MANITOWOC CO INC 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, including the financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations therein, and the interim condensed consolidated financial statements and accompanying notes included in this Quarterly Report on Form 10-Q. All dollar amounts are in millions throughout the tables included in Management’s Discussion and Analysis of Financial Condition and Results of Operations unless otherwise indicated. Cautionary Statements Regarding Forward-Looking Information All of the statements in this Quarterly Report on Form 10-Q, other than historical facts, are forward-looking statements, including, without limitation, the statements made in the “Management's Discussion and Analysis of Financial Condition and Results of Operations.” As a general matter, forward-looking statements are those focused upon anticipated events or trends, expectations and beliefs relating to matters that are not historical in nature. The words “could,” “should,” “may,” “feel,” “anticipate,” “aim,” “preliminary,” “expect,” “believe,” “estimate,” “intend,” “intent,” “plan,” “will,” “foresee,” “project,” “forecast,” or the negative thereof or variations thereon, and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for these forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that forward-looking statements are subject to known and unknown risks, uncertainties and other factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the Company. These known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those matters expressed in, anticipated by or implied by such forward-looking statements. These risks, uncertainties, and other factors include, but are not limited to: • macroeconomic conditions, including inflation, elevated interest rates, and tariffs, as well as prior supply chain, labor and logistics constraints, have had, and may continue to have, a negative impact on Manitowoc’s ability to convert backlog into revenue (the timing of sales) which could impact, and has impacted, its financial condition, cash flows, and results of operations (including future uncertain impacts); • uncertainty regarding, and adverse changes to, trade policy, including tariffs, reciprocal tariffs, trade agreements, ongoing negotiations on trade agreements with additional trade partners, legal challenges to certain tariffs authorities, updated guidance from regulators, export duties, import controls and trade barriers (including quotas); • actions of competitors; • changes in economic or industry conditions generally or in the markets served by Manitowoc; • geopolitical events, including the ongoing conflicts in Ukraine and in the Middle East, other political and economic conditions and risks and other geographic factors, have led to and may continue to lead to market disruptions, including volatility in commodity prices (including oil and gas), raw material and component costs, energy prices, inflation, consumer behavior, supply chain, and credit and capital markets, and could result in the impairment of assets; • changes in customer demand, including changes in global demand for high-capacity lifting equipment, changes in demand for lifting equipment in emerging economies and changes in demand for used lifting equipment including changes in government approval and funding of projects; • the ability to convert backlog, orders, and order activity into sales and the timing of those sales; • the ability to focus on customers, new technologies, and innovation; • uncertainties associated with new product introductions, the successful development and market acceptance of new and innovative products that drive growth; • failure to comply with regulatory requirements related to the products and aftermarket services the Company sells; • the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s long-term initiatives; • the ability of Manitowoc's customers to receive financing; • risks associated with high debt leverage; • impairment of goodwill and/or intangible assets; • changes in revenues, margins and costs; 20 • the ability to increase operational efficiencies across Manitowoc and to capitalize on those efficiencies; • the ability to generate cash and manage working capital consistent with Manitowoc’s stated goals; • work stoppages, labor negotiations, labor rates, and labor costs; • the Company’s ability to attract and retain qualified personnel; • changes in the capital and financial markets; • the ability to complete and appropriately integrate acquisitions, strategic alliances, joint ventures and other significant transactions; • issues associated with the availability and viability of