What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-29 compared with 2026-04-28 · 126 added, 70 removed, 307 unchanged (39% of the section changed)

5 unchanged sentences

Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

Net revenue for the three months ended March 31, 2026 was $934.8 million, an increase of 2.6% on a reported basis compared to $911.3 million in the prior period.

Net revenue for the three months ended June 30, 2026 was $990.6 million, an increase of 5.0% on a reported basis compared to $943.4 million in the prior period.

Excluding an increase of 1.1% attributed to changes in foreign currency exchange rates and a decrease of 0.5% related to the effect of disposals, net revenue increased 4.4% on an organic basis.

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Refer to Non-GAAP Financial Measures included elsewhere in this MD&A for additional information regarding our use of organic revenue growth (or decline).

Operating income for the three months ended March 31, 2026 was $141.6 million (15.2% of net revenue), an increase of $19.5 million, or 15.9% compared to operating income of $122.2 million (13.4% of net revenue) in the three months ended March 31, 2025.

Refer to Results of Operations included elsewhere in this MD&A for additional discussion of our earnings results for the three months ended March 31, 2026 compared to the prior periods.

We generated $122.5 million of operating cash flows in the three months ended March 31, 2026, ending the quarter with $635.1 million in cash and cash equivalents.

In the three months ended March 31, 2026, we used cash of approximately $17.9 million for capital expenditures, $17.5 million for payment of dividends, and $25.1 million for share repurchases as part of our share repurchase plan.

Net revenue for the six months ended June 30, 2026 was $1,925.4 million, an increase of 3.8% on a reported basis compared to $1,854.6 million in the prior period.

Excluding an increase of 1.6% attributed to changes in foreign currency exchange rates and a decrease of 2.1% related to the effect of disposals, net revenue increased 4.3% on an organic basis.

Operating income for the three months ended June 30, 2026 was $165.4 million (16.7% of net revenue), an increase of $27.3 million, or 19.8%, compared to operating income of $138.1 million (14.6% of net revenue) in the three months ended June 30, 2025.

Operating income for the six months ended June 30, 2026 was $307.0 million (15.9% of net revenue), an increase of $46.7 million, or 18.0%, compared to operating income of $260.3 million (14.0% of net revenue) in the six months ended June 30, 2025.

Refer to Results of Operations included elsewhere in this MD&A for additional discussion of our earnings results for the three and six months ended June 30, 2026 compared to the prior periods.

We generated $332.5 million of operating cash flows in the six months ended June 30, 2026, ending the quarter with $403.3 million in cash and cash equivalents.

In addition to $401.1 million used to pay debt, in the six months ended June 30, 2026, we used cash of approximately $41.5 million for capital expenditures, $34.9 million for payment of dividends, and $25.1 million for share repurchases as part of our share repurchase plan.

Results of Operations

The table below presents our historical results of operations, in millions of dollars and as a percentage of net revenue, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

The table below presents our historical results of operations, in millions of dollars and as a percentage of net revenue, for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025.

We have derived the results of operations from the Financial Statements included elsewhere in this Report.

Amounts and percentages in the table below have

been calculated based on unrounded numbers.

Amounts and percentages in the table below have been calculated based on unrounded numbers.

Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

For the three months ended

March 31, 2026 March 31, 2025

For the three months ended For the six months ended

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Amount Percent

Automotive $ 544.8 55.0 % $ 527.5 55.9 % $ 1,074.1 55.8 % $ 1,059.7 57.1 %

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Net income $ 102.1 10.3 % $ 60.7 6.4 % $ 189.2 9.8 % $ 130.6 7.0 %

Net revenue for the three months ended March 31, 2026 increased 2.6% compared to the prior period.

Net revenue increased 4.2% on an organic basis, which excludes an increase of 2.2% attributed to changes in foreign currency exchange rates and a decrease of 3.8% due primarily to the effects of the divestiture of the Magnetic Speed and Positioning Business ("MSP Business") in the first quarter of 2025.

Net revenue for the three months ended June 30, 2026 increased 5.0% compared to the prior period.

Net revenue increased 4.4% on an organic basis, which excludes an increase of 1.1% attributed to changes in foreign currency exchange rates and a decrease of 0.5% due primarily to the effects of discontinued product lines in 2025.

Net revenue for the six months ended June 30, 2026 increased 3.8% compared to the prior period.

Net revenue increased 4.3% on an organic basis, which excludes an increase of 1.6% attributed to changes in foreign currency exchange rates and a decrease of 2.1% due primarily to the effects of the divestiture of the Magnetic Speed and Position Business ("MSP Business") in the first quarter of 2025.

Refer to Note 16:

Disposals of the Financial Statements, included elsewhere in this Report, for additional information on the sale of the MSP Business.

Automotive net revenue for the three months ended March 31, 2026 decreased 0.8% compared to the prior period.

Excluding an increase of 2.5% attributed to changes in foreign currency exchange and a decrease of 4.0% due to the effects of a divestiture, Automotive net revenue increased 0.7% on an organic basis compared to the prior period, which was primarily due to product mix in the markets we serve.

Industrials net revenue for the three months ended March 31, 2026 decreased 0.8% compared to the prior period.

Excluding an increase of 1.5% attributed to changes in foreign currency exchange and a decrease of 3.0% due to the effect of divestitures, Industrials net revenue grew 0.7% on an organic basis compared to the prior period, which primarily reflects content growth in our Industrials business segment.

Automotive net revenue for the three months ended June 30, 2026 increased 3.3% compared to the prior period.

Excluding an increase of 1.5% attributed to changes in foreign currency exchange rates, Automotive net revenue increased 1.8% on an organic basis compared to the prior period, which was primarily due to content growth in our Automotive business segment.

Automotive net revenue for the six months ended June 30, 2026 increased 1.4% compared to the prior period.

Excluding an increase of 2.0% attributed to changes in foreign currency exchange and a decrease of 2.0% due to the effects of a divestiture, Automotive net revenue increased 1.4% on an organic basis compared to the prior period, which was primarily due to content growth in our Automotive business segment.

Industrials net revenue for the three months ended June 30, 2026 increased 2.9% compared to the prior period.

Excluding an increase of 0.9% attributed to changes in foreign currency exchange and a decrease of 2.2% due to the effect of discontinued product lines, Industrials net revenue grew 4.2% on an organic basis compared to the prior period, which primarily reflects content growth in our Industrials business segment.

Industrials net revenue for the six months ended June 30, 2026 increased 0.7% compared to the prior period.

Excluding an increase of 1.1% attributed to changes in foreign currency exchange and a decline of 2.6% due to the effect of divestitures,

Industrials net revenue grew 2.2% on an organic basis compared to the prior period, which primarily reflects content growth in our Industrials business segment.

Aerospace, Defense, and Commercial Equipment

Aerospace, Defense, and Commercial Equipment net revenue for the three months ended March 31, 2026 increased 14.8% compared to the prior period.

Excluding an increase of 1.8% attributed to changes in foreign currency exchange rates and a decline of 3.7% due to the effects of a divestiture, Aerospace, Defense, and Commercial Equipment net revenue grew 16.7% on

an organic basis due to growth in our commercial equipment and aerospace business.

Aerospace, Defense, and Commercial Equipment net revenue for the three months ended June 30, 2026 increased 11.5% compared to the prior period.

Excluding an increase of 0.6% attributed to changes in foreign currency exchange rates, Aerospace, Defense, and Commercial Equipment net revenue grew 10.9% on an organic basis due to growth in our commercial equipment and aerospace business and product mix in the markets we serve.

Aerospace, Defense, and Commercial Equipment net revenue for the six months ended June 30, 2026 increased 13.1% compared to the prior period.

Excluding an increase of 1.2% attributed to changes in foreign currency exchange rates and a decline of 1.8% due to the effects of a divestiture, Aerospace, Defense, and Commercial Equipment net revenue grew 13.7% on an organic basis due to growth in our commercial equipment and aerospace business and product mix in the markets we serve.

Operating Costs and Expenses

Operating costs and expenses for the three months ended March 31, 2026 and 2025 are presented, in millions of dollars and as a percentage of net revenue, in the following table.

Operating costs and expenses for the three and six months ended June 30, 2026 and 2025 are presented, in millions of dollars and as a percentage of net revenue, in the following table.

Amounts and percentages in the table below have been calculated based on unrounded numbers.

Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

For the three months ended

March 31, 2026 March 31, 2025

For the three months ended For the six months ended

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Amount Percent

Operating costs and expenses:

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Cost of revenue

For the three months ended March 31, 2026, cost of revenue as a percentage of net revenue decreased from the prior period, primarily due to the favorable effects of the MSP divestiture in the first quarter of 2025 and organic revenue growth, partially offset by the net impacts of inflation on material and logistics costs and tariffs.

For the three months ended June 30, 2026, cost of revenue as a percentage of net revenue decreased from the prior period, primarily due to organic revenue growth, partially offset by the net impacts of inflation on material and logistics costs and tariffs.

For the six months ended June 30, 2026, cost of revenue as a percentage of net revenue decreased from the prior period, primarily due to the favorable effects of the MSP divestiture in the first quarter of 2025 and organic revenue growth, partially offset by the net impacts of inflation on material and logistics costs and tariffs.

Research and development expense

For the three months ended March 31, 2026, research and development expense did not fluctuate materially from the prior period.

For the three and six months ended June 30, 2026, research and development expense did not fluctuate materially from the prior period.

Selling, general and administrative expense

For the three months ended March 31, 2026, selling, general and administrative expense did not fluctuate materially from the prior period.

For the three and six months ended June 30, 2026, selling, general and administrative expense did not fluctuate materially from the prior period.

Amortization of intangible assets

For the three months ended March 31, 2026, amortization of intangible assets decreased from the prior period, primarily due to the effect of amortization of intangible assets in accordance with their expected economic benefit, which generally results in acceleration of amortization expense in the early years of the life of an intangible asset.

For the three and six months ended June 30, 2026, amortization of intangible assets decreased from the prior period, primarily due to the effect of amortization of intangible assets in accordance with their expected economic benefit, which generally results in acceleration of amortization expense in the early years of the life of an intangible asset.

Restructuring and other charges, net

In the three months ended March 31, 2026, restructuring and other charges, net decreased from the prior period, primarily due to higher transaction-related charges in 2025 corresponding to the business divestitures that took place in that year, partially offset by higher charges related to the Transformation Plan in the current period.

In the three and six months ended June 30, 2026, restructuring and other charges, net decreased from the prior period, primarily due to higher transaction-related charges in 2025 corresponding to the business divestitures that took place in that year, partially offset by higher charges related to the Transformation Plan in the current period.

Refer to Note 5:

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Operating Income

For the three months ended March 31, 2026, operating income was $141.6 million, compared to operating income of $122.2 million in the prior period.

This favorable impact was driven primarily by (1) higher revenue in the current period, (2) a decrease in amortization of intangibles, and (3) cost savings as a result of actions taken as part of our restructuring plans, partially offset by the net impacts of inflation on material and logistics costs.

For the three months ended June 30, 2026, operating income was $165.4 million, compared to operating income of $138.1 million in the prior period.

This favorable impact was driven primarily by (1) higher revenue in the current period, (2) a decrease in restructuring charges and amortization of intangibles, and (3) cost savings as a result of actions taken as part of our restructuring plans, partially offset by the net impacts of inflation on material and logistics costs.

For the six months ended June 30, 2026, operating income was $307.0 million, compared to operating income of $260.3 million in the prior period.

Interest Expense

For the three months ended March 31, 2026, interest expense did not fluctuate materially from the prior period.

For the three and six months ended June 30, 2026, interest expense did not fluctuate materially from the prior period.

Interest Income

For the three months ended March 31, 2026, interest income did not fluctuate materially from the prior period.

For the three and six months ended June 30, 2026, interest income did not fluctuate materially from the prior period.

Other, net primarily includes gains and losses related to currency remeasurement adjustments, foreign currency and commodity forward contracts not designated as hedging instruments, mark-to-market investments, debt refinancing, and the portion of our net periodic benefit cost excluding service cost.

For the three months ended March 31, 2026, other, net represented a net gain of $4.1 million, a favorable impact on

For the three months ended June 30, 2026, other, net represented a net loss of $3.6 million, an unfavorable impact on

earnings of $4.6 million compared to a net gain of $0.9 million in the prior period.

This favorable impact was primarily due to the absence of losses on forward currency forward contracts in the current year.

This unfavorable impact was primarily due to losses on commodity forward contracts and on the remeasurement of net monetary assets in the current year, partially offset by the gain on debt financing transactions in the current period.

For the six months ended June 30, 2026, other, net represented a net gain of $0.4 million, an unfavorable impact on

earnings of $2.6 million compared to a net gain of $3.1 million in the prior period.

This unfavorable impact was primarily due to losses on the remeasurement of net monetary assets and a lower gain on commodity forward contracts in the current year, partially offset by the gain on debt financing transactions in the current period.

Refer to Note 13:

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Free cash flow conversion is defined as Free cash flow divided by Adjusted net income.

We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to, among other things, fund acquisitions, repurchase ordinary shares, or accelerate the repayment of debt obligations.

We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that will be used to

repay scheduled debt maturities and can be used to, among other things, fund acquisitions, repurchase ordinary shares, or accelerate the repayment of debt obligations.

Adjusted corporate and other expenses

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• Deferred taxes and other tax related :

includes adjustments for deferred taxes and other timing differences including, but not limited to, book-to-tax basis differences on the fair value of intangible assets and goodwill, the utilization of net operating losses, and adjustments to our valuation allowance in connection with certain transactions and tax law changes.

Other tax related items include certain adjustments to unrecognized tax benefits and withholding tax on repatriation of foreign earnings.

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The following tables present reconciliations of certain financial measures calculated in accordance with U.S.

GAAP to the related non-GAAP financial measures for the three months ended March 31, 2026 and 2025.

GAAP to the related non-GAAP financial measures for the three months ended June 30, 2026 and 2025.

Refer to the Non-GAAP Adjustments section above for additional information regarding these adjustments.

Amounts and percentages in the tables below have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

For the three months ended March 31, 2026

For the three months ended June 30, 2026

(Dollars in millions, except per share amounts) Operating Income Operating Margin Income Taxes Net Income Diluted EPS

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Adjusted (non-GAAP) $ 193.3 19.5 % $ 21.5 $ 143.7 $ 0.98

For the three months ended March 31, 2025

For the three months ended June 30, 2025

(Dollars in millions, except per share amounts) Operating Income Operating Margin Income Taxes Net Income Diluted EPS

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Adjusted (non-GAAP) $ 179.1 19.0 % $ 19.7 $ 127.3 $ 0.87

(a) The following table presents the components of our restructuring related and other non-GAAP adjustment to net income for the three months ended March 31, 2026 and 2025 (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):

For the three months ended March 31,

The following tables present reconciliations of certain financial measures calculated in accordance with U.S.

GAAP to the related non-GAAP financial measures for the six months ended June 30, 2026 and 2025.

For the six months ended June 30, 2026

(Dollars in millions, except per share amounts) Operating Income Operating Margin Income Taxes Net Income Diluted EPS

Reported (GAAP) $ 307.0 15.9 % $ 58.8 $ 189.2 $ 1.29

Non-GAAP adjustments:

Restructuring related and other (a)

34.1 1.8 (3.3) 30.8 0.21

Financing and other transaction costs (b)

(5.2) (0.3) 0.1 (5.1) (0.03)

Amortization of intangible assets 31.5 1.6 — 31.5 0.21

Amortization of debt issuance costs — — — 2.2 0.01

— — (0.4) (0.8) (0.01)

Deferred taxes and other tax related — — 21.5 21.5 0.15

Total adjustments 60.4 3.1 17.8 80.0 0.55

Adjusted (non-GAAP) $ 367.4 19.1 % $ 40.9 $ 269.2 $ 1.84

For the six months ended June 30, 2025

(Dollars in millions, except per share amounts) Operating Income Operating Margin Income Taxes Net Income Diluted EPS

Reported (GAAP) $ 260.3 14.0 % $ 65.8 $ 130.6 $ 0.88

Non-GAAP adjustments:

Restructuring related and other (a)

34.6 1.9 0.9 35.5 0.24

Financing and other transaction costs (b)

9.0 0.5 0.1 9.1 0.06

Amortization of intangible assets 41.8 2.3 — 41.8 0.28

Amortization of debt issuance costs — — — 2.4 0.02

— — (0.6) (3.6) (0.02)

Deferred taxes and other tax related

— — 28.3 28.3 0.19

Total adjustments 85.3 4.6 28.7 113.4 0.77

Adjusted (non-GAAP) $ 345.6 18.6 % $ 37.1 $ 243.9 $ 1.65

(a) The following table presents the components of our restructuring related and other non-GAAP adjustment to net income for the three and six months ended June 30, 2026 and 2025 (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):

For the three months ended June 30, For the six months ended June 30,

(In millions) 2026 2025 2026 2025

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$ 11.9 $ 16.2 $ 25.7 $ 34.3

5.6 0.1 8.4 0.3

Income tax effect

(1.6) (0.6) (3.3) 0.9

Total non-GAAP restructuring related and other

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Primarily includes charges related to repositioning our business and corporate functions to more effectively respond to the challenges that face the business, including severance, contract termination costs, charges related to asset write-downs, and other various restructuring-related charges.

(b) The following table presents the components of our financing and other transaction costs non-GAAP adjustment to net income for the three months ended March 31, 2026 and 2025 (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):

For the three months ended March 31,

(b) The following table presents the components of our financing and other transaction costs non-GAAP adjustment to net income for the three and six months ended June 30, 2026 and 2025 (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):

For the three months ended June 30, For the six months ended June 30,

(In millions) 2026 2025 2026 2025

Transaction loss (i)

$ — $ 3.9 $ — $ 8.6

Merger and acquisition compensation arrangements (ii)

(5.9) (0.3) (6.3) 0.4

Income tax effect

0.1 0.1 0.1 0.1

Total financing and other transaction costs

1 unchanged sentence

Primarily includes losses or gains related to the divestiture of a business, costs incurred, including for legal, accounting, and other professional services, that are directly related to an acquisition, divestiture, or other transaction.

In the three months ended March 31, 2025, this line includes costs and losses associated with the disposition of the MSP Business.

In the six months ended June 30, 2025, this line includes costs and losses associated with the disposition of the MSP Business.

Refer to Note 16:

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GAAP to free cash flow.

For the three months ended March 31,

For the six months ended June 30,

(In millions) 2026 2025

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GAAP to adjusted corporate and other expenses.

For the three months ended March 31,

For the three months ended June 30, For the six months ended June 30,

(In millions) 2026 2025 2026 2025

6 unchanged sentences

GAAP to adjusted EBITDA.

For the three months ended March 31,

For the three months ended June 30, For the six months ended June 30,

(In millions) LTM 2026 2025 2026 2025

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GAAP to gross and net debt balances and leverage ratios.

(Dollars in millions) March 31,

(Dollars in millions) June 30,

2026 December 31,

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Liquidity and Capital Resources

As of March 31, 2026 and December 31, 2025, we held cash and cash equivalents in the following regions (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):

(In millions) March 31,

As of June 30, 2026 and December 31, 2025, we held cash and cash equivalents in the following regions (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):

(In millions) June 30,

2026 December 31,

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Our cash and cash equivalents balances are held in the following significant currencies (amounts in the tables below have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):

As of March 31, 2026

As of June 30, 2026

(In millions) United States Dollar ("USD")

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USD Equivalent $ 11.9 $ 4.3 $ 60.5 $ 13.0

The table below summarizes our primary sources and uses of cash for the three months ended March 31, 2026 and 2025.

The table below summarizes our primary sources and uses of cash for the six months ended June 30, 2026 and 2025.

We have derived these summarized statements of cash flows from the Financial Statements included elsewhere in this Report.

1 unchanged sentence

Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.

For the three months ended

(In millions) March 31, 2026 March 31, 2025

For the six months ended

(In millions) June 30, 2026 June 30, 2025

Net cash provided by/(used in):

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Operating activities.

Net cash provided by operating activities for the three months ended March 31, 2026 increased compared to the corresponding period of the prior year, primarily due to higher cash provided by earnings, partially offset by unfavorable changes in working capital.

Net cash provided by operating activities for the six months ended June 30, 2026 increased compared to the corresponding period of the prior year, primarily due to higher cash provided by earnings and favorable changes in working capital.

Investing activities.

Net cash used in investing activities for the three months ended March 31, 2026 was $16.5 million compared to cash used of $6.9 million for the corresponding period of the prior year.

Net cash used in investing activities for the six months ended June 30, 2026 was $35.9 million compared to cash used of $33.6 million for the corresponding period of the prior year.

This change was primarily due to proceeds received for the sale of the MSP Business in the first quarter of 2025, partially offset by higher capital expenditures in the prior period.

1 unchanged sentence

Financing activities .

Net cash used in financing activities for the three months ended March 31, 2026 was $44.7 million compared to cash used in financing activities of $119.1 million in the corresponding period of the prior year.

This change was primarily due to a higher amount of cash paid to repurchase ordinary shares in the prior year.

Net cash used in financing activities for the six months ended June 30, 2026 was $468.5 million compared to cash used in financing activities of $160.8 million in the corresponding period of the prior year.

This change was primarily due the settlement of our cash tender offer in the second quarter of 2026, partially offset by a higher amount of cash paid to repurchase ordinary shares in the prior year.

Indebtedness and Liquidity

As of March 31, 2026, we had $2.9 billion in gross indebtedness, which includes finance lease obligations and excludes debt discounts, premiums, and deferred financing costs.

As of June 30, 2026, we had $2.5 billion in gross indebtedness, which includes finance lease obligations and excludes debt discounts, premiums, and deferred financing costs.

Capital Resources

1 unchanged sentence

Our sources of liquidity include cash on hand, cash flows from operations, and available capacity under the Revolving Credit Facility.

As of March 31, 2026, we had $645.8 million available under the Revolving Credit Facility, net of $4.2 million of obligations in respect of outstanding letters of credit issued thereunder.

As of June 30, 2026, we had $645.8 million available under the Revolving Credit Facility, net of $4.2 million of obligations in respect of outstanding letters of credit issued thereunder.

Outstanding letters of credit are issued primarily for the benefit of certain operating activities.

As of March 31, 2026, no amounts had been drawn against these outstanding letters of credit.

As of June 30, 2026, no amounts had been drawn against these outstanding letters of credit.

This Revolving Credit Facility includes an accordion feature under which maximum borrowings may be increased under certain circumstances.

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Further, the amount of our debt may limit our ability to procure additional financing in the future.

Our ability to raise additional financing, and our borrowing costs, may be impacted by short- and long-term debt ratings assigned by independent rating agencies, which are based, in significant part, on our performance as measured by certain credit

metrics such as interest coverage and leverage ratios.

As of April 16, 2026, Moody’s Investors Service’s corporate credit rating for STBV was Ba2 with a stable outlook, and Standard & Poor’s corporate credit rating for STBV was BB+ with a stable outlook.

As of July 16, 2026, Standard & Poor's corporate credit rating for STBV was BB+ with a stable outlook and Moody’s Investors Service’s corporate credit rating for STBV was Ba2 with a stable outlook.

Any future downgrades to STBV's credit ratings may increase our future borrowing costs but will not reduce availability under the Credit Agreement.

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The Credit Agreement also requires mandatory prepayments of the outstanding borrowings under the Senior Secured Credit Facilities upon certain asset dispositions and casualty events, in each case subject to certain reinvestment rights, and upon the incurrence of certain indebtedness (excluding any permitted indebtedness).

These provisions were not triggered during the three months ended March 31, 2026.

These provisions were not triggered during the six months ended June 30, 2026.

The Credit Agreement and the Senior Notes Indentures contain restrictions and covenants that limit the ability of our wholly-owned subsidiary, STBV, and certain of its subsidiaries to, among other things, incur subsequent indebtedness, sell assets, pay dividends, and make other restricted payments.

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These restrictions and covenants, which are subject to important exceptions and qualifications set forth in the Credit Agreement and Senior Notes Indentures, were taken into consideration when we established our share repurchase programs and will be evaluated periodically with respect to future potential funding of those programs.

As of March 31, 2026, we believe we were in compliance with all covenants and default provisions under our credit arrangements.

As of June 30, 2026, we believe we were in compliance with all covenants and default provisions under our credit arrangements.

Share repurchase programs

From time to time, our Board of Directors has authorized various share repurchase programs, which may be modified or terminated by our Board at any time.

We currently have authorization for the September 2023 Program, under which approximately $257.3 million remained available as of March 31, 2026.

In the three months ended March 31, 2026, and 2025, we repurchased 0.7 million and 3.5 million ordinary shares under the September 2023 Program.

In the three months ended March 31, 2026 and 2025, we paid aggregate cash dividends of $17.5 million and $17.9 million, respectively.

In April 2026, we announced that our Board of Directors approved a quarterly dividend of $0.12 per share, payable in May 2026 to shareholders of record as of May 13, 2026.

We currently have authorization for the September 2023 Program, under which approximately $257.3 million remained available as of June 30, 2026.

In the six months ended June 30, 2026, and 2025, we repurchased 0.7 million and 4.2 million ordinary shares under the September 2023 Program.

In the six months ended June 30, 2026 and 2025, we paid aggregate cash dividends of $34.9 million and $35.5 million, respectively.

In July 2026, we announced that our Board of Directors approved a quarterly dividend of $0.12 per share, payable in August 2026 to shareholders of record as of August 12, 2026.

Critical Accounting Policies and Estimates

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It also requires that we make estimates and assumptions about future events that affect the amounts reported in the consolidated financial statements and accompanying notes.

No material changes to our critical accounting policies and estimates, as previously disclosed, have occurred during the first three months of 2026.

No material changes to our critical accounting policies and estimates, as previously disclosed, have occurred during the first six months of 2026.

Quantitative and Qualitative Disclosures About Market Risk.

3 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-Q

Item 2. Management’s Discussion and Analysis