Financial Analysis

14. Commitments and Contingent Liabilities From time to time, the Company is involved in various legal proceedings and claims arising in the ordinary course of its business. The majority of these claims and proceedings relate to commercial, warranty, employment, and intellectual property matters. Although the ultimate outcome of any legal proceeding or claim cannot be predicted with certainty, based on present information, including managements assessment of the merits of the particular claim, the Company believes that the disposition of these legal proceedings or claims, individually or in the aggregate, after taking into account recorded accruals and the availability and limits of insurance coverage, will not have a material adverse effect on its cash flow, results of operations, or financial condition. The Company owns many patents and other intellectual property pertaining to its products, technology, and manufacturing processes. Some of the Company's patents have been and may continue to be infringed upon or challenged by others. In appropriate cases, the Company has taken and will take steps to protect and defend its patents and other intellectual property, including through the use of legal proceedings in various jurisdictions around the world. Such steps have resulted in and may continue to result in retaliatory legal proceedings, including litigation or other legal proceedings in various jurisdictions and forums around the world alleging infringement by the Company o …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"9. Borrowings Borrowings consist of the following: (in millions) June 30, 2026 December 31, 2025 $400.0 million Revolving Credit Facility $ 131.0 $ 114.0 Less current maturities (1) Total long-term debt $ 131.0 $ 114.0 (1) There are no required principal payments due until maturity in February 2028. Total debt principal payments over the next five years are as follows: (in millions) Q3-Q4 2026 $ 2027 2028 131.0 2029 2030 Revolving Credit Facility On February 8, 2023, the Company entered into an Amended and Restated Credit Agreement (the ""A&R Credit Agreement"") that amends and restates the prior Credit Agreement, dated September 4, 2020, and provides for a senior secured revolving credit facility with borrowings in an aggregate principal amount at any time outstanding not to exceed $400.0 million (the ""Credit Facility""). The A&R Credit Agreement, among other things, extends the maturity date of the Credit Facility from January 2, 2024 to February 8, 2028, replaces the London Inter-Bank Offered Rate (LIBOR) with the Term Secured Overnight Financing Rate (Term SOFR) as a reference rate available for borrowings, amends the minimum Interest Coverage Ratio, and amends certain other financial covenants with which the Company must comply, as described below. On September 25, 2023, the Company amended its A&R Credit Agreement to, among other things, (a) permit the Company in connection with the acquisition of Cornell Dubilier (""CD""), to incur senior priority seller …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"12. Equity Incentive Program The following table summarizes the stock-based compensation expense recognized by the Company for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Total pre-tax stock-based compensation expense $ 6.2 $ 6.3 $ 16.6 $ 16.5 Tax benefit 1.3 0.4 8.2 3.5 Total stock-based compensation expense, net of tax $ 4.9 $ 5.9 $ 8.4 $ 13.0 Stock Options No stock options were granted during the six months ended June 30, 2026 and 2025. The following table summarizes the Company's stock option activity for the six months ended June 30, 2026: Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted-Average Remaining Contractual Term (Years) Outstanding at December 31, 2025 413,659 $ 18.20 Exercised (1) (380,855) 18.04 Expired (1) 16.07 Outstanding at June 30, 2026 32,803 $ 20.07 $ 0.7 1.9 Exercisable at June 30, 2026 32,803 $ 20.07 $ 0.7 1.9 (1) The number of stock options exercised includes shares that the Company withheld on behalf of employees to satisfy the option exercise price (in the instances of net exercises) as well as statutory tax withholding requirements. There was no unrecognized compensation expense related to stock options at June 30, 2026. Restricted Stock Units The following table summarizes the Company's restricted stock unit (""RSU"") activity for the six months ended June 30, 2026: Share units Weighted-average grant date fair value Unvested at De …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

6. Goodwill and Other Intangible Assets The changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2026 are as follows: (in millions) Precision Devices MedTech & Specialty Audio Total Balance at December 31, 2025 $ 132.6 $ 137.7 $ 270.3 Foreign currency translation 0.1 0.1 Balance at June 30, 2026 $ 132.7 $ 137.7 $ 270.4 Other Intangible Assets The gross carrying value and accumulated amortization for each major class of intangible assets are as follows: June 30, 2026 December 31, 2025 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Trademarks $ 15.2 $ 3.3 $ 15.2 $ 2.8 Customer relationships 118.4 45.7 118.4 39.5 Developed technology 26.3 10.1 26.3 8.8 Other 0.8 0.5 0.8 0.5 Total 160.7 59.6 160.7 51.6 Unamortized intangible assets: Trademarks 32.0 32.0 Total intangible assets, net $ 133.1 $ 141.1 Amortization expense totaled $4.0 million and $4.1 million for the three months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026 and 2025 amortization expense totaled $8.0 million and $8.1 million, respectively. Amortization expense for the next five years, based on current definite-lived intangible balances, is estimated to be as follows: (in millions) Q3-Q4 2026 $ 8.0 2027 15.9 2028 15.2 2029 12.8 2030 11.7 2031 and thereafter 37.5 Total $ 101.1 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"11. Income Taxes Income taxes for the interim periods presented have been included in the accompanying Consolidated Financial Statements on the basis of an estimated annual effective tax rate (""ETR""). The determination of the consolidated provision for income taxes requires management to make certain judgments and estimates. Changes in the estimated level of annual pre-tax earnings or loss, tax laws, and changes resulting from tax audits can affect the overall ETR, which impacts the level of income tax expense or benefit and net income or loss. Judgments and estimates related to the Companys projections and assumptions are inherently uncertain and therefore, actual results could differ materially from projections. The Company's ETR from continuing operations for the three and six months ended June 30, 2026 was 18.6% (inclusive of discrete items totaling $0.9 million of tax benefit) and 11.6% (inclusive of discrete items totaling $4.7 million of tax benefit), respectively. The discrete items impacting the tax benefit for the three and six months ended June 30, 2026 were primarily attributable to stock-based compensation. Absent the discrete items, the ETR from continuing operations for the three and six months ended June 30, 2026 was 22.6% and 25.6%, respectively. The Company's ETR from continuing operations for the three and six months ended June 30, 2025 was 31.0% (inclusive of discrete items totaling $0.1 million of tax expense) and 38.8% (inclusive of discrete items tot …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"8. Restructuring and Related Activities Restructuring and related activities are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions, and other measures to further optimize operations. The Company recorded restructuring charges of $0.2 million and $0.4 million during the three and six months ended June 30, 2026, respectively, primarily related to headcount reductions within the Precision Devices segment. The Company recorded charges of $0.1 million and $ 0.2 million within Gross profit for the three and six months ended June 30, 2026, respectively, and $0.1 million and $ 0.2 million within Operating expenses for the three and six months ended June 30, 2026, respectively. The Company recorded restructuring charges of $2.9 million during the six months ended June 30, 2025, related to headcount reductions across the Company to rightsize operating expenses subsequent to the sale of the CMM business. The Company recorded charges of $ 0.5 million within Gross profit and $ 2.4 million within Operating expenses for six months ended June 30, 2025. The following table details restructuring charges incurred by reportable segment for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Precision Devices $ 0.2 $ $ 0.6 $ 1.4 MedTech & Specialty Audio 0.3 Corporate (0.2) 1.2 Total $ 0.2 $ $ 0.4 $ 2.9 The following table details the Compan …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

15. Segment Information The Company's two reportable segments are Precision Devices and MedTech & Specialty Audio. Information regarding the Companys reportable segments is as follows : Three Months Ended June 30, 2026 (in millions) Precision Devices MedTech & Specialty Audio Total Revenues $ 98.3 $ 68.5 $ 166.8 Adjusted cost of goods sold 58.9 32.1 91.0 Adjusted research and development expenses 4.6 4.8 9.4 Adjusted selling and administrative expenses 14.4 4.1 18.5 Other segment items (1) 0.1 (0.1) Segment adjusted earnings before interest and income taxes $ 20.3 $ 27.6 $ 47.9 Less: Corporate expenses 11.8 Stock-based compensation expense 6.2 Intangibles amortization expense 4.0 Interest expense, net 1.7 Production transfer costs 0.8 Restructuring charges 0.2 Other (2) 0.9 Plus: Transition services credit 0.3 Earnings before income taxes and discontinued operations $ 22.6 (1) Other segment items primarily include foreign currency exchange gains and losses and other non-operating income and expense. (2) Other expenses include certain foreign currency exchange rate adjustments. Three Months Ended June 30, 2025 (in millions) Precision Devices MedTech & Specialty Audio Total Revenues $ 78.5 $ 67.4 $ 145.9 Adjusted cost of goods sold 48.1 33.3 81.4 Adjusted research and development expenses 4.0 4.6 8.6 Adjusted selling and administrative expenses 12.3 3.5 15.8 Other segment items (1) 0.2 (0.1) 0.1 Segment adjusted earnings before interest and income taxes $ 13.9 $ 26. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing