31, 2025

July 4, 2026 December 31, 2025

(In thousands) Weighted

11 unchanged sentences

Amortization expense for acquired intangibles is summarized as follows:

Three Months Ended

Six Months Ended Three Months Ended

(In thousands)

April 4, 2026 March 29, 2025

July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Amortization Expense

3 unchanged sentences

2026 $ 11,312

The following table summarizes the changes in the carrying amount of goodwill for the three months ended April 4, 2026:

The following table summarizes the changes in the carrying amount of goodwill for the six months ended July 4, 2026:

(In thousands) December 31, 2025 Acquisition Adjustments Foreign

April 4, 2026

Aerospace $ 41,288 $ 1,048 $ 530 $ 42,866

2 unchanged sentences

7) Long-term Debt and Notes Payable

Under the terms of the Company’s former asset-based revolving credit facility (the “ABL Revolving Credit Facility”), the Company paid interest on the unpaid principal amount of the ABL Revolving Credit Facility at a rate equal to SOFR plus a term SOFR adjustment in the amount of 0.10 % per annum (which collectively shall be at least 1.00 %) plus an applicable margin ranging from 2.75 % to 3.25 % determined based upon the Company’s Excess Availability (as defined in the ABL Revolving Credit Facility).

The Company was required to pay a quarterly commitment fee under the ABL Revolving Credit Facility on undrawn revolving credit commitments in an amount equal to 0.25 % or 0.375 % based on the Company’s average excess availability under the ABL Revolving Credit Facility.

The maturity date of borrowings under the ABL Revolving Credit Facility was July 11, 2027.

On October 22, 2025, the Company entered into a $ 300.0 million senior secured, cash flow-based revolving credit facility (the “Revolving Credit Facility”).

The Revolving Credit Facility replaced the Company’s ABL Revolving Credit Facility, which was terminated on October 22, 2025.

Revolving Credit Facility

On October 22, 2025, the Company entered into a $ 300.0 million senior secured, cash flow-based revolving credit facility (the “Revolving Credit Facility”), which replaced the Company’s prior asset-based revolving credit facility, which was terminated.

The scheduled maturity date for the Revolving Credit Facility is October 16, 2030.

Under the terms of the Revolving Credit Facility, the Company pays interest on the unpaid principal amount outstanding under the Revolving Credit Facility at a rate equal to Term SOFR (as defined in the Revolving Credit Facility) plus an applicable margin ranging from 1.25 % to 2.125 % determined based upon the Company’s Total Net Debt Leverage Ratio (as defined in the Revolving Credit Facility).

The Company pays a quarterly commitment fee under the Revolving Credit Facility on unused Revolving Commitments ranging from 0.20 % to 0.35 % determined based upon the Company’s Total Net Debt Leverage Ratio.

Pursuant to the Revolving Credit Facility, the Company is subject to a total leverage ratio covenant that requires that the Company’s Total Net Debt Leverage Ratio may not exceed 4.50 to 1.00.

The Company is also subject to a consolidated interest coverage ratio covenant that requires that the Company’s Consolidated Interest Coverage Ratio (as defined in the Revolving Credit Facility) may not be less than 3.50 to 1.00 and a secured net debt leverage ratio covenant that requires that the Company’s Secured Net Debt Leverage Ratio (as defined in the Revolving Credit Facility) may not exceed 3.00 to 1.00.

As of April 4, 2026, the Company was in compliance with these covenants.

There was $ 85.0 million outstanding on the Revolving Credit Facility and there remained $ 212.8 million available for future borrowings, net of outstanding letters of credit on both April 4, 2026 and December 31, 2025.

The Revolving Credit Facility has an accordion feature, which allows the Company to request incremental commitments of up to $ 100.0 million plus additional incremental amounts so long as maximum leverage requirements are met.

Debt issuance cost amortization expense was $ 0.6 million and $ 0.6 million for the three months ended April 4, 2026 and March 29, 2025, respectively.

Under the terms of the Revolving Credit Facility, the Company pays interest on the unpaid principal amount outstanding at a rate equal to Term SOFR (as defined in the Revolving Credit Facility) plus an applicable margin ranging from 1.25 % to 2.125 %, determined based upon the Company’s Total Net Debt Leverage Ratio (as defined in the Revolving Credit Facility).

The Company pays a quarterly commitment fee on unused Revolving Commitments ranging from 0.20 % to 0.35 %, determined based upon the Company’s Total Net Debt Leverage Ratio.

The Revolving Credit Facility has an accordion feature that allows the Company to request incremental commitments of up to $ 100.0 million plus additional incremental amounts, subject to compliance with specified leverage requirements.

Pursuant to the Revolving Credit Facility, the Company is subject to a total net debt leverage ratio covenant that requires that the Company’s Total Net Debt Leverage Ratio may not exceed 4.50 to 1.00, a consolidated interest coverage ratio covenant that requires that the Company’s Consolidated Interest Coverage Ratio (as defined in the Revolving Credit Facility) may not be less than 3.50 to 1.00, and a secured net debt leverage ratio covenant that requires that the Company’s Secured Net Debt Leverage Ratio (as defined in the Revolving Credit Facility) may not exceed 3.00 to 1.00.

As of July 4, 2026, the Company was in compliance with these covenants.

There was $ 60.0 million outstanding and $ 237.8 million available for future borrowings, net of outstanding letters of credit, under the Revolving Credit Facility at July 4, 2026, and $ 85.0 million outstanding and $ 212.8 million available at December 31, 2025.

Unamortized deferred debt issuance costs associated with the Revolving Credit Facility were $ 2.7 million and $ 3.0 million as of July 4, 2026 and December 31, 2025, respectively, and are recorded within Other Assets.

Debt issuance cost amortization expense was $ 0.6 million for each of the three months ended July 4, 2026 and June 28, 2025, and $ 1.2 million for each of the six months ended July 4, 2026 and June 28, 2025.

All costs are amortized to interest expense over the term of the respective agreement.

Unamortized deferred debt issuance costs associated with the Revolving Credit Facility ($ 2.9 million and $ 3.0 million as of April 4, 2026 and December 31, 2025, respectively) are recorded within Other Assets.

Interest expense was $ 2.3 million and $ 3.2 million for the three months ended April 4, 2026 and March 29, 2025, respectively.

Interest expense was $ 2.3 million and $ 3.1 million for the three months ended July 4, 2026 and June 28, 2025, respectively, and $ 4.7 million and $ 6.2 million for the six months ended July 4, 2026 and June 28, 2025, respectively.

2030 Convertible Notes

On December 3, 2024, the Company issued $ 165.0 million aggregate principal amount of 5.500 % Convertible Senior Notes due 2030 (the “2030 Convertible Notes”).

The 2030 Convertible Notes bear interest at a rate of 5.500 % per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2025.

The 2030 Convertible Notes bear interest at a rate of 5.500 % per annum, payable semi-annually in arrears on March 15 and September 15 of each year.

The 2030 Convertible Notes will mature on March 15, 2030, unless earlier converted, redeemed or repurchased.

The initial conversion rate is 43.6814 shares of common stock per $1,000 principal amount of 2030 Convertible Notes, which represent the initial conversion price of $ 22.89 per share.

As adjusted for the Company’s twenty percent Class B stock distribution, the conversion rate is 53.0389 shares of common stock per $1,000 principal amount of 2030 Convertible Notes, which represents a conversion price of $ 18.85 per share.

The 2030 Convertible Notes are convertible at the option of the holders at any time on or after December 15, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date.

Upon conversion, the Company will satisfy its conversion obligations by paying and/or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election.

Beginning March 20, 2028, if the Company’s stock price has been at least 130 % of the conversion price for a specified period of time, the 2030 Convertible Notes may be

called at the option of the issuer.

Beginning March 20, 2028, if the Company’s stock price has been at least 130 % of the conversion price for a specified period of time, the 2030 Convertible Notes may be called at the option of the issuer.

Under the same conditions, the Company can elect to redeem the 2030 Convertible Notes for cash.

After the first quarter of 2025, if the Company’s stock price has been at least 130 % of the conversion price for 20 of 30 trading days ending on and including the last trading day of the immediately preceding quarter, the 2030 Convertible Notes may be called at the option of the holder.

