Financial Analysis

Acquisitions General We generally pursue business combinations to strengthen our position in existing markets, increase our market share and product offerings and expand into new markets. Acquisitions are accounted for under the acquisition method of accounting. For each acquisition, the excess of the purchase consideration over the fair value of the net assets acquired and liabilities assumed is recorded as goodwill, which generally represents the combined value of our existing resources with the organizational talent of the acquired companies respective management teams to maximize efficiencies, market share growth and overall financial performance. For each acquisition, we complete our allocation of purchase price to the fair values of acquired assets and liabilities within a one-year measurement period. For each acquisition completed in the first quarter of fiscal 2027 and the first quarter of fiscal 2026, the results of operations since the acquisition date and the assets are presented in our Water Treatment segment. Costs associated with each acquisition were not material and were expensed as incurred. Fiscal 2027 Material Acquisitions We completed one immaterial acquisition in the first quarter of fiscal 2027 . Fiscal 2026 Material Acquisitions Acquisition of WaterSurplus, Inc.: On April 25, 2025, we acquired substantially all of the assets and assumed certain liabilities of Surplus Management, Inc. d/b/a WaterSurplus (WaterSurplus) for an initial purchase price of app …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Environmental Remediation. In fiscal 2024, we recorded a liability of $7.7 million related to estimated remediation expenses associated with perchlorinated biphenyls (""PCBs"") discovered in the soil at our Rosemount, Minnesota facility during an expansion project. This charge was recorded as an operating expense within cost of sales in our fiscal 2024 condensed consolidated statement of income. We acquired the property, which had prior heavy industrial use, in fiscal 2012. While the source of the PCBs is unknown, we have never brought PCBs onto the property or used PCBs on the site. The remediation liability is not discounted as management expects to incur these expenses within the next twelve months. Given the many uncertainties involved in assessing environmental matters, actual remediation expenses could differ from our estimates. While additional remediation expenses are reasonably possible to be incurred in future periods if new information or conditions are identified, we are unable to reasonably estimate the amount or range of any such additional expenses at this time. No additional expenses were incurred related to this liability during the three months ended June 28, 2026 and June 29, 2025."

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Debt We are party to a second amended and restated credit agreement with U.S. Bank National Association (U.S. Bank) as administrative agent, sole lead arranger and sole book runner, and the other lenders from time to time party thereto (collectively, the Lenders), dated as of March 31, 2022 (and as amended, restated or modified from time to time, the Credit Agreement). A Joinder, Consent and Second Amendment dated April 25, 2025 increased the revolving commitment under the Credit Agreement to provide us with senior secured revolving credit facilities (the Revolving Loan Facility) totaling $400.0 million. A Third Amendment dated October 15, 2025, modified terms related to qualified receivables transactions, as defined in the Credit Agreement. The Revolving Loan Facility includes a $10.0 million letter of credit subfacility and $25.0 million swingline subfacility. The Revolving Loan Facility is secured by substantially all of our personal property assets and those of our subsidiaries, and is scheduled to mature on April 25, 2030. In the first quarter of fiscal 2026, we drew approximately $150 million of additional proceeds to acquire substantially all of the assets of WaterSurplus as discussed in Note 2. We may use other proceeds from the Revolving Loan Facility for working capital, capital expenditures, share repurchases, restricted payments and other acquisitions permitted under the Credit Agreement, and other general corporate purposes. We paid fees of approximately $1.0 mil …

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The following tables disaggregate external customer net sales by major revenue stream for the three months ended June 28, 2026 and June 29, 2025: Three months ended June 28, 2026 (In thousands) Water Treatment Food & Health Sciences Industrial Solutions Total Manufactured, blended, repackaged products or equipment (1) $ 140,037 $ $ 45,860 $ 185,897 Bulk products (2) 16,296 12,602 28,898 Nutrition 37,057 37,057 Food 24,310 24,310 Pharmaceutical 6,965 6,965 Agricultural 27,914 27,914 Other 1,960 1,004 1,670 4,634 Total external customer sales $ 158,293 $ 97,250 $ 60,132 $ 315,675 Three months ended June 29, 2025 (In thousands) Water Treatment Food & Health Sciences Industrial Solutions Total Manufactured, blended, repackaged products or equipment (1) $ 136,347 $ $ 41,318 $ 177,665 Bulk products (2) 11,969 11,844 23,813 Nutrition 35,337 35,337 Food 26,077 26,077 Pharmaceutical 5,557 5,557 Agricultural 21,469 21,469 Other 1,250 737 1,367 3,354 Total external customer sales $ 149,566 $ 89,177 $ 54,529 $ 293,272 (1) This line includes our non-bulk specialty products in our Water Treatment and Industrial Solutions segments that we either manufacture, blend, repackage, resell in their original form, or direct ship to our customers in smaller quantities, and equipment and services we provide for our customers. (2) This line includes bulk products in our Water Treatment and Industrial Solutions segments that we do not modify in any way, but receive, store, and ship from our fac …

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"Share-Based Compensation Performance-Based Restricted Stock Units . Our Board of Directors (the Board) approved a performance-based equity compensation arrangement for our executive officers during the first quarters of each of fiscal 2027 and fiscal 2026. These performance-based arrangements provide for the grant of performance-based restricted stock units under our 2019 Equity Incentive Plan (the ""2019 Plan"") that represent a possible future issuance of restricted shares of our common stock based on a pre-tax income target for the applicable fiscal year. The actual number of restricted shares to be issued to each executive officer is determined when our final financial information becomes available after the applicable fiscal year and will be between zero shares and 40,962 shares in the aggregate for fiscal 2027. The restricted shares issued, if any, will fully vest approximately two years after the last day of the fiscal year on which the performance is based. We are recording the compensation expense for the outstanding performance share units and the converted restricted stock over the life of the awards. The following table represents the restricted stock activity for the three months ended June 28, 2026: Shares Weighted- Average Grant Date Fair Value Unvested at beginning of period 136,846 $ 95.93 Granted 38,224 161.83 Vested (70,859) 76.60 Unvested at end of period 104,211 $ 133.25 We recorded compensation expense related to performance share units and restricted s …

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Goodwill and Other Identifiable Intangible Assets The carrying amounts of goodwill for each of our three reportable segments were as follows: (In thousands) Water Treatment Food & Health Sciences Industrial Solutions Total Balance as of March 29, 2026 $ 170,880 $ 46,871 $ 5,291 $ 223,042 Addition, due to acquisitions 786 786 Balance as of June 28, 2026 $ 171,666 $ 46,871 $ 5,291 $ 223,828 The following is a summary of our identifiable intangible assets as of June 28, 2026 and March 29, 2026: June 28, 2026 March 29, 2026 (In thousands) Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Finite-life intangible assets Customer relationships $ 285,254 $ (79,921) $ 205,333 $ 283,654 $ (75,216) $ 208,438 Trademarks and trade names $ 21,622 $ (9,939) $ 11,683 $ 21,622 $ (9,486) $ 12,136 Other finite-life intangible assets 16,573 (5,798) 10,775 16,526 (5,440) 11,086 Total finite-life intangible assets 323,449 (95,658) 227,791 321,802 (90,142) 231,660 Indefinite-life intangible assets 1,227 1,227 1,227 1,227 Total intangible assets $ 324,676 $ (95,658) $ 229,018 $ 323,029 $ (90,142) $ 232,887 …

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Income Taxes We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The tax years prior to our fiscal year ended April 2, 2023 are closed to examination by the Internal Revenue Service, and with few exceptions, state and local income tax jurisdictions. Our effective income tax rate was approximately 24% for the three months ended June 28, 2026 and 25% for the three months ended June 29, 2025. The effective tax rate in both years was impacted by favorable tax provision adjustments recorded. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, and state taxes.

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Revenue Our revenue arrangements generally consist of a single performance obligation to transfer promised goods or services. We disaggregate revenues from contracts with customers by operating segments as well as types of products sold. Reporting by operating segment is pertinent to understanding our revenues, as it aligns to how we review the financial performance of our operations. Types of products sold within each operating segment help us to further evaluate the financial performance of our segments. The following tables disaggregate external customer net sales by major revenue stream for the three months ended June 28, 2026 and June 29, 2025: Three months ended June 28, 2026 (In thousands) Water Treatment Food & Health Sciences Industrial Solutions Total Manufactured, blended, repackaged products or equipment (1) $ 140,037 $ $ 45,860 $ 185,897 Bulk products (2) 16,296 12,602 28,898 Nutrition 37,057 37,057 Food 24,310 24,310 Pharmaceutical 6,965 6,965 Agricultural 27,914 27,914 Other 1,960 1,004 1,670 4,634 Total external customer sales $ 158,293 $ 97,250 $ 60,132 $ 315,675 Three months ended June 29, 2025 (In thousands) Water Treatment Food & Health Sciences Industrial Solutions Total Manufactured, blended, repackaged products or equipment (1) $ 136,347 $ $ 41,318 $ 177,665 Bulk products (2) 11,969 11,844 23,813 Nutrition 35,337 35,337 Food 26,077 26,077 Pharmaceutical 5,557 5,557 Agricultural 21,469 21,469 Other 1,250 737 1,367 3,354 Total external customer sa …

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Segment Information We organize and manage our business by the following three segments, each of which meets the definition of reportable segments under ASC 280-10, Segment Reporting : Water Treatment, Food & Health Sciences, and Industrial Solutions. These segments are defined primarily by product and type of customer. Water Treatment Segment. Our Water Treatment Group specializes in providing chemicals, filtration media and systems, equipment, services and solutions for potable water, municipal and industrial wastewater, industrial process water, mainly non-residential swimming pool water and agricultural water. This group has the resources and flexibility to treat systems ranging in size from a single small well to a multi-million-gallon-per-day facility. Food and Health Sciences Segment. Our Food and Health Sciences Group specializes in processing and formulation solutions as well as ingredient distribution to manufacturers in the nutrition, food, pharmaceutical, and agricultural markets. This group offers a diverse product portfolio, including base chemistry, acid based reactions, minerals, vitamins and amino acids, excipients, botanicals and herbs, sweeteners and enzymes, fertilizers, and food-grade and pharmaceutical salts and ingredients. Industrial Solutions Segment. Our Industrial Solutions Group specializes in providing industrial chemicals, products and services to industries such as industrial manufacturing, chemical processing, electronics, energy, plating, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Share Repurchase Program Our Board has authorized the repurchase of up to 2.6 million shares of our outstanding common shares. The shares may be repurchased on the open market or in privately negotiated transactions subject to applicable securities laws and regulations. Upon purchase of the shares, we reduce our common stock for the par value of the shares with the excess applied against additional paid-in capital. During the three months ended June 28, 2026, 45,196 shares were repurchased at an aggregate purchase price of $7.0 million, and during the three months ended June 29, 2025, no shares were repurchased. As of June 28, 2026, 686,348 shares remained available to be repurchased under the share repurchase program.

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