Financial Analysis

2. Acquisition Glatfelter The Transaction combined GLTs sustainable solutions and product portfolio with Treasures proprietary technologies and global scale. The results of GLT have been included in the consolidated results of the Company since the Closing Date. The GLT acquisition has been accounted for under the purchase method of accounting and accordingly, the purchase price has been allocated to the identifiable assets and liabilities based on their fair value at the Closing Date. The Company recorded measurement period adjustments which included a $48 million decrease in the fair value of fixed assets offset by a $45 million decrease in other long-term liabilities, related primarily to deferred tax liabilities, resulting in a net $27 million increase to goodwill. For the year ended September 27, 2025, the Company recognized a reduction of depreciation and amortization expense of $21 million resulting from revised fair values of fixed assets and intangible assets. The Company has recognized goodwill on this Transaction primarily as a result of expected cost synergies and expects goodwill not to be deductible for tax purposes. The following table summarizes the final purchase price allocation: Fair value of GLT common stock concurrent with closing $ 74 Identifiable assets acquired and liabilities assumed Cash 37 Working capital (a) 247 Property, plant and equipment 589 Identifiable intangible assets 51 Other assets 69 Other long-term liabilities (86 ) Debt (869 ) Goodwill …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

5. Commitments, Leases and Contingencies The Company has various purchase commitments for raw materials, supplies and property and equipment incidental to the ordinary conduct of business. Leases The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. Finance leases are not material for all periods presented. Supplemental lease information is as follows: Leases Classification 2025 2024 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 62 $ 49 Current operating lease liabilities Other current liabilities 18 11 Noncurrent operating lease liabilities Operating lease liabilities 45 39 Lease Type Cash Flow Classification Lease Expense Category 2025 2024 Operating leases Operating cash flows Lease cost $ 25 $ 15 2025 2024 Weighted-average remaining lease term - operating leases 5.6 years 6.5 years Weighted-average discount rate - operating leases 4.5 % 3.5 % Right-of-use assets obtained in exchange for new operating lease liabilities were $24 million for fiscal 2025. Litigation The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Companys legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its Consolidated and Combined Balance Sheet, Statements of Operations, or Cash Flows. Environment …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

4. Financial Instruments and Fair Value Measurements In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. The Company may use derivative financial instruments to help manage market risk and reduce the exposure to fluctuations in foreign currencies. These financial instruments are not used for trading or other speculative purposes. Cross-Currency Swaps The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. During fiscal 2025 , the Company received net proceeds of $22 million related to the settlement of existing cross-currency rate swaps, with the offset being recorded in Accumulated other comprehensive loss. Following the settlement, the Company entered into a 250 million and a 425 million cross-currency swap, maturing November 2027 and November 2029 respectively. The swaps are designated as a hedge of the Companys foreign currency investment in foreign subsidiaries. The loss on net investment hedges, net of tax, recorded in accumulated other comprehensive loss for the year ended September 27, 2025 was $84 million. When valuing cross-currency swaps the Company utilizes Level 2 inputs (substantially observable). The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Balances on a gross basis are as follows: Derivative Instruments Hedge Designati …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

6. Income Taxes The Company is being taxed at the U.S. corporate level as a C-Corporation and has provided for U.S. Federal, State and foreign income taxes. Significant components of income tax expense for the fiscal years ended are as follows: 2025 2024 2023 Current U.S. Federal $ 3 $ 8 $ 12 State 1 1 1 Non-U.S. 16 19 30 Total current 20 28 43 Deferred: U.S. Federal (30 ) (4 ) (5 ) State (1 ) (1 ) (2 ) Non-U.S. 4 (4 ) (2 ) Total deferred (27 ) (9 ) (9 ) Expense (benefit) for income taxes $ (7 ) $ 19 $ 34 U.S. income before income taxes was $ (186) million, $ 18 million, and $ 15 million for fiscal years 2025, 2024, and 2023, respectively. Non-U.S. income before income taxes was $ 20 million, $ (153) million, and $ 57 million for fiscal years 2025, 2024, and 2023, respectively. The Company paid cash taxes of $ 22 million, $ 9 million, and $ 29 million in fiscal years 2025, 2024, and 2023, respectively. The reconciliation between U.S. Federal income tax expense at the statutory rate and the Companys expense for income taxes for fiscal years ended are as follows: 2025 2024 2023 U.S. Federal income tax expense (benefit) at the statutory rate $ (35 ) $ (28 ) $ 15 Adjustments to reconcile to the income tax provision: U.S. state income tax expense (3 ) Federal and state credits (1 ) (1 ) (1 ) Share-based compensation 4 Withholding taxes (1 ) 2 6 Changes in valuation allowance 31 11 5 Foreign income taxed in the U.S. 2 1 Brazil ICMS rate reduction (4 ) (6 ) (2 ) Foreign operations, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

