Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35707 LIBERTY MEDIA CORPORATION (Exact name of Registrant as specified in its charter) State of Delaware 37-1699499 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35707 For the quarterly period ended September 30, 2025 OR LIBERTY MEDIA CORPORATION (Exact name of Registrant as specified in its charter) State of Delaware 37-1699499 ...

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 Table of Contents UNITED STATES For the transition period from to Commission File Number 001-35707 LIBERTY MEDIA CORPORATION OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of Registrant as specified in its charter) State of Delaware 37-1699499 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35707 LIBERTY MEDIA CORPORATION (Exact name of Registrant as specified in its charter) State of Delaware 37-1699499 ...

Financial Performance - Revenues for Q3 2025 were $28.5 million, a 30.1% increase from $21.9 million in Q3 2024[176] - Net income for Q3 2025 was $10.1 million, or $1.27 per diluted share, compared to $1.9 million, or $0.24 per diluted share in Q3 2024[177] - Return on average shareholders' equity for Q3 2025 was 13.84%, up from 2.83% in Q3 2024[178] - FTE net interest income for Q3 2025 was $26.1 million, compared to $20.8 million in Q3 2024, reflecting a 25.4% increase[180] - Noninterest income for the nine months ended September 30, 2025, totaled $6,012 thousand, an increase of $3,258 thousand or 118.3% compared to $2,754 thousand for the same period in 2024[194] - Noninterest expense increased by $1.8 million to $14.6 million for the three months ended September 30, 2025, representing a 13.7% increase compared to the same period in 2024[196] Interest and Loans - FTE interest income for Q3 2025 increased by $2.4 million, or 5.0%, to $50.7 million compared to Q3 2024[181] - Interest expense for Q3 2025 decreased by $2.9 million compared to Q3 2024, driven by a decrease in rates on interest-bearing deposits[182] - Total loans for Q3 2025 amounted to $2.7 billion, with a yield of 6.71% compared to 6.40% in Q3 2024[184] - The interest rate spread for Q3 2025 was 2.44%, up from 1.83% in Q3 2024[184] - Total loans amounted to $2,670,679 thousand as of September 30, 2025, with a net interest margin of 3.08%, up from 2.73% in the previous year[190] - The interest rate spread improved to 2.24% for the nine months ended September 30, 2025, compared to 1.83% for the same period in 2024[190] Assets and Equity - The total assets as of September 30, 2025, were $3.23 billion, compared to $3.16 billion as of September 30, 2024[184] - Total assets increased to $3,223,960 thousand as of September 30, 2025, compared to $3,187,377 thousand as of September 30, 2024, reflecting a growth of 1.15%[186] - Shareholders' equity increased by $22.3 million to $292.8 million as of September 30, 2025, primarily due to net income of $26.1 million for the nine months ended September 30, 2025[199] - Total assets decreased by $24.5 million or 0.7% to $3.2 billion as of September 30, 2025, compared to December 31, 2024[198] - Shareholders' equity increased to $292.8 million as of September 30, 2025, up by $22.3 million from December 31, 2024, primarily due to net income of $26.1 million[234] Credit Quality - The provision for credit losses decreased significantly to $0.4 million for the nine months ended September 30, 2025, compared to $18.2 million for the same period in 2024, indicating a reduction of 97.8%[192] - Nonperforming assets decreased to $18.25 million, representing 0.56% of total assets, down from $61.58 million or 1.88% at December 31, 2024[215] - Allowance for Credit Losses on loans (ACL-Loans) was $30.0 million, or 1.10% of total gross loans, compared to $29.0 million or 1.07% at December 31, 2024[220] - Nonaccrual loans totaled $16.97 million at September 30, 2025, a significant decrease from $53.28 million at December 31, 2024[215] Strategic Initiatives - The company aims for organic growth and strategic acquisitions to enhance its market position[175] - The company actively manages asset quality through underwriting practices and collection operations, with oversight from the Board of Directors[210] - The company evaluates creditworthiness and extends credit of up to 80% of the market value of collateral, with a maximum of 85% for owner-occupied commercial real estate[211] Liquidity and Capital Management - The Bank's liquidity management strategy relies primarily on deposits, with additional funding from purchased liabilities and cash flows from investment securities[231] - The Asset Liability Committee (ALCO) monitors liquidity positions daily and establishes guidelines to maintain prudent liquidity levels[232] - The Bank has established unsecured borrowing capacity with Zions Bank, PCBB, and ACBB, and maintains additional collateralized borrowing capacity with the FRB and FHLB[233] - The Bank's Common Equity Tier 1 capital ratio was 12.39% and total capital ratio was 12.39% as of September 30, 2025, exceeding regulatory minimums[236] Economic Factors - Inflation impacts the financial institution's cost structure, affecting liquidity, earnings, and shareholders' equity due to increased costs of funds and operating overhead[250]

Construction and Expansion Projects - Targa Resources Corp. announced the construction of multiple 275 MMcf/d cryogenic natural gas processing plants, with the Bull Moose plant expected to commence operations in Q1 2025 and the Pembrook II plant in Q3 2025[126]. - Targa announced the construction of the Speedway NGL Pipeline, expected to begin operations in Q3 2027, with an initial capacity of approximately 500 MBbl/d[131]. - The Blackcomb Joint Venture pipeline is designed to transport up to 2.5 Bcf/d of natural gas and is expected to be in service in the second half of 2026[133]. - Targa's joint venture with WhiteWater for the Traverse pipeline is expected to be in service in 2027, also designed to transport up to 2.5 Bcf/d of natural gas[134]. Financial Performance - Net income attributable to Targa Resources Corp. for the three months ended September 30, 2025, was $478.4 million, compared to $387.4 million for the same period in 2024, representing a 23.8% increase[165]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $3,616.3 million, up from $3,020.3 million in 2024, reflecting a 19.7% growth[165]. - Adjusted Cash Flow from Operations for the three months ended September 30, 2025, was $1,082.8 million, compared to $884.6 million in 2024, indicating a 22.4% increase[165]. - Total revenues for Q3 2025 were $4,151.2 million, an increase of 8% compared to $3,851.8 million in Q3 2024[170]. - For the nine months ended September 30, 2025, total revenues were $12,972.8 million, an increase of 8% from $11,976.2 million in the same period of 2024[170]. Capital Expenditures and Investments - Total capital expenditures for growth projects in the nine months ended September 30, 2025, amounted to $2,332.6 million, compared to $2,180.4 million in 2024, showing a 7% increase[165]. - Gross capital expenditures for the nine months ended September 30, 2025, were $2,372.4 million, an increase from $2,323.9 million in 2024, driven primarily by growth capital expenditures of $2,208.3 million[226]. - Cash outlays for capital projects in the nine months ended September 30, 2025, totaled $2,370.1 million, an increase from $2,238.9 million in 2024[226]. Shareholder Returns - A quarterly common dividend increase to $1.00 per share was declared, annualizing to $4.00 per share, effective Q1 2025[137]. - The company declared common stock dividends totaling $216.4 million for the three months ended September 30, 2025, with a per-share dividend of $1.00[225]. Debt and Liquidity - Targa entered into a new $3.5 billion senior revolving credit facility in February 2025, maturing on February 18, 2030[140]. - The company issued $2.0 billion in senior unsecured notes in February 2025 to fund the Badlands Transaction and for general corporate purposes[141]. - Cash and cash equivalents as of September 30, 2025, totaled $124.1 million, with total liquidity amounting to $2,302.4 million after accounting for outstanding borrowings[201][203]. - As of September 30, 2025, the company was in compliance with all covenants contained in its various debt agreements[214]. Operational Efficiency - The company focuses on increasing adjusted operating margin by limiting volume losses and reducing fuel consumption through enhanced efficiency measures[152]. - Operating expenses are primarily driven by labor, contract services, repair and maintenance, and ad valorem taxes, which remain stable but may increase with system expansions and inflation[154]. - The adjusted operating margin is impacted by volumes, commodity prices, and the contract mix, providing useful insights for investors[160]. Market Dynamics - The profitability is influenced by fee-based contracts, which are not directly tied to commodity price changes, but market dynamics can still affect profitability[149]. - Commodity sales increased by $252.9 million (8%) in Q3 2025, driven by higher natural gas prices ($322.3 million) and higher NGL volumes ($213.8 million) despite lower NGL prices[171]. - Fees from midstream services rose by $46.5 million (7%) in Q3 2025, primarily due to higher gas gathering and processing fees[170].

Financial Position - As of September 30, 2025, total assets amounted to $282,783,440, with cash held in the trust account at $281,963,221[13] - Total current liabilities were reported at $48,783, with accrued offering costs of $34,870 and accrued expenses of $13,913[13] - As of September 30, 2025, the Company had $570,210 in cash and working capital of $771,436[37] - The Trust Account held $281,963,221 in cash as of September 30, 2025[47] - The Company has determined it has sufficient funds to meet working capital needs for over one year from the issuance of the financial statements[39] - As of September 30, 2025, there were 1,200,000 Class A ordinary shares issued and outstanding, excluding 28,000,000 Class A ordinary shares subject to possible redemption[80] - The Company is authorized to issue 5,000,000 preference shares, but none were issued or outstanding as of September 30, 2025[79] Income and Earnings - For the three months ended September 30, 2025, the net income was $1,869,556, with a basic and diluted net income per share of $0.06 for Class A ordinary shares[16] - The company generated interest income of $1,963,221 from cash held in the trust account during the same period[16] - The net income for the period from March 20, 2025, to September 30, 2025, was allocated as follows: $1,138,466 for Class A shares and $731,089 for Class B shares[57] - Basic and diluted net income per share for Class A ordinary shares was reported at $0.06, while Class B ordinary shares also reported $0.06 for the same period[57] Initial Public Offering (IPO) - The company raised gross proceeds of $250,000,000 from its Initial Public Offering of 25,000,000 units at $10.00 per unit[25] - The Company completed its Initial Public Offering on August 1, 2025, raising gross proceeds of $250,000,000 from the sale of 25,000,000 Units at $10.00 per Unit[65] - An additional $30,000,000 was raised from the partial exercise of the over-allotment option, resulting in total gross proceeds of $280,000,000[65] - The underwriters partially exercised the over-allotment option, purchasing 3,000,000 additional units at $10.00 per unit, generating gross proceeds of $30,000,000[29] - The total gross proceeds from the IPO and private placement amounted to $252 million, with $250 million placed in a Trust Account[132] Business Operations - The company has not yet commenced any operations and will not generate operating revenues until after completing its initial business combination[24] - The Company has not generated any operating revenues to date and does not expect to until after completing a business combination[102] - The Company intends to focus on industries that complement its management team's background for future business combinations[23] - The Company has until 18 months from the IPO closing to complete a Business Combination, with a possible three-month extension[34] Costs and Expenses - The Company incurred offering costs of $3,582,634 related to the Initial Public Offering, with $3,438,859 allocated to Class A ordinary shares subject to redemption[48] - The Company expects to incur significant costs related to being a public company and due diligence expenses for business combinations[101] - The Company has committed to pay $20,000 per month for administrative services for up to 18 months, totaling $360,000 if extended[72] - The Company will reimburse the Sponsor up to $20,000 per month for office space and administrative support until the completion of its Business Combination[113] Shareholder Information - Shareholders can redeem their Public Shares for a pro rata portion of the Trust Account, initially valued at $10.00 per share[32] - As of September 30, 2025, there are 28,000,000 Class A ordinary shares subject to possible redemption, with a redemption value of $281,963,221[53] - The Company has two classes of ordinary shares, Class A and Class B, with income and losses shared pro rata among both classes[56] - The Class B ordinary shares will convert into Class A ordinary shares on a one-for-one basis upon the consummation of the initial business combination[82] Financial Instruments and Liabilities - The Company has evaluated its financial instruments and classified the public and private warrants under equity treatment[52] - The exercise price of the warrants is set at $11.50 per share, subject to adjustments based on certain conditions[87] - The Company has borrowed $214,461 under a promissory note with the Sponsor, with a total borrowing capacity of $350,000[71] - As of September 30, 2025, no amounts have been drawn under the Working Capital Loans, which can total up to $2,500,000[73] Compliance and Risk Management - The Company has not recognized any income tax provision for the period from inception to September 30, 2025, due to its status as a BVI business company[51] - There were no unrecognized tax benefits as of September 30, 2025, and no amounts accrued for interest and penalties[50] - The Company is exposed to geopolitical risks that could impact its search for an initial Business Combination due to ongoing global conflicts[61] - The Company has established processes to manage cybersecurity risks, relying on third-party technologies and personnel for protection[125] Legal and Regulatory Matters - The Company has not faced any litigation or legal proceedings as of the reporting date[122] - The management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective at a reasonable assurance level[118] - As of September 30, 2025, there were no critical accounting estimates disclosed by the Company[114] Miscellaneous - The Company issued 12,321,429 founder shares to the Sponsor for a total purchase price of $25,000, with 321,429 shares subject to forfeiture based on the underwriters' over-allotment[68] - The Company issued 1,000,000 representative shares as compensation, subject to a 180-day lock-up period[74] - The fair value of the over-allotment liability was measured at $1,290,375 as of August 1, 2025[91] - The fair value of Public Warrants was determined to be $8,061,250, classified within shareholders' equity[91]

Sales Performance - Sales decreased by $8.7 million, or 1.1%, in Q3 2025 compared to Q3 2024, with a 2.9% decline excluding foreign exchange impacts[71] - For the nine months ended September 30, 2025, sales increased by $5.7 million, or 0.2%, with a 0.2% decline excluding foreign exchange impacts[72] - Sales in the Color, Additives and Inks segment decreased by $11.6 million, or 2.2%, in Q3 2025, while the Specialty Engineered Materials segment saw an increase of $3.1 million, or 1.1%[84][88] Gross Margin and Operating Income - Gross margin as a percentage of sales was 30.4% for Q3 2025, down from 32.1% in Q3 2024, primarily due to higher environmental remediation and restructuring charges[73] - Operating income decreased by $10.1 million, or 13.1%, in Q3 2025 compared to Q3 2024, and decreased by $79.8 million, or 32.7%, for the nine months[83] - Operating income for the Specialty Engineered Materials segment decreased by $8.0 million for the nine months ended September 30, 2025, due to higher operating costs[90] Expenses - Selling and administrative expenses decreased by $6.4 million in Q3 2025 but increased by $68.6 million for the nine months, mainly due to an impairment charge related to the S/4HANA project[76] - Corporate costs increased by $9.3 million in Q3 2025, primarily due to higher environmental remediation and restructuring charges[91] - Corporate costs increased by $78.1 million for the nine months ended September 30, 2025, primarily due to a $71.6 million impairment charge related to the cessation of the S/4HANA development[92] Cash Flow and Liquidity - Net cash provided by operating activities decreased by $0.4 million during the nine months ended September 30, 2025, compared to the same period in 2024, mainly due to higher incentive compensation payments and increased working capital[97] - Net cash used by investing activities was $64.2 million for the nine months ended September 30, 2025, compared to $79.5 million in 2024, reflecting capital expenditures[98] - Net cash used by financing activities was $181.7 million for the nine months ended September 30, 2025, primarily due to $100.2 million in long-term borrowings payments and $74.1 million in dividends paid[98] - As of September 30, 2025, total liquidity was $932.9 million, consisting of $445.6 million in cash and cash equivalents and $487.3 million in revolving credit availability[94] - Approximately 76% of the company's cash and cash equivalents were held outside the United States as of September 30, 2025[94] Debt and Financing - The company made voluntary prepayments of $100.0 million on its senior secured term loan during the nine months ended September 30, 2025[102] - The company refinanced its senior secured term loan on March 12, 2025, reducing the interest rate by 25 basis points[101] - Aggregate maturities of the principal amount of debt total $1,999.1 million, with $621.1 million due in 2029 and $1,376.5 million due thereafter[101] - The company expects to meet cash requirements for the remainder of 2025 through cash on hand, cash from operations, and available liquidity under its revolving credit facility[95] Interest and Tax - Interest expense, net decreased by $2.7 million in Q3 2025, driven by reduced interest rates and $100 million in prepayments on the senior secured term loan[77] - The effective tax rate for Q3 2025 was 23.5%, up from 22.5% in Q3 2024, influenced by jurisdictional earnings mix[78]

Financial Performance - Net premiums earned for Q3 2025 were $328,431,000, an increase of 9.4% from $300,185,000 in Q3 2024[129]. - Total revenues for the nine months ended September 30, 2025, reached $1,020,606,000, up from $920,132,000 in the same period of 2024, reflecting an increase of 10.9%[129]. - For the nine-month period ended September 30, 2025, net income was $79,837,000, compared to $30,515,000 in the same period of 2024, representing a substantial increase of 161.5%[129]. - Direct written premium for the three months ended September 30, 2025, was $311,878,000, an increase of 5.5% compared to $295,729,000 in 2024, while for the nine months, it rose by 11.6% to $1,005,908,000 from $901,286,000[131]. - Net earned premium for the three months ended September 30, 2025, was $328,431,000, reflecting a 9.4% increase from $300,185,000 in 2024, and for the nine months, it increased by 9.6% to $951,644,000 from $868,613,000[133]. - For the nine months ended September 30, 2025, total net earned premium increased to $951.6 million, up from $868.6 million in the same period of 2024, representing an increase of 9.5%[168]. Loss Ratios and Underwriting Performance - The net loss ratio improved to 57.3% in Q3 2025 from 62.3% in Q3 2024, indicating better loss management[129]. - The combined ratio for Q3 2025 was 91.9%, a significant improvement from 98.2% in Q3 2024, demonstrating enhanced underwriting performance[129]. - The underlying loss ratio for Q3 2025 was 56.0%, down from 57.9% in Q3 2024, indicating improved operational efficiency[129]. - The net loss ratio for commercial lines in the three months ended September 30, 2025, was 56.7%, compared to 59.9% in 2024, indicating improved performance across major lines[148]. - The net loss ratio for commercial lines improved to 59.7% in the nine months ended September 30, 2025, compared to 66.1% in the same period of 2024, reflecting a 6.4 percentage point improvement[149]. - The net loss ratio for workers' compensation improved by 35.2 points in the third quarter of 2025 compared to the same period in 2024[156]. - The net loss ratio for fidelity and surety improved by 4.0 points in the third quarter of 2025 compared to the same period in 2024[157]. - The net loss ratio for reinsurance assumed improved by 18.3 points in the third quarter of 2025 compared to the same period in 2024[158]. Investment Performance - Net investment income increased to $25,992,000 in Q3 2025, compared to $24,459,000 in Q3 2024, marking a growth of 6.3%[129]. - Net investment income for the third quarter of 2025 was $26.0 million, an increase of $1.5 million compared to the same period in 2024, while for the nine-month period, it rose to $71.1 million, up by $12.3 million[137][138]. - The investment portfolio increased to $2.3 billion at September 30, 2025, up from $2.1 billion at December 31, 2024, marking a growth of $178 million[168]. - The carrying value of fixed maturity securities as of September 30, 2025, was $2,016.4 million, with AAA rated securities comprising 28.9% and AA rated securities 38.6%[171]. - The weighted average effective duration of the fixed maturity securities portfolio increased to 4.29 years as of September 30, 2025, from 4.22 years at December 31, 2024[174]. - Net unrealized investment losses improved to $28.5 million as of September 30, 2025, compared to $72.2 million at December 31, 2024, due to a decrease in bond market interest rates[175]. Operational Efficiency - The underwriting expense ratio decreased to 34.6% in the third quarter of 2025, down from 35.9% in the same period of 2024, indicating improved operational efficiency[160]. - The company reported a favorable reserve development of (0.5) for the nine months ended September 30, 2025, compared to no unfavorable development in the same period of 2024[129]. - The company experienced favorable reserve development of $0.1 million and $5.1 million for prior accident years during the three- and nine-month periods ended September 30, 2025, respectively[144]. Cash Flow and Equity - Cash provided by operating activities was $149.9 million for the nine-month period ended September 30, 2025, down from $184.0 million in the same period of 2024[186]. - Net cash flows used in investing activities were $133.6 million for the nine-month period ended September 30, 2025, compared to $143.1 million for the same period in 2024[189]. - Stockholders' equity increased to $898.7 million at September 30, 2025, from $781.5 million at December 31, 2024, with a book value per share of $35.22, reflecting a 14.4% increase[195]. - Dividends paid to shareholders remained consistent at $12.2 million for both the nine-month periods ended September 30, 2025, and 2024[192]. - The company anticipates sufficient cash flows to meet future liquidity needs, with cash and cash equivalents including $47.8 million in money market accounts as of September 30, 2025[185]. Strategic Changes - The company has discontinued exposure to direct personal lines of business as of September 30, 2025, following its strategic withdrawal in 2020[112]. - Approximately 48.9% of property and casualty premiums were written in Texas, California, Iowa, Missouri, and New Jersey for the nine-month period ended September 30, 2025[123]. - Assumed premiums decreased by $5.1 million and $5.4 million in the three- and nine-month periods ended September 30, 2025, respectively, due to targeted management actions[135]. - The company has a remaining potential contractual obligation of $17.7 million related to capital contributions for limited liability partnership investments as of September 30, 2025[194].

Financial Performance - Net sales for the thirteen weeks ended September 28, 2025, were $698.9 million, a decline of $19.2 million or 2.7% compared to $718.1 million for the same period in 2024[122] - Gross profit decreased by $19.8 million or 8.3%, totaling $218.2 million for the thirteen weeks ended September 28, 2025[122] - Operating income fell to $41.7 million, down $15.9 million or 27.6% from $57.6 million in the prior year[122] - Net income for the period was $18.1 million, a decrease of $11.0 million or 37.8% compared to $29.1 million in the same quarter of 2024[122] - Net sales for the thirty-nine weeks ended September 28, 2025, were $2,090.1 million, an increase of $57.4 million or 2.8% compared to $2,032.7 million for the same period in 2024, driven primarily by the acquisition of Supreme[137] - Gross profit decreased by $13.6 million or 2.0% to $660.1 million, reflecting weaker overall end market demand[136] - Operating income for the thirty-nine weeks ended September 28, 2025, was $146.1 million, a decrease of $52.1 million or 26.3% compared to $198.2 million in 2024[136] - Net income fell to $68.7 million, down $43.2 million or 38.6% from $111.9 million in the prior year[136] Costs and Expenses - Cost of products sold increased by $0.6 million or 0.1% to $480.7 million, representing 68.8% of net sales[125] - Selling, general and administrative expenses rose by $1.2 million or 0.7% to $167.5 million, accounting for 24.0% of net sales[126] - Cost of products sold increased by $71.0 million or 5.2% to $1,430.0 million, representing 68.4% of net sales, compared to 66.9% in the prior year[139] - Selling, general and administrative expenses rose by $30.1 million or 6.7% to $480.9 million, influenced by the inclusion of Supreme and strategic investments[140] - Restructuring charges were $13.9 million, up from $11.0 million in the prior year, primarily related to severance and employee-related costs[141] Debt and Financing - The company refinanced its debt in June 2024, completing the offering of $700.0 million in Senior Notes to fund the acquisition of Supreme and refinance existing debt[148] - As of September 28, 2025, the company had $954.1 million in outstanding third-party borrowings, net of deferred financing fees[152] - Interest expense increased to $56.5 million for the thirty-nine weeks ended September 28, 2025, compared to $54.7 million in the prior year, attributed to a higher average outstanding debt balance[142] - The company is required to maintain a minimum interest coverage ratio of 3.00 to 1.00 and a net leverage ratio not exceeding 3.25 to 1.00 starting March 30, 2025[151] - The company was in compliance with all debt covenants under the 2024 Credit Agreement as of September 28, 2025[151] Cash Flow and Investments - Net cash provided by operating activities was $108.8 million for the first three quarters of 2025, down from $176.9 million in the same period of 2024[154] - Net cash used in investing activities decreased to $40.1 million in the first three quarters of 2025, compared to $541.9 million in the same period of 2024, primarily due to the acquisition of Supreme[155] - Net cash used in financing activities was $79.8 million in the first three quarters of 2025, a significant decrease from net cash provided of $331.3 million in the same period of 2024[156] Strategic Actions - The company acquired Dura Investment Holdings LLC on July 10, 2024, enhancing its portfolio in the premium cabinetry market[112] - A definitive agreement was announced on August 6, 2025, for a merger with American Woodmark, expected to close in early 2026[113] - The company is actively monitoring trade policies and tariffs, which could impact input costs and supply chain dynamics[114] - Restructuring charges decreased to $2.6 million in the latest quarter from $7.8 million in the same quarter of the previous year[129] Tax and Compliance - The effective tax rate for the thirty-nine weeks ended September 28, 2025, was 23.4%, a decrease from 24.6% in the prior year, primarily due to changes in foreign exclusions and lower state and local income taxes[144] Inventory and Receivables - In the first three quarters of 2025, accounts receivable increased by $26.6 million, while inventory declined by $4.4 million, reflecting improved inventory management[154] - Depreciation expense increased to $51.2 million in the first three quarters of 2025, compared to $39.5 million in the same period of 2024, due to the full-year inclusion of Supreme[154] - The company believes its cash and cash equivalents, along with operating cash flows and credit facilities, will be sufficient to meet working capital and capital expenditure needs[157] - The company amended its credit agreement to obtain a $375.0 million term loan to settle American Woodmark's existing indebtedness, contingent on the closing of the Merger[152]