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].

Financial Performance - Worldwide net sales were $2.1 billion in 2025, a 2% decrease from 2024 [206]. - Consolidated income from operations was $47.4 million in 2025, down from $286.5 million in 2024, primarily due to a $215 million provision for talc-related claims [206]. - Net loss was $18.4 million in 2025, compared to income of $167.1 million in the prior year, resulting in a loss of $0.59 per share [208]. - Income from operations in 2025 was $47.4 million, representing 2.3% of sales, a significant decrease from $286.5 million and 13.5% of sales in 2024 [224]. - The Consumer & Specialties segment's net sales decreased 4% to $1,097.7 million in 2025, driven by a challenging competitive environment in the cat litter products market [241]. - The Engineered Solutions segment's net sales slightly decreased to $974.9 million in 2025, with High-Temperature Technologies sales down 1% to $704.7 million [246]. - The Company recorded a consolidated net loss of $14.0 million in 2025, which included a $191.8 million charge related to litigation accrual and credit losses [237]. Cash Flow and Investments - Cash flow from operations for 2025 was $193.7 million, with cash, cash equivalents, and short-term investments totaling $332.6 million as of December 31, 2025 [209]. - Cash flow from continuing operations in 2025 was $193.7 million, down from $236.4 million in the prior year [252]. - The Company intends to use cash flow for investments in growth, shareholder returns, and debt reduction [252]. - Capital expenditures for 2026 are anticipated to be between $90 million and $100 million, aimed at improving operations and strategic growth [262]. - The Company repurchased $58.5 million in shares in 2025 under a $200 million buyback program [209]. - The Company repurchased 1,000,122 shares for $61.3 million under a share repurchase program authorized for up to $200 million [265]. Litigation and Provisions - In 2025, the Company recorded a provision for litigation accrual and credit losses of $215.0 million, including $30.0 million for debtor-in-possession financing [221]. - The Company recorded litigation expenses of $19.6 million in 2025 and $11.3 million in 2024 related to Oldco's bankruptcy [225]. - The Company recorded a provision of $215 million for estimated costs to fund a trust for talc-related claims and Chapter 11 Cases [270]. - The Company is involved in multiple lawsuits related to talc products, with accruals for loss contingencies recorded when liabilities are probable and estimable [279]. - In Q2 2024, the company recorded a provision for credit loss of $30 million due to an unfunded loan commitment related to the DIP Credit Agreement [306]. Tax and Compliance - The effective tax rate in 2025 was (35.0)%, primarily due to the net loss recorded during the year [229]. - The Company experienced a decrease in percentage depletion tax benefits to $8.9 million in 2025 from $10.0 million in 2024 [233]. - The Company began implementing the OECD's Pillar Two Model Rules in Q1 2024, assessing its impact across jurisdictions [236]. - The Company is in compliance with all covenants in the Amended Credit Agreement throughout the reporting period [259]. Assets and Liabilities - The net deferred tax liability was $75.5 million at December 31, 2025, down from $115.7 million in 2024, indicating a significant reduction in deferred tax liabilities [287]. - The allowance for credit losses (ACL) includes an unfunded loan commitment, which is recognized as a liability in accrued expenses [278]. - The Company assumed $1.9 million in long-term debt as part of the acquisition of Concept Pet Heimtierprodukte GmbH [261]. Research and Development - Research and development expenses were $22.9 million in 2025, representing 1.1% of net sales [220]. - The Company aims to increase market share in global cat litter products and deploy new products in pet care, including lightweight litter [214]. - The Company plans to continue developing innovative applications for its bleaching earth products in the edible oil and renewable fuel industries [214]. Pension and Interest Rates - The average rate of return on pension plan assets from inception through December 31, 2025, was approximately 9%, with a strategic allocation of 56% in equity securities, 32% in fixed income securities, and 12% in other securities [290]. - The Company recognized pension (benefit) expense of $(0.6) million in 2025, a decrease from $1.9 million in 2024, reflecting changes in discount rates and expected returns [291]. - An immediate 10% increase in interest rates would not materially affect the Company's results of operations, while a one percentage point change in interest rates would result in $4.2 million in incremental interest charges annually [303]. - The Company utilizes interest rate swaps to limit exposure to market fluctuations on floating-rate debt, having entered into a floating to fixed interest rate swap for a notional amount of $150 million [303]. Debt and Financing - As of December 31, 2025, there were no loans and $9.2 million in letters of credit outstanding under the Revolving Facility [256]. - The Company has a committed loan facility in Japan with an outstanding balance of $0.4 million as of December 31, 2025 [260]. - The Company assesses the recoverability of property, plant, and equipment using discounted cash flow models, with critical assumptions including business performance and financial results [283]. - The Company has two reporting units: Consumer & Specialties and Engineered Solutions, with no indication of impairment for either unit as of the fourth quarter of 2025 [281].

Sustainability Initiatives - In 2025, the company incurred capital expenditures of $241 million for health, safety, and environmental compliance, with an estimated $235 million planned for 2026 [81]. - The company aims to produce and market 800 thousand metric tons of recycled and renewable-based polymers annually by 2030, with a goal to reduce absolute scope 1 and 2 greenhouse gas emissions by 32% by 2030 relative to a 2020 baseline [83]. - The MoReTec-1 plant, set to start in 2027, will convert post-consumer plastic waste into feedstock, operating under 100% renewable power and reducing GHG emissions compared to traditional processes [84]. - Power purchase agreements secured in 2024 will enable the company to procure at least 50% of its electricity from renewable sources by 2030, reducing scope 2 GHG emissions by over 1.8 million metric tons annually [85]. - The shutdown of refining operations at the Houston refinery is expected to reduce scope 1 and 2 GHG emissions by approximately 3 million metric tons and scope 3 emissions by about 40 million metric tons by the end of 2026 compared to 2020 levels [86]. - The company estimates that capital spending to support sustainability goals will represent approximately 15% of the total 2026 capital budget, while delaying certain sustainability-related projects to preserve capital [88]. Workforce and Leadership - As of December 31, 2025, the company had approximately 18,970 employees, a decrease of about 7% compared to 2024, due to fixed cost reductions and the Houston refinery shutdown [92]. - In 2025, women held 25% of global senior leadership roles, with an aspirational goal of at least 33% male and female senior leaders globally by 2032 [95]. - The 2025 employee survey indicated that 82% of respondents believe they are treated fairly, reflecting the company's focus on equity and fairness in its systems and processes [96]. - In 2025, over 500 employees participated in global leadership development programs, with a new series focused on preparing leaders to navigate change attended by 138 leaders [98]. Financial Performance and Risk Management - The company estimates that a 10% change in commodity prices would affect the fair value of its commodity derivative contracts by approximately $51 million in 2025 and $45 million in 2024 [334]. - The company has foreign currency contracts with a notional amount of €2,510 million, which could impact other comprehensive income by $180 million in 2025 and $77 million in 2024 due to a 10% fluctuation in the euro/U.S. dollar rate [336]. - As of December 31, 2025, approximately 85% of the company's debt portfolio incurred interest at a fixed rate, with the remaining 15% at a variable rate [343]. - The company has no outstanding borrowings under its $3,750 million Senior Revolving Credit Facility and $900 million U.S. Receivables Facility as of December 31, 2025 [344]. - The company reported net foreign currency gains of $6 million in 2025 and $15 million in 2024 [339]. Research and Development - The company maintains research facilities in multiple locations, including Michigan, Texas, Ohio, Italy, and Germany [109]. - The company has a pre-issuance interest rate strategy involving forward-starting interest rate swaps, with no open contracts as of December 31, 2025 [341]. - The company’s interest rate swaps had a total notional amount of $1,885 million in 2025, down from $2,158 million in 2024 [342]. - The company’s foreign currency contracts that are accounted for as economic hedges have an aggregate notional amount of $295 million, maturing between January 2026 and October 2026 [339].

Customer Base and Services - Alliant Energy serves approximately 1,010,000 electric and 435,000 natural gas customers in the Midwest through its subsidiaries IPL and WPL[27]. - As of December 31, 2025, IPL provided electric service to approximately 505,000 customers and natural gas service to approximately 230,000 customers in Iowa[27]. - WPL supplied electric service to approximately 505,000 customers and natural gas service to approximately 205,000 customers in Wisconsin as of December 31, 2025[28]. - Alliant Energy's electric utility operations serve a diverse customer base, primarily in farming, industrial manufacturing, and data centers, with significant competition from self-generation and alternative energy sources[82][84]. Employee and Labor Relations - Alliant Energy had a total of 2,948 employees, with 58% covered by collective bargaining agreements[34]. - The majority of IPL's bargaining unit employees (74%) and WPL's bargaining unit employees (86%) are covered by collective bargaining agreements[34]. - Alliant Energy's Total Rewards programs include competitive salaries, a 401(k) savings plan, and various health benefits[41]. Safety and Environmental Compliance - The company is committed to safety, implementing a comprehensive safety management system to track performance and improve safety culture[36]. - Alliant Energy's energy efficiency plan (EEP) is required to be filed every five years with the IUC to achieve specified levels of energy savings[55]. - The EPA's final Section 111(d) rule requires states to implement plans to reduce CO2 emissions from fossil-fueled EGUs, with compliance phased in starting in 2030[70]. - Alliant Energy, IPL, and WPL are subject to significant regulatory uncertainty regarding environmental regulations, which could materially impact their financial condition[68]. - The Clean Air Act's revised standards under Section 111(b) establish CO2 emissions limits for new fossil-fueled EGUs, affecting future construction and operation[71]. - The company has established voluntary greenhouse gas (GHG) reduction goals, but uncertainties regarding regulations and technology may hinder progress[118]. - Alliant Energy aims to eliminate all coal-fired EGUs from its generating fleet by 2040 and achieve net-zero GHG emissions from its utility operations by 2050[209]. Financial Performance - Total revenues for Alliant Energy reached $3.697 billion in 2025, up from $3.372 billion in 2024, representing an increase of 9.7% year-over-year[98]. - Total revenues for IPL and WPL combined reached $1,896 million in 2025, up from $1,747 million in 2024, representing an increase of 8.5%[100]. - Alliant Energy's net income for Utilities and Corporate Services increased by $153 million in 2025, reaching $875 million, compared to $722 million in 2024, resulting in an EPS of $3.39, up from $2.81[179]. - Alliant Energy's net income decreased by $34 million in 2025 compared to 2024, primarily due to an asset valuation charge and higher financing expenses[181]. Revenue and Sales Growth - Residential sales increased to $1.339 billion in 2025 from $1.236 billion in 2024, a growth of 8.3%[98]. - Electric utility revenues increased by $325 million for Alliant Energy in 2025 compared to 2024, driven by higher revenue requirements and changes in sales volumes due to temperatures[186]. - Retail electric sales volumes increased by 2% in 2025, while retail gas sales volumes increased by 14%, primarily due to temperature changes[183]. - Gas utility revenues increased by $60 million for Alliant Energy in 2025, driven by changes in gas costs and sales volumes due to temperatures[187]. Capital Expenditures and Investments - The company has forecasted capital expenditures of approximately $13 billion over the next four years, which is dependent on access to capital markets[140]. - Alliant Energy plans to develop and/or acquire approximately 1,600 MW of new natural gas resources, 1,000 MW of new energy storage, and 1,300 MW of new renewable generation over the next five years[180]. - Alliant Energy's capital allocation strategy focuses on growth, including the development of energy resources to meet future demand and investments in transmission through ATC[174]. - The company plans to invest in technology to enhance productivity and efficiency, with estimated capital expenditures for technology projects included in the construction and acquisition expenditures table for 2026 through 2029[215]. Regulatory Environment - The company is subject to various regulations, including the Public Utility Holding Company Act of 2005 and the Energy Policy Act of 2005, impacting its operations[45]. - Regulatory authorities may impose financial penalties and sanctions, which could adversely impact the construction of new projects and financial condition[115]. - The utility business is significantly impacted by government legislation and regulation, affecting rates, authorized returns, and cost recovery[114]. Risks and Challenges - The company faces significant risks from cyber attacks, which could disrupt operations and lead to loss of confidential information, potentially resulting in substantial financial losses[125]. - Supply chain disruptions are expected to continue impacting the company's ability to procure critical materials and services, leading to increased costs and delays in construction projects[128]. - Natural disasters and extreme weather events may lead to increased operational costs and reduced energy demand, negatively impacting revenues[131]. - Inflation has significantly increased costs for labor, materials, and services, which may not be fully recoverable in rates, impacting financial results[138]. - The company relies on non-utility operations for a portion of earnings, and underperformance in these areas could adversely affect financial condition[135]. Future Outlook - Alliant Energy expects to issue up to $2.4 billion of common stock from 2026 through 2029[195]. - Alliant Energy, IPL, and WPL expect increases in electric utility and gas utility revenues in 2026 compared to 2025 due to rising revenue requirements[195]. - Alliant Energy, IPL, and WPL anticipate an increase in retail electric sales in 2026 driven by expected load growth from new customers[195].

Financial Performance - Net revenues for the year ended December 31, 2025 increased by $72.5 million to $2.01 billion, a growth of 3.7% compared to 2024 [261]. - Operating income for 2025 was $597.4 million, reflecting a 5.1% increase from $568.7 million in 2024 [262]. - Casino revenues rose by 5.0% to $1.34 billion, while room revenues decreased by 5.2% to $190.1 million due to renovations [259][261]. - Food and beverage revenues remained stable at $362.4 million, with a 5.2% increase in guests served but a 4.4% decrease in average guest check [264]. - Net income attributable to Red Rock increased by 22.1% to $188.1 million compared to $154.1 million in 2024 [259]. - Adjusted EBITDA for 2025 was $848,591, up from $795,900 in 2024, reflecting an increase of about 6.6% [280]. - Net income for 2025 was $355,670, compared to $291,292 in 2024, indicating a growth of approximately 22.1% [280]. Expenses and Costs - SG&A expenses increased by 2.1% to $441.3 million, representing 21.9% of net revenues, effectively flat compared to the prior year [268]. - Interest expense, net, decreased by 11.8% to $201.9 million, primarily due to lower interest rates and borrowings [271]. - Cash paid for capital expenditures in 2025 was $319.0 million, compared to $283.9 million in 2024, primarily related to renovation and expansion projects [306]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2025, totaled $142.5 million, with borrowing availability under the revolving credit facility at $898.2 million [288]. - The company reported net cash provided by operating activities of $609,513 for the year ended December 31, 2025, compared to $548,263 in 2024 [303]. - Net cash provided by operating activities for the year ended December 31, 2025 totaled $609.5 million, an increase from $548.3 million in 2024, driven by higher revenues and changes in working capital accounts [305]. - The company anticipates that cash on hand and cash generated from operations will be sufficient to fund operations and capital requirements for the next twelve months [302]. Dividends and Share Repurchase - A quarterly cash dividend of $0.26 per share of Class A common stock is scheduled for March 31, 2026, along with a special cash dividend of $1.00 per share on February 27, 2026 [298]. - The company repurchased 1,551,576 shares in open market transactions at a weighted-average price of $51.45 per share during the year ended December 31, 2025 [301]. - The company paid $120.8 million in dividends to Class A common stockholders for the year ended December 31, 2025 [307]. Debt and Financing - As of December 31, 2025, the company had $1.7 billion of borrowings under credit agreements based on variable rates, with a potential annual interest cost increase of approximately $17.3 million for a 1% rise in rates [297]. - The company reduced its outstanding indebtedness by $15.7 million for the year ended December 31, 2025 [307]. - Total cash flows from financing activities for the year ended December 31, 2025 were $(385.6) million, compared to $(199.7) million in 2024 [303]. Taxation - The effective tax rate for 2025 was 11.6%, slightly higher than 11.2% in 2024, with income tax expense of $46.7 million [276]. - As of December 31, 2025, the company had a net deferred tax asset of $12.1 million related to the outside basis difference in its partnership investment [320]. Regulatory and Compliance - The company is subject to extensive regulation by gaming authorities, which may impact future operations and financial performance [314]. - The company is currently in compliance with all applicable covenants as of December 31, 2025 [311]. - The company is subject to a maximum total secured leverage ratio of 5.00 to 1.00 as part of its financial ratio covenants [311]. Development Projects - Development fee revenues of $17.6 million were recognized from the North Fork Project, including a $6.1 million catch-up for prior years [266]. - A gain of $8.5 million was recognized on Native American development related to the North Fork Project [275]. - The company has development agreements with the North Fork Rancheria of Mono Indians to assist in developing a gaming and entertainment facility in California [313].