What changed in this filing

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Item 1. Financial Statements

2026-02-04 compared with 2025-08-06 · 373 added, 518 removed, 566 unchanged (61% of the section changed)

3 unchanged sentences

(Dollar amounts in thousands)

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Current assets:

35 unchanged sentences

Treasury stock, at cost ( 183,395 ) ( 197,277 )

Total shareholders' equity-Matthews 513,832 437,158

Noncontrolling interests — 48

Total shareholders' equity 543,216 480,942

5 unchanged sentences

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Sales $ 284,763 $ 401,842

4 unchanged sentences

Intangible amortization ( 2,966 ) ( 8,608 )

Gain on sale of SGK Business 57,103 — 57,103 —

Gain on divestitures, net 113,209 —

Operating profit 97,524 5,674

3 unchanged sentences

Income tax (provision) benefit ( 40,789 ) 2,358

Net income 15,387 1,777 2,999 8,501

Net loss attributable to noncontrolling interests — — — —

Net income attributable to Matthews shareholders $ 15,387 $ 1,777 $ 2,999 $ 8,501

Earnings per share attributable to Matthews shareholders:

Net income (loss) $ 43,629 $ ( 3,472 )

Earnings (loss) per share:

Basic $ 1.39 $ ( 0.11 )

4 unchanged sentences

(Dollar amounts in thousands)

Three Months Ended June 30,

Matthews Noncontrolling Interest Total

2025 2024 2025 2024 2025 2024

Three Months Ended December 31,

Net income (loss):

$ 43,629 $ ( 3,472 )

5 unchanged sentences

Net amount reclassified to earnings ( 149 ) ( 350 )

Net change in unrecognized loss on cash flow hedges ( 1,399 ) ( 401 ) — — ( 1,399 ) ( 401 )

OCI, net of tax 97,446 ( 1,605 ) — — 97,446 ( 1,605 )

Comprehensive income $ 112,833 $ 172 $ — $ — $ 112,833 $ 172

Nine Months Ended June 30,

Matthews Noncontrolling Interest Total

2025 2024 2025 2024 2025 2024

$ 2,999 $ 8,501 $ — $ — $ 2,999 $ 8,501

OCI, net of tax:

Foreign currency translation adjustment 92,542 4,689 — 22 92,542 4,711

Pension plans and other postretirement benefits ( 378 ) ( 596 ) — — ( 378 ) ( 596 )

Unrecognized (loss) gain on cash flow hedges:

Net change from periodic revaluation ( 408 ) ( 2,301 ) — — ( 408 ) ( 2,301 )

Net amount reclassified to earnings ( 742 ) ( 1,497 ) — — ( 742 ) ( 1,497 )

Net change in unrecognized (loss) gain on cash flow hedges ( 196 ) 2,215

OCI, net of tax 27,806 ( 12,749 )

Comprehensive income $ 94,013 $ 8,796 $ — $ 22 $ 94,013 $ 8,818

Comprehensive income (loss) $ 71,435 $ ( 16,221 )

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

1 unchanged sentence

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

for the three and nine months ended June 30, 2025 and 2024 (Unaudited)

for the three months ended December 31, 2025 and 2024 (Unaudited)

(Dollar amounts in thousands, except per share data)

5 unchanged sentences

(Loss) Income Treasury

Interests Total

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

Net loss — — ( 3,472 ) — — — ( 3,472 )

Minimum pension liability — — — ( 353 ) — — ( 353 )

Translation adjustment — — — ( 14,611 ) — — ( 14,611 )

Fair value of cash flow hedges — — — 2,215 — — 2,215

Total comprehensive loss ( 16,221 )

Stock-based compensation — 4,979 — — — — 4,979

Purchase of 171,101 shares of treasury stock

— — — — ( 4,275 ) — ( 4,275 )

Issuance of 537,295 shares of treasury stock

— ( 19,888 ) — — 19,888 — —

Dividends — — ( 8,233 ) — — — ( 8,233 )

December 31, 2024 $ 36,334 $ 144,588 $ 611,358 $ ( 181,491 ) $ ( 197,381 ) $ 48 $ 413,456

Net loss — — ( 8,916 ) — — — ( 8,916 )

Minimum pension liability — — — ( 69 ) — — ( 69 )

Translation adjustment — — — 8,352 — — 8,352

Fair value of cash flow hedges — — — ( 1,966 ) — — ( 1,966 )

Total comprehensive loss ( 2,599 )

Stock-based compensation — 6,018 — — — — 6,018

Purchase of 5,866 shares of treasury stock

— — — — ( 151 ) — ( 151 )

Issuance of 45,803 shares of treasury stock

— ( 1,684 ) — — 1,684 — —

Dividends — — ( 8,484 ) — — — ( 8,484 )

March 31, 2025 $ 36,334 $ 148,922 $ 593,958 $ ( 175,174 ) $ ( 195,848 ) $ 48 $ 408,240

Net income — — 43,629 — — 43,629

9 unchanged sentences

Dividends — — ( 8,405 ) — — ( 8,405 )

Divestiture — — — — — ( 48 ) ( 48 )

June 30, 2025 $ 36,334 $ 151,753 $ 601,007 $ ( 77,728 ) $ ( 197,534 ) $ — $ 513,832

MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY, Continued

for the three and nine months ended June 30, 2025 and 2024 (Unaudited)

(Dollar amounts in thousands, except per share data)

December 31, 2025 $ 36,334 $ 139,979 $ 600,502 $ ( 50,204 ) $ ( 183,395 ) $ 543,216

Shareholders' Equity

10 unchanged sentences

Fair value of cash flow hedges — — — 2,215 — — 2,215

Total comprehensive income 4,443

Total comprehensive loss ( 16,221 )

Stock-based compensation — 4,979 — — — — 4,979

4 unchanged sentences

Dividends — — ( 8,233 ) — — — ( 8,233 )

Transactions with non-controlling interest — ( 412 ) — — — 412 —

December 31, 2024 $ 36,334 $ 144,588 $ 611,358 $ ( 181,491 ) $ ( 197,381 ) $ 48 $ 413,456

Net income — — 9,027 — — — 9,027

Minimum pension liability — — — ( 282 ) — — ( 282 )

Translation adjustment — — — ( 6,026 ) — — ( 6,026 )

Fair value of cash flow hedges — — — 1,484 — — 1,484

Total comprehensive income 4,203

Stock-based compensation — 4,327 — — — — 4,327

Purchase of 1,029 shares of treasury stock

— — — — ( 35 ) — ( 35 )

Issuance of 28,878 shares of treasury stock

— ( 1,077 ) — — 1,077 — —

Dividends — — ( 7,957 ) — — — ( 7,957 )

March 31, 2024 $ 36,334 $ 150,344 $ 705,113 $ ( 172,504 ) $ ( 209,987 ) $ 47 $ 509,347

Net income — — 1,777 — — — 1,777

Minimum pension liability — — — ( 234 ) — — ( 234 )

Translation adjustment — — — ( 970 ) — — ( 970 )

Fair value of cash flow hedges — — — ( 401 ) — — ( 401 )

Total comprehensive income 172

Stock-based compensation — 5,331 — — — — 5,331

Purchase of 114,666 shares of treasury stock

— — — — ( 3,305 ) — ( 3,305 )

Issuance of 2,431 shares of treasury stock

— ( 91 ) — — 91 — —

Dividends — — ( 7,853 ) — — — ( 7,853 )

June 30, 2024 $ 36,334 $ 155,584 $ 699,037 $ ( 174,109 ) $ ( 213,201 ) $ 47 $ 503,692

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

2 unchanged sentences

(Dollar amounts in thousands)

Nine Months Ended

Three Months Ended

Cash flows from operating activities:

Net income $ 2,999 $ 8,501

Adjustments to reconcile net income to net cash flows from operating activities:

Net income (loss) $ 43,629 $ ( 3,472 )

Adjustments to reconcile net income (loss) to net cash flows from operating activities:

Depreciation and amortization 12,696 22,504

Stock-based compensation expense 4,407 4,979

Deferred tax expense (benefit) 15,852 ( 24,269 )

Deferred tax benefit ( 61 ) —

Gain on sale of assets, net ( 713 ) ( 9,572 )

Gain on sale of SGK Business ( 57,103 ) —

Loss on other divestitures 2,072 —

Gain on divestitures, net ( 113,209 ) —

Equity and other investment losses (gains) 983 ( 24 )

Changes in working capital items 1,519 ( 39,170 )

2 unchanged sentences

Other operating activities, net 2,329 1,564

Net cash (used in) provided by operating activities ( 33,881 ) 43,336

Net cash used in operating activities ( 51,992 ) ( 25,009 )

Cash flows from investing activities:

2 unchanged sentences

Proceeds from sale of assets 3,476 13,249

Proceeds from sale of SGK Business 228,004 —

Proceeds from other divestitures 2,049 —

Investments and advances ( 7,436 ) ( 825 )

Proceeds from divestitures 240,168 —

Other investing activities, net ( 420 ) ( 63 )

Net cash provided by (used in) investing activities 153,249 ( 38,631 )

Net cash provided by investing activities 237,443 1,436

Cash flows from financing activities:

3 unchanged sentences

Dividends ( 9,474 ) ( 9,237 )

Proceeds from net investment hedges 14,990 17,416

Payments on net investment hedges ( 37,092 ) —

Acquisition holdback and deferred purchase price payments ( 10,184 ) —

Payments of debt issuance costs — ( 4,704 )

Net cash used in financing activities ( 139,440 ) ( 4,096 )

Net cash (used in) provided by financing activities ( 186,637 ) 18,437

Effect of exchange rate changes on cash 110 ( 2,167 )

5 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

June 30, 2025

December 31, 2025

(Dollar amounts in thousands, except per share data)

4 unchanged sentences

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.

Industrial Technologies includes the design, manufacturing, service and sales of high-tech custom energy storage solutions;

product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products;

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

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

Propelis is expected to be a leading global provider of brand solutions.

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

See Notes 6, "Investments" and 15, "Acquisitions and Divestitures" for further information with respect to the Company's sale of its interest in the SGK Business.

As of June 30, 2025, the Company had facilities in North America, Europe, Asia, Australia, and Central America.

Industrial Technologies includes product identification, and the design, manufacturing, service and sales of high-tech custom energy storage solutions.

The segment historically provided warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products, and coating and converting lines for the packaging, pharma, foil, décor and tissue industries.

Brand Solutions historically provided 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.

In December 2025, the Company sold its European roto-gravure packaging and tooling and flexographic print businesses to the local management of those businesses in exchange for cash and other consideration.

On December 31, 2025, the Company sold its warehouse automation business for cash and other consideration.

Following the completion of these transactions, the Company's Industrial Technologies segment consists of product identification, and the design, manufacturing, service and sales of high-tech custom energy storage solutions, and the Company's Brand Solutions segment consists of its 40 % ownership interest in Propelis.

See Notes 7, "Investments" and 16, "Acquisitions and Divestitures" for further information.

As of December 31, 2025, the Company had facilities in North America, Europe, Asia, Australia, and Central America.

Basis of Presentation

3 unchanged sentences

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

Operating results for the three and nine months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2025.

Operating results for the three months ended December 31, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2026.

For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

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 has the ability to exert significant influence, but not control the financial and operating decisions, are accounted for as equity method investments.

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

2 unchanged sentences

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 2026, the Company's portion of earnings for its equity-method investment in Propelis includes the months of July, August and September 2025.

See Note 7, "Investments" for further information with respect to the equity-method investment in Propelis.

The Company applies highly inflationary accounting for subsidiaries when the cumulative inflation rate for a three-year period meets or exceeds 100 percent.

Effective April 1, 2022, the Company has applied highly inflationary accounting to its Turkish subsidiaries.

Under highly inflationary accounting, the financial statements of these subsidiaries are remeasured into the Company's reporting currency (U.S.

dollar) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in current earnings, rather than accumulated other comprehensive loss on the Consolidated Balance Sheets , until such time as the applicable economy is no longer considered highly inflationary.

As of June 30, 2025 and September 30, 2024, the Company had net monetary assets related to its Turkish subsidiaries of $ 7,306 and $ 5,327 , respectively.

Exchange losses related to highly inflationary accounting totaled $ 325 and $ 1,036 for the three and nine months ended June 30, 2025, respectively, and $ 185 and $ 895 for the three and nine months ended and June 30, 2024, respectively.

Such amounts were included in the Consolidated Statements of Income within other income (deductions), net.

The Company applied highly inflationary accounting to its Turkish subsidiaries effective April 1, 2022 and through December 2025, at which time these subsidiaries were divested.

Under highly inflationary accounting, the financial statements of these subsidiaries were remeasured into the Company's reporting currency (U.S.

dollar) and exchange

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

1 unchanged sentence

Basis of Presentation (continued)

gains and losses from the remeasurement of monetary assets and liabilities were reflected in current earnings, rather than accumulated other comprehensive loss on the Consolidated Balance Sheets .

As of September 30, 2025, the Company had net monetary assets related to its Turkish subsidiaries of $ 2,109 .

Exchange losses related to highly inflationary accounting totaled $ 16 and $ 191 for the three months ended December 31, 2025 and December 31, 2024, respectively.

Such amounts were included in the Consolidated Statements of Income within other income (deductions), net.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

1 unchanged sentence

New Accounting Pronouncements:

In November 2024, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No.

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

2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements .

The amendments in this ASU aim to clarify existing requirements, not to change interim disclosure obligations, and introduce a disclosure principle requiring entities to report material events occurring since the end of the last annual reporting period.

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 November 2025, the FASB issued ASU No.

2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements .

Among other provisions, the amendments in this ASU expand the hedged risks permitted to be aggregated in a group of individual forecasted transactions in a cash flow hedge, and eliminate the recognition and presentation mismatch related to a dual hedge strategy.

The ASU is effective for annual and interim periods beginning in fiscal year 2028.

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

In September 2025, the FASB issued 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.

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.

4 unchanged sentences

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 November 2023, 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.

The amendments in this ASU do not affect the recognition, measurement, or financial statement presentation of expenses, but will require increased disclosures in annual and interim financial statements.

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 is not expected to have a material impact on the Company's consolidated financial statements, but will require modified disclosures effective for annual periods beginning in fiscal year 2025.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Basis of Presentation (continued)

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

In November 2023, the FASB issued ASU No.

The ASU was 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 15, "Segment Information."

Revenue Recognition

The Company disaggregates revenue from contracts with customers by geography, as it believes geographic regions best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Disaggregated sales by segment and region for the three and nine months ended June 30, 2025 and 2024 were as follows:

Memorialization Industrial Technologies Brand Solutions Consolidated

Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30,

2025 2024 2025 2024 2025 2024 2025 2024

North America $ 194,959 $ 192,575 $ 32,886 $ 33,526 $ 24,996 $ 62,960 $ 252,841 $ 289,061

Central and South America (1)

— — — — 451 1,641 451 1,641

Europe 5,717 7,496 53,372 56,558 24,303 50,671 83,392 114,725

Australia 3,052 2,593 — — 713 2,235 3,765 4,828

Asia — — 1,643 1,647 7,285 15,931 8,928 17,578

Total Sales $ 203,728 $ 202,664 $ 87,901 $ 91,731 $ 57,748 $ 133,438 $ 349,377 $ 427,833

Disaggregated sales by segment and region for the three months ended December 31, 2025 and 2024 were as follows:

Memorialization Industrial Technologies Brand Solutions Consolidated

Nine Months Ended June 30, Nine Months Ended June 30, Nine Months Ended June 30, Nine Months Ended June 30,

Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31,

2025 2024 2025 2024 2025 2024 2025 2024

7 unchanged sentences

(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.

Revenue recognized using the over time method accounted for approximately 14 % and 13 % of revenue for the three months ended June 30, 2025 and 2024, respectively and 13 % and 17 % of revenue for the nine months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025 and September 30, 2024, the Company had net contract assets for projects recognized using the over time method totaling $ 70,159 and $ 64,246 , respectively, which primarily represent unbilled revenues, net of deferred revenues related to customer deposits and progress billings.

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

Revenue recognized using the over time method accounted for approximately 11 % and 12 % of revenue for the three months ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 and September 30, 2025, the Company had net contract assets for projects recognized using the over time method totaling $ 109,834 and $ 99,700 , respectively, which primarily represent unbilled revenues, net of deferred revenues related to customer deposits and progress billings.

Net contract assets at December 31, 2025 and September 30, 2025 predominantly related to ongoing projects with Tesla, Inc.

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.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

7 unchanged sentences

The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows:

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

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

(2) Derivative amounts at both December 31, 2025 and September 30, 2025 reflect $ 40,186 of partial advance payments received from the counterparties to certain cross-currency swaps.

See Note 9, "Derivatives and Hedging Activities" for further details.

The carrying values for other financial assets and liabilities approximated fair value at June 30, 2025 and September 30, 2024.

The carrying values for other financial assets and liabilities approximated fair value at December 31, 2025 and September 30, 2025.

Allowance for Credit Losses

The following table summarizes the activity for the accounts receivable allowance for credit losses for the three months ended December 31, 2025 and 2024.

Three Months Ended December 31,

Balance at beginning of period $ 13,481 $ 12,055

Charged to expense 859 195

Deductions (1)

( 921 ) ( 1,656 )

Balance at end of period $ 13,419 $ 10,594

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Inventories consisted of the following:

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Raw materials $ 57,305 $ 60,585

3 unchanged sentences

Non-current investments consisted of the following:

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Equity and fixed income mutual funds $ 570 $ 859

4 unchanged sentences

$ 287,118 $ 288,637

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Investments (continued)

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.

2 unchanged sentences

As a result, the Company has not recorded earnings or losses for its investment in Propelis during the quarter ended June 30, 2025.

During the first quarter of fiscal 2025, the Company completed the disposal of its investment in Liquid X Printed Metals Inc.

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

The Company's investment in Liquid X was previously written-down in fiscal 2024, and had a net carrying value of zero at the time of the disposal transaction.

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

Consequently, for the three months ended December 31, 2025, the Company's portion of earnings (losses) for its equity-method investment in Propelis includes the months of July, August and September 2025.

For the three months ended December 31, 2025, the Company recognized $ 2,298 of equity-method losses for its equity-method investment in Propelis, which has been recorded as a component of administrative expense.

Equity-method losses for the three months ended December 31, 2025 included $ 1,106 of losses, representing the Company's portion of the investee's losses, and $ 1,192 of additional 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 $ 1,250 of paid-in-kind interest income for the three months ended December 31, 2025 related to the Company's preferred equity investment in Propelis, which was included as a component of other income (deductions), net.

Debt and Financing Arrangements

Long-term debt at June 30, 2025 and September 30, 2024 consisted of the following:

June 30, 2025 September 30, 2024

Long-term debt at December 31, 2025 and September 30, 2025 consisted of the following:

December 31, 2025 September 30, 2025

Revolving credit facilities $ 214,088 $ 385,007

5 unchanged sentences

Long-term debt $ 529,756 $ 703,602

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Debt and Financing Arrangements (continued)

The Company has a domestic credit facility with a syndicate of financial institutions that was amended and restated in September 2024.

2 unchanged sentences

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

Borrowings under the revolving credit facility bear interest at the Secured Overnight Financing Rate ("SOFR"), plus a 0.10 % per annum rate spread adjustment, plus a factor ranging from 1.00 % to 2.00 % ( 1.50 % at June 30, 2025) based on the Company's leverage ratio.

Borrowings under the revolving credit facility bear interest at the Secured Overnight Financing Rate ("SOFR"), plus a 0.10 % per annum rate spread adjustment, plus a factor ranging from 1.00 % to 2.00 % ( 1.25 % at December 31, 2025) based on the Company's leverage ratio.

The leverage ratio is defined as total indebtedness divided by EBITDA (earnings before interest, income taxes, depreciation and amortization) as defined within the domestic credit facility agreement.

1 unchanged sentence

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

Unamortized costs were $ 4,218 and $ 4,961 at June 30, 2025 and September 30, 2024, respectively.

Unamortized costs were $ 3,618 and $ 3,918 at December 31, 2025 and September 30, 2025, respectively.

The domestic credit facility requires the Company to maintain certain leverage and interest coverage ratios.

1 unchanged sentence

Outstanding U.S.

dollar denominated borrowings on the revolving credit facility at June 30, 2025 and September 30, 2024 were $ 380,420 and $ 410,527 , respectively.

There were no outstanding Euro denominated borrowings on the revolving credit facility at June 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 June 30, 2025 and 2024 was 4.16 % and 4.61 %, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Debt and Financing Arrangements (continued)

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 in connection with the 2027 Senior Secured Notes.

dollar denominated borrowings on the revolving credit facility at December 31, 2025 and September 30, 2025 were $ 213,986 and $ 384,233 , respectively.

The weighted-average interest rate on outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps) at December 31, 2025 and 2024 was 3.68 % and 5.17 %, respectively.

As of December 31, 2025, the Company had $ 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 bore 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 were secured by a second priority lien on substantially all of the assets of the Company and certain of its domestic subsidiaries.

The Company was 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 2027 Senior Secured Notes.

Unamortized costs related to the Company’s notes were $ 4,371 and $ 5,249 at June 30, 2025 and September 30, 2024, respectively.

Unamortized costs related to the Company’s notes were $ 3,404 and $ 3,890 at December 31, 2025 and September 30, 2025, respectively.

On January 22, 2026, subsequent to the date of the balance sheet, the Company redeemed all of the outstanding 2027 Senior Secured Notes for a redemption price of 104.313 % of the outstanding principal amount of the 2027 Senior Secured Notes, plus accrued and unpaid interest on such notes as of the redemption date.

The total amount paid to redeem the 2027 Senior Secured Notes was $ 320,917 , which was primarily funded using proceeds from recent divestitures, and additional borrowings under the Company’s domestic credit facility.

In connection with this redemption, the Company expects to recognize debt extinguishment charges of approximately $ 16,343 during the second quarter of fiscal 2026.

The Company and certain of its domestic subsidiaries sell, on a continuous basis without recourse, their trade receivables to Matthews Receivables Funding Corporation, LLC (“Matthews RFC”), a wholly-owned bankruptcy-remote subsidiary of the Company.

Matthews RFC has a receivables purchase agreement (“RPA”) to sell up to $ 110,000 of receivables as of June 30, 2025 to certain purchasers (the “Purchasers”) on a recurring basis in exchange for cash (referred to as “capital” within the RPA) equal to the gross receivables transferred.

Matthews RFC has a receivables purchase agreement (“RPA”) to sell up to $ 75,000 of receivables to certain purchasers (the “Purchasers”) on a recurring basis in exchange for cash (referred to as “capital” within the RPA) equal to the gross receivables transferred.

The parties intend that the transfers of receivables to the Purchasers constitute purchases and sales of receivables.

2 unchanged sentences

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

The RPA will reduce to $ 75,000 as of August 1, 2025, and matures in April 2027.

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.

1 unchanged sentence

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 June 30, 2025 and September 30, 2024, the amount sold to the Purchasers was $ 85,600 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 $ 79,495 and $ 58,183 as of June 30, 2025 and September 30, 2024, respectively.

As of December 31, 2025 and September 30, 2025, the amount sold to the Purchasers was $ 51,000 and $ 65,600 , 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 $ 73,011 and $ 63,720 as of December 31, 2025 and September 30, 2025, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Debt and Financing Arrangements (continued)

The following table sets forth a summary of receivables sold as part of the RPA:

Nine Months Ended

June 30, 2025 Nine Months Ended

June 30, 2024

Three Months Ended

December 31, 2025 Three Months Ended

December 31, 2024

Gross receivables sold

3 unchanged sentences

Net cash (reinvested) received $ ( 14,600 ) $ 4,400

The Company, through its U.K.

The Company, through a former U.K.

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

2 unchanged sentences

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 June 30, 2025.

The principal amount of receivables sold under this arrangement was $ 45,813 and $ 53,087 during the nine months ended June 30, 2025 and 2024, respectively.

As a result of the sale of the Company's interest in the SGK Business, this arrangement no longer exists for the Company at December 31, 2025.

The principal amount of receivables sold under this arrangement was $ 21,449 during the three months ended December 31, 2024.

The discounts on the trade receivables sold are included within administrative expense in the Consolidated Statements of Income.

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, the amount of factored receivables that remained outstanding were $ 15,665 .

See Note 16, "Acquisitions and Divestitures" for further information with respect to the sale of the Company's interest in the SGK Business.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Debt and Financing Arrangements (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 $ 4,398 and $ 3,014 at June 30, 2025 and September 30, 2024, respectively.

The amounts owed to a participating financial institution under the Program and included in trade accounts payable were $ 5,792 and $ 6,136 at December 31, 2025 and September 30, 2025, respectively.

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.

Outstanding borrowings under the credit facility totaled € 311,000 ($ 366 ) at June 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 % and 5.88 % at June 30, 2025 and 2024, respectively.

Other borrowings totaled $ 5,836 and $ 15,602 at June 30, 2025 and September 30, 2024, respectively.

The weighted-average interest rate on all other borrowings was 3.42 % and 2.61 % at June 30, 2025 and 2024, respectively.

As of June 30, 2025 and September 30, 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 June 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.

For the three months ended June 30, 2025, the Company did not sell any shares of its Class A Common Stock under its ATM Program.

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

Outstanding borrowings under the credit facility totaled € 86,000 ($ 101 ) and € 659,000 ($ 774 ) at December 31, 2025 and September 30, 2025, respectively.

The weighted-average interest rate on outstanding borrowings under this facility was 4.93 % and 5.10 % at December 31, 2025 and 2024, respectively.

Other borrowings totaled $ 5,385 and $ 7,151 at December 31, 2025 and September 30, 2025, respectively.

The weighted-average interest rate on all other borrowings was 1.33 % and 2.33 % at December 31, 2025 and 2024, respectively.

As of December 31, 2025 and September 30, 2025, 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 December 31, 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") pursuant to which 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.

For the three months ended December 31, 2025, the Company did not sell any shares of its Class A Common Stock under its ATM Program.

As of December 31, 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Derivatives and Hedging Activities

The Company operates internationally and utilizes certain derivative financial instruments to manage its foreign currency, debt and interest rate exposures.

At June 30, 2025 and September 30, 2024, derivative instruments were reflected on a gross-basis in the Consolidated Balance Sheets as follows:

June 30, 2025 September 30, 2024

At December 31, 2025 and September 30, 2025, derivative instruments were reflected on a gross-basis in the Consolidated Balance Sheets as follows:

December 31, 2025 September 30, 2025

Interest Rate Swaps Cross-Currency Swaps Interest Rate Swaps Cross-Currency Swaps

9 unchanged sentences

$ ( 2,291 ) $ ( 57,435 ) $ ( 2,338 ) $ ( 58,541 )

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Derivatives and Hedging Activities (continued)

(1) Cross-currency swap amounts at both December 31, 2025 and September 30, 2025 reflect $ 40,186 of partial advanced payments received from the counterparties to certain swap contracts (see below).

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

June 30, 2025 September 30, 2024

December 31, 2025 September 30, 2025

Notional amount $ 225,000 $ 225,000

5 unchanged sentences

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 $ 2,209 ($ 1,655 after tax) and $ 2,606 ($ 1,948 after tax) at June 30, 2025 and September 30, 2024, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI").

Unrecognized gains of $ 1,914 ($ 1,431 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 June 30, 2025 and September 30, 2024, respectively.

Assuming market rates remain constant with the rates at June 30, 2025, a gain (net of tax) of approximately $ 252 included in AOCI is expected to be recognized in earnings over the next twelve months.

The fair value of the interest rate swaps reflected a net unrealized loss of $ 2,291 ($ 1,721 after tax) and $ 2,338 ($ 1,752 after tax) at December 31, 2025 and September 30, 2025, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI").

Unrecognized gains of $ 1,301 ($ 972 after tax) and $ 1,605 ($ 1,199 after tax) related to previously terminated London Interbank Offered Rate ("LIBOR") based swaps were also included in AOCI as of December 31, 2025 and September 30, 2025, respectively.

Assuming market rates remain constant with the rates at December 31, 2025, a loss (net of tax) of approximately $ 18 included in AOCI is expected to be recognized in earnings over the next twelve months.

The Company utilizes certain cross currency swaps as net investment hedges of foreign operations and assesses effectiveness for these contracts based on changes in fair value attributable to changes in spot prices.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Derivatives and Hedging Activities (continued)

Notional Amount Unrealized Gains (Losses)

Recognized in AOCI

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

Swap Currencies Maturity Date December 31, 2025 September 30, 2025 December 31, 2025 September 30, 2025

USD/EUR September 2027 $ 81,392 $ 81,392 $ ( 9,045 ) $ ( 9,443 )

USD/SEK June 2026 20,000 20,000 ( 2,621 ) ( 2,571 )

USD/SGD August 2026 — 20,000 — ( 441 )

USD/EUR August 2026 25,000 25,000 ( 1,246 ) ( 1,689 )

USD/CAD May 2025 — — — —

$ 126,392 $ 126,392 $ ( 12,912 ) (1)

$ ( 13,703 ) (1)

(1) Total unrealized gains (losses) are presented net of tax of $ 4,506 and $ 2,156 as of June 30, 2025 and September 30, 2024, respectively.

(1) Total unrealized gains (losses) are presented net of tax of $ 4,337 and $ 4,652 as of December 31, 2025 and September 30, 2025, respectively.

In connection with certain of these cross currency swaps, the Company received cash from the counterparties, representing partial advance payments of amounts due under the U.S.

dollar leg of the swaps.

Outstanding advance payment amounts totaled $ 40,186 at June 30, 2025, of which $ 17,416 and $ 22,770 were included in other current liabilities and other non-current liabilities on the Consolidated Balance Sheet, respectively.

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 the third quarter of 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Derivatives and Hedging Activities (continued)

Outstanding advance payment amounts totaled $ 40,186 at both December 31, 2025 and September 30, 2025, all of which were included in other current liabilities on the Consolidated Balance Sheet.

Refer to Note 13, "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.

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

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

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

2 unchanged sentences

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Cost of sales $ ( 1,519 ) $ ( 601 )

Selling expense ( 4 ) ( 112 ) ( 57 ) 113

Administrative expense ( 4 ) 288

2 unchanged sentences

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 nine-month period ended June 30, 2025.

The following table provides a summary of the severance and employee termination restructuring activities for the three-month period ended December 31, 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Restructuring (continued)

Severance and Employee Termination Restructuring Activities

5 unchanged sentences

( 2 ) — — ( 83 ) ( 85 )

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

Liability at June 30, 2025 $ 15 $ 4,005 $ — $ 452 $ 4,472

December 31, 2025 $ — $ 775 $ — $ — $ 775

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

1 unchanged sentence

(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 June 30, 2025.

(2) Substantially all estimated severance and employee termination costs related to the restructuring programs have been recognized as of December 31, 2025.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

The restructuring programs initiated in fiscal 2024 that were focused primarily on the Company's engineering and tooling operations in Europe, and certain of the Company's general and administrative functions have been substantially completed as of December 31, 2025.

Share-Based Payments

1 unchanged sentence

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 June 30, 2025, 1,886,557 shares have been issued under the 2017 Equity Incentive Plan.

At December 31, 2025, 2,428,387 shares have been issued under the 2017 Equity Incentive Plan.

1,758,505 time-based RSUs, 2,241,872 performance-based RSUs, and 75,000 stock options have been granted under the 2017 Equity Incentive Plan.

1,655,845 of these share-based awards are outstanding as of June 30, 2025.

1,657,675 of these share-based awards are outstanding as of December 31, 2025.

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

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 three-month periods ended June 30, 2025 and 2024, stock-based compensation cost totaled $ 8,841 and $ 5,331 , respectively.

For the nine-month periods ended June 30, 2025 and 2024, stock-based compensation cost totaled $ 19,838 and $ 14,309 , respectively.

The associated future income tax benefit recognized for stock-based compensation was $ 2,233 and $ 1,351 for the three-month periods ended June 30, 2025 and 2024, respectively, and $ 4,572 and $ 3,128 for the nine-month periods ended June 30, 2025 and 2024, respectively.

For the three-month periods ended December 31, 2025 and 2024, stock-based compensation cost totaled $ 4,407 and $ 4,979 , respectively.

The associated future income tax benefit recognized for stock-based compensation was $ 645 and $ 818 for the three-month periods ended December 31, 2025 and 2024, respectively.

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

1 unchanged sentence

Such performance thresholds include adjusted earnings per share, return on invested capital, appreciation in the market value of the Company's Class A Common Stock, or other targets established by the Compensation Committee of the Board of Directors.

Approximately 40 % of the outstanding share units vest

based on time, while the remaining vest based on pre-defined performance thresholds.

Approximately 40 % of the outstanding share units vest based on time, while the remaining vest based on pre-defined performance thresholds.

The Company issues common stock from treasury shares once the units become 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 Accounting Standards Codification ("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 nine months ended June 30, 2025 were as follows:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Share-Based Payments (continued)

The transactions for RSUs for the three months ended December 31, 2025 were as follows:

RSUs Weighted-

3 unchanged sentences

Expired or forfeited ( 12,990 ) 32.94

Non-vested at June 30, 2025 1,655,845 $ 30.24

As of June 30, 2025, the total unrecognized compensation cost related to all unvested stock-based awards was $ 16,771 and is expected to be recognized over a weighted average period of 1.9 years.

The fair value of certain stock-based awards 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 or modified during the nine-month period ended June 30, 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Share-Based Payments (continued)

Nine Months Ended June 30, 2025

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

Non-vested at December 31, 2025 1,657,675 $ 30.17

As of December 31, 2025, the total unrecognized compensation cost related to all unvested stock-based awards was $ 23,485 and is expected to be recognized over a weighted average period of 2.3 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 or modified during the three-month period ended December 31, 2025.

Three Months Ended

December 31, 2025

Expected volatility 36.7 %

5 unchanged sentences

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

The expected term for grants in the nine months ended June 30, 2025 represents an estimate of the average period of time for RSUs to vest.

The expected term for grants in the three months ended December 31, 2025 represents an estimate of the average period of time for RSUs to vest.

The Company maintains the Amended and Restated 2019 Director Fee Plan, the Amended and Restated 2014 Director Fee Plan and the 1994 Director Fee Plan (collectively, the "Director Fee Plans").

4 unchanged sentences

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.

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 56,663 shares and share units had been deferred under the Director Fee Plans as of June 30, 2025.

A total of 57,668 shares and share units had been deferred under the Director Fee Plans as of December 31, 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 2026.

As of June 30, 2025, 439,740 restricted shares and RSUs have been granted under the Director Fee Plans, 266,511 of which were issued under the 2019 Director Fee Plan.

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

Earnings Per Share Attributable to Matthews' Shareholders

The information used to compute earnings per share attributable to Matthews' common shareholders was as follows:

As of December 31, 2025, 439,740 restricted shares and RSUs have been granted under the Director Fee Plans, 266,511 of which were issued under the 2019 Director Fee Plan.

98,945 RSUs are unvested at December 31, 2025 under the Director Fee Plans.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Earnings Per Share

The information used to compute earnings (loss) per share attributable to Matthews' common shareholders was as follows:

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Net income attributable to Matthews shareholders $ 15,387 $ 1,777 $ 2,999 $ 8,501

Net income (loss) $ 43,629 $ ( 3,472 )

Weighted-average shares outstanding (in thousands):

4 unchanged sentences

Anti-dilutive securities excluded from the dilutive calculation were insignificant for applicable periods.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

During periods in which the Company incurs a net loss, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding because the effect of all equity awards is anti-dilutive.

Accumulated Other Comprehensive Income

The changes in AOCI by component, net of tax, for the three-month periods ended June 30, 2025 and 2024 were as follows:

Post-retirement benefit plans Currency translation adjustment Cash Flow Hedges Total

Attributable to Matthews:

Balance, March 31, 2025 $ 4,533 $ ( 180,882 ) $ 1,175 $ ( 175,174 )

OCI before reclassification 208 6,264 ( 1,195 ) 5,277

Amounts reclassified from AOCI ( 164 ) (a)

92,537 ( 204 ) (b)

Net current-period OCI 44

( 1,399 ) 97,446

Balance, June 30, 2025 $ 4,577 $ ( 82,081 ) $ ( 224 ) $ ( 77,728 )

Attributable to noncontrolling interest:

Balance, March 31, 2025 $ — $ 289 $ — $ 289

OCI before reclassification — — — —

Net current-period OCI — — — —

Balance, June 30, 2025 $ — $ 289 $ — $ 289

Post-retirement benefit plans Currency translation adjustment Cash Flow Hedges Total

Attributable to Matthews:

Balance, March 31, 2024 $ 6,398 $ ( 184,537 ) $ 5,635 $ ( 172,504 )

OCI before reclassification ( 22 ) ( 738 ) 105 ( 655 )

Amounts reclassified from AOCI ( 212 ) (a)

( 232 ) ( 506 ) (b)

Net current-period OCI ( 234 ) ( 970 ) ( 401 ) ( 1,605 )

Balance, June 30, 2024 $ 6,164 $ ( 185,507 ) $ 5,234 $ ( 174,109 )

Attributable to noncontrolling interest:

Balance, June 30, 2024 $ — $ 288 $ — $ 288

OCI before reclassification — —

Net current-period OCI — — — —

Balance, June 30, 2024 $ — $ 288

(a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans.

(b) Amounts were included in interest expense in the periods in which the hedged item affected earnings (see Note 8).

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Accumulated Other Comprehensive Income (continued)

The changes in AOCI by component, net of tax, for the nine-month periods ended June 30, 2025 and 2024 were as follows:

The changes in AOCI by component, net of tax, for the three-month periods ended December 31, 2025 and 2024 were as follows:

Post-retirement benefit plans Currency translation adjustment Cash Flow Hedges Total

6 unchanged sentences

( 196 ) 27,806

Balance, June 30, 2025 $ 4,577 $ ( 82,081 ) $ ( 224 ) $ ( 77,728 )

Attributable to noncontrolling interest:

Balance, September 30, 2024 $ — $ 289 $ — $ 289

OCI before reclassification — — — —

Net current-period OCI — — — —

Balance, June 30, 2025 $ — $ 289 $ — $ 289

Balance, December 31, 2025 $ 6,203 $ ( 55,658 ) $ ( 749 ) $ ( 50,204 )

Post-retirement benefit plans Currency translation adjustment Cash Flow Hedges Total

5 unchanged sentences

Net current-period OCI ( 353 ) ( 14,611 ) 2,215 ( 12,749 )

Balance, June 30, 2024 $ 6,164 $ ( 185,507 ) $ 5,234 $ ( 174,109 )

Balance, December 31, 2024 $ 4,602 $ ( 189,234 ) $ 3,141 $ ( 181,491 )

Attributable to noncontrolling interest:

2 unchanged sentences

Net current-period OCI — — — —

Balance, June 30, 2024 $ — $ 288

Balance, December 31, 2024 $ — $ 289

(a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans.

3 unchanged sentences

Accumulated Other Comprehensive Income (continued)

Reclassifications out of AOCI for the three and nine-month periods ended June 30, 2025 and 2024 were as follows:

Reclassifications out of AOCI for the three-month periods ended December 31, 2025 and 2024 were as follows:

Amount reclassified from AOCI

Details about AOCI Components Three Months Ended June 30, 2025 Nine Months Ended June 30, 2025 Affected line item in the

Details about AOCI Components Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 Affected line item in the

Financial Statements

11 unchanged sentences

$ 240 $ 618 Net income

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

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

Details about AOCI Components Three Months Ended

June 30, 2024 Nine Months Ended

June 30, 2024 Affected line item in the Statement of income

Postretirement benefit plans

Prior service credit (a)

Actuarial losses 193 574 Other income (deductions), net

284 847 Income before income tax (b)

( 214 ) Income taxes

$ 633 Net income

Cash flow hedges $ 678

$ 2,005 Interest expense

Net investment hedges 306 891 Interest expense

984 2,896 Income before income tax (b)

( 724 ) Income taxes

$ 738 $ 2,172 Net income

Divestitures $ ( 18,810 ) $ — Gain on divestitures, net

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 cost of goods sold and selling and administrative expenses.

2 unchanged sentences

See Note 16, "Acquisitions and Divestitures".

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Income tax provisions for the Company's interim periods are based on the effective income tax rate expected to be applicable for the full year.

The Company's consolidated income taxes for the first nine months of fiscal 2025 represented an expense of $ 38,391 , compared to a benefit of $ 10,677 for the first nine months of fiscal 2024.

The difference between the Company’s consolidated income taxes for the first nine months of fiscal 2025 compared to the same period for fiscal 2024 resulted from consolidated pre-tax income in fiscal 2025 compared to a consolidated pre-tax loss in fiscal 2024, net discrete tax expense related to the divestiture of the Company's interest in the SGK Business, net discrete tax benefits related to adjustments in tax reserves resulting from the progression of tax audits, and recognition of certain previously unrecognized deferred tax assets.

The Company’s fiscal 2025 nine month effective tax rate varied from the U.S.

statutory tax rate of 21.0% primarily due to state taxes, tax credits, non-tax benefited foreign losses, discrete tax related to the sale of the Company's interest in the SGK Business, and other net discrete tax benefits.

The Company’s fiscal 2024 nine month effective tax rate varied from the U.S.

statutory tax rate of 21.0% primarily due to tax credits, jurisdictional tax rate netting, recognition of certain previously unrecognized deferred tax assets and other net discrete tax benefits.

The Company had unrecognized tax benefits (excluding penalties and interest) of $ 2,051 and $ 4,506 on June 30, 2025 and September 30, 2024, respectively, which would impact the annual effective rate at June 30, 2025 and September 30, 2024, respectively.

The Company's consolidated income taxes for the first three months of fiscal 2026 represented an expense of $ 40,789 , compared to a benefit of $ 2,358 for the first three months of fiscal 2025.

The difference between the Company’s consolidated income taxes for the first three months of fiscal 2026 compared to the same period for fiscal 2025 resulted from consolidated pre-tax income in fiscal 2026 compared to a consolidated pre-tax loss in fiscal 2025, and net discrete tax expense related to the divestiture of the Company's warehouse automation and European roto-gravure packaging and tooling and flexographic print businesses.

The Company’s fiscal 2026 three month effective tax rate varied from the U.S.

statutory tax rate of 21.0% primarily due to state taxes, tax credits, non-tax benefited foreign losses and discrete tax expense related to the divestiture of the Company's warehouse automation and European roto-gravure packaging and tooling and flexographic print businesses.

The Company’s fiscal 2025 three month effective tax rate varied from the U.S.

statutory tax rate of 21.0% primarily due to state taxes, tax credits, non-tax benefited foreign losses, and other net discrete tax benefits.

The Company had unrecognized tax benefits (excluding penalties and interest) of $ 2,860 and $ 2,972 on December 31, 2025 and September 30, 2025, respectively, which would impact the annual effective rate at December 31, 2025 and September 30, 2025, respectively.

It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $ 366 in the next 12 months primarily due to the completion of audits and the expiration of the statute of limitations.

The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes.

Total penalties and interest accrued were $ 248 and $ 588 at June 30, 2025 and September 30, 2024, respectively.

Total penalties and interest accrued were $ 204 and $ 241 at December 31, 2025 and September 30, 2025, respectively.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Income Taxes (continued)

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

1 unchanged sentence

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

The Company is currently assessing the impact on its consolidated financial statements.

The Company continues to evaluate the impact of the OBBBA, and at this time does not expect the provisions of the new legislation to have a material impact on the Company's consolidated financial statements.

The Company expects the provisions of the legislation will have a favorable impact on fiscal 2026 cash tax payments.

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

As of June 30, 2025, the tax years that remain subject to examination by major jurisdictions generally are:

As of December 31, 2025, the tax years that remain subject to examination by major jurisdictions generally are:

United States – Federal 2019, 2020, 2022 and forward

5 unchanged sentences

Australia 2021 and forward

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Segment Information

The Company manages its businesses under three segments:

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.

The Industrial Technologies segment includes the design, manufacturing, service and sales of high-tech custom energy storage solutions;

product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products;

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

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.

The Industrial Technologies segment includes product identification, and the design, manufacturing, service and sales of high-tech custom energy storage solutions.

The Brand Solutions segment historically provided 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 its SGK Business to a newly-formed entity, Propelis, in exchange for a 40 % ownership interest in Propelis and other consideration.

Propelis is expected to be a leading global provider of brand solutions.

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

Propelis is a leading global provider of brand solutions.

On December 31, 2025, the Company sold its warehouse automation business for cash and other consideration.

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 6, "Investments" and 15, "Acquisitions and Divestitures" for further information with respect to the Company's sale of its interest in the SGK Business.

See Notes 7, "Investments" and 16, "Acquisitions and Divestitures" for further information.

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

1 unchanged sentence

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") system 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.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Segment Information (continued)

the results of operations versus budgets, forecasts, and historical performance, 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.

2 unchanged sentences

Corporate costs include management and administrative support to the Company, which consists of certain aspects of the Company’s executive management, legal, compliance, human resources, information technology (including operational support) and finance departments.

These costs are included within "Corporate and Non-Operating" in the following table to reconcile to consolidated adjusted EBITDA and are not considered a separate reportable segment.

These costs are included within "Corporate and Non-Operating" in the table below which reconciles adjusted EBITDA to income (loss) before income taxes and net income (loss).

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

Intersegment sales are accounted for at negotiated prices.

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

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:

Three Months Ended December 31, 2025

Memorialization Industrial Technologies Brand Solutions (1)

Reportable Segments Total

Sales $ 204,175 $ 69,015 $ 11,573 $ 284,763

Cost of sales (2)

( 114,026 ) ( 54,057 ) ( 9,468 ) ( 177,551 )

Gross profit (2)

90,149 14,958 2,105 107,212

Selling expense (2)

( 23,309 ) ( 7,433 ) ( 141 ) ( 30,883 )

Administrative expense (2)

( 27,891 ) ( 11,983 ) ( 4,473 ) ( 44,347 )

Other segment items (3)

— — 15,203 15,203

Adjusted EBITDA $ 38,949 $ ( 4,458 ) $ 12,694 $ 47,185

Intersegment sales $ — $ 974 $ 3 $ 977

Depreciation and amortization 8,147 3,478 609 12,234

Total assets 902,399 323,013 304,459 1,529,871

Capital expenditures 4,530 295 187 5,012

Three Months Ended December 31, 2024

Memorialization Industrial Technologies Brand Solutions (1)

Reportable Segments Total

Sales $ 190,486 $ 80,533 $ 130,823 $ 401,842

Cost of sales (2)

( 108,893 ) ( 57,851 ) ( 97,892 ) ( 264,636 )

Gross profit (2)

81,593 22,682 32,931 137,206

Selling expense (2)

( 18,967 ) ( 7,480 ) ( 7,837 ) ( 34,284 )

Administrative expense (2)

( 26,014 ) ( 13,370 ) ( 12,802 ) ( 52,186 )

Adjusted EBITDA $ 36,612 $ 1,832 $ 12,292 $ 50,736

Intersegment sales $ — $ 310 $ 283 $ 593

Depreciation and amortization 7,202 5,674 8,860 21,736

Total assets 810,454 453,697 493,214 1,757,365

Capital expenditures 4,490 1,382 3,644 9,516

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

1 unchanged sentence

Segment Information (continued)

The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income.

(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 7, "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) The three-months ended December 31, 2025 includes the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis (see Note 7, "Investments" for further information with respect to the equity-method investment in Propelis).

A reconciliation of adjusted EBITDA to income (loss) before income taxes and net income (loss) follows:

Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

Memorialization $ 203,728 $ 202,664 $ 599,834 $ 632,891

Industrial Technologies 87,901 91,731 249,269 319,241

Brand Solutions 57,748 133,438 329,745 396,910

Consolidated Sales $ 349,377 $ 427,833 $ 1,178,848 $ 1,349,042

Adjusted EBITDA:

Memorialization $ 42,801 $ 38,737 $ 124,451 $ 122,051

Industrial Technologies 9,047 4,196 16,921 23,846

Brand Solutions 5,004 16,054 32,892 44,317

Reportable Segments Adjusted EBITDA $ 47,185 $ 50,736

Corporate and Non-Operating ( 11,947 ) ( 10,713 )

Total Adjusted EBITDA $ 44,550 $ 44,746 $ 135,987 $ 147,028

Acquisition and divestiture related items (1)**

2 unchanged sentences

( 15,250 ) ( 615 )

Gain on sale of SGK Business 57,103 — 57,103 —

Gain on divestitures, net 113,209 —

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

7 unchanged sentences

( 15,301 ) ( 16,854 )

Propelis depreciation, amortization, interest and other items (6)

Income (loss) before income taxes 84,418 ( 5,830 )

Income tax (provision) benefit ( 40,789 ) 2,358

Net income $ 15,387 $ 1,777 $ 2,999 $ 8,501

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Segment Information (continued)

(1) Includes certain non-recurring items associated with recent acquisition and divestiture activities and also includes a loss of $ 2,072 for the nine months ended June 30, 2025 related to the divestiture of a business in the Industrial Technologies segment (See Note 15, "Acquisitions and Divestitures").

The fiscal 2025 third quarter amount reflects a reclassification of transaction costs totaling $ 9,738 , which have been presented as a component of gain on sale of SGK Business.

Net income (loss) $ 43,629 $ ( 3,472 )

(1) Includes certain non-recurring items associated with recent acquisition and divestiture activities.

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

Also includes legal costs related to an ongoing dispute with Tesla, Inc.

("Tesla"), which totaled $ 5,795 and $ 3,166 for the three months ended June 30, 2025 and 2024, respectively, and $ 14,419 and $ 8,138 for the nine months ended June 30, 2025 and 2024, respectively (see Note 17, "Legal Matter").

Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled $ 207 for the three months ended June 30, 2025 and $ 5,109 for the nine months ended June 30, 2025.

Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $ 8,655 for the nine months ended June 30, 2025.

Fiscal 2025 also includes loss recoveries totaling $ 538 for the three months ended June 30, 2025 and $ 1,708 for the nine months ended June 30, 2025 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 (see Note 2, "Basis of Presentation").

Also includes legal costs related to an ongoing dispute with Tesla, which totaled $ 8,997 and $ 6,867 for the three months ended December 31, 2025 and 2024, respectively (see Note 18, "Legal Matters").

Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $ 8,702 for the three months ended December 31, 2024.

Fiscal 2025 also includes loss recoveries totaling $ 1,170 for the three months ended December 31, 2024 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 certain Turkish subsidiaries which were recently divested (see Note 2, "Basis of Presentation").

(4) 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.

3 unchanged sentences

Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.

(5) Includes fees for receivables sold under the RPA and factoring arrangements totaling $ 974 and $ 1,225 for the three months ended June 30, 2025 and 2024, respectively, and $ 3,291 and $ 3,638 for the nine months ended June 30, 2025 and 2024, respectively.

* Depreciation and amortization was $ 7,394 and $ 7,073 for the Memorialization segment, $ 5,489 and $ 5,796 for the Industrial Technologies segment, $ 2,357 and $ 9,702 for the Brand Solutions segment, and $ 596 and $ 1,086 for Corporate and Non-Operating, for the three months ended June 30, 2025 and 2024, respectively.

Depreciation and amortization was $ 21,766 and $ 20,400 for the Memorialization segment, $ 16,807 and $ 17,744 for the Industrial Technologies segment, $ 15,935 and $ 28,943 for the Brand Solutions segment, and $ 2,063 and $ 3,354 for Corporate and Non-Operating, for the nine months ended June 30, 2025 and 2024, respectively.

** Acquisition and divestiture costs, ERP system integration costs, and strategic initiatives and other charges were $ 552 and $ 1,108 for the Memorialization segment, $ 9,079 and $ 4,490 for the Industrial Technologies segment, $ 1,692 and $ 1,473 for the Brand Solutions segment, and income of $ 10,481 and costs of $ 1,441 for Corporate and Non-Operating, for the three months ended June 30, 2025 and 2024, respectively.

Acquisition costs, ERP system integration costs, and strategic initiatives and other charges were $ 4,265 and $ 2,204 for the Memorialization segment, $ 15,462 and $ 14,288 for the Industrial Technologies segment, $ 2,822 and $ 2,694 for the Brand Solutions segment, and $ 631 and $ 3,507 for Corporate and Non-Operating, for the nine months ended June 30, 2025 and 2024, respectively.

† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of $ 2,438 and $ 1,079 for the three months ended June 30, 2025 and 2024, respectively, and expenses of $ 1,133 and $ 3,862 for the nine months ended June 30, 2025 and 2024, respectively.

Refer to Note 9, "Restructuring" for further details.

(5) Includes fees for receivables sold under the RPA and factoring arrangements totaling $ 668 and $ 1,172 for the three months ended December 31, 2025 and 2024, respectively.

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

* Depreciation and amortization was $ 8,147 and $ 7,202 for the Memorialization segment, $ 3,478 and $ 5,674 for the Industrial Technologies segment, $ 609 and $ 8,860 for the Brand Solutions segment, and $ 462 and $ 768 for Corporate and Non-Operating, for the three months ended December 31, 2025 and 2024, respectively.

** Acquisition and divestiture costs, ERP system integration costs, and strategic initiatives and other charges were $ 69 and $ 1,303 for the Memorialization segment, $ 10,353 and $ 4,119 for the Industrial Technologies segment, $ 3,493 and $ 714 for the Brand Solutions segment, and charges of $ 2,453 and income of $ 4,944 for Corporate and Non-Operating, for the three months ended December 31, 2025 and 2024, respectively.

† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of $ 1,523 and $ 313 for the three months ended December 31, 2025 and 2024, respectively, Refer to Note 10, "Restructuring" for further details.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

(Dollar amounts in thousands, except per share data)

Acquisitions and Divestitures

In December 2025, the Company completed the sale of its interests in Matthews Automation Solutions, LLC, a Delaware limited liability company and wholly-owned subsidiary of Matthews, and certain related assets to Duravant LLC.

The total consideration was approximately $ 232,000 , representing cash consideration of $ 225,400 plus the assumption of certain liabilities related to the business, subject to adjustment based on a number of factors, including, but not limited to, indemnification obligations and the final determinations of the total adjusted consideration (based on an agreed enterprise value of $ 230 million, plus cash, less debt and transaction expenses and subject to a customary net working capital adjustment measured against a target amount).

The transaction resulted in a pre-tax gain of $ 148,304 ($ 108,276 after-tax).

As of the date of the disposal transaction, the divested business had current assets and non-current assets of $ 21,381 and $ 62,174 , respectively, and current liabilities and non-current liabilities of $ 19,612 and $ 3,067 , respectively.

Income (loss) before income taxes for the divested business was a loss of $ 926 and income of $ 200 for the three-month periods ended December 31, 2025 and 2024, respectively.

In December 2025, the Company completed the sale of its European roto-gravure packaging and tooling and flexographic print businesses to the local management of those businesses.

Total consideration from these divestitures is $ 41,009 , consisting of $ 13,658 of cash, $ 7,753 of deferred purchase price, principally due within 180 days of closing, seller financing of $ 7,660 , and liabilities assumed by the buyers (principally assumed debt and pension obligations) of $ 11,938 , and the transactions resulted in a pre-tax loss of $ 35,095 ($ 35,981 after-tax).

In connection with the sale of the European roto-gravure packaging and tooling and flexographic print businesses, the Company has agreed to provide certain limited administrative services for the respective buyers under short-term transitional services agreements.

In October 2025, the Company completed a small acquisition within the Industrial Technologies segment for a purchase price of $ 524 .

The preliminary purchase price allocation was not finalized as of December 31, 2025 and remains subject to change as the Company obtains additional information related to working capital and other intangibles assets.

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).

1 unchanged sentence

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

The preliminary purchase price allocation was not finalized as of June 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 $ 57,103 ($ 14,155 after-tax) during the third quarter of fiscal 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), 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 17,159

Total assets 449,687

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 27,731

Total liabilities 96,545

Net assets $ 353,142

Income before income taxes for the divested SGK Business totaled $ 4,477 and $ 12,647 for the three and nine months ended June 30, 2025, respectively, and $ 5,435 and $ 14,226 for the three and nine months ended June 30, 2024, 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 period ended June 30, 2025.

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

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

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

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 (Unaudited), Continued

6 unchanged sentences

$ 387,537 $ 100,024 $ — $ 487,561

Additions during period 42,822 — — 42,822

Additions — 1,331 — 1,331

Divestitures — ( 57,471 ) — ( 57,471 )

Translation and other adjustments 63 310 — 373

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

Net goodwill at June 30, 2025

Net goodwill at December 31, 2025

$ 387,600 $ 44,194 $ — $ 431,794

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

Accumulated impairment losses at June 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.

The net goodwill balances at December 31, 2025 and September 30, 2025 included $ 45,673 of accumulated impairment losses.

Accumulated impairment losses at December 31, 2025 and September 30, 2025 were $ 5,000 and $ 39,867 for the Memorialization and Industrial Technologies segments, respectively.

In fiscal 2026, additions reflect a small acquisition in the Industrial Technologies segment, and divestitures reflect the sale of the warehouse automation business.

The Company performed its annual 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 exceeded their carrying values, and, therefore, no impairment charges were necessary at such time.

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

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2025 and September 30, 2025, respectively.

Amount Accumulated

Amortization Net

June 30, 2025

December 31, 2025

Indefinite-lived trade names $ 30,540 $ — $ 30,540

9 unchanged sentences

$ 248,466 $ ( 142,508 ) $ 105,958

The net change in intangible assets during the nine months ended June 30, 2025 primarily reflected the sale of the Company's interest in the SGK Business, the impact of foreign currency fluctuations during the period and additional amortization.

Amortization expense on intangible assets was $ 3,474 and $ 9,037 for the three-month periods ended June 30, 2025 and 2024, respectively.

Amortization expense on intangible assets was $ 16,362 and $ 27,791 for the nine-month periods ended June 30, 2025 and 2024, 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.

The net change in intangible assets during the three months ended December 31, 2025 primarily reflected the divestitures of the warehouse automation and European roto-gravure packaging and tooling and flexographic print businesses, the impact of foreign currency fluctuations during the period and additional amortization.

Amortization expense on intangible assets was $ 2,966 and $ 8,608 for the three-month periods ended December 31, 2025 and 2024, respectively.

The fiscal 2026 decrease in intangible amortization reflected lower amortization following the Company's fiscal 2025 divestiture of its interest in the SGK Business.

Amortization expense is estimated to be $ 7,639 for the remainder of fiscal 2026, $ 6,710 in 2027, $ 5,222 in 2028, $ 4,543 in 2029 and $ 4,159 in 2030.

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(Dollar amounts in thousands, except per share data)

Legal Matters

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.

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 the arbitration.

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

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, the Company has already filed a motion to compel arbitration and maintains the claims vaguely stated in the complaint filed on February 13, 2025 are also without merit.

The Company intends to vigorously defend itself against the allegations.

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

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 if the matter is reinitiated by Tesla in 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.

On October 1, 2025, Judge Edward Davila, a federal court judge from the United States District Court for the Northern District of California, issued an opinion and order granting Matthews’ petition to confirm a prior confidential arbitration award, and rejected Tesla’s motion to vacate that same arbitration award.

Tesla has appealed Judge Davila’s ruling to the United States Court of Appeals for the Ninth Circuit.

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 , which was accrued and recognized as a component of administrative expense for the period ended September 30, 2025, and was paid during the first quarter of fiscal 2026.

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

Related Party Transactions

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

During the third quarter of fiscal 2025, the Company recognized $ 1,612 of administrative support fees under the TSA, which were included as a component of administrative expense.

Sales to and purchase from Propelis were immaterial for the three months ended June 30, 2025.

As of June 30, 2025, amounts due to Matthews from Propelis totaled $ 5,887 , which reflected outstanding administrative fees, and net transactional amounts pending settlement under the TSA.

During the first quarter of fiscal 2026, the Company recognized $ 2,495 of administrative support fees under the TSA, which were included as a component of administrative expense.

Sales to and purchase from Propelis were immaterial for the three months ended December 31, 2025.

Amounts due from Matthews to Propelis were insignificant as of December 31, 2025.

Amounts due to Matthews from Propelis totaled $ 3,971 as of September 30, 2025, 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 January 22, 2026, subsequent to the date of the balance sheet, the Company redeemed all of its outstanding 2027 Senior Secured Notes.

Refer to Note 8, "Debt and Financing Arrangements" for further information.

Management's Discussion and Analysis of Financial Condition and Results of Operations

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Any forward-looking statements contained herein are included pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions or strategies of the Company regarding the future, including statements regarding the anticipated timing and benefits of the joint venture transaction with Propelis Group ("Propelis"), and may be identified by the use of words such as “expects,” “believes,” “intends,” “projects,” “anticipates,” “estimates,” “plans,” “seeks,” “forecasts,” “predicts,” “objective,” “targets,” “potential,” “outlook,” “may,” “will,” “could” or the negative of these terms, other comparable terminology and variations thereof.

Propelis Group ("Propelis") and the timing thereof, and may be identified by the use of words such as “expects,” “believes,” “intends,” “projects,” “anticipates,” “estimates,” “plans,” “seeks,” “forecasts,” “predicts,” “objective,” “targets,” “potential,” “outlook,” “may,” “will,” “could” or the negative of these terms, other comparable terminology and variations thereof.

Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from management's expectations, and no assurance can be given that such expectations will prove correct.

Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include our ability to achieve the anticipated benefits of the joint venture transaction with Propelis that recently closed, changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company's products, including changes in costs due to adjustments to tariffs, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company’s operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as supply chain disruptions, labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company's acquisitions, divestitures, and business combinations, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company's internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company's control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine, the Company's plans and expectations with respect to its exploration, and contemplated execution, of various strategies with respect to its portfolio of businesses, the Company's plans and expectations with respect to its Board, and other factors described in Item 1A - "Risk Factors" in this Form 10-Q and Item 1A - "Risk Factors" in the Company's Form 10-K for the fiscal year ended September 30, 2024.

Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include risks to our ability to achieve the anticipated benefits of the joint venture transaction with Propelis that closed in fiscal year 2025, changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company's products, including changes in costs due to adjustments to tariffs, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company’s operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as supply chain disruptions, labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company's acquisitions, divestitures, and business combinations, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company's internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company's control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine, and conflicts and related sanctions or trade restrictions involving Venezuela, the Company's plans and expectations with respect to its exploration, and contemplated execution, of various strategies with respect to its portfolio of businesses, the Company's plans and expectations with respect to its Board of Directors, and other factors described in Item 1A - "Risk Factors" in this Form 10-Q and Item 1A - "Risk Factors" in the Company's Form 10-K for the fiscal year ended September 30, 2025.

In addition, although the Company does not currently have any customers that would be considered individually significant to consolidated sales, changes in the distribution of the Company's products or the potential loss of one or more of the Company's larger customers are also considered risk factors.

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The Industrial Technologies segment includes the design, manufacturing, service and sales of high-tech custom energy storage solutions;

product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products;

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

The Industrial Technologies segment includes product identification, and the design, manufacturing, service and sales of high-tech custom energy storage solutions.

On May 1, 2025, the Company contributed the vast majority of its Brand Solutions segment (the "SGK Business") to a newly-formed entity, Propelis, in exchange for a 40% ownership interest in Propelis and other consideration.

Propelis is expected to be a leading global provider of brand solutions.

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

Propelis is a leading global provider of brand solutions.

On December 31, 2025, the Company sold its warehouse automation business for cash and other consideration.

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.

As a result, the Company has not recorded earnings or losses for its investment in Propelis during the quarter ended June 30, 2025.

See Notes 6, "Investments" and 15, "Acquisitions and Divestitures" in Item 1 - "Financial Statements" for further information with respect to the Company's sale of its interest in the SGK Business.

Consequently, in fiscal 2026, the Company's portion of earnings for its equity-method investment in Propelis includes the months of July, August and September 2025.

See Notes 7, "Investments" and 16, "Acquisitions and Divestitures" in Item 1 - "Financial Statements" for further information.

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

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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.

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 versus budgets, forecasts, and historical performance, 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.

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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 following table sets forth the sales and adjusted EBITDA for the Company's three reporting segments for the three and nine-month periods ended June 30, 2025 and 2024.

The following table sets forth the sales and adjusted EBITDA for the Company's three reporting segments for the three-month periods ended December 31, 2025 and 2024.

Refer to Note 15, "Segment Information" in Item 1 - "Financial Statements" for the Company's financial information by segment.

Net income was $15.4 million and $1.8 million for the three months ended June 30, 2025 and 2024, respectively, and $3.0 million and $8.5 million for the nine months ended June 30, 2025 and 2024, respectively.

Net income was $43.6 million compared to a net loss of $3.5 million for the three months ended December 31, 2025 and 2024, respectively.

Refer to "Non-GAAP Financial Measures" below for a reconciliation of net income to adjusted EBITDA.

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Three Months Ended

June 30, Nine Months Ended

2025 2024 2025 2024

(Dollar amounts in thousands)

12 unchanged sentences

See the "Non-GAAP Financial Measures" section below.

Sales for the nine months ended June 30, 2025 were $1.18 billion, compared to $1.35 billion for the nine months ended June 30, 2024.

Sales for the three months ended December 31, 2025 were $284.8 million, compared to $401.8 million for the three months ended December 31, 2024.

The decrease in fiscal 2026 sales reflected a sales reduction of $115.3 million resulting from the divestiture of the Company's interest in the SGK Business on May 1, 2025 (see Acquisitions and Divestitures below).

The fiscal 2025 sales decline also reflected lower sales in the Industrial Technologies and Memorialization segments.

On a consolidated basis, changes in foreign currency exchange rates were estimated to have an unfavorable impact of $1.1 million on fiscal 2025 sales compared to the prior year.

Memorialization segment sales for the first nine months of fiscal 2025 were $599.8 million, compared to $632.9 million for the first nine months of fiscal 2024.

The sales decrease principally reflected lower unit sales of caskets, bronze and granite memorial products, and cremation equipment, primarily reflecting a decline in U.S.

These declines were partially offset by improved price realization and the favorable net impact of recently completed acquisitions and divestitures (see Acquisitions and Divestitures below).

Industrial Technologies segment sales were $249.3 million for the first nine months of fiscal 2025, compared to $319.2 million for the first nine months of fiscal 2024.

The decrease in sales reflected lower sales of purpose-built engineered products (primarily energy storage solutions for the electric vehicle market and coating and converting equipment).

The decrease also reflected lower sales of R+S automotive engineering solutions, as the Company has discontinued these product offerings.

The fiscal 2026 change in sales also reflected higher sales in the Memorialization segment, partially offset by lower sales in the Industrial Technologies segment.

On a consolidated basis, changes in foreign currency exchange rates were estimated to have a favorable impact of $2.6 million on fiscal 2026 sales compared to the prior year.

Memorialization segment sales for the first three months of fiscal 2026 were $204.2 million, compared to $190.5 million for the first three months of fiscal 2025.

The sales increase principally reflected inflationary price realization and the favorable impact of the fiscal 2025 acquisition of The Dodge Company (see Acquisitions and Divestitures below).

These increases were partially offset by lower sales of cremation equipment and mausoleums.

Industrial Technologies segment sales were $69.0 million for the first three months of fiscal 2026, compared to $80.5 million for the first three months of fiscal 2025.

The decrease in sales reflected lower sales of purpose-built engineered products (primarily energy storage solutions for the electric vehicle market and coating and converting equipment), and the impact of divesting the Company's tooling business in December 2025 (see Acquisitions and Divestitures below).

These declines were partially offset by increased sales of warehouse automation solutions.

