Financial Performance - Net sales for the three months ended October 31, 2025, were $935.4 million, an increase of $35.3 million, or 3.9%, compared to $900.1 million for the same period in 2024[103] - Gross profit for the three months ended October 31, 2025, was $328.8 million, representing a gross margin of 35.2%, down from 35.5% in the prior year[103][108] - Net earnings for the three months ended October 31, 2025, were $113.9 million, an increase of $14.9 million, or 15.1%, compared to $99.0 million for the same period in 2024[115] Segment Performance - The Mobile Solutions segment reported net sales of $598.3 million for the three months ended October 31, 2025, an increase of $25.9 million, or 4.5%, from $572.4 million in 2024[120] - The Industrial Solutions segment achieved net sales of $257.8 million, slightly up from $257.6 million in the prior year[116] - The Life Sciences segment reported net sales of $79.3 million, an increase of $9.2 million, or 13.1%, compared to $70.1 million in 2024[116] - Aftermarket net sales increased by $29.1 million due to market share gains, while On-Road net sales decreased by $8.7 million due to a decline in global truck production[121] - Mobile Solutions segment earnings before income taxes for the three months ended October 31, 2025 were $111.3 million, or 18.6% of net sales, an increase from 18.3% in the same period of 2024[122] - Industrial Solutions segment net sales for the three months ended October 31, 2025 were $257.8 million, a slight increase of $0.2 million or 0.1% compared to $257.6 million in 2024[126] - Life Sciences segment net sales increased by $9.2 million, or 13.1%, reaching $79.3 million for the three months ended October 31, 2025, driven by strong sales in Food and Beverage and Disk Drive[131] Expenses and Taxation - Research and development expenses decreased to $19.2 million, or 2.1% of net sales, down from $22.7 million, or 2.5% of net sales, in the prior year[111] - Selling, general and administrative expenses were $169.6 million, or 18.1% of net sales, compared to $166.1 million, or 18.5% of net sales, in the previous year[109] - The effective tax rate for the three months ended October 31, 2025, was 22.8%, down from 24.2% in the same period of 2024[114] Cash Flow and Debt - Cash provided by operating activities for the three months ended October 31, 2025 was $125.4 million, an increase of $52.5 million from $72.9 million in 2024[135] - Cash used in investing activities decreased significantly to $3.4 million in the three months ended October 31, 2025, down from $96.0 million in 2024, primarily due to reduced equity investments[136] - Cash used in financing activities was $93.1 million for the three months ended October 31, 2025, a decrease of $102.9 million compared to cash provided of $9.8 million in 2024[137] - Total debt as of October 31, 2025 represented 31.0% of total capitalization, a slight decrease from 31.5% as of July 31, 2025[141] - Cash and cash equivalents increased to $210.7 million as of October 31, 2025, compared to $180.4 million as of July 31, 2025[139] Foreign Currency and Interest Rates - The estimated impact of foreign currency translation for the three months ended October 31, 2025 resulted in an increase in reported net sales of $11.9 million and an increase in reported net earnings of $1.7 million[152] - The total notional amount of foreign currency forward contracts designated as hedges was $55.5 million as of October 31, 2025, up from $35.7 million on July 31, 2025[154] - The total notional amount of foreign currency forward contracts not designated as hedges was $199.5 million as of October 31, 2025, compared to $189.6 million on July 31, 2025[154] - The total notional amount of net investment hedges was €80 million (approximately $88.8 million) as of October 31, 2025[155] - A 10% appreciation of the U.S. dollar compared to the Euro would result in a net gain of $8.7 million in the fair value of net investment hedges[156] - A hypothetical 0.5 percentage point increase in short-term interest rates would increase interest expense by approximately $0.5 million for the three months ended October 31, 2025[157] - The estimated fair values of fixed interest rate long-term debt were $252.5 million compared to carrying values of $275.0 million as of October 31, 2025[157] Commodity Price Exposure - The Company is exposed to fluctuating prices of commodity raw materials, which could result in lower gross profit if prices increase[159] - The Company strives to recover material cost increases through price adjustments to customers and cost reduction initiatives[159]

Revenue Performance - Q2 2026 revenue of $422 million, down 1% year-over-year, with operating income of $73 million, up 14%, and diluted EPS of $0.84, also up 14%[7] - Research revenue for Q2 was $279 million, up 6% as reported, driven by a 7% growth in Research Publishing, including $5 million from AI revenue[8] - Learning revenue for Q2 was $143 million, down 11% due to market-related softness, with professional and academic segments down 16% and 8% respectively[8] - Total revenue for the three months ended October 31, 2025, was $421.8 million, a slight decrease of 1% compared to $426.6 million in 2024[30] - Total revenue for the six months ended October 31, 2025, was $818,551,000, a decrease of 1% compared to $830,404,000 in the same period of 2024[36] - Research segment revenue increased by 6% to $560,206,000, driven by an 18% increase in Research Solutions revenue[34] - Learning segment revenue decreased by 10% to $258,345,000, with Academic and Professional revenues declining by 8% and 12%, respectively[34] Profitability Metrics - Adjusted EBITDA for Q2 was $93 million, up 14% as reported, with an adjusted EBITDA margin of 33.5%, compared to 31.3% in the prior year[8] - The Adjusted EBITDA margin for the three months ended October 31, 2025, improved to 27.3%, up from 24.9% in the same period of 2024[30] - Non-GAAP Adjusted Operating Income for the three months ended October 31, 2025, was $79.1 million, a 15% increase from $68.8 million in 2024[30] - Non-GAAP adjusted operating income rose by 9% to $113,137,000, with an adjusted operating income margin of 13.8%[34] - The adjusted EBITDA margin improved to 22.7% from 21.9% year-over-year, indicating enhanced operational efficiency[34] Cash Flow and Debt Management - Free cash flow improved to a use of $108 million from a use of $130 million in the prior year, largely due to higher cash earnings[16] - Year-to-date operating cash flow and free cash flow improved by 19% and 17%, respectively[7] - The net debt-to-EBITDA ratio improved to 2.0 from 2.2 year-over-year, with approximately $120 million of divestiture proceeds used to reduce debt[16] - Free cash flow less product development spending was $(107,926,000) for the six months ended October 31, 2025, compared to $(130,149,000) in the prior year[40] Shareholder Returns - The company allocated $40 million in Q2 toward share repurchases ($21 million) and dividends ($19 million), up 26% over the prior year[16] - Adjusted EPS, Adjusted Revenue, Adjusted Operating Income, and margin are key metrics used by shareholders to assess performance[50] Income and Earnings - For the three months ended October 31, 2025, the diluted US GAAP Earnings Per Share (EPS) was $0.84, compared to $0.74 for the same period in 2024, representing a 13.5% increase[23] - Non-GAAP Adjusted EPS for the same period was $1.10, up from $0.97 in 2024, reflecting a 13.4% increase[23] - The US GAAP Income Before Taxes for the three months ended October 31, 2025, was $58.0 million, up from $48.9 million in 2024, representing a 18.5% increase[24] - The Non-GAAP Adjusted Income Before Taxes for the same period was $78.6 million, compared to $69.1 million in 2024, reflecting a 13.5% increase[24] - Net income for the six months ended October 31, 2025, was $56,591,000, compared to $39,022,000 in the prior year, reflecting a significant increase[39] Asset Management - Cash and cash equivalents decreased to $67,404,000 from $85,882,000, indicating a reduction in liquidity[36] - Total assets decreased to $2,466,739,000 from $2,691,466,000, reflecting a decline in overall asset value[36] Corporate Expenses - Corporate expenses on an adjusted EBITDA basis decreased by 18% in Q2 due to restructuring and expense management efforts[9] - Corporate expenses decreased by 8% to $(81,482,000), contributing positively to the overall financial performance[34] Other Financial Insights - Results on a constant currency basis provide better comparability of business trends by removing the effects of foreign currency movements[50]

Revenue Performance - Q2 2026 revenue of $422 million, down 1% year-over-year, with operating income of $73 million, up 14%, and diluted EPS of $0.84, also up 14%[7] - Total revenue for the three months ended October 31, 2025, was $421.8 million, a slight decrease of 1% compared to $426.6 million in 2024[30] - Total revenue for the six months ended October 31, 2025, was $818,551,000, a decrease of 1% compared to $830,404,000 in the same period of 2024[34] Segment Performance - Research revenue for Q2 was $279 million, up 6% as reported, driven by 7% growth in Research Publishing, including $5 million from AI revenue; article submissions rose by 28%[8] - Learning revenue for Q2 was $143 million, down 11% due to market-related softness, with professional and academic segments down 16% and 8%, respectively[8] - Research Publishing revenue for the three months ended October 31, 2025, was $241.4 million, an 8% increase from $222.7 million in 2024[30] - Learning segment revenue decreased by 10% to $258,345,000, with Academic revenue down 8% and Professional revenue down 12%[34] Profitability Metrics - Adjusted EBITDA for Q2 was $93 million, up 14%, with a margin of 33.5%, compared to 31.3% in the prior year[8] - Non-GAAP Adjusted EBITDA for the six months ended October 31, 2025, was $185.5 million, compared to $178.2 million in 2024, indicating a 4.7% increase[27] - The Adjusted EBITDA margin for the three months ended October 31, 2025, was 27.3%, up from 24.9% in the same period of 2024[27] - Non-GAAP adjusted operating income for the six months ended October 31, 2025, was $113,137,000, reflecting a 9% increase from $104,181,000 in 2024[34] Cash Flow and Capital Management - Year-to-date operating cash flow improved by 19%, and free cash flow improved by 17%[7] - Free cash flow usage improved to $108 million from $130 million in the prior year, largely due to higher cash earnings and lower capex[16] - Net cash used in operating activities was $(76,505,000) for the six months ended October 31, 2025, compared to $(93,992,000) in 2024[39] - Free cash flow less product development spending was $(107,926,000) for the six months ended October 31, 2025, compared to $(130,149,000) in 2024[40] Shareholder Returns - Share repurchases increased by 69% year-over-year to $21 million, with a dividend yield around 3.9%[7] - Full-year outlook for adjusted EBITDA margin is 25.5% to 26.5%, with adjusted EPS guidance of $3.90 to $4.35[12] - Adjusted EPS, Adjusted Revenue, Adjusted Operating Income, and margin are key metrics used by shareholders to evaluate the company's performance[50] Debt and Financial Position - Net debt-to-EBITDA ratio improved to 2.0 from 2.2 in the prior year, with $120 million of divestiture proceeds used to reduce debt[16] - Total assets decreased to $2,466,739,000 as of October 31, 2025, from $2,691,466,000 as of April 30, 2025[36] - Total liabilities decreased to $1,726,550,000 as of October 31, 2025, from $1,939,260,000 as of April 30, 2025[36] - Cash and cash equivalents at the end of the period were $67,454,000, down from $75,586,000 at the end of the previous year[39] Income Metrics - For the three months ended October 31, 2025, the diluted US GAAP Earnings Per Share (EPS) was $0.84, compared to $0.74 for the same period in 2024, representing a 13.5% increase[23] - Non-GAAP Adjusted EPS for the same period was $1.10, up from $0.97 in 2024, reflecting a 13.4% increase[23] - US GAAP Income Before Taxes for the three months ended October 31, 2025, was $58.01 million, compared to $48.94 million in 2024, marking an 18.5% increase[24] - Non-GAAP Adjusted Income Before Taxes for the same period was $78.60 million, up from $69.14 million in 2024, reflecting a 13.5% increase[24] Currency Impact - Results on a constant currency basis provide better comparability of business trends by removing the effects of foreign currency movements[50]

Financial Performance - Total revenues for Q4 fiscal 2025 were $817.9 million, down from $979.6 million in Q4 fiscal 2024, while total revenues for the year were $2.98 billion compared to $3.00 billion in fiscal 2024[3]. - The net loss for Q4 fiscal 2025 was $0.7 million, or $0.51 per diluted share, compared to net income of $94.3 million, or $12.79 per diluted share, in the same period last year[4]. - Adjusted EBITDA for Q4 fiscal 2025 was $88.6 million, exceeding the high end of guidance, compared to $159.0 million in Q4 fiscal 2024[4]. - Total revenues for the three months ended October 31, 2025, were $817.9 million, a decrease from $979.6 million for the same period in 2024, representing a decline of approximately 16.5%[25]. - The company reported a net loss of $0.7 million for the three months ended October 31, 2025, compared to a net income of $94.3 million for the same period in 2024[25]. - Adjusted EBITDA for the year ended October 31, 2025, was $299,050,000, a decrease from $455,563,000 in 2024, reflecting a decline of approximately 34.4%[30]. - The company experienced a loss on extinguishment of debt of $33.5 million for the three months ended October 31, 2025, compared to no such loss in the same period of 2024[25]. - Interest expense for the three months ended October 31, 2025, increased to $34,443,000 from $31,120,000 in the same period of 2024, representing an increase of 10.6%[30]. Home Sales and Deliveries - Domestic unconsolidated joint ventures' home sales revenues increased by 27.3% to $180.4 million in Q4 fiscal 2025, with 285 homes sold, compared to $141.7 million from 235 homes in Q4 fiscal 2024[3]. - Consolidated contracts decreased by 10.8% to 1,209 homes in Q4 fiscal 2025, with a dollar value of $629.2 million, compared to 1,355 homes valued at $705.6 million in Q4 fiscal 2024[4]. - Total home deliveries decreased by 10.8% to 1,209 homes in the three months ended October 31, 2025, compared to 1,355 homes in the same period of 2024[46]. - Total home deliveries decreased by 3.1% to 5,023 units compared to 5,186 units in the previous year[51]. - The Northeast segment saw a 19.6% increase in deliveries to 1,968 units, while revenue decreased by 11.7% to $983,961 thousand[51]. - The Southeast segment experienced a 23.6% increase in contracts to 639 units, with revenue rising by 16.1% to $324,393 thousand[51]. - The West segment reported a 9.5% decrease in contracts to 2,589 units, with revenue declining by 5.6% to $1,290,351 thousand[51]. Margins and Expenses - Homebuilding gross margin percentage for Q4 fiscal 2025 was 10.7%, down from 18.0% in Q4 fiscal 2024, with 2.5% attributable to land charges[3]. - Total SG&A expenses were $91.5 million, or 11.2% of total revenues, in Q4 fiscal 2025, compared to $87.7 million, or 9.0% of total revenues, in Q4 fiscal 2024[3]. - Homebuilding gross margin for the three months ended October 31, 2025, was $83.9 million, down from $167.2 million in 2024, resulting in a gross margin percentage of 10.7%, compared to 18.0% in the prior year[27]. - Homebuilding revenues for Q4 2025 were $789.8 million, a decrease of 17.5% from $956.9 million in Q4 2024[44]. - Cost of sales for homebuilding in Q4 2025 was $702.8 million, down from $769.3 million in Q4 2024, a reduction of 8.7%[44]. Liquidity and Assets - Total liquidity as of October 31, 2025, was $404.1 million, significantly above the target range of $170 million to $245 million[8]. - Total assets increased to $2.63 billion in 2025 from $2.61 billion in 2024, reflecting a growth of 1.3%[42]. - Total liabilities decreased slightly to $1.80 billion in 2025 from $1.81 billion in 2024[42]. - The company reported a total equity of $830.9 million in 2025, up from $800.3 million in 2024, indicating a growth of 3.8%[42]. Inventory and Impairments - Total inventories as of October 31, 2025, were $1,637,470,000, down from $1,692,932,000 as of July 31, 2025, indicating a decrease of approximately 3.3%[37]. - The company recorded inventory impairments and land option write-offs of $39,571,000 for the year ended October 31, 2025, compared to $11,556,000 in 2024, reflecting a significant increase[30]. - The company experienced an inventory impairment loss of $19.4 million in Q4 2025, compared to $7.9 million in Q4 2024[44]. Future Outlook - For Q1 fiscal 2026, the company expects total revenues between $550 million and $650 million, with adjusted homebuilding gross margin between 13.0% and 14.0%[10]. - The company anticipates challenges related to demand for homes, mortgage rates, and inflation, which may impact future financial performance[23]. - The company plans to consolidate remaining assets and liabilities from joint ventures, impacting future financial reporting[56].

Revenue Performance - Total revenues for Q4 fiscal 2025 were $817.9 million, down from $979.6 million in Q4 fiscal 2024, while total revenues for the year were $2.98 billion compared to $3.00 billion in fiscal 2024[3] - Total revenues for the three months ended October 31, 2025, were $817.9 million, a decrease from $979.6 million in the same period of 2024, representing a decline of approximately 16.5%[25] - Total revenues for the year ended October 31, 2025, were $2.98 billion, down 0.9% from $3.00 billion in 2024[44] - Financial services revenues for the year ended October 31, 2025, were $95.0 million, an increase of 28.2% from $74.1 million in 2024[44] Home Sales and Deliveries - Domestic unconsolidated joint ventures home sales revenues increased 27.3% to $180.4 million in Q4 fiscal 2025, with 285 homes sold, compared to $141.7 million from 235 homes in Q4 fiscal 2024[3] - Total home deliveries decreased by 10.8% to 1,209 homes in the three months ended October 31, 2025, compared to 1,355 homes in the same period of 2024[46] - Total home deliveries decreased by 3.1% to 5,023 units compared to 5,186 units in the previous year[51] - Overall, unconsolidated joint ventures reported a 12.7% increase in home contracts to 241 homes, with revenues increasing 12.7% to $157.9 million[59] Profitability and Margins - Homebuilding gross margin percentage for Q4 fiscal 2025 was 10.7%, down from 18.0% in Q4 fiscal 2024, with 2.5% attributable to land charges[3] - Homebuilding gross margin for the three months ended October 31, 2025, was $83.9 million, down from $167.2 million in the same period of 2024, reflecting a decrease of about 49.9%[27] - Adjusted income before income taxes for the three months ended October 31, 2025, was $48.8 million, compared to $125.8 million in the same period of 2024, a decrease of approximately 61.2%[26] - The company reported a net loss of $0.7 million for the three months ended October 31, 2025, compared to a net income of $94.3 million in the same period of 2024[25] Financial Position and Liquidity - Total liquidity as of October 31, 2025, was $404.1 million, significantly above the target range of $170 million to $245 million[8] - Cash and cash equivalents rose to $272.8 million in 2025, up 29.9% from $210.0 million in 2024[42] - Total assets increased to $2.63 billion in 2025 from $2.61 billion in 2024, reflecting a growth of 1.3%[42] - Total liabilities decreased slightly to $1.80 billion in 2025 from $1.81 billion in 2024[42] Debt and Interest Expenses - The company successfully completed a $900 million unsecured debt refinancing, extending maturities to 2031 and 2033, resulting in a $12 million decrease in annual interest incurred[8] - Interest expense for the three months ended October 31, 2025, increased to $34,443,000 from $31,120,000 in the same period of 2024, marking an increase of 10.6%[30] - The company incurred a loss on extinguishment of debt of $33.5 million for the three months ended October 31, 2025, compared to no such loss in the same period of 2024[25] Market Outlook and Challenges - The company anticipates challenges in the homebuilding market due to factors such as inflation, mortgage rates, and supply chain issues, which may impact future performance[23] - The backlog of contracts as of October 31, 2025, was $163.2 million, reflecting a 23.1% decrease compared to the previous year[59] Segment Performance - In the Northeast segment, home deliveries decreased by 4.5% to 442 homes, with revenue dropping by 12.4% to $244.5 million[46] - The Southeast segment saw a significant increase in home deliveries, up 38.0% to 178 homes, with revenue rising by 17.1% to $85.2 million[46] - The West segment experienced a decline in home deliveries by 22.8% to 589 homes, with revenue decreasing by 15.3% to $299.5 million[46]

Financial Performance - REX reported Q3 '25 net sales and revenue of $175.6 million, a slight increase from $174.9 million in Q3 '24, representing a 0.4% growth[3] - Gross profit for Q3 '25 was $36.1 million, down from $39.7 million in Q3 '24, reflecting a decrease of approximately 8.9% due to lower ethanol and distillers grain pricing[3] - Net income attributable to REX shareholders in Q3 '25 was $23.4 million, compared to $24.5 million in Q3 '24, indicating a decline of 4.5%[4] - Diluted net income per share for Q3 '25 was $0.71, an increase from $0.69 per share in Q3 '24, marking a growth of 2.9%[4] Cash and Investments - REX's cash, cash equivalents, and short-term investments totaled $335.5 million as of October 31, 2025, with no bank debt[9] Expansion and Capital Expenditures - The company is progressing on the expansion of ethanol production at the One Earth facility, with completion expected in 2026[5] - Capital expenditures related to the One Earth carbon capture and sequestration project and ethanol production expansion totaled $155.8 million, with a combined budget of $220-$230 million for completion[7] Sales and Operational Performance - REX achieved consolidated ethanol sales volumes of 78.4 million gallons in Q3 '25[8] - The company has maintained positive earnings for 21 consecutive quarters, indicating strong operational performance[10] Strategic Opportunities - REX is evaluating opportunities to leverage 45Z tax credits to enhance shareholder value as its projects advance[10] Non-Cash Activities - Non-cash investing activities accrued capital expenditures of $5.235 billion, compared to $3.275 billion previously[21] - Non-cash financing activities accrued stock awards amounted to $3.392 billion, up from $1.648 billion[21] - Non-cash financing activities accrued excise taxes on stock repurchases totaled $258 million, with operating right-of-use assets acquired and liabilities incurred upon lease execution at $3.007 billion[21]

Sales Performance - Kroger's total sales for Q3 2025 were $33.9 billion, a 0.9% increase from $33.6 billion in Q3 2024, with identical sales without fuel rising by 2.6%[7][6] - Sales for Q3 2025 reached $33,859 million, a slight increase from $33,634 million in Q3 2024[30] - Identical sales, excluding fuel, for year-to-date 2025 were $30,062 million, reflecting a 2.6% increase from $29,302 million in 2024[45] Earnings and Profitability - The adjusted earnings per share (EPS) for Q3 2025 was $1.05, compared to $0.98 in Q3 2024, while the reported EPS was $(2.02) due to a $2.6 billion impairment charge[4][6] - Operating profit for Q3 2025 was a loss of $1,541 million, compared to a profit of $828 million in Q3 2024[30] - Net earnings attributable to Kroger Co. for Q3 2025 were a loss of $1,320 million, down from a profit of $618 million in Q3 2024, representing a decline of 314%[30] - Year-to-date net earnings for 2025 were $155 million, down from $2,031 million in 2024[52] - Adjusted net earnings excluding items above for Q3 2025 were $697 million, slightly down from $719 million in Q3 2024[52] Financial Position - The net total debt to adjusted EBITDA ratio increased to 1.73 from 1.21 a year ago, with a target range of 2.30 to 2.50[14] - Total current assets decreased to $15,994 million in Q3 2025 from $25,025 million in Q3 2024[38] - Total liabilities decreased to $44,401 million in Q3 2025 from $49,524 million in Q3 2024[38] - Cash and temporary cash investments at the end of Q3 2025 were $3,956 million, down from $13,358 million at the end of Q3 2024[40] - Net total debt decreased to $14,276 million from $22,601 million, a reduction of $4,591 million[48] - Long-term debt, including obligations under finance leases, decreased to $16,081 million from $22,414 million, a reduction of $6,333 million[48] Cash Flow and Investments - Net cash provided by operating activities for year-to-date 2025 was $4,658 million, compared to $4,390 million in 2024[40] - Total capital investments, excluding lease buyouts, were $2,863 million, compared to $2,816 million in the previous year[41] - The company plans to continue its $7.5 billion share repurchase program, having completed a $5 billion accelerated share repurchase in Q3 2025[13] - Kroger's capital allocation strategy includes a commitment to pay dividends and invest in long-term sustainable growth, with expected free cash flow of $2.8 to $3.0 billion for FY25[12][15] Margins and Costs - Kroger's gross margin improved to 22.8% in Q3 2025, up from 22.4% in Q3 2024, primarily due to the sale of Kroger Specialty Pharmacy and lower supply chain costs[8][9] - Gross profit for Q3 2025 was $7,735 million, compared to $7,534 million in Q3 2024, resulting in a gross margin of 22.8%[64] - The company recorded LIFO charges of $44 million in Q3 2025, compared to $4 million in Q3 2024[36] - The company reported a LIFO charge of $176 million for the rolling four quarters ended November 8, 2025, compared to $48 million in the previous year[49] Future Outlook - The company expects to achieve identical sales without fuel in the range of 2.8% to 3.0% for FY25, narrowing from the previous guidance of 2.7% to 3.4%[15][19] - The company expects continued challenges in the market, impacting future earnings guidance[56]

Financial Performance - Second quarter net sales decreased 5% to $1.0 billion, with a 2% decline on an organic basis compared to the prior-year period[2] - First half net sales decreased 4% to $2.0 billion, remaining flat on an organic basis compared to the same prior-year period[2] - Operating income for the second quarter decreased 10% to $305 million, with a 9% decline on an organic basis[2] - Operating income decreased by 9% to $565 million from $622 million in the previous year[26] - Net income for the six months was $394 million, reflecting a 13% decline from $453 million in 2024[26] - Earnings per share (diluted) were $0.83, a decrease of 13% compared to $0.96 in the prior year[26] - The company anticipates organic net sales and operating income to decline in the low-single digit range for fiscal 2026[16] Gross Margin and Profitability - Gross margin expanded by 30 basis points to 59.5%, driven by acquisitions and divestitures, despite higher costs[4] - Gross profit for the same period was $1,167 million, down 4% from $1,211 million in 2024[26] - The company’s gross profit increased by 1%, indicating stable profitability despite sales challenges[40] Cash Flow and Capital Expenditures - Cash flows from operations grew by $163 million to $292 million, while free cash flow increased by $179 million to $236 million[4] - Free cash flow for the six months ended October 31, 2025, was $236 million, up from $57 million in the same period last year[41] - The estimated capital expenditures range for fiscal 2026 has been updated to $110 to $120 million[15] Market Performance - Net sales in Emerging markets increased by 10% (+12% organic), led by strong growth in the Jack Daniel's family of brands[8] - In the United States, net sales fell by 9%, while emerging markets saw a 10% increase in net sales[36] - The company experienced a 62% decline in net sales in Canada, while Brazil reported a 22% increase[36] - The emerging market of Mexico reported a 17% increase in net sales, contributing positively to overall performance[36] Inventory and Sales Trends - Estimated net change in distributor inventories in the United States was up by 2%, while developed international markets saw a decrease of 1%[38] - "Depletions" measure volume reflecting consumer demand more accurately than shipments to distributors[62] - Consumer takeaway is a leading indicator of consumer demand trends, derived from retail sales value metrics[62] - Estimated net change in distributor inventories is calculated to understand the impact on organic trends[62] - A positive difference in estimated net change indicates a net increase in distributors' inventories, potentially leading to decreased organic trends[62] - A negative difference suggests a net decrease in distributors' inventories, which could result in increased organic trends as inventories are rebuilt[62] Restructuring and Charges - The company incurred $16 million in restructuring charges related to a workforce reduction of approximately 12%[52] - The operating margin decreased by 150 basis points to 28.9%, primarily due to a decline in gross profit and restructuring initiative impacts[10] Shareholder Returns - The company authorized a $400 million share repurchase program and increased the quarterly cash dividend by 2% to $0.2310 per share[11][12] Assets and Liabilities - Total assets increased to $8,221 million as of October 31, 2025, up from $8,086 million in April 2025[28] - Total liabilities decreased slightly to $4,087 million from $4,093 million in April 2025[28] - The effective tax rate improved to 20.1% from 21.2% in the previous year[26] Other Notable Changes - The Korbel relationship ended effective June 30, 2025[62] - "Rest of Portfolio" includes brands such as Korbel California Champagnes and Finlandia Vodka, which was divested on November 1, 2023[62] - Shipment volumes are used to calculate depletion-based amounts for better inventory management insights[62] - The company recognizes revenue upon shipment or delivery of products to customers[62]

First Half of Fiscal 2026 Market NEWS RELEASE BROWN-FORMAN REPORTS FIRST HALF FISCAL 2026 RESULTS; REAFFIRMS FULL YEAR OUTLOOK December 4, 2025, LOUISVILLE, KY — Brown-Forman Corporation (NYSE: BFA, BFB) reported financial results for its second quarter and first half of fiscal 2026, ended October 31, 2025. Second quarter reported net sales decreased 5% to $1.0 billion (-2% on an organic basis ) compared to the same prior-year period. In the quarter, reported operating income decreased 10% to $305 million ( ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 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: 001-42914 FORM 10-Q (Mark One) MapLight Therapeutics, Inc. (Exact Name of Registrant as Specified in its Chart ...