What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-07-30 compared with 2026-04-30 · 316 added, 141 removed, 827 unchanged (36% of the section changed)

3 unchanged sentences

(in thousands, except per share amounts)

Three Months Ended

March 29, 2026 March 30, 2025

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Net sales $ 2,787,306 $ 2,614,718 $ 5,891,473 $ 5,420,137

26 unchanged sentences

(in thousands)

For the Three Months Ended

March 29, 2026 March 30, 2025

Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount

For the Three Months Ended For the Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount

Net income $ 457,665 $ 62,719 $ 892,770 $ 286,922

15 unchanged sentences

(in thousands, except share data)

March 29, 2026 December 31, 2025

June 28, 2026 December 31, 2025

Current assets:

27 unchanged sentences

Common stock, shares issued:

166,939,511 at March 29, 2026 and December 31, 2025

166,939,511 at June 28, 2026 and December 31, 2025

166,939 166,939

Class B common stock, shares issued:

54,613,514 at March 29, 2026 and December 31, 2025

54,613,514 at June 28, 2026 and December 31, 2025

54,614 54,614

2 unchanged sentences

Treasury—common stock shares, at cost:

18,715,197 at March 29, 2026 and 18,713,369 at December 31, 2025

20,637,517 at June 28, 2026 and 18,713,369 at December 31, 2025

( 2,689,761 ) ( 2,259,553 )

7 unchanged sentences

(in thousands)

Three Months Ended

March 29, 2026 March 30, 2025

Six Months Ended

June 28, 2026 June 29, 2025

Operating Activities

4 unchanged sentences

Deferred income taxes 35,462 ( 16,036 )

Unrealized losses on derivative contracts 105,204 270,794

Unrealized (gains) losses on derivative contracts ( 10,185 ) 464,739

Other 60,799 42,761

11 unchanged sentences

Receipts related to equity investments in tax credit qualifying partnerships 8,498 9,026

Purchase of intangible assets — ( 73,597 )

Other investing activities ( 3,634 ) ( 6,595 )

1 unchanged sentence

Financing Activities

Net decrease in short-term debt ( 48,001 ) ( 1,165,724 )

Net increase (decrease) in short-term debt 206,068 ( 1,151,638 )

Long-term borrowings, net of debt issuance costs — 1,984,545

5 unchanged sentences

( 16,705 ) ( 16,197 )

Net cash (used in) provided by financing activities ( 402,844 ) 537,076

Contingent consideration paid ( 16,632 ) —

Net cash used in financing activities ( 828,079 ) ( 22,492 )

Effect of exchange rate changes on cash and cash equivalents 4,874 ( 3,026 )

9 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three Months Ended March 29, 2026 and March 30, 2025

For the Three Months Ended June 28, 2026 and June 29, 2025

(in thousands)

7 unchanged sentences

Stockholders’

Balance, December 31, 2025

Balance, March 29, 2026

$ — $ 166,939 $ 54,614 $ 1,435,194 $ 5,643,428 $ ( 2,316,416 ) $ ( 249,911 ) $ 4,733,848

Net income 457,665 457,665

Other comprehensive loss ( 2,561 ) ( 2,561 )

Other comprehensive income 19,362 19,362

Dividends (including dividend equivalents):

6 unchanged sentences

Repurchase of common stock (including excise tax) ( 374,343 ) ( 374,343 )

Balance, June 28, 2026

$ — $ 166,939 $ 54,614 $ 1,447,283 $ 5,814,164 $ ( 2,689,761 ) $ ( 230,549 ) $ 4,562,690

Stock Class B

Stock Additional

Capital Retained

Earnings Treasury

Stock Accumulated Other

Comprehensive

(Loss) Income Total

Stockholders’

Balance, March 30, 2025

$ — $ 166,939 $ 54,614 $ 1,372,137 $ 5,652,065 $ ( 2,269,560 ) $ ( 291,299 ) $ 4,684,896

Net income 62,719 62,719

Other comprehensive income 20,875 20,875

Dividends (including dividend equivalents):

Common Stock, $ 1.370 per share

( 203,921 ) ( 203,921 )

Class B Common Stock, $ 1.245 per share

( 67,994 ) ( 67,994 )

Stock-based compensation 17,555 17,555

Exercise of stock options and incentive-based transactions ( 1,819 ) 2,307 488

Balance, June 29, 2025

$ — $ 166,939 $ 54,614 $ 1,387,873 $ 5,442,869 $ ( 2,267,253 ) $ ( 270,424 ) $ 4,514,618

The Hershey Company | Q2 2026 Form 10-Q | Page 6

THE HERSHEY COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Six Months Ended June 28, 2026 and June 29, 2025

(in thousands)

Stock Class B

9 unchanged sentences

Net income 892,770 892,770

Other comprehensive loss 12,591 12,591

Other comprehensive income 16,801 16,801

Dividends (including dividend equivalents):

5 unchanged sentences

Exercise of stock options and incentive-based transactions ( 14,060 ) 13,405 ( 655 )

Balance, March 30, 2025

Repurchase of common stock (including excise tax) ( 443,613 ) ( 443,613 )

Balance, June 28, 2026

$ — $ 166,939 $ 54,614 $ 1,447,283 $ 5,814,164 $ ( 2,689,761 ) $ ( 230,549 ) $ 4,562,690

Stock Class B

Stock Additional

Capital Retained

Earnings Treasury

Stock Accumulated Other

Comprehensive

(Loss) Income Total

Stockholders’

Balance, December 31, 2024

$ — $ 166,939 $ 54,614 $ 1,377,226 $ 5,698,316 $ ( 2,278,551 ) $ ( 303,890 ) $ 4,714,654

Net income 286,922 286,922

Other comprehensive income 33,466 33,466

Dividends (including dividend equivalents):

Common Stock, $ 2.740 per share

( 406,381 ) ( 406,381 )

Class B Common Stock, $ 2.490 per share

( 135,988 ) ( 135,988 )

Stock-based compensation 31,202 31,202

Exercise of stock options and incentive-based transactions ( 20,555 ) 11,298 ( 9,257 )

Repurchase of common stock (including excise tax) — —

Balance, June 29, 2025

$ — $ 166,939 $ 54,614 $ 1,387,873 $ 5,442,869 $ ( 2,267,253 ) $ ( 270,424 ) $ 4,514,618

The Hershey Company | Q2 2026 Form 10-Q | Page 7

12 unchanged sentences

The financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in our opinion, necessary for a fair presentation of the results of operations, financial position, and cash flows for the indicated periods.

Operating results for the quarter ended March 29, 2026 may not be indicative of the results that may be expected for the year ending December 31, 2026 because of seasonal effects on our business.

Operating results for the quarter ended June 28, 2026 may not be indicative of the results that may be expected for the year ending December 31, 2026 because of seasonal effects on our business.

These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 (our “2025 Annual Report on Form 10-K”), which provides a more complete understanding of our accounting policies, financial position, operating results and other matters.

36 unchanged sentences

The acquisition has been accounted for as a business combination and, accordingly, LesserEvil has been included within the North America Salty Snacks segment from the date of acquisition.

The purchase consideration, inclusive of the acquisition date fair value of the contingent consideration and certain holdbacks, was allocated to assets acquired and liabilities assumed based on their respective fair values as follows:

Initial Allocation

The purchase consideration, inclusive of the acquisition date fair value of the contingent consideration, was allocated to assets acquired and liabilities assumed based on their respective fair values as follows:

Initial Allocation (1) Adjustments Final Allocation

Goodwill $ 289,142 $ ( 7,213 ) $ 281,929

7 unchanged sentences

Net assets acquired $ 815,150 $ ( 5,000 ) $ 810,150

The purchase price allocation presented above is preliminary.

We are in the process of evaluating additional information necessary to finalize the valuation of assets acquired and liabilities assumed as of the acquisition date including, but not limited to, post-closing adjustments to the working capital acquired including certain holdbacks, as well as the valuation and step-up on property, plant and equipment.

The final fair value determination could result in material adjustments to the values presented in the preliminary purchase price allocation, including other intangible assets and goodwill.

We expect to finalize the purchase price allocation by mid-2026.

(1) As reported in the Company’s 2025 Annual Report on Form 10-K.

The purchase price allocation presented above has been finalized as of the second quarter of 2026.

The measurement period adjustments to the initial allocation were based on more detailed information obtained about the specific assets acquired and liabilities assumed, specifically, post-closing adjustments to the working capital acquired including certain holdbacks, as well as the valuation and step-up on property, plant and equipment.

Goodwill was determined as the excess of the purchase price over the fair value of the net assets acquired (including the identifiable intangible assets).

24 unchanged sentences

GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying value of goodwill by reportable segment for the three months ended March 29, 2026 are as follows:

The changes in the carrying value of goodwill by reportable segment for the six months ended June 28, 2026 are as follows:

North America Confectionery North America Salty Snacks International Total

1 unchanged sentence

$ 2,039,098 $ 946,143 $ 10,764 $ 2,996,005

Measurement period adjustments — ( 7,213 ) — ( 7,213 )

Foreign currency translation ( 3,510 ) — 327 ( 3,183 )

Balance at March 29, 2026

Balance at June 28, 2026

$ 2,035,588 $ 938,930 $ 11,091 $ 2,985,609

4 unchanged sentences

The following table provides the gross carrying amount and accumulated amortization for each major class of intangible asset:

March 29, 2026 December 31, 2025

June 28, 2026 December 31, 2025

Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization

8 unchanged sentences

$ 2,425,103 $ 2,475,698

Total amortization expense for the three months ended March 29, 2026 and March 30, 2025 was $ 24,974 and $ 20,568 , respectively.

Total amortization expense for the three months ended June 28, 2026 and June 29, 2025 was $ 24,972 and $ 21,188 , respectively.

Total amortization expense for the six months ended June 28, 2026 and June 29, 2025 was $ 49,946 and $ 41,756 , respectively.

SHORT AND LONG-TERM DEBT

1 unchanged sentence

As a source of short-term financing, we utilize cash on hand and commercial paper or bank loans with an original maturity of three months or less.

As of March 29, 2026, we maintained a $ 1.875 billion unsecured revolving credit facility with the option to increase the aggregate amount of the commitments by up to $ 1 billion with the consent of the lenders.

As of June 28, 2026, we maintained a $ 1.875 billion unsecured revolving credit facility with the option to increase the aggregate amount of the commitments by up to $ 1 billion with the consent of the lenders.

The credit facility is scheduled to expire on October 21, 2030;

1 unchanged sentence

The credit agreements governing the credit facility contain certain financial and other covenants, customary representations, warranties and events of default.

As of March 29, 2026, we were in compliance with all covenants pertaining to the credit facility, and we had no significant compensating balance agreements that legally restricted access to these funds.

As of June 28, 2026, we were in compliance with all covenants pertaining to the credit facility, and we had no significant compensating balance agreements that legally restricted access to these funds.

For more information, refer to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K.

In addition to the revolving credit facility, we maintain lines of credit with domestic and international commercial banks.

We had short-term foreign bank loans against these lines of credit for $ 169,455 at March 29, 2026 and $ 218,546 at December 31, 2025.

Commitment fees relating to our revolving credit facility and lines of credit are not material.

As of March 29, 2026 and December 31, 2025, we had no outstanding commercial paper.

Short-term debt consisted of the following:

June 28, 2026

December 31, 2025

Short-term foreign bank borrowings against lines of credit $ 157,274 $ 218,546

commercial paper 264,271 —

Total short-term debt $ 421,545 $ 218,546

Weighted average interest rate on outstanding commercial paper 3.7 % — %

The Hershey Company | Q2 2026 Form 10-Q | Page 11

6 unchanged sentences

Maturity Date

March 29, 2026 December 31, 2025

June 28, 2026 December 31, 2025

2.300 % Notes

32 unchanged sentences

Net interest expense consists of the following:

Three Months Ended

March 29, 2026 March 30, 2025

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Interest expense $ 57,813 $ 60,445 $ 114,689 $ 115,361

19 unchanged sentences

We generally hedge commodity price risks for 3 - to 24-month periods.

Our open commodity derivative contracts had a notional value of $ 925,182 as of March 29, 2026 and $ 973,083 as of December 31, 2025.

Our open commodity derivative contracts had a notional value of $ 504,114 as of June 28, 2026 and $ 973,083 as of December 31, 2025.

Derivatives used to manage commodity price risk are not designated for hedge accounting treatment.

7 unchanged sentences

The contracts are either designated as cash flow hedges or are undesignated.

The net notional amount of foreign exchange contracts accounted for as cash flow hedges was $ 157,838 at March 29, 2026 and $ 223,962 at December 31, 2025.

The net notional amount of foreign exchange contracts accounted for as cash flow hedges was $ 83,907 at June 28, 2026 and $ 223,962 at December 31, 2025.

The effective portion of the changes in fair value on these contracts is recorded in other comprehensive income and reclassified into earnings in the same period in which the hedged transactions affect earnings.

The net notional amount of foreign exchange contracts that are not designated as accounting hedges was $ 63,653 at March 29, 2026 and $ 59,970 at December 31, 2025.

The net notional amount of foreign exchange contracts that are not designated as accounting hedges was $ 61,888 at June 28, 2026 and $ 59,970 at December 31, 2025.

The change in fair value on these instruments is recorded directly in cost of sales or selling, marketing and administrative (“SM&A”) expense, depending on the nature of the underlying exposure.

7 unchanged sentences

The change in fair value of these derivatives is recorded in SM&A expense, together with the change in the related liabilities.

The notional amount of the contracts outstanding at March 29, 2026 and December 31, 2025 was $ 37,119 and $ 35,896 , respectively.

The notional amount of the contracts outstanding at June 28, 2026 and December 31, 2025 was $ 34,251 and $ 35,896 , respectively.

The Hershey Company | Q2 2026 Form 10-Q | Page 13

2 unchanged sentences

(amounts in thousands, except share data or if otherwise indicated)

The following table presents the classification of derivative assets and liabilities within the Consolidated Balance Sheets as of March 29, 2026 and December 31, 2025:

March 29, 2026 December 31, 2025

The following table presents the classification of derivative assets and liabilities within the Consolidated Balance Sheets as of June 28, 2026 and December 31, 2025:

June 28, 2026 December 31, 2025

Assets (1) Liabilities (1) Assets (1) Liabilities (1)

9 unchanged sentences

Derivative liabilities are classified on our Consolidated Balance Sheets within accrued liabilities and other long-term liabilities.

(2) As of March 29, 2026, amounts reflected on a net basis in liabilities were assets of $ 96,101 and liabilities of $ 214,024 , which are associated with cash transfers receivable or payable on commodities futures contracts reflecting the change in quoted market prices on the last trading day for the period.

(2) As of June 28, 2026, amounts reflected on a net basis in liabilities were assets of $ 48,630 and liabilities of $ 60,643 , which are associated with cash transfers receivable or payable on commodities futures contracts reflecting the change in quoted market prices on the last trading day for the period.

The comparable amounts reflected on a net basis in liabilities at December 31, 2025 were assets of $ 46,467 and liabilities of $ 63,531 .

At March 29, 2026 and December 31, 2025, the remaining amount reflected in assets and liabilities related to the fair value of other non-exchange traded derivative instruments, respectively.

At June 28, 2026 and December 31, 2025, the remaining amount reflected in assets and liabilities related to the fair value of other non-exchange traded derivative instruments, respectively.

Income Statement Impact of Derivative Instruments

The effect of derivative instruments on the Consolidated Statements of Income for the three months ended June 28, 2026 and June 29, 2025 was as follows:

Non-designated Hedges Cash Flow Hedges

Gains (losses) recognized in income (a) Gains (losses) recognized in other comprehensive income (“OCI”) Gains (losses) reclassified from accumulated OCI (“AOCI”) into income (b)

2026 2025 2026 2025 2026 2025

Commodities futures and options

$ 85,867 $ ( 31,545 ) $ — $ — $ — $ —

Foreign exchange contracts 223 4,432 ( 2,167 ) ( 6,305 ) ( 4,358 ) ( 246 )

Interest rate swap agreements

— — — — ( 1,984 ) ( 2,274 )

Deferred compensation derivatives

5,985 2,876 — — —

$ 92,075 $ ( 24,237 ) $ ( 2,167 ) $ ( 6,305 ) $ ( 6,342 ) $ ( 2,520 )

The Hershey Company | Q2 2026 Form 10-Q | Page 14

2 unchanged sentences

(amounts in thousands, except share data or if otherwise indicated)

Income Statement Impact of Derivative Instruments

The effect of derivative instruments on the Consolidated Statements of Income for the three months ended March 29, 2026 and March 30, 2025 was as follows:

The effect of derivative instruments on the Consolidated Statements of Income for the six months ended June 28, 2026 and June 29, 2025 was as follows:

Non-designated Hedges Cash Flow Hedges

13 unchanged sentences

Losses reclassified from AOCI into income for interest rate swap agreements were included in interest expense.

The amount of pre-tax net loss on derivative instruments, including interest rate swap agreements and foreign currency forward exchange contracts expected to be reclassified into earnings in the next 12 months was approximately $ 2,686 as of March 29, 2026.

This amount is primarily associated with interest rate swap agreements.

9 unchanged sentences

(amounts in thousands, except share data or if otherwise indicated)

The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheets on a recurring basis as of March 29, 2026 and December 31, 2025:

The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheets on a recurring basis as of June 28, 2026 and December 31, 2025:

Assets / Liabilities

Level 1 Level 2 Level 3 Total

March 29, 2026:

June 28, 2026:

Derivative Instruments:

Foreign exchange contracts (1) $ — $ 2,856 $ — $ 2,856

Deferred compensation derivatives (2) $ — $ 5,985 $ — $ 5,985

Commodities futures and options (3) $ 3,932 $ — $ — $ 3,932

Foreign exchange contracts (1) $ — $ 3,443 $ — $ 3,443

Deferred compensation derivatives (2) — 3,270 — 3,270

Commodities futures and options (3) $ 12,720 $ — $ — $ 12,720

1 unchanged sentence

Foreign exchange contracts (1) $ — $ 2,443 $ — $ 2,443

Deferred compensation derivatives (2) $ — $ — $ — $ —

Commodities futures and options (3) $ 465 $ — $ — $ 465

7 unchanged sentences

Other Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximated fair values as of March 29, 2026 and December 31, 2025 because of the relatively short maturity of these instruments.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximated fair values as of June 28, 2026 and December 31, 2025 because of the relatively short maturity of these instruments.

The estimated fair value of our long-term debt is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 within the valuation hierarchy.

1 unchanged sentence

Fair Value Carrying Value

March 29, 2026 December 31, 2025 March 29, 2026 December 31, 2025

June 28, 2026 December 31, 2025 June 28, 2026 December 31, 2025

Current portion of long-term debt $ 503,019 $ 498,788 $ 504,167 $ 503,327

28 unchanged sentences

(amounts in thousands, except share data or if otherwise indicated)

The components of lease expense for the three months ended March 29, 2026 and March 30, 2025 were as follows:

The components of lease expense for the three months ended June 28, 2026 and June 29, 2025 were as follows:

Three Months Ended

Lease expense Classification March 29, 2026 March 30, 2025

Lease expense Classification June 28, 2026 June 29, 2025

Operating lease cost Cost of sales or SM&A (1) $ 16,264 $ 15,815

3 unchanged sentences

Net lease cost (2) $ 19,671 $ 19,032

The components of lease expense for the six months ended June 28, 2026 and June 29, 2025 were as follows:

Six Months Ended

Lease expense Classification June 28, 2026 June 29, 2025

Operating lease cost Cost of sales or SM&A (1) $ 32,646 $ 30,026

Finance lease cost:

Amortization of ROU assets Depreciation and amortization (1) 4,460 4,352

Interest on lease liabilities Interest expense, net 2,340 2,249

Net lease cost (2) $ 39,446 $ 36,627

(1) Supply chain-related amounts were included in cost of sales.

1 unchanged sentence

Information regarding our lease terms and discount rates were as follows:

March 29, 2026 December 31, 2025

June 28, 2026 December 31, 2025

Weighted-average remaining lease term (years)

4 unchanged sentences

Finance leases 6.2 % 6.3 %

The Hershey Company | Q2 2026 Form 10-Q | Page 18

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

Supplemental balance sheet information related to leases were as follows:

Leases Classification March 29, 2026 December 31, 2025

Leases Classification June 28, 2026 December 31, 2025

Operating lease ROU assets Other non-current assets $ 301,914 $ 325,345

8 unchanged sentences

Total lease liabilities $ 388,173 $ 409,018

The Hershey Company | Q1 2026 Form 10-Q | Page 17

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

The maturities of our lease liabilities as of March 29, 2026 were as follows:

The maturities of our lease liabilities as of June 28, 2026 were as follows:

Operating leases Finance leases Total

9 unchanged sentences

Supplemental cash flow and other information related to leases were as follows:

Three Months Ended

March 29, 2026 March 30, 2025

Six Months Ended

June 28, 2026 June 29, 2025

Cash paid for amounts included in the measurement of lease liabilities:

5 unchanged sentences

Finance leases 5,333 62

The Hershey Company | Q2 2026 Form 10-Q | Page 19

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

INVESTMENTS IN UNCONSOLIDATED AFFILIATES

8 unchanged sentences

We regularly review our investments and adjust accordingly for capital contributions, dividends received and other-than-temporary impairments.

Total investments in unconsolidated affiliates were $ 179,399 and $ 176,567 as of March 29, 2026 and December 31, 2025, respectively.

Total investments in unconsolidated affiliates were $ 174,834 and $ 176,567 as of June 28, 2026 and December 31, 2025, respectively.

BUSINESS REALIGNMENT ACTIVITIES

We periodically undertake business realignment activities designed to increase our efficiency and focus our business in support of our key growth strategies.

The Hershey Company | Q1 2026 Form 10-Q | Page 18

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

Advancing Agility & Automation Initiative

5 unchanged sentences

At the conclusion of the program in 2026, ongoing annual savings are expected to be approximately $ 400,000 .

Since inception through March 29, 2026, we recognized total costs associated with the AAA Initiative of $ 190,295 .

Since inception through June 28, 2026, we recognized total costs associated with the AAA Initiative of $ 198,655 .

These charges predominantly included employee severance and related separation benefits related to workforce reductions and third-party costs supporting the design and implementation of the new organizational structure, as well as technology capability costs.

2 unchanged sentences

Costs associated with business realignment activities are classified in our Consolidated Statements of Income as follows:

Three Months Ended

March 29, 2026 March 30, 2025

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Selling, marketing and administrative expense 8,247 14,884 15,605 24,363

1 unchanged sentence

Costs associated with business realignment activities $ 8,362 $ 15,139 $ 21,718 $ 40,992

Costs recorded by program during the three months ended March 29, 2026 and March 30, 2025 related to these activities were as follows:

Three Months Ended

March 29, 2026 March 30, 2025

The Hershey Company | Q2 2026 Form 10-Q | Page 20

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

Costs recorded by program during the three and six months ended June 28, 2026 and June 29, 2025 related to these activities were as follows:

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Advancing Agility & Automation Initiative:

2 unchanged sentences

Total $ 8,362 $ 15,139 $ 21,718 $ 40,992

The following table presents the liability activity for costs qualifying as exit and disposal costs for the three months ended March 29, 2026:

The following table presents the liability activity for costs qualifying as exit and disposal costs for the six months ended June 28, 2026:

Liability balance at December 31, 2025 (1)

1 unchanged sentence

Cash payments ( 2,429 )

Liability balance at March 29, 2026 (1)

Liability balance at June 28, 2026 (1)

(1) The liability balances reflected above are reported within accrued liabilities and other long-term liabilities.

(2) The costs reflected in the liability roll-forward represent employee-related charges.

The Hershey Company | Q1 2026 Form 10-Q | Page 19

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

The majority of our taxable income is generated in the United States and taxed at the United States statutory rate of 21 %.

The effective tax rates for the three months ended March 29, 2026 and March 30, 2025 were 26.6 % and 30.7 %, respectively.

Relative to the statutory rate, the 2026 effective tax rate was primarily impacted by foreign rate differential and state taxes.

The effective tax rates for the six months ended June 28, 2026 and June 29, 2025 were 24.4 % and 39.3 %, respectively.

The 2025 effective tax rate was higher due to the impact of tax reserves and foreign rate differentials related to mark-to-market activity.

Relative to the statutory rate, the 2026 effective tax rate was primarily impacted by state taxes and foreign rate differential.

The Company and its subsidiaries file tax returns in the United States, including various state and local returns, and in other foreign jurisdictions.

3 unchanged sentences

Based on our current assessments, we believe adequate provision has been made for all income tax uncertainties.

One Big Beautiful Bill Act

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

The OBBBA introduces changes to United States tax policy, trade regulations, and federal spending priorities.

Key provisions include the extension and modification of tax provisions from the 2017 Tax Cuts and Jobs Act, modification of certain energy-related tax credits and incentives, and timing of deductions related to certain domestic expenses.

The OBBBA did not have a material impact on the Company’s consolidated financial statements for the three months ended March 29, 2026.

Organization for Economic Cooperation Development

In December 2021, the Organization for Economic Cooperation and Development (“OECD”) introduced Global Anti-Base Erosion and Profit Shifting Pillar Two regulations which aim to ensure that multi-national entities that exceed the threshold revenue levels are subject to a minimum effective tax rate of 15% in jurisdictions where they operate.

The Company is subject to OECD Pillar Two regulations, in certain jurisdictions which have enacted legislation, which may result in additional tax liabilities in jurisdictions where the effective tax rate falls below the 15% threshold.

The Company has evaluated and will continue to monitor the impact of these new rules, including the OECD’s “Side by Side” administrative guidance released in January 2026, but does not anticipate that they will have a material impact on the Company’s effective tax rate.

The Company is subject to OECD Pillar Two regulations, in certain jurisdictions which have enacted legislation.

The existing legislation does not have a material impact on the Company’s effective tax rate.

The Company will continue to monitor impact as additional legislation is enacted, including the “side by side” administrative guidance released by the OECD in January 2026 which would exempt U.S.-parented companies from certain aspects of the global minimum tax regime.

The Hershey Company | Q2 2026 Form 10-Q | Page 21

4 unchanged sentences

Net Periodic Benefit Cost

The components of net periodic benefit cost for the three months ended March 29, 2026 and March 30, 2025 were as follows:

The components of net periodic benefit cost for the three months ended June 28, 2026 and June 29, 2025 were as follows:

Pension Benefits Other Benefits

Three Months Ended Three Months Ended

March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Service cost $ 2,965 $ 3,537 $ 30 $ 29

3 unchanged sentences

Amortization of net loss 1,854 3,554 991 314

Settlement loss 5,883 — — —

Total net periodic benefit cost $ 5,575 $ 3,404 $ 2,181 $ 1,479

We made contributions of $ 465 and $ 2,872 to our pension plans and other benefits plans, respectively, during the first quarter of 2026.

In the first quarter of 2025, we made contributions of $ 689 and $ 2,437 to our pension plans and other benefit plans, respectively.

We made contributions of $ 209 and $ 2,624 to our pension plans and other benefits plans, respectively, during the second quarter of 2026.

In the second quarter of 2025, we made contributions of $ 423 and $ 2,994 to our pension plans and other benefit plans, respectively.

The contributions in 2026 and 2025 also included benefit payments from our non-qualified pension plans and post-retirement benefit plans.

The components of net periodic benefit cost for the six months ended June 28, 2026 and June 29, 2025 were as follows:

Pension Benefits Other Benefits

Six Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Service cost $ 5,942 $ 7,039 $ 60 $ 56

Interest cost 16,002 18,469 2,511 2,460

Expected return on plan assets ( 24,731 ) ( 24,057 ) — —

Amortization of prior service credit ( 1,510 ) ( 1,779 ) ( 194 ) ( 192 )

Amortization of net loss 3,710 7,107 1,981 629

Settlement loss 5,883 — — —

Total net periodic benefit cost $ 5,296 $ 6,779 $ 4,358 $ 2,953

We made contributions of $ 674 and $ 5,496 to our pension plans and other benefits plans, respectively, during the first six months of 2026.

In the first six months of 2025, we made contributions of $ 1,112 and $ 5,431 to our pension plans and other benefit plans, respectively.

The contributions in 2026 and 2025 also included benefit payments from our non-qualified pension plans and post-retirement benefit plans.

The non-service cost components of net periodic benefit cost relating to pension and other post-retirement benefit plans are reflected within other (income) expense, net in the Consolidated Statements of Income (see Note 17 ).

The Hershey Company | Q2 2026 Form 10-Q | Page 22

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

During the first six months of 2026, we recognized pension settlement charges in The Hershey Retirement Plan for Salaried and Hourly Employees due to lump sum withdrawals by employees retiring or leaving the Company.

The non-cash settlement charges, which represent the acceleration of a portion of the respective plan’s accumulated unrecognized actuarial loss, were triggered when the cumulative lump sum distributions exceeded the plan’s anticipated annual service and interest costs.

In connection with the second quarter 2026 settlements, the related plan assets and liabilities were remeasured using a discount rate as of the remeasurement date that was 25 basis points higher than the rate as of December 31, 2025 and an expected rate of return on plan assets of 7.0 %, which was consistent with the rate as of December 31, 2025.

STOCK COMPENSATION PLANS

14 unchanged sentences

In addition, historical data is used to estimate forfeiture rates and record share-based compensation expense only for those awards that are expected to vest.

The Hershey Company | Q1 2026 Form 10-Q | Page 21

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

For the periods presented, compensation expense for all types of stock-based compensation programs and the related income tax benefit recognized were as follows:

Three Months Ended

March 29, 2026 March 30, 2025

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Pre-tax compensation expense

2 unchanged sentences

Compensation expenses for stock compensation plans are primarily included in SM&A expense.

As of March 29, 2026, total stock-based compensation expense related to non-vested awards not yet recognized was $ 132,516 and the weighted-average period over which this amount is expected to be recognized was approximately 2.0 years.

As of June 28, 2026, total stock-based compensation expense related to non-vested awards not yet recognized was $ 107,265 and the weighted-average period over which this amount is expected to be recognized was approximately 1.8 years.

The Hershey Company | Q2 2026 Form 10-Q | Page 23

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

Stock Options

3 unchanged sentences

Expense for stock options is based on grant date fair value and recognized on a straight-line method over the vesting period, net of estimated forfeitures.

A summary of activity relating to grants of stock options for the period ended March 29, 2026 is as follows:

A summary of activity relating to grants of stock options for the period ended June 28, 2026 is as follows:

Stock Options Shares Weighted-Average

2 unchanged sentences

Outstanding at beginning of year 368,560 $ 110.30 2.2 years

Granted 545 $ 208.99

Exercised ( 166,810 ) $ 101.38

Outstanding as of March 29, 2026

Forfeited ( 381 ) $ 220.19

Expired ( 1,858 ) $ 125.05

Outstanding as of June 28, 2026

200,056 $ 117.60 2.1 years $ 12,720

Options exercisable as of March 29, 2026

Options exercisable as of June 28, 2026

195,379 $ 116.09 2.0 years $ 12,678

No options were granted for the periods ended March 29, 2026 and March 30, 2025.

The total intrinsic value of options exercised was $ 17,893 and $ 1,833 for the periods ended March 29, 2026 and March 30, 2025, respectively.

The weighted-average fair value of options granted was $ 46.01 and $ 33.91 per share for the periods ended June 28, 2026 and June 29, 2025 respectively.

The fair value was estimated on the date of grant using a Black-Scholes option-pricing model and the following weighted-average assumptions:

Six Months Ended

June 28, 2026 June 29, 2025

Dividend yields

Expected volatility 24.4 % 22.3 %

Risk-free interest rates

Expected term in years 6.3 6.3

The total intrinsic value of options exercised was $ 18,550 and $ 4,866 for the periods ended June 28, 2026 and June 29, 2025, respectively.

Performance Stock Units and Restricted Stock Units

7 unchanged sentences

For performance-based condition components, we estimate the probability that the performance conditions will be achieved each quarter and adjust compensation expenses accordingly.

The performance scores of PSU grants during the three months ended March 29, 2026 and March 30, 2025 can range from 0 % to 250 % of the targeted amounts.

The performance scores of PSU grants during the six months ended June 28, 2026 and June 29, 2025 can range from 0 % to 250 % of the targeted amounts.

The Hershey Company | Q2 2026 Form 10-Q | Page 24

5 unchanged sentences

The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s Common Stock on the date of grant for performance-based components.

During the three months ended March 29, 2026 and March 30, 2025, we awarded RSUs to certain executive officers and other key employees under the EICP.

During the six months ended June 28, 2026 and June 29, 2025, we awarded RSUs to certain executive officers and other key employees under the EICP.

We also awarded RSUs to non-employee directors.

2 unchanged sentences

The compensation expenses associated with non-employee director RSUs is recognized ratably over the vesting period, net of estimated forfeitures.

A summary of activity relating to grants of PSUs and RSUs for the period ended March 29, 2026 is as follows:

A summary of activity relating to grants of PSUs and RSUs for the period ended June 28, 2026 is as follows:

Performance Stock Units and Restricted Stock Units

7 unchanged sentences

( 84,535 ) $ 184.42

Outstanding as of March 29, 2026

Outstanding as of June 28, 2026

1,024,747 $ 203.18

2 unchanged sentences

In addition, the table provides weighted average assumptions used to determine the fair value of the market-based total shareholder return component using the Monte Carlo simulation model on the date of grant.

Three Months Ended

March 29, 2026 March 30, 2025

Six Months Ended

June 28, 2026 June 29, 2025

Units granted

6 unchanged sentences

Expected volatility 24.6 % 21.7 %

The fair value of shares vested totaled $ 47,478 and $ 46,251 for the periods ended March 29, 2026 and March 30, 2025, respectively.

Deferred PSUs, deferred RSUs and deferred stock units representing directors’ fees totaled 237,602 units as of March 29, 2026.

The fair value of shares vested totaled $ 51,027 and $ 49,576 for the periods ended June 28, 2026 and June 29, 2025, respectively.

Deferred PSUs, deferred RSUs and deferred stock units representing directors’ fees totaled 238,654 units as of June 28, 2026.

Each unit is equivalent to one share of the Company’s Common Stock.

The Hershey Company | Q2 2026 Form 10-Q | Page 25

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

SEGMENT INFORMATION

3 unchanged sentences

• North America Confectionery – This segment is responsible for our traditional chocolate and non-chocolate confectionery market position in the United States and Canada.

This includes our business in chocolate and

The Hershey Company | Q1 2026 Form 10-Q | Page 23

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines.

This includes our business in chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines.

This segment also includes our retail operations, including Hershey’s Chocolate World stores in Hershey, Pennsylvania;

19 unchanged sentences

(amounts in thousands, except share data or if otherwise indicated)

Our segment net sales and earnings for the three months ended March 29, 2026 and March 30, 2025 were as follows:

For the three months ended March 29, 2026

Our segment net sales and earnings for the three months ended June 28, 2026 and June 29, 2025 were as follows:

For the three months ended June 28, 2026

North America Confectionery North America Salty Snacks International Total

2 unchanged sentences

SM&A expense 282,973 65,911 48,300

Total segment income (loss) $ 705,785 $ 62,578 $ ( 5,145 ) $ 763,218

Unallocated corporate expense (1) 215,122

Unallocated mark-to-market gains on commodity derivatives ( 102,907 )

Costs associated with business realignment activities (see Note 9 )

Operating profit $ 642,641

Interest expense, net (see Note 4 )

Other (income) expense, net (see Note 17 )

Income before income taxes $ 588,280

For the three months ended June 29, 2025

North America Confectionery North America Salty Snacks International Total

Net sales $ 2,085,468 $ 315,519 $ 213,731 $ 2,614,718

Cost of sales 1,274,772 194,534 148,412

SM&A expense 306,767 54,505 45,524

Total segment income $ 503,929 $ 66,480 $ 19,795 $ 590,204

6 unchanged sentences

Income before income taxes $ 149,112

For the three months ended March 30, 2025

(1) Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance, and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based compensation expense, (d) acquisition and integration-related costs, and (e) other gains or losses that are not integral to segment performance.

The Hershey Company | Q2 2026 Form 10-Q | Page 27

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

Our segment net sales and earnings for the six months ended June 28, 2026 and June 29, 2025 were as follows:

For the six months ended June 28, 2026

North America Confectionery North America Salty Snacks International Total

4 unchanged sentences

Unallocated corporate expense (1) 372,828

Unallocated mark-to-market gains on commodity derivatives ( 72,723 )

Costs associated with business realignment activities (see Note 9 )

Operating profit $ 1,283,334

Interest expense, net (see Note 4 )

Other (income) expense, net (see Note 17 )

Income before income taxes $ 1,180,975

For the six months ended June 29, 2025

North America Confectionery North America Salty Snacks International Total

Net sales $ 4,385,608 $ 593,317 $ 441,212 $ 5,420,137

Cost of sales 2,589,848 375,172 302,396

SM&A expense 595,457 109,812 90,295

Total segment income $ 1,200,303 $ 108,333 $ 48,521 $ 1,357,157

Unallocated corporate expense (1) 341,952

Unallocated mark-to-market losses on commodity derivatives 412,181

6 unchanged sentences

Activity within the unallocated mark-to-market adjustment for commodity derivatives is as follows:

Three Months Ended

March 29, 2026 March 30, 2025

Net losses on mark-to-market valuation of commodity derivative positions recognized in income $ 28,909 $ 53,857

Net gains on commodity derivative positions reclassified from unallocated to segment income 1,275 157,596

Net losses on mark-to-market valuation of commodity derivative positions recognized in unallocated derivative losses $ 30,184 $ 211,453

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Net (gains) losses on mark-to-market valuation of commodity derivative positions recognized in income $ ( 85,867 ) $ 31,545 $ ( 56,958 ) $ 85,402

Net (losses) gains on commodity derivative positions reclassified from unallocated to segment income ( 17,040 ) 169,182 ( 15,765 ) 326,779

Net (gains) losses on mark-to-market valuation of commodity derivative positions recognized in unallocated derivative (gains) losses $ ( 102,907 ) $ 200,727 $ ( 72,723 ) $ 412,181

The Hershey Company | Q2 2026 Form 10-Q | Page 28

2 unchanged sentences

(amounts in thousands, except share data or if otherwise indicated)

As of March 29, 2026, the cumulative amount of mark-to-market gains on commodity derivatives that have been recognized in our consolidated cost of sales and not yet allocated to reportable segments was $ 380,047 .

As of June 28, 2026, the cumulative amount of mark-to-market gains on commodity derivatives that have been recognized in our consolidated cost of sales and not yet allocated to reportable segments was $ 482,954 .

Based on our forecasts of the timing of the recognition of the underlying hedged items, we expect to reclassify net pre-tax gains on commodity derivatives of $ 283,942 to segment operating results in the next twelve months.

Depreciation and amortization expense included within segment income presented above is as follows:

Three Months Ended

March 29, 2026 March 30, 2025

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

North America Confectionery $ 80,358 $ 72,787 $ 157,875 $ 142,560

4 unchanged sentences

Additional information regarding our net sales disaggregated by geographical region is as follows:

Three Months Ended

March 29, 2026 March 30, 2025

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

United States $ 2,438,474 $ 2,285,230 $ 5,149,947 $ 4,752,984

3 unchanged sentences

A summary of our treasury stock activity is as follows:

Three Months Ended March 29, 2026

Six Months Ended June 28, 2026

Shares Dollars

Shares repurchased in the open market under pre-approved share repurchase programs 1,030,614 $ 200,000

Shares repurchased in the open market to replace Treasury Stock issued for stock options and incentive compensation 1,215,696 239,354

Total share repurchases 2,246,310 439,354

Shares issued for stock options and incentive compensation ( 322,162 ) $ ( 13,405 )

Total net share repurchases 1,924,148 425,949

Excise tax associated with net share repurchases (1) — $ 4,259

Net change 1,924,148 $ 430,208

(1) A corresponding liability for excise tax associated with net share repurchases is classified on our Consolidated Balance Sheets within accrued liabilities.

In December 2023, our Board of Directors approved a $ 500 million share repurchase authorization.

As a result of the share repurchase authorization, approximately $ 270 million remains available for repurchases under our December 2023 share repurchase authorization.

In June 2026, our Board of Directors approved an additional $ 500 million share repurchase authorization.

This program is to commence after the existing 2023 authorization is completed and is to be utilized at management’s discretion.

We are authorized to purchase our outstanding shares in open market and privately negotiated transactions.

1 unchanged sentence

Purchases under approved share repurchase authorizations are in addition to our practice of buying back shares sufficient to offset those issued under incentive compensation plans.

The Hershey Company | Q2 2026 Form 10-Q | Page 29

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

CONTINGENCIES

10 unchanged sentences

Three Months Ended

March 29, 2026 March 30, 2025

June 28, 2026 June 29, 2025

Common Stock Class B Common Stock Common Stock Class B Common Stock

19 unchanged sentences

Earnings Per Share—diluted $ 2.26 $ 2.11 $ 0.31 $ 0.29

The earnings per share calculations for the three months ended March 29, 2026 and March 30, 2025 excluded 14 and 27 stock options (in thousands), respectively, that would have been antidilutive.

The earnings per share calculations for the three months ended June 28, 2026 and June 29, 2025 excluded 14 and 17 stock options (in thousands), respectively, that would have been antidilutive.

The Hershey Company | Q2 2026 Form 10-Q | Page 31

2 unchanged sentences

(amounts in thousands, except share data or if otherwise indicated)

Six Months Ended

June 28, 2026 June 29, 2025

Common Stock Class B Common Stock Common Stock Class B Common Stock

Basic earnings per share:

Allocation of distributed earnings (cash dividends paid) $ 430,212 $ 144,180 $ 406,837 $ 135,988

Allocation of undistributed earnings 238,403 79,975 ( 191,695 ) ( 64,208 )

Total earnings—basic $ 668,615 $ 224,155 $ 215,142 $ 71,780

Denominator (shares in thousands):

Total weighted-average shares—basic 148,001 54,614 148,175 54,614

Earnings Per Share—basic $ 4.52 $ 4.10 $ 1.45 $ 1.31

Diluted earnings per share:

Allocation of total earnings used in basic computation $ 668,615 $ 224,155 $ 215,142 $ 71,780

Reallocation of total earnings as a result of conversion of Class B common stock to Common stock 224,155 — 71,780 —

Reallocation of undistributed earnings — ( 256 ) — 123

Total earnings—diluted $ 892,770 $ 223,899 $ 286,922 $ 71,903

Denominator (shares in thousands):

Number of shares used in basic computation 148,001 54,614 148,175 54,614

Weighted-average effect of dilutive securities:

Conversion of Class B common stock to Common shares outstanding 54,614 — 54,614 —

Employee stock options 100 — 193 —

Performance and restricted stock units 535 — 186 —

Total weighted-average shares—diluted 203,250 54,614 203,168 54,614

Earnings Per Share—diluted $ 4.39 $ 4.10 $ 1.41 $ 1.32

The earnings per share calculations for the six months ended June 28, 2026 and June 29, 2025 excluded 14 and 27 stock options (in thousands), respectively, that would have been antidilutive.

The Hershey Company | Q2 2026 Form 10-Q | Page 32

THE HERSHEY COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(amounts in thousands, except share data or if otherwise indicated)

OTHER (INCOME) EXPENSE, NET

1 unchanged sentence

A summary of the components of other (income) expense, net is as follows:

Three Months Ended

March 29, 2026 March 30, 2025

Three Months Ended Six Months Ended

June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025

Non-service cost components of net periodic benefit cost relating to pension and other post-retirement benefit plans (see Note 11 )

8 unchanged sentences

The components of certain asset accounts included within our Consolidated Balance Sheets are as follows:

March 29, 2026 December 31, 2025

June 28, 2026 December 31, 2025

Raw materials $ 896,466 $ 762,391

28 unchanged sentences

The components of certain liability and stockholders’ equity accounts included within our Consolidated Balance Sheets are as follows:

March 29, 2026 December 31, 2025

June 28, 2026 December 31, 2025

Accounts payable:

22 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 1. Financial Statements