For quantitative and qualitative disclosures about market risk affecting us, refer to the section under the heading “Part II. Item 7A. Quantitative and Qualitative Disclosure About Market Risk” of our 2025 Annual Report. As of the date of this Quarterly Report on Form 10-Q, there have been no material changes to the market risks described in our 2025 Annual Report, except for the impact of foreign exchange rates, as discussed below. Foreign Currency Exchange Impacts. Our foreign currency exchange impacts are comprised of three components: 1) local currency revenues and expenses; 2) the impact of foreign currency exchange hedge contracts; and 3) intercompany and monetary balances of our subsidiaries that are denominated in a currency that is different from the functional currency used by each subsidiary. Approximately 23% of our consolidated revenue was derived from products manufactured or sourced in U.S. dollars and sold internationally in local currencies for both the three and six months ended June 30, 2026, compared to approximately 22% for both the three and six months ended June 30, 2025. Strengthening of the rate of exchange for the U.S. dollar relative to other currencies has a negative impact on our revenues derived in currencies other than the U.S. dollar and on profits of products manufactured or purchased in U.S. dollars and sold internationally, and a weakening of the U.S. dollar has the opposite effects. Similarly, to the extent that the U.S. dollar is stronger in current or future periods relative to the exchange rates in effect in the corresponding prior periods, our growth rate will be negatively affected. The impacts of foreign currency denominated costs and expenses and foreign currency denominated supply contracts partially offset this exposure. We also enter into foreign currency exchange contracts, designated as hedges, to manage the exchange risk associated with intercompany inventory purchases and sales that are denominated in certain currencies other than the U.S. dollar. The following table presents the estimated foreign currency exchange impacts on our revenues, operating profit, and diluted earnings per share for the current period compared to the respective prior-year period: For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except per share amounts) 2026 2025 2026 2025 Revenue increase (decrease) $ 8,486 $ 12,454 $ 39,657 $ 201 Operating profit increase (decrease), excluding hedge activity and exchange impacts on settlement of foreign currency denominated transactions $ 4,985 $ 5,490 $ 22,554 $ (1,795) Hedge gains (losses) - current period (434) (1,180) (284) 2,565 Foreign currency transactions gains (losses) - current period (246) (568) (690) (1,239) Operating profit increase (decrease) - current period 4,305 3,742 21,580 (469) Hedge (gains) losses - comparable period in the prior year 1,180 (1,721) (2,565) (2,531) Foreign currency transaction (gains) losses - comparable period in the prior year 568 1,001 1,239 1,934 Operating profit increase (decrease) - compared to prior period $ 6,053 $ 3,022 $ 20,254 $ (1,066) Diluted earnings per share increase (decrease) - compared to prior period (1) $ 0.06 $ 0.03 $ 0.20 $ (0.01) (1) The impacts on diluted earnings per share presented may not recalculate due to rounding. 49 At our current foreign exchange rate assumptions, we anticipate year-over-year changes for the remainder of the year will decrease our revenues, and increase operating profit and diluted earnings per share by approximately $13 million, $2 million and $0.02 per share, respectively. These favorable currency impacts to our operating profit and diluted earnings per share include net year-over-year impacts of foreign currency hedging activity, which is expected to increase our total operating profit by approximately $7 million and $0.07 per share for the remainder of the year ending December 31, 2026. These estimates assume that the value of the U.S. dollar will reflect the euro at $1.14, the British pound at $1.32, the Canadian dollar at $0.70, and the Australian dollar at $0.69; and the Japanese yen at ¥162, the Chinese renminbi at RMB 6.80, and the Brazilian real at R$5.20 relative to the U.S. dollar for the remainder of 2026. The actual impact of changes in the value of the U.S. dollar against foreign currencies in which we transact may materially differ from our expectations. The foreign currency exchange impacts on our projected revenues and expenses for the remainder of 2026 will be different from our estimates if actual foreign exchange rates are different from our assumptions. Excluding the impact of intercompany and trade balances denominated in currencies other than the functional subsidiary currencies, we project a 1% strengthening of the U.S. dollar would reduce revenue by approximately $8 million and operating income by approximately $3 million, net of hedge positions. Interest Rate Risk. We entered into an interest rate swap to reduce the effect of variable interest obligations of our Term Loan. Beginning in November 2025, the variable interest rate associated with our $250.0 million Term Loan became effectively fixed at 3.4%, plus the applicable credit spread, through November 12, 2028. Borrowings outstanding under our Credit Facility at June 30, 2026, were $519.0 million. We have designated the interest rate swap as a cash flow hedge. For more information regarding our interest rate swap, refer to “Part I, Item 1. Financial Statements, Note 19. Hedging Instruments.” Effects of Inflation. We expect to continue to face higher costs for labor, commodities, energy, and transportation, as well as increased prices from suppliers. We may not be able to offset these higher costs through productivity initiatives and price increases, which may materially and adversely affect our business, results of operations, and financial condition. Any price increases we may impose may lead to declines in sales volume or loss of business, if competitors do not similarly adjust their prices, or customers refuse to purchase at the higher prices.