During the fiscal quarter ended April 4, 2026, our stock price met the price trigger defined above, and therefore, holders of our 2030 Convertible Notes have the ability to convert their notes at their option at any time during the fiscal quarter ended July 4, 2026.

After the first quarter of 2025, if the Company’s stock price has been at

least 130 % of the conversion price for 20 of 30 trading days ending on and including the last trading day of the immediately preceding quarter, the 2030 Convertible Notes may be called at the option of the holder.

During the fiscal quarter ended July 4, 2026, the Company’s stock price met the price trigger defined above, and therefore holders of the 2030 Convertible Notes will have the ability to convert their notes at their option at any time during the fiscal quarter ending October 3, 2026.

2031 Convertible Notes

On September 15, 2025, the Company issued $ 225.0 million aggregate principal amount of Convertible Senior Notes due 2031 (the “2031 Convertible Notes”) for net proceeds of $ 216.7 million.

The Company used part of the net proceeds to repurchase a portion of the 2030 Convertible Notes and the remainder to enter into the capped call transactions, as further described below.

The 2031 Convertible Notes do not bear any interest and will mature on January 15, 2031, unless earlier converted, redeemed or repurchased.

The initial conversion rate is 18.2243 shares of common stock per $1,000 principal amount of 2031 Convertible Notes, which represents the initial conversion price of $ 54.87 per share.

On September 15, 2025, the Company issued $ 225.0 million aggregate principal amount of Convertible Senior Notes due 2031 (the “2031 Convertible Notes”).

The 2031 Convertible Notes do not bear interest and will mature on January 15, 2031, unless earlier converted, redeemed or repurchased.

As adjusted for the Company’s twenty percent Class B stock distribution, the conversion rate is 22.1283 shares of common stock per $1,000 principal amount of 2031 Convertible Notes, which represents a conversion price of $ 45.19 per share.

The 2031 Convertible Notes are convertible at the option of the holders at any time on or after October 15, 2030, until the close of business on the second scheduled trading day immediately preceding the maturity date.

Upon conversion, the Company will satisfy its conversion obligations by paying cash up to the aggregate principal amount of the 2031 Convertible Notes to be converted and paying and/or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the Notes being converted.

Beginning January 22, 2029, if the Company’s stock price has been at least 130 % of the conversion price for a specified period of time, the 2031 Convertible Notes may be called at the option of the issuer.

After the fourth quarter of 2025, if the Company’s stock price has been at least 130 % of the conversion price for 5 of the first 20 trading days of such fiscal quarter, the 2031 Convertible Notes may be redeemed at the option of the holder during the 30 -trading day period beginning on, and including, the 21st trading day of such quarter.

During the fiscal quarter ended April 4, 2026, our stock price met the price trigger defined above, and holders of our 2031 Convertible Notes had the ability to convert their notes at their option during the 30 -trading day period beginning on, and including, the 21st trading day of the quarter.

Upon conversion, the Company will satisfy its conversion obligations by paying cash up to the aggregate principal amount of the 2031 Convertible Notes to be converted and paying and/or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election, in respect of any amount in excess of the aggregate principal amount of the notes being converted.

After the fourth quarter of 2025, if the Company’s stock price has been at least 130 % of the conversion price for 5 of the first 20 trading days of a fiscal quarter, the 2031 Convertible Notes may be redeemed at the option of the holder during the 30 ‑trading day period beginning on, and including, the 21st trading day of such quarter.

During the fiscal quarter ended July 4, 2026, the Company’s stock price met the price trigger defined above, and holders of the 2031 Convertible Notes had the ability to convert their notes at their option during the 30‑trading day period beginning on, and including, the 21st trading day of the quarter.

No notes were converted.

Partial Repurchase of 2030 Convertible Notes

The Company used approximately $ 189.8 million of the net proceeds from the issuance of the 2031 Convertible Notes, together with approximately $ 85.0 million of borrowings under its ABL Revolving Credit Facility and approximately $ 11.0 million of cash on hand, to repurchase approximately $ 132.0 million in aggregate principal amount of outstanding 2030 Convertible Notes pursuant to privately negotiated exchange agreements entered into with certain holders of the 2030 Convertible Notes.

The total cash paid in connection with this repurchase was approximately $ 285.8 million.

The following table presents the outstanding principal amount and carrying value of the Convertible Notes as of the dates indicated:

April 4, 2026 December 31, 2025

July 4, 2026 December 31, 2025

(In thousands) Principal Unamortized Debt Issuance Costs Carrying Value Principal Unamortized Debt Issuance Costs Carrying Value

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$ 258,000 $ ( 7,681 ) $ 250,319 $ 258,000 $ ( 8,549 ) $ 249,451

The Company estimates the fair value of the convertible notes based on quoted prices for these instruments in active markets, classified as Level 1 measurements within the fair value hierarchy.

The fair value of the 2031 Convertible Notes was approximately $ 323.4 million and $ 264.1 million as of April 4, 2026 and December 31, 2025, respectively.

The fair value of the 2030 Convertible Notes was approximately $ 105.8 million and $ 84.8 million as of April 4, 2026 and December 31, 2025, respectively.

The Company estimates the fair value of the convertible notes based on quoted prices for these instruments in active markets and classifies these fair value measurements as Level 1 within the fair value hierarchy.

The fair value of the 2031 Convertible Notes was approximately $ 378.2 million and $ 264.1 million as of July 4, 2026 and December 31, 2025, respectively.

The fair value of the 2030 Convertible Notes was approximately $ 126.7 million and $ 84.8 million as of July 4, 2026 and December 31, 2025, respectively.

Capped Call Transactions

In connection with the issuance of the 2031 Convertible Notes, we entered into capped call transactions (the “Capped Calls”) with certain financial institutions.

The Capped Calls are generally expected to reduce the potential dilution to the Company’s common stock upon any conversion of the 2031 Convertible Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2031 Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap.

The cap price of the Capped Calls is initially approximately $ 83.41 per share of the

Company’s common stock and is subject to certain adjustments under the terms of the capped call transactions.

As adjusted for the Company’s twenty percent Class B stock distribution, the cap price of the Capped Calls is approximately $ 68.44 per share of the Company’s common stock and is subject to certain adjustments under the terms of the capped call transactions.

The Capped Calls expire January 15, 2031.

We used approximately $ 26.9 million of the net proceeds from the 2031 Convertible Notes to purchase the Capped Calls.

The Company used approximately $ 26.9 million of the net proceeds from the 2031 Convertible Notes to purchase the Capped Calls.

These instruments are classified as equity and recorded within additional paid-in capital in the Consolidated Condensed Statements of Changes in Stockholders’ Equity.

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Activity in the warranty accrual, which is included in Accrued Expenses and Other Current Liabilities on the Consolidated Condensed Balance Sheets, is summarized as follows:

Three Months Ended

(In thousands) April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Balance at Beginning of Period $ 20,740 $ 18,081 $ 19,525 $ 17,611

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9) Income Taxes

The effective tax rates were approximately ( 3.0 )% and 6.3 % for the three months ended April 4, 2026 and March 29, 2025, respectively.

The effective tax rates were approximately 7.4 % and 29.0 % for the three months ended and 3.3 % and 9.8 % for the six months ended July 4, 2026 and June 28, 2025, respectively.

Beginning with the 2025 tax year, U.S.

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In evaluating the need for a valuation allowance, the Company weighs all relevant positive and negative evidence, and considers among other factors, historical financial performance, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, and tax planning strategies.

After considering the losses in recent periods and cumulative pre-tax losses in the three-year period ending with the current year, the Company determined that projections of future taxable income could not be relied upon as a source of income to realize its deferred tax assets.

However, the Company is relying on a significant portion of its existing deferred tax liabilities for the realizability of deferred tax assets.

Accordingly, during the years ended December 31, 2025 and 2024, the Company determined that a portion of its deferred tax assets were not expected to be realizable in the future and the Company continues to maintain the valuation allowance against its deferred tax assets as of April 4, 2026.

After considering the losses in recent periods and cumulative pre-tax losses in the three-year period ending with the most recently completed fiscal year, the Company determined that projections of future taxable income could not be relied upon as a source of income to realize its deferred tax assets.

However, the Company is relying on a significant portion of its existing deferred tax liabilities for the realizability of deferred tax assets, which required us to reverse a portion of the valuation allowance associated with such deferred tax assets expected to be so realized.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States.

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corporate tax provisions, many of which were not in effect until 2026.

Key provisions of the Tax Act relevant to the Company’s operations include immediate expensing of certain domestic research and development expenses and domestic capital expenditures beginning in 2025 as well as changes to various U.S.

Key provisions of the OBBBA relevant to the Company’s operations include immediate expensing of certain domestic research and development expenses and domestic capital expenditures beginning in 2025 as well as changes to various U.S.

international tax provisions beginning in 2026.

These provisions of the Tax Act have favorably impacted the Company’s effective tax rate and cash tax rate for the 2025 and 2026 tax years and are expected to have favorable impacts in future years.

These provisions of the OBBBA have favorably impacted the Company’s effective tax rate and cash tax rate for the 2025 and 2026 tax years and are expected to have favorable impacts in future years.

Changes in tax laws may affect recorded deferred tax assets and deferred tax liabilities and our effective tax rate in the future and the Company is continuing to evaluate the impacts of the new legislation.

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The following table sets forth the computation of basic earnings per share:

Three months ended

(In thousands, except per share amounts) April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

(In thousands, except per share amounts) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Basic Earnings per Common Share:

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Basic Earnings per Common Share $ 1.41 $ 0.26 $ 0.82 $ 0.03

The following table sets forth the computation of diluted net income (loss) per share:

Three months ended

(In thousands, except per share amounts) April 4, 2026 March 29, 2025

The following table sets forth the computation of diluted net income per share:

Six Months Ended Three Months Ended

(In thousands, except per share amounts) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Diluted Earnings per Common Share:

Net Income - Basic $ 25,540 $ 9,528

Convertible Notes Interest Expense, Net of Tax — 1,792

Net Income - Diluted $ 60,600 $ 10,842 $ 35,060 $ 1,314

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Diluted Earnings per Common Share $ 1.31 $ 0.25 $ 0.75 $ 0.03

The above information has been adjusted to reflect the impact of the twenty percent distribution of Class B Stock for shareholders of record on June 15, 2026.

The Company includes the dilutive effect of shares issuable upon conversion of its Convertible Notes in the calculation of diluted income per share using the if-converted method.

The Company has the option for the 2030 Convertible Notes to settle the conversion value in any combination of cash or shares, and as such, the maximum number of shares issuable are included in the dilutive share count if the effect would be dilutive.

The Company excluded all impacts of the 2030 Convertible Notes from the computation of diluted earnings per share at April 4, 2026 as the effect would be anti-dilutive.

The Company excluded all impacts of the 2030 Convertible Notes from the computation of diluted earnings per share at the three and six months ended July 4, 2026 as the effect would be anti-dilutive.

The Company will settle the principal amount of the 2031 Convertible Notes by paying cash and settle the premium in any combination of cash or shares.

The Company’s average stock price during the period outstanding was above the conversion price for the 2031 Convertible Notes, therefore incremental shares were included in diluted earnings per share at April 4, 2026.

Stock options with exercise prices greater than the average market price of the underlying common shares are excluded from the computation of diluted earnings per share because they are out-of-the-money and the effect of their inclusion would be anti-dilutive.

Antidilutive shares excluded from diluted earnings per share computations as of the date indicated were as follows:

(In thousands) April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Stock Options and Unvested RSUs — 522 — 479

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On August 8, 2023, the Company initiated an at-the-market equity offering program (the “ATM Program”) for the sale from time to time of shares of the Company’s common stock, par value $ 0.01 per share, having an aggregate offering price of up to $ 30.0 million.

During the three months ended April 4, 2026 and March 29, 2025, the Company did not sell any shares of our common stock under the ATM Program.

As of April 4, 2026, the Company had remaining capacity under the ATM Program to sell shares of common stock having an aggregate offering price up to approximately $ 8.2 million.

During the three and six months ended July 4, 2026 and June 28, 2025, the Company did not sell any shares of its common stock under the ATM Program.

As of July 4, 2026, the Company had remaining capacity under the ATM Program to sell shares of common stock having an aggregate offering price up to approximately $ 8.2 million.

Comprehensive (Loss) Income and Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows:

(In thousands) April 4, 2026 December 31, 2025

(In thousands) July 4, 2026 December 31, 2025

Foreign Currency Translation Adjustments $ ( 7,105 ) $ ( 5,152 )

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The components of other comprehensive (loss) income are as follows:

Three Months Ended

(In thousands) April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Foreign Currency Translation Adjustments $ ( 1,953 ) $ 2,931 $ ( 798 ) $ 2,179

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Amortization of Prior Service Cost

Amortization of Net Actuarial (Gains) Losses

193 193 96 97

Amortization of Net Actuarial Losses (Gains) 62 ( 665 ) 32 ( 333 )

Retirement Liability Adjustment 255 ( 472 ) 128 ( 236 )

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The loss of major customers or a significant reduction in business with a major customer would significantly, and negatively impact our sales and earnings.

In the three months ended April 4, 2026, the Company had one major customer over 10% of consolidated sales primarily in the Aerospace segment.

Sales to The Boeing Company (“Boeing”) accounted for 10.1 % of consolidated sales in the three months ended April 4, 2026.

Accounts receivable from Boeing on April 4, 2026 were approximately $ 19.8 million.

In the three months ended March 29, 2025, the Company had one major customer over 10% of consolidated sales primarily in the Aerospace segment.

Sales to the Safran Group (“Safran”) accounted for 10.3 % of consolidated sales in the three months ended March 29, 2025.

In the three and six months ended July 4, 2026, the Company had one major customer over 10 % of consolidated sales primarily in the Aerospace segment.

Sales to The Boeing Company (“Boeing”) accounted for 12.0 % and 11.1 % of consolidated sales in the three and six months ended July 4, 2026.

Accounts receivable from Boeing on July 4, 2026 were approximately $ 27.1 million.

In the three and six months ended June 28, 2025, the Company had no major customers over 10% of consolidated sales.

13) Legal Proceedings and Other Matters

Legal Proceedings

One of the Company’s subsidiaries is involved in numerous patent infringement actions brought by Lufthansa Technik AG (“Lufthansa”) in Germany, the United Kingdom (“UK”) and France.

One of the Company’s Aerospace subsidiaries is involved in numerous patent infringement actions brought by Lufthansa Technik AG (“Lufthansa”) in Germany, the United Kingdom (“UK”) and France.

The Company is vigorously defending all such litigation and proceedings.

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Therefore, the decisions of the Higher Regional Court of Karlsruhe have become final.

The reserve for the German indirect claim and interest was approximately $ 17.7 million at April 4, 2026 and $ 17.6 million on December 31, 2025.

The reserve for the German indirect claim and interest was approximately $ 17.8 million at July 4, 2026 and $ 17.6 million at December 31, 2025.

The Company currently believes it is unlikely that the damages in the German indirect proceedings and related interest will be paid within the next twelve months.

Therefore, the liability related to this matter is classified within Other Liabilities (non-current) in the Consolidated Condensed Balance Sheets at April 4, 2026 and December 31, 2025.

Therefore, the liability related to this matter is classified within Other Liabilities (non-current) in the Consolidated Condensed Balance Sheets at July 4, 2026 and December 31, 2025.

In the matter before the UK High Court of Justice, Lufthansa had pleaded its case for monetary compensation at a separate trial which was conducted in October 2024.

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Additionally, on April 30, 2025, the UK High Court of Justice issued a draft order related to interest associated with damages, which obligated the Company to accrue a reserve estimate of $ 5.7 million relating to such interest associated with the damages.

Both of these amounts were recorded in the three months ended March 29, 2025 within Selling, General and Administrative Expenses in the Company’s Consolidated Condensed Statement of Operations.

Both of these amounts were recorded within Selling, General and Administrative Expenses in the Company’s Consolidated Condensed Statement of Operations during the first quarter of 2025.

