What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-11-21 compared with 2024-11-22 · 487 added, 286 removed, 1126 unchanged (41% of the section changed)

38 unchanged sentences

In our opinion, Matthews International Corporation and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of September 30, 2024 and 2023, the related consolidated statements of income (loss), comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended September 30, 2024, and the related notes and the financial statement schedule listed in the Index at Item 15(a)2 and our report dated November 22, 2024 expressed an unqualified opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of September 30, 2025 and 2024, the related consolidated statements of income (loss), comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended September 30, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a)2 and our report dated November 21, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

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The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of SGK Brand Solutions Reporting Unit Goodwill

Description of the Matter As more fully described in Note 23 to the consolidated financial statements, during 2024, the Company performed its annual goodwill impairment test as of January 1, 2024 and determined that the estimated fair value of the SGK Brand Solutions reporting unit, within the SGK Brand Solutions segment, exceeded the carrying value (expressed as a percentage of carrying value) by approximately 7%.

The Company utilized a combination of the income approach using the estimated discounted cash flows and a market-based valuation methodology.

Significant assumptions used in the Company’s fair value estimate included the estimates of revenue growth, EBITDA contribution and the discount rates.

Auditing the annual impairment analysis was complex, as it included estimating the fair value of the reporting unit.

In particular, the fair value estimate is sensitive to the significant assumptions named above, which are affected by expected future market or economic conditions.

Valuation of Goodwill

Description of the Matter At September 30, 2025, the Company had $487,561 of goodwill.

As more fully described in Notes 2 and 24 to the consolidated financial statements, the Company evaluates goodwill for impairment annually or whenever events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying value.

The Company performed a quantitative impairment assessment for each reporting unit as of January 1, 2025.

The Company utilized a combination of the income approach using the estimated discounted cash flows and a market-based valuation methodology for each reporting unit.

Auditing the annual impairment analysis was complex for certain of the reporting units due to the estimation required to determine fair value.

In particular, the fair value estimates were sensitive to significant assumptions, such as changes in the revenue growth rates, EBITDA contribution, and the discount rate, which are affected by expected future market or economic conditions.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company’s goodwill impairment review process.

These controls include management’s assessment of indicators of impairment, management's review of the assumptions utilized to develop the estimate, and management’s verification of the completeness and accuracy of the underlying data utilized to project future operating results for the reporting unit.

To test the fair value of the reporting unit, our audit procedures included, among others, involving our valuation specialists to assist in assessing the valuation methodologies utilized by the Company and its valuation expert and testing the significant assumptions and underlying data used by the Company.

We compared the significant assumptions used by management to current industry and economic trends, changes in the Company’s business model, and other relevant factors.

We also assessed the historical accuracy of management’s estimates.

We performed sensitivity analyses of significant assumptions to evaluate the sensitivity of the fair value of the reporting unit resulting from changes in key assumptions.

These controls include management’s assessment of indicators of impairment, management's review of the significant assumptions utilized to develop the estimate, and management’s verification of the completeness and accuracy of the underlying data utilized to project future operating results for each reporting unit.

To test the fair value of each reporting unit, our audit procedures included, among others, assessing the valuation methodologies utilized by the Company and its valuation expert, testing the significant assumptions discussed above for certain of the reporting units, and testing the completeness and accuracy of the underlying data used by the Company.

We involved our valuation specialists in assessing the fair value methodologies applied and evaluating the reasonableness of the discount rate selected by management in the determination of the fair values of certain of the reporting units.

We compared the revenue growth rates and EBITDA contribution used by management to current industry and economic trends, recent historical performance, or other relevant factors.

We performed sensitivity analyses of significant assumptions to evaluate the changes in the fair values that would result from changes in the assumptions.

We reviewed the reconciliation of the fair value of the reporting units to the market capitalization of the Company and assessed the resulting control premium.

We also assessed the appropriateness of the disclosures in the financial statements.

/s/ Ernst & Young LLP

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Cash and cash equivalents $ 32,433 $ 40,816

Accounts receivable, net of allowance for doubtful

accounts of $ 12,055 and $ 10,784 , respectively

Accounts receivable, net of allowance for credit

losses of $ 13,481 and $ 12,055 , respectively

132,940 205,984

9 unchanged sentences

Other intangible assets, net 105,958 126,026

Other assets 9,576 11,325

Other non-current assets 9,498 9,576

Total assets $ 1,694,442 $ 1,834,890

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Deferred income taxes 55,967 45,688

Other liabilities 107,534 59,572

Other non-current liabilities 67,352 107,534

Total liabilities 1,213,500 1,397,684

Shareholders' equity-Matthews:

Shareholders' equity:

Class A common stock, $ 1.00 par value;

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Goodwill write-downs — ( 16,727 ) —

Operating (loss) profit ( 12,323 ) 88,117 ( 43,937 )

Gain on sale of SGK business 55,139 — —

Operating profit (loss) 75,453 ( 12,323 ) 88,117

Interest expense ( 62,895 ) ( 50,534 ) ( 44,648 )

Other income (deductions), net 3,651 ( 6,800 ) ( 2,559 )

(Loss) income before income taxes ( 69,657 ) 40,910 ( 104,219 )

Income tax benefit (provision) 9,997 ( 1,774 ) 4,391

Income (loss) before income taxes 16,209 ( 69,657 ) 40,910

Income tax (provision) benefit ( 40,680 ) 9,997 ( 1,774 )

Net (loss) income ( 24,471 ) ( 59,660 ) 39,136

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Other comprehensive income, net of tax 90,732 — 90,732

Comprehensive (loss) income $ ( 53,998 ) $ 23 $ ( 53,975 )

Comprehensive income $ 66,261 $ — $ 66,261

Year Ended September 30, 2024

Matthews Noncontrolling Interest Total

Net income (loss) $ 39,291 $ ( 155 ) $ 39,136

Net loss $ ( 59,660 ) $ — $ ( 59,660 )

Other comprehensive income (loss), net of tax:

1 unchanged sentence

Pension plans and other postretirement benefits ( 1,805 ) — ( 1,805 )

Unrecognized gain (loss) on cash flow hedges:

Unrecognized loss on cash flow hedges:

Net change from periodic revaluation ( 6,104 ) — ( 6,104 )

Net amount reclassified to earnings ( 2,002 ) — ( 2,002 )

Net change in unrecognized gain on cash flow hedges 1,095 — 1,095

Net change in unrecognized loss on cash flow hedges ( 8,106 ) — ( 8,106 )

Other comprehensive income, net of tax 5,662 23 5,685

Comprehensive income (loss) $ 55,078 $ ( 144 ) $ 54,934

Comprehensive (loss) income $ ( 53,998 ) $ 23 $ ( 53,975 )

Year Ended September 30, 2023

Matthews Noncontrolling Interest Total

Net loss $ ( 99,774 ) $ ( 54 ) $ ( 99,828 )

Other comprehensive (loss) income, net of tax:

Net income (loss) $ 39,291 $ ( 155 ) $ 39,136

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment 13,114 11 13,125

Pension plans and other postretirement benefits 1,578 — 1,578

Unrecognized gain on cash flow hedges:

Unrecognized gain (loss) on cash flow hedges:

Net change from periodic revaluation 3,056 — 3,056

2 unchanged sentences

Other comprehensive income, net of tax 15,787 11 15,798

Comprehensive loss $ ( 97,226 ) $ ( 40 ) $ ( 97,266 )

Comprehensive income (loss) $ 55,078 $ ( 144 ) $ 54,934

The accompanying notes are an integral part of these consolidated financial statements.

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Balance, September 30, 2022 $ 36,334 $ 160,255 $ 706,749 $ ( 190,191 ) $ ( 225,795 ) $ ( 276 ) $ 487,076

Net loss — — ( 99,774 ) — — ( 54 ) ( 99,828 )

Net income (loss) — — 39,291 — — ( 155 ) 39,136

Pension plans and other

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Fair value of cash flow hedges — — — 1,095 — — 1,095

Total comprehensive loss ( 97,266 )

Total comprehensive income 54,934

Stock-based compensation — 17,308 — — — — 17,308

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Dividends — — ( 31,313 ) — — — ( 31,313 )

Divestiture — — — — — ( 91 ) ( 91 )

Transactions with noncontrolling

interests — — — — — 33 33

Balance, September 30, 2023 $ 36,334 $ 168,211 $ 714,727 $ ( 174,404 ) $ ( 219,200 ) $ ( 387 ) $ 525,281

Net income (loss) — — 39,291 — — ( 155 ) 39,136

Net loss — — ( 59,660 ) — — — ( 59,660 )

Pension plans and other

2 unchanged sentences

Fair value of cash flow hedges — — — ( 8,106 ) — — ( 8,106 )

Total comprehensive income 54,934

Total comprehensive loss ( 53,975 )

Stock-based compensation — 18,478 — — — — 18,478

5 unchanged sentences

— ( 26,780 ) — — 26,780 — —

Cancellation of 34,327 shares of

treasury stock

— 1,958 — — ( 1,958 ) — —

Dividends — — ( 32,004 ) — — — ( 32,004 )

7 unchanged sentences

Fair value of cash flow hedges — — — ( 1,479 ) — — ( 1,479 )

Total comprehensive loss ( 53,975 )

Total comprehensive income 66,261

Stock-based compensation — 23,065 — — — — 23,065

6 unchanged sentences

Dividends — — ( 33,314 ) — — — ( 33,314 )

Transactions with noncontrolling

interests — ( 412 ) — — — 412 —

Divestiture — — — — — ( 48 ) ( 48 )

Balance, September 30, 2025 $ 36,334 $ 154,617 $ 565,278 $ ( 78,010 ) $ ( 197,277 ) $ — $ 480,942

10 unchanged sentences

Stock-based compensation expense 23,065 18,478 17,308

Deferred tax benefit ( 25,223 ) ( 21,626 ) ( 32,962 )

Gain on divestitures and sale of assets, net ( 1,428 ) ( 2,980 ) ( 3,390 )

Deferred tax expense (benefit) 23,140 ( 25,223 ) ( 21,626 )

Gain on sale of SGK Business ( 55,139 ) — —

Gains on other divestitures and sale of assets, net ( 3,177 ) ( 1,428 ) ( 2,980 )

Equity and other investment (income) losses ( 2,890 ) 148 —

Asset write-downs 7,911 16,847 —

3 unchanged sentences

Proceeds from the settlement of cash flow hedges — — 10,474

Payments of divestiture transaction costs ( 8,902 ) — —

Changes in working capital items ( 45,394 ) 14,696 ( 35,503 )

Decrease in other assets 20,613 9,339 20,093

Decrease in other liabilities ( 17,196 ) ( 8,863 ) ( 9,699 )

Decrease in other non-current assets 11,258 20,613 9,339

Decrease in other non-current liabilities ( 10,870 ) ( 17,196 ) ( 8,863 )

Other operating activities, net ( 9,827 ) 510 ( 1,320 )

Net cash provided by operating activities 79,282 79,524 126,860

Net cash (used in) provided by operating activities ( 23,550 ) 79,282 79,524

Cash flows from investing activities:

3 unchanged sentences

Proceeds from sale of assets 21,250 4,156 2,120

Proceeds from divestitures 544 6,700 344

Proceeds from sale of SGK Business 228,004 — —

Proceeds from other divestitures 2,049 544 6,700

Proceeds from sale of investments — 200 —

Proceeds from the settlement of net investment hedges — — 13,066

Net cash used in investing activities ( 46,968 ) ( 58,725 ) ( 80,852 )

Net cash provided by (used in) investing activities 159,590 ( 46,968 ) ( 58,725 )

Cash flows from financing activities:

6 unchanged sentences

Proceeds from net investment hedges 14,990 58,432 —

Payments on net investment hedges ( 37,092 ) — —

Other financing activities — — ( 912 )

1 unchanged sentence

Effect of exchange rate changes on cash ( 152 ) 1,444 83

Net change in cash, cash equivalents and restricted cash ( 1,285 ) ( 29,313 ) 3,071

Cash, cash equivalents and restricted cash at beginning of year 42,101 71,414 68,343

Cash, cash equivalents and restricted cash at end of year $ 40,816 $ 42,101 $ 71,414

Net change in cash and cash equivalents ( 8,383 ) ( 1,285 ) ( 29,313 )

Cash and cash equivalents at beginning of year 40,816 42,101 71,414

Cash and cash equivalents at end of year $ 32,433 $ 40,816 $ 42,101

Cash paid during the year for:

8 unchanged sentences

The Company manages its businesses under three segments:

Memorialization, Industrial Technologies and SGK Brand Solutions.

