Financial Performance - For the year ended December 31, 2025, net sales were $21.7 billion, with an operating profit of $2.2 billion, and international operations accounted for approximately 52% of net sales[19] - New equipment sales comprised 72% of total net sales, while parts and service accounted for 28%[19] Strategic Initiatives - In 2023, the company initiated a portfolio transformation to establish itself as a pure-play leader in intelligent climate and energy solutions, focusing on electrification and energy-efficient solutions[25] - The acquisition of the Viessmann Group's climate solutions business in January 2024 expanded the company's portfolio in sustainable building and energy management solutions[26] - A purchase agreement was signed to sell the Riello business for expected gross proceeds of approximately $430 million, with the transaction anticipated to close in the first half of 2026[27] - The company plans to enhance its product offerings with digitally-enabled lifecycle solutions, including the Abound cloud-based platform and the Lynx digital platform developed with AWS[30] - The company plans to invest over $4 billion to develop intelligent climate and energy solutions aimed at reducing environmental impacts by 2030[41] - The company aims to avoid more than 1 gigaton of customer greenhouse gas emissions and achieve carbon-neutral operations by 2030[41] Innovation and Intellectual Property - The company holds approximately 11,000 active patents and pending patent applications worldwide, protecting its research and development investments[36] Operations and Workforce - As of December 31, 2025, the company had approximately 47,000 employees worldwide, with 34% in the Americas, 36% in Europe, and 30% in Asia Pacific, Middle East & Africa[44] - The company promotes learning and development through various programs, including technical training and leadership development reviews[46] - The company measures employee engagement through three annual Pulse surveys to assess sentiment related to company priorities and leadership practices[50] Safety and Health - The total recordable incident rate (TRIR) for 2025 was 0.35, and the lost time incident rate (LTIR) was 0.13, indicating a focus on employee health and safety[48] Financial Risks - The company is exposed to fluctuations in foreign currency exchange rates, interest rates, and commodity prices, which could impact financial results[253] - Substantially all of the company's long-term debt has fixed interest rates, minimizing the impact of market interest rate fluctuations on operations[257] - The company actively manages material currency exposures associated with purchases and sales at the legal entity level[254] - The company has no commodity hedge contracts in place as of December 31, 2025, exposing it to volatility in commodity prices[256] Market Demand - Demand for HVAC products is seasonal, with higher sales typically occurring in the second and third quarters due to increased air conditioning needs[39] Joint Ventures - The company operates 58 joint ventures, with 52% related to Climate Solutions Americas and 38% to Climate Solutions Asia Pacific, Middle East & Africa, which are integral to its growth strategy[38]

Geopolitical and Economic Risks - The company is exposed to significant risks from geopolitical conflicts, including the military conflict between Russia and Ukraine, which may adversely impact operations and financial performance [84]. - The company faces risks related to currency exchange rate fluctuations, which can affect reported results and the cost of raw materials [79]. - The company has operations in various international markets, making it vulnerable to changes in foreign trade policies and tariffs, which could disrupt supply chains and increase product costs [83]. - The company has experienced supply chain delays and higher material costs due to the COVID-19 pandemic, impacting revenues and operational capabilities [87]. Legal and Regulatory Risks - The company is involved in ongoing Chapter 11 bankruptcy cases for subsidiaries Aldrich and Murray, which may have material effects on financial condition and future obligations [89]. - The outcome of the Chapter 11 cases remains uncertain, with potential liabilities that could impact the company's financial results [93]. - Legal and regulatory proceedings may adversely affect the company's operations and financial condition, with potential significant expenses related to litigation [88]. - The company is subject to risks from tax audits and changes in tax laws, which could impact financial results and obligations [15]. - Regulatory compliance is a significant concern, with potential penalties for violations impacting financial performance and operational capabilities [102]. Cybersecurity and Data Privacy Risks - The company relies on information technology systems for operations, which are subject to risks from cyber attacks and other disruptions that could impair business management [94]. - The company is at risk of cyber attacks and unauthorized access, which could negatively impact business operations and financial results [96]. - Despite implementing security policies and controls, the evolving nature of cyber threats requires continuous evaluation and adaptation of systems [97]. - Compliance with data privacy regulations, such as GDPR, increases operational costs and exposes the company to potential fines and penalties [98]. Environmental and Sustainability Risks - Climate change regulations may necessitate costly changes to products, affecting competitiveness and operational costs [103]. - The company has committed to reducing one billion metric tons of carbon emissions by 2030, but achieving these sustainability goals involves risks and uncertainties [104]. Business Strategy and Operational Risks - The business strategy includes acquisitions and joint ventures, which may not yield expected results and could adversely affect financial performance [106]. - Catastrophic events, including natural disasters and pandemics, pose risks to operations and supply chains, potentially leading to financial losses [110]. - Attracting and retaining qualified talent is critical for operational success, with a competitive market for skilled employees impacting business performance [111]. - The company may face adverse effects from temporary work stoppages, union negotiations, and labor disputes, which could significantly increase labor costs and impact productivity [112]. Taxation and Shareholder Implications - Changes in tax laws and regulations, including the introduction of a global minimum tax rate of 15% by the EU, could materially increase the company's tax burden and effective tax rate [114]. - The company is monitoring ongoing tax changes and legislative proposals that could adversely impact its financial condition and results of operations [116]. - The company is subject to Irish dividend withholding tax at a rate of 25% on dividends paid to shareholders, which may affect share prices [122]. - Shareholders may not be subject to Irish withholding tax if they complete certain forms, but some may still face withholding tax implications [122]. - The company’s ability to issue shares or raise capital could be adversely affected if it cannot obtain necessary shareholder authorizations under Irish law [120]. - Quarterly cash dividends are a key part of the company's capital allocation strategy, but they are not guaranteed and may be modified or discontinued [121]. - The company is governed by Irish law, which differs from U.S. laws and may afford less protection to shareholders [118]. - Tax authorities periodically review the company's tax returns, which could result in additional taxes or penalties if discrepancies are found [117]. - The company continues to monitor the impact of international tax rules, including those from the OECD, on its operations and tax obligations [114].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-40840 RBC BEARINGS INCORPORATED (Exact name of registrant as specified in its charter) | Delaware | 95-4372080 | | --- | --- | | (State ...

Financial Performance - Total revenues for the three months ended December 31, 2025, were $822.465 million, an increase from $766.489 million in 2024[86]. - Basic net income per share increased to $3.12 for the three months ended December 31, 2025, compared to $2.85 for the same period in 2024[82]. - Systems revenue rose to $218.356 million in the three months ended December 31, 2025, compared to $159.708 million in 2024, while software revenue decreased to $191.927 million from $208.789 million[86]. - The Americas region generated $439.788 million in revenue for the three months ended December 31, 2025, up from $431.973 million in 2024[86]. Revenue Recognition and Deferred Revenue - As of December 31, 2025, the total non-cancelable remaining performance obligations under the Company's contracts with customers was $2.1 billion, with an expectation to recognize revenues on 60.8% of these obligations over the next 12 months[34]. - The balance of deferred revenue increased to $2.1 billion as of December 31, 2025, up from $1.8 billion at the beginning of the period, reflecting an addition of $493.8 million during the quarter[33]. Acquisitions and Goodwill - The acquisition of CalypsoAI Corp. was completed for $145.2 million in cash, enhancing the Company's capabilities in enterprise AI security[43]. - The goodwill related to the CalypsoAI acquisition was primarily due to expected synergies and was not deductible for tax purposes[44]. - The Company completed three additional acquisitions during fiscal 2025, resulting in $17.4 million of goodwill, although these acquisitions did not materially impact operating results[47]. Cash and Investments - Cash and cash equivalents decreased to $1.2 billion as of December 31, 2025, from $1.3 billion at the end of September 2025[48]. - The Company recognized interest income of $8.9 million for the three months ended December 31, 2025, compared to $10.3 million for the same period in 2024[39]. Inventory and Assets - Finished goods inventory increased to $35,302,000 from $26,933,000, while raw materials decreased to $44,593,000 from $50,296,000, resulting in total inventories of $79,895,000 compared to $77,229,000[49]. - Unbilled receivables rose to $512,595,000 from $498,288,000, and prepaid expenses increased to $145,388,000 from $86,346,000, leading to total other current assets of $742,163,000, up from $682,766,000[50]. - Total other assets decreased to $509,782,000 from $552,280,000, primarily due to a decline in intangible assets from $96,266,000 to $84,206,000[51]. Liabilities and Commitments - Accrued liabilities decreased to $305,188,000 from $315,383,000, with payroll and benefits liabilities dropping from $189,337,000 to $167,096,000[52]. - The Company’s total operating lease liabilities increased to $267,718,000 from $261,791,000, with a weighted average remaining lease term of 7.8 years and a discount rate of 3.33%[58]. - The Company has a commitment to purchase $10.0 million of component inventory annually under a four-year agreement, totaling $40.0 million, with no remaining commitments as of December 31, 2025[63]. Legal and Regulatory Matters - The Company is engaged in ongoing legal proceedings, including a putative class action complaint alleging false statements regarding cybersecurity capabilities[69]. - The Company is currently evaluating the impact of new accounting standards on its disclosures, including ASU 2023-09 and ASU 2024-03, which will affect future financial reporting[28][29]. Taxation - The effective tax rate for the three months ended December 31, 2025, was 19.2%, down from 20.4% for the same period in 2024, primarily due to changes in unrecognized tax benefits[9]. - As of December 31, 2025, the company had $80.9 million in unrecognized tax benefits, which may change within the next twelve months due to audit settlements[76]. Share Repurchase - The company repurchased 1,203 thousand shares at an average price of $249.33 per share, totaling $300.024 million during the three months ended December 31, 2025[80]. - The company has $622.4 million remaining authorized for share repurchases under its program as of December 31, 2025[80]. Cybersecurity Incident - The Company incurred $17.5 million in costs related to a Cyber Incident for the three months ended December 31, 2025[74].

Revenue and Growth - For YTD 2026, the company's revenue was generated approximately 52% from outside the United States, compared to 50% in YTD 2025[102]. - Thermon reported sales of $147.3 million for the three months ended December 31, 2025, a 10% increase from $134.4 million in the same period of 2024[119]. - For the nine months ended December 31, 2025, sales totaled $387.9 million, a 7% increase from $364.1 million in the same period of 2024[133]. - Revenue from the EMEA region grew significantly by 36.5% to $18.9 million, driven by increased project activity and the acquisition of F.A.T.I.[121]. - The company experienced a 21% compound annual growth rate in the liquid load bank market, projected to grow from $84 million in 2024 to $386 million by 2032[115]. Revenue Recognition - Revenue recognized at a point-in-time accounted for 69% of total revenue for the three months ended December 31, 2025, down from 74% in the same period of 2024[109]. - Over time revenue represented 31% of total revenue for the three months ended December 31, 2025, compared to 26% in the same period of 2024[109]. - Approximately 69% of total revenue in Q1 2026 was recognized at a point in time, indicating a shift towards more project-related activity compared to 74% in the prior year[120]. Financial Performance - Gross profit for the same period increased to $68.7 million, reflecting an 11% rise from $62.1 million, resulting in a gross margin of 46.6%, up 40 basis points year-over-year[119][123]. - Thermon’s net income for the three months ended December 31, 2025, was $18.3 million, a slight decrease of 1% from $18.5 million in the same period of 2024[119]. - The company’s effective tax rate was 25.7% for Q1 2026, a marginal decrease from 25.9% in Q1 2025[130]. - In YTD 2026, the effective tax rate was 24.8%, a decrease from 25.5% in YTD 2025, influenced by discrete tax items[145]. - Interest expense decreased to $131 million in YTD 2026 from $163 million in YTD 2025, with an average interest rate decline from 6.1% to 5.4%[143]. Cash Flow and Investments - Free Cash Flow for YTD 2026 was $25.7 million, up from $23.9 million in YTD 2025, driven by higher operating cash flows[159]. - Operating cash flows increased to $36.1 million in YTD 2026 compared to $31.1 million in YTD 2025, primarily due to higher net income[152]. - Cash used in investing activities decreased to $(9.9) million in YTD 2026 from $(11.3) million in YTD 2025, reflecting fewer acquisitions[154]. - As of December 31, 2025, the company had $46.9 million in cash and cash equivalents and $94.3 million in available borrowing capacity[148]. - The company expects capital expenditures to be approximately 2.5% to 3.0% of revenue in fiscal 2026[151]. Risk Factors - The company is exposed to commodity price risks due to reliance on market prices for raw materials without long-term purchase commitments or hedging instruments[171]. - Recent periods have seen shortages in certain raw materials, leading to increased costs attributed to tariffs, alternate suppliers, higher freight costs, and increased lead times[172]. - The company cannot guarantee the ability to mitigate temporary raw material shortages or pass cost increases to customers, which may adversely affect operational results[172]. - A 10% appreciation of the U.S. dollar relative to the Canadian dollar would decrease net income by $2.3 million for YTD 2026[166]. Strategic Initiatives - The company aims to secure more new facility project bids and generate more revenue from facility maintenance and upgrades[96]. - The company has implemented price adjustments and optimized its global manufacturing footprint to manage tariff-related costs[114]. - The company has a diversified product offering with over 250 products, software, and services across multiple brands[100]. - The company is focused on developing strategic alliances with major customers and suppliers to enhance its market position[96]. - The company’s acquisition strategy focuses on businesses in the process heating solutions industry, contributing to growth and diversification[117]. Foreign Exchange Impact - Foreign exchange rates positively impacted revenues by approximately $1.5 million in Q1 2026 due to a weaker U.S. dollar[122]. - The unrealized effects of foreign currency translations resulted in gains of $15.5 million in YTD 2026 compared to losses of $18.3 million in YTD 2025[169]. Backlog - The backlog at December 31, 2025, was $259.4 million, an increase from $240.3 million at March 31, 2025[104].

Financial Performance - In fiscal 2025, consolidated net sales were $3.1 billion, with the Pet segment contributing approximately $1.8 billion and the Garden segment approximately $1.3 billion[106]. - For the first quarter of fiscal 2026, net sales decreased by $39.0 million, or 6.0%, to $617 million, with Pet net sales down 2.7% and Garden net sales down 12.0%[108]. - Gross profit for the first quarter of fiscal 2026 decreased by $5.1 million, or 2.6%, to $190.6 million, while gross margin increased by 110 basis points to 30.9%[115]. - Operating income for the first quarter of fiscal 2026 declined by $11.5 million, or 40.9%, to $16.5 million, with an operating margin decrease from 4.3% to 2.7%[121]. - Net income for the first quarter of fiscal 2026 was $6.8 million, or $0.11 per diluted share, compared to $14.0 million, or $0.21 per diluted share, in the prior year[128]. - The Garden segment reported an operating loss of $9.7 million for the first quarter of fiscal 2026, down from an income of $2.4 million in the prior year[123]. - GAAP net income attributable to Central Garden & Pet Company for the three months ended December 27, 2025, was $6.841 million, a decrease from $14.009 million for the same period in 2024[132]. - Non-GAAP net income attributable to Central Garden & Pet Company for the three months ended December 27, 2025, was $12.779 million, unchanged from the previous year[132]. - Total net sales for the three months ended December 27, 2025, were $617.373 million, with a gross profit of $190.608 million, resulting in a gross margin of 30.9%[135]. - The Pet segment reported a GAAP operating income of $49.800 million, while the Garden segment reported a GAAP operating loss of $9.679 million for the three months ended December 27, 2025[136][137]. - Adjusted EBITDA for the three months ended December 27, 2025, was $49.763 million, compared to $55.436 million for the same period in 2024[139][140]. Expenses and Cash Flow - Selling, general and administrative expenses increased by $6.4 million, or 3.8%, to $174.1 million, representing 28.2% of net sales for the first quarter of fiscal 2026[117]. - Net cash used by operating activities increased by $1.4 million to $70.2 million for the three months ended December 27, 2025[147]. - Net cash used in investing activities increased by $58.4 million to $67.8 million during the three months ended December 27, 2025, primarily due to increased acquisition activity[148]. Debt and Financing - Total debt outstanding as of December 27, 2025, was $1,192.2 million, slightly up from $1,190.4 million at December 28, 2024[153]. - The company has a $600 million senior secured asset-based revolving credit facility, with an additional $400 million available through an accordion feature, maturing on November 7, 2030[171]. - Net availability under the credit facility was approximately $545 million as of December 27, 2025, with no outstanding borrowings or letters of credit[172]. - The applicable margin for SOFR-based borrowings was 1.00% as of December 27, 2025, with an interest rate of 4.7% for one-month SOFR-based borrowings[173]. - The company issued $300 million of 5.125% senior notes due February 2028, with proceeds used for acquisitions and general corporate purposes[166]. - The 2030 Notes can be redeemed at various percentages starting from 102.063% on October 15, 2025, decreasing to 100.0% on October 15, 2028[163]. - The company was in compliance with all financial covenants as of December 27, 2025, including a minimum fixed charge coverage ratio of 1:1 under the credit facility[175]. - The company incurred approximately $4.8 million in debt issuance costs related to the 2028 Notes, amortized over the term of the notes[167]. - The holders of the 2030 and 2028 Notes have the right to require repurchase at 101.0% of the principal amount upon a change of control[164][169]. Acquisitions and Growth Strategy - In December 2025, the company acquired the U.S. assets of Champion USA LLC for approximately $57 million, enhancing its position in the livestock industry[110]. - The company plans to continue evaluating potential acquisition candidates as part of its growth strategy[152]. - Capital expenditures are anticipated to be approximately $50 million in fiscal 2026, with $11 million already invested through December 27, 2025[151]. Assets and Liabilities - As of December 27, 2025, total assets amounted to $5.2 billion, while total liabilities were $3.6 billion, leading to a net asset position of $1.6 billion[182].

Financial Performance - In fiscal 2025, consolidated net sales were $3.1 billion, with the Pet segment contributing approximately $1.8 billion and the Garden segment approximately $1.3 billion[106]. - For the first quarter of fiscal 2026, net sales decreased by $39.0 million, or 6.0%, to $617 million, with Pet net sales down 2.7% and Garden net sales down 12.0%[108]. - Gross profit for the first quarter of fiscal 2026 decreased by $5.1 million, or 2.6%, to $190.6 million, while gross margin increased by 110 basis points to 30.9%[115]. - Operating income for the first quarter of fiscal 2026 declined by $11.5 million, or 40.9%, to $16.5 million, with an operating margin decrease from 4.3% to 2.7%[121]. - Net income for the first quarter of fiscal 2026 was $6.8 million, or $0.11 per diluted share, compared to $14.0 million, or $0.21 per diluted share, in the prior year[128]. - GAAP net income attributable to Central Garden & Pet Company for the three months ended December 27, 2025, was $6.841 million, down from $14.009 million for the same period in 2024[132]. - Non-GAAP net income attributable to Central Garden & Pet Company for the three months ended December 27, 2025, was $12.779 million, unchanged from the same period in 2024[132]. - Net sales for the three months ended December 27, 2025, were $617.373 million, with a gross profit of $190.608 million, resulting in a gross margin of 30.9%[135]. - The Pet segment's GAAP operating income was $49.800 million, while the Garden segment reported a GAAP operating loss of $9.679 million for the three months ended December 27, 2025[136][137]. - Adjusted EBITDA for the three months ended December 27, 2025, was $49.763 million, compared to $55.436 million for the same period in 2024[139][140]. Expenses and Income - Selling, general and administrative expenses increased by $6.4 million, or 3.8%, to $174.1 million, representing 28.2% of net sales for the first quarter of fiscal 2026[117]. - Pet operating income decreased by $1.5 million, or 2.8%, to $49.8 million, while Garden operating income turned to a loss of $9.7 million, down from a profit of $2.4 million[122][123]. - Net interest expense for the first quarter of fiscal 2026 was $7.8 million, consistent with $7.7 million in the prior year[125]. - The effective income tax rate for the quarter ended December 27, 2025, was 23.3%, relatively consistent with 23.5% for the prior year[127]. Cash Flow and Investments - Net cash used by operating activities increased by $1.4 million, from $68.8 million for the three months ended December 28, 2024, to $70.2 million for the three months ended December 27, 2025[147]. - Net cash used in investing activities increased by $58.4 million, from $9.4 million for the three months ended December 28, 2024, to $67.8 million for the three months ended December 27, 2025, primarily due to increased acquisition activity[148]. - Capital expenditures are anticipated to be approximately $50 million in fiscal 2026, with $11 million already invested through December 27, 2025[151]. Debt and Financing - Total debt outstanding as of December 27, 2025, was $1,192.2 million, compared to $1,190.4 million at December 28, 2024[153]. - The Credit Facility provides for a $600 million principal amount senior secured asset-based revolving credit facility, with an additional $400 million available[171]. - As of December 27, 2025, net availability under the Credit Facility was approximately $545 million, with no borrowings outstanding[172]. - The applicable margin for SOFR-based borrowings was 1.00% as of December 27, 2025[173]. - The company incurred approximately $4.8 million of debt issuance costs related to the 2028 Notes, amortized over the term of the notes[167]. - The 2030 Notes can be redeemed at 102.063% on or after October 15, 2025, with accrued and unpaid interest[163]. - The 2028 Notes require semiannual interest payments and can be redeemed at 100.0% on or after January 1, 2026[168]. Acquisitions - The company acquired the U.S. assets of Champion USA LLC for approximately $57 million in December 2025, enhancing its position in the livestock industry[110]. - The company expects to continue evaluating potential acquisition candidates, which may require additional external capital[152]. Parent/Issuer Guarantors - As of December 27, 2025, net sales for the Parent/Issuer Guarantors were $162.8 million for the three months ended and $456.65 million for the fiscal year ended[182]. - Gross profit for the Parent/Issuer Guarantors was $38.145 million for the three months ended and $152.319 million for the fiscal year ended[182]. - The net income (loss) for the Parent/Issuer Guarantors was $(15.363) million for the three months ended and $(45.373) million for the fiscal year ended[182]. - The total assets for the Parent/Issuer as of December 27, 2025, were $5.219 billion, while total liabilities were $3.615 billion[182].

Acquisition and Business Performance - The Company acquired Advanced Power Solutions (APS) on May 2, 2025, contributing $64.6 million in net sales and $5.3 million in segment profit for the Batteries and Lights segment during the three months ended December 31, 2025[147]. - Batteries & Lights segment net sales increased by 8.3% to $685.2 million, driven by the APS acquisition, while organic sales declined by 3.8%[177]. - Energizer reported a net loss of $3.4 million, or a loss of $0.05 per common share, for the first fiscal quarter, compared to net earnings of $22.3 million, or $0.30 per common share, in the prior year[158]. - Adjusted diluted net earnings per common share were $0.31 for the first fiscal quarter, down from $0.67 in the prior year quarter[160]. - Net sales for the first fiscal quarter of 2026 were $778.9 million, an increase of $47.2 million, or 6.5%, compared to the prior year quarter[164]. - Organic net sales declined by 4.3%, primarily due to decreased volumes from softer consumer demand in the U.S.[164]. Cost Management and Restructuring - The Company achieved approximately $206 million in savings from the Project Momentum program as of September 30, 2025, primarily within COGS and SG&A[152]. - The Company incurred $20.3 million in pre-tax costs related to Project Momentum during the quarter ended December 31, 2024, primarily consisting of severance, accelerated depreciation, and consulting costs[152]. - The total estimated restructuring and related pre-tax costs for the fourth year of the program are expected to be between $35.0 million and $40.0 million, with additional costs of $25.0 million to $30.0 million related to U.S. manufacturing efficiency initiatives[155]. - The company incurred $30.9 million in pre-tax restructuring and related costs during the quarter, primarily for severance and other benefits[156]. Financial Outlook and Tax Credits - The Company expects future production tax credits from the Inflation Reduction Act to be approximately $55 to $65 million based on current regulations prior to the phase-out period[146]. - The Company recognized a credit of $9.7 million for production credits during the first fiscal quarter of 2026, following the achievement of reasonable assurance over the ability to claim these credits[145]. - The effective tax rate for adjusted net earnings was 22.5%, down from 24.8% in the prior year, attributed to production tax credits[173]. Macroeconomic and Operational Challenges - The Company anticipates continued macroeconomic pressures and geopolitical instability, which may negatively impact financial results and operations in fiscal 2026[149]. - The Company is subject to risks related to international operations, including tariffs and currency fluctuations, which could adversely affect results of operations[133]. - The Company extended Project Momentum into fiscal 2026 to help neutralize the impact of tariffs and optimize manufacturing and supply chain networks[150]. Segment Performance and Profitability - Global reported segment profit declined 17.9%, with an organic profit decline of $35.1 million, or 25.1%, due to decreased organic net sales and increased input costs[180]. - Batteries & Lights segment profit decreased by 11.4%, with an organic segment profit decline of $23.0 million, or 19.3%, impacted by tariffs and increased input costs[181]. - Auto Care reported a net sales decrease of 5.6% compared to the prior year, driven by an organic net sales decline of $6.9 million, or 6.9%[178]. - Auto Care segment profit decreased by 55.6%, with an organic segment profit decline of $12.1 million, or 59.0%, due to increased input costs from tariffs[182]. Cash Flow and Investments - Cash flow from operating activities was $149.5 million for the three months ended December 31, 2025, compared to $77.0 million in the prior year, driven by working capital changes[188]. - Net cash used by investing activities was $25.3 million for the three months ended December 31, 2025, primarily related to capital expenditures[189]. - Total investing cash outflows of approximately $75 to $85 million are anticipated in fiscal 2026 for capital expenditures, including investments from Project Momentum[190]. Debt and Financial Instruments - The Company had $214.8 million in cash and cash equivalents as of December 31, 2025, with approximately 90% held outside the U.S.[185]. - The Company has a Senior Secured Term Loan of $765.7 million due in 2032 and a $500 million Revolving Credit Facility due in 2030[186]. - As of December 31, 2025, Energizer had variable rate debt outstanding of $766.2 million under the Term Loan and international borrowings[209]. - The company recorded an unrealized pre-tax gain of $21.0 million on the interest rate swap as of December 31, 2025[211]. - The company has an interest rate swap that fixes the variable benchmark component (SOFR) at an interest rate of 1.042% on variable rate debt of $500.0 million[210]. - The weighted average interest rate on variable rate debt, inclusive of the interest rate swap, was 4.02% for the quarter ended December 31, 2025[211]. Currency and Inflation Accounting - The change in estimated fair value of foreign currency derivative contracts resulted in a loss of $0.9 million for the quarter ended December 31, 2025[206]. - The Egypt subsidiary's financial statements were consolidated under highly inflationary accounting effective October 1, 2024, due to a cumulative inflation rate exceeding 100 percent[213]. - The Argentina subsidiary's financial statements have been consolidated under highly inflationary accounting since July 1, 2018, also due to a cumulative inflation rate exceeding 100 percent[214]. - The financial impact of using highly inflationary accounting for Egypt and Argentina is difficult to determine and depends on exchange rate movements and monetary assets and liabilities[215]. - The company uses hedging instruments to reduce exposure to price volatility of raw materials[207]. - The company recorded an unrealized pre-tax gain of $2.6 million as of December 31, 2025, on the interest rate swap related to future zinc purchases[208].

Financial Performance - Union Bankshares, Inc. reported net income for Q4 2025, with specific figures to be detailed in the press release[6] - The press release includes net income per share for the year ended December 31, 2025, with exact figures to be provided[6] - The report does not include specific user data or future guidance, focusing instead on financial performance and governance changes[5][6] Dividend Declaration - The company declared a quarterly cash dividend of $0.36 per share, payable on February 5, 2026[7] - The financial results and dividend declaration were announced on January 21, 2026, indicating a strategic focus on shareholder returns[6][7] - The company continues to prioritize shareholder value through regular dividend payments and strategic board appointments[7][8] Governance Changes - Steven P. Cote was appointed to the Board of Union Bank, bringing 34 years of experience in the insurance industry[8] - The appointment of Steven P. Cote is expected to enhance strategic planning and risk management within the subsidiary[8] - The financial statements and press release are not deemed filed under the Securities Exchange Act, maintaining compliance with regulatory requirements[5] Company Status - The company is not classified as an emerging growth company, indicating a stable operational status[4]

Financial Performance - For fiscal year 2026, the company anticipates consolidated net sales to increase between 2.8% and 4.2% compared to fiscal 2025[103]. - Net sales for the three months ended December 31, 2025, were $318.2 million, an increase of $13.9 million or 4.6% from $304.3 million in the prior year period[107]. - Gross profit for the three months ended December 31, 2025, was $119.8 million, an increase of $16.8 million or 16.3% from $103.0 million in the prior year period[108]. - Gross margin for the three months ended December 31, 2025, was 37.6%, compared to 33.8% in the prior year period[108]. - Net sales for the Water Management Solutions segment increased by $15.5 million or 12.0% to $145.2 million for the three months ended December 31, 2025, driven by higher pricing and volumes[115]. - Gross profit for the three months ended December 31, 2025, was $49.0 million, an increase of $1.1 million or 2.3%, with gross margin decreasing to 33.7% from 36.9%[116]. Expenses and Costs - Selling, general and administrative expenses for the three months ended December 31, 2025, were $59.8 million, an increase of $5.9 million or 10.9% from $53.9 million in the prior year period[109]. - SG&A for the three months ended December 31, 2025, was $21.4 million, an increase of $1.6 million or 8.1% compared to the prior year, with SG&A as a percentage of net sales rising to 12.4% from 11.3%[114]. - Net interest expense for the three months ended December 31, 2025, was $1.0 million, a decrease of $0.6 million or 37.5% from $1.6 million in the prior year period[111]. - The company expects inflation to continue to modestly impact manufacturing costs, primarily due to wage inflation and higher direct tariff costs of approximately 3% of costs of sales during fiscal 2026[104]. - The increase in Section 232 tariffs to 50% has resulted in upward pressure on certain purchased components and raw material costs, particularly affecting the Repair products imported to the United States[101]. Cash Flow and Capital Expenditures - Cash and cash equivalents on hand as of December 31, 2025, were $459.6 million, with an additional borrowing capacity of $163.7 million under the asset-based lending arrangement[119]. - Net cash flows provided by operating activities increased by $7.1 million to $61.2 million for the three months ended December 31, 2025, driven by an increase in net income[135]. - Capital expenditures for the three months ended December 31, 2025, were $17.2 million, up from $11.9 million in the prior year, primarily due to higher expenditures associated with iron foundries[136]. - For fiscal year 2026, capital expenditures are expected to be between $60.0 million and $65.0 million to expand production capacity and enhance operational capabilities[140]. Shareholder Returns - The company repurchased $5.5 million of common stock during the three months ended December 31, 2025, with $59.5 million remaining under the share repurchase authorization[122]. - A quarterly dividend of $0.070 per share was declared, resulting in an estimated cash outlay of $10.9 million[141]. Credit Rating - The corporate credit rating as of December 31, 2025, was Ba1 from Moody's and BB+ from Standard & Poor's, with a stable outlook[138].