3. Long-Term Debt Long-term debt consists of the following: Facility Maturity Date 2025 2024 Revolving credit facility November 2029 $ $ Term loan November 2031 731 7.25% First Priority Senior Secured Notes November 2031 800 4.75% First Priority Senior Secured Notes October 2029 500 Debt discounts, deferred fees and other (79 ) Total long-term debt $ 1,952 $ As part of the Transaction, the Company consummated a $785 million Term Loan due 2031 (the Term Loan), an $800 million issuance of 7.25 % First Priority Senior Secured Notes due 2031 (the 7.25% Notes), and a $350 million revolving credit facility (the Revolving Credit Facility). The proceeds from the Term Loan and 7.25% Notes were used to retire a portion of GLT outstanding debt and fund a cash distribution to Berry. The margin for the Term Loan is 4.25% per annum plus SOFR , which was approximately 4.16%. Despite not having financial maintenance covenants on our Term Loan and secured notes, these agreements do contain certain negative covenants. The failure to comply with these negative covenants could restrict our ability to incur additional indebtedness, affect acquisitions, enter into certain significant business combinations, make distributions or redeem indebtedness. We are in compliance with all covenants as of September 27, 2025. Debt discounts, deferred financing fees and the purchase price adjustment related to the retained GLT 4.75 % First Priority Senior Secured Notes are presented net of Long-term debt, less …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements In 2023, the Financial Accounting Standards Board (""FASB"") issued guidance with the goal of providing more information about reportable segments, including disaggregated expense information. The Company adopted the guidance in fiscal 2025 which did not result in a material change to our Consolidated and Combined Financial Statements. In 2023, the FASB issued guidance with the goal of providing more information in the income tax reconciliation table and regarding income taxes paid. This Accounting Standard Update (""ASU"") is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. The Company is currently evaluating the impact of adopting this guidance. In 2024, the FASB issued guidance with the goal of providing more expense information for certain categories of expenses that are included in line items on the face of the statements of operations. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027, and may be adopted on a prospective or retrospective basis and allows for early adoption. The Company is currently evaluating the impact of adopting this guidance."

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7. Retirement Plans The Company has employee benefit plans, all of which are frozen to new participants and existing participants from accruing additional benefits and are unfunded. The following table summarizes the change in the benefit plans for the year ended September 27, 2025 and the projected benefit obligation as of September 27, 2025. Pension Benefits Change in Benefit Obligation: Beginning of period $ Acquisition 27 Interest cost 1 Benefits paid (2 ) Effect of currency rate changes 1 End of period $ 27 The weighted-average discount rate used in determining the projected benefit obligation at the measurement date for the year was 5.11%. As of September 27, 2025, future benefits expected to be paid for the defined-benefit plans are as follows: Fiscal year Pension Benefits 2026 $ 2 2027 2 2028 2 2029 2 2030 2 2031 through 2035 9 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

9. Restructuring and Other Activities In the current fiscal year, the Company announced cost savings initiatives including plant rationalizations in all segments as part of the Project CORE restructuring plan. The project is expected to be carried out over the next two years, with the operations savings intended to counter general economic softness. The table below sets forth the significant components of the Restructuring and other activities, including supply chain financing activity charges recognized for the periods presented, by reportable segment: 2025 2024 2023 Americas $ 51 $ 14 $ 17 Rest of World 38 16 7 Consolidated $ 89 $ 30 $ 24 The table below sets forth the activity with respect to the Restructuring and other activities accrual at September 27, 2025: Restructuring Employee Severance Facility Exit Non-Cash Transaction and Benefits Costs Charges and Other (a) Total Balance as of fiscal 2022 $ $ $ $ 4 $ 4 Charges 10 1 13 24 Cash (10 ) (1 ) (17 ) (28 ) Balance as of fiscal 2023 $ $ $ $ $ Charges 13 3 3 11 30 Non-cash items (3 ) (3 ) Cash (5 ) (3 ) (11 ) (19 ) Balance as of fiscal 2024 $ 8 $ $ $ $ 8 Charges 26 2 5 56 89 Non-cash items (5 ) (5 ) Cash payments (21 ) (2 ) (54 ) (77 ) Balance as of fiscal 2025 $ 13 $ $ $ 2 $ 15 (a) Includes $19 million of Transaction related compensation Since 2023, cumulative costs attributed to restructuring programs total $63 million. …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"11. Segment and Geographic Data The Companys operations are organized into two operating and reportable segments: Americas and Rest of World. The structure is designed to align us with our customers, provide improved service, drive future growth, and to facilitate synergy realization. Adjusted EBITDA is the primary measure of profit (loss) used by the chief operating decision maker (""CODM""), our CEO, to evaluate the performance of and allocate resources among our reportable segments. The Company defines Adjusted EBITDA as operating income adjusted to eliminate the impact of certain items that the Company does not consider indicative of its ongoing operating performance. The Company's management, including the CODM, uses Adjusted EBITDA to evaluate segment performance and allocate resources. The accounting policies of the reportable segments are the same as those in the consolidated financial statements. The Company's CODM uses consolidated expense information in the evaluation of segment performance and to allocate resources and is not regularly provided disaggregated expense information for each of the reportable segments. Selected information by reportable segment is presented in the following tables: 2025 2024 2023 Net Sales Americas $ 1,833 $ 1,493 $ 1,531 Rest of World 1,371 694 744 Total net sales $ 3,204 $ 2,187 $ 2,275 Segment operating expenses (5) Americas $ 1,592 $ 1,270 $ 1,285 Rest of World 1,258 635 678 Total segment operating expenses $ 2,850 $ 1,905 $ 1,963 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"10. Equity Equity Incentive Plans In the current fiscal year, the Company initiated shareholder-approved stock plans under which restricted stock unit (""RSUs"") and performance share units (""PSUs"") have been granted to employees at the fair value of the Company's stock on the date of grant. RSUs generally vest ratably over a service period of three years. PSUs generally vest at the end of a performance period of three years. Compensation cost is recorded based upon the fair value of the shares at the original grant date. The fair value of the PSUs are estimated using a Monte Carlo simulation approach. The Company had unrecognized compensation expense of $16 million on awards as of fiscal year end. Information related to the equity incentive plans as of the current fiscal year ended is as follows: 2025 Number of Shares Weighted Average (in thousands) Grant Price Awards granted 1,636 $ 20.16 Awards exercised (248 ) 21.05 Awards forfeited or cancelled (29 ) 20.19 Awards outstanding, end of period 1,359 20 The Company had equity incentive shares available for grant of 5 million as of September 27, 2025."

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9. Contingencies and Commitments Litigation The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Companys legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its Consolidated Balance Sheet, Consolidated and Combined Statements of Operations, or Cash Flows. Environmental Claims Over the next 29 years, we are primarily responsible for the reimbursement of government oversight costs associated with certain environmental claims regarding the Fox River located in Wisconsin. At December 27, 2025, the outstanding balance of the environmental liability and corresponding escrow asset was $17 million and $9 million, respectively. Tax Claims As part of a previous acquisition, the Company acquired a liability related to certain tax claims. Depending on the resolution of the tax claim, the settlement will range between $40 million and $58 million as of December 27, 2025 with an eventual payment to the Brazilian government and/or the selling stockholders of the previous acquisition. The Company has recorded an estimated tax liability on the Consolidated Balance Sheets in Other long-term liabilities as the settlement of existing and potential claims is expected to be greater than one year. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

6. Financial Instruments and Fair Value Measurements In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. The Company may use derivative financial instruments to help manage market risk and reduce the exposure to fluctuations in foreign currencies and interest rates. These financial instruments are not used for trading or other speculative purposes. Cross-Currency Swaps The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. T he swap agreements mature November 2027 (250 million) and November 2029 (425 million). The swaps are designated as a hedge of the Companys foreign currency investment in foreign subsidiaries. The activity on net investment hedges, net of tax, recorded in Accumulated other comprehensive loss for the quarter ended December 27, 2025 and December 28, 2024 was $(2) mill ion and $8 million respectively. When valuing cross-currency swaps, the Company utilizes Level 2 inputs (substantially observable). The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Balances on a gross basis are as follows: Derivative Instruments Hedge Designation Balance Sheet Location December 27, 2025 September 27, 2025 Cross-currency swaps Designated Other long-term liabilities $ (102 ) $ (99 ) The effect of the Companys derivative financial instruments …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

7. Income Taxes The year-to-date effective income tax rate was unfavorably impacted by the jurisdictional mix of pre-tax results among the Company and its subsidiaries and losses, which generate no tax benefit in domestic and certain foreign jurisdictions. Foreign income taxed in the U.S., as well as certain changes in applicable withholding taxes, also unfavorably influenced the effective tax rate.

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4. Leases The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. Supplemental lease information is as follows: Leases Classification December 27, 2025 September 27, 2025 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 60 $ 62 Current operating lease liabilities Other current liabilities 18 18 Noncurrent operating lease liabilities Operating lease liabilities 44 45

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5. Long-Term Debt Long-term debt consists of the following: Facility Maturity Date December 27, 2025 September 27, 2025 Term loan November 2031 $ 706 $ 731 Revolving credit facility November 2029 4.75% First Priority Senior Secured Notes October 2029 500 500 7.25% First Priority Senior Secured Notes November 2031 798 800 Debt discounts, deferred fees and other (73 ) (79 ) Total long-term debt $ 1,931 $ 1,952 Despite not having financial maintenance covenants on our Term Loan and secured notes, these agreements do contain certain negative covenants. The failure to comply with these negative covenants could restrict our ability to incur additional indebtedness, effect acquisitions, enter into certain significant business combinations, make distributions or redeem indebtedness. We are in compliance with all covenants as of December 27, 2025. …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements In 2023, the Financial Accounting Standards Board (""FASB"") issued guidance with the goal of providing more information in the income tax reconciliation table and regarding income taxes paid. This Accounting Standard Update (""ASU"") is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. The Company is currently evaluating the impact of adopting this guidance. In 2024, the FASB issued guidance with the goal of providing more expense information for certain categories of expenses that are included in line items on the face of the statements of operations. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027, and may be adopted on a prospective or retrospective basis and allows for early adoption. The Company is currently evaluating the impact of adopting this guidance."

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3. Restructuring and Other Activities During fiscal year 2025, the Company announced cost savings initiatives including plant rationalizations in all segments as part of the Project CORE restructuring plan. The project is expected to be carried out over the next two fiscal years, with the operations savings intended to counter general economic softness. The table below sets forth the significant components of the Restructuring and other activities, including supply chain financings activity charges recognized for the periods presented, by reportable segment: Quarterly Period Ended December 27, 2025 December 28, 2024 Americas $ 14 $ 20 Rest of World 8 12 Consolidated $ 22 $ 32 The table below sets forth the activity with respect to the Restructuring and other activities accrual at December 27, 2025: Restructuring Employee Severance Facility Exit Non-Cash Integration and Benefits Costs Charges and Other Total Balance at September 27, 2025 $ 13 $ $ $ 2 $ 15 Charges 8 1 3 10 22 Non-cash items (3 ) (3 ) Cash payments (10 ) (1 ) (12 ) (23 ) Balance at December 27, 2025 $ 11 $ $ $ $ 11 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"8. Segment and Geographic Data The Companys operations are organized into two operating and reportable segments: Americas and Rest of World. The structure is designed to align us with our customers, provide improved service, drive future growth, and to facilitate synergy realization. Adjusted EBITDA is the primary measure of profit (loss) used by the chief operating decision maker (""CODM""), our CEO, to evaluate the performance of and allocate resources among our reportable segments. The Company defines Adjusted EBITDA as operating income adjusted to eliminate the impact of certain items that the Company does not consider indicative of its ongoing operating performance. The Company's management, including the CODM, uses Adjusted EBITDA to evaluate segment performance and allocate resources. The accounting policies of the reportable segments are the same as those in the Consolidated and Combined Financial Statements. The Company's CODM uses consolidated expense information in the evaluation of segment performance and to allocate resources and is not regularly provided disaggregated expense information for each of the reportable segments. Selected information by reportable segment is presented in the following tables: Quarterly Period Ended December 27, 2025 December 28, 2024 Net Sales Americas $ 440 $ 420 Rest of World 352 282 Total net sales $ 792 $ 702 Segment operating expenses (4) Americas $ 382 $ 364 Rest of World 317 254 Total segment operating expenses $ 699 $ 618 Adj …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing