What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-06-05 compared with 2026-03-06 · 163 added, 69 removed, 143 unchanged (62% of the section changed)

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

The following discussion and analysis contains forward-looking statements based on our current assumptions, expectations, estimates and projections about our business and the homebuilding industry, and therefore, it should be read in conjunction with our accompanying unaudited condensed consolidated financial statements and related notes as of January 31, 2026, and for the three months ended January 31, 2026 and 2025, included elsewhere herein.

The following discussion and analysis contains forward-looking statements based on our current assumptions, expectations, estimates and projections about our business and the homebuilding industry, and therefore, it should be read in conjunction with our accompanying unaudited condensed consolidated financial statements and related notes as of April 30, 2026, and for the three and six months ended April 30, 2026 and 2025, included elsewhere herein.

Actual results could differ from our expectations due to several factors which include, but are not limited to:

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In the U.S., demand for insulating-glass spacers and vinyl profiles is supported by increasing adoption of high-performance window systems that improve thermal performance.

and continental Europe, our vinyl business serves window fabricators and distributors with a broad offering of vinyl extrusions, decking, and roofing systems.

our vinyl business serves window fabricators and distributors with a broad offering of vinyl extrusions, decking, and roofing systems.

The European market continues to benefit from government-sponsored retrofit programs and EU directives targeting energy efficiency and sustainability in existing building stock.

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We are monitoring evolving U.S.

and global tariff and trade policies, including the recent decision by the U.S.

Supreme Court that invalidates certain tariffs imposed under the International Emergency Economic Powers Act.

We are assessing the potential impact of this decision and other trade policy developments on our operations, supply chain and cost structure and continue to work with our suppliers and customers to mitigate potential impacts on our business.

We are also monitoring ongoing geopolitical tensions and conflicts in various regions of the world, which may contribute to volatility in global markets, supply chains, commodity pricing and foreign currency exchange rates.

and global tariff and trade policies, including court decisions invalidating certain tariffs.

We are assessing the potential impact of these decisions and other trade policy developments on our operations, supply chain and cost structure and continue to work with our suppliers and customers to mitigate potential impacts on our business.

We are also monitoring ongoing geopolitical tensions and conflicts in various regions of the world, including the situations in Ukraine and the Middle East, which may contribute to volatility in global markets, supply chains, commodity pricing and foreign currency exchange rates.

The extent and duration of current and potential tariff measures and geopolitical developments, and the resulting impact on general economic conditions and our operations, remain uncertain and depend on various factors, including negotiations between the U.S.

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We have historically evaluated the market using data from the National Association of Homebuilders (NAHB) with regard to housing starts and R&R activity, and published reports by Ducker Worldwide, LLC (Ducker), a consulting and research firm, with regard to window shipments in the U.S.

In January 2026 , the NAHB forecasted calendar-year housing starts to be approximately 1.3 million and 1.4 million in calendar-year 2026 and 2027.

In February 2026 , the Ducker forecast indicated that total window shipments are expected to decrease 2.5% in calendar-year 2026.

In April 2026 , the NAHB forecasted calendar-year housing starts to be approximately 1.3 million in calendar-years 2026 and 2027 and 1.4 million in calendar-year 2028.

In May 2026 , the Ducker forecast indicated that total window shipments are expected to decrease 3.1% in calendar-year 2026 and 1.3% in calendar-year 2027.

Our business is seasonal, as inclement weather during the winter months tends to slow construction and installation activity for exterior building products.

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Although the U.S.

government has been less aggressively pursuing higher energy efficiency standards in recent years, other countries have implemented higher energy efficiency standards which should bode well for our fenestration-related business in these markets, particularly our warm-edge spacer products, window and door seals and tilt ‘n’ turn micro-ventilation products.

government has been less aggressively pursuing higher energy efficiency standards in recent years, other countries have implemented higher energy efficiency standards which should bode well for our fenestration-related businesses in these markets, particularly our warm-edge spacer products, window and door seals and tilt ‘n’ turn micro-ventilation products.

Several commodities in our business are subject to pricing fluctuations, including polyvinyl resin (PVC), titanium dioxide (TiO2), petroleum products, stainless steel, zinc, aluminum and wood.

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Results of Operations

Three Months Ended January 31, 2026 Compared to Three Months Ended January 31, 2025

This table sets forth our condensed consolidated results of operations for the three-month periods ended January 31, 2026 and 2025.

Three Months Ended January 31,

Three Months Ended April 30, 2026 Compared to Three Months Ended April 30, 2025

This table sets forth our condensed consolidated results of operations for the three-month periods ended April 30, 2026 and 2025.

Three Months Ended April 30,

2026 2025 Change $ % Variance

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Depreciation and amortization 24,650 19,192 5,458 28%

Operating income (loss)

2,852 (6,978) 9,830 (141)%

Operating income 18,710 40,921 (22,211) (54)%

Interest expense (12,042) (13,940) 1,898 (14)%

Other, net 448 (159) 607 (382)%

Income tax (expense) benefit

(173) 5,050 (5,223) (103)%

$ (4,071) $ (14,885) $ 10,814 (73)%

Income tax expense (3,766) (6,307) 2,541 (40)%

Net income $ 3,350 $ 20,515 $ (17,165) (84)%

Our period-over-period results by reportable segment follow.

1 unchanged sentence

Hardware Solutions

Three Months Ended January 31,

Three Months Ended April 30,

2026 2025 $ Change % Variance

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Depreciation and amortization 11,693 10,361 1,332 13%

Operating loss

$ (7,339) $ (16,991) $ 9,652 (57)%

Operating loss margin

Net sales increased $4.4 million, or 2%, for the three months ended January 31, 2026 compared to the same period in 2025.

The increase was primarily attributable to $5.8 million of favorable tariff-related pricing adjustments and a $4.3 million favorable impact from foreign currency translation, partially offset by a $6.7 million decline in volumes due to softer market demand.

Operating (loss) income $ (6,829) $ 13,886 $ (20,715) (149)%

Operating (loss) income margin (3) % 7 %

N et sales increased $0.1 million for the three months ended April 30, 2026 compared to the same period in 2025.

Net sales were relatively flat, as $4.8 million favorable tariff-related pricing adjustments and a $3.3 million favorable impact from foreign currency rate changes were largely offset by a $8.6 million decline in volume due to softer market demand.

Cost of Sales.

Cost of sales decreased $0.1 million, for the three months ended January 31, 2026 compared to the same period in 2025.

Cost of sales decreased primarily due to lower volumes, largely offset by the impact of pricing actions, tariff recoveries, and foreign currency movements.

Selling, General and Administr ative.

S elling, general and administrative expenses increased $0.8 million, or 2%, for the three months ended January 31, 2026 compared to the same period in 2025.

The increase is primarily due to increases in labor costs and other miscellaneous selling and general administrative costs year-over-year.

Cost of sales increased $16.9 million, for the three months ended April 30, 2026 compared to the same period in 2025.

The increase was primarily due to higher tariff-related costs, unfavorable foreign currency movements, other cost inflation and increases in transportation costs, partially offset by the impact of lower sales volumes mentioned above.

Selling, General and Administrative.

S elling, general and administrative expenses increased $3.5 million, or 11%, for the three months ended April 30, 2026 compared to the same period in 2025.

The increase is primarily due to increases in stock-based compensation and medical costs, partially offset by a decrease in miscellaneous selling and general administrative costs year-over-year.

Restructuring Charges .

Restructuring charges decreased 6.1 million , or 100% , for the three months ended January 31, 2026 compared to the same period in 2025.

Restructuring charges decreased $0.9 million , or 100% , for the three months ended April 30, 2026 compared to the same period in 2025.

This decrease is primarily attributable to the restructuring of our operating segments in fiscal 2025.

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Extruded Solutions

Three Months Ended January 31,

Three Months Ended April 30,

2026 2025 $ Change % Variance

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Operating income margin

Net sales increased $0.2 million, for the three months ended January 31, 2026 compared to the same period in 2025 primarily due to a $3.3 million of favorable foreign currency rate change, a $0.4 million increase in price and raw material indexes, partially offset by a $3.5 million decrease in volumes mainly due to softer market demand.

Net sales increased $1.0 million for the three months ended April 30, 2026 compared to the same period in 2025 primarily due to a $4.7 million favorable impact from foreign currency rate changes and a $1.5 million increase in price and raw material indexes, partially offset by a $5.2 million decrease in volumes mainly due to softer market demand.

Cost of Sales .

Cost of sales remained flat for the three months ended January 31, 2026 compared to the same period in 2025.

Cost of sales increased $1.2 million for the three months ended April 30, 2026 compared to the same period in 2025.

The increase was primarily due to unfavorable foreign currency rate movements and higher raw material costs, partially offset by the impact of the lower sales volumes mentioned above.

Selling, General and Administrative .

Selling, general and administrative expense increased $2.6 million, or 14%, for the three months ended January 31, 2026 compared to the same period in 2025.

The increase is primarily due to increases in labor costs and miscellaneous selling and general administrative costs year-over-year.

Selling, general and administrative expense remained flat for the three months ended April 30, 2026 compared to the same period in 2025.

Custom Solutions

Three Months Ended January 31,

Three Months Ended April 30,

2026 2025 $ Change Variance %

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Depreciation and amortization 5,404 5,437 (33) (1)%

Operating income $ 5,603 $ 7,518 $ (1,915) (25)%

Operating income margin 5 % 8 %

Net sales increased $6.4 million, or 7%, for the three months ended April 30, 2026 compared to the same period in 2025.

The increase was primarily driven by a $4.5 million favorable impact from pricing and raw material index adjustments, a $1.4 million increase in volume, a $0.2 million favorable impact from foreign currency rate changes, and $0.3 million of favorable tariff-related pricing adjustments.

Cost of Sales .

Cost of s ales increased $5.3 million, or 7%, for the three months ended April 30, 2026 compared to the same period in 2025.

Cost of sales increased primarily due to higher volumes and foreign currency movements during the period.

Selling, General and Administrative .

S elling, general and administrative expenses increased $3.0 million, or 28%, for the three months ended April 30, 2026 compared to the same period in 2025.

The increase is primarily due to increases in labor costs and other miscellaneous selling and general administrative costs year-over-year.

Unallocated Corporate & Other

Three Months Ended April 30,

2026 2025 $ Change Variance %

(Dollars in thousands)

Net sales $ (9,514) $ (11,931) $ 2,417 (20)%

Cost of sales (excluding depreciation and amortization) (9,715) (9,776) 61 (1)%

Selling, general and administrative 3,116 5,551 (2,435) (44)%

Restructuring charges — 40 (40) (100)%

Depreciation and amortization 212 (4,043) 4,255 (105)%

Operating loss $ (3,127) $ (3,703) $ 576 (16)%

$ (654) $ (398) $ (256) 64%

Net sales for Unallocated Corporate & Other represents the elimination of inter-segment sales for the three months ended April 30, 2026 and 2025.

Cost of Sales .

Cost of sales for Corporate & Other consists of the elimination of inter-segment sales, profit in inventory, and other costs.

Selling, General and Administrative .

Sellin g, general and administrative expenses decreased $2.4 million, or 44%, for the three months ended April 30, 2026 compared to the same period in 2025.

The decrease was primarily attributable to reorganization costs incurred in the prior year period as well as higher cost allocations to the reportable segments in 2026, including for stock-based compensation and medical costs.

Restructuring Charges.

Restructuring charges decreased 100% for the three months ended April 30, 2026 compared to the same period in 2025.

This decrease is primarily attributable to the restructuring of our operating segments in fiscal 2025.

For additional discussion of the restructuring, see the “restructuring” section of Note 1, “Nature of Operations, Basis of Presentation and Significant Accounting Policies”.

Changes Related to Non-Operating Items:

Interest Expense .

Inter est expense decreased $1.9 million for the three months ended April 30, 2026 compared to the same period in 2025 primarily as a result of a decrease in borrowings outstanding during the three months ended April 30, 2026 as compared to the prior year period.

Income Taxes .

We recorded an income tax expense of $3.8 million on pre-tax income of $7.1 million for the three months ended April 30, 2026, an effective rate of 52.9%, and income tax expense of $6.3 million on pre-tax income of $26.8 million for the three months ended April 30, 2025, an effective rate of 23.5%.

The increase in the effective tax rate compared to the prior year was primarily driven by $2.1 million of discrete tax items including equity-based compensation award activity, state deferred tax remeasurement from legal entity reorganization activities, and changes in reserves for uncertain tax positions, which had a disproportionate impact on the rate given the lower pre-tax earnings in the current period.

Six Months Ended April 30, 2026 Compared to Six Months Ended April 30, 2025

Six Months Ended April 30,

2026 2025 Change $ % Variance

(Dollars in thousands)

Net sales $ 871,456 $ 852,522 $ 18,934 2%

Cost of sales (excluding depreciation and amortization) 655,137 628,824 26,313 4%

Selling, general and administrative 145,858 136,983 8,875 6%

Restructuring charges — 8,840 (8,840) (100)%

Depreciation and amortization 48,899 43,932 4,967 11%

Operating income 21,562 33,943 (12,381) (36)%

Interest expense (24,409) (28,126) 3,717 (13)%

Other, net 6,065 1,070 4,995 467%

Income tax expense (3,939) (1,257) (2,682) 213%

Net (loss) income $ (721) $ 5,630 $ (6,351) (113)%

Our period-over-period results by reportable segment follow.

Changes Related to Operating Income by Reportable Segment:

Hardware Solutions

Six Months Ended April 30,

2026 2025 $ Change % Variance

(Dollars in thousands)

Net sales $ 392,131 $ 387,675 $ 4,456 1%

Cost of sales (excluding depreciation and amortization) 313,116 296,318 16,798 6%

Selling, general and administrative 69,943 65,616 4,327 7%

Restructuring charges — 7,015 (7,015) (100)%

Depreciation and amortization 23,240 21,831 1,409 6%

Operating loss $ (14,168) $ (3,105) $ (11,063) 356%

Operating loss margin (4) % (1) %

Net sales increased $4.1 million, or 5%, for the three months ended January 31, 2026 compared to the same period in 2025.

The increase was primarily driven by a $2.0 million increase in volumes, a $1.7 million favorable impact from pricing and raw material index adjustments, and $0.2 million of favorable tariff-related pricing adjustments.

Net sales increased $4.5 million, or 1%, for the six months ended April 30, 2026 compared to the same period in 2025, which was primarily attributable to $10.6 million favorable tariff-related pricing adjustments, a $1.6 million favorable impact from price and raw material index adjustments, and an $6.7 million favorable impact from foreign currency rate changes, partially offset by a $13.4 million decline in volume due to softer market demand.

Cost of Sales.

Cost of sales increased $3.1 million, or 5%, for the three months ended January 31, 2026 compared to the same period in 2025.

Cost of sales increased primarily due to higher volumes, pricing and raw material index impacts, and foreign currency movements during the period.

C ost of sales increased $16.8 million, or 6%, for the six months ended April 30, 2026 as compared to the same period in 2025.

Selling, General and Administrative.

S elling, general and administrative expenses increased $1.6 million, or 13%, for the three months ended January 31, 2026 compared to the same period in 2025.

The increase is primarily due to increases in labor costs, information technology costs, and other miscellaneous selling and general administrative costs year-over-year.

S elling, general and administrative expenses increased $4.3 million, or 7%, for the six months ended April 30, 2026 as compared to the same period in 2025.

The increase is primarily due to increases in labor costs, stock-based compensation, and medical costs year-over-year.

Restructuring Charges .

Restructuring charges decreased $7.0 million, or 100% , for the six months ended April 30, 2026 compared to the same period in 2025.

This decrease is primarily attributable to the restructuring of our operating segments in fiscal 2025.

For additional discussion of the restructuring, see the “restructuring” section of Note 1, “Nature of Operations, Basis of Presentation and Significant Accounting Policies”.

Extruded Solutions

Six Months Ended April 30,

2026 2025 $ Change Variance %

(Dollars in thousands)

Net sales $ 304,749 $ 303,597 $ 1,152 —%

Cost of sales (excluding depreciation and amortization) 210,590 209,317 1,273 1%

Selling, general and administrative 42,805 40,181 2,624 7%

Depreciation and amortization 14,680 15,077 (397) (3)%

Operating income $ 36,674 $ 39,022 $ (2,348) (6)%

Operating income margin 12 % 13 %

Net sales remained flat for the six months ended April 30, 2026 compared to the same period in 2025, increasing $1.2 million.

The slight increase was primarily due to a $8.4 million favorable impact from foreign currency rate changes and a $1.9 million favorable impact from price and raw material index adjustments, partially offset by a $8.1 million decline in volume due to softer market demand.

Cost of Sales.

Cost of sales increased $1.3 million, or 1%, for the six months ended April 30, 2026 compared to the same period in 2025.

The increase was primarily due to unfavorable foreign currency rate changes and raw material cost impacts, partially offset by the impact of lower volumes mentioned above.

Selling, General and Administrative.

Selling, general and administrative expense increased $2.6 million, or 7%, for the six months ended April 30, 2026 compared to the same period in 2025.

The increase is primarily due to increases in labor costs and other miscellaneous selling and general administrative costs year-over-year.

Custom Solutions

Six Months Ended April 30,

2026 2025 $ Change Variance %

(Dollars in thousands)

Net sales $ 193,055 $ 182,545 $ 10,510 6%

Cost of sales (excluding depreciation and amortization) 150,441 142,000 8,441 6%

Selling, general and administrative 27,039 22,448 4,591 20%

Depreciation and amortization 10,626 10,977 (351) (3)%

Operating income $ 4,949 $ 7,120 $ (2,171) (30)%

Operating income margin 3 % 4 %

Net sales increased $10.5 million, or 6%, for the six months ended April 30, 2026 compared to the same period in 2025.

The increase was primarily due to a $6.2 million favorable impact from price and raw material index adjustments, a $3.8 million increase in volume, a $0.3 million favorable impact from foreign currency rate changes, and $0.5 million favorable tariff-related pricing adjustments.

Cost of Sales .

Cost of sales increased $8.4 million, or 6%, for the six months ended April 30, 2026 compared with the same period in 2025.

Cost of sales increased primarily due to higher sales volumes and unfavorable foreign currency movements.

Selling, General and Administrative .

S elling, general and administrative expense increased $4.6 million, or 20%, for the six months ended April 30, 2026 compared to the same period in 2025.

The increase is primarily due to increases in labor costs and other miscellaneous selling and general administrative costs year-over-year.

Unallocated Corporate & Other

Three Months Ended January 31,

Six Months Ended April 30,

2026 2025 $ Change Variance %

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Operating loss $ (5,893) $ (9,094) $ 3,201 (35)%

Net sales for Unallocated Corporate & Other represents the elimination of inter-segment sales for the three months ended January 31, 2026 and 2025.

Net sales for Unallocated Corporate & Other represents the elimination of inter-segment sales for the six months ended April 30, 2026 and 2025.

Cost of Sales .

Cost of sales for Corporate & Other consists of the elimination of inter-segment sales, profit in inventory, and other costs.

Cost of sales for Unallocated Corporate & Other consists of the elimination of inter-segment sales, profit in inventory, and other costs.

Selling, General and Administrative .

Selling, general and administrative expenses decreased $0.2 million, or 7%, for the three months ended January 31, 2026 compared to the same period in 2025.

This decrease is primarily attributable to a decrease in reorganization costs, which occurred in 2025, partially offset by higher compensation expense, including the valuations of our stock-based compensation awards during the three months ended January 31, 2026 as compared to the prior year period.

Selling, general and administrative expenses decreased $2.7 million, or 31%, for the six months ended April 30, 2026 compared to the same period in 2025.

This decrease is primarily attributable to a decrease in reorganization costs incurred in the prior year period as well as higher cost allocations to the reportable segments in 2026, including for stock-based compensation and medical costs.

Restructuring Charges .

Restructuring charges decreased $1.8 million, or 100%, for the three months ended January 31, 2026 compared to the same period in 2025.

Restructuring charges decreased $1.8 million , or 100% , for the six months ended April 30, 2026 compared to the same period in 2025.

This decrease is primarily attributable to the restructuring of our operating segments in fiscal 2025.

1 unchanged sentence

Changes related to Non-Operating Items:

Interest Exp ense .

Interest expense decreased $1.8 million for the three months ended January 31, 2026 compared to the same period in 2025 primarily as a result of a decrease in borrowings outstanding during the three months ended January 31, 2026 as compared to the prior year period.

Interest Expense .

Interest expe nse decreased $3.7 million for the six months ended April 30, 2026 compared to the same period in 2025 primarily as a result of lower borrowings outstanding during the six months ended April 30, 2026 as compared to the prior year period.

Income Taxes .

We recorded an income tax expense of $0.2 million on pre-tax loss of $3.9 million for the three months ended January 31, 2026, an effective rate of (4.4)%, and income tax benefit of $5.1 million on pre-tax loss of $19.9 million for the three months ended January 31, 2025, an effective rate of 25.3%.

The decrease in the effective tax rate compared to the prior year was primarily driven by a lower pre-tax loss in the current year, partially offset by a $1.1 million of discrete tax expense, primarily related to equity-based compensation award activity and state deferred tax remeasurement from legal entity reorganization activities, which reduced the expected tax benefit for the period.

We recorded income tax expense of $3.9 million on pre-tax income of $3.2 million for the six months ended April 30, 2026, an effective rate of 122.4%, and income tax expense of $1.3 million on a pre-tax income of $6.9 million for the six months ended April 30, 2025, an effective rate of 18.3%.

The increase in the effective tax rate year-over-year was primarily driven by $3.2 million of discrete items including equity-based compensation award activity, state deferred tax remeasurement from legal entity reorganization activities, and changes in reserves for uncertain tax positions, which had a disproportionate impact on the rate given the lower pre-tax earnings in the current period.

Liquidity and Capital Resources

Historic ally, our principal sources of funds have been cash on hand, cash flow from operations, and borrowings under our credit facilities.

As of January 31, 2026, we had $62.3 million of cash and equivalents, $662.0 million outstanding under the Facilities, $6.2 million of outstanding letters of credit, and $55.5 million outstanding under finance leases and other debt.

Of the $55.5 million outstanding under finance leases an d other debt, $49.3 million relates to real estate leases.

We had $269.3 million avail able for use under the revolving credit facility at January 31, 2026.

As of April 30, 2026, we had $63.7 million of cash and equivalents, $660.8 million outstanding under the Facilities, $5.6 million of outstanding letters of credit, and $54.3 million outstanding under finance leases and other debt.

Of the $54.3 million outstanding under finance leases an d o ther debt, $48.6 million relates to real estate leases.

We had $264.9 million avail able for use under the revolving credit facility at April 30, 2026.

