BENCHMARK ELECTRONICS INC

Previous wording

This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as “anticipate,” “believe,” “intend,” “plan,” “project,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” “could,” “predict,” and similar expressions of the negative or other variations thereof. In particular, statements, expressed or implied, concerning the Company's outlook and guidance for quarterly periods or fiscal year 2026 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company’s business strategy and strategic initiatives, the Company’s repurchases of shares of its common stock, the Company’s expectations regarding restructuring charges, stock-based compensation expense, amortization of intangibles, award of any tax incentives and capital expenditures, and the Company’s intentions concerning the payment of dividends, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions, that are beyond the Company’s ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the 2025 10-K and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission (the SEC). Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, the potential of another U.S. government shutdown and the economic impacts, volatility and uncertainty resulting therefrom, geopolitical uncertainties including continuing hostilities and tensions, trade restrictions and sanctions, tariffs and retaliatory countermeasures, the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, or write-downs or write-offs of obsolete or unsold inventory, may have resulting impacts on the Company’s business, financial condition, results of operations, and the Company’s ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company’s operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as “anticipate,” “believe,” “intend,” “plan,” “project,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” “could,” “predict,” and similar expressions of the negative or other variations thereof. In particular, statements, expressed or implied, concerning the Company's outlook and guidance for quarterly periods or fiscal year 2026 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company’s business strategy and strategic initiatives, the Company’s expectations regarding enterprise AI opportunities, anticipated growth in bookings, and repurchases of shares of its common stock, the Company’s expectations regarding restructuring activity and charges, stock-based compensation expense, amortization of intangibles, award or extension of any tax incentives and capital expenditures, the Company’s intentions concerning the payment of dividends, the Company’s expectations regarding the impact of inflation, tariffs and trade policies, and the Company’s positions and strategies with respect to ongoing or threatened litigation and expected outcomes, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions, that are beyond the Company’s ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the 2025 10-K and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission (the SEC). Risks and uncertainties relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, geopolitical uncertainties including continuing hostilities and tensions in the Middle East and elsewhere, trade restrictions and sanctions, tariffs and retaliatory countermeasures, the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, or write-downs or write-offs of obsolete or unsold inventory, may have resulting impacts on the Company’s business, financial condition, results of operations, and the Company’s ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company’s operations, may vary materially from those ind…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Benchmark Electronics, Inc. (the Company) is a Texas corporation that provides design engineering and advanced manufacturing services that include both electronic manufacturing services (EMS) and precision technology (PT) services. We support customers throughout their product lifecycle starting from initial product concept through volume production, including the ability to manage direct order fulfillment and provide aftermarket services. We are a trusted partner to our European and U.S. based national and multi-national original equipment manufacturers (OEMs). Served markets include: aerospace and defense (A&D), medical, industrial, semiconductor capital equipment (Semi-Cap), and advanced computing and communication (AC&C). The Company has manufacturing operations located in the United States and Mexico (the Americas), Asia and Europe.

Current wording

Benchmark Electronics, Inc. (the Company) is a Texas corporation that provides design engineering and advanced manufacturing services that include both electronic manufacturing services (EMS) and precision metal machining (PMM) services. We support customers throughout their product lifecycle starting from initial product concept through volume production, including the ability to manage direct order fulfillment and provide aftermarket services. We are a trusted partner to our European and U.S. based national and multinational original equipment manufacturers (OEMs). Served markets include: advanced computing and communications (AC&C), aerospace and defense (A&D), industrial, medical, and semiconductor capital equipment (semi-cap). The Company has manufacturing operations located in the United States and Mexico (the Americas), Asia and Europe.

Previous wording

Design & Engineering Services include turnkey product design, designing for manufacturability, design optimization for our factory processes and supply chain, test development, concurrent and sustaining engineering, and regulatory services. Our engineering services may be for systems, sub-systems, printed circuit boards and assemblies, and components. We have the flexibility and capability to engage anywhere in the design process flow. We provide these services across all the industries we serve. We often partner with our customers to provide turnkey product realization from requirements through the launch to volume production in our factories. We have also developed differentiated capabilities in radio frequency (RF) and optics. The need to improve size, weight and power (SWaP) to accommodate high frequency electronics communications is important to customers in the A&D, medical, and AC&C markets.

Current wording

Design & Engineering Services include turnkey product design, designing for manufacturability, design optimization for our factory processes and supply chain, test development, concurrent and sustaining engineering, and regulatory services. Our engineering services may be for systems, subsystems, printed circuit boards and assemblies, and components. We have the flexibility and capability to engage anywhere in the design process flow. We provide these services across all the industries we serve. We often partner with our customers to provide turnkey product realization from requirements through the launch to volume production in our factories. We have also developed differentiated capabilities in radio frequency (RF) and optics.

Previous wording

Our sales depend on the success of our customers, some of which operate in businesses associated with rapid technological change and consequent product obsolescence. Developments adverse to our major customers or their products, including conditions affecting the availability of electronic components or the failure of a major customer to pay for components or services, can impact our ability to fulfill customer demand. A substantial percentage of our sales are made to a small number of customers, and the loss of a major customer, if not replaced, would adversely affect us. Sales to our ten largest customers represented 50% and 54% of our total sales during the three months ended March 31, 2026 and 2025, respectively.

Current wording

Our sales depend on the success of our customers, some of which operate in businesses associated with rapid technological change and consequent product obsolescence. Developments adverse to our major customers or their products, including conditions affecting the availability of electronic components or the failure of a major customer to pay for components or services, can impact our ability to fulfill customer demand. A substantial percentage of our sales are made to a small number of customers, and the loss of a major customer, if not replaced, would adversely affect us. Sales to our ten largest customers represented 50% and 53% of our total sales during the six months ended June 30, 2026 and 2025, respectively.

Previous wording

On February 20, 2026, the U.S. Supreme Court issued a ruling striking down tariffs imposed under the International Emergency Economic Powers Act, including, among others, tariffs on imports of certain Canadian, Chinese, and Mexican goods, a universal baseline tariff on imports from most countries, and reciprocal tariffs on select countries. The global tariff landscape continues to shift rapidly, with changes impacting businesses and markets around the world. We continue to monitor the situation, including any potential refunds of such tariffs, and evaluate the impact on our results of operations. No potential refunds have been recorded in the Condensed Consolidated Financial Statements as we cannot reasonably estimate the financial impact, but believe the impact would not be material to the Company. For additional information, refer to Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Current wording

On February 20, 2026, the U.S. Supreme Court issued a ruling invalidating tariffs imposed under the International Emergency Economic Powers Act, including, among others, tariffs on imports of certain Canadian, Chinese, and Mexican goods, a universal baseline tariff on imports from most countries, and reciprocal tariffs on select countries. In March 2026, the U.S. Court of International Trade further ruled that importers that paid such tariffs are entitled to refunds. During the second quarter of 2026, U.S. Customs and Border Protection launched a process to administer IEEPA tariff refund claims, and the Company submitted claims for qualifying IEEPA tariff refunds. We continue to monitor developments related to tariffs and trade policies and evaluate the potential impact on our results of operations and financial condition. For the three and six months ended June 30, 2026, the Company recorded in the consolidated statement of income tariff refunds of $11.8 million as a reduction to cost of sales, reflecting the recovery of previously incurred tariff costs, and recorded a corresponding reduction to sales for amounts reimbursable to customers. For additional information, refer to Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Previous wording

The following table presents the percentage relationship that certain items in our condensed consolidated statements of income bear to sales for the periods indicated.

Current wording

The following table presents, for the periods indicated, certain statements of income data expressed as a percentage of net sales:

Previous wording

Aerospace and Defense. Sales for the three months ended March 31, 2026 decreased 2% to $119.8 million from $121.9 million for the three months ended March 31, 2025. The decrease was primarily due to certain programs going end-of-life, partially offset by new program wins.

Current wording

Aerospace and Defense. Sales for the three months ended June 30, 2026 decreased 12% to $111.2 million from $126.3 million for the three months ended June 30, 2025. Sales for the six months ended June 30, 2026 decreased 7% to $231.0 million from $248.1 million for the six months ended June 30, 2025. The decreases were primarily due to certain programs going end-of-life, partially offset by new program wins.

Previous wording

Advanced Computing and Communications. Sales for the three months ended March 31, 2026 increased 41% to $105.1 million from $74.5 million for the three months ended March 31, 2025. The increase was primarily due to new program wins.

Current wording

Advanced Computing and Communications. Sales for the three months ended June 30, 2026 increased 71% to $127.1 million from $74.5 million for the three months ended June 30, 2025. Sales for the six months ended June 30, 2026 increased 56% to $232.2 million from $149.0 million for the six months ended June 30, 2025. The increases were primarily due to new program wins in high performance computing, driven primarily by customer investments in data center infrastructure.

Previous wording

Our international operations are subject to the risks of doing business abroad. See Part I, Item 1A of our 2025 10-K for factors pertaining to our international sales, fluctuations in foreign currency exchange rates and a discussion of potential adverse effects in operating results associated with the risks of doing business abroad. During the three months ended March 31, 2026 and 2025, 62% and 66%, respectively, of our sales were from international operations.

Current wording

Our international operations are subject to the risks of doing business abroad. See Part I, Item 1A of our 2025 10-K for factors pertaining to our international sales, fluctuations in foreign currency exchange rates and a discussion of potential adverse effects in operating results associated with the risks of doing business abroad. During the three months ended June 30, 2026 and 2025, 63% and 64%, respectively, of our sales were from international operations.

Previous wording

Asia. Sales for the three months ended March 31, 2026 increased 7% to $303.1 million from $284.0 million for the three months ended March 31, 2025. The increase was primarily due to an increase in demand for A&D, AC&C, and Industrial sectors partially offset by decreased demand in the Semi-Cap sector.

Current wording

Asia. Sales for the three months ended June 30, 2026 increased 20% to $345.5 million from $287.1 million for the three months ended June 30, 2025. Sales for the six months ended June 30, 2026 increased 14% to $648.6 million from $571.1 million for the six months ended June 30, 2025. The increases were primarily due to an increase in demand for Industrial, AC&C, Semi-Cap, and A&D sectors.

Previous wording

Americas. Sales for the three months ended March 31, 2026 increased 10% to $311.3 million from $284.3 million for the three months ended March 31, 2025. The increase was primarily due to higher demand in AC&C and Medical sectors partially offset by decreased demand in the A&D and Industrial sectors.

Current wording

Europe. Sales for the three months ended June 30, 2026 increased 10% to $91.5 million from $83.4 million for the three months ended June 30, 2025. Sales for the six months ended June 30, 2026 increased 3% to $174.8 million from $169.7 million for the six months ended June 30, 2025. The increases were primarily due to an increase in demand for Semi-Cap and Medical sectors, partially offset by lower demand in Industrial and A&D sectors.

Previous wording

Gross profit for the three months ended March 31, 2026 increased 10% to $69.2 million from $63.2 million for the three months ended March 31, 2025. Gross profit margin increased to 10.2% for the three months ended March 31, 2026 from 10.0% for the three months ended March 31, 2025. The increases were primarily driven by higher sales volumes, which resulted in improved absorption of fixed manufacturing costs, as well as favorable mix.

Current wording

Gross profit for the three months ended June 30, 2026 increased 21% to $78.4 million from $64.8 million for the three months ended June 30, 2025. Gross profit margin increased to 10.4% for the three months ended June 30, 2026 from 10.1% for the three months ended June 30, 2025. The increases were primarily due to higher sales, which resulted in improved absorption of fixed manufacturing costs, as well as a more favorable mix of products sold.

Previous wording

Income from operations for the three months ended March 31, 2026 increased 86% to $21.9 million from $11.8 million in the three months ended March 31, 2025. The increase was primarily due to decreased restructuring expenses and other costs in the current period, as the settlement of a tax assessment in the Americas was recorded during the three months ended March 31, 2025.

Current wording

Income from operations for the three months ended June 30, 2026 increased 48% to $30.3 million from $20.5 million in the three months ended June 30, 2025. Income from operations for the six months ended June 30, 2026 increased 62% to $52.1 million from $32.2 million in the six months ended June 30, 2025. The increases were primarily due to higher sales as well as decreased restructuring expenses and other costs, as the settlement of a tax assessment in the Americas was recorded during the six months ended June 30, 2025.

Previous wording

Americas. Income from operations for the three months ended March 31, 2026 increased 277% to $7.8 million from a loss of $4.4 million for the three months ended March 31, 2025. The increase was primarily due to decreased restructuring expenses and other costs in the current period, as the settlement of a tax assessment in the Americas was recorded during the three months ended March 31, 2025.

Current wording

Americas. Income from operations for the three months ended June 30, 2026 increased 81% to $19.5 million from $10.8 million for the three months ended June 30, 2025. Income from operations for the six months ended June 30, 2026 increased 331% to $27.4 million from $6.3 million for the six months ended June 30, 2025. The increases were primarily due to higher sales as well as decreased restructuring expenses and other costs, as the settlement of a tax assessment in the Americas was recorded during the six months ended June 30, 2025.

Previous wording

Selling, General and Administrative Expenses

Current wording

Selling, General and Administrative (SG&A) Expenses

Previous wording

SG&A expenses increased to $42.4 million for the three months ended March 31, 2026 from $38.8 million for the three months ended March 31, 2025. The increase was primarily due to professional services and variable compensation.

Current wording

SG&A expenses increased to $46.1 million for the three months ended June 30, 2026 from $40.6 million for the three months ended June 30, 2025. SG&A expenses increased to $88.5 million for the six months ended June 30, 2026 from $79.4 million for the six months ended June 30, 2025. The increases were primarily due to higher variable compensation.

Previous wording

Amortization of intangible assets was $1.2 million for both the three months ended March 31, 2026 and 2025.

Current wording

Amortization of intangible assets was $1.2 million for both the three months ended June 30, 2026 and 2025. Amortization of intangible assets was $2.4 for both the six months ended June 30, 2026 and 2025.

Previous wording

During the three months ended March 31, 2026, we recognized $3.7 million of restructuring charges and other costs which primarily related to a planned closure of our site in Phoenix, Arizona and other smaller activities involving capacity reductions and reductions in workforce in certain facilities across various regions.

Current wording

During the three and six months ended June 30, 2026, we recognized $1.1 million and $4.9 million of restructuring charges and other costs which primarily related to a planned closure of our site in Phoenix, Arizona and other smaller activities involving capacity reductions and reductions in workforce in certain facilities across various regions. Phoenix, Arizona operations ceased during the second quarter of 2026 and all related restructuring activity is expected to be substantially complete in 2026. Additionally, the Company recorded a $0.3 million net recovery related to the settlement of tax assessments in the Americas.

Previous wording

During the three months ended March 31, 2025, we recognized $1.3 million restructuring charges and other costs primarily due to capacity and workforce reductions at our sites in the Americas. Additionally, the Company agreed to a $10.1 million settlement related to an indirect tax assessment in the Americas.

Current wording

During the three and six months ended June 30, 2025, we recognized $1.9 million and $3.3 million restructuring charges and other costs primarily due to capacity and workforce reductions at our sites in the Americas. Additionally, the Company incurred $0.6 million and $10.7 million of settlement costs related to a tax assessment in the Americas for the three and six months ended June 30, 2025, respectively.

Previous wording

Interest expense decreased to $3.6 million for the three months ended March 31, 2026 from $5.3 million for the three months ended March 31, 2025. The decrease was primarily due to decreased borrowings and a lower interest rate environment.

Current wording

Interest expense decreased to $3.8 million for the three months ended June 30, 2026 from $6.3 million for the three months ended June 30, 2025. Interest expense decreased to $7.4 million for the six months ended June 30, 2026 from $11.6 million for the six months ended June 30, 2025. The decreases were primarily due to decreased borrowings and a lower interest rate environment.

Previous wording

Interest income decreased to $1.9 million for the three months ended March 31, 2026 from $2.7 million for the three months ended March 31, 2025. The decrease was primarily due to a lower interest environment.

Current wording

Interest income decreased to $2.0 million for the three months ended June 30, 2026 from $3.1 million for the three months ended June 30, 2025. Interest income decreased to $3.9 million for the six months ended June 30, 2026 from $5.9 million for the six months ended June 30, 2025. The decreases were primarily due to a lower interest environment and lower cash balances in interest-bearing accounts.

Previous wording

Other expense, net increased to $1.7 million for the three months ended March 31, 2026 from $0.8 million for the three months ended March 31, 2025. The increase was primarily due to higher foreign currency exchange losses.

Current wording

Other income (expense), net increased to income of $0.2 million for the three months ended June 30, 2026 from expense of $0.7 million for the three months ended June 30, 2025. Other income (expense), net was flat at expense of $1.5 million for the six months ended June 30, 2026 and 2025. The increase for the three months ended June 30, 2026 was primarily due to higher foreign currency exchange gains.

Previous wording

We reported net income of $13.0 million, or $0.36 per diluted share, for the three months ended March 31, 2026, compared with net income of $3.6 million, or $0.10 per diluted share, for the three months ended March 31, 2025. The increases were primarily due to the items discussed above.

Current wording

We reported net income of $19.9 million, or $0.55 per diluted share, for the three months ended June 30, 2026, compared with net income of $1.0 million, or $0.03 per diluted share, for the three months ended June 30, 2025. We reported net income of $32.9 million, or $0.91 per diluted share, for the six months ended June 30, 2026, compared with net income of $4.6 million, or $0.13 per diluted share, for the six months ended June 30, 2025. The increases were primarily due to the items discussed above.

Previous wording

We have historically financed our organic growth and operations through funds generated from operations and borrowings under our credit agreement (as amended and restated, the Credit Agreement), consisting of a term loan facility and a $550.0 million revolving credit facility, both with a maturity date of June 27, 2030. Cash, cash equivalents and restricted cash totaled $325.2 million as of March 31, 2026, which included $303.8 million held outside the United States in various foreign subsidiaries.

Current wording

We have historically financed our organic growth and operations through funds generated from operations and borrowings under our Credit Agreement (as defined below), consisting of a $150 million term loan facility and a $550 million revolving credit facility, both with a maturity date of June 27, 2030. Cash, cash equivalents and restricted cash totaled $315.2 million as of June 30, 2026, which included $311.0 million held outside the United States in various foreign subsidiaries.

Previous wording

Cash provided from operating activities was $47.0 million during the three months ended March 31, 2026, and primarily consisted of $13.0 million of net income, adjusted for $11.9 million of depreciation and amortization, $5.4 million of stock-based compensation expense, a $42.3 million increase in accounts payable, a $14.2 million decrease in accounts receivable, and a $6.4 million decrease in prepaid expenses and other assets, partially offset by a $25.6 million increase in inventories, a $8.4 million decrease in accrued liabilities, $8.1 million increase in contract assets and a $4.6 million decrease in advance payments from customer. Working capital was $0.8 billion as of March 31, 2026.

Current wording

Cash provided from operating activities was $81.7 million during the six months ended June 30, 2026, and primarily consisted of $32.9 million of net income, adjusted for $23.9 million of depreciation and amortization, $11.6 million of stock-based compensation expense, a $150.5 million increase in accounts payable, an $8.8 million increase in advance payments from customers, and a $6.4 million increase in accrued liabilities partially offset by a $62.7 million increase in inventories, a $61.9 million increase in accounts receivable, a $13.9 million increase in prepaid expenses and other assets, and a $13.6 million increase in contract assets. Working capital was $0.8 billion as of June 30, 2026.

Previous wording

Cash used in investing activities was $16.1 million during the three months ended March 31, 2026 primarily due to capital expenditures for property, plant and equipment of $16.0 million and purchased software of $2.3 million. The purchases of property, plant and equipment were primarily for leasehold improvements and machinery and equipment in the Americas and Asia.

Current wording

Cash used in investing activities was $29.1 million during the six months ended June 30, 2026 primarily due to capital expenditures for property, plant and equipment of $28.8 million and purchased software of $2.4 million partially offset by proceeds from the sale of assets held for sale of $2.3 million. The purchases of property, plant and equipment were primarily for buildings and machinery and equipment in the Americas and Asia.

Previous wording

Cash used in financing activities was $25.9 million during the three months ended March 31, 2026. Borrowings under the Credit Agreement were $113.0 million and principal payments under the Credit Agreement were $118.9 million. In addition, during the three months ended March 31, 2026, we paid $5.8 million for share repurchases, $8.1 million for employee taxes in connection with the settlement of stock-based awards and $6.1 million for dividends.

Current wording

Cash used in financing activities was $56.2 million during the six months ended June 30, 2026. Borrowings under the Credit Agreement were $271.0 million and principal payments under the Credit Agreement were $300.9 million. In addition, during the six months ended June 30, 2026, we paid $12.2 million for dividends, $8.3 million for employee taxes in connection with the settlement of stock-based awards, and $5.8 million for share repurchases.

Previous wording

On June 27, 2025, the Company entered into a $700 million second amended and restated credit agreement (the Credit Agreement) by and among the Company, certain of its subsidiaries, the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swingline Lender and an L/C Issuer. The Credit Agreement is comprised of a five-year $550 million revolving credit facility and a five-year $150 million term loan facility, both with a maturity date of June 27, 2030. As of March 31, 2026, we had $147.2 million in borrowings outstanding under the term loan facility, $60.0 million outstanding under our revolving credit facility and $4.0 million in letters of credit outstanding under our revolving credit facility. See Note 5 to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Report for more information regarding the terms of our Credit Agreement.

Current wording

On June 27, 2025, the Company entered into a $700 million second amended and restated credit agreement (the Credit Agreement) by and among the Company, certain of its subsidiaries, the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swingline Lender and an L/C Issuer. The Credit Agreement is comprised of a five-year $550 million revolving credit facility and a five-year $150 million term loan facility, both with a maturity date of June 27, 2030. As of June 30, 2026, we had $146.3 million in borrowings outstanding under the term loan facility, $37.0 million outstanding under our revolving credit facility and $4.0 million in letters of credit outstanding under our revolving credit facility. See Note 5 to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Report for more information regarding the terms of our Credit Agreement.

Previous wording

As of March 31, 2026, we had $486.0 million available for borrowings under the Credit Agreement, subject to compliance with financial covenants as to interest coverage and debt leverage, in addition to other debt covenant restrictions. During the next 12 months, we believe our capital expenditures will approximate $70 million to $80 million, principally for machinery and equipment to help increase our production capacity to support anticipated revenue growth and our ongoing business around the globe.

Current wording

As of June 30, 2026, we had $509.0 million available for borrowings under the Credit Agreement, subject to compliance with financial covenants as to interest coverage and debt leverage, in addition to other debt covenant restrictions. During the next 12 months, we believe our capital expenditures will approximate $80 million to $90 million, principally for machinery and equipment to help increase our production capacity to support anticipated revenue growth and our ongoing business around the globe.

Previous wording

During both the three months ended March 31, 2026 and 2025, cash dividends paid totaled $6.1 million. On March 16, 2026, the Board of Directors declared a quarterly cash dividend of $0.17 per share of the Company’s common stock to shareholders of record as of March 31, 2026. The dividend of $6.1 million was paid on April 10, 2026.

Current wording

During the six months ended June 30, 2026 and 2025, cash dividends paid totaled $12.2 million and $12.3, respectively. On June 8, 2026, the Board of Directors declared a quarterly cash dividend of $0.17 per share of the Company’s common stock to shareholders of record as of June 30, 2026. The dividend of $6.1 million was paid on July 10, 2026.

Previous wording

The Company repurchased 0.1 million shares for an aggregate of $5.8 million at an average price of $53.67 per share during the three months ended March 31, 2026. As of March 31, 2026, the Company had $116.9 million remaining under share repurchase authorizations. See Note 7 to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Report for more information on the share repurchase authorization.

Current wording

The Company repurchased 0.1 million shares for an aggregate of $5.8 million at an average price of $53.67 per share during the six months ended June 30, 2026. As of June 30, 2026, the Company had $116.9 million remaining under share repurchase authorizations. See Note 7 to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Report for more information on the share repurchase authorization.

Previous wording

We have certain contractual obligations for operating leases that were summarized in “Contractual Obligations” under Part II, Item 7 in our 2025 10-K. Other than items discussed in Note 5 and Note 6 to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Report, there have been no material changes to our contractual obligations, outside of the ordinary course of our business, since December 31, 2025.

Current wording

We have certain contractual obligations that were summarized in “Contractual Obligations” under Part II, Item 7 in our 2025 10-K. Other than items discussed in Note 5 and Note 6 to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Report, there have been no material changes to our contractual obligations, outside of the ordinary course of our business, since December 31, 2025.