Memorialization, Industrial Technologies and Brand Solutions.

Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries.

2 unchanged sentences

and coating and converting lines for the packaging, pharma, foil, décor and tissue industries.

SGK Brand Solutions consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.

The Company has facilities in North America, Europe, Asia, Australia, and Central and South America.

Brand Solutions consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.

On May 1, 2025, the Company contributed the vast majority of its Brand Solutions segment (the "SGK Business") to a newly-formed entity, Peninsula Parent LLC, d.b.a.

Propelis Group ("Propelis"), in exchange for a 40 % ownership interest in Propelis and other consideration.

Propelis is a leading global provider of brand solutions.

Following the completion of this transaction, the Company's Brand Solutions segment consists of its cylinders business, and its 40 % ownership interest in Propelis.

See Notes 8, "Investments" and 23, "Acquisitions and Divestitures" for further information with respect to the Company's sale of its interest in the SGK Business.

The Company has facilities in North America, Europe, Asia, Australia, and Central America.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

1 unchanged sentence

The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control and any variable interest entities for which the Company is the primary beneficiary.

Investments in certain companies over which the Company exerts significant influence, but does not control the financial and operating decisions, are accounted for as equity method investments.

Investments in certain companies over which the Company is able to exercise significant influence, but does not control the financial and operating decisions, are accounted for as equity-method investments.

Such equity-method investments are periodically adjusted to reflect the Company's share of earnings and losses reported by investees, distributions received, and other-than-temporary impairments, if applicable.

Investments in certain companies over which the Company does not exert significant influence are accounted for as cost-method investments.

All intercompany accounts and transactions have been eliminated.

Activity prior to May 1, 2025 for the SGK Business is included within the consolidated financial statements of the Company.

As of May 1, 2025 the SGK Business has been deconsolidated from the financial statements and is now accounted for as part of the Company's equity-method investment in Propelis.

The Company recognizes its portion of the earnings or losses for its equity-method investment in Propelis on a three-month lag to ensure consistency and timely filing of the Company's financial statements.

Consequently, in fiscal 2025, the Company's portion of earnings for its equity-method investment in Propelis only includes the months of May and June 2025.

See Note 8, "Investments" for further information with respect to the equity-method investment in Propelis.

Use of Estimates:

1 unchanged sentence

Actual results could differ from those estimates.

Reclassifications:

Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.

These reclassifications are not material to the prior year presentation.

Cash, Cash Equivalents and Restricted Cash:

2 unchanged sentences

The carrying amount of cash, cash equivalents and restricted cash approximates fair value due to the short-term maturities of these instruments.

Trade Receivables and Allowance for Doubtful Accounts:

Trade receivables are carried at their estimated collectible amounts.

Trade credit is generally extended on a short-term basis;

thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are more than 30 days past due.

The allowance for doubtful accounts is based on an evaluation of historical collection experience, the aging of accounts receivable, and economic trends and forecasts, and also reflects adjustments for specific customer accounts for which available facts and circumstances indicate collectability may be uncertain.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

1 unchanged sentence

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)

Trade Receivables and Allowance for Credit Losses:

Trade receivables are carried at their estimated collectible amounts.

Trade credit is generally extended on a short-term basis;

thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are more than 30 days past due.

The allowance for credit losses is based on an evaluation of historical collection experience, the aging of accounts receivable, and economic trends and forecasts, and also reflects adjustments for specific customer accounts for which available facts and circumstances indicate collectability may be uncertain.

Inventories are stated at the lower of cost or net realizable value with cost generally determined under the average cost method.

8 unchanged sentences

Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.

Recoverability of assets is determined by evaluating the estimated undiscounted net cash flows of the operations to which the assets relate.

An impairment loss would be recognized when the carrying amount of the assets exceeds the fair value, which is based on a discounted cash flow analysis.

An asset considered held-for-sale is reported at the lower of the asset's carrying amount or fair value, less cost to sell.

Recoverability of assets and asset groups is determined by evaluating the estimated undiscounted net cash flows of the operations to which the assets or asset groups relate.

An impairment loss would be recognized when the carrying amount of the assets or asset groups exceed the fair value, which is generally based on a discounted cash flow analysis.

An asset or asset group considered held-for-sale is reported at the lower of the asset/asset group's carrying amount or fair value, less cost to sell.

No impairment charges for property, plant and equipment were recognized during the years presented, except as disclosed in Note 25, “Asset Write-Downs."

13 unchanged sentences

ROU assets and corresponding lease liabilities are recorded on the Consolidated Balance Sheet.

ROU assets for operating leases are classified in other assets, and ROU assets for finance leases are classified in property, plant and equipment, net on the Consolidated Balance Sheet.

For operating leases, short-term lease liabilities are classified in other current liabilities, and long-term lease liabilities are classified in other liabilities on the Consolidated Balance Sheet.

For finance leases, short-term lease liabilities are classified in long-term debt, current maturities, and long-term lease liabilities are classified in long-term debt on the Consolidated Balance Sheet.

ROU assets for operating leases are classified in operating lease right-of-use-assets, and ROU assets for finance leases are classified in property, plant and equipment, net on the Consolidated Balance Sheet.

For operating leases, short-term lease liabilities are classified in current portion of operating lease liabilities, and long-term lease liabilities are classified in operating lease liabilities on the Consolidated Balance Sheet.

For finance leases, short-term lease liabilities are classified in long-term debt, current maturities, and long-term lease liabilities are classified in long-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)

term debt on the Consolidated Balance Sheet.

Leases with an initial lease term of twelve months or less have not been recognized on the Consolidated Balance Sheet.

2 unchanged sentences

Payments for finance leases are classified as a financing activity, with the exception of the interest component of the payment which is classified as an operating activity.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)

Goodwill and Other Intangible Assets:

8 unchanged sentences

Differences between actual and expected results or changes in the value of the obligations are initially recognized through other comprehensive income and subsequently amortized to the Consolidated Statement of Income.

Environmental:

Costs that mitigate or prevent future environmental issues or extend the life or improve equipment utilized in current operations are capitalized and depreciated on a straight-line basis over the estimated useful lives of the related assets.

Costs that relate to current operations or an existing condition caused by past operations are expensed.

Environmental liabilities are recorded when the Company's obligation is probable and reasonably estimable.

Accruals for losses from environmental remediation obligations do not consider the effects of inflation, and anticipated expenditures are not discounted to their present value.

Derivatives and Hedging:

10 unchanged sentences

Gains or losses that result from this process are recorded in accumulated other comprehensive income (loss).

The revenue and expense accounts of foreign subsidiaries are translated into U.S.

The revenue and expense accounts of foreign subsidiaries are generally translated into U.S.

dollars at the average exchange rates that prevailed during the period.

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For substantially all transactions, control passes in accordance with agreed upon delivery terms, including in certain circumstances, customer acceptance.

Transaction price, for revenue recognition, is allocated to each performance obligation consisting of the stand alone selling price for goods and services, as well as warranties.

Transaction price, for revenue recognition, is allocated to each performance obligation consisting of the stand alone selling price for products, as well as warranties.

Transaction price also reflects estimates of rebates, other sales or contract renewal incentives, cash discounts and sales returns ("Variable Consideration").

Estimates are made for Variable Consideration based on contract terms and historical experience of actual results and are applied to the performance obligations as they are satisfied.

The Company elected to apply the practical expedient under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers which exempts the adjustment of the consideration for the existence of a significant financing component when the period between the transfer of the services and the payment for such services is one year or less.

The Company elected to apply the practical expedient under ASC Topic 606, Revenue from Contracts with Customers which exempts the adjustment of the consideration for the existence of a significant financing component when the period between the transfer of the services and the payment for such services is one year or less.

Each product or service delivered to a third-party customer is considered to satisfy a performance obligation.

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ACCOUNTING PRONOUNCEMENTS:

In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No.

2023-09, Income Taxes (Topic 740) which enhances the transparency and decision usefulness of income tax disclosures including rate reconciliations and income taxes paid among other tax disclosures.

The ASU is effective for annual periods for the Company beginning in fiscal year 2026.

In September 2025, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No.

2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) .

The amendments in this ASU remove all references to prescriptive and sequential software development stages and now require entities to begin capitalizing software costs once management has authorized and committed to funding the software project, and when it is probable that the project will be completed and the software will fulfill its intended purpose.

The ASU is effective for annual and interim periods beginning in fiscal year 2029.

The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements.

In July 2025, the FASB issued ASU No.

2025-05, Financial Instruments—Credit Losses (Topic 326) which provides all entities with a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606.

The ASU is effective for annual and interim periods beginning in fiscal year 2027.

The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements.

In November 2024, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280) which improves financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities, including enhanced disclosures about significant segment expenses.

2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) which improves financial reporting by requiring disclosure of specified information about certain costs and expenses on an annual and interim basis for all public entities, including enhanced disaggregation disclosures.

The ASU is effective for annual periods for the Company beginning in fiscal year 2028, and interim periods beginning in fiscal year 2029.

The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740) which enhances the transparency and decision usefulness of income tax disclosures including rate reconciliations and income taxes paid among other tax disclosures.

The ASU is effective for annual periods for the Company beginning in fiscal year 2026.

The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements.

In October 2023, the FASB issued ASU No.

4 unchanged sentences

The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

In July 2023, the FASB issued ASU No.

2023-03, Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718):

Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X:

Income or Loss Applicable to Common Stock (SEC Update) which enhances the transparency of stock based compensation and material nonpublic information at the time of a grant.

The adoption of this ASU in the fourth quarter of fiscal 2023 had no material impact on the Company's consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

ACCOUNTING PRONOUNCEMENTS, (continued)

In November 2023, the FASB issued ASU No.

The ASU is effective for annual periods for the Company beginning in fiscal year 2025, and interim periods beginning in fiscal year 2026.

The adoption of this ASU in the fourth quarter of fiscal 2025 did not affect the recognition, measurement, or financial statement presentation of expenses, but did result in expanded segment information disclosures, as reflected in Note 22, "Segment Information."

In September 2022, the FASB issued ASU No.

2 unchanged sentences

The rollforward of amounts outstanding during the annual period is effective for annual periods for the Company beginning in fiscal year 2025.

The adoption of the remaining provisions of this ASU in the first quarter of fiscal 2024 had no material impact on the Company's consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

ACCOUNTING PRONOUNCEMENTS, (continued)

The Company facilitates a voluntary supply chain finance program (the "Program") to provide certain suppliers with the opportunity to sell receivables due from the Company to participating financial institutions at the sole discretion of both the suppliers and the financial institutions.

The Company is not a party to the agreements between the suppliers and the financial institutions and has no economic interest in a supplier's decision to sell a receivable.

The range of payment terms negotiated with a supplier is consistent, irrespective of whether a supplier participates in the Program.

All outstanding payments owed under the Program are recorded within trade accounts payable in the Consolidated Balance Sheets.

The Company accounts for all payments made under the Program as a reduction to operating cash flows in changes in working capital within the Consolidated Statements of Cash Flows.

The amounts owed to a participating financial institution under the Program and included in trade accounts payable were $ 3,014 and $ 3,027 at September 30, 2024 and 2023, respectively.

In October 2021, the FASB issued ASU No.

2021-08, Business Combinations (Topic 805) which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract asset/liability, and payment terms and their effect on subsequent revenue recognized by the acquirer.

The adoption of this ASU in the first quarter of fiscal 2024 had no material impact on the Company's consolidated financial statements.

The adoption of the provisions of this ASU during fiscal 2024 and fiscal 2025 had no material impact on the Company's consolidated financial statements.

REVENUE RECOGNITION:

1 unchanged sentence

Disaggregated sales by segment and region for the years ended September 30, 2025, 2024 and 2023 were as follows:

North America Central and South America Europe Australia Asia Consolidated

North America Central and South America (1)

Europe Australia Asia Consolidated

Memorialization:

6 unchanged sentences

2023 164,334 — 333,759 — 7,658 505,751

SGK Brand Solutions:

Brand Solutions:

2025 $ 159,176 $ 3,089 $ 134,688 $ 5,318 $ 43,675 $ 345,946

5 unchanged sentences

2023 1,219,238 5,260 572,736 19,913 63,749 1,880,896

Revenue from products or services provided to customers over time accounted for approximately 18 %, 15 %, and 12 % of revenue for the years ended September 30, 2024, 2023, and 2022, respectively.

As of September 30, 2024 and 2023, the Company had net contract assets for projects recognized using the over time method totaling $ 64,246 and $ 37,711 , respectively, which primarily represent unbilled revenues, net of deferred revenues related to customer deposits and progress billings.

Net contract assets at September 30, 2024 predominantly related to ongoing projects with the Company's largest energy storage customer.

(1) Following the contribution of the SGK Business to Propelis in the third quarter of fiscal 2025, the Company no longer had operations in South America.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

REVENUE RECOGNITION, (continued)

Revenue recognized using the over time method accounted for approximately 14 %, 18 %, and 15 % of revenue for the years ended September 30, 2025, 2024, and 2023, respectively.

As of September 30, 2025 and 2024, the Company had net contract assets for projects recognized using the over time method totaling $ 99,700 and $ 64,246 , respectively, which primarily represent unbilled revenues, net of deferred revenues related to customer deposits and progress billings.

Net contract assets at September 30, 2025 and 2024 predominantly related to ongoing projects with the Company's largest energy storage customer.

Unbilled revenues are generally expected to be invoiced upon the attainment of certain contractual conditions and milestones.

The Company continues to perform according to the general terms and conditions of its contractual arrangements with Tesla, Inc.

Customer delays within the energy storage business have impacted the timing of projects, and consequently, have resulted in invoicing delays for this business.

FAIR VALUE MEASUREMENTS:

F air value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

A three level fair value hierarchy is used to prioritize the inputs used in valuations, as defined below:

5 unchanged sentences

Level 1 Level 2 Level 3 Total

Derivatives (1)

$ — $ 39 $ — $ 39

Equity and fixed income mutual funds — 859 — 859

6 unchanged sentences

Level 1 Level 2 Level 3 Total

Derivatives (1)

$ — $ 4,006 $ — $ 4,006

Equity and fixed income mutual funds $ — $ 839 $ — $ 839

5 unchanged sentences

(1) Interest rate swaps and cross currency swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy.

(2) Fiscal 2024 derivative amount includes $ 58,432 of partial advance payments received from the counterparties to certain cross-currency swaps.

(2) Derivative amounts at September 30, 2025 and 2024 reflect $ 40,186 and $ 58,432 of partial advance payments received from the counterparties to certain cross-currency swaps, respectively.

See Note 12, "Derivatives and Hedging Activities" for further details.

2 unchanged sentences

(Dollar amounts in thousands, except per share data)

ALLOWANCE FOR DOUBTFUL ACCOUNTS:

The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the years ended September 30, 2024, 2023 and 2022.

ALLOWANCE FOR CREDIT LOSSES:

The following table summarizes the activity for the accounts receivable allowance for credit losses for the years ended September 30, 2025, 2024 and 2023.

Description Balance at Beginning of Period Charged to Expense Charged to other Accounts Deductions (1)

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(1) Amounts determined not to be collectible (including direct write-offs), net of recoveries.

Fiscal 2025 amounts include $ 582 related to the divestiture of the Company's interest in the SGK Business.

Inventories at September 30, 2025 and 2024 consisted of the following:

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Equity-method investments 214,133 349

Preferred equity investment 52,086 —

Other (primarily cost-method) investments 16,320 16,395

$ 288,637 $ 23,076

On May 1, 2025, the Company contributed its SGK Business to a newly-formed entity, Propelis, in exchange for consideration which included 40 % of the common equity of Propelis and a $ 50,000 preferred equity investment in Propelis.

The Company initially recognized these investments at fair value, which totaled $ 263,000 ($ 213,000 equity-method and $ 50,000 preferred equity investment).

The Company will subsequently adjust the carrying amount of its equity-method investment for its share of earnings and losses reported by the investee, distributions received, and other-than-temporary impairments.

The preferred equity investment accrues paid-in-kind interest at a rate of 10 % per annum.

Consequently, in fiscal 2025, the Company's portion of earnings for its equity-method investment in Propelis only includes the months of May and June 2025.

For the year ended September 30, 2025, the Company recognized $ 1,132 of equity-method income for its equity-method investment in Propelis, which has been recorded as a component of administrative expense.

Equity-method income in fiscal 2025 included $ 1,937 of income, representing the Company's portion of the investee's earnings, and $ 805 of expense, reflecting the amortization of the Company's portion of the basis difference of the amortizable assets contributed from SGS & Co.

("SGS") to Propelis.

The Company also recognized $ 2,086 of paid-in-kind interest income in fiscal 2025 related to the Company's preferred equity investment in Propelis, which was included as a component of other income (deductions), net.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

INVESTMENTS, (continued)

The following table presents summarized financial information for Propelis:

June 30, 2025 (1)

Current assets $ 262,475

Non-current assets 735,522

Current liabilities 176,838

Non-current liabilities 346,485

Noncontrolling interests 214,938

May 1, 2025 -

June 30, 2025 (1)

Sales $ 159,648

Gross profit 40,161

Operating loss ( 1,250 )

Net income 4,843

Net income attributable to Propelis 2,906

(1) The Company recognizes its portion of the earnings or losses for its equity-method investment in Propelis on a three-month lag.

The summarized financial information for Propelis has been presented for the months of May and June 2025 to coincide with the amounts reflected in the Company's consolidated financial statements.

As of September 30, 2024, the Company had an investment in Liquid X Printed Metals Inc.

(“Liquid X”), a private company specializing in ink technologies.

One of the Company's Executive Officers and member of Matthews' Board of Directors serves as President and CEO of Liquid X.

The President and CEO of Liquid X is a former executive officer of the Company and a former member of Matthews' Board of Directors.

During the fourth quarter of fiscal 2024, in anticipation of a disposal transaction, the Company recognized a non-cash impairment charge of $ 3,131 , representing a full write-down of its cost-method investment in Liquid X.

This write-down was recorded as a component of other income (deductions), net, for the year ended September 30, 2024.

The disposal transaction was completed in October 2024, subsequent to the fiscal 2024 year end.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

The disposal transaction was completed in October 2024.

PROPERTY, PLANT, AND EQUIPMENT:

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Depreciation expense, including amortization of assets under finance lease, was $ 51,677 , $ 57,747 and $ 54,462 for each of the three years ended September 30, 2025, 2024 and 2023, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

DEBT AND FINANCING ARRANGEMENTS:

2 unchanged sentences

2027 Senior Secured Notes 296,110 294,751

2025 Senior Notes — 298,500

Other borrowings 7,151 15,602

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The amended and restated loan agreement includes a $ 750,000 senior secured revolving credit facility, which matures in January 2029, subject to the terms and conditions of the amended facility.

The obligations under the domestic credit facility are secured by a first priority lien on substantially all of the Company's and certain of its domestic subsidiaries' assets.

The obligations under the domestic credit facility are secured by a first priority lien on substantially all of the assets of the Company and certain of its domestic subsidiaries.

A portion of the revolving credit facility (not to exceed $ 350,000 ) can be drawn in foreign currencies.

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The Company is required to pay an annual commitment fee ranging from 0.15 % to 0.30 % (based on the Company's leverage ratio) of the unused portion of the revolving credit facility.

The Company incurred debt issuance costs of $ 4,905 in connection with the amended and restated agreement, which were deferred and are being amortized over the term of the facility.

The Company incurred debt issuance costs in connection with the amended and restated agreement.

Unamortized costs were $ 3,918 and $ 4,961 at September 30, 2025 and 2024, respectively.

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dollar denominated borrowings on the revolving credit facility at September 30, 2025 and 2024 were $ 384,233 and $ 410,527 , respectively.

Outstanding Euro denominated borrowings on the revolving credit facility at September 30, 2024 and 2023 were € 30.0 million ($ 33,485 ) and € 55.0 million ($ 58,168 ), respectively.

There were no outstanding Euro denominated borrowings on the revolving credit facility at September 30, 2025.

Outstanding Euro denominated borrowings on the revolving credit facility at September 30, 2024 were € 30.0 million ($ 33,485 ).

The weighted-average interest rate on outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps and Euro denominated borrowings) at September 30, 2025 and 2024 was 3.99 % and 4.59 %, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

DEBT AND FINANCING ARRANGEMENTS, (continued)

In September 2024, the Company issued $ 300,000 aggregate principal amount of 8.625 % senior secured second lien notes due October 1, 2027 (the "2027 Senior Secured Notes").

The 2027 Senior Secured Notes bear interest at a rate of 8.625 % per annum with interest payable semi-annually in arrears on April 1 and October 1 of each year beginning on April 1, 2025.

The Company's obligations under the 2027 Senior Secured Notes are secured by a second priority lien on substantially all of the Company’s and certain of its domestic subsidiaries’ assets.

The Company is subject to certain covenants and other restrictions in connection with the 2027 Senior Secured Notes.

The net proceeds from the 2027 Senior Secured Notes, together with additional funds borrowed under the Company’s domestic credit facility, were irrevocably deposited into a trust and were subsequently used to redeem all of the Company’s outstanding 5.25 % senior unsecured notes due December 1, 2025 (the “2025 Senior Notes”) on October 24, 2024, and to pay accrued and unpaid interest on the 2025 Senior Notes at such time.

Effective with the irrevocable deposit of these amounts into the trust in September 2024, the Company satisfied and discharged the indenture governing the 2025 Senior Notes in accordance with its terms.

Accordingly, the remaining unamortized direct financing costs from the 2025 Senior Notes, which totaled $ 585 , were charged to interest expense during the fourth quarter of fiscal 2024.

The Company incurred direct financing fees and costs of $ 5,249 in connection with 2027 Senior Secured Notes, which were deferred and are being amortized over the term of the 2027 Senior Secured Notes.

The Company has $ 300,000 aggregate principal amount of 8.625 % senior secured second lien notes due October 1, 2027 (the "2027 Senior Secured Notes").

The 2027 Senior Secured Notes bear interest at a rate of 8.625 % per annum with interest payable semi-annually in arrears on April 1 and October 1 of each year.

The Company's obligations under the 2027 Senior Secured Notes are secured by a second priority lien on substantially all of the assets of the Company and certain of its domestic subsidiaries.

The Company is subject to certain covenants and other restrictions including cross default provisions in connection with the 2027 Senior Secured Notes.

The Company incurred direct financing fees and costs in connection with the 2027 Senior Secured Notes.

Unamortized costs related to the Company’s notes were $ 3,890 and $ 5,249 at September 30, 2025 and 2024, respectively.

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The Company is the master servicer under the RPA, and is responsible for administering and collecting receivables.

The RPA, which had a maturity date of March 2024, was amended in March 2024 to extend the maturity date to March 2026.

The RPA matures in April 2027.

The proceeds of the RPA are classified as operating activities in the Company’s Consolidated Statements of Cash Flows.

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The fair value of the sold receivables approximated book value due to their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded.

As of September 30, 2024 and 2023, the amount sold to the Purchasers was $ 96,300 and $ 101,800 , respectively, which was derecognized from the Consolidated Balance Sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

DEBT AND FINANCING ARRANGEMENTS, (continued)

September 30, 2025 and 2024, the amount sold to the Purchasers was $ 65,600 and $ 96,300 , respectively, which was derecognized from the Consolidated Balance Sheets.

As collateral against sold receivables, Matthews RFC maintains a certain level of unsold receivables, which was $ 63,720 and $ 58,183 as of September 30, 2025 and 2024, respectively.

5 unchanged sentences

( 312,688 ) ( 384,594 )

Net cash (payments) proceeds $ ( 5,500 ) $ 5,210

In March 2023, the Company, through its U.K.

subsidiary, entered into a non-recourse factoring arrangement.

In connection with this arrangement, the Company periodically sells trade receivables to a third-party purchaser in exchange for cash.

These transfers of financial assets are recorded at the time the Company surrenders control of the assets.

As these transfers qualify as true sales under the applicable accounting guidance, the receivables are de-recognized from the Company's Consolidated Balance Sheets upon transfer.

Net cash (reinvested) received $ ( 30,700 ) $ ( 5,500 )

The Company, through its U.K.

subsidiary, previously participated in a non-recourse factoring arrangement.

In connection with this arrangement, the Company periodically sold trade receivables to a third-party purchaser in exchange for cash.

These transfers of financial assets were recorded at the time the Company surrendered control of the assets.

As these transfers qualified as true sales under the applicable accounting guidance, the receivables were de-recognized from the Company's Consolidated Balance Sheets upon transfer.

As a result of the sale of the Company's interest in the SGK Business, this arrangement no longer exists for the Company at September 30, 2025.

The principal amount of receivables sold under this arrangement was $ 45,813 and $ 70,236 during the fiscal year ended September 30, 2025 and 2024, respectively.

1 unchanged sentence

The proceeds from the sale of receivables are classified as operating activities in the Company's Consolidated Statements of Cash Flows.

As of September 30, 2024 and 2023, the amount of factored receivables that remained outstanding was $ 15,665 and $ 18,045 , respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

DEBT AND FINANCING ARRANGEMENTS, (continued)

As of September 30, 2024, the amount of factored receivables that remained outstanding was $ 15,665 .

See Note 23, "Acquisitions and Divestitures" for further information with respect to the sale of the Company's interest in the SGK Business.

The Company is not a party to the agreements between the suppliers and the financial institutions and has no economic interest in a supplier's decision to sell a receivable.

The range of payment terms negotiated with a supplier is consistent, irrespective of whether a supplier participates in the Program.

All outstanding payments owed under the Program are recorded within trade accounts payable in the Consolidated Balance Sheets.

The Company accounts for all payments made under the Program as a reduction to operating cash flows in changes in working capital within the Consolidated Statements of Cash Flows.

The amounts owed to a participating financial institution under the Program and included in trade accounts payable were $ 6,136 and $ 3,014 at September 30, 2025 and 2024, respectively.

The following table summarizes the Program activities for the year ended September 30, 2025.

For the Year Ended

September 30, 2025

Outstanding Program payables at September 30, 2024

Obligations added 43,579

Obligations settled ( 40,457 )

Outstanding Program payables at September 30, 2025

The Company, through certain of its European subsidiaries, has a credit facility with a European bank, which is guaranteed by Matthews.

2 unchanged sentences

This facility has no stated maturity date and is available until terminated.

There were no outstanding borrowings under the credit facility at September 30, 2024 or 2023.

Outstanding borrowings under the credit facility totaled at € 659,000 ($ 774 ) at September 30, 2025.

There were no outstanding borrowings under the credit facility at September 30, 2024.

The weighted-average interest rate on outstanding borrowings under this facility was 4.16 % at September 30, 2025.

Other borrowings totaled $ 7,151 and $ 15,602 at September 30, 2025 and 2024, respectively.

The weighted-average interest rate on these borrowings was 2.40 % and 2.66 % at September 30, 2025 and 2024, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

DEBT AND FINANCING ARRANGEMENTS, (continued)

As of September 30, 2025 and 2024, the fair value of the Company's long-term debt, including current maturities, which is classified as Level 2 in the fair value hierarchy, approximated the carrying value included in the Consolidated Balance Sheets.

The Company was in compliance with all of its debt covenants as of September 30, 2025.

On March 11, 2025, in connection with the filing of an automatic shelf registration statement on Form S-3 pursuant to which the Company re-registered 3,000,000 shares of Class A Common Stock, the Company entered into an Equity Distribution Agreement for an At-The-Market equity offering program ("ATM Program") where the Company may issue and sell, from time to time, up to 1,250,000 shares of its Class A Common Stock under the shelf registration.

The Company did not sell any shares of its Class A Common Stock under its ATM program during fiscal 2025.

As of September 30, 2025, the Company had 1,250,000 shares remaining for sale under the ATM Program.

The Company has no near-term intention to utilize the ATM Program.

Aggregate maturities by fiscal year of long-term debt, including other borrowings, is as follows:

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Long-term debt, current maturities Finance $ 7,230 $ 5,820

Other current liabilities Operating 22,617 23,983

Current portion of operating lease liabilities Operating 17,186 22,617

Non-current liabilities:

51 unchanged sentences

Long-term assets:

Other assets — — 3,086 —

Other non-current assets 24 — — —

Current liabilities:

1 unchanged sentence

Long-term liabilities:

Other liabilities ( 1,743 ) ( 48,925 ) — ( 2,766 )

Other non-current liabilities ( 1,404 ) ( 12,627 ) ( 1,743 ) ( 48,925 )

Total derivatives (1)

$ ( 2,338 ) $ ( 58,541 ) $ ( 2,606 ) $ ( 66,967 )

(1) Fiscal 2024 cross-currency swaps amount includes $ 58,432 of partial advance payments received from the counterparties to certain swap contracts (see below).

(1) Cross currency swap amounts at September 30, 2025 and 2024 reflect $ 40,186 and $ 58,432 , of partial advance payments received from the counterparties to certain swap contracts, respectively (see below).

The following table presents information related to interest rate swaps entered into by the Company and designated as cash flow hedges:

5 unchanged sentences

The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate.

In order to transition the Company's swaps from LIBOR-based to SOFR-based rates, the LIBOR-based swaps were settled during the second quarter of fiscal 2023, resulting in cash proceeds of $ 10,474 .

Concurrently, the Company entered into new interest rate swaps with SOFR-based rates with a notional amount of $ 175,000 .

The interest rate swaps have been designated as cash flow hedges of future variable interest payments which are considered probable of occurring.

Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective.

The fair value of the interest rate swaps reflected a net unrealized loss of $ 2,606 ($ 1,948 after tax) and a net unrealized gain of $ 4,006 ($ 2,991 after tax) at September 30, 2024 and 2023, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income ("AOCI").

Unrecognized gains of $ 3,848 ($ 2,874 after tax) and $ 8,084 ($ 6,041 after tax) related to previously terminated LIBOR-based swaps were also included in AOCI as of September 30, 2024 and 2023, respectively.

The fair value of the interest rate swaps reflected a net unrealized loss of $ 2,338 ($ 1,752 after tax) and a net unrealized loss of $ 2,606 ($ 1,948 after tax) at September 30, 2025 and 2024, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income ("AOCI").

Unrecognized gains of $ 1,605 ($ 1,199 after tax) and $ 3,848 ($ 2,874 after tax) related to previously terminated London Interbank Offered Rate ("LIBOR") based swaps were also included in AOCI as of September 30, 2025 and 2024, respectively.

Assuming market rates remain constant with the rates at September 30, 2025, a gain (net of tax) of approximately $ 115 included in AOCI is expected to be recognized in earnings over the next twelve months.

4 unchanged sentences

The following table presents information related to cross currency swaps entered into by the Company and designated as net investment hedges:

Notional Amount Unrealized Losses Recognized in AOCI

Notional Amount Unrealized Losses (1)

Swap Currencies Maturity Date September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

5 unchanged sentences

$ ( 6,379 ) (2)

(1) Unrealized gains/losses are recognized in AOCI unless a portion of a hedge is ineffective.

Ineffectiveness was insignificant for the year ended September 30, 2025.

(2) Total unrealized losses are presented net of tax of $ 4,652 and $ 2,156 , for the years ended September 30, 2025 and 2024, respectively.

1 unchanged sentence

dollar leg of the swaps.

Such amounts totaled $ 58,432 , of which $ 17,416 and $ 41,016 were included in other current liabilities and other liabilities, respectively, on the Consolidated Balance Sheets at September 30, 2024.

The Company uses certain foreign currency debt instruments as net investment hedges of foreign operations with a notional amount of € 30,000 ($ 33,485 ) as of September 30, 2024.

Outstanding advance payment amounts totaled $ 40,186 at September 30, 2025, all of which were included in other current liabilities on the Consolidated Balance Sheet.

Outstanding advance payment amounts totaled $ 58,432 at September 30, 2024, of which $ 17,416 and $ 41,016 were included in other current liabilities and other non-current liabilities on the Consolidated Balance Sheet, respectively.

During fiscal 2025, certain cross currency swaps were terminated or modified following the sale of the Company's interest in the SGK Business.

The Company made payments totaling $ 37,092 in connection with the settlement or modification of these cross currency swap contracts.

The Company previously used certain foreign currency debt instruments as net investment hedges of foreign operations with a notional amount of € 30.0 million ($ 33,485 ) as of September 30, 2024.

Currency losses of $ 3,820 (net of income taxes of $ 1,113 ), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at September 30, 2024.

No such net investment hedges were outstanding as of September 30, 2023.

Refer to Note 18, "Accumulated Other Comprehensive Income" for further details regarding amounts recorded in AOCI and the Consolidated Statements of Income (Loss) related to derivatives.

RESTRUCTURING:

During the fourth quarter of fiscal 2024, the Company initiated restructuring programs focused primarily on the Company's engineering and tooling operations in Europe, as well as the Company's general and administrative functions.

Total estimated restructuring costs for these programs are currently expected to be approximately $ 42,000 , of which $ 39,500 relates to severance and employee termination benefits, and $ 2,500 relates to other exit and disposal activities.

These restructuring activities are expected to be completed by fiscal 2026.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

RESTRUCTURING, (continued)

The following table sets forth amounts recognized by the Company in connection with its restructuring programs:

Restructuring amounts by line

item in the Statement of Income (a)

September 30,

2025 2024 (b)

Cost of sales $ 251 $ ( 32,526 )

Selling expense ( 57 ) ( 1,379 )

Administrative expense ( 1,352 ) ( 11,800 )

Income (loss) before income taxes $ ( 1,158 ) $ ( 45,705 )

(a) Positive amounts represent income and negative amounts represent expense.

(b) Includes amounts related to the restructuring programs initiated during the fourth quarter of fiscal 2024, as well as amounts related to other small initiatives completed throughout fiscal 2024.

The costs associated with the Company's restructuring programs principally relate to severance and employee termination benefits.

The following table provides a summary of the severance and employee termination restructuring activities for the year ended September 30, 2025.

Severance and Employee Termination Restructuring Activities

Memorialization Industrial Technologies Brand Solutions Corporate/Non-Operating Consolidated

September 30, 2024 $ 181 $ 35,368 $ 1,247 $ 4,226 $ 41,022

Amounts charged (credited) to expense — ( 811 ) 473 ( 37 ) ( 375 )

Net cash payments ( 162 ) ( 31,426 ) ( 553 ) ( 3,742 ) ( 35,883 )

Other adjustments (1)

( 17 ) ( 2,189 ) ( 156 ) ( 228 ) ( 2,590 )

Sale of SGK Business — — ( 1,011 ) — ( 1,011 )

September 30, 2025 $ 2 $ 942 $ — $ 219 $ 1,163

Cumulative severance and employee termination costs incurred to date (2)

$ 181 $ 32,161 $ 1,720 $ 4,412 $ 38,474

(1) Other adjustments primarily reflects reclassifications of certain balance sheet amounts.

(2) Substantially all estimated severance and employee termination costs related to the restructuring programs have been recognized as of September 30, 2025.

The severance and employee termination liability is included in accrued compensation in the accompanying Consolidated Balance Sheets.

SHAREHOLDERS' EQUITY:

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Repurchased shares may be retained in treasury, utilized for acquisitions, or reissued to employees or other purchasers, subject to the restrictions set forth in the Company's Restated Articles of Incorporation.

On November 21, 2025, the Company announced that its Board of Directors approved the continuation of the stock repurchase program and increased the authorization for stock repurchases by an additional 5,000,000 shares during fiscal year 2025.

Under the current authorization, 5,043,567 shares remain available for repurchase as of September 30, 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

SHARE-BASED PAYMENTS :

The Company maintains an equity incentive plan (as amended and restated, the "2017 Equity Incentive Plan") that provides for grants of stock options, restricted shares, restricted share units ("RSUs"), stock-based performance units and certain other types of stock-based awards.

Under the 2017 Equity Incentive Plan, which has a ten -year term from the date the Company's Board of Directors approved of the amendment and restatement of the 2017 Equity Incentive Plan, the maximum number of shares available for grants or awards is an aggregate of 3,450,000 (subject to adjustment upon certain events such as stock dividends or stock splits), following the amendment and restatement of the 2017 Equity Incentive Plan at the Company's 2022 Annual Shareholder Meeting.

In November 2024, the Board of Directors approved the Second Amended and Restated 2017 Equity Incentive Plan (the "Second Amended 2017 Plan"), which increases the maximum number of shares available for grants or awards to an aggregate of 4,950,000 .

The Second Amended 2017 Plan is subject to shareholder approval at the February 2025 Annual Shareholder Meeting.

Under the 2017 Equity Incentive Plan, which has a ten -year term from the date the Company's Board of Directors approved of the second amendment and restatement of the 2017 Equity Incentive Plan, the maximum number of shares available for grants or awards is an aggregate of 4,950,000 (subject to adjustment upon certain events such as stock dividends or stock splits), following the second amendment and restatement of the 2017 Equity Incentive Plan at the Company's 2025 Annual Shareholder Meeting.

At September 30, 2025, 1,896,757 shares have been issued under the 2017 Equity Incentive Plan.

2 unchanged sentences

The 2017 Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors (the "Committee").

The number of

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

SHARE-BASED PAYMENTS, (continued)

shares issued under performance-based RSUs may be up to 200 % of the number of performance-based RSUs, based on the satisfaction of specific criteria established by the plan administrator.

The number of shares issued under performance-based RSUs may be up to 200 % of the number of performance-based RSUs, based on the satisfaction of specific criteria established by the plan administrator.

For the years ended September 30, 2025, 2024 and 2023, stock-based compensation cost totaled $ 23,065 , $ 18,478 and $ 17,308 , respectively.

Fiscal 2025 stock-based compensation cost included $ 3,470 of accelerated expense related to the Company's divestiture of its interest in the SGK Business (see below).

The associated future income tax benefit recognized was $ 5,387 , $ 4,185 and $ 3,821 for the years ended September 30, 2025, 2024 and 2023, respectively.

With respect to the restricted share unit grants, units generally vest on the third anniversary of the grant date.

With respect to the grants of RSUs, units generally vest on the third anniversary of the grant date.

The number of units that vest depend on certain time and performance thresholds.

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The Company issues common stock from treasury shares once vested.

In conjunction with the sale of the Company's interest in the SGK Business, outstanding RSU awards for SGK Business employees were modified to remove future service requirements and to guarantee vesting at a minimum of 100 percent of target for certain performance-based RSUs (Type III modification under ASC 718).

Consequently, the outstanding RSU awards for these individuals were remeasured as of the date of the sale transaction, and any resulting additional expense or benefit was immediately recognized in the Consolidated Statements of Income.

The transactions for RSUs for the year ended September 30, 2025 were as follows:

5 unchanged sentences

Non-vested at September 30, 2025 1,648,145 $ 30.22

During the third quarter of fiscal 2021, 75,000 stock options were granted under the 2017 Equity Incentive Plan.

The option price for each stock option granted was $ 41.70 , which was equal to the fair market value of the Company's Class A Common Stock on the date of grant.

During the second quarter of fiscal 2024, all of these stock options were forfeited in connection with an employee retirement.

As of September 30, 2025, the total unrecognized compensation cost related to all unvested stock-based awards was $ 13,945 which is expected to be recognized over a weighted-average period of 1.7 years.

The fair value of certain RSUs that are subject to performance conditions are estimated on the date of grant using a binomial lattice valuation model.

The following table indicates the assumptions used in estimating the fair value of certain stock-based awards granted during the year ended September 30, 2024.

The following table indicates the assumptions used in estimating the fair value of certain stock-based awards granted or modified during the year ended September 30, 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

SHARE-BASED PAYMENTS, (continued)

Year Ended September 30, 2025

November 2024 RSU Grant - Matthews Modified November 2024 RSU Grant - SGK Business Modified November 2023 RSU Grant - SGK Business

Expected volatility 31.8 % 36.7 % 36.7 %

2 unchanged sentences

Average expected term (years) 3.0 2.5 1.5

The risk-free interest rate is based on United States Treasury yields at the date of grant.

The dividend yield is based on the most recent dividend payment and average stock price over the 12 months prior to the grant date.

The risk-free interest rate is based on United States Treasury yields at the date of grant or modification.

The dividend yield is based on the most recent dividend payment and average stock price over the 12 months prior to the grant or modification date.

Expected volatilities are based on the historical volatility of the Company's stock price.

3 unchanged sentences

Under the Amended and Restated 2019 Director Fee Plan, non-employee directors (except for the Chairman of the Board) each receive, as an annual retainer fee for fiscal 2025, either cash or shares of the Company's Class A Common Stock with a value equal to $ 90 .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

SHARE-BASED PAYMENTS, (continued)

annual retainer fee for fiscal 2024 paid to the non-employee Chairman of the Board is $ 210 .

The annual retainer fee for fiscal 2025 paid to the non-employee Chairman of the Board under the Amended and Restated 2019 Director Fee Plan is $ 210 .

Where the annual retainer fee is provided in shares, each director may elect to be paid these shares on a current basis or have such shares credited to a deferred stock account as phantom stock, with such shares to be paid to the director subsequent to leaving the Board.

The total number of shares of stock that have been authorized to be issued under the Amended and Restated 2019 Director Fee Plan or credited to a deferred stock compensation account for subsequent issuance is 300,000 shares of Class A Common Stock (subject to adjustment upon certain events such as stock dividends or stock splits), following the amendment and restatement of the 2019 Director Fee Plan at the Company's 2023 Annual Shareholder Meeting.

The value of deferred shares is recorded in other liabilities.

A total of 51,147 shares and share units had been deferred under the Director Fee Plans at September 30, 2024.

In November 2025, the Board of Directors approved the Second Amended and Restated 2019 Director Fee Plan, which increases the maximum number of shares available for grants or awards to 550,000 shares.

The Second Amended and Restated 2019 Director Fee Plan is subject to shareholder approval at the 2026 Annual Meeting of Shareholders.

The value of deferred shares is recorded in other non-current liabilities.

A total of 57,179 shares and share units had been deferred under the Director Fee Plans as of September 30, 2025.

Additionally, non-employee directors each receive an annual stock-based grant (non-statutory stock options, stock appreciation rights and/or restricted shares or units) with a value of $ 140 for fiscal 2025.

1 unchanged sentence

98,945 RSUs are unvested at September 30, 2025 under the Director Fee Plans.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

EARNINGS PER SHARE:

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The Company provides defined benefit pension and other postretirement plans to certain employees.

Effective January 1, 2014, the Company's principal defined benefit retirement plan ("DB Plan") was closed to new participants.

During fiscal 2021, future benefit accruals were frozen for all participants in the Company's DB Plan, non-qualified Supplemental Retirement Plan ("SERP") and the defined benefit portion of the Officers Retirement Restoration Plan ("ORRP").

During fiscal 2021, future benefit accruals were frozen for all participants in the Company's non-qualified Supplemental Retirement Plan ("SERP") and the defined benefit portion of the Officers Retirement Restoration Plan ("ORRP").

Additionally, the Company notified plan participants of its intention to terminate and fully settle the obligations of these plans.

In the first quarter of fiscal 2022, the Company terminated its DB Plan and made plan contributions totaling $ 35,706 to fully fund the planned settlement of the DB Plan obligations.

Also during the first quarter of fiscal 2022, lump sum distributions of $ 185,958 were made from the DB Plan to plan participants, and non-participating annuity contracts totaling $ 56,274 were purchased by the DB Plan for plan participants, resulting in the full settlement of the DB Plan obligations.

The settlement of the DB Plan obligations resulted in the recognition of a non-cash charge of $ 30,856 , which has been presented as a component of other income (deductions), net for the year ended September 30, 2022.

This amount represents the immediate recognition of the remaining portion of the deferred AOCI balances related to the DB Plan.

In the first quarter of fiscal 2023, the Company made lump sum payments totaling $ 24,242 to fully settle the SERP and defined benefit portion of the ORRP obligations.

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Interest cost 493 530 608 684

Actuarial loss (gain) 1,100 ( 512 ) 777 ( 641 )

Settlement — ( 24,242 ) — —

Actuarial (gain) loss ( 1,503 ) 1,100 ( 1,675 ) 777

Exchange loss 763 645 — —

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Employer contributions 573 584 346 513

Settlement — ( 24,242 ) — —

Fair value, end of year — — — —

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(1) Gains and losses related to changes in assumptions (e.g., discount rate, mortality, etc.), salary and other experience impacted benefit obligations.

Based upon actuarial valuations performed as of September 30, 2025 and 2024, both the accumulated benefit obligation and the projected benefit obligation for the Company's defined benefit pension plans was $ 14,034 and $ 14,712 at September 30, 2025 and 2024, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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PENSION AND OTHER POSTRETIREMENT PLANS, (continued)

Based upon actuarial valuations performed as of September 30, 2024 and 2023, both the accumulated benefit obligation and the projected benefit obligation for the Company's defined benefit pension plans was $ 14,712 and $ 12,896 at September 30, 2024 and 2023, respectively.

Net periodic pension and other postretirement benefit cost for the plans included the following:

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Interest cost * 493 530 497 608 684 644

Expected return on plan assets * — — ( 1,040 ) — — —

Amortization:

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Matthews has elected to utilize a full yield curve approach in the estimation of the service and interest cost components of net periodic benefit cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.

Benefit payments under the Company's DB Plan were made from plan assets, while benefit payments under the SERP were made from the Company's operating funds.

Benefit payments under the SERP were made from the Company's operating funds.

Benefit payments under the Company's postretirement benefit plan are made from the Company's operating funds.

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The Company also provides a non-qualified deferred compensation plan for certain executives that permits participants to defer an amount of income into the plan during each calendar year.

There was no expense associated with this plan for the fiscal year ended September 30, 2025.

The expense associated with the contributions made to this plan was $ 700 and $ 1,385 for the fiscal years ended September 30, 2024 and 2023, respectively.

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Settlement losses — — ( 1,271 ) Other income (deductions), net

1,139 ( 135 ) ( 30,809 ) (Loss) income before income taxes (b)

( 289 ) 33 7,548 Income tax benefit (provision)

913 1,139 ( 135 ) Income (loss) before income taxes (b)

( 231 ) ( 289 ) 33 Income tax (provision) benefit

$ 682 $ 850 $ ( 102 ) Net (loss) income

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Net investment hedges 1,076 816 1,159 Interest expense

3,495 3,785 ( 141 ) (Loss) income before income taxes (b)

( 884 ) ( 959 ) 36 Income tax benefit (provision)

2,378 3,495 3,785 Income (loss) before income taxes (b)

( 600 ) ( 884 ) ( 959 ) Income tax (provision) benefit

$ 1,778 $ 2,611 $ 2,826 Net (loss) income

Sale of SGK Business $ ( 92,681 ) $ — $ — Gain on sale of SGK Business

Other divestitures ( 6,844 ) — — Other current liabilities (c)

(a) Prior service cost amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses.

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(b) For pre-tax items, positive amounts represent income and negative amounts represent expense.

(c) Reflects the release of a reserve that was established for currency transaction amounts related to certain net assets classified as held-for-sale as of September 30, 2024.

See Note 23 "Acquisitions and Divestitures."

INCOME TAXES:

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Change in realizability of foreign deferred tax assets 43.8 % ( 30.7 ) % ( 9.5 ) %

Sale of SGK Business 157.5 % — % — %

Pillar Two top-up tax 5.3 % — % — %

Sale of foreign assets 8.6 % — % — %

( 0.8 ) % 4.2 % 0.6 %

Effective tax rate 250.8 % 14.4 % 4.3 %

The Company's consolidated income taxes for the year ended September 30, 2024 were a benefit of $ 9,997 , compared to an expense of $ 1,774 for fiscal 2023, and a benefit of $ 4,391 for fiscal 2022.

The Company's consolidated income taxes for the year ended September 30, 2025 were an expense of $ 40,680 , compared to a benefit of $ 9,997 for fiscal 2024, and an expense of $ 1,774 for fiscal 2023.

The difference between the Company's consolidated income taxes for fiscal 2025 compared to fiscal 2024 partially resulted from the Company's fiscal 2025 pre-tax consolidated income position compared to a pre-tax consolidated loss for fiscal 2024.

The fiscal 2025 tax rate included charges related to changes in the realizability of certain foreign deferred tax assets.

These changes included both current year foreign net operating losses requiring a full valuation allowance as well as other changes in realizability of certain foreign net operating losses from prior years.

The fiscal 2025 consolidated income before income taxes also reflected impacts related to the divestiture of the Company's interest in the SGK Business, the write down of certain net assets held-for-sale that were non-deductible for tax purposes, tax associated with the sale of certain foreign assets not offset by losses, and top-up tax related to the OECD Pillar Two global minimum tax.

Additionally, the fiscal 2025 tax rate benefited from research and development and foreign tax credits.

The fiscal 2024 effective tax rate benefited from research and development and foreign tax credits, and changes in realizability of certain foreign deferred tax assets due to the utilization of foreign tax net operating losses with a valuation allowance.

The fiscal 2024 effective tax rate was negatively impacted by share-based compensation.

The difference between the Company's consolidated income taxes for fiscal 2024 compared to fiscal 2023 partially resulted from the Company's fiscal 2024 pre-tax consolidated loss position compared to pre-tax consolidated income for fiscal 2023.

The fiscal 2024 tax rate included charges related to changes in the realizability of foreign deferred tax assets.

The fiscal 2024 tax rate included charges related to changes in the realizability of certain foreign deferred tax assets.

1 unchanged sentence

Additionally, the fiscal 2024 tax rate benefited from research and development and foreign tax credits.

The fiscal 2023 effective tax rate benefited from research and development and foreign tax credits, and changes in realizability of foreign deferred tax assets due to the utilization of foreign tax net operating losses with a valuation allowance.

The fiscal 2023 effective tax rate benefited from research and development and foreign tax credits, and changes in realizability of certain foreign deferred tax assets due to the utilization of foreign tax net operating losses with a valuation allowance.

The fiscal 2023 effective tax rate was negatively impacted by share-based compensation.

The difference between the Company's consolidated income taxes for fiscal 2023 compared to fiscal 2022 partially resulted from fiscal 2023 having consolidated income before income taxes compared to fiscal 2022 having a consolidated loss before income taxes.

The fiscal 2023 tax rate was negatively impacted by share-based compensation.

Additionally, the fiscal 2023 tax rate benefited from research and development and foreign tax credits and the utilization of foreign tax net operating losses with a valuation allowance.

The fiscal 2022 consolidated loss reflected a goodwill write-down recorded in the fourth quarter of fiscal 2022 that was primarily non-deductible.

The fiscal 2022 effective tax rate also benefited from research and development and foreign tax credits.

The fiscal 2022 effective tax rate was negatively impacted by foreign net operating losses requiring a full valuation allowance.

The Company's foreign subsidiaries had losses before income taxes for the year ended September 30, 2024 of approximately $ 39,069 , income before income taxes for the year ended September 30, 2023 of approximately $ 43,090 and losses before income taxes for the year ended September 30, 2022 of approximately $ 47,653 .

On a combined basis, the Company's foreign subsidiaries had income before income taxes for the year ended September 30, 2025 of approximately $ 30,212 , losses before income taxes for the year ended September 30, 2024 of approximately $ 39,069 and income before income taxes for the year ended September 30, 2023 of approximately $ 43,090 .

At September 30, 2025, undistributed earnings of foreign subsidiaries for which deferred income taxes have not been provided approximated $ 166,683 .

21 unchanged sentences

Depreciation ( 21,130 ) ( 25,724 )

Unrealized gains and losses 21 ( 2,969 )

Goodwill and intangible assets ( 74,471 ) ( 95,828 )

1 unchanged sentence

Operating lease right-of-use assets ( 12,949 ) ( 15,282 )

Investment in Propelis ( 24,320 ) —

Other ( 452 ) ( 843 )

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These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The provisions of the legislation that were effective for fiscal 2025 did not have a material impact on the Company's fiscal 2025 income tax expense.

The Company is currently assessing the impact of the provisions of the OBBBA that are effective in future years on its future consolidated financial statements.

The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitation expires for those tax jurisdictions.

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Although the ultimate disposition of these ordinary course proceedings is not presently determinable, management is of the opinion that they should not result in liabilities in an amount which would materially affect the Company's consolidated financial position, results of operations or cash flows.

In addition to these ordinary course legal proceedings, the Company is involved in the following legal proceeding.

In addition to these ordinary course legal proceedings, the Company is involved in the following legal proceedings.

On October 7, 2024, the United States District Court for the Northern District of California granted the Company’s motion to compel arbitration in response to a complaint filed by Tesla on June 14, 2024 against the Company in the Northern District of California, Civil Action No.

5:24-cv-03615 (N.D.

Cal.), which alleged trade secret misappropriation under the Defend Trade Secrets Act (the "DTSA") and California's Uniform Trade Secrets Act (the "CUTSA"), breach of contract and unfair business practices.

As a result of the Court’s favorable ruling, the matter filed by Tesla has been effectively stayed pending arbitration.

The Company maintains the claims vaguely stated in the complaint are without merit and intends to vigorously defend itself against the allegations.

Cal.), which alleged trade secret misappropriation under the Defend Trade Secrets Act (the "DTSA") and the California Uniform Trade Secrets Act (the "CUTSA"), breach of contract and unfair business practices.

Given the Court’s favorable ruling, the matter filed by Tesla has been effectively stayed pending arbitration, which Tesla has initiated.

The Company maintains the claims vaguely stated in the complaint are without merit and continues to vigorously defend itself against the allegations in confidential arbitration.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

COMMITMENTS AND CONTINGENT LIABILITIES, (continued)

In addition, on February 13, 2025, Tesla filed another additional complaint against the Company in the United States District Court for the Northern District of California alleging, in part, claims related to correction of inventorship, breach of contract, promissory estoppel and quasi-contract/restitution arising from and/or related to various U.S.

patents and provisional patents, including but not limited to U.S.

Similar to the prior matter, this case has also recently been compelled to confidential arbitration by the United States District Court for the Northern District of California.

The Company maintains the claims are without merit and intends to vigorously defend itself against the allegations in the confidential arbitration.

The Company is also defending a separate new confidential arbitration demand, initiated by Tesla on September 8, 2025, which alleges claims for breach of express warranty, declaratory relief, and breach of contract.

The arbitration demand seeks declaratory relief and actual damages, plus interest and costs.

An estimate of the possible loss or range of loss related to the foregoing matters cannot be made at this time given the continued lack of specificity in the pending proceedings and/or the applicable pleadings.

In light of the substantial harm caused to the Company by Tesla's actions, the Company is now pursuing counterclaims against Tesla.

Finally, in October 2025, the Company finalized a confidential settlement agreement resolving claims of alleged copyright infringement arising from a legacy licensing arrangement within the Company's Memorialization segment.

The settlement amount of $ 8,000 was accrued and recognized as a component of administrative expense for the period ended September 30, 2025.

The Company denies fault or wrongdoing in the matter arising from this licensing dispute.

SUPPLEMENTAL CASH FLOW INFORMATION:

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SEGMENT INFORMATION:

The Company manages its businesses under three segments:

Memorialization, Industrial Technologies and SGK Brand Solutions.

The Company manages its businesses under three reportable segments:

Memorialization, Industrial Technologies and Brand Solutions.

The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries.

2 unchanged sentences

and coating and converting lines for the packaging, pharma, foil, décor and tissue industries.

The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.

The Company's primary measure of segment profitability is adjusted earnings before interest, income taxes, depreciation and amortization ("adjusted EBITDA").

Adjusted EBITDA is defined by the Company as earnings before interest, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of its operating results.

These items include stock-based compensation, the non-service portion of pension and postretirement expense, acquisition and divestiture costs, enterprise resource planning ("ERP") integration costs, and strategic initiatives and other charges.

This presentation is consistent with how the Company's chief operating decision maker (the “CODM”) evaluates the results of operations and makes strategic decisions about the business.

For these reasons, the Company believes that adjusted EBITDA represents the most relevant measure of segment profit and loss.

The Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.

On May 1, 2025, the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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SEGMENT INFORMATION, (continued)

Company contributed its SGK Business to a newly-formed entity, Propelis, in exchange for a 40 % ownership interest in Propelis and other consideration.

Propelis is a leading global provider of brand solutions.

Following the completion of this transaction, the Company's Brand Solutions segment consists of its cylinders business, and its 40 % ownership interest in Propelis.

Activity prior to May 1, 2025 for the SGK Business is included within the consolidated financial statements of the Company.

As of May 1, 2025 the SGK Business has been deconsolidated from the financial statements and is now accounted for as part of the Company's equity-method investment in Propelis.

See Notes 8, "Investments" and 23, "Acquisitions and Divestitures" for further information with respect to the Company's sale of its interest in the SGK Business.

The Company's primary measure of segment profitability is adjusted earnings before interest, income taxes, depreciation and amortization ("adjusted EBITDA").

These items include stock-based compensation, the non-service portion of pension and postretirement expense, acquisition and divestiture costs, gains and losses on divestitures, enterprise resource planning ("ERP") integration costs, and strategic initiatives and other charges.

This presentation is consistent with how the Company's chief operating decision maker (the “CODM”), identified as the Company’s President and Chief Executive Officer, evaluates the results of operations and makes strategic and resource allocation decisions about the business.

For these reasons, the Company believes that adjusted EBITDA represents the most relevant measure of segment profit and loss.

In addition, the CODM manages and evaluates the operating performance of the segments, as described above, on a pre-corporate cost allocation basis.

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Management does not allocate non-operating items such as investment income, other income (deductions), net and noncontrolling interest to the segments.

The accounting policies of the segments are the same as those described in Note 2 "Summary of Significant Accounting Policies".

Intersegment sales are accounted for at negotiated prices.

The accounting policies of the segments are the same as those described in Note 2 "Summary of Significant Accounting Policies." Intersegment sales are accounted for at negotiated prices.

Segment assets include those assets that are used in the Company's operations within each segment.

Assets classified under "Corporate and Non-Operating" principally consist of cash and cash equivalents, investments, deferred income taxes and corporate headquarters' assets.

Long-lived assets include property, plant and equipment (net of accumulated depreciation), goodwill, and other intangible assets (net of accumulated amortization).

Information about the Company's segments follows:

Memorialization Industrial Technologies SGK Brand Solutions Corporate and Non-Operating Consolidated

Sales to external customers:

2024 $ 829,731 $ 433,156 $ 532,850 $ — $ 1,795,737

The following tables present sales and significant expense categories that align with the segment-level information that is regularly provided to the CODM.

Information about the Company’s reportable segments follows:

Year Ended September 30, 2025

Memorialization Industrial Technologies Brand Solutions (1)

Reportable Segments Total

Sales $ 809,514 $ 342,229 $ 345,946 $ 1,497,689

Cost of sales (2)

( 452,991 ) ( 231,166 ) ( 257,886 ) ( 942,043 )

Gross profit (2)

356,523 111,063 88,060 555,646

Intersegment sales:

Selling expense (2)

( 83,037 ) ( 29,957 ) ( 2,770 ) ( 115,764 )

Administrative expense (2)

( 103,960 ) ( 53,170 ) ( 51,338 ) ( 208,468 )

Other segment items (3)

— — 6,359 6,359

Adjusted EBITDA $ 169,526 $ 27,936 $ 40,311 $ 237,773

Intersegment sales $ — $ 2,319 $ 433 $ 2,752

Depreciation and amortization 30,332 21,870 16,949 69,151

2024 27,768 23,772 38,667 4,563 94,770

2023 23,738 23,184 44,842 4,766 96,530

Total assets 885,386 448,195 327,241 1,660,822

Capital expenditures 16,468 12,185 7,031 35,684

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

SEGMENT INFORMATION, (continued)

Year Ended September 30, 2024

Memorialization Industrial Technologies Brand Solutions Reportable Segments Total

Sales $ 829,731 $ 433,156 $ 532,850 $ 1,795,737

Cost of sales (2)

( 490,456 ) ( 303,367 ) ( 388,641 ) ( 1,182,464 )

Adjusted EBITDA:

Gross profit (2)

339,275 129,789 144,209 613,273

Selling expense (2)

( 76,903 ) ( 30,578 ) ( 31,717 ) ( 139,198 )

Administrative expense (2)

( 99,786 ) ( 59,495 ) ( 50,872 ) ( 210,153 )

Adjusted EBITDA $ 162,586 $ 39,716 $ 61,620 $ 263,922

Intersegment sales $ — $ 1,367 $ 3,707 $ 5,074

Depreciation and amortization 27,768 23,772 38,667 90,207

Total assets 790,098 460,650 532,178 1,782,926

2024 790,098 460,650 532,178 51,964 1,834,890

2023 794,129 482,444 572,601 38,207 1,887,381

2022 800,666 414,019 631,291 36,795 1,882,771

Capital expenditures 13,749 17,757 12,520 44,026

Year Ended September 30, 2023

Memorialization Industrial Technologies Brand Solutions Reportable Segments Total

Sales $ 842,997 $ 505,751 $ 532,148 $ 1,880,896

Cost of sales (2)

( 504,725 ) ( 349,673 ) ( 393,380 ) ( 1,247,778 )

Gross profit (2)

338,272 156,078 138,768 633,118

Selling expense (2)

( 75,301 ) ( 29,800 ) ( 32,217 ) ( 137,318 )

Administrative expense (2)

( 98,985 ) ( 60,000 ) ( 49,423 ) ( 208,408 )

Adjusted EBITDA $ 163,986 $ 66,278 $ 57,128 $ 287,392

Intersegment sales $ — $ 1,829 $ 1,073 $ 2,902

Depreciation and amortization 23,738 23,184 44,842 91,764

Total assets 794,129 482,444 572,601 1,849,174

Capital expenditures 16,868 16,253 14,589 47,710

(1) Amounts do not include revenue recognized by, costs and expenses attributable to, or assets owned by Propelis, since Propelis is a non-consolidated subsidiary accounted for under the equity-method.

(see Note 8, "Investments" for further information).

(2) Amounts do not include certain non-cash and/or non-recurring items that do not contribute directly to management's evaluation of its operating results (as described further in the reconciliation of adjusted EBITDA in the table below) and also exclude depreciation, amortization and stock-based compensation expense.

(3) Fiscal 2025 includes the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis (see Note 8, "Investments" for further information with respect to the equity-method investment in Propelis).

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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2025 2024 2023

Total Adjusted EBITDA $ 205,157 $ 225,809 $ 210,408

Reportable Segments Adjusted EBITDA $ 237,773 $ 263,922 $ 287,392

Corporate and Non-Operating ( 50,265 ) ( 58,765 ) ( 61,583 )

Acquisition and divestiture related items (1)**

2 unchanged sentences

( 39,586 ) ( 65,586 ) ( 13,923 )

Non-recurring / incremental COVID-19 costs (3)***

— — ( 2,985 )

Gain on sale of SGK Business 55,139 — —

Highly inflationary accounting losses (primarily non-cash) (3)

( 1,135 ) ( 1,027 ) ( 1,360 )

Defined benefit plan termination related items (5)

Goodwill and asset write-downs (4)

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( 66,815 ) ( 55,364 ) ( 48,690 )

Propelis depreciation, amortization, interest and other items (7)

( 6,359 ) — —

Net loss attributable to noncontrolling interests — — ( 155 )

(Loss) income before income taxes ( 69,657 ) 40,910 ( 104,219 )

Income tax benefit (provision) 9,997 ( 1,774 ) 4,391

Income (loss) before income taxes 16,209 ( 69,657 ) 40,910

Income tax (provision) benefit ( 40,680 ) 9,997 ( 1,774 )

Net (loss) income $ ( 24,471 ) $ ( 59,660 ) $ 39,136

(1) Includes certain non-recurring costs associated with recent acquisition and divestiture activity, and also includes a gain of $ 1,827 in fiscal year 2023 related to the divestiture of a business in the Industrial Technologies segment.

(1) Includes certain non-recurring items associated with recent acquisition and divestiture activities, and also includes a loss of $ 2,072 for the fiscal year ended September 30, 2025 related to the divestiture of a business in the Industrial Technologies segment (See Note 23, "Acquisitions and Divestitures).

Fiscal 2023 includes a gain of $ 1,827 related to the divestiture of a business in the Industrial Technologies segment.

(2) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives and costs associated with global ERP system integration efforts.

Fiscal 2024 also includes legal costs related to an ongoing dispute with Tesla, which totaled $ 12,399 (See Note 19, "Commitments and Contingent Liabilities").

Fiscal 2023 includes loss recoveries totaling $ 2,154 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.

(3) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19.

This amount does not include the impact of any lost sales or underutilization due to COVID-19.

Also includes legal costs related to an ongoing dispute with Tesla, which totaled $ 22,166 and $ 12,399 for the fiscal years ended September 30, 2025 and 2024, respectively (See Note 20, "Commitments and Contingent Liabilities").

Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled $ 5,109 .

Fiscal 2025 includes $ 8,000 of expense related to the settlement of a contractual licensing matter within the Memorialization segment (See Note 20, "Commitments and Contingent Liabilities").

Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $ 3,556 .

Fiscal 2025 and 2023 include loss recoveries totaling $ 1,708 and $ 2,154 , respectively, which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.

(3) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.

(5) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan.

(4) Fiscal 2025 includes asset write-downs within the Brand Solutions segment of $ 7,911 (see Note 25, "Asset Write-Downs").

Fiscal 2024 includes goodwill write-downs within the Industrial Technologies segment of $ 16,727 (see Note 24, "Goodwill and Other Intangible Assets"), asset write-downs within the Memorialization segment of $ 13,716 (see Note 25, "Asset Write-Downs"), and investment write-downs within Corporate and Non-operating of $ 3,131 (see Note 8, "Investments").

Fiscal 2022 includes goodwill write-downs within the SGK Brand Solutions segment of $ 82,454 (see Note 23, "Goodwill and Other Intangible Assets"), and asset write-downs net of recoveries within the SGK Brand Solutions segment of $ 10,050 (see Note 24, "Asset Write-Downs").

(5) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses.

4 unchanged sentences

(6) Includes fees for receivables sold under the RPA and factoring arrangements totaling $ 3,920 , $ 4,830 and $ 4,042 for the fiscal years ended September 30, 2025, 2024 and 2023, respectively.

* Depreciation and amortization was $ 27,768 , $ 23,738 , and $ 23,228 for the Memorialization segment, $ 23,772 , $ 23,184 , and $ 11,387 for the Industrial Technologies segment, $ 38,667 , $ 44,842 , and $ 64,173 for the SGK Brand Solutions segment, and $ 4,563 , $ 4,766 , and $ 5,268 for Corporate and Non-Operating, for the fiscal years ended September 30, 2024, 2023, and 2022, respectively.

** Acquisition and divestiture costs, ERP integration costs, and strategic initiatives and other charges were $ 3,514 , $ 1,002 , and $ 3,517 for the Memorialization segment, $ 54,357 , $ 4,108 , and $ 5,631 for the Industrial Technologies segment, $ 3,001 , $ 10,905 , and $ 19,359 for the SGK Brand Solutions segment, and $ 10,290 , $ 3,201 , and $ 7,451 for Corporate and Non-Operating, for the fiscal years ended September 30, 2024, 2023, and 2022, respectively.

*** Non-recurring/incremental COVID-19 costs were $ 1,314 for the Memorialization segment, $ 6 for the Industrial Technologies segment, $ 1,199 for the SGK Brand Solutions segment, and $ 466 for Corporate and Non-Operating, for the fiscal year ended September 30, 2022.

(7) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis (see Note 8, "Investments" for further information with respect to the equity-method investment in Propelis).

* Depreciation and amortization was $ 30,332 , $ 27,768 , and $ 23,738 for the Memorialization segment, $ 21,870 , $ 23,772 , and $ 23,184 for the Industrial Technologies segment, $ 16,949 , $ 38,667 , and $ 44,842 for the Brand Solutions segment, and $ 2,595 , $ 4,563 , and $ 4,766 for Corporate and Non-Operating, for the fiscal years ended September 30, 2025, 2024, and 2023, respectively.

** Acquisition and divestiture costs, ERP integration costs, and strategic initiatives and other charges were $ 13,876 , $ 3,514 , and $ 1,002 for the Memorialization segment, $ 27,868 , $ 54,357 , and $ 4,108 for the Industrial Technologies segment, $ 4,024 , $ 3,001 , and $ 10,905 for the Brand Solutions segment, and $ 3,089 , $ 10,290 , and $ 3,201 for Corporate and Non-Operating, for the fiscal years ended September 30, 2025, 2024, and 2023, respectively.

† Strategic initiatives and other charges includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling $ 1,158 , $ 45,705 and $ 13,210 in fiscal years 2025, 2024 and 2023, respectively.

Fiscal 2024 amounts totaling $ 32,526 , $ 1,379 and $ 11,800 were presented in cost of sales, selling expense, and administrative expense, respectively.

Fiscal 2023 amounts totaling $ 9,028 , $ 1,925 and $ 2,257 were presented in cost of sales, selling expense, and administrative expense, respectively.

Fiscal 2022 amounts totaling $ 1,777 , $ 267 and $ 12,552 were presented in cost of sales, selling expense, and administrative expense, respectively.

Accrued severance and other employee termination benefits totaled $ 42,245 and $ 7,321 as of September 30, 2024 and 2023, respectively.

Refer to Note 13, "Restructuring" for further details.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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ACQUISITIONS AND DIVESTITURES:

In May 2025, the Company acquired The Dodge Company ("Dodge") within the Memorialization segment for a purchase price of $ 55,624 (net of cash acquired).

Dodge is a leading supplier of embalming chemicals and supplies in North America and sells a variety of other related products to Funeral Homes.

Annual sales for this business were approximately $ 43,000 prior to the acquisition.

The preliminary purchase price allocation was not finalized as of September 30, 2025 and remains subject to change as the Company obtains additional information related to working capital and other intangibles assets.

On May 1, 2025, the Company contributed its SGK Business to a newly-formed entity, Propelis, in exchange for 40 % of the common equity of Propelis, a $ 50,000 preferred equity investment in Propelis, and cash proceeds of $ 228,004 (net of $ 22,996 of divested cash).

The Company retained its European cylinders (packaging) business and other related investments following the completion of this transaction.

The Company recognized a gain on sale of the SGK Business totaling $ 55,139 ($ 6,158 after-tax) during fiscal 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

ACQUISITIONS AND DIVESTITURES, (continued)

The following table summarizes the carrying values of the SGK Business assets and liabilities divested on May 1, 2025.

Cash and cash equivalents $ 22,996

Accounts receivable, net 72,146

Inventories, net 31,236

Property, plant and equipment, net 40,425

Operating lease right-of-use assets 18,334

Goodwill 223,719

Other intangible assets, net 23,672

Other current and non-current assets 18,614

Total assets 451,142

Current portion of operating lease liabilities 7,478

Trade accounts payable 14,805

Accrued compensation 12,258

Long-term debt 5,817

Operating lease liabilities 11,619

Deferred income taxes 16,837

Other current and non-current liabilities 27,384

Total liabilities 96,198

Net assets $ 354,944

Income before income taxes for the divested SGK Business totaled $ 12,647 , $ 6,526 , and $ 12,238 for the years ended September 30, 2025, 2024 and 2023, respectively.

In March 2025, the Company completed a small divestiture within the Industrial Technologies segment.

Net proceeds from the divestiture totaled $ 2,049 , and the transaction resulted in a pre-tax loss of $ 2,072 , which was recorded as a component of administrative expense for the year ended September 30, 2025.

In October 2024, the Company completed a small acquisition within the Memorialization segment for a purchase price of $ 2,218 .

The Company finalized the allocation of the purchase price in the fourth quarter of fiscal 2025, resulting in no significant adjustments.

During the first quarter of fiscal 2025, the Company completed a small divestiture within the Memorialization segment.

The net assets for this business were fully written-down in fiscal 2024 in anticipation of the disposal transaction.

In January 2024, the Company completed a small acquisition within the Memorialization segment for a purchase price of $ 5,825 (net of holdbacks and other adjustments, including working capital).

The Company finalized the allocation of the purchase price in the fourth quarter of fiscal 2024, resulting in no significant adjustments.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

ACQUISITIONS AND DIVESTITURES, (continued)

In September 2023, the Company completed a small divestiture within the Industrial Technologies segment.

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The Company finalized the allocation of the purchase price in the first quarter of fiscal 2024, resulting in no significant adjustments.

In February 2023, the Company acquired Eagle Granite Company ("Eagle") within the Memorialization segment for a total purchase price of $ 18,384 , consisting of cash of $ 8,650 (net of cash acquired) and a deferred purchase price amount of $ 9,734 , which is scheduled to be paid to the seller two years from the acquisition date.

In February 2023, the Company acquired Eagle Granite Company ("Eagle") within the Memorialization segment for a total purchase price of $ 18,384 , consisting of cash of $ 8,650 (net of cash acquired) and a deferred purchase price amount of $ 9,734 , which was paid to the seller two years after the acquisition date.

In addition, the Company has recorded a liability of approximately $ 3,800 for potential future contingent consideration related to certain earnout provisions, which, if owed, is scheduled to be paid to the seller four years from the acquisition date.

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The Company finalized the allocation of the purchase price in the first quarter of fiscal 2024, resulting in adjustments to certain liability accounts.

During the first fiscal quarter of 2023, the Company completed small acquisitions within the SGK Brand Solutions segment for a combined purchase price of $ 1,932 (net of cash acquired and holdbacks).

During the first fiscal quarter of 2023, the Company completed small acquisitions within the Brand Solutions segment for a combined purchase price of $ 1,932 (net of cash acquired and holdbacks).

The Company finalized the purchase price allocations in the fourth quarter of fiscal 2023, resulting in an immaterial adjustment to certain tax accounts.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Dollar amounts in thousands, except per share data)

ACQUISITIONS AND DIVESTITURES, (continued)

In August 2022, the Company acquired German-based engineering firms OLBRICH and R+S Automotive for a purchase price of approximately € 43,700 ($ 44,469 ) (net of cash acquired) within the Industrial Technologies segment.

OLBRICH is a production and intelligent equipment manufacturer, specializing in purpose-built rotary processing equipment, including equipment used in the manufacturing of dry and wet electrodes for lithium-ion batteries used in electric vehicles and components for hydrogen fuel cells and electrolyzers, with additional strong positions in Specialty & Pharma, Packaging and Home & Décor.

R+S Automotive is a specialty engineering services provider of automation, plant and tooling concepts for automotive manufacturing companies around the world.

Annual sales for these businesses were approximately $ 140,000 prior to the acquisition.

The Company finalized the allocation of the purchase price in the fourth quarter of fiscal 2023, resulting in an immaterial adjustment to certain working capital, tax, and other accounts.

GOODWILL AND OTHER INTANGIBLE ASSETS:

Changes to goodwill during the years ended September 30, 2025 and 2024, follow.

Memorialization Industrial Technologies SGK Brand Solutions Consolidated

Memorialization Industrial Technologies Brand Solutions Consolidated

Net goodwill at September 30, 2023 $ 366,015 $ 115,073 $ 217,021 $ 698,109

Additions during period 2,551 — — 2,551

Divestiture during period — ( 2,525 ) — ( 2,525 )

Translation and other adjustments 4,578 1,199 7,413 13,190

Goodwill write-down — ( 16,727 ) — ( 16,727 )

Net goodwill at September 30, 2024 373,144 99,545 224,434 697,123

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Translation and other adjustments ( 213 ) 479 ( 6,385 ) ( 6,119 )

Goodwill write-down — ( 16,727 ) — ( 16,727 )

Sale of SGK Business — — ( 218,049 ) ( 218,049 )

Net goodwill at September 30, 2025 $ 387,537 $ 100,024 $ — $ 487,561

The net goodwill balances at September 30, 2025 and 2024 included $ 45,673 and $ 277,913 of accumulated impairment losses, respectively.

Accumulated impairment losses at September 30, 2024 were $ 5,000 , $ 40,673 , and $ 232,240 for the Memorialization, Industrial Technologies and SGK Brand Solutions segments, respectively.

Accumulated impairment losses at September 30, 2023 were $ 5,000 , $ 23,946 , and $ 232,240 for the Memorialization, Industrial Technologies and SGK Brand Solutions segments, respectively.

In fiscal 2024, the additions reflect the acquisition of a small business within the Memorialization segment.

The Company performed its annual impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2024 (January 1, 2024) and determined that the estimated fair values for all goodwill reporting units exceeded their carrying values, therefore no impairment charges were necessary.

The results of this review indicated that the estimated fair value of the Company's SGK Brand Solutions reporting unit exceeded the carrying value (expressed as a percentage of carrying value) by approximately 7 %.

The fair value for the reporting unit was determined using level 3 inputs (including estimates of revenue growth, EBITDA contribution and the discount rates) and a combination of the income approach using the estimated discounted cash flows and a market-based valuation methodology.

If current projections are not achieved or specific valuation factors outside the Company's control (such as discount rates and continued economic and industry challenges) significantly change, additional goodwill write-downs may be necessary in future periods.

Accumulated impairment losses at September 30, 2025 were $ 5,000 and $ 40,673 for the Memorialization and Industrial Technologies segments, respectively.

Accumulated impairment losses at September 30, 2024 were $ 5,000 , $ 40,673 , and $ 232,240 for the Memorialization, Industrial Technologies and Brand Solutions segments, respectively.

In fiscal 2025, the additions reflect the acquisitions of The Dodge Company and another small business within the Memorialization segment.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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GOODWILL AND OTHER INTANGIBLE ASSETS, (continued)

The Company performed its annual quantitative impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2025 (January 1, 2025) and determined that the estimated fair values for all goodwill reporting units and indefinite-lived intangible assets exceeded their carrying values, and, therefore, no impairment charges were necessary at such time.

In fiscal 2024, the additions reflect the acquisition of a small business within the Memorialization segment.

The Company's Surfaces and Engineering reporting unit experienced declines during the fourth quarter of fiscal 2024, primarily related to the Company's recently acquired (August 2022) Olbrich GmbH business.

2 unchanged sentences

The fair value for the reporting unit was determined using level 3 inputs (including estimates of revenue growth, EBITDA contribution and the discount rates) and the income approach valuation methodology which utilizes estimated discounted cash flows of the reporting unit.

In fiscal 2023, the additions reflect the acquisition of Eagle Granite Company within the Memorialization segment, the purchase of the remaining ownership interest in an Industrial Technologies subsidiary, and small acquisitions within the SGK Brand Solutions segment.

In fiscal 2022, in its assessment of the potential impacts of weakened economic conditions (particularly in Europe), increases in the cost of certain materials, labor, and other inflation-related pressures, and unfavorable changes in foreign exchange rates on the estimated future earnings and cash flows for the SGK Brand Solutions reporting unit, and in light of the limited excess fair value over carrying value for this reporting unit, management determined a triggering event occurred, resulting in a re-evaluation of goodwill for the reporting unit, as of September 1, 2022.

As a result of this interim assessment, the Company recorded a goodwill write-down totaling $ 82,454 during the fiscal 2022 fourth quarter.

Subsequent to this write-down, the fair value of the SGK Brand Solutions reporting unit approximated its carrying value at September 1, 2022.

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2025 and 2024, respectively.

13 unchanged sentences

$ 581,691 $ ( 455,665 ) $ 126,026

The net change in intangible assets during fiscal 2024 included the impact of foreign currency fluctuations during the period, additional amortization, and additions related to a small acquisition within the Memorialization segment.

The net change in intangible assets during fiscal 2025 primarily reflected the sale of the Company's interest in the SGK Business, additions related to the Dodge acquisition, the impact of foreign currency fluctuations during the period, and additional amortization.

Amortization expense on intangible assets was $ 20,069 , $ 37,023 , and $ 42,068 in fiscal 2025, 2024 and 2023, respectively.

The fiscal 2025 decrease in intangible amortization reflected certain intangible assets reaching the end of their amortizable lives, and lower amortization following the Company's divestiture of its interest in the SGK Business.

Fiscal year amortization expense is estimated to be approximately $ 9,497 in 2026, $ 8,597 in 2027, $ 6,702 in 2028, $ 5,782 in 2029 and $ 5,314 in 2030.

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ASSET WRITE-DOWNS:

During the fourth quarter of fiscal 2025, the Company recognized a non-cash impairment charge of $ 7,911 for the write-down of certain net assets held-for-sale within the Brand Solutions segment.

The held-for-sale adjustment included a $ 3,096 provision for certain amounts included in AOCI within currency translation adjustment.

This write-down was recorded as a component of administrative expenses for the year ended September 30, 2025.

During the fourth quarter of fiscal 2024, the Company recognized a non-cash impairment charge of $ 13,716 for the full write-down of certain net assets held-for-sale within the Memorialization segment.

1 unchanged sentence

This write-down was recorded as a component of administrative expenses for the year ended September 30, 2024.

The Company has certain operations in Russia within its SGK Brand Solutions segment.

During fiscal 2022, in light of the war between Russia and Ukraine, and the resulting regional instability and evolving political and economic conditions within the region, the Company evaluated certain of its assets for recoverability and impairment.

As a result of this assessment, and due to the uncertainty in projecting future cash flows for the Company's operations in Russia, the Company recorded asset write-downs totaling $ 10,050 (net of recoveries) during fiscal 2022 to reduce the carrying value of these assets to zero .

Asset write-downs (primarily related to property, plant and equipment) totaling $ 9,686 and $ 364 were reported within cost of sales and administrative expense, respectively, for the year ended September 30, 2022.

RELATED PARTY TRANSACTIONS:

In connection with the sale of the Company's interest in the SGK Business, the Company has agreed to provide certain administrative services for Propelis under a Transitional Services Agreement (the “TSA”).

The services provided under the TSA include ERP system access and related information technology support;

tax, treasury and accounting support;

transactional processing such as, invoicing, collections, cash application, purchasing, payroll and payment processing;

and certain other services.

The Company receives an administrative support fee from Propelis for providing these ongoing services.

Such administrative support fees are intended to approximate the underlying cost of providing such services for Propelis.

During fiscal 2025, the Company recognized $ 4,107 of administrative support fees under the TSA, which were included as a component of administrative expense.

Sales to and purchases from Propelis were immaterial for the fiscal year ended September 30, 2025.

As of September 30, 2025, amounts due to Matthews from Propelis totaled $ 3,971 , which reflected outstanding administrative fees, and net transactional amounts pending settlement under the TSA.

Such amounts were included as a component of accounts receivable.

SUBSEQUENT EVENT:

On November 12, 2025, subsequent to the date of the balance sheet, the Company entered into an Equity Purchase Agreement (the “Purchase Agreement”) for the sale of its Warehouse Automation business to Duravant LLC, a global leader in engineered equipment and automation solutions.

The Warehouse Automation business is part of the Company’s Industrial Technologies segment.

Under the terms of the Purchase Agreement, at the closing of the proposed transaction, the Company will receive total consideration of $ 230,000 , representing cash consideration of $ 223,300 plus the assumption of certain liabilities related to the Warehouse Automation business, subject to adjustment based on a number of factors, including, but not limited to, indemnification obligations and the final determination (in accordance with the Purchase Agreement) of the total adjusted consideration (based on an agreed enterprise value of $ 230,000 , plus cash, less debt and transaction expenses and subject to a customary net working capital adjustment measured against a target amount).

The proposed transaction is expected to be completed in fiscal 2026, subject to customary closing conditions, including regulatory approvals.

The foregoing summary of the Purchase Agreement is incomplete and is qualified in its entirety to the complete text of the Purchase Agreement, which was filed as Exhibit 2.1 to that Current Report on Form 8-K with the SEC on November 13, 2025.

FINANCIAL STATEMENT SCHEDULE

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(Dollar amounts in thousands)

Allowance for Doubtful Accounts:

Allowance for Credit Losses:

Fiscal Year Ended:

3 unchanged sentences

(1) Amounts determined not to be collectible (including direct write-offs), net of recoveries.

Fiscal 2025 amounts include $ 582 related to the divestiture of the Company's interest in the SGK Business.

Description Balance at Beginning of Period Provision Charged (Credited) To Expense (1, 2)

Allowance Changes Other (Deductions) Additions (2,4)

Allowance Changes Other Additions (Deductions) (3,4)

Balance at End of Period

6 unchanged sentences

(1) Amounts relate primarily to adjustments in net operating loss carryforwards which are precluded from use.

(2) Fiscal 2023 and 2022 consists principally of adjustments related to foreign exchange.

(2) Fiscal 2025 amount is comprised of a $ 2,852 benefit related to the release of a valuation allowance, an $ 11,840 expense related to the divestiture of the Company's interest in the SGK Business, and a $ 9,955 expense primarily related to adjustments in net operating loss carryforwards which are precluded from use.

Fiscal 2024 amount is comprised of a $ 2,032 benefit related to the release of valuation allowance, and a $ 26,184 expense primarily related to adjustments in net operating loss carryforwards which are precluded from use.

Fiscal 2022 amount is comprised of a $ 5,004 benefit related to non-survivability of deferred tax assets with full valuation allowance due to entity dissolution and a $ 3,704 expense primarily related to adjustments in net operating loss carryforwards which are precluded from use.

(3) Fiscal 2025 amount primarily consists of foreign exchange and the impacts from the Company's divestiture of its interest in the SGK Business.

Fiscal 2024 amount is comprised of a $ 2,802 decrease related to non-survivability of deferred tax assets with a full valuation allowance due to held-for-sale asset write-downs, and a $ 1,606 addition related to foreign exchange.

(4) Fiscal 2023 consists principally of adjustments related to foreign exchange.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

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-K

Item 8. Financial Statements and Supplementary Data