What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-07 · 153 added, 58 removed, 118 unchanged (64% of the section changed)

12 unchanged sentences

Amounts in the following discussion are presented in millions, except employee, share and per share data, or unless otherwise stated.

Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in identifying underlying growth trends in our business and facilitate comparison of our sales performance, for example, with prior and future periods that are complementary to GAAP metrics.

We have based the forward-looking statements relating to our operations on our current expectations, estimates and projections about us and the markets we serve.

26 unchanged sentences

Credit Facilities

We are party to a senior secured credit agreement (the “Credit Agreement”) entered into on March 17, 2023, which provides for a $500 million, five-year revolving credit facility (the “Revolving Facility”), funding under which became available in connection with the Separation.

On December 9, 2024, we entered into an amendment to the Credit Agreement which increased the Revolving Facility by $200 million to an aggregate $700 million and provided a delayed draw term loan (the “Delayed Draw”) of £300 million to be used as part of the funding for the De La Rue Authentication Solutions acquisition discussed below.

On March 17, 2023, we entered into a $350 million, 3-year term loan facility (the “Term Facility”), funding under which became available in connection with the Separation.

On December 9, 2024, proceeds from the Revolving Facility were used to repay the outstanding Term Facility.

In the three months ended March 31, 2025, we drew down $106.0 million and repaid $52.5 million on our Revolving Facility to fund working capital requirements.

On May 1, 2025, we acquired De La Rue plc’s authentication business, De La Rue Authentication Solutions (“DLR”) for a base purchase price of £300 million on a cash-free and debt-free basis, subject to customary adjustments reflecting DLR’s net working capital, cash, the assumption of certain debt-like items, and DLR's transaction expenses.

We utilized our Delayed Draw to fund the acquisition.

De La Rue Authentication Solutions is a leading global provider of digital and physical security and authentication technologies to governments and brands.

De La Rue Authentication Solutions will be combined with OpSec within the Security and Authentication Technologies segment upon close.

General Economic Outlook

recently announced significant changes to trade policies and tariffs.

As of May 7, 2025, we expect to be able to largely offset the impact of tariffs on operating profit with pricing and productivity initiatives.

The extent and duration of tariffs, including retaliatory tariffs, continue to evolve and the related market volatility and exchange rate fluctuations make it challenging to forecast the impact on our operations and results.

The broader economic implications resulting from the market volatility may decrease customer demand and negatively impact revenue and profitability.

On March 17, 2023, we became party to a senior secured credit agreement (the “Credit Agreement”) which provides for a $500 million, five-year revolving credit facility (the “Revolving Facility”) and we entered into a $350 million, 3-year term loan facility (the “Term Facility”).

Funding for both facilities became available in connection with the Separation.

On the same day, proceeds from the Revolving Facility were used to repay the outstanding Term Facility.

In the six months ended June 30, 2025, we drew down $348.0 million and repaid $342.0 million on our Revolving Facility to fund working capital requirements.

We also drew down £300.0 million, or $400.4 million, on the Term Loan to fund the DLR acquisition and repaid $36.8 million.

On May 3, 2024, we acquired OpSec Security for a base purchase price of $270 million.

We utilized $210.0 million from our Revolving Facility and cash on hand to fund the acquisition.

OpSec provides authentication solutions, brand and digital content protection serving various commercial brands, government agencies and financial institutions.

On May 1, 2025, we acquired De La Rue Authentication Solutions (“DLR”) for a base purchase price of £300 million .

We utilized our Term Loan to fund the acquisition.

DLR is a leading global provider of digital and physical security and authentication technologies to governments and brands, and expands our portfolio of authentication solutions.

DLR was combined with OpSec as “Crane Authentication” within the Security and Authentication Technologies segment upon close.

Restructuring

In the second quarter of 2025 we initiated restructuring actions as follows:

• We recorded $6.1 million of restructuring expense in the SAT segment, predominantly related to severance charges, associated with the integration of the DLR and OpSec businesses.

We expect to substantially complete the restructuring program in 2025, with total costs expected to be in the range of $10 million to $15 million.

• We recorded $1.2 million of restructuring expense in the CPI segment, predominantly related to severance charges.

We will continue to evaluate and align CPI’s cost structure with existing economic conditions which could result in additional actions.

Trade Policies and Regulations

We continue to monitor developments in global trade policies and tariff regulations.

As of August 6, 2025, we expect to mitigate the impact of tariffs on operating profit with pricing and productivity initiatives.

See Item 1A, “Risk Factors” for more details.

2 unchanged sentences

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results from Operations – Three Month Periods Ended March 31,

Results from Operations – Three Month Periods Ended June 30,

The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related notes.

All comparisons below refer to the first quarter 2025 versus the first quarter 2024 , unless otherwise specified.

Three Months Ended March 31, Favorable/(Unfavorable) Change

All comparisons below refer to the second quarter 2025 versus the second quarter 2024 , unless otherwise specified.

Three Months Ended June 30, Favorable/(Unfavorable) Change

(in millions) 2025 2024 $ %

10 unchanged sentences

Interest expense (16.4) (12.4) (4.0) (32.3) %

Miscellaneous income, net 2.1 0.6 1.5 250.0 %

Miscellaneous income (expense), net 1.1 (0.2) 1.3 NM

Total other expense, net (15.1) (12.2) (2.9) (23.8) %

1 unchanged sentence

Provision for income taxes 7.8 13.8 6.0 43.5 %

Net income before allocation to noncontrolling interest 25.0 41.6 (16.6) (39.9) %

Noncontrolling interest in subsidiaries’ earnings 0.1 — 0.1 NM

Net income attributable to common shareholders $ 24.9 $ 41.6 $ (16.7) (40.1) %

1 unchanged sentence

The change in sales included:

• sales benefit from the OpSec acquisition of $33.4 million, or 10.6%,

• core sales decline of $12.9 million, or 4.1%, driven primarily by the Currency business, and

• unfavorable foreign currency translation of $3.8 million, or 1.2%.

• sales benefit from the DLR and OpSec acquisitions of $26.7 million, or 7.2%,

• favorable foreign currency translation of $10.1 million, or 2.7% driven primarily by the strengthening of the euro, Swedish krona, British pound and Japanese yen against the U.S.

• core sales decline of $3.0 million, or 0.8%, driven primarily by lower volumes in CPI, partially offset by higher core sales in SAT.

Cost of sales increased by $25.9 million, or 12.4%, to $235.6 million in 2025.

The increase was driven primarily by the impact of the OpSec acquisition of $24.0 million, or 14.9%, under absorption of manufacturing overhead in the Currency business, and unfavorable mix, partially offset by the impact of lower volumes and productivity gains.

The increase was driven primarily by the impact of acquisitions in SAT, higher material and other manufacturing costs, and unfavorable foreign currency translation, partially offset by productivity gains and the impact of lower volumes in CPI.

Selling, general and administrative expenses increased by $20.3 million, or 21.8%, to $113.6 million in 2025.

The increase was driven primarily by the impact of the OpSec acquisition of $13.2 million, or 14.0%, partially offset by the impact of cost saving actions in CPI.

The increase was driven primarily by the impact of acquisitions in SAT and higher transaction related expenses.

Operating profit decreased by $19.7 million, or 29.1%, to $47.9 million in 2025.

The decrease was primarily driven by the SAT segment due to the impact of lower volumes, and the dilutive impact of the OpSec Security acquisition.

Unfavorable mix was largely offset by productivity gains across both segments.

Our effective tax rate for the three months ended March 31, 2025 was higher than the prior year’s comparable period primarily due to the mix of non-U.S.

The decrease was driven primarily by the impact of lower volumes in CPI and the dilutive impact of acquisitions and restructuring charges, partially offset by higher volumes in SAT.

Productivity gains across both segments were largely offset by higher manufacturing and administrative costs, net of favorable pricing.

Included in operating profit is $12.4 million of transaction related expenses compared to $6.5 million in the prior-year comparable period.

Our effective tax rate for the three months ended June 30, 2025 was lower than the prior year’s comparable period primarily due to the mix of non-U.S.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Segment Results of Operations - Three Month Periods Ended March 31,

Segment Results of Operations - Three Month Periods Ended June 30,

Crane Payment Innovations (“CPI”)

Three Months Ended March 31, Favorable/(Unfavorable) Change

Three Months Ended June 30, Favorable/(Unfavorable) Change

(in millions) 2025 2024 $ %

10 unchanged sentences

Operating margin 23.2 % 27.4 %

Sales decreased by $6.1 million, or 2.9%, to $202.9 million in 2025, driven by lower core sales.

Sales decreased by $13.0 million, or 5.8%, to $211.4 million in 2025, driven by lower core sales of $16.3 million, or 7.3%, partially offset by favorable foreign currency translation of $3.3 million, or 1.5%.

• Sales of Payment Acceptance and Dispensing Products decreased by $13.5 million, or 7.1%, to $177.1 million in 2025.

The decrease was driven by core sales decline of $5.1 million, or 2.9%, as favorable pricing was more than offset by lower gaming volumes.

Included in the sales decrease was unfavorable foreign currency translation of $1.4 million, or 0.8%, primarily reflecting the weakening of the Japanese yen against the U.S.

The decrease was driven by core sales decline of $16.8 million, or 8.8%, as favorable pricing was more than offset by anticipated lower volumes primarily in retail and gaming, partially offset by favorable foreign currency translation of $3.3 million, or 1.7%, primarily reflecting the strengthening of the British pound and Japanese yen against the U.S.

• Service revenue increased by $0.5 million, or 1.5%, to $34.3 million in 2025, primarily driven by favorable pricing.

Cost of sales decreased by $1.0 million, or 1.0%, to $103.8 million in 2025, as unfavorable mix was more than offset by the impact of lower sales volumes.

Selling, general and administrative expense increased by $0.6 million, or 1.2%, to $49.4 million in 2025, as the impact of cost saving actions was more than offset by increased administrative costs.

Cost of sales decreased by $2.9 million, or 2.5%, to $111.7 million in 2025, primarily driven by the impact of lower sales volumes and productivity gains, partially offset by unfavorable mix, unfavorable foreign currency translation and higher material and other manufacturing costs.

Selling, general and administrative expense increased by $1.1 million, or 2.3%, to $49.5 million in 2025, driven primarily by unfavorable foreign currency translation.

Higher administrative and selling costs were largely offset by cost saving actions.

Operating profit decreased by $12.4 million, or 20.2%, to $49.0 million in 2025.

The decrease primarily reflected unfavorable mix of $6.6 million, or 12.5%, partially offset by productivity gains of $3.7 million, or 7.0%.

The impact of lower volumes were largely offset by cost saving actions.

The decrease primarily reflected the impact of lower volumes of $12.1 million, or 19.7%, and unfavorable mix of $3.7 million, or 6.0%, partially offset by productivity gains and the net impact of cost saving actions of $3.6 million, or 5.9%.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Security and Authentication Technologies (“SAT”)

Three Months Ended March 31, Favorable/(Unfavorable) Change

Three Months Ended June 30, Favorable/(Unfavorable) Change

(in millions) 2025 2024 $ %

7 unchanged sentences

as a percentage of sales 23.3 % 18.5 %

Restructuring charges $ 6.1 $ — $ (6.1) NM

Operating profit $ 18.0 $ 24.0 $ (6.0) (25.0) %

Operating margin 9.3 % 16.4 %

Sales increased by $22.8 million, or 21.8%, to $127.4 million in 2025, primarily driven by the sales benefit from the OpSec acquisition of $33.4 million, or 31.9%, partially offset by core sales decline of $8.2 million, or 7.8%, and unfavorable foreign exchange of $2.4 million or 2.3%.

• Banknote and security product sales decreased by $10.0 million, or 9.7%, to $93.4 million in 2025.

The decrease was driven by core sales decline of $7.6 million, or 7.4%, as higher sales in international markets were more than offset by anticipated lower U.S.

government sales related to the planned shutdown of certain papermaking equipment in preparation for the new U.S.

banknote series.

Included in the sales decrease was unfavorable foreign currency translation of $2.4 million, or 2.3%, primarily reflecting the weakening of the Swedish krona and euro against the U.S.

• Authentication products and solutions sales increased to $34.0 million in 2025, primarily driven by the sales benefit from the OpSec acquisition.

Cost of sales increased by $29.9 million, or 53.0%, to $86.3 million in 2025, primarily due to the impact of the OpSec acquisition of $24.0 million, or 42.6%, and under absorption of manufacturing overhead related to the planned equipment shutdown.

Selling, general and administrative expense increased by $10.7 million, or 38.2%, to $38.7 million in 2025, primarily due to the impact of the OpSec acquisition of $13.2 million, or 47.1%.

Operating profit decreased by $17.8 million, or 88.1%, to $2.4 million in 2025, reflecting the impact of lower volumes of $8.1 million, or 40.1%, under absorption of manufacturing overhead net of favorable pricing of $6.3 million, or 31.2%, the dilutive impact of the OpSec acquisition of $4.1 million, or 20.3%, and unfavorable mix of $2.1 million, or 10.4%, partially offset by productivity gains of $3.1 million, or 15.3%.

Sales increased by $46.8 million, or 32.0%, to $193.0 million in 2025, primarily driven by the sales benefit from the DLR and OpSec acquisitions of $26.7 million, or 18.3%, core sales growth of $13.4 million, or 9.1%, and favorable foreign currency translation of $6.7 million or 4.6%.

• Banknote and security product sales increased by $19.4 million, or 15.6%, to $143.5 million in 2025.

The increase was driven by core sales growth of $13.9 million, or 11.2%, primarily due to higher sales in international markets.

Included in the sales increase was favorable foreign currency translation of $5.5 million, or 4.4%, primarily reflecting the strengthening of the euro and Swedish krona against the U.S.

• Authentication products and solutions sales increased by $27.4 million to $49.5 million in 2025, primarily driven by the sales benefit from acquisitions.

Cost of sales increased by $28.8 million, or 30.3%, to $123.9 million in 2025, primarily due to the impact of the DLR and OpSec acquisitions of $18.2 million, or 19.1%, acquisition related amortization and fair value step-up of $7.3 million, or 7.7%, and unfavorable foreign currency translation.

Selling, general and administrative expense increased by $17.9 million, or 66.1%, to $45.0 million in 2025, primarily due to the impact from acquisitions and higher transaction related expenses.

Operating profit decreased by $6.0 million, or 25.0%, to $18.0 million in 2025, reflecting the dilutive impact of the DLR and OpSec acquisition related amortization, fair value step-up and transaction costs of $10.4 million, or 43.3%, higher material and other manufacturing costs net of favorable pricing of $6.8 million, or 28.3%, and higher restructuring charges of $6.1 million, or 25.4%, partially offset by the impact of higher volumes of $7.3 million, or 30.4%, productivity gains of $5.0 million, or 20.8%, and favorable mix of $2.0 million, or 8.3%.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results from Operations – Six Month Periods Ended June 30,

The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related notes.

All comparisons below refer to the first six months of 2025 versus the first six months of 2024, unless otherwise specified.

Six Months Ended June 30, Favorable/(Unfavorable) Change

(in millions) 2025 2024 $ %

Net sales $ 734.7 $ 684.2 $ 50.5 7.4 %

Cost of sales $ 425.7 $ 370.9 $ (54.8) (14.8) %

as a percentage of sales 57.9 % 54.2 %

Selling, general and administrative

$ 216.5 $ 187.6 $ (28.9) (15.4) %

as a percentage of sales 29.5 % 27.4 %

Restructuring charges $ 7.3 $ 2.7 $ (4.6) NM

Operating profit $ 85.2 $ 123.0 $ (37.8) (30.7) %

Operating margin 11.6 % 18.0 %

Other income (expense):

Interest income 0.4 1.0 (0.6) (60.0) %

Interest expense (27.9) (22.3) (5.6) (25.1) %

Miscellaneous income, net 3.2 0.4 2.8 NM

Total other expense, net (24.3) (20.9) (3.4) (16.3) %

Income before income taxes 60.9 102.1 (41.2) (40.4) %

Provision for income taxes 14.2 22.7 8.5 37.4 %

Net income before allocation to noncontrolling interest 46.7 79.4 (32.7) (41.2) %

Noncontrolling interest in subsidiaries’ earnings 0.1 — 0.1 NM

Net income attributable to common shareholders $ 46.6 $ 79.4 $ (32.8) (41.3) %

Sales increased by $50.5 million, or 7.4%, to $734.7 million in 2025.

The change in sales included:

• sales benefit from the OpSec and DLR acquisitions of $59.8 million, or 8.7%,

• core sales decline of $15.9 million, or 2.3%, driven by lower volumes in CPI, and

• favorable foreign currency translation of $6.6 million, or 1.0%, driven primarily by the strengthening of the euro and British pound against the U.S.

Cost of sales increased by $54.8 million, or 14.8%, to $425.7 million in 2025.

The increase was driven primarily by the impact of acquisitions in SAT, under absorption of manufacturing overhead in the Currency business, unfavorable mix in CPI and unfavorable foreign currency translation, partially offset by the impact of lower volumes in CPI and productivity gains across both segments.

Selling, general and administrative expenses increased by $28.9 million, or 15.4%, to $216.5 million in 2025.

The increase was driven primarily by the impact of acquisitions in SAT.

Operating profit decreased by $37.8 million, or 30.7%, to $85.2 million in 2025.

The decrease was primarily driven by the impact of lower volumes in the CPI segment, the dilutive impact of acquisitions, under absorption of manufacturing overhead net of favorable pricing in SAT and unfavorable mix in CPI, partially offset by productivity gains across both segments.

Our effective tax rate for the six months ended June 30, 2025 was higher than the prior year’s comparable period primarily due to the mix of non-U.S earnings.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Segment Results of Operations - Six Month Periods Ended June 30,

Crane Payment Innovations

Six Months Ended June 30,

Favorable/(Unfavorable) Change

(in millions) 2025 2024 $ %

Net sales by product line:

Payment Acceptance and Dispensing Products $ 347.0 $ 367.0 $ (20.0) (5.4) %

Services 67.3 66.4 0.9 1.4 %

Total net sales $ 414.3 $ 433.4 $ (19.1) (4.4) %

Cost of sales $ 215.5 $ 219.4 $ 3.9 1.8 %

as a percentage of sales 52.0 % 50.6 %

Selling, general and administrative $ 98.9 $ 97.2 $ (1.7) (1.7) %

as a percentage of sales 23.9 % 22.4 %

Restructuring charges $ 1.2 $ 2.7 $ 1.5 55.6 %

Operating profit $ 98.7 $ 114.1 $ (15.4) (13.5) %

Operating margin 23.8 % 26.3 %

Sales decreased by $19.1 million, or 4.4%, to $414.3 million in 2025, driven by lower core sales of $21.0 million, or 4.8%, partially offset by favorable foreign currency translation of $1.9 million, or 0.4%.

• Sales of Payment Acceptance and Dispensing Products decreased $20.0 million, or 5.4%, to $347.0 million in 2025.

The decrease reflected lower core sales of $21.9 million, or 6.0%, as favorable pricing was more than offset by anticipated lower volumes primarily in gaming, partially offset by favorable foreign currency translation of $1.9 million, or 0.5%, primarily reflecting the strengthening of the British pound against the U.S.

• Service revenue increased by $0.9 million, or 1.4%, to $67.3 million in 2025, primarily driven by favorable pricing.

Cost of sales decreased by $3.9 million, or 1.8%, to $215.5 million in 2025, primarily driven by the impact of lower sales volumes and productivity gains, partially offset by unfavorable mix, higher material and other manufacturing costs and unfavorable foreign currency translation.

Selling, general and administrative expense increased by $1.7 million, or 1.7%, to $98.9 million in 2025, as the impact of cost saving actions was more than offset by increased administrative costs.

Operating profit decreased by $15.4 million, or 13.5%, to $98.7 million in 2025.

The decrease primarily reflected the impact of lower volumes of $15.9 million, or 13.9%.

Unfavorable mix of $10.3 million, or 9.0%, was largely offset by productivity gains of $6.3 million, or 5.5% and the net impact of cost saving actions of $6.2 million, or 5.4%.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Security and Authentication Technologies

Six Months Ended June 30, Favorable/(Unfavorable) Change

(in millions) 2025 2024 $ %

Net sales by product line:

Banknotes and Security Products $ 236.9 $ 227.5 $ 9.4 4.1 %

Authentication Products and Solutions 83.5 23.3 60.2 NM

Net sales $ 320.4 $ 250.8 $ 69.6 27.8 %

Cost of sales $ 210.2 $ 151.5 $ (58.7) (38.7) %

as a percentage of sales 65.6 % 60.4 %

Selling, general and administrative $ 83.7 $ 55.1 $ (28.6) (51.9) %

as a percentage of sales 26.1 % 22.0 %

Restructuring charges $ 6.1 $ — $ (6.1) NM

Operating profit $ 20.4 $ 44.2 $ (23.8) (53.8) %

Operating margin 6.4 % 17.7 %

Sales increased by $69.6 million, or 27.8%, to $320.4 million in 2025, primarily reflecting the sales benefit from the OpSec and DLR acquisitions of $59.8 million, or 23.8%, and higher core sales of $5.1 million, or 2.0%, and favorable foreign currency translation of $4.7 million, or 1.9%.

• Banknote and security product sales increased by $9.4 million, or 4.1%, to $236.9 million in 2025, reflecting higher core sales primarily due to higher sales in international markets, and favorable foreign currency translation, primarily reflecting the strengthening of the euro against the U.S.

• Authentication products and solutions sales increased by $60.2 million to $83.5 million in 2025, primarily driven by the sales benefit from acquisitions.

Cost of sales increased by $58.7 million, or 38.7%, to $210.2 million in 2025, primarily due to the impact of the OpSec and DLR acquisitions of $38.5 million, or 25.4%, the acquisition related amortization and fair value step-up of $11.1 million, or 7.3%, and under absorption of manufacturing overhead related to the planned equipment shutdown in the first quarter of 2025, partially offset by productivity gains.

Selling, general and administrative expense increased by $28.6 million, or 51.9%, to $83.7 million in 2025, primarily due to the impact of acquisitions and higher transaction related expenses.

Operating profit decreased by $23.8 million, or 53.8%, to $20.4 million in 2025, reflecting the dilutive impact of the OpSec and DLR acquisition related amortization, fair value step-up and transaction costs of $14.2 million, or 32.1%, and higher manufacturing costs primarily due to the under absorption of manufacturing overhead, net of favorable pricing of $13.2 million, or 29.9%.

Higher restructuring charges of $6.1 million, or 13.8%, were more than offset by productivity gains of $8.2 million, or 18.6%.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2025 2024

Net cash (used for) provided by:

Net cash provided by (used for):

Operating activities $ 43.7 $ 66.3

2 unchanged sentences

Effect of exchange rates on cash, cash equivalents and restricted cash 15.2 (9.5)

Increase (decrease) in cash, cash equivalents and restricted cash $ 12.0 $ (0.3)

Decrease in cash, cash equivalents and restricted cash $ (8.9) $ (44.1)

Our operating philosophy is to deploy cash provided from operating activities, when appropriate, to provide value to stockholders by reinvesting in existing businesses, by making acquisitions that will strengthen and complement our portfolio;

3 unchanged sentences

Our current cash balance, together with cash we expect to generate from future operations along with borrowings available under the Credit Agreement, is expected to be sufficient to finance our short- and long-term capital requirements.

In the three months ended March 31, 2025, we drew down $106.0 million and repaid $52.5 million on our Revolving Facility to fund working capital requirements.

In the six months ended June 30, 2025, we drew down $348.0 million and repaid $342.0 million on our Revolving Facility to fund working capital requirements.

We also drew down £300.0 million, or $400.4 million, on the Term Loan to fund the DLR acquisition and repaid $36.8 million .

Operating Activities

Cash used for operating activities was $19.1 million in the first three months of 2025, compared with cash provided by operating activities of $9.5 million during the same period last year.

The increase in cash used for operating activities was primarily driven by lower net income and higher working capital requirements.

Cash provided by operating activities was $43.7 million in the first six months of 2025, compared with $66.3 million in the comparable period last year.

The decrease in cash provided by operating activities was primarily driven by lower net income, partially offset by lower working capital requirements.

Investing Activities

1 unchanged sentence

Capital expenditures are made primarily for increasing capacity, replacing equipment, supporting new product development, and improving information systems.

Cash used for investing activities was $13.6 million in the first three months of 2025, compared with $12.5 million in the comparable period last year.

The increase in cash used for investing activities was primarily driven by higher cash used for capital expenditures to support the U.S.

Currency redesign program and other capital projects.

Cash used for investing activities was $412.6 million in the first six months of 2025, compared with $291.1 million in the comparable period last year.

The increase in cash used for investing activities was primarily driven by the payment for the acquisition of DLR.

Financing Activities

Cash provided by (used for) financing activities consists primarily of dividend payments to shareholders, repayments of indebtedness, and proceeds from our credit facilities.

Cash provided by financing activities was $38.0 million during the first three months of 2025, compared with $10.6 million in the comparable period last year.

The increase in cash provided by financing activities was primarily driven by higher net proceeds from the Revolving Facility to fund working capital requirements.

Cash provided by financing activities consists primarily of dividend payments to shareholders, repayments of indebtedness, and proceeds from our credit facilities.

Cash provided by financing activities was $344.8 million during the first six months of 2025, compared with $190.2 million in the comparable period last year.

The increase in cash provided by financing activities was primarily driven by higher net proceeds from the Term Loan used to fund the acquisition of DLR, partially offset by lower net proceeds from the Revolving Facility.

Recent Accounting Pronouncements

3 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