Sales Performance - In fiscal 2025, 74.2% of NTIC's consolidated net sales, amounting to $62,488,397, were derived from ZERUST® corrosion prevention solutions, reflecting a decrease of 1.0% from fiscal 2024[30]. - NTIC's consolidated net sales from Natur-Tec® resin compounds and finished products were $21,746,077 in fiscal 2025, representing a slight decrease of 1.0% compared to fiscal 2024, accounting for 25.8% of total consolidated net sales[43]. - Sales of ZERUST® corrosion prevention solutions to the oil and gas industry totaled $7,317,704 in fiscal 2025, a decrease of 20.7% from fiscal 2024, although consistent re-orders from large customers were noted[37]. Product Offerings - NTIC's ZERUST® packaging products utilize proprietary chemical formulations that inhibit rust and corrosion, providing significant savings in labor, material, and capital expenditures compared to traditional methods[31]. - The Z-CIS® technical services system has been utilized by several major automotive companies to improve and control their corrosion management processes[36]. - Natur-Tec® resin compounds are engineered for high performance and reduced cost, allowing for processing using conventional plastic manufacturing methods[44]. - Natur-Tec® flexible film resin compounds are fully compostable and certified by organizations such as BPI and TÜV Austria, meeting international standards for compostable plastics[47]. - NTIC has developed unique corrosion inhibiting solutions for the oil and gas industry, addressing aggressive corrosion in critical infrastructure and extending service life[38]. - The introduction of products like AutoFog allows for rapid VCI saturation in large volume spaces, enhancing corrosion protection capabilities[45]. - NTIC's ZERUST® solutions for oil and gas infrastructure are tailored to customer requirements, addressing specific environmental conditions and enhancing protection against corrosion[42]. - Natur-Tec® compostable injection molding resin compounds are made with at least 90% bio-based materials, enhancing sustainability by replacing petroleum-based plastics[49]. - Natur-Bag® product line includes 15 different compostable trash bag sizes, certified fully compostable, and marketed through retail and industrial channels[50]. Market Trends - NTIC expects the U.S. market for bio-plastic solutions to continue growing due to legislation aimed at reducing single-use plastics, with a significant ban on plastic bags enacted in multiple states[54]. Research and Development - NTIC anticipates spending between $4,900,000 and $5,100,000 on research and development activities in fiscal 2026[61]. Financial Performance - NTIC had an estimated order backlog of $4,184,415 as of August 31, 2025, down from $5,837,430 as of August 31, 2024[71]. - NTIC's revenue is primarily derived from one-time purchase orders and short-term contracts, with revenue recognized upon the transfer of control of goods[298]. - The company assesses its investments in joint ventures for impairment annually, with additional evaluations performed if financial performance expectations are not met[295]. - Goodwill is tested for impairment annually, with assessments made more frequently if adverse changes in circumstances occur[300]. - NTIC utilizes the asset and liability method for accounting income taxes, recognizing deferred tax assets and liabilities based on expected future tax consequences[305][306]. - The company measures stock-based compensation costs based on the fair value of equity instruments issued, recognizing costs over the service period[304]. - NTIC's consolidated financial statements include accounts of its wholly owned subsidiaries but do not include accounts of its joint ventures[294]. - The company records trade receivables and fees for services provided to joint ventures as separate line items in its consolidated financial statements[289]. - NTIC's revenue recognition policy for joint ventures aligns with its policy for unaffiliated customers, ensuring consistency in financial reporting[290]. Workforce and Management - As of August 31, 2025, NTIC had a total of 94 employees, with 91 full-time and 3 part-time employees, including 28 in sales and marketing, 24 in research and development, 22 in administration, and 20 in production[73]. - NTIC's North American workforce is composed of 41% female employees and 31% racially or ethnically diverse individuals[74]. - The average tenure of NTIC employees is nine years, indicating a stable workforce[75]. - NTIC had only one lost time incident in both fiscal 2025 and 2024, reflecting strong safety performance[80]. - NTIC's management team has an average tenure of 17 years, suggesting experienced leadership[76]. - The company offers competitive compensation and benefits, including a 401(k) plan with matching contributions and profit-sharing options[84][85]. - NTIC provides employees with immediate eligibility for its medical plan, which has no co-pay and does not require premium contributions[86]. - Full-time employees are eligible for paid holidays and vacation time ranging from 15 to 25 days based on service length[87]. - NTIC is committed to equal opportunity and has policies in place to prevent discrimination and harassment[81][82]. - The company emphasizes health, safety, environment, and security (HSE&S) as core values and is dedicated to continuous improvement in these areas[78][79]. Joint Ventures - NTIC has established a joint venture network for approximately 30 years, participating in 15 active joint ventures across North America, Europe, and Asia[290]. - Revenue recognition for sales to joint ventures occurs when products are shipped, with fees based on either a flat fee or a percentage of sales[291][299].

EXHIBIT 99.1 Copa Holdings Reports Third-Quarter Financial Results Panama City, Panama --- November 19, 2025. Copa Holdings , S.A. (NYSE: CPA), today announced financial results for the third quarter of 2025 (3Q25), delivering another quarter of strong profitability and operational excellence. Key highlights for the quarter include: 1 Subsequent events The terms "Copa Holdings" and the "Company" refer to the consolidated entity. The financial information presented in this release, unless otherwise indicated ...

Financial Performance - Cerence generated revenue of $251.8 million in fiscal year 2025, a decrease of 24% compared to $331.5 million in fiscal year 2024[30]. - The company recorded a net loss of $18.7 million for fiscal year 2025, a significant improvement from a net loss of $588.1 million in fiscal year 2024, reflecting a 97% change[30]. - Total revenues for fiscal year 2025 were $251.8 million, a decrease of $79.7 million, or 24.0%, from $331.5 million in fiscal year 2024[203]. - License revenue for fiscal year 2025 was $140.6 million, an increase of $15.9 million, or 12.7%, from $124.7 million in fiscal year 2024, representing 55.9% of total revenue[204]. - Connected services revenue for fiscal year 2025 was $53.4 million, a decrease of $80.1 million, or 60.0%, from $133.4 million in fiscal year 2024, accounting for 21.2% of total revenue[205]. - Professional services revenue for fiscal year 2025 was $57.8 million, a decrease of $15.5 million, or 21.2%, from $73.3 million in fiscal year 2024, representing 23.0% of total revenue[206]. - Total gross profit for fiscal year 2025 was $183.1 million, a decrease of $61.1 million, or 25.0%, from $244.3 million in fiscal year 2024[212]. - Operating margin improved by 174.0 percentage points from negative 174.9% to negative 0.9%[192]. - Cash from operating activities increased by $44.0 million, or 255.7%, from $17.2 million to $61.2 million[192]. Market Presence and Partnerships - Cerence's solutions have been shipped in over 525 million automobiles to date, including over 25 million new vehicles in fiscal year 2025 alone[29]. - Approximately 52% of all cars shipped during the fiscal year ended September 30, 2025, included Cerence technologies, indicating strong market penetration[29]. - The company has signed several strategic, long-term partnership agreements with global automakers to deploy its Cerence xUI platform for future in-cabin experiences[41]. - Approximately 50% of the company's revenue in fiscal year 2025 came from major OEMs, including BMW, Mercedes-Benz, and Toyota, while the other 50% came from tier 1 suppliers like HARMAN and Bosch[52]. - Revenue distribution in fiscal year 2025 was approximately 16% from the Americas, 42% from Europe, and 42% from Asia, showcasing a geographically diverse revenue base[53]. Research and Development - Research and development expenses were approximately $123.3 million for fiscal year 2023, $121.6 million for fiscal year 2024, and $97.8 million for fiscal year 2025, indicating a focus on continued investment in AI-powered solutions[50][51]. - The company employs around 700 research and development personnel globally, emphasizing its commitment to innovation and technical expertise[50]. - The company holds 832 patents and patent applications as of September 30, 2025, providing meaningful protection for its products and technologies[65]. Strategic Plans and Restructuring - The company has implemented restructuring plans in 2024 and 2025 aimed at reducing operating expenses and positioning for profitable growth, with the 2025 Plan expected to be substantially complete by the end of Q1 fiscal year 2026[58][59]. - The company has implemented the 2025 Plan to streamline operations, which may lead to higher restructuring charges and operational disruptions[73]. - The implementation of the 2024 Plan was substantially complete by the end of the first quarter of fiscal year 2025[201]. Risks and Challenges - Supply chain disruptions, inflation, and higher interest rates have adversely affected business operations and results[71]. - The company faces intense competition in the automotive voice assistance market, with competitors including SoundHound and iFlyTek, but believes it has competitive advantages in scale and technology[47][68]. - The company faces risks related to the loss of major customers, which could materially affect business and financial condition[80]. - Pricing pressures from major OEMs could negatively impact sales and profit margins, with potential fixed price commitments for long-term contracts[76]. - Cybersecurity incidents could lead to significant reputational and financial harm, including loss of revenue and increased remediation costs[91]. - The company has faced challenges in maintaining customer relationships due to potential data privacy breaches, which could inhibit growth[89]. - The company is subject to risks related to intellectual property claims, which could result in costly litigation and affect its competitive position[120]. Financial Obligations and Debt - As of September 30, 2025, the company had $210 million of 1.50% convertible senior notes due July 1, 2028 outstanding[128]. - The company issued an aggregate principal amount of $175 million in 3.00% convertible senior notes due June 1, 2025[128]. - The company may incur additional indebtedness to meet future financing needs, which could negatively impact its financial condition[129]. - The company may not have sufficient cash flow to service its debt obligations, which could lead to defaults[130]. - Holders of the 2028 Notes have the right to require the company to repurchase their notes at a price equal to 100% of the principal amount plus accrued interest upon a fundamental change[132]. - The company may face challenges in obtaining additional financing on favorable terms, which could restrict its operational flexibility[133]. Shareholder Information - Cerence has not paid any dividends since its formation, with future dividend payments subject to board discretion and capital needs[173]. - As of November 7, 2025, there were 415 holders of record for Cerence's common stock, reflecting the company's shareholder base[172]. - The cumulative total shareholder return for Cerence's common stock was $25.05 as of September 30, 2025, compared to $100 on October 1, 2020[178]. Cybersecurity and Data Privacy - The company has implemented a cybersecurity risk management program, with no identified incidents materially affecting operations or financial condition[161][160]. - The company faces significant costs related to enhancing information security measures against cyber threats, with no assurance that these measures will prevent data breaches[93]. - Compliance with global privacy and data security requirements may lead to additional costs and liabilities, impacting the company's ability to collect and process data globally[94]. - The European General Data Protection Regulation (GDPR) imposes stringent data protection obligations, increasing potential penalties for non-compliance[95]. - The company is subject to evolving data protection laws in various jurisdictions, including the U.S., EU, UK, and others, which may require substantial operational adjustments and costs[101].

Financial Performance - Polar Power reported net sales of $1.3 million for Q3 2025, a 74% decline from $4.9 million in Q3 2024[3][11] - The company experienced a gross loss of $2.26 million in Q3 2025, a decrease of 259% compared to a gross profit of $1.42 million in Q3 2024[15] - The company recorded a net loss of $4.08 million, or $(1.63) per share, for Q3 2025, compared to a net profit of $0.01 million in Q3 2024[21] - Net sales for the three months ended September 30, 2025, were $1,273 million, a decrease from $4,914 million in the same period of 2024, representing a decline of approximately 74%[28] - Gross profit for the three months ended September 30, 2025, was a loss of $2,260 million compared to a profit of $1,424 million in 2024, indicating a significant deterioration in profitability[28] - The net loss for the three months ended September 30, 2025, was $4,085 million, compared to a net income of $13 million in the same period of 2024[28] - Total other income (expenses), net for the three months ended September 30, 2025, was $(208) million, compared to $(27) million in 2024, reflecting a decline in other income sources[28] Operating Expenses - Operating expenses decreased by $0.22 million, but were offset by a $0.45 million impairment of right-to-use assets[3] - Total operating expenses for the three months ended September 30, 2025, were $1,617 million, an increase from $1,384 million in 2024, reflecting a rise of about 17%[28] - Interest expense and finance costs for the nine months ended September 30, 2025, totaled $543 million, compared to $496 million in 2024, indicating an increase of approximately 9%[30] Sales and Customer Concentration - Sales to the largest U.S. telecommunications customer accounted for 63% of total net sales in Q3 2025, compared to 46% in Q3 2024[12] - Polar Power's international sales represented 0% of total net sales in Q3 2025, down from 10% in Q3 2024[13] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, resulted in a net cash used of $589 million, compared to $400 million in the same period of 2024[30] - Cash and cash equivalents at the end of the period were $4 million, a significant decrease from $498 million at the beginning of the period[30] Inventory and R&D - The company recorded an inventory write-down of $1,967 million for the nine months ended September 30, 2025, which was not present in the same period of 2024[30] - Research and development expenses decreased by 9% to $157,000 in Q3 2025, with plans to recruit additional engineers in 2026[17] Fundraising - The company raised $0.74 million in October 2025 by selling shares to fund operations[8] Backlog - The company's backlog increased to $5.3 million as of September 30, 2025, up from $1.2 million on June 30, 2025[7]

Financial Performance - Revenue for fiscal year 2025 increased to $5,431,276, representing a 2.4% growth compared to $5,306,197 in fiscal year 2024[183]. - Gross profit for fiscal year 2025 was $1,333,443, a 6.5% increase from $1,251,652 in fiscal year 2024, with a gross profit margin of 24.6%[183]. - Operating income rose to $528,289 in fiscal year 2025, up from $488,499 in fiscal year 2024, resulting in an operating margin of 9.7%[183]. - Net income for the year ended September 30, 2025, was $319,034 thousand, compared to $306,914 thousand in 2024[243]. - Adjusted EBITDA for fiscal year 2025 was $701,554 thousand, with an adjusted EBITDA margin of 12.9%, up from 11.6% in 2024[243]. Segment Performance - The U.S. Federal Services Segment reported revenue of $3,067,691 for fiscal year 2025, a 12.1% increase from $2,737,244 in fiscal year 2024[192]. - The U.S. Services Segment experienced a revenue decline to $1,763,691, down 7.7% from $1,911,813 in fiscal year 2024[197]. - The Outside the U.S. Segment's revenue decreased to $599,894, an 8.7% decline from $657,140 in fiscal year 2024, primarily due to business disposals[201]. - The company anticipates operating margins for the U.S. Federal Services Segment in fiscal year 2026 to range between 15.5% and 16%[195]. - The company expects operating margins for the Outside the U.S. Segment in fiscal year 2026 to range between 3% to 5%[203]. Cash Flow and Debt - The net cash provided by operating activities decreased by $85.9 million to $429.4 million in fiscal year 2025 compared to $515.3 million in fiscal year 2024[212]. - The company reported a free cash flow of $366.2 million for fiscal year 2025, down from $401.1 million in fiscal year 2024[217]. - The total debt under the Credit Agreement as of September 30, 2025, was $1.35 billion, with an additional $750 million available through a revolving credit facility[218]. - The Consolidated Net Total Leverage Ratio as of September 30, 2025, was 1.51, compared to 1.37 in the previous year[228]. - The Consolidated Net Interest Coverage Ratio improved to 9.25 for fiscal year 2025, up from 8.54 in fiscal year 2024[228]. Shareholder Returns - The company utilized $447.5 million in fiscal year 2025 to repurchase 5.8 million shares of common stock, funded by operating cash flows and a $250 million expansion of its credit facility[214]. Assets and Investments - Cash and cash equivalents stood at $222.4 million as of September 30, 2025, indicating a stable liquidity position[208]. - The company made significant investments in technology upgrades for federal medical disability examinations, largely completed in the middle of fiscal year 2025[216]. - As of September 30, 2025, the company reported $1.78 billion in goodwill and $538.3 million in net intangible assets[235]. - The company held net assets denominated in currencies other than the U.S. Dollar amounting to $266.8 million as of September 30, 2025[246]. Tax and Exchange Rate Impact - The effective tax rate for fiscal year 2025 was 28.3%, up from 24.5% in fiscal year 2024, impacted by the disposal of businesses in Australia and Korea[189]. - A hypothetical 10% favorable exchange rate movement would increase comprehensive income by $26,681 thousand[248]. - A 100 basis point increase in interest rates would decrease net income by $6,969 thousand, while a decrease would increase net income by the same amount[251]. Other Financial Metrics - The company experienced a rise in Days Sales Outstanding (DSO) to 62 days as of September 30, 2025, up from 61 days in the previous year[216]. - The company has no collateral posted with its counterparty related to derivatives as of September 30, 2025[252].

Growth and Market Strategy - Ashland has set aggressive growth goals for its reportable segments, which may be impacted by risks such as failure to optimize assets and integrate acquisitions[93]. - More than half of Ashland's net sales for fiscal 2025 were to customers outside of North America, indicating a strong reliance on international markets[106]. - Ashland operates in over 100 countries, with a significant portion of sales generated outside the United States[138]. Financial Risks and Liabilities - Ashland's substantial indebtedness could limit its ability to pursue strategic acquisitions and respond to changing market conditions[112]. - The company has financial exposure to liabilities from pending claims, including those related to asbestos, which could adversely affect results of operations and cash flow[134]. - The complexity of the global tax environment may adversely affect Ashland's business and financial condition[138]. - Changes in the valuation of deferred tax assets and liabilities could impact Ashland's financial results[138]. - The company faces risks related to potential new taxes and disagreements with tax authorities[138]. Environmental and Regulatory Challenges - The company is committed to 2032 targets through the Science Based Targets Initiative (SBTi) to limit global warming to no more than 1.5C above preindustrial levels[103]. - Ashland's operations are vulnerable to climate change impacts, which may lead to supply chain disruptions and increased raw material pricing[97]. - Ashland is subject to extensive environmental regulations, incurring significant costs for compliance, which could impact cash flow and profitability[130][131]. - Evolving ESG regulations may require significant resources and data management systems, impacting Ashland's ability to manage materials effectively[137]. - Changes in laws and regulations could increase operational costs and restrict business strategies, complicating compliance across its global footprint[135][136]. Operational and Market Risks - Rising and volatile raw material prices, especially hydrocarbon derivatives, could negatively impact Ashland's costs and results of operations[116]. - The company faces significant geopolitical risks that could disrupt supply chains and limit market access, particularly in the Middle East and Europe[108]. - Business disruptions from natural disasters and operational risks could seriously harm Ashland's financial performance and operational capabilities[95]. - Ashland operates in highly competitive markets, facing pressure on prices and margins, which may adversely affect its reportable segments and results of operations[120]. Innovation and Human Resources - Ashland's ability to innovate and develop new products is critical for maintaining its competitive position in the specialty additives and materials industry[114]. - The company is under pressure to provide sustainable product offerings in response to increasing consumer demand for environmentally friendly products[115]. - Ashland's success depends on attracting and retaining key employees, with reliance on senior management for strategic direction and growth execution[121]. Cybersecurity and Intellectual Property - The company faces risks related to cybersecurity threats, with potential disruptions to IT systems that could harm reputation and financial condition[123][125]. - Ashland's intellectual property rights may be challenged or rendered unenforceable, potentially harming its competitive position and profitability[126][127]. - The company may face product liability claims and recalls, which could lead to substantial expenditures and affect consumer confidence in its products[129].

Business Growth and Performance - The number of registered buyers increased from 5.5 million to 6.0 million, representing a growth of 9.5%[14] - Gross merchandise volume (GMV) for the year ended September 30, 2025, was $1.6 billion, with total revenue of $477.7 million[14] - Over the past five years, GMV has grown at a compound annual growth rate (CAGR) of 20.4%[14] - The company conducted over 3.1 million online transactions generating $4.1 billion in GMV over the past three fiscal years[13] - E-commerce sales accounted for 16.3% of total sales in Q2 2025, a 5.3% increase from the previous year[23] - The registered buyer base resulted in 4.1 million auction participants in online auctions during the year ended September 30, 2025[30] Acquisitions and Expansions - The acquisition of Sierra Auction Management, Inc. on January 1, 2024, expanded the company's auction capabilities[16] - The company formed a new Software Solutions operating segment through the acquisition of Auction Software on January 31, 2025[15] - The retail business unit benefited from the acquisition of Auction Software and its Auction.io platform, which helped launch the new direct-to-consumer brand, Retail Rush[73] - The Auction Software acquisition also created a new Software Solutions segment, including private label auction software delivery, catering to individual seller sites across various industries[74] Market Trends and Projections - The global logistics market, including reverse logistics, was valued at $10.2 trillion in 2023 and is projected to reach $20.1 trillion by 2033, growing at a CAGR of 7.3%[20] - The global construction equipment market is expected to reach $191.7 billion by the end of 2034, with a CAGR of 4.1% from 2024 to 2034, driven by urbanization and government funding for infrastructure projects[55] Technology and Innovation - The AllSurplus marketplace provides an aggregated view of all assets available globally, utilizing AI and machine learning for optimized buyer experience[42] - The company leverages technology and innovation to improve buyer experience, which attracts more buyers and drives higher net recovery for sellers[45] - The company invests significantly in technology and IT infrastructure to deliver value to buyers, sellers, and employees, creating a competitive advantage through tailored solutions[72] - The flagship marketplace platform combines over 20 years of experience with modern user experience enhancements, utilizing AI and ML algorithms for efficient asset location[71] Sustainability and Social Responsibility - The company is focused on sustainable solutions for surplus asset management, helping sellers minimize waste and maximize value for their buyers and communities[56] - The company emphasizes sustainability efforts by enabling the continued use of surplus assets, reducing energy and emissions through remote work structures[103] Risk Management and Challenges - The company faces competition from various online and offline channels, including e-commerce providers and government agencies, as it broadens its product offerings[86] - The company faces risks related to sourcing sufficient assets and attracting qualified buyers, which are critical for revenue growth[115] - The company acknowledges the impact of global economic conditions and macro-trends on its business and operational results[114] - The company is aware of the potential volatility in operating results and stock price due to market fluctuations and seasonal demand[114] - The company may face challenges in financing future operations, as additional funds may not be available on favorable terms, impacting growth and strategic initiatives[165] Cybersecurity and Data Privacy - The company is committed to cybersecurity and data privacy, implementing robust programs to protect client data and comply with regulations[80] - The company has implemented comprehensive cybersecurity programs, including annual training for all employees to promote awareness and compliance[209] - The company has a formal incident response plan that is regularly tested to ensure prompt detection and mitigation of cybersecurity incidents[208] - The Board of Directors oversees the company's cyber risk management program and receives quarterly updates on cybersecurity risks[210] Financial Management and Reporting - The company has a Credit Agreement with Wells Fargo Bank allowing for revolving loans up to $35.0 million, with $9.0 million in standby letters of credit outstanding as of September 30, 2025, leaving $26.0 million of remaining borrowing capacity[163] - The company faces significant costs related to maintaining effective internal controls over financial reporting, which may impact operational resources[197] - Changes in accounting policies or practices could materially affect financial results and potentially lead to a decline in stock price[199] Employee Well-being and Talent Management - The company emphasizes employee well-being with generous benefits, including health coverage and a 401(k) plan, to attract and retain talent[99] - The company recognizes the importance of retaining skilled employees and senior management for maintaining key seller relationships and operational success[110] - The company must attract and retain skilled employees, particularly in technology and operations, to achieve business objectives, with labor market volatility posing a challenge[122]

Investment Strategy - Equus Total Return, Inc. aims to provide the highest total return through capital appreciation and current income [158]. - The company has shifted its strategy to focus on investments in companies with a total enterprise value between $5.0 million and $75.0 million [163]. - The company is evaluating opportunities to transform into an operating company, with no expected withdrawal from BDC classification before December 31, 2025 [166]. Economic Indicators - As of September 30, 2025, crude oil prices stood at $63.17, while natural gas prices finished at $3.12 per MMBTU [170]. - U.S. GDP is projected to grow at an annualized rate of 3.9% for Q3 2025, up from 2.8% in Q3 2024 [171]. - The unemployment rate remained steady at 4.3% in October 2025, with job growth averaging just 37,000 per month in Q3 2025 [172]. - Consumer price index increased by 3.0% over the previous 12 months as of October 2025, marking stable inflation for nine consecutive quarters [173]. - The Federal Reserve cut interest rates by 25 basis points in both September and October 2025, bringing the federal funds rate range to 3.75% - 4.00% [174]. Market Activity - Global M&A activity surged by 234% in Q3 2025 compared to Q3 2024, with a 41% increase in September 2025 compared to September 2024 [175]. - Private equity transactions rose by 28% in Q3 2025 compared to Q2 2025, and by 38% compared to Q3 2024, despite subdued fundraising trends [177]. Financial Performance - The company's net asset value decreased from $2.17 per share to $1.90 per share, a decline of 12.4% [178]. - Total investment income was $0.4 million for Q3 2025, slightly up from $0.3 million in Q3 2024, and $1.0 million for the nine months ended September 30, 2025, compared to $0.9 million in the same period of 2024 [187]. - Compensation expenses increased to $0.9 million in Q3 2025 from $0.4 million in Q3 2024, primarily due to officer bonuses and equity incentive plan shares [188]. - The company recorded a decrease of $3.4 million in the fair value of the GEVI Note during Q3 2025 [191]. - A realized loss of $2.7 million was recorded on preferred stock in NAEOC due to unmet redemption conditions [193]. - The company recognized a depreciation of the warrant liability of $1.1 million during the nine months ended September 30, 2025 [197]. Regulatory and Compliance - The company has not incurred additional borrowings since the reduction of its asset coverage ratio from 200% to 150% approved by shareholders [167]. - Equus has elected not to qualify as a regulated investment company (RIC) as of Q4 2024, subjecting it to normal corporate tax rates [164]. - The company plans to distribute net investment income and/or realized capital gains annually as required under the Investment Company Act of 1940 [198]. Equity Incentive Plan - The 2016 Equity Incentive Plan allows for the award of up to 2,434,728 shares, with recent awards fully vested as of September 30, 2020 [168].

Sales and Revenue - Air Products generated over 90% of consolidated sales from its regional industrial gases business in fiscal years 2025, 2024, and 2023, with approximately half attributed to atmospheric gases[22]. - Approximately half of total revenue is generated through long-term on-site supply contracts, allowing for pass-through of energy cost changes[148]. - Sales for fiscal year 2025 were $12.0 billion, a decrease of 1% or $63.3 million, primarily due to a 4% decline in volumes, partially offset by a 2% increase in energy cost pass-through and a 1% increase in pricing[162]. - Sales in the Americas segment increased by 2% to $5.1 billion, driven by a 4% increase in energy cost pass-through to customers and a 2% increase in pricing, despite a 3% decline in volumes[203]. - Sales in the Asia segment increased by 1% to $3.3 billion, with equity affiliates' income rising by 29% to $42.3 million[206][208]. - Europe segment sales increased by 6% to $2,984.5 million, driven by higher pricing (2%), favorable currency impact (2%), and volume growth (1%)[209]. - Middle East and India segment sales grew by 1% to $135.9 million, mainly due to higher volumes[213]. - Corporate and other segment sales fell by 41% to $520.0 million, primarily due to the divestiture of the LNG business[215]. Financial Performance - Operating loss for fiscal year 2025 was $877.0 million, compared to an operating income of $4.5 billion in fiscal year 2024, reflecting approximately $3.7 billion in pre-tax charges related to business and asset actions[162]. - Adjusted operating income decreased by 3% to $2.9 billion, down $89.8 million, driven by lower volumes and higher costs, partially offset by increased non-helium pricing[162]. - Net loss for fiscal year 2025 was $354.4 million, a significant decrease from net income of $3.9 billion in fiscal year 2024, primarily due to higher charges for business and asset actions[162]. - Adjusted EBITDA for fiscal year 2025 increased by 1% to $5.1 billion, up $30.1 million[162]. - Loss per share for fiscal year 2025 was $1.74, influenced by an after-tax charge of $3.0 billion for business and asset actions, while adjusted EPS was $12.03, down 3% from $12.43 in the prior year[157]. - Total pre-tax charges related to business and asset actions in fiscal year 2025 were approximately $3.7 billion, significantly higher than $57.0 million in fiscal year 2024[168]. - The effective tax rate for fiscal year 2025 was 21.4%, compared to 19.6% in the prior year, influenced by charges for business and asset actions[191]. Innovation and Technology - The company produced approximately 560 U.S. patents and around 2,650 foreign patents during fiscal year 2025, indicating a strong focus on innovation and technology development[45]. - The company is continually developing new technologies, and failure to do so may harm its competitive position and financial results[88]. Market and Competition - The company faces strong competition from both large global and smaller regional competitors, which could impact pricing and demand for its products[104]. - Future demand for the company's products may be affected by economic conditions and the focus on reducing carbon emissions[63]. Environmental and Regulatory Compliance - Air Products is committed to environmental stewardship and compliance with various environmental regulations, which may result in higher capital expenditures[46]. - The company operates under various regulatory regimes for greenhouse gas emissions, including the European Union Emission Trading System and California's Cap-and-Trade Program, which may increase operational costs[47]. - The company is subject to extensive environmental regulations, which may require unforeseen expenditures and could adversely affect financial results[99]. - Changes in regulatory environments regarding greenhouse gas emissions could negatively impact the company's growth and operating costs[93]. Operational Risks - Delays in project approvals and execution can lead to increased costs and potential project cancellations, adversely affecting financial results[72]. - Operational risks, including pipeline leaks and cyber incidents, could negatively impact production and financial results[74]. - The security of information technology systems is critical, as breaches could lead to significant legal and financial liabilities[81]. Employee and Workforce Development - As of September 30, 2025, the company employed approximately 21,300 employees, with over 99% working full-time and about 75% based outside the United States[53]. - The company continues to invest in employee development and learning platforms to enhance workforce capabilities[54]. - The company is committed to ethical pay practices, ensuring equitable compensation for all employees regardless of personal characteristics[57]. Strategic Focus and Future Outlook - Fiscal year 2025 was a transitional year for Air Products, marked by a renewed focus on the core industrial gas business under new leadership[151]. - The company aims to improve execution and support reductions in capital expenditures and debt over time[151]. - The company expects earnings growth in fiscal year 2026 from new plant onstreams, continued pricing discipline, and productivity improvements, while maintaining cost control and reducing capital expenditures[161]. - The NEOM Green Hydrogen Project is expected to come online in 2027, contributing to the company's long-term growth strategy in clean energy solutions[160].

Financial Performance - Net income available to common stockholders for the three months ended October 25, 2025, was $106.4 million, compared to $69.8 million for the same period in 2024, representing a 52.5% increase [41]. - Basic earnings per common share increased to $3.67 for the three months ended October 25, 2025, from $2.39 in the same period of 2024, reflecting a 53.7% growth [41]. - For the three months ended October 25, 2025, total contract revenues were $1,451.8 million, a 14.1% increase from $1,272.0 million for the same period in 2024 [98]. - For the nine months ended October 25, 2025, total contract revenues were $4,088.3 million, an increase from $3,617.5 million for the same period in 2024 [99]. - The telecommunications sector represented 91.6% of total contract revenues for the three months ended October 25, 2025, compared to 90.6% for the same period in 2024 [99]. Acquisitions and Investments - The company acquired telecommunications construction contractors for a total cash purchase price of $191.2 million across three acquisitions in fiscal 2025, enhancing its geographic presence [42][43][44]. - The preliminary purchase price for the acquisition of Power Solutions, LLC is $1,950,000,000, with 15% of this amount ($292,500,000) to be paid in common stock [111]. - The acquisition will involve a mix of 1,011,069 shares of common stock and cash, with the cash portion being $1,657,500,000 minus purchase price adjustments [111]. - The company has secured a $1,000 million senior secured term loan A facility and a $700 million 364-day senior secured bridge loan facility to finance the acquisition [113]. - The acquisition is subject to customary conditions and is not obligated to close before December 22, 2025, with an outside termination date of May 18, 2026 [112]. - The company aims to integrate Power Solutions' operations to realize anticipated benefits and synergies from the acquisition [116]. - Forward-looking statements regarding the acquisition are subject to various risks and uncertainties, including regulatory approvals and integration challenges [116]. Assets and Liabilities - Total accounts receivable, net, as of October 25, 2025, was $1.59 billion, up from $1.37 billion as of January 25, 2025, indicating a 15.6% increase [51]. - As of October 25, 2025, net contract assets amounted to $92.8 million, a significant increase from a net liability of $10.2 million as of January 25, 2025 [52]. - The company recorded intangible assets totaling $142.2 million from acquisitions, with customer relationships valued at $114.3 million [48]. - Goodwill and intangible assets from acquisitions totaled $163.1 million, which are deductible for tax purposes [47]. - Goodwill increased to $332.6 million as of October 25, 2025, from $330.3 million as of January 25, 2025, reflecting adjustments from fiscal 2025 acquisitions [57]. - Intangible assets, net, were reported at $183.999 million as of October 25, 2025, with amortization expense for finite-lived intangible assets at $11.8 million for the three months ended October 25, 2025 [59][60]. - The net carrying amount of long-term debt as of October 25, 2025, was $919,480,000, a slight decrease from $933,212,000 as of January 25, 2025 [72]. Cash Flow and Liquidity - Total cash and equivalents increased to $110.1 million as of October 25, 2025, compared to $92.7 million as of January 25, 2025 [55]. - The Company had borrowing availability under its revolving facility of $596.4 million as of October 25, 2025 [77]. - Cash paid for lease liabilities during the three months ended October 25, 2025, was $10,286,000, compared to $12,063,000 in 2024, reflecting a decrease of 14.8% [70]. Tax and Compliance - The effective income tax rate for the three months ended October 25, 2025, was 24.2%, compared to 23.6% for the same period in 2024 [82]. - The company plans to adopt ASU 2023-09 regarding income tax disclosures in the fourth quarter of fiscal 2026, which will enhance transparency without impacting financial position [37]. Stock and Compensation - Stock-based compensation expense for the three months ended October 25, 2025, was $7.986 million, down from $14.024 million in the same period of 2024 [93]. - As of October 25, 2025, the company had unrecognized compensation expense related to RSUs of $36.4 million, which will be recognized over a weighted-average period of 2.3 years [94]. - The company incurred approximately $11.4 million of incremental stock-based compensation modification expense in fiscal 2025 related to previously issued equity awards [92]. Risk Management - There were no material changes to the company's market risk disclosures during the three months ended October 25, 2025, primarily related to interest rate changes [192].