Exhibit 99.1 Amicus Therapeutics Announces Full-Year 2025 Financial Results and Corporate Updates 2025 Total Revenue of $634M, up 17% Year-over-Year at CER Cash Position of $294M, a $44M Increase in 2025 Proposed Acquisition by BioMarin Expected to Close in Q2 2026, Subject to Closing Conditions PRINCETON, NJ, Feb. 20, 2026 – Amicus Therapeutics (Nasdaq: FOLD), a leading, global biotechnology company with a clear and compelling mission to develop and deliver transformative medicines for people living with r ...

Financial Reporting and Governance - The Company and the Operating Partnership provide separate consolidated financial statements to enhance investor understanding and streamline disclosures[21]. - The Company’s senior management and trustees collectively hold approximately 15.6% of the current voting power, which may influence shareholder decisions significantly[119]. - The Company’s board of trustees can amend its declaration of trust to issue additional securities without shareholder approval, potentially delaying or preventing a change in control[120]. - The company has opted out of certain business combination provisions of the Maryland General Corporation Law (MGCL), allowing business combinations to be exempt from these provisions if approved by the board of trustees[123]. Financial Risks and Market Conditions - Elevated interest rates since 2022 have increased the cost of new debt and impacted the attractiveness of the dividend yield on common shares, affecting external growth prospects[106]. - The Company’s revolving credit facility and unsecured senior notes contain covenants that may restrict business and investment activities, impacting distributions to shareholders[106]. - The Company faces risks from extreme weather events, which can lead to property damage and increased insurance costs[116]. - Tenant relief laws and regulations may negatively impact rental income and profitability, increasing legal and managerial expenses associated with eviction processes[113]. Compliance and Regulatory Risks - Compliance with environmental laws may require material expenditures, and failure to comply could adversely affect financial condition and operations[112]. - Failure to qualify as a REIT would result in taxation as a regular corporation, reducing funds available for distribution to shareholders by being subject to a 21% federal income tax rate[127]. - The company must distribute at least 90% of its REIT taxable income each year to maintain REIT status, or face a 4% nondeductible excise tax on any shortfall in distributions[139]. - The company is subject to restrictions on ownership, limiting any individual or entity from owning more than 8.0% of common shares and 9.9% of preferred shares, which may inhibit market activity[138]. - The company’s qualification as a REIT depends on satisfying various asset, income, and distribution requirements, with non-compliance risking significant tax consequences[126]. - The company may face a 100% tax on income from prohibited transactions, limiting its ability to engage in certain sales of properties[132]. - The company’s transactions with its taxable REIT subsidiary (TRS) must be conducted at arm's length to avoid a 100% penalty tax on certain income[136]. - The company has not requested a ruling from the IRS regarding its REIT qualification, creating uncertainty about its status[125]. - Compliance with REIT requirements may limit the company’s ability to hedge effectively and could lead to additional tax liabilities[134]. - The company may face adverse consequences if a Section 1031 tax-deferred exchange is later determined to be taxable, potentially increasing taxable income and required distributions[141]. - Legislative or regulatory tax changes could reduce the market price of the company's outstanding common or preferred shares, affecting taxation and shareholder returns[142]. Shareholder and Tax Implications - Issuing preferred shares in a reopening could subject shareholders to adverse U.S. federal income tax consequences if classified as "fast-pay stock" under Treasury Regulations[143]. - If preferred shares are deemed fast-pay stock, FP Shareholders would be treated as having purchased financing instruments from NFP Shareholders, impacting tax treatment[144]. - Deemed payments and financing instruments related to fast-pay stock arrangements could lead to additional tax reporting requirements and potential penalties for non-compliance[145]. - The company may need to take actions to raise funds if cash flow is insufficient to meet distribution requirements, potentially increasing costs and affecting share value[139]. - The company’s ability to quickly generate cash from property sales is limited due to the illiquid nature of real estate investments[117]. - The use of artificial intelligence in various business aspects is subject to a governance framework to assess risks and benefits, but it may expose the Company to operational challenges and legal risks[109].

Joint Ventures and Franchise Agreements - The company closed a joint venture with CPE Alder Investment Limited for Burger King China, with CPE owning approximately 83% and the company holding about 17%[29] - The company entered into new master franchise agreements for Burger King and Popeyes in Ireland and for Firehouse Subs in Australia in 2025[33] - Franchise agreements in the U.S. and Canada typically have a royalty range of 3.0% to 6.0% of gross sales, depending on property ownership[31] Employee and Corporate Structure - The company has approximately 53,500 employees as of December 31, 2025, with about 33,700 in the U.S.[50] - In 2025, the company hired approximately 600 new corporate employees and 200 new distribution and manufacturing employees[54] Financial Management and Currency Exposure - The company has cross-currency rate swaps with a notional value of $5,700 million between Canadian dollar and U.S. dollar, and $2,750 million between Euro and U.S. dollar, to hedge foreign currency exposure[267] - A hypothetical 10% uniform weakening or strengthening of all foreign currencies would have resulted in an approximate $101 million change in income from operations in 2025[269] - The company has entered into interest rate swaps with a total notional value of $4,000 million to hedge against interest rate fluctuations on its Term Loan Facilities[270] - A hypothetical 1.00% increase in SOFR would increase the company's annual interest paid by approximately $18 million[271] - The net fair value of the company's cross-currency rate swaps was a liability of $290 million as of December 31, 2025[267] Inflation and Commodity Price Management - The company is exposed to significant inflationary pressures, which could adversely impact its business and financial condition[275] - The company employs standardized purchasing techniques to minimize commodity price volatility, particularly for green coffee[272] Philanthropy and Corporate Responsibility - The company’s philanthropic initiatives, including the Tim Hortons Foundation Camps, have raised millions for local charities since 1996[55] - The company is committed to sustainability, focusing on a framework that includes social impact and environmental responsibility[48] Technology and Innovation - The company is committed to technology and innovation, with ongoing investments in digital sales and information systems to enhance profitability and growth[285] - The company utilizes point-of-sale software to assess product performance globally, enhancing operational efficiency[47] Market Conditions and Future Outlook - Future financial performance is subject to risks including economic conditions, franchisee stability, and the effectiveness of marketing strategies[286] - The company anticipates growth opportunities for its brands, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs, in both domestic and international markets[285] - The company operates in a highly competitive and rapidly changing environment, which poses risks to market share and profitability[288] - There are new risk factors that emerge over time, making it difficult for management to predict their impact on the business[288] - The company cannot guarantee future results or performance, and forward-looking statements should not be relied upon as predictions[289] - Future results will depend on various risks and uncertainties, as detailed in the "Item 1A - Risk Factors" section of the Annual Report[289] Corporate Governance and Shareholder Rights - The Partnership exchangeable units can be exchanged on a one-for-one basis for common shares, with a cash payment option based on the weighted average trading price over the last 20 trading days prior to the exchange date[278] - Holders of Partnership exchangeable units are entitled to distributions equivalent to dividends declared on common shares, ensuring parity in economic rights[278] - A mandatory exchange of Partnership exchangeable units into common shares can occur if fewer than 5% of the units remain outstanding or if certain corporate actions are approved by shareholders[283] - The partnership agreement prohibits the company from proposing a bid for common shares unless holders of Partnership exchangeable units can participate on an equivalent basis[280] Business Strategy and Growth Initiatives - The company plans to continue its remodeling and refranchising efforts for Burger King restaurants acquired in the Carrols Acquisition[285] - The company is focused on net restaurant growth and expanding its guest base through new product innovation[285] - The company’s future uses of liquidity include dividend payments and share repurchases, with a target total dividend set for 2026[285] - The company’s restaurant sales are typically higher in spring and summer, with adverse weather conditions potentially impacting sales[49] - Advertising fund contributions from franchisees range from 2.0% to 5.0% of gross sales, aimed at enhancing brand reputation and sales[35]

Consolidated Financial Statements For the years ended December 31, 2025 and 2024 (Expressed in thousands of United States dollars, unless otherwise stated) Consolidated Financial Statements For the years ended December 31, 2025 and 2024 | CONTENTS | | | --- | --- | | Management's Report | 3 | | Report of Independent Registered Public Accounting Firm – Consolidated Financial Statements | 4 | | Report of Independent Registered Public Accounting Firm – Internal Control over Financial Reporting | 6 | | Consolid ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________ FORM 10-K _____________________________________________________________________________ ☒ ANNUAL 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: 001-38054 __________ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or o 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: 001-35435 Proto Labs, Inc. (Exact name of Registrant as specified in its chart ...

Financial Performance - Net income for the year ended December 31, 2025, was $159.0 million, or $1.24 per share, compared to $37.7 million, or $0.57 per share in 2024, and a net loss of $39.2 million, or $0.89 per share in 2023 [276]. - For the three months ended December 31, 2025, net earnings were $103,408,000, a significant increase from $72,078,000 in the previous quarter, representing a 43.5% quarter-over-quarter growth [283]. - The total net income for the year ended December 31, 2025, was $159,030,000, compared to $37,662,000 in 2024, reflecting a substantial year-over-year increase of 322% [283]. - Economic net interest income for the year ended December 31, 2025, was reported at $87,789,000, compared to a loss of $11,448,000 in 2024, showcasing a significant turnaround [287]. - The company reported a total economic interest expense of $122,669,000 for the year ended December 31, 2025, which is a decrease from $133,554,000 in 2024 [294]. Interest Income and Expense - Interest income for 2025 was $414.0 million, up from $241.6 million in 2024 and $177.6 million in 2023, while interest expense increased to $305.7 million from $236.3 million in 2024 and $201.9 million in 2023 [276]. - The net interest income for 2025 was $108.3 million, a significant increase from $5.3 million in 2024 and a net loss of $24.3 million in 2023 [276]. - Total interest expense on borrowings for the year ended December 31, 2025, was $305.7 million, up from $236.3 million in 2024, marking a 29.3% increase [305]. - The average cost of funds decreased to 4.27% for the year ended December 31, 2025, from 5.35% in 2024, indicating improved funding efficiency [305]. - Economic interest expense for the year ended December 31, 2025, was $222.4 million, an increase from $119.5 million in 2024 and $109.6 million in 2023 [307]. Share Issuance and Repurchase - The company issued a total of 24,675,497 shares under the March 2023 Equity Distribution Agreement for gross proceeds of approximately $228.8 million and net proceeds of approximately $225.0 million [266]. - Total shares repurchased from inception of the stock repurchase program through December 31, 2025, amounted to 6,257,826 shares at an aggregate cost of approximately $84.8 million, with a weighted average price of $13.55 per share [273]. - The company plans to offer and sell up to an aggregate amount of $500.0 million of shares under the October 2025 Equity Distribution Agreement [269]. - The company issued a total of 30,513,253 shares under the June 2024 Equity Distribution Agreement for aggregate gross proceeds of approximately $250.0 million and net proceeds of approximately $245.8 million [357]. - The company issued a total of 59,492,504 shares under the February 2025 Equity Distribution Agreement for aggregate gross proceeds of approximately $445.1 million and net proceeds of approximately $438.0 million [358]. Portfolio and Asset Management - As of December 31, 2025, the company's RMBS portfolio consisted of $10,628.7 million of Agency RMBS at fair value, with a weighted average coupon on assets of 5.64% [329]. - The average three-month prepayment speeds for the quarters ended December 31, 2025, and 2024 were 15.7% and 10.5%, respectively [329]. - The company had outstanding obligations under repurchase agreements of approximately $10,115.5 million as of December 31, 2025, with a net weighted average borrowing cost of 3.98% [336]. - The company’s internal liquidity sources include cash balances and unencumbered assets, which are expected to be sufficient for ongoing operational needs [342]. - The total fair value of the RMBS portfolio as of December 31, 2025, included $5,675.5 million from Fannie Mae and $4,953.2 million from Freddie Mac [331]. Risk Management - The company utilized various hedging instruments to manage interest rate risk, including Fed Funds and interest rate swaps, to mitigate exposure in a rising rate environment [285]. - The company faces spread risk, where widening market spreads between the yield on Agency RMBS and benchmark interest rates could lead to a decline in net book value [415]. - The company is exposed to liquidity risk due to financing long-term assets with shorter-term borrowings through repurchase agreements, which could lead to adverse changes in liquidity if collateral values decrease [416]. - The company faces counterparty credit risk related to repurchase agreements and derivative contracts, which could lead to significant losses if counterparties fail to perform their obligations [419]. - A decrease in prepayment rates in a rising interest rate environment could extend the average life of fixed-rate assets, negatively impacting operational results and potentially forcing asset sales [418]. Dividends and Shareholder Returns - The company has declared total dividends of $69.570 per share amounting to $940,793,000 since its IPO [395]. - The company intends to pay regular monthly dividends to stockholders, with the most recent declared dividend of $0.12 per share to be paid on March 30, 2026 [396]. - The company experienced a three-month constant prepayment rate (CPR) of 15.7% for the quarter ended December 31, 2025 [330]. - The company has not designated its derivative holdings for hedge accounting treatment, which affects how changes in fair value are reported [286]. - The company employs a four-step process to determine the fair value of Agency RMBS, consistent with FASB ASC Topic 820 [386].

Fleet and Operations - Valaris owns a fleet of 46 rigs, including 13 drillships, 2 semisubmersible rigs, and 31 jackup rigs, with a 50% equity interest in ARO, which owns an additional 9 rigs[20]. - The company has a total of 31 jackup rigs in its fleet, with 13 drillships capable of drilling in water depths of up to 12,000 feet[200][198]. - The company has 13 drillships and 2 semisubmersibles, with the semisubmersibles capable of drilling in water depths of up to 10,000 feet[198][199]. - As of February 17, 2026, several rigs are under contract, including VALARIS DS-4, DS-7, DS-8, and DS-9, all of which are dynamically positioned drillships[196]. - The company has a future contract for VALARIS DS-10, which is a drillship expected to operate in Spain[196]. Financial Performance - During the year ended December 31, 2025, the five largest customers accounted for 49% of consolidated revenues, with Petrobras, BP, and Azule Energy contributing 35%[32]. - Revenues from non-U.S. operations represented 86%, 84%, and 80% of total consolidated revenues for the years ended December 31, 2025, 2024, and 2023, respectively[35]. - The current contract backlog for the company is approximately $4.7 billion as of February 17, 2026, compared to $3.6 billion on February 18, 2025, reflecting a significant increase[91]. - In 2025, the company's five largest customers accounted for 49% of consolidated revenues, with the largest customer representing 13% of total revenues, highlighting significant reliance on major clients[99]. - The company has not paid or declared any dividends on its common shares due to restrictions in its indenture and credit agreements[208]. Business Combination and Risks - On February 9, 2026, Valaris entered into a business combination agreement with Transocean, where Transocean will acquire all Valaris shares at an exchange ratio of 15.235 Transocean shares for each Valaris share[23]. - The Business Combination Agreement with Transocean involves an exchange ratio of 15.235 Transocean shares for each Valaris share, resulting in Transocean shareholders owning approximately 53% and Valaris shareholders 47% of the combined company[75]. - If the Business Combination Agreement is terminated under certain circumstances, the company may incur a termination fee of approximately $173 million to Transocean[78]. - The company is subject to various risks related to the Business Combination, including potential delays or failure to complete the transaction due to external factors[75]. - The company may experience risks associated with future mergers, acquisitions, or dispositions of businesses, which could impact its financial stability[1]. Market Conditions and Competition - The offshore drilling industry is currently experiencing an oversupply of oil, but is expected to shift to a tighter market over the next few years due to underinvestment in upstream development[24]. - Valaris operates in a highly competitive environment, with significant variations in rig supply and demand affecting rig utilization and day rates[26]. - The offshore contract drilling industry is highly competitive, with pricing, safety records, and operational efficiency being key factors in securing contracts[88]. - Competition for skilled personnel is intense, leading to challenges in recruitment and retention, which could affect operational capabilities[113]. Sustainability and Compliance - The company is focused on sustainability and has a dedicated department to promote sustainable business practices and manage related risks[45]. - The company has adopted a policy against modern slavery and human trafficking in its business and supply chains[50]. - Compliance with environmental laws and regulations may impose additional costs and operational limitations on the company[1]. - Increased regulation and sustainability initiatives may restrict offshore drilling activities, adversely impacting financial results[153]. - The EU's Corporate Sustainability Reporting Directive may require the company to report on sustainability topics as early as 2028 for certain subsidiaries, increasing compliance costs[178]. Cybersecurity and Operational Risks - The company has implemented a cybersecurity program with administrative, technical, and physical safeguards to manage risks from cybersecurity threats[185]. - Cybersecurity risks are integrated into the company's enterprise risk management process, with regular reviews by the Executive Management Committee and the board of directors[189]. - The Audit Committee oversees the company's IT and cybersecurity program, receiving quarterly reports on cybersecurity incidents and risks[190]. - The company engages third-party service providers for cybersecurity assessments to strengthen its cybersecurity posture[192]. - No material cybersecurity threats or incidents have been reported as of the date of the annual report, but future risks remain[195]. Workforce and Training - The global workforce of the company was approximately 5,070 persons, including contractors, and about 3,800 persons excluding contractors as of December 31, 2025[52]. - Approximately 1,620 personnel have attended the Building Organizational Leadership (BOLD) training program since its launch in 2021[55]. - The company launched an enhanced leadership development program for senior offshore leaders in 2025, delivered through targeted workshops[55]. - The company emphasizes employee wellbeing by offering an employee assistance program (EAP) that provides access to mental health professionals and other benefits[53]. - The company has a diverse workforce representing 78 nationalities across 25 locations[52]. Legal and Regulatory Risks - The company faces risks from litigation, including contract disputes and environmental claims, which could adversely affect financial results[160]. - Increased climate-related litigation risks may arise, particularly from governmental entities seeking damages related to climate change[161]. - The company may encounter challenges in enforcing judgments against its directors and officers due to its Bermuda incorporation[162]. - Provisions in the company's bye-laws could delay or prevent a change in control, potentially affecting the price of its Common Shares[164]. - The company is subject to various international trade laws and regulations that could impact its operations and financial position[174]. Financial Covenants and Shareholder Returns - The 2028 Credit Agreement includes financial covenants requiring a minimum book value of equity to total assets ratio, interest coverage ratio, and liquidity[141]. - Valaris Limited's cumulative total shareholder return increased from $100 to $285.3 by 2023, reflecting a 185.3% growth since May 3, 2021[214]. - The cumulative total return for the S&P MidCap 400 Index was $105.9 by 2023, indicating a 5.9% increase since the same date[218]. - Valaris Limited's stock performance outperformed the Industry Index, which had a cumulative return of $167.3 by 2023[218]. - The company plans to continue its market expansion and product development strategies to enhance shareholder value[214].

Risks and Uncertainties - The company faces inherent risks and uncertainties that could adversely affect its operating performance and financial condition [64]. - Demand for products is cyclical, influenced by economic conditions, market demand, and pricing pressures, which may lead to significant fluctuations in profitability [65]. - A substantial portion of sales is derived from the commercial aerospace industry, which is subject to cyclical trends and external factors that could adversely affect pricing and profitability [66]. - The company relies on critical raw materials, which are subject to price volatility and supply chain disruptions, potentially impacting manufacturing and costs [71]. - Recent inflationary trends have led to increased costs for critical raw materials, including nickel and titanium, which may continue to affect financial results [72]. - The ongoing conflict between Russia and Ukraine has introduced significant market volatility and supply chain disruptions, impacting commodity prices and operational stability [76]. - Approximately 7,600 employees are active, with 35% covered by collective bargaining agreements, which may lead to labor disputes affecting production [81]. - The company is exposed to cybersecurity threats that could compromise data integrity and operational efficiency, potentially leading to significant financial losses [84]. - Climate change and regulatory efforts to transition to a lower-carbon economy present both risks and opportunities for the company's business [86]. - The company faces risks from climate-related changes, which could lead to increased operational costs, including higher insurance premiums [88]. - Export sales are expected to account for a significant percentage of future revenues, with risks including political instability and trade sanctions affecting access to critical raw materials [94]. - The company is subject to various environmental laws that may result in substantial cleanup costs and fines due to non-compliance [90]. - The company has experienced increased insurance costs and limitations on coverage, which could adversely affect future operations [100]. Financial Position and Debt - As of December 28, 2025, the company's total consolidated indebtedness was approximately $1.7 billion, with an additional borrowing capacity of $569 million under the Asset Based Lending (ABL) credit facility and up to $100 million under the Delayed-Draw Term Loan [106]. - The company’s agreements governing current and future indebtedness may contain restrictive covenants that could limit its operational flexibility and ability to engage in beneficial activities [107]. - The company’s substantial indebtedness increases its vulnerability to adverse economic conditions and may require a significant portion of cash flow to service debt, impacting funding for growth initiatives [109]. - The company expects approximately $40 million in minimum cash funding requirements for its defined benefit pension plan over the next ten years, with no significant annual impact anticipated [108]. Operational Challenges - The company is currently involved in the investigation and remediation of 40 sites under federal Superfund laws, with potential loss exposure on eight sites considered material [90]. - The company’s operations could be adversely impacted by disruptions in manufacturing processes due to various factors, including supply chain interruptions and natural disasters [93]. - The company hedged approximately 65% of its annual forecasted domestic requirements for natural gas for fiscal year 2026, with a net mark-to-market valuation of outstanding natural gas hedges showing an unrealized pre-tax loss of $0.6 million [233]. - The company utilized approximately 70 million pounds of nickel in fiscal year 2025, indicating that a hypothetical $1.00 per pound increase in nickel prices would result in increased costs of approximately $70 million [234]. - The company had entered into financial hedging arrangements for approximately 2 million pounds of nickel, representing less than 5% of a single year's estimated nickel raw material purchase requirements [235]. - The company recognized $2.6 million of income and $2.2 million of expense, net, for settled foreign currency forward contracts that were not designated as hedges during the fiscal years ended December 28, 2025, and December 29, 2024, respectively [238]. Strategic Initiatives - The company intends to strategically position its businesses through acquisitions and expansions, which involve inherent risks related to valuation and market conditions [101]. - The company is currently defending against lawsuits related to its pension plan obligations, with outcomes that could materially affect financial results [99]. - The company has publicly disclosed efforts to reduce greenhouse gas emissions, but evolving regulations may increase operational costs and require capital investments [88]. - The company’s goodwill impairment evaluation for fiscal year 2025 indicated that both reporting units had fair values exceeding their carrying values, mitigating immediate impairment risks [111]. - The company’s exposure to volatility in interest rates is currently not material, as nearly all of its debt is at fixed interest rates [230].

Financial Performance - Net sales increased by $390.3 million or 6.2% to $6,708.0 million in 2025 from $6,317.7 million in 2024, driven by higher sales across all end markets [220][227]. - Gross margin decreased to 14.0% in 2025 from 14.8% in 2024, primarily due to increased overhead and employee compensation costs [221][229]. - Operating income margin increased to 7.0% in 2025 from 6.9% in 2024, attributed to a cash receipt related to the Nanium acquisition [222]. - Selling, general and administrative expenses decreased by 8.2% to $331.8 million in 2025, primarily due to the recognition of the Nanium Insolvency Receipt [231]. - Research and development expenses increased by 2.3% to $166.7 million in 2025, focused on new packaging and test services [232]. - Total other expense, net increased to $22,766 thousand in 2025 from $7,439 thousand in 2024, representing a more than 100% increase [234]. Cash Flow and Investments - Net cash provided by operating activities was $1,095.6 million for 2025, compared to $1,088.9 million for 2024, mainly due to higher operating profits [224]. - Cash used in investing activities increased by $84.7 million to $(885,044) in 2025, primarily due to higher payments for property, plant, and equipment [261]. - Free cash flow for 2025 was $307,873, down from $359,275 in 2024, reflecting increased capital expenditures [264]. - The company sold receivables totaling $154.4 million in 2025 under non-recourse factoring arrangements, slightly down from $158.6 million in 2024 [243]. - The company’s cash flow from operating activities was impacted by changes in contract liabilities and higher operating profits [260]. Capital Expenditures and Future Outlook - Capital expenditures totaled $904.6 million in 2025, representing 13.5% of net sales, compared to $743.8 million or 11.8% of net sales in 2024 [223]. - The company expects capital expenditures in 2026 to be approximately $2.5 billion to $3.0 billion, significantly higher than the $904.6 million spent in 2025 [258]. - The company is expanding its manufacturing footprint with a new facility in Arizona, which began construction in the second half of 2025 [213]. Debt and Interest - As of December 31, 2025, the company had total debt of $1,445.2 million, with $162.4 million due within 12 months [248]. - Interest expense increased to $75,444 thousand in 2025 from $64,945 thousand in 2024, reflecting a 16.2% increase due to higher average outstanding debt [234]. - Interest income decreased to $(62,397) thousand in 2025 from $(65,541) thousand in 2024, a decline of 4.8%, primarily due to lower interest rates [235]. - The company has a total fixed rate debt of $956,171,000 with an average interest rate of 4.0% [291]. - The company has a total variable rate debt of $500,000,000 with an average interest rate of 5.4% [291]. - Total debt maturities amount to $1,456,171,000, with the largest portion of $444,016,000 due in 2030 [291]. Tax and Foreign Exchange - Income tax expense decreased to $68,503 thousand in 2025 from $75,481 thousand in 2024, a reduction of $6,978 thousand, with an effective tax rate of 15.4% [236]. - The company recognized a foreign exchange gain of $4.4 million for the year ended December 31, 2025, compared to a loss of $8.8 million in 2024 [287]. - Approximately 90% of net sales for the year ended December 31, 2025 were denominated in U.S. dollars, with the remaining in Japanese yen [285]. - A 10% appreciation of foreign currencies against the U.S. dollar could have resulted in a $163 million decrease in operating income for 2025 [285]. - The company employs natural hedging techniques and forward contracts to manage foreign currency risk [283]. Dividends - The company paid total quarterly cash dividends of $81.9 million in 2025 and anticipates continuing future dividends, subject to Board discretion [256].