The Company is exposed to various market risks including, but not limited to, changes in foreign currency exchange rates, changes in interest rates and price fluctuations of certain material commodities. Market risks for changes in interest rates relate primarily to the Company's debt obligations under the Credit Agreement. Foreign currency exchange risks are attributable to sales to foreign customers and purchases from foreign suppliers not denominated in a location’s functional currency, foreign plant operations, intercompany indebtedness, acquisitions denominated in foreign currencies, intercompany investments and include exposures to the Euro, Mexican Peso, Hungarian Forint, North Macedonian Denar, Ukrainian Hryvnia, Japanese Yen, Chinese Renminbi, Korean Won, Czech Koruna, Vietnamese Dong and Moroccan Dirham. The Company regularly enters into derivative contracts with the objective of managing its financial and operational exposure arising from these risks by offsetting gains and losses on the underlying exposures with gains and losses on the financial instruments used to hedge them. The decision of whether and when to execute derivative financial instruments, along with the duration of the instrument, may vary from period to period depending on market conditions, the relative costs of the instruments and capacity to hedge. The duration is linked to the timing of the underlying exposure, with the connection between the two being regularly monitored. The Company does not enter into derivative financial instruments for speculative or trading purposes. The Company’s designated hedging relationships are formally documented at the inception of the hedge, and hedges must be highly effective in offsetting changes to future cash flows on hedged transactions both at the inception of a hedge and on an ongoing basis to be designated for hedge accounting treatment. For derivative contracts that can be classified as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded to accumulated other comprehensive loss in the consolidated condensed balance sheets. When the underlying hedge transaction is realized, the gain or loss included in accumulated other comprehensive loss is recorded in earnings in the consolidated condensed statements of income on the same line as the hedged item. Cash flows associated with derivatives are reported in net cash provided by operating activities in the Company’s consolidated statements of cash flows. Information related to the fair values of all derivative instruments in the consolidated condensed balance sheet as of June 30, 2026 is set forth in Note 10, “Financial Instruments” in the consolidated condensed financial statements included in this Report. Interest Rate Sensitivity The table below presents principal cash flows and related weighted average interest rates by expected maturity dates for each of the Company’s debt obligations, excluding finance leases. The information is presented in U.S. Dollar equivalents, which is the Company’s reporting currency. Expected Maturity Date 2026 2027 2028 2029 2030 2031 Total Fair Value Liabilities Long-Term Debt: Variable rate $ — $ — $ — $ — $ — $ 260,000 $ 260,000 $ 260,000 Variable interest rate as of June 30, 2026 4.76 % 4.76 % Based on the amounts outstanding as of June 30, 2026, a hypothetical 100 basis point change (increase or decrease) in interest rates would impact annual interest expense by $2.6 million. To hedge the Company's exposure to interest payment fluctuations on a portion of these borrowings, we entered into floating-to-fixed interest rate swap agreements with notional amounts totaling $100.0 million. 38 Table of Contents Exchange Rate Sensitivity The table below provides information about the Company’s foreign currency exchange rate agreements that are sensitive to changes in foreign currency exchange rates. The table presents the notional amounts and weighted average exchange rates by expected maturity dates for each type of foreign currency exchange agreement. These notional amounts generally are used to calculate the payments to be exchanged under the contract. Expected Maturity or Transaction Date Anticipated Transactions and Related Derivatives 2026 2027 2028 Total Fair Value USD Functional Currency Exchange Agreements: (Receive MXN / Pay USD) Total contract amount $ 32,546 $ 63,435 $ 7,756 $ 103,737 $ (351 ) Average contract rate 17.51 17.97 18.37 17.86 The table below presents the potential gain and loss in fair value for the foreign currency derivative contracts from a hypothetical 10% change in quoted currency exchange rates. June 30, 2026 December 31, 2025 Exchange Rate Sensitivity Potential loss in fair value Potential gain in fair value Potential loss in fair value Potential gain in fair value Exchange Agreement:(Receive MXN / Pay USD) $ 9,398 $ 11,486 $ 3,328 $ 4,327