There was a further consequential hearing on May 16, 2025 which addressed applications concerning interest on the ordered damages, permission to appeal the court’s findings in these matters, as well as the issue of reimbursement of legal fees in the damages phase of the litigation.

The Company was ordered to make payments of $ 5.7 million in relation to the previously accrued interest and $ 3.5 million for partial reimbursement of Lufthansa’s legal costs.

The interest amount was recorded in the first quarter of 2025, while the legal cost reimbursement was recorded in the second quarter.

Both the Company and Lufthansa have been granted permission to appeal the rulings by the UK High Court of Justice.

The appeals are scheduled to be heard by the UK Court of Appeal in July 2026.

A liability for reimbursement of Lufthansa’s legal expenses associated with the UK matter, exclusive of the damages phase, was approximately $ 1.0 million at April 4, 2026 and December 31, 2025, which is expected to be paid within the next twelve months and, as such, is classified in Accrued Expenses and Other Current Liabilities in the accompanying Consolidated Condensed Balance Sheets as of April 4, 2026 and December 31, 2025.

The Company was ordered to make payments of $ 5.7 million in relation to previously accrued interest and $ 3.5 million for partial reimbursement of Lufthansa’s legal costs.

The legal cost reimbursement was recorded within Selling, General and Administrative Expenses in the Company’s Consolidated Condensed Statement of Operations during the second quarter of 2025.

During the three and six months ended June 28, 2025, the Company made payments totaling $ 21.6 million, in satisfaction of the liabilities for damages, interest and provisional legal fee reimbursement.

Both the Company and Lufthansa were granted permission to appeal the rulings by the UK High Court of Justice.

The appeals were heard by the UK Court of Appeal in July 2026 and judgment was handed down on July 27, 2026.

The Court’s judgment is that Lufthansa failed in its appeal and the Company succeeded in one of its appeals.

The Company’s position is that approximately $ 2.2 million (including interest) of the damages paid by the Company to Lufthansa following the judgments in February 2025 and April 2025 is due to be repaid to the Company by Lufthansa.

The Company is seeking an order for repayment of this money from the Court of Appeal.

The Company is also seeking from the Court of Appeal that a portion of its legal expense for the appeals and the first instance damages trial is reimbursed;

such amount has not yet been estimated.

It is possible for either side to seek permission to appeal to the UK Supreme Court.

No such applications have yet been made by either side.

The Company expects to record the gain for the damages repayment as well as the legal fee reimbursement as an offset to Selling, General and Administrative Expense in the quarter in which the Court orders such payments.

A liability for reimbursement of Lufthansa’s legal expenses associated with the UK matter, exclusive of the damages phase, was approximately $ 1.0 million at July 4, 2026 and December 31, 2025, which is expected to be paid within the next twelve months and, as such, is classified in Accrued Expenses and Other Current Liabilities in the accompanying Consolidated Condensed Balance Sheets as of July 4, 2026 and December 31, 2025.

With respect to the proceeding in France, the Court of Appeal of Paris is set to hear the appeal on nullity on October 28, 2026.

Should the Court find the patent to be valid, the trial date for the infringement and damages is scheduled for December 2027.

As loss exposure is not probable and estimable at this time, the Company has not recorded any liability with respect to the French matter at April 4, 2026 or December 31, 2025.

As loss exposure is not probable and estimable at this time, the Company has not recorded any liability with respect to the French matter at July 4, 2026 or December 31, 2025.

Each of the German, France and UK claims are separate and distinct.

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However, it is reasonably possible that additional damages and interest could be incurred if the appellate court in France was to rule in favor of Lufthansa, or if damages in the UK matter upon conclusion of the appeal are calculated on a different basis than the initial judgment.

There were no other significant developments in any of these matters during the three months ended April 4, 2026.

There were no other significant developments in any of these matters during the three months ended July 4, 2026.

Other than these proceedings, we are not party to any significant pending legal proceedings that management believes will result in a material adverse effect on our financial condition or results of operations.

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Court of International Trade.

As of the filing date, it remains uncertain what impact these decisions will have on our future financial results, including the process and availability of obtaining refunds of amounts previously paid for the IEEPA tariffs or any fluctuations of the level of replacement tariffs imposed or the addition of any new tariffs through other means.

Refunds of previously paid tariffs represent gain contingencies under ASC 450-30.

Consistent with this guidance, the Company recognizes such refunds as a reduction of Cost of Products Sold in the period in which the gain is realized or realizable, generally when cash is received.

Refunds that have been approved but not yet received, or that remain subject to appeal, further agency action, or other contingencies, are not recognized until realization criteria are met.

As a result, during the three and six months ended July 4, 2026, the Company received $ 2.0 million in IEEPA tariff refunds in the Consolidated Condensed Statement of Operations.

The ultimate impact of these developments on our future financial results remains uncertain, including the timing and extent of any future refunds of tariffs previously paid under IEEPA and the nature, scope, and rate of any replacement tariffs or other trade measures that may be implemented.

14) Segment Information

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Segment information and reconciliations to consolidated amounts are as follows:

Three Months Ended

(In thousands) April 4, 2026 March 29, 2025

Six Months Ended Three Months Ended

(In thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Aerospace $ 451,135 $ 385,035 $ 237,292 $ 193,647

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995 ( 8,933 ) 592 ( 6,710 )

2.5 % ( 34.9 ) % 2.6 % ( 60.7 ) %

Total Operating Profit 84,591 31,370 48,856 11,329

17.2 % 7.6 % 18.8 % 5.5 %

Deductions from Segment Measure of Operating Profit:

Interest Expense, Net of Interest Income

4,668 6,247 2,332 3,097

Corporate Expenses and Other

17,284 13,098 8,670 6,381

Income Before Income Taxes $ 62,639 $ 12,025 $ 37,854 $ 1,851

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2 Other segment items include Selling, General and Administrative Expenses, Research and Development Expenses, and sublease and rental income.

(In thousands)

April 4, 2026 December 31, 2025

3 In the three and six months ended June 28, 2025, revisions of estimated costs to complete certain long-term mass transit Test contracts had an adverse impact to operating profit of $ 6.9 million and $ 8.8 million, respectively.

(In thousands) July 4, 2026 December 31, 2025

Total Assets:

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20,052 16,781

$ 747,143 $ 706,678

Three Months Ended

Total Assets $ 760,844 $ 706,678

Six Months Ended Three Months Ended

(In thousands)

April 4, 2026 March 29, 2025

July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025

Depreciation and Amortization:

$ 11,205 $ 8,955 $ 5,826 $ 4,457

1,002 1,990 497 912

Total Depreciation and Amortization $ 12,235 $ 10,966 $ 6,341 $ 5,378

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$ 16,221 $ 6,525 $ 5,490 $ 4,443

605 185 176 162

Total Capital Expenditures $ 16,869 $ 6,710 $ 5,709 $ 4,605

15) Fair Value

There were no financial assets or liabilities carried at fair value measured on a recurring basis on April 4, 2026 or December 31, 2025.

There were no non-recurring fair value measurements performed in the three months ended April 4, 2026 and March 29, 2025.

There were no financial assets or liabilities carried at fair value measured on a recurring basis on July 4, 2026 or December 31, 2025.

There were no non-recurring fair value measurements performed in the six months ended July 4, 2026 and June 28, 2025.

Due to their short-term nature, the carrying value of cash and equivalents, accounts receivable, and accounts payable approximate fair value.

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The total purchase price was approximately $ 8.3 million, net of cash acquired and the estimated closing adjustment.

Of the purchase price, $ 4.5 million was paid at the closing date.

Of the purchase price, $ 4.5 million was paid at the closing date and $ 2.0 million was paid on the first anniversary of the closing date.

A payment of $ 1.8 million becomes payable by the Company following the second anniversary of the closing date based on the achievement of certain milestones.

The Company has finalized the purchase price allocation.

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The Company has not yet finalized the purchase price allocation.

Purchased intangible assets and goodwill are not expected to be deductible for tax purposes.

This transaction was not considered material to the Company’s financial position or results of operations.

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