What changed in this filing

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Item 1. Financial Statements

2025-08-08 compared with 2025-05-09 · 291 added, 151 removed, 513 unchanged (46% of the section changed)

4 unchanged sentences

(In thousands, unaudited)

March 31, December 31,

June 30, December 31,

2025 2024 2024

18 unchanged sentences

Operating lease liabilities, net of current portion

83,001 69,223 76,184

Long-term debt, net of current portion and issuance costs

351,994 448,171 362,563

Deferred income tax 96,711 93,098 90,303

1 unchanged sentence

Total liabilities 1,024,626 1,008,560 923,034

Commitments and contingencies (Note 12)

Commitments and contingencies (see Note 12)

Non-qualified deferred compensation plan share awards 9,737 — 7,786

13 unchanged sentences

(In thousands except per-share amounts, unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

Net sales $ 631,055 $ 596,978 $ 1,169,950 $ 1,127,557

2 unchanged sentences

Operating expenses:

Research and development and engineering expense 19,839 21,918

Research and development and other engineering expense 20,767 19,948 40,606 39,213

Selling expense 56,443 54,494 110,607 107,758

5 unchanged sentences

Interest income, net and other finance costs 895 2,092 1,998 2,443

Other & foreign exchange gain, net 1,058 1,969

Other & foreign exchange gain (loss), net ( 1,684 ) ( 1,588 ) ( 626 ) 381

Income before taxes 139,455 132,690 243,935 231,105

2 unchanged sentences

Other comprehensive income

Translation adjustment and other, net of tax 17,836 ( 19,642 )

Translation adjustments and other, net of tax 46,432 ( 2,268 ) 64,258 ( 21,911 )

Unamortized pension adjustments, net of tax ( 11 ) ( 213 ) 410 ( 285 )

Cash flow hedge adjustment, net of tax ( 38,447 ) 2,187 ( 44,547 ) 7,306

Comprehensive income $ 90,031 $ 60,833

Earnings per common share:

Comprehensive net income $ 111,515 $ 97,537 $ 201,546 $ 158,368

Net income per common share:

Basic $ 2.48 $ 2.32 $ 4.34 $ 4.09

Diluted $ 2.47 $ 2.31 $ 4.33 $ 4.07

Weighted average shares outstanding

Weighted-average number of shares outstanding

Basic 41,705 42,251 41,775 42,319

6 unchanged sentences

(In thousands except per-share data, unaudited)

Three Months Ended March 31, 2025 and 2024

Common Stock Additional Paid-in Retained Accumulated Other Comprehensive DCP Vested Treasury

Shares Par Value Capital Earnings Loss Stock Stock Total

Balance at December 31, 2024 41,878 $ 424 $ 307,197 $ 1,646,568 $ ( 46,773 ) $ ( 1,297 ) $ ( 100,771 ) $ 1,805,348

Three Months Ended June 30, 2025 and 2024

Common Stock Additional Paid-in Retained Accumulated Other Comprehensive DCP Vested

Shares Par Value Capital Earnings Loss Stock

Balance at March 31, 2025 41,802 $ 419 $ 311,215 $ 1,611,095 $ ( 34,626 ) $ ( 1,284 ) $ ( 25,105 ) $ 1,861,714

Net income — — — 103,541 — — — 103,541

1 unchanged sentence

Pension adjustment, net of tax

— — — — ( 11 ) — — ( 11 )

Cash flow hedges, net of tax — — — — ( 38,447 ) — — ( 38,447 )

Stock-based compensation and deferred compensation plan ("DCP") expense — — 4,981 — — — — 4,981

Stock-based compensation expense and deferred compensation plan ("DCP") expense

— — 4,375 — — — — 4,375

Common stock held in DCP

Distribution/ diversification of common stock held in DCP 1 — — — — 100 — 100

Change in redemption value of share awards in DCP — — — ( 833 ) — — — ( 833 )

( 1 ) — ( 49 ) — — 49 — —

Change in redemption value of stock awards in DCP

— — ( 69 ) — — — ( 69 )

Shares issued from release of Restricted Stock Units 6 — ( 13 ) — — — — ( 13 )

Repurchase of common stock, including excise tax

Retirement of common stock — ( 6 ) — ( 100,765 ) — — 100,771 —

Cash dividends declared on common stock, $ 0.28 per share

( 217 ) — — — — — ( 35,352 ) ( 35,352 )

Common stock issued at $ 165.83 per share for stock bonus

21 — 3,526 — — — — 3,526

Balance at March 31, 2025 41,802 $ 419 $ 311,215 $ 1,611,095 $ ( 34,626 ) $ ( 1,284 ) $ ( 25,105 ) $ 1,861,714

Balance December 31, 2023 42,323 $ 426 $ 313,119 $ 1,426,554 $ ( 9,990 ) $ — $ ( 50,363 ) $ 1,679,746

Cash dividends declared on common stock, $0.29 per share — — — ( 12,130 ) — — — ( 12,130 )

Balance at June 30, 2025 41,590 $ 419 $ 315,528 $ 1,702,437 $ ( 26,652 ) $ ( 1,235 ) $ ( 60,457 ) $ 1,930,040

Balance March 31, 2024 42,442 $ 424 $ 309,661 $ 1,440,165 $ ( 24,587 ) $ — $ — $ 1,725,663

Net income — — — 97,831 — — — 97,831

Translation adjustment and other, net of tax — — — — ( 19,642 ) — — ( 19,642 )

Translation adjustment and other,

net of tax — — — — ( 2,268 ) — — ( 2,268 )

Pension adjustment, net of tax — — — — ( 213 ) — — ( 213 )

2 unchanged sentences

Shares issued from release of Restricted Stock Units 4 — ( 5 ) — — — — ( 5 )

Retirement of common stock — ( 3 ) — ( 50,360 ) — — 50,363 —

Repurchase of common stock, including excise tax

( 283 ) — — — — — ( 50,257 ) ( 50,257 )

Cash dividends declared on common stock, $0.28 per share — — — ( 11,804 ) — — — ( 11,804 )

Balance at June 30, 2024 42,163 $ 424 $ 313,323 $ 1,526,192 $ ( 24,881 ) $ — $ ( 50,257 ) $ 1,764,801

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

Simpson Manufacturing Co., Inc.

and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands except per-share data, unaudited)

Six Months Ended June 30, 2025 and 2024

Common Stock Additional Paid-in Retained Accumulated Other Comprehensive DCP Vested

Shares Par Value Capital Earnings Loss Stock

Balance at December 31, 2024 41,878 $ 424 $ 307,197 $ 1,646,568 $ ( 46,773 ) $ ( 1,297 ) $ ( 100,771 ) $ 1,805,348

Net income — — — 181,425 — — — 181,425

Translation adjustment, net of tax — — — — 64,258 — — 64,258

Pension adjustment and other,

net of tax — — — — 410 — — 410

Cash flow hedges, net of tax — — — — ( 44,547 ) — — ( 44,547 )

Stock-based compensation and deferred compensation plan ("DCP") expense

— — 9,357 — — — — 9,357

Balance at March 31, 2024 42,442 $ 424 $ 309,661 $ 1,440,165 $ ( 24,587 ) $ — $ — $ 1,725,663

Common stock held in DCP

( 16 ) — 38 — — ( 38 ) — —

Distribution/ diversification of common stock held in DCP

1 — — — — 100 — 100

Changes in redemption value of stock awards in DCP

— — — ( 902 ) — — ( 902 )

Shares issued from release of Restricted Stock Units 69 1 ( 4,590 ) — — — — ( 4,589 )

Repurchase of common stock, including excise tax

( 363 ) — — — — — ( 60,457 ) ( 60,457 )

Retirement of treasury stock — ( 6 ) — ( 100,765 ) — — 100,771 —

Cash dividends declared on common stock, $0.57 per share — — — ( 23,889 ) — — — ( 23,889 )

Common stock issued at $165.83 per share for stock bonus 21 — 3,526 — — — 3,526

Balance at June 30, 2025 41,590 $ 419 $ 315,528 $ 1,702,437 $ ( 26,652 ) $ ( 1,235 ) $ ( 60,457 ) $ 1,930,040

Balance at December 31, 2023 42,323 $ 426 $ 313,119 $ 1,426,554 $ ( 9,990 ) $ — $ ( 50,363 ) $ 1,679,746

Net income — — — 173,258 — — — 173,258

Translation adjustment, net of tax — — — — ( 21,911 ) — — ( 21,911 )

Pension adjustment and other,

net of tax — — — — ( 286 ) — — ( 286 )

Cash flow hedges, net of tax — — — — 7,306 — — 7,306

Stock-based compensation — — 7,752 — — — — 7,752

Shares issued from release of Restricted Stock Units 123 1 ( 7,548 ) — — — — ( 7,547 )

Repurchase of common stock, including excise tax

( 283 ) — — — — — ( 50,257 ) ( 50,257 )

Retirement of treasury stock — ( 3 ) — ( 50,360 ) — — 50,363 —

Cash dividends declared on common stock, $0.55 per share — — — ( 23,260 ) — — — ( 23,260 )

Balance at June 30, 2024 42,163 $ 424 $ 313,323 $ 1,526,192 $ ( 24,881 ) $ — $ ( 50,257 ) $ 1,764,801

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

3 unchanged sentences

(In thousands, unaudited)

Three Months Ended

Six Months Ended

Cash flows from operating activities

8 unchanged sentences

Noncash compensation related to stock plans and other changes in the fair value of DCP 13,068 10,427

Provision (recovery) for doubtful accounts 254 ( 416 )

Provision (recovery) for credit losses 837 ( 1,008 )

Deferred hedge gain ( 2,604 ) ( 1,649 )

Changes in operating assets and liabilities, net of amounts acquired

Changes in operating assets and liabilities

Trade accounts receivable ( 120,824 ) ( 95,704 )

7 unchanged sentences

Capital expenditures ( 88,069 ) ( 79,622 )

Acquisitions, net of cash acquired — ( 16,750 )

Purchases of equity investments ( 3,116 ) ( 1,101 )

5 unchanged sentences

Proceeds from line of credits

Repayments of lines of credit and term loan ( 6,815 ) ( 7,088 )

Repayments of line of credit and term loan

( 38,392 ) ( 13,942 )

Dividends paid ( 23,488 ) ( 22,889 )

1 unchanged sentence

Net cash used in financing activities ( 95,617 ) ( 93,113 )

Effect of exchange rate changes on cash ( 3,710 ) ( 4,467 )

Effect of exchange rate changes on cash and cash equivalents 4,436 ( 5,258 )

Net decrease in cash and cash equivalents

( 48,971 ) ( 74,971 )

Cash and cash equivalents at beginning of period 239,371 429,822

11 unchanged sentences

Investments in 50% or less owned entities are accounted for using either the cost or the equity method.

All significant intercompany transactions have been eliminated upon consolidation.

All significant intercompany transactions have been eliminated.

Certain amounts in the Condensed Consolidated Financial Statements of the prior year have been reclassified to conform to the fiscal 2025 presentation.

For the three and six months ended June 30, 2025 , the Company also reclassified certain engineering costs related to the Company's digital efforts from research and development and engineering expense as well as selling expense to general and administrative expense.

These reclassifications had no impact on the Company's Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Stockholders’ Equity or Condensed Consolidated Statements of Cash Flow.

For the three months ended March 31, 2025, the Company reallocated some of the costs from “Research and development and engineering expense” and “Selling expense” to “General and administrative expense” within the Condensed Consolidated Statements of Earnings and Comprehensive Income.

The change was made on a prospective basis and did not adjust operating results of prior periods.

While this change impacts the comparability of the results for prior periods presented, the change did not have any impact on the total operating expenses.

Use of Estimates

3 unchanged sentences

The Company determined that the change in depreciation method is considered change in accounting estimate affected by a change in accounting principle.

Accordingly, a change in accounting estimate affected by a change in accounting principle was applied prospectivel y.

As a result of the change to the straight-line method, there is a $ 1.9 million reduction in depreciation expense and an estimated $ 1.4 million increase in net income, o r approximately $ 0.03 per basic and $ 0.03 per diluted share, for the three months ended March 31, 2025.

Accordingly, a change in accounting estimate affected by a change in accounting principle was applied prospectively.

The effect of the change to the straight-line method resulted in a reduction of $ 1.8 million in depreciation expense and an estimated $ 1.3 million increase in net income, or approximately $ 0.03 per basic and $ 0.03 per diluted share;

for the three months ended June 30, 2025 .

The effect of the change for the six months ended June 30, 2025 resulted in a reduction of $ 3.6 million in depreciation expense and an estimated $ 2.7 million increase in net income, or approximately $ 0.06 per basic and $ 0.06 per diluted share.

Interim Reporting Period

5 unchanged sentences

The Company’s quarterly results fluctuate.

Accordingly, the results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any future periods.

As a result, the results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any future periods.

Cash and Cash Equivalents

5 unchanged sentences

Every quarter, the Company evaluates the customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions.

The changes in the allowance for doubtful accounts receivable for the three months ended March 31, 2025 are outlined in the table below:

The changes in the allowance for doubtful accounts receivable for the six months ended June 30, 2025 are outlined in the table below:

December 31, 2024 Expense (Deductions), net Write-Offs 1

March 31, 2025

June 30, 2025

Allowance for credit losses

12 unchanged sentences

The fair values of interest rate and foreign currency contracts are classified as Level 2 within the fair value hierarchy.

The fair values of the Company’s contingent consideration related to acquisition is classified as Level 3 within the fair value hierarchy, as this amount is based on unobservable inputs such as management estimates and entity-specific assumptions and are evaluated on an ongoing basis.

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company as of March 31, 2025 and 2024:

The fair values of the Company’s contingent consideration related to acquisitions is classified as Level 3 within the fair value hierarchy, as these amounts are based on unobservable inputs such as management estimates and entity-specific assumptions and are evaluated on an ongoing basis.

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company as of June 30, 2025 and 2024:

(in thousands)

15 unchanged sentences

Contingent considerations — — 5,400 — — 6,511

(1) The carrying amounts of cash equivalents, representing money market funds traded in an active market with relatively short maturities, are reported on the consolidated balance sheet as of March 31, 2025 and 2024 as a component of "Cash and cash equivalents".

(2) The carrying amounts of our term loan and revolver approximate fair value as of March 31, 2025 and 2024 based upon their terms and conditions in comparison to debt instruments with similar terms and conditions available on the same date.

(1) The carrying amounts of cash equivalents, representing money market funds traded in an active market with relatively short maturities, are reported on the consolidated balance sheet as of June 30, 2025 and 2024 as a component of "Cash and cash equivalents".

(2) The carrying amounts of our term loan and revolver approximate fair value as of June 30, 2025 based upon their terms and conditions in comparison to debt instruments with similar terms and conditions available on the same date.

(3) Derivatives for interest rate, foreign exchange and forward swap contracts are discussed in Note 7.

25 unchanged sentences

The deferred compensation obligation is measured independently at fair value of the underlying assets.

The Company previously presented certain DCP transactions within existing financial statement line items of the condensed consolidated balance sheets and Condensed Consolidated Statement of Stockholders’ Equity for period ended March 31, 2024.

The Company has reflected these DCP transactions in the accompanying Condensed Consolidated Balance Sheets and Condensed Consolidated Statement of Stockholders’ Equity for the periods ended March 31, 2025 and December 31, 2024 .

The transactions resulted in reclassifying equity balances related to "Non-qualified deferred compensation plan share awards" as mezzanine equity for $ 8.8 million and they were combined with stock-based compensation expense in the Condensed Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2025 .

The transactions resulted in reclassifying equity balances related to "Non-qualified deferred compensation plan share awards" as mezzanine equity for $ 9.7 million and they were combined with stock-based compensation expense in the Condensed Consolidated Statement of Stockholders’ Equity for the three and six months ended June 30, 2025.

The Company has evaluated the prior period reclassifications both qualitatively and quantitatively and has concluded that they have an immaterial impact on the periods presented.

37 unchanged sentences

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update ("ASU") 2023-07, which aligns interim segment disclosure requirements with existing annual requirements and includes updates to segment reporting, most notably through enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker (“CODM”).

The Company adopted the ASU for annual disclosures for the year ended December 31, 2024, and interim disclosures for the first quarter of 2025.

The Company adopted the ASU for annual disclosures for the year ended December 31, 2024, and interim disclosures beginning in the first quarter of 2025.

The ASU is applied retrospectively to all prior periods presented in the accompanying unaudited consolidated financial statements, and it had no impact on the Company’s consolidated financial statements.

5 unchanged sentences

The requirements of the ASU are effective for annual periods beginning after December 15, 2024.

Early adoption is permitted and the amendments should be applied on a prospective basis.

Retrospective application is permitted.

The Company is continuing to analyze the requirements and expects immaterial impact of the ASU on its Condensed Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03 requiring public companies to disclose, in interim and reporting periods, additional information about certain expenses in the financial statements.

Early adoption is permitted and the amendments can be applied either on a prospective or a retrospective basis.

The Company will adopt the ASU beginning with its fourth quarter ending December 31, 2025 and expects the application of this ASU will not have a material impact on its Condensed Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03 requiring public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the financial statements.

The ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

1 unchanged sentence

The Company is currently assessing the potential impacts of adoption on the consolidated financial statements.

In May 2025, the FASB issued ASU 2025-03 that clarifies the guidance in determining the acquirer in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a Variable Interest Entity (VIE) that meets the definition of a business.

The amendments require that an entity consider the same factors that are currently required for determining which entity is the accounting acquirer in other acquisition transactions.

The ASU is effective for annual periods beginning after December 15, 2026.

Early adoption is permitted and is effective on a prospective basis.

The Company is currently assessing the potential impacts of adoption on the consolidated financial statements.

The Company does not believe other new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its Condensed Consolidated Financial Statements.

3 unchanged sentences

Wood Construction Products Revenue .

Wood construction products represented approximately 85.3 % and 85.1 % of total net sales for the three months ended March 31, 2025 and 2024, respectively.

Wood construction products represented approximately 85.1 % and 85.3 % of total net sales for the six months ended June 30, 2025 and 2024, respectively.

Concrete Construction Products Revenue.

Concrete construction products represented approximately 14.4 % and 14.8 % of total net sales for the three months ended March 31, 2025 and 2024 respectively.

Concrete construction products represented approximately 14.7 % and 14.6 % of total net sales for the six months ended June 30, 2025 and 2024, respectively.

Customer acceptance criteria.

Generally, there are no customer acceptance criteria included in the Company's standard sales agreement with customers.

When an arrangement with the customer does not meet the criteria to be accounted for as a revenue contract under the standard, the Company recognizes revenue in the amount of nonrefundable consideration received when the Company has transferred control of the goods or services and has stopped transferring (and has no obligation to transfer)

additional goods or services.

The Company offers certain customers discounts for paying invoices ahead of the due date, which are generally 30 to 60 days after the issue date.

12 unchanged sentences

The time period between when consideration was received to when performance obligations are complete may not be significant.

As of March 31, 2025 and 2024, the Company's contract liability was $ 7.2 million and immaterial, respectively.

The Company recognized revenue of $ 3.0 million during the period ended March 31, 2025.

As of June 30, 2025 and 2024, the Company's contract liability was $ 6.0 million and immaterial, respectively.

The Company recognized revenue of $ 2.7 million during the period ended June 30, 2025 .

The Company had no material contract assets from contract with customers.

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in thousands, except per share amounts) 2025 2024 2025 2024

10 unchanged sentences

Under the 2011 Plan, no more than 16.3 million shares of the Company’s common stock in aggregate may be issued, including shares already issued pursuant to prior awards granted under the 2011 Plan.

Shares of the Company's common stock underlying awards to be issued pursuant to the 2011 Plan are registered under the Securities Act.

Under the 2011 Plan, the Company may grant restricted stock, restricted stock units, and stock options.

Shares of the Company's common stock underlying awards to be issued pursuant to the 2011 Plan are registered under the Securities

Under the 2011 Plan, the Company may grant restricted stock and restricted stock units.

The Company currently intends to award only performance-based stock units ("PSUs") and/or time-based restricted stock units ("RSUs").

The Company allocates stock-based compensation expense amongst cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees to whom the stock-based compensation is awarded.

Stock-based compensation capitalized in inventory was

immaterial for all periods presented.

The Company recognized stock-based compensation expense related to its equity plans for employees of $ 6.5 million and $ 5.3 million for the three months ended March 31, 2025 and 2024, respectively.

During the three months ended March 31, 2025, the Company granted an aggregate of 110 thousand RSUs and PSUs to the Company's employees, including officers at an estimated weighted average fair value of $ 166.60 per share based on the closing price (adjusted for certain market factors primarily the present value of dividends) of the Company's common stock on the grant date.

Stock-based compensation capitalized in inventory was immaterial for all periods presented.

The Company recognized stock-based compensation expense related to its equity plans for employees of $ 6.4 million and $ 5.1 million for the three months ended June 30, 2025 and 2024, respectively, and $ 12.9 million and $ 10.4 million for the six months ended June 30, 2025 and 2024, respectively.

During the six months ended June 30, 2025 , the Company granted an aggregate of 117,279 RSUs and PSUs to the Company's employees, including officers at an estimated weighted-average fair value of $ 170.10 per share based on the closing price (adjusted for certain market factors primarily the present value of dividends) of the Company's common stock on the grant date.

The RSUs and PSUs granted to the Company's employees may be time-based, performance-based, or time and performance-based.

3 unchanged sentences

Time based RSUs are granted to the Company's employees excluding officers and certain key employees, vest ratably over the four year vesting-term of the award.

As of March 31, 2025, the Company's aggregate unamortized stock compensation expense was approximately $ 37.5 million which is expected to be recognized in expense over a weighted-average period of 2.5 years.

The Company’s seven non-employee directors are entitled to receive an aggregate of approximately $ 1.0 million in equity compensation annually under the Company's non-employee director compensation program.

The number of shares ultimately granted are based on the average closing share price for the Company's common stock over the 60 day period prior to approval of the award in the second quarter of each year.

In May 2025, the Company granted 6,000 shares of the Company's common stock to the non-employee directors, based on the average closing price of $ 155.09 per share and recognized $ 0.9 million of expense.

As of June 30, 2025, the Company's aggregate unamortized stock compensation expense was approximately $ 33.1 million which is expected to be recognized in expense over a weighted-average period of 2.3 years.

Trade Accounts Receivable, net

Trade accounts receivable consisted of the following:

As of March 31, As of December 31,

As of June 30, As of December 31,

(in thousands) 2025 2024 2024

Trade accounts receivable $ 424,346 $ 384,655 $ 291,480

Allowance for credit losses ( 3,179 ) ( 2,927 ) ( 2,998 )

Allowance for doubtful accounts ( 3,837 ) ( 2,165 ) ( 2,998 )

Allowance for sales discounts and returns ( 4,583 ) ( 4,906 ) ( 4,090 )

1 unchanged sentence

The components of inventories are as follows:

As of March 31, As of December 31,

As of June 30, As of December 31,

(in thousands) 2025 2024 2024

7 unchanged sentences

The Company only enters into derivative instrument agreements with counterparties who have highly rated credit.

As of March 31, 2025, the aggregate notional amount of the Company's outstanding interest rate contracts, cross currency swap contracts and EUR forward contract were $ 382.5 million, $ 401.0 million and $ 321.7 million, respectively.

Changes in fair value of any forward contracts that are determined to be ineffective are immediately reclassified from OCI into earnings.

There were no amounts recognized due to ineffectiveness during the three months ended March 31, 2025 and March 31, 2024.

The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, were as follows:

(in thousands) Cost of sales Interest income (expense), net and other finance costs Other & foreign exchange loss, net Cost of sales Interest income (expense), net and other finance costs Other & foreign exchange loss, net

As of June 30, 2025 , the aggregate notional amounts of the Company's outstanding interest rate contracts, cross currency swap contracts, EUR forward contract, and net investment hedge were $ 376.9 million, $ 395.1 million, $ 321.7 million, and $ 557.2 million, respectively.

In May 2025, the Company entered into a cross-currency swap expiring in May 2032 to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe, which qualifies as net investment hedge.

For the derivative instrument, the gain or loss on the derivative instrument attributable to changes in the spot rate is reported in the CTA section of OCI and will remain in OCI until the hedged net investment is sold or liquidated.

The Company has elected to assess hedge effectiveness based on changes in spot exchange rates.

Under this method, the Company recognizes in earnings the initial value of the component excluded from the assessment of effectiveness over the life of the hedging instrument.

The interest accruals are also recognized in earnings (interest expense).

Any difference between the change in fair value of the excluded component and amounts recognized in earnings will be recognized in the CTA section of OCI.

The effects of cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30, were as follows:

(in thousands) Cost of sales Interest income, net and other finance costs

Other & foreign exchange loss, net Cost of sales Interest income, net and other finance costs

Other & foreign exchange loss, net

Total amounts of income and expense line items presented in the Condensed Consolidated Statement of Earnings in which the effects of fair value or cash flow hedges are recorded $ 623,460 $ 1,998 $ ( 626 ) $ 604,456 $ 2,443 $ 381

The effects of fair value and cash flow hedging

The effects of cash flow hedging

Gain or (loss) on cash flow hedging relationships

5 unchanged sentences

Amount of gain reclassified from OCI to earnings — — — ( 188 ) — —

The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, 2025 and 2024 were as follows:

The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended June 30, 2025 and 2024 were as follows:

Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from OCI into Earnings Gain (Loss) Reclassified from OCI into Earnings

5 unchanged sentences

Total $ ( 35,764 ) $ 7,725 $ ( 31,619 ) $ 8,728

For the three months ending March 31, 2025 and March 31, 2024 loss on the net investment hedge of $ 4.1 million and gain on the net investment hedge of $ 4.7 million were included in OCI, respectively.

For the three months ending March 31, 2025 and March 31, 2024, excluded gains of $ 1.2 million and $ 1.3 million were reclassified from OCI to interest expense, respectively.

As of March 31, 2025, the aggregate fair values of the Company’s derivative instruments on the Condensed Consolidated Balance Sheet were comprised of an asset of $ 22.9 million, of which $ 11.2 million is included in other current assets, and the balance of $ 11.7 million as other non-current assets, and of a non-current liability of $ 20.9 million included as deferred income tax and other long-term liabilities.

The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30, 2025 and 2024 were as follows:

Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from OCI into Earnings Gain (Loss) Reclassified from OCI into Earnings

(in thousands) 2025 2024 2025 2024

Interest rate contracts $ ( 2,124 ) $ 9,173 Interest expense $ 3,917 $ 6,235

Cross currency contracts ( 49,217 ) 16,333 Interest expense 1,539 2,535

Forward contracts — — FX gain (loss) ( 49,880 ) 14,484

Cost of goods sold — ( 188 )

Total $ ( 51,341 ) $ 25,506 $ ( 44,424 ) $ 23,066

For the three months ending June 30, 2025 and June 30, 2024, loss on the net investment hedge of $ 45.4 million and gain on the net investment hedge of $ 5.2 million were included in OCI, respectively.

For the three months ending June 30, 2025 and June 30, 2024, excluded loss of $ 1.3 million and gain of $ 1.3 million were reclassified from OCI to interest expense, respectively.

For the six months ending June 30, 2025 and June 30, 2024, loss on the net investment hedge of $ 49.5 million and gain on the net investment hedge of $ 9.9 million were included in OCI, respectively .

For the six months ending June 30, 2025 and June 30, 2024, excluded loss of $ 2.5 million and gain of $ 2.5 million were reclassified from OCI to interest expense, respectively.

As of June 30, 2025 , the aggregate fair values of the Company’s derivative instruments on the Condensed Consolidated Balance Sheet were comprised of an asset of $ 16.6 million, of which $ 14.6 million is included in other current assets, and the balance of $ 2.0 million as other non-current assets, and of a non-current liability of $ 98.5 million included in the “ Other long-term liabilities ” of the condensed consolidated balance sheets.

Property, Plant and Equipment, net

Property, plant and equipment consisted of the following:

As of March 31, As of December 31,

As of June 30, As of December 31,

(in thousands) 2025 2024 2024

6 unchanged sentences

382,822 356,002 369,507

372,029 361,080 369,507

Capital projects in progress 214,714 103,295 162,148

1 unchanged sentence

Assets held-for sale

In January 2025, the Company made a decision to sell its unimproved land located in Stockton, California.

The Company determined that the long-lived assets meet the criteria to be classified as held for sale in its condensed financial statements, and presented the asset's carrying value of approximately $2.4 million in Other current assets line of the condensed consolidated balance sheets.

In January 2025, the Company made a decision to sell its unimproved land located in Stockton, California that is part of the Company's North America segment.

The Company determined that the long-lived assets meet the criteria to be classified as held for sale in its condensed financial statements, and expected to be sold by the first quarter of 2026.

The Company presented the asset's carrying value of approximately $ 2.4 million in “Other current assets” of the condensed consolidated balance sheets.

Goodwill and Intangible Assets, net

Goodwill by segment were as follows:

As of March 31, As of December 31,

Goodwill consisted of the following:

As of June 30, As of December 31,

(in thousands) 2025 2024 2024

5 unchanged sentences

(in thousands) Gross Carrying

Amount Accumulated

Amortization Net Carrying

Balance as of December 31, 2023 $ 38,598 $ ( 4,854 ) $ 33,744

$ 38,598 $ ( 4,854 ) $ 33,744

Amortization — ( 1,379 ) ( 1,379 )

Foreign exchange ( 468 ) — ( 468 )

( 419 ) — ( 419 )

Balance as of March 31, 2024 38,179 ( 5,545 ) 32,634

Balance as of June 30, 2024 38,130 ( 6,233 ) 31,897

Purchases 15,800 — 15,800

4 unchanged sentences

Foreign exchange 1,290 — 1,290

Balance as of March 31, 2025 $ 53,757 $ ( 8,997 ) $ 44,760

Balance as of June 30, 2025 $ 54,762 $ ( 9,662 ) $ 45,100

(in thousands) Gross Carrying

Amount Accumulated

Amortization Net Carrying

1 unchanged sentence

Balance as of December 31, 2023 $ 22,508 $ ( 20,279 ) $ 2,229

$ 22,508 $ ( 20,279 ) $ 2,229

Amortization — ( 425 ) ( 425 )

Foreign exchange ( 113 ) — ( 113 )

Balance as of March 31, 2024 22,324 ( 20,489 ) 1,835

Balance as of June 30, 2024 22,395 ( 20,704 ) 1,691

Amortization — ( 566 ) ( 566 )

3 unchanged sentences

Foreign exchange 200 — 200

( 490 ) — ( 490 )

Balance as of March 31, 2025 $ 21,969 $ ( 21,441 ) $ 528

Balance as of June 30, 2025 $ 22,659 $ ( 21,638 ) $ 1,021

(in thousands) Gross Carrying

Amount Accumulated

Amortization Net Carrying

4 unchanged sentences

Foreign exchange ( 48 ) — ( 48 )

Balance as of March 31, 2024 28,182 ( 16,123 ) 12,059

Balance as of June 30, 2024 33,243 ( 16,585 ) 16,658

Purchases 8,956 — 8,956

3 unchanged sentences

Amortization — ( 2,448 ) ( 2,448 )

Foreign exchange and other 1,036 — 1,036

Balance as of March 31, 2025 $ 43,276 $ ( 19,936 ) $ 23,340

Foreign exchange 1,400 — 1,400

Balance as of June 30, 2025 $ 43,640 $ ( 21,165 ) $ 22,475

(in thousands) Gross Carrying

Amount Accumulated

Amortization Net Carrying

1 unchanged sentence

Balance as of December 31, 2023 $ 269,166 $ ( 46,399 ) $ 222,767

$ 269,166 $ ( 46,399 ) $ 222,767

Purchases 3,104 — 3,104

Amortization — ( 8,689 ) ( 8,689 )

Foreign exchange ( 6,217 ) — ( 6,217 )

Balance as of March 31, 2024 264,565 ( 50,990 ) 213,575

Balance as of June 30, 2024 266,053 ( 55,088 ) 210,965

Purchases 7,456 — 7,456

4 unchanged sentences

Amortization — ( 9,242 ) ( 9,242 )

Foreign exchange and other 11,500 — 11,500

Balance as of March 31, 2025

$ 274,812 $ ( 68,107 ) $ 206,705

Foreign exchange 28,390 — 28,390

Balance as of June 30, 2025 $ 291,702 $ ( 73,003 ) $ 218,699

Definite-lived and indefinite-lived assets, net, by segment were as follows :

As of March 31, 2025

(in thousands) Gross Carrying

Amortization Net Carrying

As of June 30, 2025

Gross Carrying Amount

Accumulated Amortization

Net Carrying Amount

(in thousands)

North America $ 116,550 $ ( 42,218 ) $ 74,332

2 unchanged sentences

Total $ 524,449 $ ( 125,088 ) $ 399,361

As of March 31, 2024

(in thousands) Gross Carrying

Amortization Net Carrying

As of June 30, 2024

Gross Carrying Amount

Accumulated Amortization

Net Carrying Amount

(in thousands)

North America $ 72,438 $ ( 35,390 ) $ 37,048

1 unchanged sentence

Asia/Pacific 4,157 ( 467 ) 3,690

$ 445,674 $ ( 93,147 ) $ 352,527

Total $ 451,343 $ ( 98,847 ) $ 352,496

As of December 31, 2024

(in thousands) Gross Carrying

Amortization Net Carrying

Gross Carrying Amount

Accumulated Amortization

Net Carrying Amount

(in thousands)

North America $ 116,550 $ ( 39,061 ) $ 77,489

4 unchanged sentences

Definite-lived intangible assets include customer relationships, patents, unpatented technology, and non-compete agreements.

Amortization of definite-lived intangible assets was $ 6.4 million and $ 5.6 million for the three months ended March 31, 2025 and 2024, respectively.

Amortization of definite-lived intangible assets was $ 6.7 million and $ 5.7 million for the three months ended June 30, 2025 and 2024, respectively, and was $ 13.4 million and $ 11.3 million for the six months ended June 30, 2025 and 2024, respectively.

The weighted-average amortization period for all amortizable intangibles on a combined basis is 7.0 years.

At March 31, 2025, the estimated future amortization of definite-lived intangible assets was as follows:

Indefinite-lived intangible assets are primarily trade names, which totaled $ 112.1 million, $ 91.6 million, and $ 105.7 million as of June 30, 2025 , and 2024 and December 31, 2024, respectively.

At June 30, 2025 , the estimated future amortization of definite-lived intangible assets was as follows:

(in thousands)

Remaining nine months of 2025 $ 19,626

Remaining six months of 2025 $ 13,035

Thereafter 150,468

Indefinite-lived intangible assets totaled $ 105.7 million, $ 92.4 million, and $ 105.7 million as of March 31, 2025, and 2024 and December 31, 2024, respectively.

The changes in the carrying amount of goodwill and intangible assets for the three months ended March 31, 2025, were as follows:

(in thousands) Goodwill Intangible

The changes in the carrying amount of goodwill and intangible assets for the six months ended June 30, 2025 , were as follows:

(in thousands) Goodwill Intangible Assets

Balance at December 31, 2024 $ 512,383 $ 375,051

Amortization — ( 13,398 )

Foreign exchange and other

15,238 12,439

Balance at March 31, 2025 $ 527,621 $ 381,079

The Company has operating leases for certain facilities, equipments, and automobiles.

Foreign exchange 48,250 37,708

Balance at June 30, 2025 $ 560,633 $ 399,361

The Company has operating leases for certain facilities, equipment and automobiles.

The existing operating leases expire at various dates through 2039, some of which include options to extend the leases for up to five years .

3 unchanged sentences

The ROU assets are amortized on a straight-line basis over the lease term.

The following table provides a summary of leases included on the Condensed Consolidated Balance Sheets as of March 31, 2025 and 2024 and December 31, 2024, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 :

Condensed Consolidated Balance Sheets Line Item March 31, December 31,

The following table provides a summary of leases included on the Condensed Consolidated Balance Sheets as of June 30, 2025 and 2024 and December 31, 2024, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024:

Condensed Consolidated Balance Sheets Line Item June 30, December 31,

(in thousands) 2025 2024 2024

5 unchanged sentences

The components of lease expense were as follows:

Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended March 31,

Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended June 30,

(in thousands) 2025 2024

3 unchanged sentences

Supplemental cash flow information related to leases is as follows:

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands) 2025 2024

1 unchanged sentence

Operating cash flows for operating leases $ 6,240 $ 4,708

$ 6,131 $ 4,587

Operating right-of-use assets obtained in exchange for new lease liabilities 2,340 23,240

The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2025:

The following is a schedule, by years, of maturities of operating lease liabilities as of June 30, 2025 :

(in thousands) Operating Leases

Remaining nine months of 2025 $ 19,358

Remaining six months of 2025 $ 12,829

Thereafter 22,180

2 unchanged sentences

Total lease liabilities $ 102,698

The following table summarizes the Company's operating lease terms and discount rates as of March 31, 2025 and 2024:

The following table summarizes the Company's lease terms and discount rates as of June 30, 2025 and 2024:

Weighted-average remaining lease terms (in years) 6.5 6.8

Weighted-average discount rate 5.2 % 5.1 %

As of March 31, 2025, the Company had $ 382.5 million, excluding deferred financing costs, outstanding under its Amended and Restated Credit Facility.

The Company had outstanding balances of $ 480.0 million and $ 388.1 million under the Amended and Restated Credit Facility as of March 31, 2024, and December 31, 2024, respectively.

The following is a schedule, by years, of maturities for the remaining term loan facility as of March 31, 2025:

(in thousands) 5-Year Term Loan

Remaining nine months of 2025 $ 16,875

As of June 30, 2025 , the Company had $ 376.9 million, excluding deferred financing costs, outstanding under its Amended and Restated Credit Facility.

The Company had outstanding balances of $ 474.4 million and $ 388.1 million, excluding deferred financing costs, under the Amended and Restated Credit Facility as of June 30, 2024, and December 31, 2024, respectively.

The following is a schedule, by years, of maturities for the remaining term loan facility as of June 30, 2025 :

(in thousands) Five-Year

Remaining six months of 2025 $ 11,250

Total loan outstanding $ 376,875

The Company was in compliance with its financial covenants under the Amended and Restated Credit Facility as of March 31, 2025.

Certain of the Company's domestic subsidiaries are guarantors for a credit agreement between certain of its foreign subsidiaries and institutional lenders that is in addition to the Amended and Restated Credit Facility.

As of March 31, 2025, all of the Company's credit facilities provide a total of $ 456.1 million in available borrowing capacity and an irrevocable standby letter of credit in support of various insurance deductibles.

The Company was in compliance with its financial covenants under the Amended and Restated Credit Facility as of June 30, 2025 .

A certain number of the Company's domestic subsidiaries are guarantors for a credit agreement between certain of its foreign subsidiaries and institutional lenders that is in addition to the Amended and Restated Credit Facility.

As of June 30, 2025 , all of the Company's credit facilities provide a total of $ 456.6 million in available borrowing capacity and an irrevocable standby letter of credit in support of various insurance deductibles.

Commitments and Contingencies

12 unchanged sentences

The three regional segments are the North America segment (comprised primarily of the Company’s operations in the U.S.

and Canada), the Europe segment and the Asia/Pacific segment (comprised of the Company’s operations in Asia, and the South Pacific).

and Canada), the Europe segment, and the Asia/Pacific segment (comprised of the Company’s operations in Asia, the South Pacific, and the Middle East).

These segments are similar in several ways, including the types of materials used, the production processes, the distribution channels and the product applications.

The Administrative & All Other column primarily includes expenses such as self-insured workers compensation claims for employees, stock-based compensation for certain members of management, interest expense, foreign exchange gains or losses and income tax expense, as well as revenues and expenses related to real estate activities.

The following table presents financial information of each segment that is used by the CODM to assess the performance of segments for periods ended March 31, 2025 and March 31, 2024 , respectively:

The following table presents financial information of each segment that is used by the CODM to assess the performance of segments for three and six months ended June 30, 2025 and 2024:

The following table illustrates certain measurements used by management to assess the performance of the segments described above as of or the following periods:

(in thousands) North

2 unchanged sentences

& All Other Total

Three months ended June 30, 2025

Net sales $ 492,687 $ 133,398 $ 4,970 $ — $ 631,055

11 unchanged sentences

Provision for income taxes 32,589 3,091 231 3 35,914

Business Acquisition, net of cash acquired, capital expenditures and asset acquisitions, net of cash acquired 43,508 3,108 150 3,399 50,165

Total assets 2,150,075 730,238 48,668 ( 106,025 ) 2,822,956

Business Acquisition;

capital expenditures;

asset acquisitions, net of cash acquired;

and equity investments 29,491 2,782 308 8,439 41,020

(in thousands)

America Europe Asia/

Pacific Administrative

& All Other Total

Three months ended June 30, 2024

Net sales $ 463,022 $ 129,877 $ 4,079 $ — $ 596,978

Wood Products 403,561 103,083 3,482 — 510,126

Concrete Products 59,056 26,794 597 — 86,447

Cost of sales 231,441 83,928 2,593 469 318,431

Gross profit 231,581 45,949 1,486 ( 469 ) 278,547

Research and development, and other engineering expenses 17,474 2,326 148 — 19,948

Selling expenses 40,254 13,412 828 — 54,494

General and administrative expenses 41,936 17,528 822 10,281 70,567

Sales to other segments * 858 1,411 10,717 — 12,986

Income from operations 132,055 12,145 ( 302 ) ( 11,712 ) 132,186

Depreciation and amortization 10,636 7,631 541 561 19,369

Significant non-cash charges 3,102 595 49 1,335 5,081

Provision for income taxes 33,542 2,905 286 ( 1,874 ) 34,859

Business Acquisition;

capital expenditures;

asset acquisitions, net of cash acquired;

and equity investments 50,288 4,329 904 2,540 58,061

(in thousands) North

2 unchanged sentences

& All Other Total

Six months ended June 30, 2025

Net sales $ 913,386 $ 247,258 $ 9,306 $ — $ 1,169,950

11 unchanged sentences

Provision for income taxes 55,759 6,033 594 124 62,510

Business Acquisition, net of cash acquired, capital expenditures and asset acquisitions, net of cash acquired 32,343 2,843 619 3,607 39,412

Total assets 1,782,890 716,263 36,275 186,518 2,721,946

Business Acquisition;

capital expenditures;

asset acquisitions, net of cash acquired;

and equity investments 72,999 5,890 458 11,838 91,185

Total assets as of June 30, 2025 2,253,295 789,658 49,289 ( 127,839 ) 2,964,403

(in thousands) North

America Europe Asia/

Pacific Administrative

& All Other Total

Six months ended June 30, 2024

Net sales $ 869,771 $ 249,814 $ 7,972 $ — $ 1,127,557

Wood Products 753,584 201,458 6,825 — 961,867

Concrete Products 115,675 48,356 1,146 — 165,177

Cost of sales 437,654 160,053 5,810 939 604,456

Gross profit 432,117 89,761 2,162 ( 939 ) 523,101

Research and development, and other engineering expenses 34,616 4,282 316 — 39,214

Selling expenses 79,810 26,363 1,585 — 107,758

General and administrative expenses 86,973 36,225 1,148 20,303 144,649

Sales to other segments * 1,698 2,662 17,569 — 21,929

Income from operations 230,960 20,402 ( 877 ) ( 22,204 ) 228,281

Depreciation and amortization 20,847 15,449 1,140 1,123 38,559

Significant non-cash charges 6,573 1,500 101 2,253 10,427

Provision for income taxes 55,296 5,847 283 ( 3,579 ) 57,847

Business Acquisition;

capital expenditures;

asset acquisitions, net of cash acquired;

and equity investments 82,631 7,172 1,523 6,147 97,473

Total assets as of June 30, 2024 1,905,699 723,791 43,594 100,277 2,773,361

* Sales to other segments are eliminated upon consolidation.

Cash collected by the Company’s U.S.

subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore is in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $ 60.8 million and $ 276.6 million, as of March 31, 2025 and 2024, respectively.

As of March 31, 2025, the Company had $ 89.5 million or 59.5 %, of its cash and cash equivalents held outside the U.S.

subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore is in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $ 105.9 million and $ 249.2 million as of June 30, 2025 and 2024, respectively.

As of June 30, 2025, the Company had $ 82.0 million or 43.0 % of its cash and cash equivalents held outside the U.S.

in accounts belonging to the Company’s various foreign operating entities.

The majority of this balance is held in foreign currencies and could be subject to additional taxation if repatriated to the U.S.

The Company's wood construction products are used in light-frame building applications and include connectors, truss plates, screw fastening systems, fasteners and pre-fabricated lateral-force resisting systems.

Its concrete construction products are used in concrete, masonry and steel building applications and include adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber reinforced materials, and other repair products used for protecting and strengthening structures.

The following table shows the distribution of the Company’s net sales by product for the three months ended March 31, 2025, 2024, respectively:

Three Months Ended March 31,

The majority of this balance is held in foreign currencies and could be subject to

additional taxation if repatriated to the U.S.

The Company’s wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls and are used for connecting and strengthening wood-based construction primarily in the residential and commercial construction market.

Its concrete construction products include adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools and reinforcing fiber materials and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction.

T he following

table illustrates the distribution of the Company’s net sales by product group as additional information for the three and six months ended June 30, 2025 and 2024:

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

(in thousands) 2025 2024 2025 2024

Wood Construction $ 459,442 $ 451,572

Concrete Construction 77,683 78,730

Wood construction products $ 535,561 $ 510,126 $ 995,844 $ 961,867

Concrete construction products 94,402 86,447 172,087 165,177

Other 1,092 405 2,019 513

2 unchanged sentences

Dividend Declared

On May 6, 2025, the Company’s Board of Directors (the "Board") declared a quarterly cash dividend of $ 0.29 per share, estimated to be $ 12.1 million in total.

The dividend will be payable on July 24, 2025, to the Company's stockholders of record on July 3, 2025.

On July 24, 2025, the Company’s Board of Directors (the "Board") declared a quarterly cash dividend of $ 0.29 per share, estimated to be $ 12.1 million in total.

The dividend will be payable on October 23, 2025, to the Company's stockholders of record on October 2, 2025.

One Big Beautiful Bill Act

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

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the 2021 Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

Key provisions include modifications to depreciation allowances and the treatment of research and development expenditures.

The legislation has multiple effective dates, with certain provisions effective for the 2025 tax year and others being implemented through 2027.

As of August 8, 2025, the Company cannot reasonably estimate the full impact of OBBBA on its consolidated financial statements.

Sale of Facility

In July 2025, the Company sold its existing facility in Gallatin, Tennessee for approximately $ 18.2 million in net proceeds after closing costs and sale price adjustments, which resulted in an estimated gain on disposal of fixed assets of $ 12.9 million.

To provide a temporary transition until the Company relocates to the new facility, the Company is leasing back the sold facility from the buyer for approximately five months.

The Company treated the leaseback transaction as a short-term lease and will recognize the rent expense on the straight-line basis over the lease term.

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

What changed 10-Q

Item 1. Financial Statements