suppliers; • the ability to significantly improve profitability; • realization of anticipated earnings enhancements, cost savings, strategic options and other synergies, and the anticipated timing to realize those savings, synergies and options; • the replacement cycle of technologically obsolete products; • foreign currency fluctuation and its impact on reported results; • risks associated with data security and technological systems and protections; • the ability to direct resources to those areas that will deliver the highest returns; • risks associated with manufacturing or design defects; • natural disasters, other weather events, pandemics and other public health crises disrupting commerce in one or more regions of the world; • issues relating to the ability to timely and effectively execute on manufacturing strategies, general efficiencies, and capacity utilization of the Company’s facilities; • the ability to focus and capitalize on product and service quality and reliability; • issues associated with the quality of materials, components and products sourced from third parties and the ability to successfully resolve those issues; • changes in laws throughout the world, including governmental regulations on climate change; • the inability to defend against potential infringement claims on intellectual property rights; • the ability to sell products and services through distributors and other third parties; • issues affecting the effective tax rate for the year; • acts of terrorism; and • other risks and factors detailed in Manitowoc's 2025 Annual Report on Form 10-K, as such may be amended or supplemented in Manitowoc's subsequently filed Quarterly Reports on Form 10-Q (including this report) and its other filings with the United States Securities and Exchange Commission. These statements reflect the current views and assumptions of management with respect to future events. Except to the extent required by the federal securities laws, the Company does not undertake, and hereby disclaims, any duty to update these forward-looking statements, even though its situation and circumstances may change in the future. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. The inclusion of any statement in this report does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material. 21 Orders and Backlog Orders and backlog are not measures defined by GAAP and our methodology for determining orders and backlog may vary from the methodology used by other companies. Management uses orders and backlog for capacity and resource planning. The Company believes this information is useful to investors to provide an indication of future revenues. Backlog represents the dollar value of orders which are expected to be recognized in net sales in the future. Orders are included in backlog when an executed binding contract with a price that has a floor has been received but has not been recognized in net sales. Orders for the three months ended March 31, 2026 increased 5.8% to $645.7 million from $610.3 million for the same period in 2025. The increase in orders was primarily attributable to higher demand in the Company’s MEAP and EURAF segments. This was partially offset by lower demand in the Company’s Americas segment due to large stocking orders in the three months ended March 31, 2025 that did not reoccur. Orders were favorably impacted by $25.7 million from changes in foreign currency exchange rates. As of March 31, 2026, total backlog was $939.9 million, an increase of 18.4% from the December 31, 2025 backlog of $793.5 million, and an increase of 17.8% from the March 31, 2025 backlog of $797.8 million. Backlog was unfavorably impacted by $16.0 million from December 31 2025 and was favorably impacted by $20.7 million from March 31, 2025, from changes in foreign currency exchange rates. Results of Operations For the Three Months Ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 Percentage Change Net sales $ 494.6 $ 470.9 5.0 % Gross profit 95.3 89.8 6.1 % Gross profit % 19.3 % 19.1 % Engineering, selling and administrative expenses 90.6 82.9 9.3 % Interest expense 8.9 8.7 2.3 % Other expense - net (3.1 ) (5.0 ) * Benefit for income taxes (3.3 ) (2.5 ) * * Measure not meaningful. Net Sales Consolidated net sales for the three months ended March 31, 2026 increased 5.0% to $494.6 million from $470.9 million in the same period in 2025. This increase was primarily attributable to $14.4 million of higher new machine sales in the Company's tower product line in the EURAF segment and $5.1 million of higher non-new machine sales. This was partially offset by $7.2 million of lower new machine sales in the MEAP segment. Net sales were favorably impacted by $18.9 million from changes in foreign currency exchange rates. Gross Profit Gross profit for the three months ended March 31, 2026 increased 6.1% to $95.3 million as compared to $89.8 million for the same period in 2025. The increase was primarily due to higher revenue partially offset by unfavorable product mix and incremental tariff costs. Gross profit was favorably impacted by $3.4 million from changes in foreign currency exchange rates. Gross profit percentage for the three months ended March 31, 2026 increased to 19.3% as compared to 19.1% for the same period in 2025. Engineering, Selling, and Administrative Expenses Engineering, selling, and administrative expenses for the three months ended March 31, 2026 increased 9.3% to $90.6 million from $82.9 million for the same period in 2025. The increase was primarily due to marketing expenses related to the Conexpo triennial trade show and higher employee costs. Engineering, selling, and administrative expenses were unfavorably impacted by $3.8 million from changes in foreign currency exchange rates. Interest Expense Interest expense for the three months ended March 31, 2026 was $8.9 million as compared to $8.7 million for the same period in 2025. Interest expense increased year-over-year primarily due to higher average outstanding balances on the Company's ABL Revolving Credit Facility. See further detail at Note 10, “Debt” to the Condensed Consolidated Financial Statements. 22 Other Expense - Net Other expense - net was $3.1 million during the three months ended March 31, 2026 and $5.0 million for the same period in 2025. Other expense - net during the three months ended March 31, 2026 was primarily composed of $3.3 million of net currency transaction losses and $0.1 million of pension related costs, partially offset by $0.4 million of interest income. Other expense - net during the three months ended March 31, 2025 was primarily composed of $4.9 million of net currency transaction losses and $0.5 million of pension related costs, partially offset by $0.3 million of interest income. Benefit for Income Taxes For the three months ended March 31, 2026 and 2025, the Company recorded a benefit for income taxes of $3.3 million and $2.5 million, respectively. In addition, the Company’s effective tax rate varies from the U.S. federal statutory rate of 21% due to results of foreign operations that are subject to income taxes at different statutory rates and losses in certain jurisdictions where no tax benefit can be realized. Segment Operating Performance The Company manages its business primarily on a geographic basis. The Company has three reportable segments: the Americas segment, EURAF segment, and MEAP segment. Further information regarding the Company’s reportable segments can be found in Note 16, “Segments,” to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q. Three Months Ended March 31, 2026 2025 Dollar Change Percentage Change Net Sales Americas $ 268.4 $ 259.3 $ 9.1 3.5 % EURAF 167.4 145.6 21.8 15.0 % MEAP 58.8 66.0 (7.2 ) (10.9 )% Segment Operating Income (Loss) Americas $ 12.2 $ 17.7 $ (5.5 ) (31.1 )% EURAF (5.3 ) (11.3 ) 6.0 * MEAP 8.1 11.4 (3.3 ) (28.9 )% *Measure not meaningful Americas Americas segment net sales increased 3.5% for the three months ended March 31, 2026 to $268.4 million from $259.3 million for the same period in 2025. The increase was primarily attributable to higher non-new machine sales and price realization, partially offset by lower new crane sales. Americas segment operating income decreased $5.5 million for the three months ended March 31, 2026 to $12.2 million from $17.7 million for the same period in 2025. The decrease was primarily attributable to unfavorable product mix and incremental tariff costs. EURAF EURAF segment net sales increased 15.0% for the three months ended March 31, 2026 to $167.4 million from $145.6 million for the same period in 2025. The increase was primarily attributable to $21.2 million of higher new crane sales, primarily in the Company’s tower crane business. Segment net sales were favorably impacted by $14.6 million from changes in foreign currency exchange rates. EURAF segment operating loss decreased $6.0 million for the three months ended March 31, 2026 to $5.3 million from $11.3 million for the same period in 2025. The decrease in operating loss was primarily attributable to the higher net sales and favorable product mix, specifically in the towers product line. Segment operating loss was unfavorably impacted by $0.9 million from changes in foreign currency exchange rates. 23 MEAP MEAP segment net sales decreased 10.9% for the three months ended March 31, 2026 to $58.8 million from $66.0 million for the same period in 2025. The decrease was primarily attributable to $7.2 million of lower new machine sales due to lower shipments into the Middle East as a result of the Iran war. MEAP segment net sales were favorably impacted by $3.8 million from changes in foreign currency exchange rates. MEAP segment operating income decreased $3.3 million for the three months ended March 31, 2026 to $8.1 million from $11.4 million for the same period in 2025. The decrease was primarily due to the lower net sales. MEAP segment operating income was favorably impacted by $0.7 million from changes in foreign currency exchange rates. Financial Condition Cash Flows A summary of cash flows for the three months ended March 31, 2026 and 2025 are as follows: Three Months Ended March 31, 2026 2025 Dollar Change Net cash provided by operating activities $ 27.4 $ 12.9 $ 14.5 Net cash used for investing activities (7.9 ) (23.6 ) 15.7 Net cash (used for) provided by financing activities (17.5 ) 3.2 (20.7 ) Cash and cash equivalents 78.4 41.4 37.0 Cash Flows From Operating Activitie s Cash flows provided by operating activities of $27.4 million for the three months ended March 31, 2026 increased $14.5 million from $12.9 million for the same period in 2025. The increase in net cash provided by operating activities was primarily driven by $15.0 million of higher cash provided by the net change in operating assets and liabilities. Cash Flows From Investing Activities Net cash used for investing activities of $7.9 million for the three months ended March 31, 2026 decreased $15.7 million from $23.6 million for the same period in 2025. The decrease in net cash used for investing activities was primarily due to $12.9 million of cash outflows in the prior year related to the purchase of certain assets and territory from Ring Power Corporation and $2.6 million of lower capital expenditures. Cash Flows From Financing Activities Net cash used for financing activities of $17.5 million for the three months ended March 31, 2026 decreased $20.7 million from $3.2 million of cash provided by financing activities for the same period in 2025. The increase in net cash used for financing activities was primarily due to $17.9 million of borrowings in the prior year as compared to $9.0 million of payments in the current year under the ABL Revolving Credit Facility. Liquidity and Capital Resources The Company’s liquidity position as of March 31, 2026 and December 31, 2025 is summarized as follows: March 31, 2026 December 31, 2025 Cash and cash equivalents $ 78.4 $ 77.3 Revolver borrowing capacity 325.0 325.0 Other debt availability 54.4 47.7 Less: Borrowings on revolver (134.4 ) (144.6 ) Less: Borrowings on other debt (4.4 ) (4.3 ) Less: Outstanding letters of credit (3.4 ) (3.4 ) Total liquidity $ 315.6 $ 297.7 The Company believes its liquidity and expected cash flows from operations are sufficient to meet expected working capital, capital expenditure, and other general ongoing operational needs in the subsequent twelve months. 24 Cash Sources The Company has historically relied primarily on cash flows from operations, borrowings under revolving credit facilities and overdraft facilities, issuances of notes, and other forms of debt financing as its sources of cash. The maximum availability under the Company’s current ABL Revolving Credit Facility is $325.0 million, of which $100.0 million is available to our German subsidiary. The borrowing capacity under the ABL Revolving Credit Facility is based on the value of inventory, accounts receivable and certain fixed assets of the Loan Parties. The Loan Parties’ obligations under the ABL Revolving Credit Facility are secured on a first-priority basis, subject to certain exceptions and permitted liens, by substantially all the personal property and fee-owned real property of the Loan Parties. The liens securing the ABL Revolving Credit Facility are senior in priority to the second-priority liens securing the obligations under the 2031 Notes and the related guarantees. The ABL Revolving Credit Facility has a maturity date of September 18, 2029, and includes a $75.0 million letter of credit sub-facility, $10.0 million of which is available to the Company's German subsidiary that is a borrower under this facility. In addition to the ABL Revolving Credit Facility, the Company has access to committed and non-committed lines of credit to fund working capital in Europe and China. There are seven facilities, of which five facilities are denominated in Euros totaling €37.0 million and two facilities denominated in Chinese Yuan totaling ¥80.0 million. On April 2, 2026, the Company cancelled its ¥30.0 million Chinese Yuan denominated facility, reducing total liquidity by $4.4 million. Total U.S. dollar availability as of March 31, 2026 for the seven facilities was $54.4 million, with $4.4 million outstanding. Debt Outstanding debt as of March 31, 2026 and December 31, 2025 is summarized as follows: March 31, 2026 December 31, 2025 Borrowings under senior secured asset based revolving credit facility $ 134.4 $ 144.6 Senior secured second lien notes due 2031 300.0 300.0 Other debt 17.2 20.6 Deferred financing costs (4.2 ) (4.4 ) Total debt 447.4 460.8 Short-term borrowings and current portion of long-term debt (10.8 ) (13.7 ) Long-term debt $ 436.6 $ 447.1 Both the ABL Revolving Credit Facility and 2031 Notes include customary covenants and events of default. Refer to Note 10, “Debt,” to the Condensed Consolidated Financial Statements for additional discussions of covenants under the ABL Revolving Credit Facility and 2031 Notes. As of March 31, 2026, the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the ABL Revolving Credit Facility and 2031 Notes. Based upon management’s current plans and outlook, the Company believes it will be able to comply with these covenants during the subsequent twelve months. From time to time, the Company seeks to opportunistically raise capital in the debt capital markets and bank credit markets. Non-GAAP Measures The Company uses EBITDA, adjusted EBITDA, adjusted operating income, adjusted net loss, adjusted diluted net loss per share ("adjusted DEPS"), adjusted return on invested capital ("ROIC") and free cash flows, which are financial measures that are not prepared in accordance with GAAP, as additional metrics to evaluate the Company’s performance. The Company believes these non-GAAP measures provide important supplemental information to readers regarding business trends that can be used in evaluating its results because these financial measures provide a consistent method of comparing financial performance and are commonly used by investors to assess performance. These non-GAAP financial measures should be considered together with, and are not substitutes for, the GAAP financial information provided herein. Adjusted ROIC Adjusted ROIC measures how efficiently the Company uses invested capital in its operations. Adjusted ROIC is not a measure defined by GAAP and the Company’s methodology for determining Adjusted ROIC may vary from the methodology used by other companies. Management and the Board of Directors use Adjusted ROIC as a measure to assess operational performance 25 and capital allocation. The Company believes this information is useful to investors as it provides a measure of value creation as a percentage of capital invested. Adjusted ROIC is determined by dividing adjusted net operating profit after tax (“Adjusted NOPAT”) for the trailing twelve-months by the five-quarter average of invested capital. Adjusted NOPAT is calculated for each quarter by taking operating income plus the addback of amortization of intangible assets, and the addback or subtraction of restructuring expenses, other non-recurring items – net, and provision for income taxes, which is determined using a 15% tax rate. Invested capital is defined as net total assets less cash and cash equivalents and income tax assets - net plus short-term and long-term debt. Income tax assets - net are defined as net income tax payables/receivables, net deferred tax assets/liabilities, and uncertain tax positions. The Company’s Adjusted ROIC as of March 31, 2026 was 5.1%. Below is the calculation of Adjusted ROIC as of March 31, 2026 and 2025. Trailing Twelve Months Ended March 31, 2026 Trailing Twelve Months Ended March 31, 2025 Operating income $ 51.6 $ 41.9 Amortization of intangible assets 3.1 3.0 Restructuring expense 4.9 4.8 Other non-recurring items - net (1) 0.8 9.0 Adjusted operating income 60.4 58.7 Provision for income taxes (9.1 ) (8.8 ) Adjusted NOPAT $ 51.3 $ 49.9 5-Quarter Average 2026 5-Quarter Average 2025 Total assets $ 1,841.9 $ 1,745.8 Total liabilities (1,162.5 ) (1,128.3 ) Net total assets 679.3 617.5 Cash and cash equivalents (53.9 ) (36.4 ) Short-term borrowings and current portion of long-term debt 14.7 27.0 Long-term debt 441.0 392.8 Income tax assets - net (67.1 ) (30.8 ) Invested capital $ 1,013.9 $ 970.2 Adjusted ROIC 5.1 % 5.1 % (1) Other non-recurring items – net for the three months ended March 31, 2026 represents the addback of $0.5 million of costs associated with a legal matter and $0.3 million of other one-time costs. Other non-recurring items – net for the three months ended March 31, 2025 represents $8.9 million of costs associated with a legal matter with the U.S. EPA and $0.1 million of one-time costs. Adjusted Net Loss and Adjusted DEPS The Company defines adjusted net loss as net loss plus the addback or subtraction of restructuring and other non-recurring items. Adjusted DEPS is defined as adjusted net loss divided by diluted weighted average shares outstanding. Diluted weighted average common shares outstanding are adjusted for the effect of dilutive stock awards when there is net income on an adjusted basis, as applicable. The reconciliation of net loss and diluted net loss per share to adjusted net loss and Adjusted DEPS for the 26 three months ended March 31, 2026 and 2025 are summarized as follows. All dollar amounts are in millions, except per share data and share amounts. Three Months Ended March 31, 2026 2025 As reported Adjustments Adjusted As reported Adjustments Adjusted Gross profit $ 95.3 $ — $ 95.3 $ 89.8 $ — $ 89.8 Engineering, selling and administrative expenses (1) (90.6 ) 0.8 (89.8 ) (82.9 ) — (82.9 ) Amortization of intangible assets (0.8 ) — (0.8 ) (0.8 ) — (0.8 ) Restructuring expense (2) (0.8 ) 0.8 — (0.8 ) 0.8 — Operating income 3.1 1.6 4.7 5.3 0.8 6.1 Interest expense (8.9 ) — (8.9 ) (8.7 ) — (8.7 ) Amortization of deferred financing fees (0.4 ) — (0.4 ) (0.4 ) — (0.4 ) Other expense - net (3.1 ) — (3.1 ) (5.0 ) — (5.0 ) Loss before income taxes (9.3 ) 1.6 (7.7 ) (8.8 ) 0.8 (8.0 ) Benefit for income taxes (3) 3.3 (0.2 ) 3.1 2.5 (0.2 ) 2.3 Net loss $ (6.0 ) $ 1.4 $ (4.6 ) $ (6.3 ) $ 0.6 $ (5.7 ) Diluted weighted average common shares outstanding 35,665,590 35,665,590 35,273,783 35,273,783 Diluted net loss per share $ (0.17 ) $ (0.13 ) $ (0.18 ) $ (0.16 ) (1) The adjustments in 2026 represent the addback of $0.5 million of costs associated with a legal matter and $0.3 million of other one-time costs. (2) The adjustments in 2026 and 2025 represent the addback of restructuring expense. (3) The adjustments in 2026 and 2025 represent the net income tax impact of items (1) and (2). EBITDA and Adjusted EBITDA The Company defines EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. The Company defines adjusted EBITDA as EBITDA plus the addback or subtraction of restructuring expense, other expense - net, and certain other non-recurring items. The reconciliation of net income (loss) to EBITDA, and further to adjusted EBITDA for the three months ended March 31, 2026 and 2025 and trailing twelve months is summarized as follows. Three Months Ended March 31, Trailing Twelve 2026 2025 Months Net income (loss) $ (6.0 ) $ (6.3 ) $ 7.5 Interest expense and amortization of deferred financing fees 9.3 9.1 39.4 Provision (benefit) for income taxes (3.3 ) (2.5 ) 4.4 Depreciation expense 14.1 14.8 59.2 Amortization of intangible assets 0.8 0.8 3.1 EBITDA 14.9 15.9 113.6 Restructuring expense 0.8 0.8 4.9 Other non-recurring items - net (1) 0.8 — 0.8 Other expense - net (2) 3.1 5.0 0.3 Adjusted EBITDA $ 19.6 $ 21.7 $ 119.6 Adjusted EBITDA margin percentage 4.0 % 4.6 % 5.5 % 27 (1) Other non-recurring items - net for the three months ended March 31, 2026 relate to $0.5 million of costs associated with a legal matter and $0.3 million of other one-time costs. (2) Other expense - net includes net foreign currency (gains) losses, other components of net periodic pension costs, and other items in the three months ended March 31, 2026, the three months ended March 31, 2025, and the trailing twelve months ended March 31, 2026. Free Cash Flows Free cash flows is defined as net cash provided by operating activities less cash outflow from investment in capital expenditures. The reconciliation of net cash provided by operating activities to f ree cash flows for the three months ended March 31, 2026 and 2025 is summarized as follows. Three Months Ended March 31, 2026 2025 Net cash provided by operating activities $ 27.4 $ 12.9 Capital expenditures (8.2 ) (10.8 ) Free cash flows $ 19.2 $ 2.1 Critical Accounting Policies The Company's critical accounting policies have not materially changed since the 2025 Annual Report on Form 10-K was filed. Refer to the Critical Accounting Policies in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Annual Report on Form 10-K for the year ended December 31, 2025 for information about the Company’s policies, methodology and assumptions related to critical accounting policies. Item 3. Quantitative and Qualita tive Disclosure about Market Risk The Company’s market risk disclosures have not materially changed since the 2025 Annual Report on Form 10-K was filed. The Company’s quantitative and qualitative disclosures about market risk are incorporated by reference from Part II, Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.