What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-24 compared with 2025-02-25 · 98 added, 84 removed, 414 unchanged (31% of the section changed)

27 unchanged sentences

For the year ended December 31, 2025, the Flow, Water Solutions and Pool reportable segments represented approximately 37%, 25% and 38% of total consolidated net sales, respectively.

Effective January 1, 2026, we reorganized the composition of our Flow and Water Solutions reportable segments to move our residential and irrigation flow business from our Flow segment into our Water Solutions segment, reflecting how we expect to manage our business in 2026.

The Pool segment remains unchanged.

The discussions and figures below refer to the Company’s reportable segment composition as of and prior to December 31, 2025.

Additional information regarding this revised segmentation is found under the section titled “2026 Revised Segmentation” in ITEM 1 of this Form 10-K.

Although our jurisdiction of organization is Ireland, we manage our affairs so that we are centrally managed and controlled in the United Kingdom (the “U.K.”) and therefore have our tax residency in the U.K.

On December 2, 2024, as part of our Pool reportable segment, we completed the acquisition of G & F Manufacturing, LLC (“G & F Manufacturing”) for $116.0 million in cash, net of cash acquired and subject to customary adjustments.

The net purchase price is comprised of an upfront cash payment of $108.0 million, subject to customary adjustments, and the estimated fair value at the acquisition date of a contingent earn-out liability based upon the achievement of certain defined operating results in the two years following the acquisition.

On September 17, 2025, as part of our Flow reportable segment, we completed the acquisition of Hydra-Stop, LLC (“Hydra-Stop”) for $292.1 million in cash, net of cash acquired, and subject to customary adjustments.

Hydra-Stop manufactures specialty insertion valves, line stop fittings and installation equipment.

In December 2024, as part of our Pool reportable segment, we completed the acquisition of G & F Manufacturing, LLC (“G & F Manufacturing”) for $116.0 million in cash, net of cash acquired.

The net purchase price was comprised of an upfront cash payment of $108.0 million, and the estimated fair value at the acquisition date of a contingent earn-out liability based upon the achievement of certain defined operating results in the two years following the acquisition.

G & F Manufacturing manufactures and services pool heat pumps.

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• We have a Transformation Program designed to accelerate growth and drive margin expansion by driving operational excellence, reducing complexity and streamlining our processes.

During 2024, we made strategic progress on our Transformation Program initiatives with a focus on our four key themes of pricing excellence, strategic sourcing, operations excellence and organizational effectiveness.

We expect to continue to execute on our key Transformation Program initiatives to drive margin expansion and to continue to incur transformation costs in 2025 and beyond.

• In 2024, we began using 80/20 guiding principles to enable our Transformation Program.

This 80/20 analysis is expected to create value by focusing on key customers and products through quadrant-based strategies.

We expect the analysis to result in actions to improve operating performance by driving growth with our highest value customers, reducing lower margin sales and removing complexity in the future.

During 2025, we made strategic progress on our Transformation Program initiatives with a focus on our four key themes of pricing excellence, sourcing excellence, operations excellence and organizational effectiveness.

We expect to continue executing on our key Transformation Program initiatives to drive margin expansion and to incur transformation costs in 2026 and beyond.

• In 2025, we implemented 80/20 guiding principles to enable our Transformation Program.

As we continue to focus on 80/20 principles in 2026, we expect to create value by increasing focus on key customers and products through quadrant-based strategies.

This approach will enable improved operating performance by driving margin growth with our highest value customers, reducing lower margin sales and removing complexity in the future.

• In 2025, we executed certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business.

We expect these actions to continue into 2025 and to drive margin growth.

We expect these actions to continue into 2026 and to drive margin expansion.

• During 2025, we experienced inflationary cost increases for certain raw materials as well as logistics and transportation costs.

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In addition, the current U.S.

administration has recently implemented tariffs and has announced the possibility of implementing additional, or increasing current, tariffs;

these actions and any reactionary tariff adjustments by other countries may also contribute to inflationary cost increases.

As a result, we have taken pricing actions, which may continue going forward, and implemented transformation initiatives that we expect to improve productivity and offset cost increases.

We anticipate supply chain pressures and inflationary cost increases due to potential tariffs and pressure on global manufacturing to continue into 2025.

administration has implemented tariffs with an ongoing possibility of implementing additional, or increasing current, tariffs.

We expect these actions and additional reactionary tariff adjustments by other countries to continue to impact our business and contribute to inflationary cost increases.

As a result, we have taken actions to mitigate the impact of tariffs such as pricing increases, inventory pre-buys and supply chain optimization actions, which may continue going forward.

In addition, our Transformation Program initiatives are intended to improve productivity and offset cost increases.

We anticipate that supply chain pressures and inflationary cost increases resulting from these tariffs, as well as any related impacts on macroeconomic conditions and our business, will likely continue into 2026.

In addition, on February 20, 2026, the U.S.

Supreme Court struck down certain tariffs imposed under the International Emergency Powers Act.

It is unclear at this time what impact this decision will have on our future financial results, including whether we will be able to obtain refunds of amounts previously collected for such tariffs or the level of replacement tariffs the current U.S.

Administration imposes through other means.

• The Organization for Economic Co-operation and Development Pillar Two Model Rules (“Pillar Two”) for a global 15.0% minimum tax have been adopted by a number of jurisdictions in which we operate.

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• Focusing growth initiatives that accelerate our investments in digital, innovation, technology and sustainability;

• Continuing to implement our Transformation Program initiatives that will drive operational excellence, reduce complexity and improve our organizational structure, which includes the focus on 80/20 actions to drive profitable growth;

• Continuing to implement our Transformation Program initiatives to drive operational excellence, reduce complexity and improve our organizational structure, which includes a continued focus on 80/20 guiding principles to drive profitable growth;

• Building a high-performance growth culture and delivering on our commitments while living our Win Right values.

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% of net sales 20.5 % 19.7 % 18.0 % 0.8 pts 1.7 pts

Loss on sale of business

26.3 — — N.M.

Net interest expense 69.4 88.6 118.3 (21.7) % (25.1) %

Other (income) expense

Other expense (income)

5.3 (3.7) 2.0 N.M.

13 unchanged sentences

Total 2.3 % (0.5) %

The 0.5 percent decrease in consolidated net sales in 2024 from 2023 was primarily the result of:

• decreased sales volume in our residential flow and industrial solutions businesses within our Flow segment compared to the prior year;

• decreased sales volume in our Water Solutions segment compared to the prior year, in addition to a business exit in our residential business in 2024 and the completion of a large project in 2023 within our commercial business that did not recur in 2024;

• a product line exit in our Pool segment that occurred in 2024.

This decrease was partially offset by:

The 2.3 percent increase in consolidated net sales in 2025 from 2024 was primarily the result of:

• increased selling prices across all of our segments to mitigate inflationary cost increases;

• increased sales volume in our commercial flow business within our Flow segment compared to the prior year;

• favorable foreign currency effects compared to the prior year;

• increased sales volume within our Pool segment due to higher demand compared to the prior year.

• increased sales due to the acquisition of G & F Manufacturing completed in the fourth quarter of 2024.

This increase was partially offset by:

• decreased sales volume within our Flow and Water Solutions segments compared to the prior year.

The 1.3 percentage point increase in gross profit as a percentage of net sales in 2025 from 2024 was primarily the result of:

• increases in selling prices to mitigate impacts of inflationary costs;

• increased productivity mainly driven by transformation initiatives.

• increased selling prices across all our segments to mitigate inflationary cost increases;

• increased productivity across all our segments mainly driven by transformation initiatives.

This increase was partially offset by:

• inflationary cost increases related to labor costs and certain raw materials;

• inflationary cost increases, including higher tariffs, certain raw materials and labor costs;

• asset impairment and write-offs of $17.1 million recorded in 2025, compared to $11.3 million recorded in 2024.

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The 0.4 percentage point increase in SG&A expense as a percentage of net sales in 2025 from 2024 was driven by:

• transformation costs of $52.0 million in 2024, compared to $44.3 million in 2023;

• an impairment charge of $30.9 million related to the write-off of a definite-lived customer relationship intangible asset resulting from a business exit within our Water Solutions segment during the second quarter of 2025;

• an increase in our legal accrual adjustments and settlements of $11.6 million in 2025, compared to a reduction of $7.5 million in 2024.

This increase was partially offset by:

• restructuring costs of $31.3 million in 2025, compared to $34.4 million in 2024;

• transformation costs of $41.0 million in 2025, compared to $52.0 million in 2024;

• asset impairment charges of $1.1 million in 2025, compared to $6.3 million in 2024.

This increase was partially offset by:

• a reduction in our legal accrual of $7.5 million in 2024, compared to an increase in our legal accrual of $2.2 million in 2023.

Net interest expense

The 21.7 percent decrease in net interest expense in 2025 from 2024 was the result of:

• lower variable-rate debt compared to the prior year.

• lower debt levels throughout 2025 compared to 2024 as a result of the repayment of $250.0 million toward the remaining principal under the Term Loan Facility (as defined below) during the second quarter of 2025;

• lower interest rates in 2025 compared to 2024.

Provision for income taxes

The 1.1 percentage point increase in the effective tax rate in 2025 from 2024 was primarily due to:

• favorable impacts in the prior year that did not recur in the current year, including worthless stock deductions related to exiting certain businesses in our Water Solutions segment and increases in tax basis of assets located in foreign jurisdictions;

• withholding taxes primarily related to the repatriation of earnings in 2024 which did not occur in 2023;

• the unfavorable mix of global earnings.

• a decrease in the amount of favorable unrecognized tax benefits in 2025 compared to 2024.

This increase was partially offset by:

• the favorable impact of discrete items that occurred during 2024 primarily related to changes in uncertain tax positions.

• a decrease in withholding taxes in 2025 compared to 2024.

2024 Comparison with 2023

A discussion of changes in our consolidated results of operations, segment results of operations and liquidity and capital resources from the year ended December 31, 2023 to December 31, 2022 can be found in Part II, ITEM 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 20, 2024.

A discussion of changes in our consolidated results of operations and segment results of operations, as well as a year-over-year comparison of balances in our liquidity and capital resources for the years ended December 31, 2024 and December 31, 2023 can be found in Part II, ITEM 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 25, 2025.

However, such discussion is not incorporated by reference into, and does not constitute a part of, this Annual Report on Form 10-K.

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Core growth 0.8 (4.3)

Acquisition/Divestiture

Currency 1.1 —

Total 2.6 % (4.3) %

The 4.3 percent decrease in net sales for Flow in 2024 from 2023 was primarily the result of:

• decreased sales volume in our residential flow and industrial solutions businesses compared to the prior year.

The decrease was partially offset by:

The 2.6 percent increase in net sales for Flow in 2025 from 2024 was primarily the result of:

• increased selling prices to mitigate inflationary cost increases;

• increased sales volume in our commercial flow business compared to the prior year.

• favorable foreign currency effects compared to the prior year;

• increased sales due to the acquisition of Hydra-Stop completed in the third quarter of 2025.

The increase was partially offset by:

• decreased sales volume compared to the prior year.

Segment income

The components of the change in Flow segment income as a percentage of net sales from the prior period were as follows:

Volume/Price/Acquisition/Divestiture

3.2 pts 2.5 pts

Currency — (0.1)

Inflation (3.0) (2.3)

2 unchanged sentences

The 2.3 percentage point increase in segment income for Flow as a percentage of net sales in 2025 from 2024 was primarily the result of:

• increased productivity mainly driven by transformation initiatives;

• increased selling prices to mitigate impacts of inflation;

• increased productivity, mainly driven by transformation initiatives.

This increase was partially offset by:

• inflationary cost increases related to labor costs and certain raw materials.

• inflationary cost increases, including higher tariffs and certain raw materials.

Water Solutions

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The 6.1 percent decrease in net sales for Water Solutions in 2025 from 2024 was primarily the result of:

• decreased sales volume compared to the prior year, in addition to the completion of a large project in 2023 within our commercial business that did not recur in 2024;

• unfavorable foreign currency effects compared to the prior year;

• a business exit in our residential business that occurred in 2024.

• decreased sales volume compared to the prior year;

• business exits that occurred during the fourth quarter of 2024 and second quarter of 2025 in our residential and commercial businesses.

This decrease was partially offset by:

• increased selling prices to mitigate inflationary cost increases;

• favorable foreign currency effects compared to the prior year.

Segment income

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The 1.3 percentage point increase in segment income for Water Solutions as a percentage of net sales in 2025 from 2024 was primarily the result of:

• increased productivity mainly driven by transformation initiatives;

• increased selling prices to mitigate impacts of inflation;

• increased productivity, mainly driven by transformation initiatives.

This increase was partially offset by:

• inflationary cost increases related to labor costs and certain raw materials.

• inflationary cost increases, including higher tariffs and certain raw materials;

• unfavorable foreign currency effects compared to the prior year.

The net sales and segment income for Pool were as follows:

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The 8.5 percent increase in net sales for Pool in 2025 from 2024 was primarily the result of:

• increased sales volume due to higher demand compared to the prior year;

• increased selling prices to mitigate inflationary cost increases;

• increased sales due to the acquisition of G & F Manufacturing completed in the fourth quarter of 2024;

This increase was partially offset by:

• a product line exit that occurred in 2024.

• increased sales volume due to higher demand compared to the prior year.

Segment income

2 unchanged sentences

3.8 pts 2.2 pts

Currency 0.1 —

Inflation (3.9) (1.7)

3 unchanged sentences

• increased selling prices to mitigate impacts of inflation;

• increased productivity driven by transformation initiatives.

• increased productivity, mainly driven by transformation initiatives.

This increase was partially offset by:

• inflationary cost increases related to labor costs and certain raw materials.

• inflationary cost increases, including higher tariffs, certain raw materials and labor costs;

• productivity eases during the second half of 2025 due to investments in growth initiatives.

BACKLOG OF ORDERS BY SEGMENT

In millions 2024 2023 $ change % change

In millions 2025 2024 $ Change

$ 387.2 $ 352.3 $ 34.9 9.9 %

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Our backlog of orders is dependent upon when customers place orders and is not necessarily an indicator of our expected results for our 2026 net sales.

The decrease in our overall backlog from the prior year was primarily driven by our backlog trending down to more historical levels as a result of increased manufacturing capacity and improved lead times within each of our reportable segments as well as timing of delivery of orders associated with certain advance sale (“early buy”) programs within our Pool segment.

The decrease in our overall backlog from the prior year was primarily driven by timing of delivery of orders associated with certain advance sale (“early buy”) programs within our Pool segment.

LIQUIDITY AND CAPITAL RESOURCES

6 unchanged sentences

End-user demand for pool equipment in the Pool segment, water solution products in the Water Solutions segment, and residential water supply and agricultural products within the Flow segment follows warm weather trends, with seasonal highs ranging from April to September.

The magnitude of the sales spike has historically been partially mitigated by employing some advance sale “early buy” programs (generally including extended payment terms and/or additional discounts).

The magnitude of the sales spike has historically been partially mitigated by employing advance sale “early buy” programs (generally including extended payment terms and/or additional discounts).

Demand for residential and agricultural water systems is also impacted by weather patterns, particularly by temperature, heavy flooding and droughts.

On December 2, 2024, as part of our Pool reportable segment, we completed the acquisition of G & F Manufacturing for approximately $116.0 million in cash, net of cash acquired, including an upfront cash payment of $108.0 million.

We funded the purchase price for this acquisition with cash on hand.

Hydra-Stop manufactures specialty insertion valves, line stop fittings and installation equipment.

We funded the purchase price for this acquisition with cash on hand and borrowings on our revolving credit facility.

Summary of Cash Flows

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In 2025, net cash provided by operating activities of continuing operations primarily reflects net income from continuing operations, net of non-cash depreciation, definite-lived intangible amortization and asset impairment, of $816.3 million.

In 2023, net cash provided by operating activities of continuing operations primarily reflects net income from continuing operations, net of non-cash depreciation, definite-lived intangible amortization, asset impairment and deferred income taxes, of $653.1 million.

Additionally, we had a cash outflow of $61.3 million as a result of changes in net working capital, primarily due to an increase in accounts receivable and decreases in accounts payable and other current liability balances, partially offset by lower inventory compared to December 31, 2022.

Decreases in inventory and accounts payable were primarily related to supply chain efficiencies and improved lead times.

In 2024, net cash provided by operating activities of continuing operations primarily reflects net income from continuing operations, net of non-cash depreciation, definite-lived intangible amortization and asset impairment, of $757.8 million.

Investing activities

Net cash used for investing activities in 2025 primarily reflects net cash paid of $292.1 million for the Hydra-Stop acquisition, capital expenditures of $68.8 million, cash paid upon the settlement of net investment hedges of $28.9 million and the purchase of investments of $18.0 million.

Net cash used for investing activities in 2024 primarily reflects net cash paid of $108.0 million for the acquisition of G & F Manufacturing, capital expenditures of $74.4 million and cash paid upon the settlement of net investment hedges of $5.8 million.

Net cash used for investing activities in 2023 primarily reflects capital expenditures of $76.0 million and cash paid upon the settlement of net investment hedges of $18.5 million, partially offset by proceeds from the sale of property and equipment of $5.6 million.

Financing activities

In 2025, net cash used for financing activities primarily relates to the repayment of $250.0 million toward the remaining principal under the Term Loan Facility (as defined below), a $19.3 million repayment of senior notes, share repurchases of $225.0 million and dividend payments of $164.3 million, partially offset by net borrowings of revolving long-term debt of $268.2 million.

In 2024, net cash used for financing activities primarily relates to the repayment of $200.0 million of term loans under the Senior Credit Facility (as defined below), $162.5 million of principal payments on the Term Loan Facility (as defined below), dividend payments of $152.3 million and share repurchases of $150.0 million.

In 2023, net cash used for financing activities primarily relates to net repayments of revolving long-term debt of $320.0 million and dividend payments of $145.2 million.

Free Cash Flow

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are parties to a credit agreement (the “Senior Credit Facility”), with Pentair as guarantor and PFSA and Pentair, Inc.

as borrowers, providing for a $900.0 million senior unsecured revolving credit facility.

During 2024, PFSA repaid $200.0 million of term loans under the Senior Credit Facility.

The revolving credit facility has a maturity date of December 16, 2026.

as borrowers, which was amended and restated in May 2025, providing for a $900.0 million senior unsecured revolving credit facility.

The Senior Credit Facility has a maturity date of May 5, 2030.

Borrowings under the Senior Credit Facility bear interest at a rate equal to an alternate base rate, adjusted term secured overnight financing rate, adjusted euro interbank offered rate, adjusted daily simple secured overnight financing rate or central bank rate, plus, in each case, an applicable margin.

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In addition, Pentair and PFSA are parties to a senior unsecured term loan facility (the “Term Loan Facility”), with PFSA, as borrower, Pentair, as guarantor, providing for an aggregate principal amount of $1.0 billion.

The Term Loan Facility has a maturity date of July 28, 2027, with required quarterly installment payments of $6.3 million which began on the last day of the third quarter of 2023 and increased to $12.5 million on the last day of the third quarter of 2024.

The Term Loan Facility has a

maturity date of July 28, 2027, with required quarterly installment payments of $6.3 million which began on the last day of the third quarter of 2023 and increased to $12.5 million on the last day of the third quarter of 2024.

During 2024, PFSA repaid the remaining $162.5 million of quarterly installments on the Term Loan Facility, such that PFSA is not required to make any further quarterly installment payments.

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Borrowings under these credit facilities bear interest at variable rates.

We have $19.3 million of senior notes maturing in the next twelve months.

We classified this debt as long-term as of December 31, 2024 as we have the intent and ability to refinance such obligations on a long-term basis under the revolving credit facility under the Senior Credit Facility.

As of December 31, 2025, we had $75.4 million of cash held in certain countries in which the ability to repatriate is limited due to local regulations or significant potential tax consequences.

2 unchanged sentences

Share repurchases

In December 2020, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $750.0 million.

This authorization expires on December 31, 2025.

During the year ended December 31, 2023, no ordinary shares were repurchased.

During the year ended December 31, 2024, we repurchased 1.6 million of our ordinary shares for $150.0 million.

As of December 31, 2024, we had $450.0 million available for share repurchases under this authorization.

In December 2020, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $750.0 million (“the 2020 Authorization”).

The 2020 Authorization expired on December 31, 2025.

In December 2025, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $1.0 billion (the “2025 Authorization”).

The 2025 Authorization supplemented the 2020 Authorization and expires on December 31, 2028.

During the year ended December 31, 2024, we repurchased 1.6 million of our ordinary shares for $150.0 million under the 2020 Authorization.

During the year ended December 31, 2025, we repurchased 2.3 million of our ordinary shares for $225.0 million under the 2020 Authorization.

As of December 31, 2025, we had $1.0 billion available for share repurchases under the 2025 Authorization.

On December 15, 2025, the Board of Directors approved a regular quarterly cash dividend of $0.27 per share that was paid on February 6, 2026 to shareholders of record at the close of business on January 23, 2026.

This dividend reflects a 9 percent increase in the Company’s regular cash dividend rate.

This dividend reflects an 8 percent increase in the Company’s regular cash dividend rate.

The balance of dividends payable included in Other current liabilities on our Consolidated Balance Sheets was $44.1 million at December 31, 2025.

51 unchanged sentences

COMMITMENTS AND CONTINGENCIES

We have been, and in the future may be, made parties to a number of actions filed or have been, and in the future may be, given notice of potential claims relating to the conduct of our business, including those relating to commercial, regulatory or contractual disputes with suppliers, authorities, customers or parties to acquisitions and divestitures, intellectual property matters, environmental, asbestos, safety and health matters, product liability, the use or installation of our products, consumer matters, and employment and labor matters.

intellectual property matters;

environmental, asbestos, safety and health matters;

product liability;

matters arising from the use or installation of our products;

consumer matters;

and employment and labor matters.

While we believe that a material impact on our consolidated financial position, results of operations or cash flows from any such future claims or potential claims is unlikely, given the inherent uncertainty of litigation, a remote possibility exists that a future adverse ruling or unfavorable development could result in future charges that could have a material impact.

24 unchanged sentences

By their nature, these judgments are subject to an inherent degree of uncertainty.

These judgments are based on our historical experience, terms of existing contracts, our observance of trends in the industry and information available from other outside sources, as appropriate.

These judgments are based on our historical experience, the terms of existing contracts, our observance of trends in the industry and information available from other outside sources, as appropriate.

We consider an accounting estimate to be critical if:

10 unchanged sentences

However, we may elect to perform the quantitative goodwill impairment test even if no indications of a potential impairment exist.

During 2024, a qualitative assessment was performed.

During 2025 and 2024, a qualitative assessment was performed.

As a result, it was determined that it was more likely than not that the fair value of the reporting units exceeded their respective carrying values.

Therefore, a quantitative assessment was not required.

Factors considered in the analysis included the 2023 discounted cash flow fair value assessment of the reporting units and the calculated excess fair value over carrying amount, financial performance, forecasts and trends, market capitalization, regulatory and environmental issues, macro-economic conditions, industry and market considerations, raw material costs and management stability.

We also consider the extent to which each of the adverse events and circumstances identified affect the comparison of the respective reporting unit’s fair value with its carrying amount.

We place more weight on the events and circumstances that most affect the respective reporting unit’s

fair value or the carrying amount of its net assets.

We place more weight on the events and circumstances that most affect the respective reporting unit’s fair value or the carrying amount of its net assets.

We consider positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that the fair value exceeds the carrying amount.

During 2023, a quantitative assessment was performed.

The fair value of each reporting unit was determined using a discounted cash flow analysis and market approach.

Projecting discounted future cash flows requires us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital and the appropriate discount rate.

Use of the market approach consists of comparisons to comparable publicly-traded companies that are similar in size and industry.

For the 2023 annual impairment test, the estimated fair value significantly exceeded the carrying value in each of our reporting units, therefore, no impairment charge was required.

The non-recurring fair value measurement is a “Level 3” measurement under the fair value hierarchy described in ITEM 8, Note 9 of the Notes to Consolidated Financial Statements.

Identifiable intangible assets

3 unchanged sentences

Identifiable intangible assets that are subject to amortization are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment charge of $30.9 million was recorded in 2025 related to the write-off of a definite-lived customer relationship intangible asset resulting from a business exit within our Water Solutions segment during the second quarter of 2025.

The impairment charge was recorded in Selling, general and administrative expense in the Consolidated Statements of Operations and Comprehensive Income.

No impairment charges associated with identifiable intangibles with finite lives were recognized in 2024 or 2023.

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This accounting method also results in the potential for volatile and difficult to forecast mark-to-market adjustments.

Mark-to-market adjustments resulted in pre-tax gains of $5.3 million and $17.5 million in 2024 and 2022, respectively, and a pre-tax loss of $6.1 million in 2023.

Mark-to-market adjustments resulted in pre-tax losses of $2.4 million and $6.1 million in 2025 and 2023, respectively, and a pre-tax gain of $5.3 million in 2024.

The remaining components of pension expense, including service and interest costs and the expected return on plan assets, are recorded on a quarterly basis as ongoing pension expense.

38 unchanged sentences

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

What changed 10-K

Item 7. Management’s Discussion and Analysis