What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-09-04 compared with 2026-06-05 · 114 added, 98 removed, 208 unchanged (50% 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 April 30, 2026, and for the three and six months ended April 30, 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 July 31, 2026, and for the three and nine months ended July 31, 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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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.

We are also monitoring ongoing geopolitical tensions and conflicts in various regions of the world, including the situations in Ukraine and the Middle East.

These developments have contributed to volatility in crude oil prices, ocean and domestic freight costs and certain commodity costs and have extended shipping lead times on certain routes to and from the Middle East and Asia.

They may also contribute to broader volatility in global markets, supply chains 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.

1 unchanged sentence

Market Overview and Outlook

We believe the primary drivers of our operating results continue to be North American residential remodeling and replacement (R&R) and new home construction activity.

We believe the primary drivers of our operating results continue to be North American R&R and new home construction activity.

and Continental Europe, our operating results are primarily influenced by repair, maintenance and improvement (RMI) and residential renovation activity, as well as new construction activity.

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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 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.

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

In August 2026 , the Ducker forecast indicated that total window shipments are expected to decrease 4.2% in calendar-year 2026 and 1.6% 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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Results of Operations

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,

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

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

Three Months Ended July 31,

2026 2025 Change $ % Variance

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Depreciation and amortization 24,138 33,882 (9,744) (29)%

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

Asset impairment charges — 302,284 (302,284) (100)%

Operating income (loss) 46,490 (270,835) 317,325 (117)%

Interest expense (11,978) (14,218) 2,240 (16)%

Other, net (93) 855 (948) (111)%

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

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

Income tax (expense) benefit (7,915) 8,191 (16,106) (197)%

Net income (loss) $ 26,504 $ (276,007) $ 302,511 (110)%

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

1 unchanged sentence

Hardware Solutions

Three Months Ended April 30,

Three Months Ended July 31,

2026 2025 $ Change % Variance

5 unchanged sentences

Depreciation and amortization 11,386 16,987 (5,601) (33)%

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.

Asset impairment charges — 163,198 (163,198) (100)%

Operating income (loss) $ 14,319 $ (157,445) $ 171,764 (109)%

Operating income (loss) margin 6 % (69) %

N et sales decreased $6.2 million for the three months ended July 31, 2026 compared to the same period in 2025.

The decrease was primarily due to a net unfavorable impact from tariff-related activity, consisting of approximately $9.1 million of tariff-related refunds, partially offset by $0.2 million of tariff-related amounts charged.

These impacts were partially offset by $3.1 million of favorable price, surcharge and raw material index adjustments.

Cost of Sales.

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.

Cost of sales decreased $8.2 million, for the three months ended July 31, 2026 compared to the same period in 2025.

The decrease was primarily due to lower sales volume and favorable tariff-related activity, including tariff-related refunds, partially offset by higher raw material and transportation cost and increased warranty expenses.

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.

S elling, general and administrative expenses increased $0.2 million, or 1%, for the three months ended July 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.

Restructuring Charges .

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.

Restructuring charges decreased $1.1 million , or 100% , for the three months ended July 31, 2026 compared to the same period in 2025.

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

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

Three Months Ended April 30,

Three Months Ended July 31,

2026 2025 $ Change % Variance

3 unchanged sentences

Selling, general and administrative 22,279 20,740 1,539 7%

Restructuring charges — 34 (34) (100)%

Depreciation and amortization 7,213 6,989 224 3.2%

Operating income

$ 23,063 $ 23,220 $ (157) (1)%

Operating income margin

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.

Asset impairment charges — 54,934 (54,934) (100)%

Operating income (loss) $ 28,410 $ (24,867) $ 53,277 (214)%

Operating income (loss) margin 16 % (14) %

Net sales increased $4.9 million for the three months ended July 31, 2026 compared to the same period in 2025, primarily due to $6.0 million of favorable price, surcharge and raw material index adjustments, partially offset by $1.0 million from lower volume and $0.1 million of unfavorable foreign currency movements.

Cost of Sales .

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.

Cost of sales increased $4.8 million for the three months ended July 31, 2026 compared to the same period in 2025.

The increase was primarily due to higher raw material costs, partially offset by lower sales volumes.

Selling, General and Administrative .

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

Selling, general and administrative expense increased $1.5 million, or 7%, for the three months ended July 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.

Custom Solutions

Three Months Ended April 30,

Three Months Ended July 31,

2026 2025 $ Change % Variance

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Selling, general and administrative 13,143 11,708 1,435 12%

Restructuring charges — 26 (26) (100)%

Depreciation and amortization 5,330 4,716 614 13%

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.

Asset impairment charges — 84,152 (84,152) (100)%

Operating income (loss) $ 6,673 $ (76,093) $ 82,766 (109)%

Operating income (loss) margin 6 % (74) %

Net sales increased $8.7 million, or 9%, for the three months ended July 31, 2026 compared to the same period in 2025.

The increase was primarily driven by $5.7 million of favorable price, surcharge and raw material index adjustments and $3.0 million from higher volume.

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.

Cost of s ales increased $8.1 million, or 10%, for the three months ended July 31, 2026 compared to the same period in 2025.

Cost of sales increased primarily due to higher sales volumes and higher costs associated with the increased level of sales.

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.

S elling, general and administrative expenses increased $1.4 million, or 12%, for the three months ended July 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.

Unallocated Corporate & Other

Three Months Ended April 30,

Three Months Ended July 31,

2026 2025 $ Change % Variance

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Operating loss $ (2,912) $ (12,430) $ 9,518 (77)%

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

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

Cost of Sales .

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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.

Sellin g, general and administrative expenses decreased $3.6 million, or 62%, for the three months ended July 31, 2026 compared to the same peri od in 2025.

The decrease was primarily attributable to reorganization costs incurred in the prior-year period.

Restructuring Charges.

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

Restructuring charges decreased 100% for the three months ended July 31, 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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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.

Inter est expe nse decreased $2.2 million for the three months ended July 31, 2026 compared to the same period in 2025 primarily as a result of a decrease in borrowings outstanding during the three months ended July 31, 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,

We recorded an income tax expense of $7.9 million on pre-tax income of $34.4 million for the three months ended July 31, 2026, an effective rate of 23.0%, and income tax benefit of $8.2 million on pre-tax loss of $284.2 million for the three months ended July 31, 2025, an effective rate of 2.9%.

The increase in the effective tax rate compared to the prior year was primarily driven by the absence of the impairment which occurred in the prior year.

Nine Months Ended July 31, 2026 Compared to Nine Months Ended July 31, 2025

Nine Months Ended July 31,

2026 2025 Change $ % Variance

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Depreciation and amortization 73,037 77,814 (4,777) (6)%

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

Asset impairment charges — 302,284 (302,284) (100)%

Operating income (loss) 68,052 (236,892) 304,944 (129)%

Interest expense (36,387) (42,344) 5,957 (14)%

Other, net 5,972 1,925 4,047 210%

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

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

Income tax (expense) benefit (11,854) 6,934 (18,788) (271)%

Net income (loss) $ 25,783 $ (270,377) $ 296,160 (110)%

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

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Hardware Solutions

Six Months Ended April 30,

Nine Months Ended July 31,

2026 2025 $ Change % Variance

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Depreciation and amortization 34,626 38,818 (4,192) (11)%

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

Operating loss margin (4) % (1) %

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.

Asset impairment charges — 163,198 (163,198) (100)%

Operating income (loss) $ 151 $ (160,550) $ 160,701 (100)%

Operating income (loss) margin — % (26) %

Net sales decreased $1.7 million, for the nine months en ded July 31, 2026 compared to the same period in 2025, primarily due to a $10.7 million unfavorable impact from lower volume and a $1.7 million net unfavorable impact from tariff-related activity, consisting of $9.1 million of tariff-related refunds, partially offset by $7.4 million of tariff-related amounts charged.

These impacts were partially offset by $6.5 million of favorable foreign currency movements and $4.2 million of favorable price, surcharge and raw material index adjustments.

Cost of Sales.

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.

C ost of sales increased $8.6 million, or 2%, for the nine months ended July 31, 2026 as compared to the same period in 2025.

The increase was primarily due to tariff-related impacts, foreign currency movements and higher transportation and raw material costs, partially offset by tariff-related refunds and lower costs associated with reduced sales volumes.

Selling, General and Administrative.

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.

S elling, general and administrative expenses increased $4.5 million, or 5%, for the nine months ended July 31, 2026 as compared to the same peri od in 2025.

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

Restructuring charges decreased $8.2 million, or 100%, for the nine month s ended July 31, 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

Six Months Ended April 30,

Nine Months Ended July 31,

2026 2025 $ Change % Variance

3 unchanged sentences

Selling, general and administrative 65,084 60,921 4,163 7%

Restructuring charges — 34 (34) (100)%

Depreciation and amortization 21,893 22,066 (173) (1)%

Asset impairment charges — 54,934 (54,934) (100)%

Operating income $ 65,084 $ 14,155 $ 50,929 360%

Operating income margin 13 % 3 %

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.

Net sales increased $6.0 million, or 1%, for the nine months ended July 31, 2026 compared to the same period in 2025, primarily due to $8.3 million of favorable foreign currency movements and $8.3 million of favorable price, surcharge and raw material index adjustments, partially offset by $10.6 million from lower volume.

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.

Cost of sales increased $6.1 million, or 2%, for the nine months ended July 31, 2026 compared to the same period in 2025.

The increase was primarily due to foreign currency translation movements and higher raw material costs, partially offset by lower costs associated with reduced sales volumes.

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.

Selling, general and administrative expense increased $4.2 million, or 7%, for the nine months ended July 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.

Custom Solutions

Six Months Ended April 30,

Nine Months Ended July 31,

2026 2025 $ Change % Variance

3 unchanged sentences

Selling, general and administrative 40,182 34,156 6,026 18%

Restructuring charges — 26 (26) (100)%

Depreciation and amortization 15,956 15,693 263 2%

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.

Asset impairment charges — 84,152 (84,152) (100)%

Operating income (loss) $ 11,622 $ (68,973) $ 80,595 (117)%

Operating income (loss) margin 4 % (24) %

Net sales increased $19.3 million, or 7%, for the nine months ended July 31, 2026 compared to the same period in 2025, primarily due to $12.7 million of favorable price, surcharge and raw material index adjustments, $5.5 million from higher volume, a $0.7 million favorable tariff-related impact and $0.3 million of favorable foreign currency movements.

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.

Cost of sales increased $16.5 million, or 8%, for the nine months ended July 31, 2026 compared with the same period in 2025.

Cost of sales increased primarily due to higher sales volumes and higher costs associated with the increased level of sales, as well as tariff-related and foreign currency impacts.

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.

S elling, general and administrative expense increased $6.0 million, or 18%, for the nine months ended July 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.

Unallocated Corporate & Other

Six Months Ended April 30,

Nine Months Ended July 31,

2026 2025 $ Change % Variance

6 unchanged sentences

Operating loss $ (8,805) $ (21,524) $ 12,719 (59)%

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

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

Cost of Sales .

1 unchanged sentence

Selling, General and Administrative .

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.

Selling, general and administrative expenses decreased $6.3 million, or 43%, for the nine months ended July 31, 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.

Restructuring Charges .

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

Restructuring charges decreased $2.0 million , or 100% , for the nine months ended July 31, 2026 compared to the same period in 2025.

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

2 unchanged sentences

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.

Intere st expense decreased $6.0 million for the nine months ended July 31, 2026 compared to the same period in 2025 primarily as a result of lower borrowings outstanding during the nine months ended July 31, 2026 as compared to the prior year period.

Income Taxes .

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.

We recorded income tax expense of $11.9 million on pre-tax income of $37.6 million for the nine months ended July 31, 2026, an effective rate of 31.5%, and income tax benefit of $6.9 million on a pre-tax loss of $277.3 million for the nine months ended July 31, 2025, an effective rate of 2.5%.

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, changes in reserves for uncertain tax positions, as well as the absence of the impairment which occurred in the prior year.

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 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.

As of July 31, 2026, we had $62.1 million of cash and equivalents, $618.5 million outstanding under the Facilities, $5.5 million of outstanding letters of credit, and $53.7 million outstanding under finance leases and other debt.

Of the $53.7 million outstanding under finance leases and other debt, $47.9 million relates to real estate leases.

We had $301.0 million avail able for use under the revolving credit facility at July 31, 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 April 30, 2026, we remained in compliance with all covenants under this agreement.

As of July 31, 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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In addition, we are subject to commitment fees for the unused portion of the Revolving Credit Facility.

During the third quarter of fiscal 2026, we entered into a pay-fixed, receive-floating interest rate swap agreement to manage the variability in cash flows associated with interest payments on $175.0 million of our outstanding variable-rate borrowings.

The interest rate swap became effective on July 1, 2026 and matures on August 1, 2029.

We expect to repatriate excess cash moving forward and use the funds to retire debt or meet current working capital needs.

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Analysis of Cash Flow

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

Six Months Ended

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

Nine Months Ended

(Dollars in thousands)

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

Cash provided by operating activities $ 57,268 $ 76,643

Cash used for investing activities $ (33,004) $ (40,635)

Cash provided by (used for) financing activities $ 9,765 $ (30,320)

Cash used for financing activities $ (39,393) $ (87,379)

Operating Activities .

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.

Cash provided by operating activities decreased $19.4 million for the nine months ended July 31, 2026 compared to the same period in 2025, to $57.3 million in 2026 from $76.6 million.

The decrease in operating cash flow was primarily due to higher inventory, accounts receivable and income taxes.

Investing Activities.

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.

Cash used for investing activities decreased $7.6 million for the nine months ended July 31, 2026 compared to the same period in 2025, prim arily due to lower capital expenditures, partially offset by lower proceeds from disposition of assets.

Financing Activities.

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.

Cash used for financing activities decreased $48.0 million for the nine months ended July 31, 2026 compared to the same period in 2025 .

The decrease was primarily driven by lower treasury stock repurchases and lower net repayments under our credit facilities compared to the prior-year period.

Liquidity Requirem ents

1 unchanged sentence

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

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.

During the nine months ended July 31, 2026 and 2025, we repatriated $40.3 million and $ 42.4 million, respectively, of foreign earnings from our foreign locations.

We maintain cash balances in foreign countries which totaled $48.4 million as of July 31, 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 six months ended April 30, 2026.

Our critical accounting policies and estimates have not changed materially during the nine months ended July 31, 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