On August 1, 2024, the Amended Credit Agreement increased our borrowing capacity and established a $475 million revolving credit facility and a $500 million term loan A facility, each maturing on August 1, 2029.

As of January 31, 2026, we remained in compliance with all covenants under this agreement.

As of April 30, 2026, we remained in compliance with all covenants under this agreement.

Additional information regarding the Facilities is included in Note 5, “Debt”, to the condensed consolidated financial statements.

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Analysis of Cash Flow

The following table summarizes our cash flow results for the three months ended January 31, 2026 and 2025:

Three Months Ended

The following table summarizes our cash flow results for the six months ended April 30, 2026 and 2025:

Six Months Ended

(Dollars in thousands)

Cash used for operating activities $ (20,208) $ (12,510)

Cash (used for) provided by operating activities $ (1,286) $ 15,987

Cash used for investing activities $ (22,293) $ (26,168)

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Operating Activities .

Cash used for operating activities increased $7.7 million for the three months ended January 31, 2026 compared to the same period in 2025.

The increase in cash used was primarily driven by unfavorable changes in working capital, including a smaller decrease in accounts receivable compared to the prior year and higher inventory levels, partially offset by smaller decreases in accounts payable and accrued liabilities.

The impact of working capital changes was partially mitigated by a reduction in net loss.

Cash provided by operating activities decreased $17.3 million for the six months ended April 30, 2026 compared to the same period in 2025, resulting in cash used for operating activities of $1.3 million in 2026 compared to cash provided by operating activities of $16.0 million in 2025.

The decrease was primarily driven by lower net income and unfavorable changes in working capital, including a larger increase in accounts receivable and a larger decrease in current income taxes payable, partially offset by higher depreciation and amortization expense and smaller decreases in accounts payable and accrued liabilities.

Investing Activities.

Cash used for investing activities decreased $0.2 million for the three months ended January 31, 2026 compared to the same period in 2025, primarily due to lower capital expenditures, partially offset by lower proceeds from disposition of assets.

Cash used for investing activities decreased $3.9 million for the six months ended April 30, 2026 compared to the same period in 2025, primarily due to lower capital expenditures, partially offset by lower proceeds from disposition of assets.

Financing Activities.

Cash provided by financing activities increased $37.9 million for the three months ended January 31, 2026 compared to the same period in 2025.

The change in financing cash flows is primarily as a result of an increase in net borrowings of long-term debt and a decrease in the purchase of treasury shares during the three months ended January 31, 2026 compared to the prior year period.

Liquidity Requirements

Cash provided by financing activities increased $40.1 million for the six months ended April 30, 2026 compared to the same period in 2025, resulting in cash provided by financing activities of $9.8 million in 2026 compared to cash used for financing activities of $30.3 million in 2025.

The change in financing cash flows was primarily driven by the absence of treasury stock repurchases and higher net borrowings under our credit facilities compared to the prior year period.

Liquidity Requirem ents

Our strategy for deploying cash is to invest in organic growth opportunities, develop our infrastructure, and explore strategic acquisitions.

Other uses of cash include paying cash dividends to our shareholders and repurchasing our own stock.

During the three months ended January 31, 2026 and 2025, we repatriated $5.8 million and $11.5 million, respectively, of foreign earnings from our foreign locations.

We maintain cash balances in foreign countries which totaled $52.2 million as of January 31, 2026.

During the six months ended April 30, 2026 and 2025, we repatriated $16.8 million a nd $23.0 million, respectively, of foreign earnings from our foreign locations.

We maintain cash balances in foreign countries which totaled $50.3 million as of April 30, 2026.

Critical Accounting Policies and Estimates

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For a description of our critical accounting policies and estimates, see our Annual Report on Form 10-K for the fiscal year ended October 31, 2025.

Our critical accounting policies and estimates have not changed materially during the three months ended January 31, 2026.

Our critical accounting policies and estimates have not changed materially during the six months ended April 30, 2026.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis