Financial Analysis

"ACQUISITIONS Micromax Acquisition On February 2, 2026, the Company completed the Micromax Acquisition for a purchase price of approximately $494 million, net of cash and subject to adjustments. Micromax is a global supplier of advanced electronics inks and pastes and was acquired to complement the Company's electronics portfolio. This acquisition was funded with the proceeds from the Add-on Term Loans of $450 million, which closed simultaneously with the Micromax Acquisition, and borrowings under the Company's revolving credit facility. Micromax is reported in the Companys Electronics segment. EFC Acquisition On January 2, 2026, the Company completed the EFC Acquisition for a purchase price of approximately $367 million, net of cash and subject to adjustments, with an additional $16.1 million estimated fair value associated with a potential earn-out based on EFC's 2026 performance of up to $30.0 million cash or 1.16 million shares of the Company's common stock. EFC is a provider of high-purity specialty gases and other advanced materials and was acquired to complement the Company's industrial portfolio. This acquisition was funded with cash on hand. EFC is reported in the Companys Specialties segment. In connection with the EFC Acquisition, certain EFC executives were granted approximately 1.45 million performance-based RSUs with an aggregate grant date fair value of $37.5 million. These RSUs were granted in two tranches with vesting subject to the achievement of EFC's Adjus …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

DEBT The Companys debt obligations consisted of the following: (dollars in millions) Maturity Date Interest Rate June 30, 2026 December 31, 2025 Term Loans (1) 2030 SOFR plus 1.75% $ 1,272.9 $ 830.3 Senior Notes - $800 million (2) 2028 3.875% 796.5 795.6 Borrowings under the Revolving Credit Facility 2031 SOFR plus 1.50% 50.0 Total debt 2,119.4 1,625.9 Less: current installments of long-term debt and revolving credit facilities 62.9 Total long-term debt $ 2,056.5 $ 1,625.9 (1) Term loans, net of unamortized discounts and debt issuance costs of $10.1 million and $5.9 million at June 30, 2026 and December 31, 2025, respectively. The effective interest rate was 4.4% and 4.5% at June 30, 2026 and December 31, 2025, respectively, including the effects of interest rate swaps and net investment hedges. See Note 7, Financial Instruments, to the unaudited Condensed Consolidated Financial Statements for further information regarding the Company's interest rate swaps and net investment hedges. (2) Senior notes, net of unamortized debt issuance costs of $3.5 million and $4.4 million at June 30, 2026 and December 31, 2025, respectively. The effective interest rate was 4.1% at both June 30, 2026 and December 31, 2025. Credit Agreement The Company is a party to the Credit Agreement which, at June 30, 2026, provided for senior secured credit facilities consisting of a tranche of term loans B-3 of $1.28 billion maturing in 2030, and a revolving credit facility of $500 million, maturing in 203 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The changes in the carrying amount of goodwill by segment were as follows: (dollars in millions) Electronics Specialties Total Balance at December 31, 2025 $ 1,315.5 $ 926.4 (1) $ 2,241.9 Acquisitions (2) 129.2 163.6 292.8 Foreign currency translation and other 6.5 (3.8) 2.7 Balance at June 30, 2026 $ 1,451.2 $ 1,086.2 $ 2,537.4 (1) Includes accumulated impairment losses of $46.6 million. (2) The Company completed the Micromax Acquisition and the EFC Acquisition on February 2, 2026 and January 2, 2026, respectively. See Note 2, Acquisitions, to the unaudited Condensed Consolidated Financial Statements for further information. Intangible Assets, Net The major components of intangible assets, net were as follows: June 30, 2026 December 31, 2025 (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 1,091.3 $ (494.6) $ 596.7 $ 876.8 $ (532.9) $ 343.9 Developed technology 278.7 (160.0) 118.7 313.3 (272.2) 41.1 Trade names 194.0 (53.1) 140.9 163.8 (46.4) 117.4 Reacquired distribution rights 187.0 (38.4) 148.6 187.0 (32.2) 154.8 Total $ 1,751.0 $ (746.1) $ 1,004.9 $ 1,540.9 $ (883.7) $ 657.2 For the three months ended June 30, 2026 and 2025, the Company recorded amortization expense on intangible assets of $29.5 million and $28.5 million, respectively. For the six months ended June 30, 2026 and 2025, the Company recorded a …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The Company's quarterly income tax provision is measured using an estimate of its consolidated annual effective tax rate, which includes the impact of foreign withholding tax accruals and uncertain tax positions, adjusted for discrete items, within the periods presented. The comparison of the Company's income tax provision between periods can be significantly impacted by the level and mix of earnings, losses by tax jurisdiction and discrete items. For the three months ended June 30, 2026, the Company recognized income tax expense of $29.8 million as compared to $15.8 million in the same period for 2025. Income tax expense for the three months ended June 30, 2026, includes a U.S. benefit related to claiming foreign tax credits, a recurring benefit from a U.S. tax deduction related to foreign-derived deduction eligible income (commonly referred to as FDDEI), an expense related to net Controlled Foreign Corporation tested income (commonly referred to as NCTI), and the impact of changes to the level and mix of earnings. For the six months ended June 30, 2026, the Company recognized income tax expense of $56.5 million as compared to $33.6 million in the same period for 2025. Income tax expense for the six months ended June 30, 2026, includes a U.S. benefit related to claiming foreign tax credits, a recurring benefit from a U.S. tax deduction related to FDDEI partially offset with foreign tax credit valuation allowances of $6.4 million, NCTI, and the impact of changes …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"RELATED PARTY TRANSACTIONS The Company is party to an Advisory Services Agreement with Mariposa Capital, LLC, an affiliate of one of its founder directors, whereby Mariposa Capital, LLC is entitled to receive an annual fee of $2.0 million and reimbursement for expenses, which are recorded in the Condensed Consolidated Statements of Operations as ""Selling, technical, general and administrative"" expense. On May 5, 2026, the Company and Mariposa Capital, LLC entered into an amendment to the existing Advisory Services Agreement. Pursuant to the Amendment, Mariposa Capital, LLC will continue to provide advisory services to the Company relating to corporate development, mergers and acquisitions, investor relations, strategic planning, capital expenditure allocation and strategic treasury matters for a fixed term of 3 years (terminating on May 5, 2029) followed by automatic renewals for successive one-year terms unless either party provides written notice of non-renewal at least 90 days prior to the expiration of the applicable term."

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"SEGMENT INFORMATION The Company's operations are organized into two reportable segments: Electronics and Specialties. These segments represent businesses for which separate financial information is utilized by the chief operating decision maker (CODM) for purposes of allocating resources and evaluating performance. The Company's CODM is the Chief Executive Officer. The CODM utilizes net sales and Adjusted EBITDA to allocate resources predominantly in the annual budget and forecasting process. The CODM evaluates the performance of the operating segments by considering budget to actual variances when making decisions about allocating capital and personnel to the segments and determining the compensation of certain employees. Adjusted EBITDA for each segment is defined as EBITDA, as further adjusted for additional items included in earnings which the Company believes are not representative or indicative of each of its segments' ongoing business or are considered to be associated with the Company's capital structure. Adjusted EBITDA for each segment also includes an allocation of corporate costs, such as compensation expense and professional fees. Disaggregated Net Sales The following table summarizes disaggregated external net sales by product category: Three Months Ended Six Months Ended June 30, June 30, (dollars in millions) 2026 2025 2026 2025 Net sales: Electronics Assembly Solutions $ 369.0 $ 221.0 $ 694.5 $ 415.1 Circuitry Solutions 154.1 130.9 299.7 251.0 Micromax 128.6 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing