Financial Analysis

Note 2. Acquisitions and Equity Method Investments Acquisitions On May 4, 2026, the Company acquired 100% of Filtration Groups Facet Filtration business (Facet), consisting of Facet (Oklahoma) LLC and Facet Netherlands B.V., in an all-cash transaction valued at $820.0 million, for cash consideration of $830.2 million. As part of this transaction, the Company issued $820.0 million of new debt, increasing total long-term debt outstanding for the Company to approximately $1.3 billion as of July 31, 2026, and remained in compliance with all applicable financial covenants. The new debt incurred in the fourth quarter of fiscal 2026 was at a rate of 4.65%. The new debt bears interest at a variable rate based on Term SOFR plus a spread that is based on the Companys Leverage Ratio as defined by the agreements. Facet offers fuel and fluid filtration solutions for mission-critical applications primarily in aerospace and defense, as well as power generation, strengthening the Companys position in durable end markets. Headquartered in Tulsa, Oklahoma, Facet has approximately 250 employees across the U.S. and Europe with key manufacturing locations in Oklahoma and Spain. The Company accounted for the acquisition under the acquisition method of accounting for business combinations. The Company allocates the purchase price of acquired businesses to the estimated fair values of the assets acquired and liabilities assumed, as well as any contingent consideration, where applicable, as of the da …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Note 18. Commitments and Contingencies The Company records provisions when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and litigation are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the estimated liability in its Consolidated Financial Statements for claims or litigation is adequate and appropriate for the probable and estimable outcomes. Liabilities recorded were not material to the Companys financial position, results of operations or liquidity. The Company believes it is remote that the settlement of any of the currently identified claims or litigation will be materially in excess of what is accrued. The Company is party to agreements that include deferred payment provisions representing potential milestone payments for former owners of acquired businesses. The provisions are made up of two general types of arrangements, contingent compensation and contingent consideration. A contingent compensation arrangement is contingent on the former owners future employment with the Company and the related amounts are recognized over the required employment period. A contingent consideration agreement is contingent on the achievement of certain revenue and manufacturing milestones, regardless of the former owners employment status. Contingent consideration was recorded as purchase consideration at the time of the initial acquisition based on t …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 7. Short-Term Borrowings and Long-Term Debt Short-Term Borrowings Short-term borrowings were as follows (in millions): European Commercial Paper Program U.S. Credit Facilities European Operations Credit Facilities Rest of the World Credit Facilities Total Year Ended July 31, 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Available credit facilities $ 114.9 $ 114.5 $ 100.0 $ 100.0 $ 50.5 $ 50.3 $ 49.7 $ 52.7 $ 315.1 $ 317.5 Reductions to borrowing capacity: Outstanding borrowings 44.8 31.2 44.8 31.2 Other non-borrowing reductions 30.2 30.1 27.2 28.7 57.4 58.8 Total reductions 44.8 31.2 30.2 30.1 27.2 28.7 102.2 90.0 Remaining borrowing capacity $ 114.9 $ 114.5 $ 55.2 $ 68.8 $ 20.3 $ 20.2 $ 22.5 $ 24.0 $ 212.9 $ 227.5 Weighted average interest rate as of July 31, 2026 and 2025 N/A N/A 4.53 % 5.20 % N/A N/A N/A N/A 4.53 % 5.20 % Other non-borrowing reductions include financial instruments such as bank guarantees and foreign currency exchange instruments. Commitment fees for the years ended July 31, 2026 and 2025 were not material. Long-Term Debt Long-term debt was as follows: Interest Rate Outstanding Balance (in millions) Financial Instrument Fixed or Variable Amount Maturity Date July 31, 2026 July 31, 2025 July 31, 2026 July 31, 2025 Unsecured term loan Variable $ 400.0 million May 04, 2029 4.65 % N/A 400.0 Unsecured term loan Variable $ 200.0 million June 12, 2028 4.82 % 5.57 % 200.0 200.0 Unsecured senior notes Fixed $125.0 million June 17, 2030 3.18 % 3.18 % 125.0 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Net sales, generally disaggregated by location where the customers order was placed, were as follows (in millions): Year Ended July 31, 2026 2025 2024 U.S. and Canada $ 1,652.0 $ 1,632.3 $ 1,583.1 Europe, Middle East and Africa (EMEA) 1,136.0 1,027.2 1,012.9 Asia Pacific (APAC) 689.5 635.7 601.5 Latin America (LATAM) 408.1 395.7 388.8 Total net sales $ 3,885.6 $ 3,690.9 $ 3,586.3 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 13. Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards based on the grant date fair value of the award. Stock-based awards consist primarily of non-qualified stock options, performance-based awards, restricted stock awards and restricted stock units. Grants related to restricted stock awards and restricted stock units are immaterial. The Company issues treasury shares for stock options and performance-b ased awards. Stock Options The exercise price of options granted is equal to the market price of the Companys common stock at the date of the grant. Options are generally exercisable for up to ten years from the date of grant and vest in equal increments over three years. Pretax stock-based compensation expense associated with options was $18.3 million, $16.1 million and $14.2 million for the years ended July 31, 2026, 2025 and 2024, respectively. Fair value is calculated using the Black-Scholes option pricing model. The weighted average fair value for options granted during the years ended July 31, 2026, 2025 and 2024 was $25.86, $21.67 and $19.00 per share, respectively. The fair value of these awards was determined using the following inputs: Year Ended July 31, 2026 2025 2024 Risk-free interest rate 3.8% - 4.0% 3.6% - 4.5% 3.8% - 4.6% Expected volatility 26.5% - 27.4% 26.1% - 27.0% 26.8% - 27.2% Expected dividend yield 1.6 % 1.6 % 1.6 % Expected life: Director grants 8 years 8 years 8 years Officer grants 8 years 7 years 7 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 6. Goodwill and Intangible Assets Goodwill The Company allocates goodwill to reporting units within its Mobile Solutions, Industrial Solutions and Life Sciences segments. There were no dispositions or impairment charges recorded during the years ended July 31, 2026, 2025 and 2024. Goodwill is assessed for impairment annually during the third quarter of the fiscal year, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2026 and did not record any impairment as a result of this assessment. Goodwill by reportable segment was as follows (in millions): Mobile Solutions Segment Industrial Solutions Segment Life Sciences Segment Total Goodwill Balance as of July 31, 2024 $ 25.4 $ 289.9 $ 163.1 $ 478.4 Goodwill acquired 3.2 3.2 Foreign exchange translation 5.1 6.9 12.0 Balance as of July 31, 2025 $ 25.4 $ 298.2 $ 170.0 $ 493.6 Goodwill acquired 587.4 587.4 Foreign exchange translation 0.3 5.1 0.4 5.8 Balance as of July 31, 2026 $ 25.7 $ 890.7 $ 170.4 $ 1,086.8 During the fourth quarter of fiscal year 2026, $587.4 million of goodwill within the Industrial Solutions segment was acquired through the acquisition of Facet. The Company believes the goodwill balance associated with the business combination is primarily attributed to the benefit of access to durable, growing end markets and recurring, regulated replacement part sales with accretive margins …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 8. Income Taxes The components of earnings before income taxes were as follows (in millions): Year Ended July 31, 2026 2025 2024 U.S. $ 226.2 $ 245.5 $ 233.4 Foreign 359.6 246.7 301.9 Total $ 585.8 $ 492.2 $ 535.3 The components of the provision for income taxes were as follows (in millions): Year Ended July 31, 2026 2025 2024 Current Federal $ 22.9 $ 52.0 $ 47.2 State 7.5 9.2 8.8 Foreign 101.9 88.0 89.6 Total current 132.3 149.2 145.6 Deferred Federal 0.2 (13.5) (16.1) State (0.3) (1.3) (1.7) Foreign (0.2) (9.2) (6.5) Total deferred (0.3) (24.0) (24.3) Total provision for income taxes $ 132.0 $ 125.2 $ 121.3 The components of income taxes paid, net of refunds, were as follows (in millions): Year Ended July 31, 2026 Federal $ 47.1 State 10.1 Foreign 103.7 Total $ 160.9 Income taxes paid, net of refunds, exceeded 5 percent of total income taxes paid, net of refunds, in the following jurisdictions (in millions): Year Ended July 31, 2026 Mexico $ 22.6 China $ 12.0 Income taxes paid, net of refunds for the fiscal years ended July 31, 2025 and 2024, were $176.2 million and $147.8 million, respectively. The reconciliation of the U.S. statutory federal income tax rate with the effective income tax rate after the adoption of ASU 2023-09 was as follows (in millions): Year Ended July 31, 2026 U.S. statutory federal income tax rate $ 123.0 21.0 % Domestic state and local income taxes, net of federal tax effect (1) 5.3 0.9 % Foreign tax effects 26.4 4.5 % Effect of changes in tax la …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 9. Leases The Company enters into operating leases primarily for office, production and warehouse facilities, production and non-production equip ment, automobiles and computer equipment. A s of July 31, 2026 and 2025, the Company had no material financing lease obligations. The Companys operating lease costs were as follows (in millions): Year Ended July 31, 2026 2025 2024 Operating lease cost $ 40.2 $ 33.5 $ 29.5 Short-term lease cost 4.0 3.3 3.0 Total lease costs $ 44.2 $ 36.8 $ 32.5 Supplemental balance sheet information for the Company was as follows (in millions): July 31, Balance Sheet Location 2026 2025 2024 Right-of-use lease assets Other long-term assets $ 52.4 $ 60.5 $ 59.7 Current lease liabilities Other current liabilities $ 24.8 $ 24.1 $ 20.2 Long-term lease liabilities Other long-term liabilities $ 33.1 $ 37.8 $ 41.3 Additional information related to operating leases was as follows: July 31, 2026 2025 2024 Weighted average remaining lease term (years) 4.4 4.1 3.5 Weighted average discount rate 7.42 % 6.44 % 4.61 % Cash paid for amounts included in the measurement of operating lease liabilities was $30.5 million, $29.0 million and $24.4 million for fiscal 2026, 2025 and 2024, respectively. Remaining payments for operating leases having initial terms of more than one year as of July 31, 2026 were as follows (in millions): 2027 $ 27.3 2028 20.1 2029 10.4 2030 4.7 2031 1.6 Thereafter 0.6 Total future lease payments 64.7 Less imputed interest 6.8 Present value …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"New Significant Accounting Standard Recently Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. This ASU is applicable beginning with annual reporting for the Companys fiscal 2026 and interim reporting for the first quarter of the Companys fiscal 2027. The Company prospectively adopted ASU 2023-09 in the fourth quarter of fiscal 2026 for its fiscal year ended July 31, 2026. The Company determined that all other accounting standards effective as of August 1, 2026 were either not applicable or not material to its financial statements. New Significant Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the FASBs ASUs issued but not yet adopted. In September 2025, the FASB issued ASU 2025-06, Intangibles Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the guidance for the capitalization of internal-use software, specifically by introducing a more judgment-based approach. Under this guidance, capitalization for internal-use software costs begins when management has authorized and committed to funding the project and it is probable the project will be completed, and the software will be …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 14. Employee Benefit Plans Defined Benefit Pension Plans The Company has defined benefit pension plans for certain hourly and salaried employees. They consist of plans in the U.S., Belgium, Germany, Mexico and the United Kingdom. As of July 31, 2026, the United Kingdom holds an additional defined benefit plan as a result of the Facet acquisition during fiscal 2026. These plans generally provide pension benefits based on years of service and compensation level. Components of net periodic pension costs other than the service cost component are included in other income, net in the Consolidated Statements of Earnings. The Company has various other foreign defined benefit plans that are immaterial to the financial statements. Net periodic pension costs for the Companys pension plans were as follows (in millions): Year Ended July 31, 2026 2025 2024 Net periodic pension costs Service cost $ 4.8 $ 4.3 $ 5.2 Interest cost 19.4 19.6 20.4 Expected return on assets (25.4) (25.7) (25.7) Prior service cost amortization 0.1 Actuarial loss amortization 2.0 2.3 1.5 Settlement loss 4.6 4.9 Curtailment loss 0.2 Net periodic pension costs 5.4 0.5 6.6 Other changes recognized in other comprehensive income (loss): Prior service cost 0.1 Net actuarial gain (loss) 17.8 (11.6) (9.1) Amortization of prior service cost 0.1 0.3 Amortization of net actuarial loss 6.6 2.3 6.4 Total recognized in other comprehensive loss 24.5 (9.3) (2.3) Total recognized in net periodic pension costs and other compreh …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 20. Restructuring and Other Charges During fiscal 2026, the Company continued its global footprint and cost optimization actions associated with certain plant closures and other related activities to further improve the operating and manufacturing cost structure, which began in fiscal 2024. These activities resulted in restructuring expenses of $18.3 million, $16.8 million and $6.4 million for the years ended July 31, 2026, 2025 and 2024, respectively. Charges of $17.6 million, $6.5 million and $3.8 million were included in cost of sales in the Consolidated Statements of Earnings for the years ended July 31, 2026, 2025 and 2024, respectively. Charges of $0.7 million, $10.3 million and $2.6 million were included in operating expenses in the Consolidated Statements of Earnings for the years ended July 31, 2026, 2025 and 2024, respectively. As of July 31, 2026 and July 31, 2025, $3.6 million and $7.1 million of accrued expenses were included in accrued employee compensation and related taxes in the Consolidated Balance Sheets, respectively.

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Note 3. Revenue The Company recognizes revenue on a wide range of filtration solutions sold to customers in many industries around the globe. Most of the Companys performance obligations within customer sales contracts are for manufactured filtration systems and replacement parts. The Company also performs limited services and installation. Customer contracts may include multiple performance obligations and the transaction price is allocated to each distinct performance obligation based on its relative standalone selling price. Revenue Disaggregation Net sales, generally disaggregated by location where the customers order was placed, were as follows (in millions): Year Ended July 31, 2026 2025 2024 U.S. and Canada $ 1,652.0 $ 1,632.3 $ 1,583.1 Europe, Middle East and Africa (EMEA) 1,136.0 1,027.2 1,012.9 Asia Pacific (APAC) 689.5 635.7 601.5 Latin America (LATAM) 408.1 395.7 388.8 Total net sales $ 3,885.6 $ 3,690.9 $ 3,586.3 See Note 19 for net sales disaggregated by segment and business unit. Contract Assets and Liabilities The satisfaction of performance obligations and the resulting recognition of revenue typically correspond with billing of the customer. In limited circumstances, the customer may be billed at a time later than when revenue is recognized, resulting in contract assets, which are reported in other current assets on the Consolidated Balance Sheets. Contract assets were $22.0 million and $24.3 million as of July 31, 2026 and 2025, respectively. In other limit …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 19. Segment Reporting The Companys reportable segments are: Mobile Solutions, Industrial Solutions and Life Sciences. The organizational structure also includes Corporate and Unallocated which includes interest expense and certain corporate expenses determined to be non-allocable to the segments, such as restructuring charges and business development expenses. The Company determines its operating segments consistent with the manner in which the chief operating decision maker (CODM) manages operations and evaluates performance for internal review and decision-making. The CODM evaluates trends in earnings (loss) before income taxes to assess performance of the segments. The CODM considers variances in reported results to budget and variances to prior periods to make decisions about allocating resources to each segment. The Companys CODM is the Chief Executive Officer. The Mobile Solutions segment is organized based on a combination of customers and products and consists of the Off-Road, On-Road and Aftermarket business units. Within these business units, products consist of replacement filters for both air and liquid filtration applications and filtration housings for new equipment production and systems related to exhaust and emissions. Applications include air filtration systems, fuel, lube and hydraulic systems, emissions systems and sensors, indicators and monitoring systems. Mobile Solutions sells to original equipment manufacturers (OEMs) in the construction, mining, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 11. Stockholders Equity Share Repurchases In November 2023, the Board of Directors authorized the repurchase of up to 12.0 million shares of common stock under the Companys stock repurchase plan, replacing the Companys previous stock repurchase plan dated May 31, 2019. This repurchase authorization is effective until terminated by the Board of Directors. During the year ended July 31, 2026, the Company repurchased 1.4 million shares for $108.5 million. During the year ended July 31, 2025, the Company repurchased 4.9 million shares for $333.6 million. As of July 31, 2026, the Company had remaining authorization to repurchase 4.5 million shares under the November 2023 stock repurchase plan. Treasury stock share activity was as follows: Year Ended July 31, 2026 2025 Balance as of beginning of year 35,600,740 31,533,192 Stock repurchases 1,369,844 4,875,000 Net issuance upon exercise of stock options (1,199,953) (678,540) Issuance under compensation plans (115,305) (121,769) Other activity (6,279) (7,143) Balance as of end of year 35,649,047 35,600,740 Dividends Paid and Declared Dividends paid were $1.22 and $1.11 per common share for the years ended July 31, 2026 and 2025, respectively. On July 31, 2026, the Companys Board of Directors declared a cash dividend in the amount of 32.0 cents per common share, payable August 31, 2026, to stockholders of record as of August 17, 2026. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 17. Commitments and Contingencies The Company records provisions when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and litigation are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the estimated liability in its Condensed Consolidated Financial Statements for claims or litigation is adequate and appropriate for the probable and estimable outcomes. Liabilities recorded were not material to the Companys financial position, results of operations or liquidity. The Company believes it is remote that the settlement of any of the currently identified claims or litigation will be materially in excess of what is accrued. The Company is party to agreements that include deferred payment provisions representing potential milestone payments for former owners of acquired businesses. The provisions are made up of two general types of arrangements, contingent compensation and contingent consideration. A contingent compensation arrangement is contingent on the former owners future employment with the Company and the related amounts are recognized over the required employment period. A contingent consideration agreement is contingent on the achievement of certain revenue and manufacturing milestones, regardless of the former owner's employment status. Contingent consideration was recorded as purchase consideration in both other current and other long-t …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Net sales, generally disaggregated by location where the customers order was placed, were as follows (in millions): Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 U.S. and Canada $ 427.1 $ 420.9 $ 1,207.2 $ 1,221.7 Europe, Middle East and Africa (EMEA) 289.3 259.5 816.9 728.8 Asia Pacific (APAC) 172.8 158.3 503.3 465.3 Latin America (LATAM) 105.9 101.4 299.4 294.4 Total net sales $ 995.1 $ 940.1 $ 2,826.8 $ 2,710.2 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 12. Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards based on the grant date fair value of the award. Stock-based awards consist primarily of non-qualified stock options, performance-based awards, restricted stock awards and restricted stock units. Grants related to restricted stock awards and restricted stock units are immaterial. The Company issues treasury shares for stock options and performance-based awards. Stock Options The exercise price of options granted is equal to the market price of the Companys common stock at the date of the grant. Options are generally exercisable for up to 10 years from the date of grant and vest in equal annual increments over three years. Pretax stock-based compensation expense associated with options was $2.5 million and $15.8 million for the three and nine months ended April 30, 2026, respectively, and was $2.2 million and $14.2 million for the three and nine months ended April 30, 2025, respectively. Fair value is calculated using the Black-Scholes option pricing model. The weighted average fair value for options granted was $25.86 and $21.67 per share during the nine months ended April 30, 2026 and 2025, respectively. Option activity was as follows: Options Weighted Average Exercise Price Balance outstanding as of July 31, 2025 6,223,080 $ 54.24 Granted 683,172 82.73 Exercised (1,126,499) 45.95 Expired/forfeited (18,602) 68.86 Balance outstanding as of April 30, 2026 5,761,151 $ 59.19 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 15. Fair Value Measurements Fair value measurements of financial instruments are reported in one of three levels based on the lowest level of significant input used. For Level 1, inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities. For Level 2, inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. For Level 3, inputs to the fair value measurement are unobservable inputs or are based on valuation techniques. Short-Term Financial Instruments As of April 30, 2026 and July 31, 2025, the carrying values of cash and cash equivalents, accounts receivable, short-term borrowings and accounts payable approximate fair value because of the short-term nature of these instruments. Short-term financial instruments are classified as Level 1 in the fair value hierarchy. Long-Term Debt As of April 30, 2026, the estimated fair values of fixed interest rate long-term debt were $253.5 million compared to the carrying values of $275.0 million. As of July 31, 2025, the estimated fair values of fixed interest rate long-term debt were $247.5 million compared to the carrying values of $275.0 million. The fair values are estimated by discounting the projected cash flows using the i …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 6. Goodwill and Intangible Assets Goodwill The Company allocates goodwill to reporting units within its Mobile Solutions, Industrial Solutions and Life Sciences segments. There were no dispositions or impairment charges recorded during the three and nine months ended April 30, 2026 and 2025. Goodwill is assessed for impairment annually during the third quarter of the fiscal year, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2026 and did not record any impairment as a result of this assessment. Goodwill by reportable segment was as follows (in millions): Mobile Solutions Segment Industrial Solutions Segment Life Sciences Segment Total Balance as of July 31, 2025 $ 25.4 $ 298.2 $ 170.0 $ 493.6 Foreign currency translation 0.2 2.8 2.8 5.8 Balance as of April 30, 2026 $ 25.6 $ 301.0 $ 172.8 $ 499.4 Intangible Assets Intangible asset classes were as follows (in millions): April 30, 2026 Weighted Amortizable Life (in Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 8.0 $ 75.5 $ (45.6) $ 29.9 Trademarks 6.0 4.1 (2.5) 1.6 Technology and patents 16.0 81.5 (21.1) 60.4 Non-compete agreements 3.3 1.2 (0.8) 0.4 Total intangible assets $ 162.3 $ (70.0) $ 92.3 July 31, 2025 Weighted Amortizable Life (in Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 8.5 $ 74.7 $ (43.7) $ 31.0 Trademark …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 8. Income Taxes On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted into U.S. law, which primarily modified tax provisions from the 2017 Tax Cuts and Jobs Act. The provisions within the OBBBA have staggered effective dates to be phased in between fiscal years 2025 and 2027, and the Company continues to evaluate the impact of these provisions on our Consolidated Financial Statements and Condensed Consolidated Financial Statements. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The U.S. Internal Revenue Service has completed examinations of the Companys U.S. federal income tax returns through fiscal 2021. With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before fiscal 2020. As of April 30, 2026, gross unrecognized tax benefits were $22.7 million and accrued interest and penalties on these unrecognized tax benefits were $3.3 million. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income taxes in the Condensed Consolidated Statements of Earnings. The statutes of limitation periods for the Companys various tax jurisdictions range from two years to 10 years. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 7. Long-Term Debt As of April 30, 2026, there was $571.6 million available and $20.0 million outstanding on the Companys $600.0 million unsecured revolving credit facility that expires on June 12, 2030. Certain debt agreements contain financial covenants related to interest coverage and leverage ratios, as well as other non-financial covenants. As of April 30, 2026, the Company was in compliance with all such covenants. During the third quarter of fiscal 2026, the Company entered into a Term Loan Credit Agreement that created a new three-year committed, unsecured, delayed draw term loan credit facility in the amount of $400.0 million. The Term Loan Facility is available in U.S. Dollars. As of April 30, 2026, there was no outstanding balance under the Term Loan Facility. …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"New Significant Accounting Standard Recently Adopted In November 2023, FASB issued ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures , which improves the segment disclosures to include reportable segments expenses. The guidance is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. This ASU was applicable beginning with annual reporting for the Companys fiscal 2025 and interim reporting for the first quarter of the Companys fiscal 2026. The Company adopted ASU 2023-07 in the fourth quarter of fiscal 2025 for its fiscal year ended July 31, 2025 and all interim periods thereafter. New Significant Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the FASBs ASUs issued but not yet adopted. In November 2024, FASB issued ASU No. 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses, which improves disclosures about a companys expenses and provides more detailed information about the types of expenses in commonly presented expense captions. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. This ASU is applicable to annual reporting for the Companys fiscal 2028 and interim reporting for the first quarter of the Companys fiscal 2029. The Company will adopt ASU 2024-03 for the annual reporting period en …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 13. Employee Benefit Plans The Company has defined benefit pension plans for certain hourly and salaried employees. They consist of plans in the U.S., Belgium, Germany, Mexico and the United Kingdom. These plans generally provide pension benefits based on years of service and compensation level. Components of net periodic pension costs other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Earnings. Net periodic pension costs for the Companys pension plans were as follows (in millions): Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 Service cost $ 1.3 $ 1.2 $ 3.9 $ 3.6 Interest cost 4.6 4.9 14.5 14.6 Expected return on assets (6.3) (6.4) (18.9) (19.2) Actuarial loss amortization 0.4 0.6 1.3 1.8 Settlement charge 3.2 3.2 Net periodic pension costs $ 3.2 $ 0.3 $ 4.0 $ 0.8 In the third quarter of fiscal 2026, the Company recorded a pension settlement charge of $3.2 million as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurement resulted in an increase in the Companys pension assets and a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statements of Comprehensive Income of $0.1 million. See Note 11. The Companys general funding policy is to make at least the minimum required contributions under applicable regulations, plus any additional amounts i …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 19. Restructuring and Other Charges During the first three quarters of fiscal 2026, the Company continued the global footprint and cost optimization actions to further improve the operating and manufacturing cost structure, which began in fiscal 2024. These activities resulted in restructuring and related expenses of $9.0 million and $7.5 million for the three and nine months ended April 30, 2026, respectively, and $3.0 million and $8.4 million for the three and nine months ended April 30, 2025, respectively. Charges of $9.1 million and $13.3 million were included in cost of sales, and benefits of $0.1 million and $5.8 million were included in operating expense in the Condensed Consolidated Statement of Earnings for the three and nine months ended April 30, 2026, respectively. Charges of $2.6 million and $4.3 million were included in cost of sales, and charges of $0.4 million and $4.1 million were included in operating expense in the Condensed Consolidated Statements of Earnings for the three and nine months ended April 30, 2025, respectively. The estimated range of future costs associated with actions related to this restructuring is $3.0 million to $5.0 million. As of April 30, 2026 and July 31, 2025, $5.5 million and $7.1 million, respectively, of accrued expenses were included in accrued employee compensation and related taxes in the Condensed Consolidated Balance Sheets.

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Note 3. Revenue The Company recognizes revenue on a wide range of filtration solutions sold to customers in many industries around the globe. Most of the Companys performance obligations within customer sales contracts are for manufactured filtration systems and replacement parts. The Company also performs limited services and installation. Customer contracts may include multiple performance obligations and the transaction price is allocated to each distinct performance obligation based on its relative standalone selling price. Revenue Disaggregation Net sales, generally disaggregated by location where the customers order was placed, were as follows (in millions): Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 U.S. and Canada $ 427.1 $ 420.9 $ 1,207.2 $ 1,221.7 Europe, Middle East and Africa (EMEA) 289.3 259.5 816.9 728.8 Asia Pacific (APAC) 172.8 158.3 503.3 465.3 Latin America (LATAM) 105.9 101.4 299.4 294.4 Total net sales $ 995.1 $ 940.1 $ 2,826.8 $ 2,710.2 See Note 18 for net sales disaggregated by segment and business unit. Contract Assets and Liabilities The satisfaction of performance obligations and the resulting recognition of revenue typically correspond with billing of the customer. In limited circumstances, the customer may be billed at a time later than when revenue is recognized, resulting in contract assets, which are reported in other current assets on the Condensed Consolidated Balance Sheets. Contract assets were $24.4 million …

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Note 18. Segment Reporting The Companys reportable segments are: Mobile Solutions, Industrial Solutions and Life Sciences. The organizational structure also includes Corporate and Unallocated, which includes interest expense and certain corporate expenses determined to be non-allocable to the segments, such as restructuring charges and business development expenses. The Company determines its operating segments consistent with the manner in which the chief operating decision maker (CODM) manages its operations and evaluates performance for internal review and decision-making. The CODM evaluates trends in earnings (loss) before income taxes to assess performance of the segments. The CODM considers variances in reported results to budget and variances to prior periods to make decisions about allocating resources to each segment. The Companys CODM is the Chief Executive Officer. For the three months ended April 30, 2026, Corporate and Unallocated included charges of $9.8 million, primarily related to business development and restructuring and related charges. For the nine months ended April 30, 2026, Corporate and Unallocated included charges of $12.2 million, primarily related to business development and restructuring and related charges, partially offset by a gain on the sale of fixed assets. The Mobile Solutions segment is organized based on a combination of customers and products and consists of the Off-Road, On-Road and Aftermarket business units. Within these business unit …

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Note 10. Stockholders Equity Share Repurchases In November 2023, the Board of Directors authorized the repurchase of up to 12.0 million shares of common stock under the Companys stock repurchase plan. This repurchase authorization is effective until terminated by the Board of Directors. During the nine months ended April 30, 2026, the Company repurchased 1.4 million shares for $108.5 million. During the nine months ended April 30, 2025, the Company repurchased 4.0 million shares for $273.8 million. As of April 30, 2026, the Company had remaining authorization to repurchase 4.5 million shares under the November 2023 stock repurchase plan. Dividends Dividends paid were 30.0 cents and 90.0 cents per common share for the three and nine months ended April 30, 2026, respectively, and were 27.0 cents and 81.0 cents per common share for the three and nine months ended April 30, 2025. On May 29, 2026, the Companys Board of Directors declared a cash dividend in the amount of 32.0 cents per common share, payable June 30, 2026, to stockholders of record as of June 15, 2026. …

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Note 20. Subsequent Event On May 4, 2026, the Company acquired Filtration Groups Facet Filtration business (Facet), consisting of Facet (Oklahoma) LLC and Facet Netherlands B.V., in an all-cash transaction valued at approximately $820.0 million, for cash consideration of $828.7 million. As part of this transaction, the Company issued approximately $820.0 million of new debt, increasing total long-term debt outstanding for the Company to approximately $1.4 billion, and remained in compliance with all applicable financial covenants. The new debt incurred in the fourth quarter of fiscal 2026 was at a rate of 4.6%. The new debt bears interest at a variable rate based on Term SOFR plus a spread that is based on the Companys Leverage Ratio as defined by the agreements. Facet offers fuel and fluid filtration solutions for mission-critical applications primarily in aerospace and defense, as well as power generation. Headquartered in Tulsa, Oklahoma, Facet has approximately 250 employees across the U.S. and Europe with key manufacturing locations in Oklahoma and Spain. The Company has not yet obtained all the information required to finalize the valuations of the assets acquired and liabilities assumed, primarily because of the proximity of the acquisition to the balance sheet date of April 30, 2026. …

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