Alamo (ALG) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the unaudited interim condensed consolidated financial statements and management's discussion and analysis Item 1. Interim Condensed Consolidated Financial Statements (Unaudited) This section presents the unaudited interim condensed consolidated financial statements, including statements of income, comprehensive income, balance sheets, stockholders' equity, and cash flows for Alamo Group Inc. and its subsidiaries. It also includes detailed notes explaining the basis of presentation, recent business combinations, accounting policies for receivables, inventories, rental equipment, fair value measurements, goodwill and intangible assets, leases, debt, common stock and dividends, earnings per share, revenue and segment information, accumulated other comprehensive loss, and subsequent events Interim Condensed Consolidated Statements of Income This statement presents the company's revenues, expenses, and net income over specific interim periods Income Statement Summary | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $419,073 | $416,303 | $810,023 | $841,889 | | Cost of sales | $310,781 | $308,122 | $598,890 | $622,076 | | Gross profit | $108,292 | $108,181 | $211,133 | $219,813 | | Income from operations| $47,078 | $43,309 | $91,540 | $90,288 | | Net Income | $31,106 | $28,324 | $62,906 | $60,444 | | Basic EPS | $2.59 | $2.36 | $5.24 | $5.05 | | Diluted EPS | $2.57 | $2.35 | $5.21 | $5.02 | | Dividends declared | $0.30 | $0.26 | $0.60 | $0.52 | Interim Condensed Consolidated Statements of Comprehensive Income This statement details net income and other comprehensive income components, leading to total comprehensive income Comprehensive Income Summary | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $31,106 | $28,324 | $62,906 | $60,444 | | Other comprehensive income (loss), net of tax | $27,616 | $(5,179) | $37,174 | $(11,638) | | Comprehensive income | $58,722 | $23,145 | $100,080 | $48,806 | - Foreign currency translation adjustments significantly contributed to other comprehensive income in 2025, with a gain of $28,062 thousand for the three months and $38,883 thousand for the six months ended June 30, 2025, compared to losses in the prior year periods[12] Interim Condensed Consolidated Balance Sheets This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific interim dates Balance Sheet Summary | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | ASSETS | | | | Cash and cash equivalents | $201,823 | $197,274 | | Accounts receivable, net | $356,236 | $305,561 | | Inventories, net | $372,074 | $343,363 | | Total current assets | $942,594 | $857,495 | | Total assets | $1,557,649 | $1,450,279 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Trade accounts payable | $111,820 | $84,505 | | Total current liabilities | $206,906 | $190,309 | | Long-term debt and finance lease obligations, net of current maturities | $198,115 | $205,473 | | Total liabilities | $442,253 | $432,025 | | Total stockholders' equity | $1,115,396 | $1,018,254 | Interim Condensed Consolidated Statements of Stockholders' Equity This statement outlines changes in the company's equity accounts, including net income, dividends, and other comprehensive income - Total stockholders' equity increased from $1,018,254 thousand at December 31, 2024, to $1,115,396 thousand at June 30, 2025, primarily driven by net income and other comprehensive income, partially offset by dividends paid[17] Stockholders' Equity Summary | Component (in thousands) | Balance at Dec 31, 2024 | Other comprehensive income | Stock-based compensation expense | Stock-based compensation transactions | Dividends paid | Balance at June 30, 2025 | | :----------------------- | :---------------------- | :------------------------- | :------------------------------- | :------------------------------------ | :------------- | :----------------------- | | Common Stock (Amount) | $1,202 | — | — | $1 | — | $1,206 | | Additional Paid-in Capital | $146,866 | — | $4,670 | $(416) | — | $151,120 | | Retained Earnings | $956,347 | $62,906 | — | — | $(7,196) | $1,012,057 | | Accumulated Other Comprehensive Loss | $(81,595) | $37,174 | — | — | — | $(44,421) | | Total Stockholders' Equity | $1,018,254 | $100,080 | $4,670 | $(416) | $(7,196) | $1,115,396 | Interim Condensed Consolidated Statements of Cash Flows This statement summarizes cash inflows and outflows from operating, investing, and financing activities for interim periods Cash Flow Summary | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $36,911 | $34,316 | | Net cash used in investing activities | $(29,730) | $(10,265) | | Net cash (used in) provided by financing activities | $(15,112) | $47,173 | | Net change in cash and cash equivalents | $4,549 | $66,616 | | Cash and cash equivalents at end of the period | $201,823 | $118,535 | - Investing activities saw a significant increase in cash usage, primarily due to acquisitions ($17.6 million) in the first six months of 2025, compared to no acquisitions in the same period of 2024[23] Notes to Interim Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the interim condensed consolidated financial statements 1. Basis of Financial Statement Presentation This note describes the accounting principles and presentation methods used for the interim financial statements - The interim financial statements are prepared in accordance with U.S. GAAP for interim information and Form 10-Q, and do not include all disclosures required for complete annual financial statements[24] - New accounting pronouncements, ASU No. 2023-09 (Improvements to Income Tax Disclosures) and ASU No. 2024-03 (Expense Disaggregation Disclosures), are effective for annual periods beginning after December 15, 2024, and December 15, 2026, respectively, and will require additional disclosures upon adoption[25][26] 2. Business Combinations This note details recent acquisitions and their financial impact on the consolidated entity - On June 30, 2025, Alamo Group Inc. acquired 100% of Ring-O-Matic, LLC for approximately $17.6 million to expand product offerings and achieve synergies within the Industrial Equipment division[27] 3. Accounts Receivable This note provides information on the composition of accounts receivable and related reserves Accounts Receivable Reserves | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Reserves for sales discounts | $12,100 | $14,200 | 4. Inventories This note details the breakdown of inventory components and associated obsolescence reserves Inventory Components and Reserves | Inventory Component (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Finished goods | $344,217 | $317,169 | | Work in process | $21,996 | $21,310 | | Raw materials | $5,861 | $4,884 | | Inventories, net | $372,074 | $343,363 | | Inventory obsolescence reserves | $9,900 | $8,300 | 5. Rental Equipment This note outlines the accounting for rental equipment and related depreciation expenses Rental Equipment Depreciation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Depreciation expense | $2,900 | $2,500 | $5,800 | $4,800 | 6. Fair Value Measurements This note explains the company's use of derivative instruments and fair value accounting for financial assets and liabilities - The Company uses derivative instruments, specifically interest rate swaps, to partially offset exposure to market risks like changes in foreign currencies and interest rates, not for trading purposes[32][33] Derivative Liabilities and Swaps | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Fair value of derivative liabilities | $1,900 | $(800) (asset) | | Notional amount of outstanding swap agreements | $263,800 | N/A | 7. Goodwill and Intangible Assets This note provides details on the carrying amounts and changes in goodwill and other intangible assets Goodwill and Intangible Assets Summary | Goodwill (in thousands) | December 31, 2024 | Translation adjustment | Goodwill acquired | June 30, 2025 | | :---------------------- | :---------------- | :--------------------- | :---------------- | :------------ | | Vegetation Management | $126,729 | $3,260 | — | $129,989 | | Industrial Equipment | $76,298 | $1,689 | $13,631 | $91,618 | | Consolidated | $203,027 | $4,949 | $13,631 | $221,607 | Goodwill and Intangible Assets Summary | Intangible Assets (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Total net definite-lived | $139,540 | $145,860 | | Total indefinite-lived | $5,500 | $5,500 | | Total Intangible Assets | $145,040 | $151,360 | 8. Leases This note describes the company's lease arrangements, including lease costs and liabilities Lease Cost and Liabilities | Lease Cost Component (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Finance lease cost | $2 | $2 | $4 | $4 | | Operating lease cost | $1,948 | $1,802 | $3,827 | $3,464 | | Short-term lease cost | $295 | $395 | $976 | $870 | | Variable lease cost | $54 | $78 | $108 | $151 | | Total lease cost | $2,299 | $2,277 | $4,915 | $4,489 | Lease Cost and Liabilities | Operating Lease Liabilities (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------------------- | :------------ | :---------------- | | Total operating lease liabilities | $17,537 | $18,277 | | Weighted Average Remaining Lease Term | 3.41 years | 3.49 years | | Weighted Average Discount Rate | 4.63 % | 4.57 % | 9. Debt This note details the company's debt structure, including term debt, finance lease obligations, and available credit Debt Structure | Debt Component (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Term debt | $213,112 | $220,475 | | Finance lease obligations | $3 | $6 | | Total debt | $213,115 | $220,481 | | Less current maturities | $15,000 | $15,008 | | Total long-term debt | $198,115 | $205,473 | - As of June 30, 2025, the Company had $397.3 million in available borrowings under its revolving credit facility, with $2.7 million committed to standby letters of credit[41] 10. Common Stock and Dividends This note provides information on common stock, dividend declarations, and payments Dividends Declared and Paid | Dividends Per Share | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Declared | $0.30 | $0.26 | $0.60 | $0.52 | | Paid | $0.30 | $0.26 | $0.60 | $0.52 | - On July 1, 2025, the Board of Directors declared a quarterly cash dividend of $0.30 per share, paid on July 29, 2025[42] 11. Earnings Per Share This note presents the calculation of basic and diluted earnings per share Earnings Per Share Data | EPS Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $2.59 | $2.36 | $5.24 | $5.05 | | Diluted EPS| $2.57 | $2.35 | $5.21 | $5.02 | 12. Revenue and Segment Information This note provides a detailed breakdown of revenue by product type, geographical location, and segment performance Revenue by Product Type | Revenue by Product Type (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Wholegoods | $339,095 | $328,120 | $652,235 | $671,698 | | Parts | $63,044 | $71,579 | $124,420 | $141,080 | | Other | $16,934 | $16,604 | $33,368 | $29,111 | | Consolidated | $419,073 | $416,303 | $810,023 | $841,889 | Revenue by Geographical Location | Revenue by Geographical Location (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $307,347 | $295,187 | $582,820 | $588,989 | | Canada | $32,823 | $30,792 | $71,922 | $69,678 | | France | $22,214 | $23,193 | $43,962 | $49,365 | | United Kingdom | $21,226 | $20,167 | $42,701 | $44,378 | | Brazil | $10,512 | $11,320 | $19,892 | $23,524 | | Netherlands | $5,278 | $10,852 | $10,962 | $21,196 | | Australia | $3,276 | $7,055 | $8,951 | $11,559 | | Germany | $2,070 | $2,357 | $3,502 | $5,176 | | Other | $14,327 | $15,380 | $25,311 | $28,024 | | Consolidated | $419,073 | $416,303 | $810,023 | $841,889 | Segment Performance (Three Months) | Segment Performance (in thousands) | 3M Ended June 30, 2025 Net Sales | 3M Ended June 30, 2024 Net Sales | 3M Ended June 30, 2025 Income from Operations | 3M Ended June 30, 2024 Income from Operations | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------------ | :------------------------------------ | | Vegetation Management | $178,358 | $211,535 | $12,751 | $16,006 | | Industrial Equipment | $240,715 | $204,768 | $34,327 | $27,303 | | Consolidated | $419,073 | $416,303 | $47,078 | $43,309 | Segment Performance (Six Months) | Segment Performance (in thousands) | 6M Ended June 30, 2025 Net Sales | 6M Ended June 30, 2024 Net Sales | 6M Ended June 30, 2025 Income from Operations | 6M Ended June 30, 2024 Income from Operations | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------------ | :------------------------------------ | | Vegetation Management | $342,248 | $435,282 | $26,063 | $37,685 | | Industrial Equipment | $467,775 | $406,607 | $65,477 | $52,603 | | Consolidated | $810,023 | $841,889 | $91,540 | $90,288 | 13. Accumulated Other Comprehensive Loss This note explains the components and changes in accumulated other comprehensive loss - Accumulated other comprehensive loss improved significantly, decreasing from $(81,595) thousand at the beginning of the six-month period to $(44,421) thousand at June 30, 2025, primarily due to positive foreign currency translation adjustments[54] 14. Subsequent Events This note discloses significant events that occurred after the reporting period but before the financial statements were issued - On July 4, 2025, President Trump signed the One Big Beautiful Bill Act, which includes tax reform proposals that could impact the Company's deferred tax liabilities and assets. The Company is currently evaluating the expected financial statement impact[55] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the Company's financial performance and condition, highlighting key trends, operational results for both the three and six months ended June 30, 2025, compared to the prior year. It also discusses liquidity, capital resources, critical accounting estimates and policies, off-balance sheet arrangements, and forward-looking information, including associated risks and uncertainties Overview This overview summarizes the company's divisional performance, key financial metrics, and backlog for the reporting period - The Industrial Equipment Division experienced strong demand, achieving 15% organic growth in net sales for the first six months of 2025, driven by excavators, vacuum trucks, and snow removal[58][61] - The Vegetation Management Division faced weaker market conditions in forestry, tree care, and agriculture, leading to a 21% decline in net sales for the first six months of 2025. Despite cost reduction actions, operational inefficiencies from factory consolidations impacted income[58][60] Key Financial Metrics | Metric | Six Months Ended June 30, 2025 | Change YoY | | :----- | :----------------------------- | :--------- | | Net Sales | -4% | | | Income from Operations | +1% | | | Net Income | +4% | | | Consolidated Backlog | $687.2 million | -11% | Results of Operations This section analyzes the company's financial performance, comparing results for the three and six months ended June 30, 2025, against the prior year Three Months Ended June 30, 2025 vs. Three Months Ended June 30, 2024 This subsection compares the company's financial performance for the second quarter of 2025 against the same period in 2024 Quarterly Performance Comparison | Metric (in thousands) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------- | :------ | :------ | :--------- | :--------- | | Net sales | $419,073| $416,303| $2,770 | 1% | | Vegetation Management sales | $178,358| $211,535| $(33,177) | -16% | | Industrial Equipment sales | $240,715| $204,768| $35,947 | 18% | | Gross profit | $108,292| $108,181| $111 | 0% | | SG&A expenses | $57,136 | $60,817 | $(3,681) | -6% | | Interest expense | $3,684 | $6,098 | $(2,414) | -40% | | Net Income | $31,106 | $28,324 | $2,782 | 10% | | Diluted EPS | $2.57 | $2.35 | $0.22 | 9% | - Other income (expense), net, shifted from a minor expense of $0.1 million in Q2 2024 to an expense of $3.2 million in Q2 2025, primarily due to unfavorable currency exchange rates[69] Six Months Ended June 30, 2025 vs. Six Months Ended June 30, 2024 This subsection compares the company's financial performance for the first six months of 2025 against the same period in 2024 Half-Year Performance Comparison | Metric (in thousands) | 6M 2025 | 6M 2024 | Change ($) | Change (%) | | :-------------------- | :------ | :------ | :--------- | :--------- | | Net sales | $810,023| $841,889| $(31,866) | -4% |\ | Vegetation Management sales | $342,248| $435,282| $(93,034) | -21% |\ | Industrial Equipment sales | $467,775| $406,607| $61,168 | 15% |\ | Gross profit | $211,133| $219,813| $(8,680) | -4% |\ | SG&A expenses | $111,466| $121,411| $(9,945) | -8% |\ | Interest expense | $6,878 | $12,189 | $(5,311) | -44% |\ | Net Income | $62,906 | $60,444 | $2,462 | 4% |\ | Diluted EPS | $5.21 | $5.02 | $0.19 | 4% | - Gross profit margin remained flat at 26% for both periods, despite lower sales volume and production inefficiencies in Vegetation Management, indicating effective cost management[74] - Other income (expense), net, shifted from a minor income in 6M 2024 to an expense of $3.8 million in 6M 2025, primarily due to unfavorable currency exchange rates[76] Liquidity and Capital Resources This section evaluates the company's ability to generate and manage cash, detailing working capital, cash flow activities, and debt facilities Working Capital and Cash Equivalents | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Working capital | $735,700 | $667,200 | | Cash and cash equivalents held by foreign subsidiaries | $146,700 | N/A | Cash Flow Activities | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Capital expenditures | $13,000 | $11,100 | | Net cash used in investing activities | $29,700 | $10,300 | | Net cash used in financing activities | $15,100 | $(47,200) (provided) | - The Company expects full-year 2025 capital expenditures to be between $30.0 million and $35.0 million, funded by operating cash flows or the revolving credit facility[80] - As of June 30, 2025, $213.8 million was outstanding under the Term Facility of the 2022 Credit Agreement, with $397.3 million available under the Revolver Facility. The Company is in compliance with all covenants[84] Critical Accounting Estimates This section highlights accounting estimates that require significant judgment and can materially impact financial statements - Management's financial statements rely on estimates and assumptions that affect reported amounts, with actual results potentially differing under various conditions[87] Critical Accounting Policies This section outlines the accounting policies that are most important to the company's financial reporting and require complex judgments - The accounting policies related to business combinations involve a higher degree of judgment and complexity, with no material changes to the nature of estimates or assumptions since the 2024 Form 10-K[89] Off-Balance Sheet Arrangements This section discloses any transactions, agreements, or other contractual arrangements that are not recorded on the balance sheet but could have a material financial impact - There are no off-balance sheet arrangements that have or are likely to have a current or future material effect on the Company's financial condition[90] Forward-Looking Information This section provides cautionary statements regarding future-oriented information, outlining potential risks and uncertainties that could cause actual results to differ - The report contains forward-looking statements based on current expectations, and actual results may differ due to various risks and uncertainties, including market conditions, competition, raw material prices, governmental policies, and cybersecurity risks[91][92][93] - Readers are cautioned not to place undue reliance on forward-looking statements, as management cannot predict all risk factors or their impact, and the Company does not undertake to update these statements[94] Item 3. Quantitative and Qualitative Disclosures About Market Risks This section details the Company's exposure to market risks, specifically foreign currency risk and interest rate risk. It explains how these risks arise from international operations and variable-rate debt, and provides sensitivity analyses to illustrate potential financial impacts Foreign Currency Risk This subsection describes the company's exposure to fluctuations in foreign currency exchange rates due to international operations - The Company is exposed to foreign currency risk due to international manufacturing and sales activities, primarily in Europe and Canada, where financial results can be affected by exchange rate fluctuations[96][98] - A uniform 10% strengthening or decrease in the U.S. dollar's value relative to sales-denominated currencies would result in a $6.4 million change in gross profit for the six months ended June 30, 2025[100] - Foreign currency translation adjustments increased stockholders' equity by $28.1 million in the current quarter[97] Interest Rate Risk This subsection details the company's exposure to changes in interest rates, primarily affecting its variable-rate debt - The Company's net income is affected by changes in interest rates due to its long-term debt bearing variable rates[101] - A two percentage point change in the average interest rate on variable-rate borrowings would alter the Company's interest expense by approximately $1.1 million for the second quarter of 2025[101] Item 4. Controls and Procedures This section confirms the effectiveness of the Company's disclosure controls and procedures and states that there have been no material changes in internal control over financial reporting during the last fiscal year Disclosure Controls and Procedures This subsection confirms the effectiveness of the company's disclosure controls and procedures as evaluated by management - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period[102] Changes in internal control over financial reporting This subsection reports on any material changes in the company's internal control over financial reporting during the last fiscal year - There have been no material changes in the Company's internal control over financial reporting during the last fiscal year[103] PART II. OTHER INFORMATION This section provides additional legal, risk, equity, and control information not covered in the financial statements Item 1. Legal Proceedings This section refers to the Company's annual report on Form 10-K for a description of legal proceedings - For a description of legal proceedings, refer to the consolidated financial statements and footnotes in the Company's annual report on Form 10-K for the year ended December 31, 2024[104] Item 1A. Risk Factors This section states that there have been no material changes to the risk factors previously disclosed in the Company's 2024 Form 10-K - There have been no material changes from the risk factors previously disclosed in the 2024 Form 10-K for the year ended December 31, 2024[105] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section reports that there were no repurchases of common stock under the Company's share repurchase program during the quarter ended June 30, 2025 - No repurchases of common stock were made under the share repurchase program during the quarter ended June 30, 2025[106] Item 3. Defaults Upon Senior Securities This section indicates that there were no defaults upon senior securities - There were no defaults upon senior securities[107] Item 4. Mine Safety Disclosures This section states that mine safety disclosures are not applicable to the Company - Mine Safety Disclosures are not applicable[108] Item 5. Other Information This section confirms that no reports on Form 8-K were filed and no directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the reporting period - No reports on Form 8-K were filed during the period[108] - No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the period covered by this report[109] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including certifications, XBRL documents, and the 2025 Incentive Stock Option Plan - Exhibits include certifications by Jeffery A. Leonard and Agnieszka K. Kamps under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, XBRL Instance Document, Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents, and the Cover Page Interactive Data File[110] - The 2025 Incentive Stock Option Plan is incorporated by reference from Form DEF 14A filed on March 13, 2025[110] SIGNATURES This section contains the official signatures of the Company's President & Chief Executive Officer and Executive Vice President & Chief Financial Officer, certifying the filing of the report - The report is signed by Jeffery A. Leonard, President & Chief Executive Officer, and Agnieszka K. Kamps, Executive Vice President & Chief Financial Officer, on August 6, 2025[111]