Fiscal 2026 sales for the Industrial Technologies segment were impacted by customer delays impacting the timing of projects within the energy storage business.

Changes in foreign currency exchange rates had a favorable impact of $2.9 million on the segment's sales compared to the prior year.

In the Brand Solutions segment, sales for the first nine months of fiscal 2025 were $329.7 million, compared to $396.9 million for the first nine months of fiscal 2024.

In the Brand Solutions segment, sales for the first three months of fiscal 2026 were $11.6 million, compared to $130.8 million for the first three months of fiscal 2025.

The decrease in sales primarily reflected the divestiture of the Company's interest in the SGK Business on May 1, 2025.

Sales for the SGK Business prior to the divestiture (versus the comparable period of the prior year) reflected higher brand sales in the U.S.

and Asia-Pacific regions, improved retail-based sales, increased private-label brand sales, and improved price realization to mitigate inflationary cost increases.

These increases were partially offset by lower brand sales in Europe and the impact of unfavorable changes in foreign exchange rates.

Brand Solutions segment sales also reflected lower sales for the European cylinders (packaging) business, which was not part of the sale of the SGK Business and remains part of the Company.

Changes in foreign currency exchange rates had an unfavorable impact of $1.8 million on the segment's sales compared to the prior year.

Gross profit for the nine months ended June 30, 2025 was $391.8 million, compared to $412.4 million for the same period a year ago.

Consolidated gross profit as a percent of sales was 33.2% and 30.6% for the first nine months of fiscal 2025 and fiscal 2024, respectively.

The decrease in gross profit reflected a reduction of $19.3 million resulting from the divestiture of the Company's interest in the SGK Business.

The gross profit decline also reflected the impact of lower sales, and higher material and labor costs.

These decreases were partially offset by the impact of improved price realization, benefits from the realization of productivity improvements and other cost-reduction initiatives, and the favorable net impact of recently completed acquisitions and divestitures within the Memorialization segment.

Gross profit also included acquisition integration costs and other charges primarily in connection with cost-reduction initiatives totaling $3.9 million and $9.2 million for the nine months ended June 30, 2025 and 2024, respectively.

Selling and administrative expenses for the nine months ended June 30, 2025 were $345.7 million, compared to $347.1 million for the first nine months of fiscal 2024.

Consolidated selling and administrative expenses, as a percent of sales, were 29.3% for

Management's Discussion and Analysis of Financial Condition and Results of Operations, Continued

the nine months ended June 30, 2025, compared to 25.7% for the same period last year.

Selling and administrative expenses in fiscal 2025 reflected benefits from ongoing cost-reduction initiatives, and a $12.1 million reduction in selling and administrative expenses from the divestiture of the Company's interest in the SGK Business, partially offset by higher compensation costs.

Fiscal 2025 selling and administrative expenses included $5.1 million of costs related to the Company's 2025 contested proxy, $8.7 million of net gains on the sales of certain significant property and other assets, $3.5 million of accelerated stock-based compensation costs related to the Company's divestiture of its interest in the SGK Business, and a $2.1 million loss on a small divestiture in the Industrial Technologies segment.

Selling and administrative expenses included legal costs related to an ongoing dispute in the Company's energy storage business totaling $14.4 million in fiscal 2025 and $8.1 million in fiscal 2024 (see Legal Matter below).

Selling and administrative expenses included fees for receivables sold under a receivables purchase agreement and factoring arrangement totaling $3.3 million in fiscal 2025 and $3.6 million in fiscal 2024.

Selling and administrative expenses also included acquisition integration and related systems-integration costs, and other charges primarily in connection with certain commercial, operational and cost-reduction initiatives totaling $8.0 million in fiscal 2025, compared to $5.5 million in fiscal 2024.

Intangible amortization for the nine months ended June 30, 2025 was $16.4 million, compared to $27.8 million for the nine months ended June 30, 2024.

During the third quarter of fiscal 2025, the Company recognized a $57.1 million pre-tax gain on the sale of its interest in the SGK Business (See Acquisitions and Divestitures below).

Adjusted EBITDA was $136.0 million for the nine months ended June 30, 2025 and $147.0 million for the nine months ended June 30, 2024.

Memorialization segment adjusted EBITDA was $124.5 million for the first nine months of fiscal 2025 compared to $122.1 million for the first nine months of fiscal 2024.

The increase in segment adjusted EBITDA reflected the impact of improved price realization, benefits from productivity initiatives, and the favorable net impact of recent acquisitions and divestitures.

These increases were partially offset by the impact of lower unit sales, and higher material and labor costs.

Adjusted EBITDA for the Industrial Technologies segment was $16.9 million for the nine months ended June 30, 2025 compared to $23.8 million for the nine months ended June 30, 2024.

The decrease in segment adjusted EBITDA primarily reflected the impact of lower sales of engineered products, partially offset by benefits from cost-reduction initiatives.

Adjusted EBITDA for the Brand Solutions segment was $32.9 million for the first nine months of fiscal 2025 compared to $44.3 million for the same period a year ago.

The decrease in segment adjusted EBITDA primarily reflected a reduction of $11.0 million resulting from the divestiture of the Company's interest in the SGK Business.

Adjusted EBITDA for the SGK Business prior to the divestiture (versus the comparable period of the prior year) reflected the impact of higher labor costs, partially offset by the impact of improved price realization and benefits from cost-reduction initiatives.

Brand Solutions segment adjusted EBITDA also reflected declines for the European cylinders (packaging) business, which was not part of the sale of the SGK Business and remains part of the Company.

Interest expense for the first nine months of fiscal 2025 was $47.4 million, compared to $36.9 million for the same period last year.

The increase in interest expense reflected higher average interest rates, partially offset by a decrease in average borrowing levels in the current fiscal year.

Other income (deductions), net, for the nine months ended June 30, 2025 represented an increase in pre-tax income of $2.0 million, compared to a decrease in pre-tax income of $2.7 million for the same period last year.

Other income (deductions), net includes investment income, banking-related fees and the impact of currency gains and losses on certain intercompany debt and foreign denominated cash balances.

Income tax provisions for the Company's interim periods are based on the effective income tax rate expected to be applicable for the full year.

The Company's consolidated income taxes for the first nine months of fiscal 2025 represented a provision of $38.4 million, compared to a benefit of $10.7 million for the first nine months of fiscal 2024.

The Company’s fiscal 2025 nine month effective tax rate varied from the U.S.

The Company’s fiscal 2024 nine month effective tax rate varied from the U.S.

statutory tax rate of 21.0% primarily due to tax credits, jurisdictional tax rate netting, recognition of certain previously unrecognized deferred tax assets and other net discrete tax benefits.

Refer to Note 17, "Legal Matter" in Item 1 - "Financial Statements" for details related to an ongoing dispute with Tesla.

Management's Discussion and Analysis of Financial Condition and Results of Operations, Continued

Related Party Transactions

Refer to Note 18, "Related Party Transactions" in Item 1 - "Financial Statements" for information regarding transactions with Propelis.

NON-GAAP FINANCIAL MEASURES:

Included in this report are measures of financial performance that are not defined by GAAP.

The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect the Company’s core operations including acquisition and divestiture costs, gains and losses on divestitures, ERP system integration costs, strategic initiatives and other charges (which includes non-recurring charges related to certain commercial and operational initiatives and exit activities), stock-based compensation and the non-service portion of pension and postretirement expense.

Management believes that presenting non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items that management believes do not directly reflect the Company's core operations, (ii) permits investors to view performance using the same tools that management uses to budget, forecast, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company’s results.

The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provided herein, provides investors with an additional understanding of the factors and trends affecting the Company’s business that could not be obtained absent these disclosures.

The Company believes that adjusted EBITDA provides relevant and useful information, which is used by the Company’s management in assessing the performance of its business.

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, gains and losses on divestitures, ERP system integration costs, and strategic initiatives and other charges.

Adjusted EBITDA provides the Company with an understanding of earnings before the impact of investing and financing charges and income taxes, and the effects of certain acquisition and divestiture and ERP system integration costs, and items that do not reflect the ordinary earnings of the Company’s operations.

This measure may be useful to an investor in evaluating operating performance.

It is also useful as a financial measure for lenders and is used by the Company’s management to measure business performance.

Adjusted EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of the Company's liquidity.

The Company's definition of adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

Fiscal 2026 segment sales reflected sales for the European cylinders (packaging) business through December 1, 2025, at which time this business was divested (see Acquisitions and Divestitures below).

Changes in foreign currency exchange rates had an unfavorable impact of $804,000 on the segment's sales compared to the prior year.

Gross profit for the three months ended December 31, 2025 was $99.7 million, compared to $125.7 million for the same period a year ago.

The decrease in gross profit reflected a reduction of $26.6 million resulting from the fiscal 2025 divestiture of the Company's interest in the SGK Business.

The gross profit decline also reflected the impact of higher material and labor costs, and lower sales and margins on engineered products.

These decreases were partially offset by the impact of improved price realization, benefits from the realization of productivity improvements and other cost-reduction initiatives, and the favorable impact of the Dodge acquisition within the Memorialization segment.

Gross profit also included acquisition integration costs and other charges primarily in connection with cost-reduction initiatives totaling $1.3 million and $1.1 million for the three months ended December 31, 2025 and 2024, respectively.

Selling and administrative expenses for the three months ended December 31, 2025 were $112.4 million, compared to $111.4 million for the same period last year.

Consolidated selling and administrative expenses, as a percent of sales, were 39.5% for the three months ended December 31, 2025, compared to 27.7% for the same period last year.

Selling and administrative expenses in fiscal 2026 reflected benefits from ongoing cost-reduction initiatives, and an $18.5 million reduction in selling and administrative expenses from the fiscal 2025 divestiture of the Company's interest in the SGK Business, partially offset by higher compensation costs.

Selling and administrative expenses included legal costs related to an ongoing dispute with Tesla,

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements