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Item 2. Management’s Discussion and Analysis

2026-05-05 compared with 2025-11-05 · 112 added, 288 removed, 187 unchanged (68% of the section changed)

6 unchanged sentences

We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short- and long-term business operations and objectives, and financial needs.

Examples of forward-looking statements include, but are not limited to, statements we make regarding statements we make regarding the announced pending sale of our Advanced Materials & Catalysts business, demand trends, economic effects on our operations and financial results and our liquidity, potential strategic acquisitions or divestitures, potential increased borrowing under our credit facilities, and our belief that our current level of operations, cash and cash equivalents, cash flow from operations and borrowings under our credit facilities and other lines of credit will provide us adequate cash to fund working capital requirements, capital expenditure projects, debt service requirements and other requirements for our business for at least the next twelve months.

Examples of forward-looking statements include, but are not limited to, statements we make regarding demand trends, economic effects on our operations and financial results and our liquidity, potential strategic acquisitions or divestitures, potential increased borrowing under our credit facilities, and our belief that our current level of operations, cash and cash equivalents, cash flow from operations and borrowings under our credit facilities and other lines of credit will provide us adequate cash to fund working capital requirements, capital expenditure projects, debt service requirements and other requirements for our business for at least the next twelve months.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions.

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Some of the key factors that could cause actual results to differ from our expectations include the following risks related to our business:

• as a global business, we are exposed to local business risks in different countries;

• are affected by general economic conditions and economic downturns;

• exchange rate fluctuations could adversely affect our financial condition, results of operations and cash flows;

• our international operations require us to comply with anti-corruption laws, trade and export controls and regulations of the U.S.

government and various international jurisdictions in which we do business;

• alternative technology or other changes in our customers’ products may reduce or eliminate the need for certain of our products;

• our new product development and research and development efforts may not succeed and our competitors may develop more effective or successful products;

• we are exposed to general business risks;

• we are affected by general economic conditions and economic downturns;

• our operations require us to comply with regulations of the U.S.

government as well as the state and local governments where we operate;

• alternative technology may reduce or eliminate the need for certain of our products;

• our substantial level of indebtedness could adversely affect our financial condition;

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• existing and proposed regulations to address climate change by limiting greenhouse gas emissions may cause us to incur significant additional operating and capital expenses and may impact our business and results of operations;

• other governmental legislation and regulation, as well as adverse effects from the U.S.

government shutdown;

• other governmental legislation and regulation;

• production and distribution of our products could be disrupted for a variety of reasons, including as a result of supply chain constraints, and such disruptions could expose us to significant losses or liabilities;

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• disruption, failure or cyber security breaches affecting or targeting computers and infrastructure used by us or our business partners may adversely impact our business and operations;

• significant trade developments, including tariffs, have had and may continue to have an adverse effect on us;

• the timing of, and ability to consummate, our announced sale of our Advanced Materials & Catalysts segment and the anticipated partial repayment under our 2025 Term Loan Facility;

• that we have a material weakness in our internal control over financial reporting and that we may identify additional material weaknesses in the future;

• significant trade developments, including tariffs, could have an adverse effect on us or our customers;

• other factors set forth in Part I, “Item 1A.

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We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Form 10-Q to conform these statements to actual results or to changes in our expectations.

We are a leading provider of virgin sulfuric acid and sulfuric acid regeneration services.

We are a leading provider of virgin sulfuric acid and regenerated sulfuric acid products and services.

We believe that our Ecoservices business contributes to improving the sustainability of the environment.

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We also provide chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry.

Recent Developments

On September 10, 2025, we entered into a definitive agreement to sell our Advanced Materials & Catalysts business to Technip Energies N.V.

for a purchase price of $556.0 million , subject to certain adjustments including for indebtedness, cash, working capital and transaction expenses.

The transaction is expected to be completed in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.

On December 31, 2025, the Company completed the sale of its Advanced Materials & Catalysts business .

The results of operations, financial condition, and cash flows for the Advanced Materials & Catalysts are presented herein as discontinued operations.

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On October 30, 2025, the Board amended the Stock Repurchase Program to remove the limitation that all repurchases must be made within the four-year period from the date of original approval.

For the nine months ended September 30, 2025, the Company repurchased 3,536,364 shares on the open market at an average price of $7.74 per share, for a total of $27.4 million excluding brokerage commissions and accrued excise tax.

As of September 30, 2025, $202.2 million was available for share repurchases under the program.

For the nine months ended September 30, 2024, the Company repurchased 552,081 shares on the open market at an average price of $9.05 per share, for a total of $5.0 million excluding brokerage commissions and accrued excise tax.

For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 and 10b5-1 trading plans or accelerated share repurchases.

For the three months ended March 31, 2026, the Company repurchased 3,226,461 shares on the open market at an average price of $11.07 per share, for a total of $35.7 million excluding brokerage commissions and accrued excise tax.

As of March 31, 2026, $146.5 million was available for share repurchases under the program.

The Company did not repurchase any of its common stock pursuant to the stock repurchase program during the three months ended March 31, 2025.

transactions, open market repurchases or other means, including through Rule 10b-18 and 10b5-1 trading plans or accelerated share repurchases.

Key Performance Indicators

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EBITDA consists of net income (loss) from continuing operations before interest, taxes, depreciation and amortization.

Adjusted EBITDA consists of EBITDA adjusted for (i) non-operating income or expense, and (ii) the impact of certain non-cash, nonrecurring or other items included in net income and EBITDA that we do not consider indicative of our ongoing operating performance.

Adjusted Net Income consists of net income (loss) from continuing operations adjusted for (i) non-operating income or expense and (ii) the impact of certain non-cash, nonrecurring or other items included in net income that we do not consider indicative of our ongoing operating performance.

Adjusted EBITDA consists of EBITDA adjusted for (i) non-operating income or expense, and (ii) the impact of certain non-cash, nonrecurring or other items included in net income (loss) from continuing operations and EBITDA that we do not consider indicative of our ongoing operating performance.

Adjusted Net Income consists of net income (loss) from continuing operations adjusted for (i) non-operating income or expense and (ii) the impact of certain non-cash, nonrecurring or other items included in net income (loss) from continuing operations that we do not consider indicative of our ongoing operating performance.

Net Debt consists of total debt less cash and cash equivalents.

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Our presentation of Adjusted EBITDA and Adjusted Net Income should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.

Reconciliations of Adjusted EBITDA, Adjusted Net Income to GAAP net income and Net Debt to GAAP total debt are included in this “Item 2.

Reconciliations of Adjusted EBITDA, Adjusted Net Income to GAAP net income (loss) from continuing operations and Net Debt to GAAP total debt are included in this “Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations” for each of the respective periods.

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We continued to benefit from positive demand trends for our products and services in the majority of end uses we serve.

Strong domestic and export demand for refined products continued to support high refinery utilization rates, while more stringent gasoline standards and growing demand for premium gasoline to power higher-compression and turbo-charged engines continued to drive demand for alkylate and for our regeneration services.

In addition, demand for virgin sulfuric acid across a wide range of industrial applications remained favorable.

Strong demand for refined products continued to support high refinery utilization rates, while more stringent gasoline standards and growing demand for premium gasoline to power higher-compression and turbo-charged engines continued to drive demand for alkylate and for our regeneration services product group.

In addition, demand for virgin sulfuric acid across a wide range of industrial applications, including mining, remained favorable.

Cost of Goods Sold

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Fixed manufacturing expenses include all plant employment costs, manufacturing overhead and periodic maintenance costs.

The primary raw materials for our Ecoservices segment include spent sulfuric acid, sulfur, acids, bases (including sodium hydroxide, or “caustic soda”) and certain metals.

Spent sulfuric acid for our Ecoservices segment is supplied by customers as part of their contracts.

The primary raw materials include spent sulfuric acid, sulfur, acids, bases (including sodium hydroxide, or “caustic soda”) and certain metals.

Spent sulfuric acid for our regeneration services product group is supplied by customers as part of their contracts.

Most of our contracts feature take-or-pay volume protection and/or quarterly price adjustments for commodity inputs, labor, the Chemical Engineering Index (U.S.

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About 90% of our sales for the year ended December 31, 2025 were under contracts featuring quarterly price adjustments.

The price adjustments generally reflect actual costs for producing acid and tend to protect us from volatility in labor, fixed costs and raw material pricing.

The price adjustments generally reflect actual costs for producing sulfuric acid and tend to protect us from volatility in labor, fixed costs and raw material pricing.

The take-or-pay volume protection allows us to cover fixed costs through intermittent, temporary production issues at customer refineries.

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We maintain multiple suppliers wherever possible and structure our customer contracts when possible to allow for the pass-through of raw material, labor and natural gas costs.

Our regeneration services product group typically experiences seasonal fluctuations as a result of higher demand for gasoline products in the summer months and lower demand in the winter months.

Our regeneration services product group typically experiences seasonal fluctuations as a result of higher demand for gasoline products in the summer months and lower demand in the winter months as well as fluctuations associated with customer turnarounds .

These demand fluctuations generally result in higher sales and working capital requirements in the second and third quarters.

Results of Operations

Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

The following is a summary of our financial performance for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

The following is a summary of our financial performance for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

• Sales increased $71.9 million to $215.0 million.

The increase in sales primarily reflects higher average selling prices from the pass-through effect of higher sulfur costs, favorable contractual pricing for regeneration services, increased volume of virgin sulfuric acid, as well as sales associated with the acquired Waggaman, Louisiana location, partially offset by lower regeneration services volume.

• Gro ss profit increased $7.0 million to $52.1 million.

The increase in gross profit was primarily due to higher average selling pricing and higher sales volume, partially offset by higher manufacturing costs.

Operating Income

• Operating income increased by $0.8 million to $28.3 million.

The increase in operating income reflects higher gross profit offset by higher other operating expense, net.

The following is our unaudited condensed consolidated statements of (loss) income and a summary of financial results for the three months ended September 30, 2025 and 2024:

Three months ended

September 30, Change

2025 2024 $ %

(in millions, except percentages)

Sales $ 204.9 $ 153.9 $ 51.0 33.1 %

Cost of goods sold 152.8 108.8 44.0 40.4 %

Gross profit 52.1 45.1 7.0 15.5 %

Gross profit margin 25.4 % 29.3 %

Selling, general and administrative expenses 15.7 15.2 0.5 3.3 %

Other operating expense, net 8.1 2.4 5.7 237.5 %

Operating income 28.3 27.5 0.8 2.9 %

Operating income margin 13.8 % 17.9 %

Interest expense, net 8.4 7.9 0.5 6.3 %

Other (income) expense, net (0.7) 0.2 (0.9) (450.0) %

Income before income taxes 20.6 19.4 1.2 6.2 %

Provision for income taxes 20.2 4.6 15.6 339.1 %

Effective tax rate 98.2 % 23.7 %

Net income from continuing operations 0.4 14.8 (14.4) (97.3) %

Net loss from discontinued operations, net of tax (79.7) (0.5) (79.2) 15,840.0 %

Net (loss) income $ (79.3) $ 14.3 $ (93.6) (654.5) %

Sales for the three months ended September 30, 2025 were $204.9 million, an increase of $51.0 million, or 33.1%, compared to sales of $153.9 million for the three months ended September 30, 2024.

The increase in sales was due to higher average selling prices of $34.3 million and higher overall sales volume of $16.7 million.

The increase in average selling prices primarily reflect the pass-through effect of higher sulfur costs and favorable contractual pricing for regeneration services.

The impact associated with the pass-through of high sulfur costs was approximately $25 million for the three months ended September 30, 2025.

The increase in sales volume was primarily related to the contribution of sales volume from the Waggaman location and higher virgin sulfuric acid sales, partially offset by lower regeneration services due to unplanned and extended customer downtime.

Gross profit for the three months ended September 30, 2025 was $52.1 million, an increase of $7.0 million, or 15.5%, compared to $45.1 million for the three months ended September 30, 2024.

The increase in gross profit was primarily due to higher average selling prices of $9.3 million, exclusive of the approximately $25 million pass-through of the higher sulfur costs, driven by contractual improvements and higher sales volume of $5.8 million, partially offset by higher manufacturing costs of $8.2 million, exclusive of the sulfur costs.

The cost of sulfur is generally passed-through to customers at the same rate as incurred resulting in no net impact to gross profit.

Higher manufacturing costs were driven by additional fixed costs from the Waggaman location, general inflation and transportation.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $15.7 million for the three months ended September 30, 2025, an increase of $0.5 million, as compared to $15.2 million for three months ended September 30, 2024 .

Other Operating Expense, Net

Other operating ex pense, net for the three months ended September 30, 2025 was $8.1 million, an increase of $5.7 million, compared to $2.4 million for the three months ended September 30, 2024.

The increase in other operating expense, net was primarily due to an increase in loss on disposal of assets of $3.4 million, transaction and integration costs associated with the Waggaman location of $1.3 million, and other costs of $1.0 million, primarily related to restructuring and tax charges.

Interest Expense, Net

Interest expense, net for the three month s ended September 30, 2025 was $8.4 million, an increase of $0.5 million, as compared to $7.9 million for the three months ended September 30, 2024 .

The increase in interest expense, net was due to lower benefit from our interest rate caps offset by lower interest expense driven by the year over year decrease in variable rates in part due to the reduction in our spread associated with the 2025 Term Loan refinancing transactions and lower outstanding debt during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024.

Other (Income) Expense, Net

Other income, net for the three months ended September 30, 2025 was $0.7 million, a change of $0.9 million, as compared to $0.2 million of other expense for the three months ended September 30, 2024.

Provision For Income Taxes

The provision for income taxes for the three months ended September 30, 2025 was $20.2 million, compared to $4.6 million for the three months ended September 30, 2024.

The effective income tax rate for the three months ended September 30, 2025 was 98.2%, compared to 23.7% for the three months ended September 30, 2024.

The Company’s quarter over quarter effective income tax rate has fluctuated primarily due to an increased discrete tax impact relative to pre-tax book income.

The discrete tax items relate to a stock compensation shortfall, intraperiod allocation revaluation of deferred tax assets and liabilities including valuation allowances as a result of the Advanced Materials & Catalysts divestiture, tax expense associated with the recording of accrued penalties and interest on historical uncertain tax positions and a tax benefit related to state tax refunds associated with prior tax years.

The total tax expense for the three months ended September 30, 2025 includes a $15.6 million discrete tax expense connected to intraperiod allocation associated with the revaluation of deferred tax assets and liabilities, a valuation allowance against the Company’s Kansas Investment Tax Credits, and an increase in valuation allowance against a portion of the Company’s state net operating losses.

In accordance with intraperiod allocation rules, this discrete tax expense is reflected in the tax provision for continuing operations.

The difference between the U.S.

federal statutory income tax rate and the Company’s effective income tax rate for the three months ended September 30, 2025 was mainly due to state and local taxes, shortfall tax expense related to stock compensation, tax benefit related to state tax refunds associated with prior tax years, discrete tax expense related to intraperiod allocation associated with the revaluation of deferred tax assets and liabilities, a valuation allowance against the Company’s Kansas Investment Tax Credits, and a valuation allowance against a portion of the Company’s state net operating losses.

Net Income From Continuing Operations

For the foregoing reasons, net income from continuing operations was $0.4 million for the three months ended September 30, 2025, compared to $14.8 million for the three months ended September 30, 2024.

Adjusted EBITDA

Summarized Adjusted EBITDA information is shown below in the following table:

Three months ended

September 30, Change

2025 2024 $ %

(in millions, except percentages)

Adjusted EBITDA:

Ecoservices $ 63.6 $ 55.1 $ 8.5 15.4 %

Unallocated corporate expenses (6.1) (6.4) 0.3 4.7 %

Total $ 57.5 $ 48.7 $ 8.8 18.1 %

(1) We define Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation below.

Our management evaluates the performance of our segments and allocates resources based primarily on Adjusted EBITDA.

Adjusted EBITDA does not represent cash flow for periods presented and should not be considered as an alternative to net income from continuing operations as an indicator of our operating performance or as an alternative to cash flows as a source of liquidity.

Adjusted EBITDA may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies.

Adjusted EBITDA for the three months ended September 30, 2025 was $63.6 million, an increase of $8.5 million, or 15.4%, compared to $55.1 million for the three months ended September 30, 2024.

The increase in Adjusted EBITDA was a result of favorable contractual pricing for regeneration services and higher sales volume of virgin sulfuric acid, partially offset by lower regeneration services volume, due to unplanned and extended customer down time, and higher manufacturing costs driven by general inflation and transportation.

A reconciliation of net income from continuing operations to Adjusted EBITDA is as follows:

The increase in sales primarily re flects higher average selling prices from the pass-through effect of higher sulfur costs, favorable contractual pricing for regenerated sulfuric acid and higher sales volume of virgin and regenerated sulfuric acid, including the contribution from the acquired Waggaman, Louisiana location.

• Gross profit increased $17.3 million to $36.4 million.

The increase in gross profit was primarily due to higher sales volume and higher average selling prices, partially offset by higher manufacturing costs.

Operating Income (Loss)

• Operating income (loss) increased by $13.5 million t o $12.5 million .

The increase in operating income (loss) was due to a increase in gross profit, partially offset by higher selling, general and administrative expenses.

The following is our unaudited condensed consolidated statements of income (loss) and a summary of financial results for the three months ended March 31, 2026 and 2025:

Three months ended

September 30,

(in millions)

Reconciliation of net income from continuing operations to Adjusted EBITDA

Net income from continuing operations $ 0.4 $ 14.8

Provision for income taxes 20.2 4.6

Interest expense, net 8.4 7.9

Depreciation and amortization 20.7 18.5

EBITDA 49.7 45.8

Net loss on asset disposals (a)

Transaction and other related costs (b)

Equity-based compensation 2.3 2.3

Restructuring, integration and business optimization expenses (c)

Adjusted EBITDA $ 57.5 $ 48.7

(a) When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use.

(b) Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations.

(c) Includes the impact of restructuring, integration and business optimization expenses, which are incremental costs that are not representative of our ongoing business operations.

(d) Other consists of adjustments for items that are not core to our ongoing business operations.

These adjustments include environmental remediation and other legal costs, expenses for capital and franchise taxes, and defined benefit pension and postretirement plan (benefits) costs, for which our obligations are under plans that are frozen.

Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions).

Adjusted Net Income

Summarized Adjusted Net Income information is shown below in the following table:

Three months ended September 30,

Pre-tax amount Tax expense (benefit) After-tax amount Pre-tax amount Tax expense (benefit) After-tax amount

(in millions)

Reconciliation of net income from continuing operations to Adjusted Net Income (1)(2)

Net income from continuing operations $ 20.6 $ 20.2 $ 0.4 $ 19.4 $ 4.6 $ 14.8

Net loss on asset disposals (a)

3.6 0.9 2.7 0.2 0.1 0.1

Transaction and other related costs (b)

0.6 0.2 0.4 — — —

Equity-based compensation 2.3 0.6 1.7 2.3 0.6 1.7

Restructuring, integration and business optimization expenses (c)

1.8 0.5 1.3 0.1 — 0.1

(0.3) (0.1) (0.2) — — —

Adjusted Net Income, including intraperiod allocation 28.6 22.3 6.3 22.0 5.3 16.7

Intraperiod allocation for restating discontinued operations (3)

— (15.6) 15.6 — — —

Adjusted Net Income $ 28.6 $ 6.7 $ 21.9 $ 22.0 $ 5.3 $ 16.7

(1) We define Adjusted Net Income as net income from continuing operations adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net income from continuing operations that we do not consider indicative of our ongoing operating performance.

Adjusted Net Income is presented as a key performance indicator as we believe it will enhance a prospective investor’s understanding of our results of operations and financial condition.

Adjusted Net Income may not be comparable with net income from continuing operations or Adjusted Net Income as defined by other companies.

(2) Refer to the Adjusted EBITDA notes above for more information with respect to each adjustment.

(3) Due to reporting the Advanced Materials & Catalysts business as held for sale in discontinued operations, the estimated tax rate used to value deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) needs to be adjusted to remove the Advanced Materials & Catalysts rate.

Additionally, the Company reassessed the realizability of its state deferred tax assets, including Kansas Investment Tax Credits and state Net Operating Losses.

Due to changes in the Company’s state apportionment profile resulting from the Advanced Materials & Catalysts, it was determined that a portion of these deferred tax assets are no longer expected to be realized.

Accordingly, the Company recorded a valuation allowance during the quarter to reflect the reduced expected benefit of these state tax attributes.

Given these are a direct result of the sale of discontinued operations and the need to adjust the estimated tax rate and valuation allowances arose because of discontinued operations, the impacts are reflected in continuing operations.

Due to these revaluations being solely as a result of the Advanced Materials & Catalysts divestiture and a non-cash item, it is treated as an addback.

The adjustments to net income from continuing operations are shown net of applicable tax rates as determined by the calculation of our quarterly tax provision under interim financial reporting for the three months ended September 30, 2025 and September 30, 2024, except for equity-based compensation.

The tax effect on equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within Section 162(m) of the Internal Revenue Code of 1986 (as amended) and adjusting for the tax effect of the equity-based stock compensation net windfall or shortfall which is recorded as a discrete item.

Results of Operations

Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024

The following is a summary of our financial performance for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

• Sales increased $74.7 million to $524.1 million.

The increase in sales primarily reflects higher average selling prices from the pass-through effect of higher sulfur costs, favorable contractual pricing for regeneration services and sales associated with the acquired Waggaman, Louisiana location, partially offset by lower regeneration services volume.

• Gross profit decreased $9.0 million to $111.4 million.

The decrease in gross profit was primarily due to lower regeneration services volume and higher manufacturing costs, partially offset by higher average selling prices.

Operating Income

• Operating income decreased by $19.6 million t o $43.1 million.

The decrease in operating income was due to a decrease in gross profit and higher other operating expense, net, partially offset by lower selling, general and administrative expenses.

The following is our unaudited condensed consolidated statements of (loss) income and a summary of financial results for the nine months ended September 30, 2025 and 2024:

Nine months ended

September 30, Change

March 31, Change

2026 2025 $ %

6 unchanged sentences

Other operating expense, net 4.8 3.6 1.2 33.3 %

Operating income 43.1 62.7 (19.6) (31.3) %

Operating income margin 8.2 % 13.9 %

Operating income (loss) 12.5 (1.0) 13.5 1,350.0 %

Operating income (loss) margin 5.8 % (0.7) %

Interest expense, net 3.2 8.3 (5.1) (61.4) %

Debt modification and extinguishment costs — 1.0 (1.0) (100.0) %

Other (income) expense, net (0.3) 0.6 (0.9) (150.0) %

Income before income taxes 17.6 30.4 (12.8) (42.1) %

Provision for income taxes 20.0 8.0 12.0 150.0 %

Other expense, net — 0.1 (0.1) (100.0) %

Income (loss) before income taxes 9.3 (10.4) 19.7 189.4 %

Provision (benefit) for income taxes 3.6 (2.3) 5.9 (256.5) %

Effective tax rate 38.4 % 21.6 %

Net (loss) income from continuing operations (2.4) 22.4 (24.8) (110.7) %

Net income (loss) from continuing operations 5.7 (8.1) 13.8 170.4 %

Net (loss) income from discontinued operations, net of tax (1.4) 4.5 (5.9) (131.1) %

Net (loss) income $ (76.9) $ 23.8 $ (100.7) (423.1) %

Sales for the nine months ended September 30, 2025 were $524.1 million, an increase of $74.7 million, or 16.6%, compared to sales of $449.4 million for the nine months ended September 30, 2024.

Net income (loss) $ 4.3 $ (3.6) $ 7.9 219.4 %

Sales for the three months ended March 31, 2026 were $215.0 million, an increase of $71.9 million, or 50.2%, compared to sales of $143.1 million for the three months ended March 31, 2025.

The increase in sales reflects higher average selling prices of $39.7 million, including the pass-through effect of higher sulfur costs of approximately $33 million, and higher sales volume of $32.2 million.

Average selling prices were higher primarily due to the pass-through effect of higher sulfur costs, favorable contract pricing for regeneration services.

Sales volume increase was a result of the contribution of sales volume from the Waggaman location, partially offset by lower regeneration services driven by unplanned and extended customer down-time and maintenance turnaround activity at our facilities.

Gross profit for the nine months ended September 30, 2025 was $111.4 million, a decrease of $9.0 million, or 7.5%, compared to $120.4 million for the nine months ended September 30, 2024.

The decrease in gross profit was primarily driven by higher manufacturing costs of $23.9 million, exclusive of the approximately $49 million of higher sulfur costs, and lower sales volume of $1.8 million, partially offset by higher average selling prices of $16.6 million, exclusive of the pass-through of sulfur costs.

Average selling prices were higher primarily due to the pass-through effect of higher sulfur costs, higher virgin sulfuric acid pricing and favorable contract pricing for regenerated sulfuric acid.

Sales volume increase was a result of the contribution of sales volume from the Waggaman, Louisiana location, higher virgin sulfuric acid demand and higher regeneration services driven by less customer down-time compared to the prior year.

Gross profit for the three months ended March 31, 2026 was $36.4 million, an increase of $17.3 million, or 90.6%, compared to $19.1 million for the three months ended March 31, 2025.

The increase in gross profit was primarily driven by higher sales volume of $14.6 million and higher average selling prices of $6.7 million, exclusive of the approximately $33 million of higher sulfur costs, partially offset by higher manufacturing costs of $4.0 million, exclusive of the pass-through of sulfur costs.

The cost of sulfur is generally passed-through to customers at the same rate as incurred resulting in no net impact to gross profit.

Higher manufacturing costs were driven by additional fixed costs from the Waggaman location, general inflation, maintenance and transportation.

Higher manufacturing costs were driven by additional fixed costs from the Waggaman, Louisiana location, higher total turnaround costs of approximately $2 million, general inflation and higher transportation costs.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the nine months ended September 30, 2025 and 2024 were $49.8 million.

Selling, general and administrative expenses for the three months ended March 31, 2026 were $19.1 million, an increase of $2.6 million, compared to $16.5 million for the three months ended March 31, 2025 .

The increase in selling, general and administrative expenses was mainly driven by an increase in stock compensation of $0.9 million, other compensation-related expenses of $1.2 million and other expenses of $0.5 million.

Other Operating Expense, Net

Other operating expense, net for the nine months e nded September 30, 2025 was $18.5 million, an increase of $10.6 million, compared to $7.9 million for the nine months ended September 30, 2024.

The increase in other operating expense, net was mainly driven by an increase in loss on disposal of assets of $3.2 million, transaction and integration costs associated with the Waggaman location of $4.1 million, and other costs of $3.3 million primarily related to restructuring and tax charges.

Other operating expense, net for the three months e nded March 31, 2026 was $4.8 million , an increase of $1.2 million , compared to $3.6 million for the three months ended March 31, 2025.

The increase in other operating expense, net was mainly driven by an increase in transaction costs of $0.4 million and an increase in other costs of $0.8 million primarily related to integration, restructuring and legal charges.

Interest Expense, Net

Interest expense, net for the nine months ended September 30, 2025 was $24.8 million, a decrease of $2.3 million, as compared to $27.1 million for the nine months ended September 30, 2024.

The decrease in interest expense, net was primarily due to the year over year decrease in variable rates in part due to the reduction in our spread associated with the 2025 Term Loan refinancing transactions and lower outstanding debt during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, partially offset by lower benefit from our interest rate caps.

Interest expense, net for the three months ended March 31, 2026 was $3.2 million , a decrease of $5.1 million , as compared to $8.3 million for the three months ended March 31, 2025.

The decrease in interest expense, net was primarily due to the year over year lower outstanding debt during the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.

Debt Modification and Extinguishment Costs

Debt modification and extinguishment costs for the nine months ended September 30, 2025 were $1.0 million, a decrease of $3.6 million, as compared to $4.6 million for the nine months ended September 30, 2024 .

There were no debt modification and extinguishment costs for the three months ended March 31, 2026, compared to $1.0 million for the three months ended March 31, 2025 .

On January 30, 2025, we amended our existing senior secured term loan facility to reduce the applicable interest rates.

The Company evaluated the terms of the amendment in accordance with ASC 470-50 Debt - Modification and Extinguishment and determined that the amendment was a modification of debt.

As a result, we recorded $1.0 million of third-party financing fees within debt modification and extinguishment costs in the condensed consolidated statements of (loss) income during the nine months ended September 30, 2025.

On June 12, 2024, we amended our existing senior secured term loan facility to reduce the applicable interest rates and extend the maturity of the facility to June 2031.

The Company evaluated the terms of the amendment in accordance with ASC 470-50 Debt - Modification and Extinguishment and determined that the amendment was primarily a modification of debt.

As a result, we recorded $4.5 million of third-party financing fees within debt modification and extinguishment costs in the condensed consolidated statements of (loss) income during the nine months ended September 30, 2024 .

In addition, previously unamortized deferred financing costs and original issue discount of $0.1 million associated with the existing senior secured term loan facility were written off as debt extinguishment costs for the nine months ended September 30, 2024.

Other (Income) Expense, Net

Other income, net for the nine months ended September 30, 2025 was $0.3 million, a change of $0.9 million, as compared to $0.6 million of other expense for the nine months ended September 30, 2024 .

Provision For Income Taxes

The provision for income taxes for the nine months ended September 30, 2025 was $20.0 million, compared to $8.0 million for the nine months ended September 30, 2024.

The effective income tax rate for the nine months ended September 30, 2025 was 113.4%, compared to 26.4% for the nine months ended September 30, 2024.

The Company’s effective income tax rate for the nine months ended September 30, 2025 and 2024, respectively, fluctuated primarily due to an increased discrete tax impact relative to pre-tax book income.

The discrete tax items relate to a stock compensation shortfall, intraperiod allocation revaluation of deferred tax assets and liabilities including valuation allowances as a result of the Advanced Materials & Catalysts divestiture, tax expense associated with the recording of accrued penalties and interest on historical uncertain tax positions, and a tax benefit related to state tax refunds associated with prior tax years.

The total tax expense for the nine months ended September 30, 2025 includes a $15.6 million discrete tax expense connected to intraperiod allocation associated with the revaluation of deferred tax assets and liabilities, a valuation allowance against the Company’s Kansas Investment Tax Credits, and an increase in valuation allowance against a portion of the Company’s state net operating losses.

In accordance with intraperiod allocation rules, this discrete tax expense is reflected in the tax provision for continuing operations.

We evaluated the terms of the amendment in accordance with ASC 470-50 Debt - Modification and Extinguishment and determined that the amendment was a modification of debt.

As a result, we recorded $1.0 million of third-party financing fees within debt modification and extinguishment costs in the condensed consolidated statements of income (loss) during the three months ended March 31, 2025.

Other Expense, Net

There was no other expense, net for the three months ended March 31, 2026, compared to $0.1 million of other expense, net for the three months ended March 31, 2025 .

Provision (Benefit) For Income Taxes

The provision for income taxes for the three months ended March 31, 2026 was $3.6 million, compared to a benefit for income taxes of $2.3 million for the three months ended March 31, 2025.

The effective income tax rate for the three months ended March 31, 2026 was 38.4%, compared to 21.6% for the three months ended March 31, 2025.

Our effective income tax rate for the three months ended March 31, 2026 and 2025, respectively, fluctuated primarily due to the increased discrete tax impact relative to pre-tax book income related to a stock compensation shortfall.

The difference between the U.S.

federal statutory income tax rate and the Company’s effective income tax rate for the nine months ended September 30, 2025 was mainly due to state and local taxes, shortfall tax expense related to stock compensation, tax benefit related to state tax refunds associated with prior tax years, discrete tax expense related to intraperiod allocation associated with the revaluation of deferred tax assets and liabilities, a valuation allowance against the Company’s Kansas Investment Tax Credits, and a valuation allowance against a portion of the Company’s state net operating losses.

Net (Loss) Income From Continuing Operations

For the foregoing reasons, net loss from continuing operations was $2.4 million for the nine months ended September 30, 2025, compared to net income from continuing operations of $22.4 million for the nine months ended September 30, 2024.

Adjusted EBITDA

Summarized Adjusted EBITDA information is shown below in the following table:

Nine months ended

September 30, Change

2025 2024 $ %

(in millions, except percentages)

federal statutory income tax rate and our effective income tax rate for the three months ended March 31, 2026 was mainly due to state and local taxes and a shortfall tax expense related to stock compensation impacting the effective income tax rate by 13%.

Net Income (Loss) From Continuing Operations

For the foregoing reasons, net income from continuing operations was $5.7 million for the three months ended March 31, 2026, compared to net loss from continuing operations of $8.1 million for the three months ended March 31, 2025.

Adjusted EBITDA

Ecoservices $ 141.9 $ 146.3 $ (4.4) (3.0) %

Unallocated corporate expenses (21.2) (21.4) 0.2 0.9 %

Total $ 120.7 $ 124.9 $ (4.2) (3.4) %

(1) We define Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation below.

Our management evaluates the performance of our segments and allocates resources based primarily on Adjusted EBITDA.

Adjusted EBITDA does not represent cash flow for periods presented and should not be considered as an alternative to net (loss) income from continuing operations as an indicator of our operating performance or as an alternative to cash flows as a source of liquidity.

Adjusted EBITDA may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies.

Adjusted EBITDA for the nine months ended September 30, 2025 was $141.9 million, a decrease of $4.4 million, or 3.0%, compared to $146.3 million for the nine months ended September 30, 2024.

The decrease in Adjusted EBITDA was driven by lower volumes in regeneration services driven by unplanned and extended customer down-time and maintenance turnaround activity at our facilities and higher manufacturing costs driven by general inflation, maintenance and transportation, partially offset by favorable contractual pricing in regeneration services.

A reconciliation of net (loss) income from continuing operations to Adjusted EBITDA is as follows:

Nine months ended

September 30,

Adjusted EBITDA for the three months ended March 31, 2026 was $39.8 million, an increase of $18.5 million, or 86.9%, compared to $21.3 million for the three months ended March 31, 2025.

The increase in Adjusted EBITDA was driven by higher sales volume of virgin and regenerated sulfuric acid driven by higher demand, less customer down-time, and contribution from the Waggaman, Louisiana location.

In addition, higher virgin sulfuric acid pricing and favorable contractual pricing for regenerated sulfuric acid contributed to the increase.

This was partially offset by higher manufacturing costs driven by higher turnaround costs, along with general inflation and higher transportation costs.

A reconciliation of net income (loss) from continuing operations to Adjusted EBITDA is as follows:

Three months ended

(in millions)

Reconciliation of net (loss) income from continuing operations to Adjusted EBITDA

Net (loss) income from continuing operations $ (2.4) $ 22.4

Provision for income taxes 20.0 8.0

Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA

Net income (loss) from continuing operations $ 5.7 $ (8.1)

Provision (benefit) for income taxes 3.6 (2.3)

Interest expense, net 3.2 8.3

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Adjusted EBITDA (1)

$ 39.8 $ 21.3

(a) When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use.

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Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions).

(1) We define Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation above.

Adjusted EBITDA does not represent cash flow for periods presented and should not be considered as an alternative to net income (loss) from continuing operations as an indicator of our operating performance or as an alternative to cash flows as a source of liquidity.

Adjusted EBITDA may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies.

Adjusted Net Income

Summarized Adjusted Net Income information is shown below in the following table:

Nine months ended September 30,

Three months ended March 31,

Pre-tax amount Tax expense (benefit) After-tax amount Pre-tax amount Tax expense (benefit) After-tax amount

(in millions)

Reconciliation of net (loss) income from continuing operations to Adjusted Net Income (1)(2)

Net (loss) income from continuing operations $ 17.6 $ 20.0 $ (2.4) $ 30.4 $ 8.0 $ 22.4

Reconciliation of net income (loss) from continuing operations to Adjusted Net Income (1)(2)

Net income (loss) from continuing operations $ 9.3 $ 3.6 $ 5.7 $ (10.4) $ (2.3) $ (8.1)

Debt modification and extinguishment costs — — — 1.0 0.2 0.8

7 unchanged sentences

1.0 0.2 0.8 0.5 0.1 0.4

Adjusted Net Income, including intraperiod allocation 37.8 24.1 13.7 44.8 11.3 33.5

Intraperiod allocation for restating discontinued operations (3)

— (15.6) 15.6 — — —

Adjusted Net Income $ 16.1 $ 3.9 $ 12.2 $ (5.3) $ (1.4) $ (3.9)

(1) We define Adjusted Net Income as net (loss) income from continuing operations adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net (loss) income from continuing operations that we do not consider indicative of our ongoing operating performance.

(1) We define Adjusted Net Income as net income (loss) from continuing operations adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net income (loss) from continuing operations that we do not consider indicative of our ongoing operating performance.

Adjusted Net Income is presented as a key performance indicator as we believe it will enhance a prospective investor’s understanding of our results of operations and financial condition.

Adjusted Net Income may not be comparable with net (loss) income from continuing operations or Adjusted Net Income as defined by other companies.

Adjusted Net Income may not be comparable with net income (loss) from continuing operations or Adjusted Net Income as defined by other companies.

(2) Refer to the Adjusted EBITDA notes above for more information with respect to each adjustment.

(3) Due to reporting the Advanced Materials & Catalysts business as held for sale in discontinued operations, the estimated tax rate used to value DTAs and DTLs needs to be adjusted to remove the Advanced Materials & Catalysts rate.

Additionally, the Company reassessed the realizability of its state deferred tax assets, including Kansas Investment Tax Credits and state Net Operating Losses.

Accordingly, the Company recorded a valuation allowance during the quarter to reflect the reduced expected benefit of these state tax attributes.

Due to these revaluations being solely as a result of the Advanced Materials & Catalysts divestiture and a non-cash item, it is treated as an addback.

The adjustments to net (loss) income from continuing operations are shown net of applicable tax rates of 25.6% and 25.1% for the nine months ended September 30, 2025 and 2024, respectively, except for equity-based compensation.

The adjustments to net income (loss) from continuing operations are shown net of applicable tax rates of 25.4% and 25.0% for the three months ended March 31, 2026 and 2025, respectively, except for equity-based compensation.

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We may, from time to time, increase borrowings under our ABL Facility to meet our future cash needs.

As of September 30, 2025, we had cash and cash equivalents of $99.1 million, including $82.0 million cash and cash equivalents from continuing operations and $17.1 million of cash and cash equivalents from discontinued operations, and availability of $85.6 million under our ABL Facility, after giving effect to $3.3 million of outstanding letters of credit, for a total available liquidity of $184.7 million.

We did not have any revolving credit facility borrowings as of September 30, 2025.

As of September 30, 2025, we were in compliance with all covenants under our debt agreements.

Prior to April 10, 2025, our ABL Facility had one financial covenant with two ratios to maintain.

The first ratio compared the total ABL availability against a threshold:

the greater of 10% of the line cap (which was defined as the lesser of our revolving loan commitments and the value of our assets) or $10.0 million.

As of March 31, 2026, we had cash and cash equivalents of $162.6 million and availability of $74.3 million under our ABL Facility, after giving effect to $2.2 million of outstanding letters of credit, for a total available liquidity of $236.9 million.

We did not have any revolving credit facility borrowings as of March 31, 2026.

As of March 31, 2026, we were in compliance with all covenants under our debt agreements.

Our ABL Facility has one financial covenant with one ratio to maintain.

The ratio compares the total ABL availability against a threshold:

the greater of 10% of the line cap (which is defined as the lesser of our revolving loan commitments and the value of our assets) or $10.0 million.

The greater of this threshold could not be greater than the total availability of the ABL Facility.

The second ratio compared the ABL Facility availability of the U.S.

revolving credit facility against a $7.5 million threshold.

As of September 30, 2025, we were in compliance with the financial covenant under the ABL Facility.

On April 10, 2025, we amended the ABL Facility to, among other things, reallocate all European revolving loan commitments thereunder as U.S.

revolving loan commitments.

As a result of the amendment, on and after April 10, 2025, the U.S.

revolving credit facility comprises all availability of the ABL Facility, and we are only required to comply with the first ratio described above.

As of March 31, 2026, we were in compliance with the financial covenant under the ABL Facility.

The 2025 Term Loan Facility and the ABL Facility contain various restrictive covenants.

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During such time, the Company is required to maintain a fixed-charge coverage ratio of at least 1.0 to 1.0.

The Company was in compliance with all debt covenants under the 2025 Term Loan Facility and the ABL Facility as of September 30, 2025.

Upon the close of the sale of the Advanced Materials & Catalysts business and finalization of net cash proceeds, the Company will be required to provide partial repayment under its 2025 Term Loan Facility.

We have no cash and cash equivalents held in foreign jurisdictions on a continuing operations basis.

The Company was in compliance with all debt covenants under the 2025 Term Loan Facility and the ABL Facility as of March 31, 2026.

We have no cash and cash equivalents held in foreign jurisdictions as of March 31, 2026.

Our liquidity requirements include interest payments related to our debt structure.

As reported, our cash interest paid for the nine months ended September 30, 2025 and 2024 was approximately $34.6 million and $37.0 million, respectively.

As reported, our cash interest paid for the three months ended March 31, 2026 and 2025 was approximately $4.9 million and $12.3 million, respectively.

Before any impact of hedges, a one percent change in assumed interest rates for our variable interest credit facilities would have an annual impact of approximately $4.0 million on interest expense.

We hedge the interest rate fluctuations on debt obligations through interest rate cap agreements.

For more information about our interest rate cap agreements, refer to Note 12 — Financial Instruments of our condensed consolidated financials statements included in Part 1, Item 1 — Financial Statements (Unaudited).

For more information about our interest rate cap agreements, refer to Note 12 — Financial Instruments of our condensed consolidated financial statements included in Part 1, Item 1 — Financial Statements (Unaudited).

Off-Balance Sheet Arrangements

The Company’s off-balance sheet arrangements include $3.3 million of outstanding letters of credit on our ABL Facility as of September 30, 2025.

Nine months ended

September 30,

The Company’s off-balance sheet arrangements include $2.2 million of outstanding letters of credit on our ABL Facility as of March 31, 2026.

Three months ended

(in millions)

9 unchanged sentences

Financing activities — (0.8)

Effect of exchange rate changes on cash and cash equivalents 0.5 —

Net change in cash and cash equivalents (34.6) (18.5)

4 unchanged sentences

The following discussions related to our cash flows are presented on a continuing operations basis, which excludes the cash flows from our Advanced Materials & Catalysts businesses accounted for as discontinued operations.

Net cash provided by operating activities was $77.5 million for the nine months ended September 30, 2025, compared to $66.0 million for the nine months ended September 30, 2024.

Cash generated by operating activities, other than changes in working capital, was higher by $5.9 million during the nine months ended September 30, 2025, as compared to the same period in the prior year primarily due higher earnings exclusive of non-cash expenses.

The increase in cash from working capital during the nine months ended September 30, 2025 of $5.6 million was favorable compared to the nine months ended September 30, 2024 primarily due to favorable changes in accounts payable and accrued liabilities, partially offset by unfavorable changes in receivables.

Net cash provided by operating activities was $19.6 million for the three months ended March 31, 2026, compared to $6.7 million for the three months ended March 31, 2025.

Cash generated by operating activities, other than changes in working capital, was higher by $14.7 million during the three months ended March 31, 2026, as compared to the same period in the prior year primarily due to higher earnings exclusive of non-cash expenses.

The decrease in cash from working capital during the three months ended March 31, 2026 of $1.6 million was unfavorable compared to the three months ended March 31, 2025 primarily due to unfavorable changes in receivables and inventories, partially offset by favorable changes in accounts payable and accrued liabilities.

The unfavorable change in inventory was primarily due to the effect of higher sulfur costs and timing of sales orders and inventory usage.

The unfavorable change in receivables was driven by higher sulfur cost pass through and the timing of collection of sales.

The favorable change in accounts payable was due to the timing of vendor payments.

The favorable change in accrued liabilities mainly relates to the timing of payments for interest and other expenses.

The unfavorable change in receivables was driven by the timing of collection of sales.

Net cash used in investing activities was $92.9 million for the nine months ended September 30, 2025, compared to $43.0 million during the same period in 2024.

Net cash used in investing activities primarily consisted of $51.6 million and $43.0 million to fund capital expenditures during the nine months ended September 30, 2025 and 2024, respectively.

During the nine months ended September 30, 2025, we acquired the sulfuric acid production assets of Cornerstone Chemical Company LLC located at Waggaman, Louisiana for $41.3 million.

Net cash used in financing activities was $35.1 million for the nine months ended September 30, 2025, compared to $12.7 million during the same period in 2024.

The unfavorable change in net cash used in financing activities was primarily driven by higher repurchases of the Company’s common stock during the during the nine months ended September 30, 2025.

September 30,

Net cash used in investing activities was $14.1 million for the three months ended March 31, 2026, compared to $17.1 million during the same period in 2025.

Net cash used in investing activities consisted of $14.1 million and $17.1 million to fund capital expenditures during the three months ended March 31, 2026 and 2025, respectively.

Net cash used in financing activities was $37.4 million for the three months ended March 31, 2026, compared to $3.7 million during the same period in 2025.

The unfavorable change in net cash used in financing activities was primarily driven by higher repurchases of the Company’s common stock during the three months ended March 31, 2026, partially offset by lower debt principal payments during the three months ended March 31, 2026

2026 December 31,

5 unchanged sentences

Deferred financing costs (1.5) (1.6)

Total debt, net of original issue discount and deferred financing costs 854.8 860.8

current portion (8.7) (8.7)

Total long-term debt, excluding current portion $ 846.1 $ 852.1

As of September 30, 2025, our total debt was $864.3 million, excluding the original issue discount of $6.5 million and deferred financing costs of $3.0 million for our senior secured credit facilities.

Our net debt as of September 30, 2025 was $782.3 million, which reflects our total debt less cash and cash equivalents of $82.0 million.

Total long-term debt, net of original issue discount and deferred financing costs $ 392.8 $ 392.6

As of March 31, 2026, our total debt was $397.1 million, excluding the original issue discount of $2.8 million and deferred financing costs of $1.5 million for our senior secured credit facilities.

Our net debt as of March 31, 2026 was $234.5 million, which reflects our total debt of $397.1 million less cash and cash equivalents of $162.6 million.

We may seek, subject to market conditions and other factors, opportunities to repurchase, refinance or otherwise reprice our debt.

3 unchanged sentences

These capital expenditures represent our “book” capital expenditures for which the Company has recorded, but not necessarily paid for the capital expenditures.

Nine months ended

September 30,

Three months ended

(in millions)

3 unchanged sentences

Capital expenditures remained at a level sufficient for required maintenance and certain expansion growth initiatives during these periods.

Maintenance capital expenditures were higher in the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 due to turnaround activities in 2025.

Maintenance capital expenditures were lower in the three months ended March 31, 2026, compared to the three months ended March 31, 2025 due to timing of capital projects in 2025.

Critical Accounting Policies and Estimates

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Actual results may differ from these estimates under different assumptions or conditions.

While there has been no material change in our critical accounting policies and use of estimates from those described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K, we continually evaluate our critical accounting estimates, assumptions and judgments on an ongoing basis.

The Company completes its annual goodwill and indefinite-lived intangible assets impairment test during the fourth quarter of each year, or more frequently if triggering events indicate a possible impairment.

The Company determines the fair value of its reporting units using both a market approach and an income, or discounted cash flow, approach.

As of October 1, 2024, the date of the Company’s most recent quantitative assessments, the fair values of each of the Company’s reporting unit and the fair values of the Company’s indefinite-lived trade names and trademarks exceeded their respective carrying values.

During the nine months ended September 30, 2025, the Company did not identify any events or circumstances that would more likely than not reduce the fair value of the Company’s reporting units or intangible assets below their respective carrying values.

There has been no material change in our critical accounting policies and use of estimates from those described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K.

Accounting Standards Not Yet Adopted

1 unchanged sentence

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