General Overview We are a leading manufacturer of copper, brass, and aluminum products. The range of products we manufacture is broad: copper tube and fittings; line sets; brass rod, bar, and shapes; aluminum and brass forgings; aluminum impact extrusions; refrigeration valves and fittings; pressure vessels; steel nipples; insulated flexible duct systems; and high-quality wire and cable solutions. We also resell brass and plastic plumbing valves, plastic fittings, malleable iron fittings, faucets, and plumbing specialty products. Our operations are located throughout the United States and in Canada, Mexico, Great Britain, South Korea, the Middle East, and China. Each of our reportable segments is composed of certain operating segments that are aggregated primarily by the nature of products offered as follows: •Piping Systems: The Piping Systems segment is composed of Domestic Piping Systems Group, Great Lakes Copper, European Operations, Trading Group, Jungwoo-Mueller (our South Korean joint venture), and Mueller Middle East (our Bahraini joint venture). The Domestic Piping Systems Group manufactures and distributes copper tube, fittings, and line sets. These products are manufactured in the U.S., sold in the U.S., and exported to markets worldwide. Great Lakes Copper manufactures copper tube and line sets in Canada and sells the products primarily in the U.S. and Canada. European Operations manufactures copper tube in the United Kingdom, which is sold throughout Europe. The Trading Group manufactures pipe nipples and sources products for import distribution in North America. 30 Jungwoo-Mueller manufactures copper-based joining products that are sold worldwide. Mueller Middle East manufactures copper tube and serves markets in the Middle East and Northern Africa. The Piping Systems segment sells products to wholesalers in the plumbing and refrigeration markets, distributors to the manufactured housing and recreational vehicle industries, building material retailers, and air-conditioning original equipment manufacturers (OEMs). •Industrial Metals: The Industrial Metals segment is composed of Brass Rod, Impacts & Micro Gauge, Brass Value-Added Products, Precision Tube, and Electrical Group. The segment manufactures and sells brass rod, bar, and shapes; aluminum and brass forgings; aluminum impact extrusions; specialty copper, copper alloy, and aluminum tube; and high-quality wire and cable solutions. The segment manufactures and sells its products primarily to domestic OEMs and distributors, and utilities in the industrial, transportation, construction, heating, ventilation, and air-conditioning, plumbing, refrigeration, energy, telecommunication, and electrical transmission and distribution markets. •Climate: The Climate segment is composed of Refrigeration Products, Westermeyer, Turbotec, Flex Duct, and Linesets, Inc. The segment manufactures and sells refrigeration valves and fittings, high pressure components, coaxial heat exchangers, insulated HVAC flexible duct systems, and line sets. The segment sells its products primarily to the heating, ventilation, air-conditioning, and refrigeration markets in the U.S. New housing starts and commercial construction are important determinants of our sales to the heating, ventilation, and air-conditioning, refrigeration, and plumbing markets because the principal end use of a significant portion of our products is in the construction of single and multi-family housing and commercial buildings. Repairs and remodeling projects are also important drivers of underlying demand for these products. In addition, our products are used in various transportation, automotive, and industrial applications. According to the U.S. Census Bureau, the June 2026 seasonally adjusted annual rate of new housing starts was 1.43 million, compared to the June 2025 rate of 1.38 million. The average 30-year fixed mortgage rate was 6.28 percent for the first half of 2026 and 6.60 percent for the year ended December 2025. The private non-residential construction sector includes offices, industrial, health care, and retail projects. According to the U.S. Census Bureau, the seasonally adjusted annual value of private nonresidential construction put in place was $738.7 billion in May 2026 compared to the May 2025 rate of $791.0 billion. Profitability of certain of our product lines depends upon the “spreads” between the cost of raw material and the selling prices of our products. The open market prices for copper cathode and copper and brass scrap, for example, influence the selling price of copper tube and brass rod, two principal products manufactured by the Company. We attempt to minimize the effects on profitability from fluctuations in material costs by passing through these costs to our customers; however, margins of our businesses that account for inventory on a FIFO basis may be impacted in periods of significant fluctuations in material costs. Our earnings and cash flow are dependent upon these spreads that fluctuate based upon market conditions. Earnings and profitability are also impacted by unit volumes that are subject to market trends, such as substitute products, imports, technologies, and market share. We intensively manage our pricing structure while attempting to maximize profitability. From time-to-time, this practice results in lost sales opportunities and lower volume. For plumbing systems, plastics are the primary substitute product; these products represent an increasing share of consumption. For certain air-conditioning and refrigeration applications, aluminum-based systems are the primary substitution threat. We cannot predict the acceptance or the rate of switching that may occur. U.S. consumption of copper tube and brass rod is still predominantly supplied by U.S. manufacturers. In recent years, brass rod consumption in the U.S. has declined due to the outsourcing of many manufactured products to offshore regions. 31 Results of Operations Consolidated Results The following table compares summary operating results for the second quarter and first half of 2026 and 2025: For the Quarter Ended Percent Change For the Six Months Ended Percent Change (In thousands) June 27, 2026 June 28, 2025 2026 vs. 2025 June 27, 2026 June 28, 2025 2026 vs. 2025 Net sales $ 1,427,923 $ 1,138,173 25.5 % $ 2,620,928 $ 2,138,338 22.6 % Operating income 309,974 304,168 1.9 622,202 510,430 21.9 Net income attributable to Mueller Industries, Inc. 249,655 245,924 1.5 488,673 403,356 21.2 The increase in net sales during the second quarter of 2026 was primarily due to (i) higher net selling prices of $184.6 million in our core product lines, primarily copper tube, brass rod, and high-quality wire and cable, related to the rise in raw material costs, (ii) sales of $62.5 million recorded by Bison, acquired on March 30, 2026, (iii) an increase in sales of $36.0 million in our non-core product lines, and (iv) higher unit sales volume of $17.4 million in our core product lines, primarily brass rod and high-quality wire and cable. These increases were partially offset by a decrease in sales of $10.7 million as a result of the sale of Sherwood during the first quarter of 2026. The increase in net sales during the first half of 2026 was primarily due to (i) higher net selling prices of $400.7 million in our core product lines, (ii) sales of $62.5 million recorded by Bison, and (iii) an increase in sales of $52.7 million in our non-core product lines. These increases were partially offset by (i) a decrease in sales of $20.3 million as a result of the sale of Sherwood and (ii) lower unit sales volume of $13.0 million in our core product lines. Net selling prices generally fluctuate with changes in raw material costs. Changes in raw material costs are generally passed through to customers by adjustments to selling prices. The following graph shows the Comex average copper price per pound by quarter for the current and prior fiscal years: 32 The following tables compare cost of goods sold and operating expenses as dollar amounts and as a percent of net sales for the second quarter and first half of 2026 and 2025: For the Quarter Ended For the Six Months Ended (In thousands) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Cost of goods sold $ 1,032,577 $ 785,194 $ 1,867,138 $ 1,513,379 Depreciation and amortization 17,335 17,905 33,987 35,028 Selling, general, and administrative expense 67,850 67,521 134,635 130,581 Loss (gain) on disposal of assets, net 187 (337) 1,720 (14,802) Gain on sale of business — — (41,407) — Asset impairments — — 2,653 — Gain on insurance proceeds — (36,278) — (36,278) Operating expenses $ 1,117,949 $ 834,005 $ 1,998,726 $ 1,627,908 For the Quarter Ended For the Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Cost of goods sold 72.3 % 69.0 % 71.2 % 70.8 % Depreciation and amortization 1.2 1.6 1.3 1.6 Selling, general, and administrative expense 4.8 5.9 5.1 6.1 Loss (gain) on disposal of assets, net — — 0.1 (0.7) Gain on sale of business — — (1.6) — Asset impairments — — 0.1 — Gain on insurance proceeds — (3.2) — (1.7) Operating expenses 78.3 % 73.3 % 76.2 % 76.1 % Q2 2026 compared to Q2 2025 Cost of goods sold increased in the second quarter of 2026 primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 27.7 percent compared with 31.0 percent in the prior year quarter. Depreciation and amortization was consistent with the second quarter of 2025. Selling, general, and administrative expense increased slightly in the second quarter of 2026 primarily as a result of (i) higher employment costs, including incentive compensation, of $1.6 million, (ii) higher legal and professional fees of $1.5 million, and (iii) incremental expenses of $1.4 million associated with Bison. These increases were largely offset by (i) lower product-related costs of $1.4 million, (ii) lower foreign currency transaction losses of $1.2 million, (iii) the absence of $0.5 million of expenses associated with Sherwood, and (iv) lower taxes and insurance of $0.4 million. In addition, during the second quarter of 2025, we recognized a gain of $36.3 million for the excess of insurance proceeds received over the losses incurred related to the March 2023 tornado at our Covington, Tennessee manufacturing operation. Interest income was higher in the second quarter of 2026 primarily as a result of higher interest rates. During the second quarters of 2026 and 2025, we recognized unrealized gains on short-term investments of $6.5 million and $13.2 million, respectively. Other expense, net, was consistent with the second quarter of 2025. Our effective tax rate for the second quarter of 2026 was 25 percent compared with 24 percent for the same period last year. The primary items impacting the effective tax rate were (i) increases related to the provision for state income taxes, net of the federal benefit, of $10.9 million and (ii) other items of $3.5 million. For the second quarter of 2025, the difference between the effective tax rate and the amount computed using the U.S. federal statutory rate was primarily attributable to the provision for state income taxes, net of the federal benefit, of $10.1 million. 33 During the second quarters of 2026 and 2025, we recognized net income of $6.9 million and $2.9 million, respectively, on our investments in unconsolidated affiliates. YTD 2026 compared to YTD 2025 Cost of goods sold increased in the first half of 2026 primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 28.8 percent compared with 29.2 percent in the prior year. Depreciation and amortization decreased slightly in the first half of 2026 primarily as a result of several long-lived assets becoming fully depreciated and long-lived assets sold with Sherwood, partially offset by incremental expenses associated with the acquisition of Bison. Selling, general, and administrative expense increased in the first half of 2026 primarily as a result of (i) higher employment costs, including incentive compensation, of $8.5 million, (ii) higher legal and professional fees of $5.1 million, and (iii) incremental expenses of $1.4 million associated with Bison. These increases were partially offset by (i) lower product-related costs of $6.1 million, (ii) lower foreign currency transaction losses of $1.7 million, (iii) the absence of $1.0 million of expenses associated with Sherwood, (iv) lower taxes and insurance of $0.9 million, (v) lower sales and marketing costs of $0.6 million, and (vi) lower repairs and maintenance of $0.6 million. In addition, during the first half of 2026 we recognized a gain of $41.4 million on the sale of our Sherwood business as well as fixed asset impairment charges on idled equipment of $2.7 million. During the first half of 2025 we recognized a gain of $36.3 million for the excess of insurance proceeds received over the losses incurred related to the March 2023 tornado at our Covington, Tennessee manufacturing operation. Lastly, during the first half of 2026 we recognized net losses on the disposal of assets of $1.7 million, compared to net gains on the disposal of assets of $14.8 million during the first half of 2025. Interest income increased during the first half of 2026 primarily as a result of higher interest rates. During the first half of 2026 and 2025, we recognized unrealized gains on short-term investments of $4.5 million and $8.2 million, respectively. Other expense, net, was slightly higher during the first half of 2026 primarily due to higher environmental remediation expense for our non-operating properties. Our effective tax rate for the first half of 2026 was 25 percent compared with 24 percent for the same period last year. The items impacting the effective tax rate were primarily related to (i) the provision for state income taxes, net of the federal benefit, of $21.6 million and (ii) other adjustments of $5.0 million. For the first half of 2025, the primary item impacting the effective tax rate was an increase related to the provision for state income taxes, net of the federal benefit, of $16.9 million. During the first half of 2026 and 2025, we recognized net income of $7.0 million and $2.4 million, respectively, on our investments in unconsolidated affiliates. Piping Systems Segment The following table compares summary operating results for the second quarter and first half of 2026 and 2025 for the businesses comprising our Piping Systems segment: For the Quarter Ended Percent Change For the Six Months Ended Percent Change (In thousands) June 27, 2026 June 28, 2025 2026 vs. 2025 June 27, 2026 June 28, 2025 2026 vs. 2025 Net sales $ 946,575 $ 743,475 27.3 % $ 1,707,103 $ 1,383,158 23.4 % Operating income 248,346 250,296 (0.8) 465,356 408,460 13.9 The increase in net sales during the second quarter of 2026 was primarily attributable to (i) higher net selling prices in the segment’s core product lines, primarily copper tube, of $125.7 million, (ii) sales of $62.5 million recorded by Bison, and (iii) an increase in sales of $28.1 million in the segment’s non-core product lines. These increases were partially offset by lower unit sales volume of $15.9 million in the segment’s core product lines. Net sales during the first half of 2026 increased primarily as a result of (i) higher net selling prices in the segment’s core product lines of $285.1 million, (ii) sales of $62.5 million recorded by Bison, and (iii) an increase in sales of $43.5 million in the segment’s non-core product lines. These increases were partially offset by lower unit sales volume of $67.5 million in the segment’s core product lines. 34 The following tables compare cost of goods sold and operating expenses as dollar amounts and as a percent of net sales for the second quarter and first half of 2026 and 2025: For the Quarter Ended For the Six Months Ended (In thousands) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Cost of goods sold $ 659,045 $ 490,178 $ 1,161,820 $ 948,330 Depreciation and amortization 6,348 6,071 11,950 11,490 Selling, general, and administrative expense 32,771 34,555 63,734 66,965 Loss (gain) on disposal of assets, net 65 (1,347) 1,590 (15,809) Asset impairments — — 2,653 — Gain on insurance proceeds — (36,278) — (36,278) Operating expenses $ 698,229 $ 493,179 $ 1,241,747 $ 974,698 For the Quarter Ended For the Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Cost of goods sold 69.6 % 65.9 % 68.1 % 68.6 % Depreciation and amortization 0.7 0.8 0.7 0.8 Selling, general, and administrative expense 3.5 4.6 3.7 4.8 Loss (gain) on disposal of assets, net — (0.2) 0.1 (1.1) Asset impairments — — 0.2 — Gain on insurance proceeds — (4.9) — (2.6) Operating expenses 73.8 % 66.2 % 72.8 % 70.5 % The increase in cost of goods sold during the second quarter of 2026 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 30.4 percent compared with 34.1 percent in the prior year quarter. Depreciation and amortization increased slightly during the second quarter of 2026 primarily due to incremental expenses associated with the acquisition of Bison. Selling, general, and administrative expense decreased for the second quarter of 2026 primarily as a result of (i) lower foreign currency transaction losses of $2.5 million, (ii) lower product-related costs of $1.4 million, and (iii) lower sales and marketing costs of $0.4 million. These decreases were partially offset by (i) higher employment costs, including incentive compensation, of $1.5 million and (ii) incremental expenses of $1.4 million associated with Bison. In addition, during the second quarter of 2025 the segment recognized net gains on the disposal of assets of $1.3 million and a gain of $36.3 million for the excess of insurance proceeds received over the losses incurred related to the March 2023 tornado at our Covington, Tennessee manufacturing operation. The increase in cost of goods sold during the first half of 2026 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 31.9 percent compared with 31.4 percent in the prior year. Depreciation and amortization increased slightly in the first half of 2026 as a result of incremental expenses associated with the acquisition of Bison. Selling, general, and administrative expense decreased for the first half of 2026 primarily as a result of (i) lower product-related costs of $6.1 million, (ii) lower foreign currency transaction losses of $2.5 million, (iii) lower sales and marketing costs of $0.8 million, and (iv) lower repairs and maintenance of $0.7 million. These decreases were partially offset by (i) higher employment costs, including incentive compensation, of $4.4 million, (ii) incremental expenses of $1.4 million associated with Bison, and (iii) higher professional fees of $0.7 million. In addition, during the first half of 2026 the segment recognized fixed asset impairment charges on idled equipment of $2.7 million and net losses on the disposal of assets of $1.6 million. During the first half of 2025, the segment recognized net gains on the disposal of assets of $15.8 million and a gain of $36.3 million for the excess of insurance proceeds received over the losses incurred related to the March 2023 tornado at our Covington, Tennessee manufacturing operation. 35 Industrial Metals Segment The following table compares summary operating results for the second quarter and first half of 2026 and 2025 for the businesses comprising our Industrial Metals segment: For the Quarter Ended Percent Change For the Six Months Ended Percent Change (In thousands) June 27, 2026 June 28, 2025 2026 vs. 2025 June 27, 2026 June 28, 2025 2026 vs. 2025 Net sales $ 354,998 $ 270,598 31.2 % $ 676,275 $ 522,511 29.4 % Operating income 42,787 30,610 39.8 87,058 60,694 43.4 The increase in net sales during the second quarter of 2026 was primarily due to (i) higher net selling prices of $58.9 million in the segment’s core product lines, primarily brass rod and high-quality wire and cable, and (ii) higher unit sales volume of $33.3 million in the segment’s core product lines. These increases were slightly offset by a decrease in sales of $10.7 million as a result of the sale of Sherwood. The increase in net sales during the first half of 2026 was primarily due to (i) higher net selling prices of $115.6 million in the segment’s core product lines, (ii) higher unit sales volume of $54.5 million in the segment’s core product lines, and (iii) an increase in sales of $2.6 million in the segment’s non-core product lines. These increases were partially offset by a decrease in sales of $20.3 million as a result of the sale of Sherwood. The following tables compare cost of goods sold and operating expenses as dollar amounts and as a percent of net sales for the second quarter and first half of 2026 and 2025: For the Quarter Ended For the Six Months Ended (In thousands) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Cost of goods sold $ 298,470 $ 225,713 $ 560,712 $ 433,199 Depreciation and amortization 8,183 8,446 16,491 16,802 Selling, general, and administrative expense 5,558 5,832 12,006 11,819 (Gain) loss on disposal of assets, net — (3) 8 (3) Operating expenses $ 312,211 $ 239,988 $ 589,217 $ 461,817 For the Quarter Ended For the Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Cost of goods sold 84.1 % 83.4 % 82.9 % 82.9 % Depreciation and amortization 2.3 3.1 2.4 3.2 Selling, general, and administrative expense 1.6 2.2 1.8 2.3 (Gain) loss on disposal of assets, net — — — — Operating expenses 88.0 % 88.7 % 87.1 % 88.4 % The change in cost of goods sold during the second quarter of 2026 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 15.9 percent compared with 16.6 percent in the prior year quarter. Depreciation and amortization was consistent with the second quarter of 2025. Selling, general, and administrative expense decreased slightly during the second quarter of 2026 primarily due to (i) the absence of $0.5 million of expenses associated with Sherwood and (ii) lower professional fees of $0.2 million. These decreases were partially offset by higher employment costs of $0.5 million. 36 The increase in cost of goods sold during the first half of 2026 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 17.1 percent compared with 17.1 percent in the prior year. Depreciation and amortization decreased during the first half of 2026 primarily as a result of several long-lived assets becoming fully depreciated and long-lived assets sold with Sherwood. Selling, general, and administrative expense increased slightly during the first half of 2026 primarily as a result of (i) higher employment costs of $0.9 million and (ii) higher professional fees of $0.4 million. These increases were largely offset by the absence of $1.0 million of expenses associated with Sherwood. Climate Segment The following table compares summary operating results for the second quarter and first half of 2026 and 2025 for the businesses comprising our Climate segment: For the Quarter Ended Percent Change For the Six Months Ended Percent Change (In thousands) June 27, 2026 June 28, 2025 2026 vs. 2025 June 27, 2026 June 28, 2025 2026 vs. 2025 Net sales $ 144,952 $ 137,515 5.4 % $ 268,717 $ 260,622 3.1 % Operating income 42,583 42,628 (0.1) 75,962 78,252 (2.9) Net sales for the second quarter and first half of 2026 increased primarily as a result of higher demand, particularly for products utilized in commercial construction, and an increase in volume and price in certain product lines. The following tables compare cost of goods sold and operating expenses as dollar amounts and as a percent of net sales for the second quarter and first half of 2026 and 2025: For the Quarter Ended For the Six Months Ended (In thousands) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Cost of goods sold $ 93,192 $ 84,451 $ 174,955 $ 162,966 Depreciation and amortization 1,749 1,726 3,428 3,418 Selling, general and administrative expense 7,306 7,697 14,250 14,976 Loss on disposal of assets, net 122 1,013 122 1,010 Operating expenses $ 102,369 $ 94,887 $ 192,755 $ 182,370 For the Quarter Ended For the Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Cost of goods sold 64.3 % 61.4 % 65.1 % 62.5 % Depreciation and amortization 1.2 1.3 1.3 1.3 Selling, general and administrative expense 5.0 5.6 5.3 5.7 Loss on disposal of assets, net 0.1 0.7 — 0.4 Operating expenses 70.6 % 69.0 % 71.7 % 69.9 % Cost of goods sold increased during the second quarter of 2026 primarily due to the rise in raw material costs. Gross margin as a percentage of sales was 35.7 percent compared with 38.6 percent in the prior year quarter. Depreciation and amortization and selling, general, and administrative expense were consistent with the second quarter of 2025. During the second quarter of 2025, the segment recorded a loss on the disposal of assets of $1.0 million. Cost of goods sold increased during the first half of 2026 primarily due to factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 34.9 percent compared with 37.5 percent in the prior year. Depreciation and 37 amortization was consistent with the first half of 2025. Selling, general, and administrative expense decreased slightly primarily due to lower employment costs of $0.6 million. In addition, during the first half of 2025, the segment recorded a loss on the disposal of assets of $1.0 million. Liquidity and Capital Resources The following table presents selected financial information for the first half of 2026 and 2025: (In thousands) 2026 2025 Increase (decrease) in: Cash, cash equivalents, and restricted cash $ 5,564 $ (32,160) Short-term investments 4,508 34,835 Property, plant, and equipment, net 20,730 17,839 Goodwill and intangible assets, net 104,192 (21,620) Total debt 5,243 (1,020) Working capital, net of cash and current debt 195,091 178,367 Net cash provided by operating activities 292,001 304,161 Net cash used in investing activities (125,833) (33,486) Net cash used in financing activities (154,886) (314,553) Cash Flows from Operating Activities During the six months ended June 27, 2026, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $491.7 million and (ii) an increase in current liabilities of $167.9 million. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $34.0 million and (ii) stock-based compensation expense of $15.8 million. These increases were partially offset by (i) an increase in accounts receivable of $292.2 million, (ii) an increase in inventories of $89.2 million, and (iii) a gain of $41.4 million related to the sale of the Sherwood business. During the six months ended June 28, 2025, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $407.8 million, (ii) an increase in current liabilities of $72.3 million, and (iii) non-capital related insurance proceeds of $12.3 million for the March 2023 tornado in Covington, Tennessee. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $35.0 million and (ii) stock-based compensation expense of $13.9 million. These increases were partially offset by (i) an increase in accounts receivable of $134.5 million, (ii) the gain of $36.3 million related to insurance proceeds for the March 2023 tornado in Covington, Tennessee, (iii) an increase in inventories of $41.2 million, (iv) net gains on the disposal of assets of $14.8 million, and (v) unrealized gains on short-term investments of $8.2 million. Cash Flows from Investing Activities The major components of net cash used in investing activities during the six months ended June 27, 2026 included (i) $138.3 million for the purchase of Bison and (ii) capital expenditures of $38.8 million. These uses were partially offset by proceeds from the sale of the Sherwood business, net of cash sold, of $57.0 million. The major components of net cash used in investing activities during the six months ended June 28, 2025 included (i) capital expenditures of $30.7 million and (ii) the purchase of short-term investments of $26.6 million. These uses were partially offset by proceeds from the sale of properties of $21.1 million. Cash Flows from Financing Activities For the six months ended June 27, 2026, net cash used in financing activities consisted primarily of (i) $76.4 million used to repurchase common stock of the Company, (ii) $76.1 million used for the payment of regular quarterly dividends to stockholders of the Company, and (iii) $5.0 million used for the payment of dividends to noncontrolling interests. 38 For the six months ended June 28, 2025, net cash used in financing activities consisted primarily of (i) $243.6 million used to repurchase common stock of the Company, (ii) $54.4 million used for the payment of regular quarterly dividends to stockholders of the Company, (iii) $12.2 million used for the payment of dividends to noncontrolling interests, and (iv) $4.2 million net cash used to settle stock-based awards. Liquidity and Outlook We believe that cash provided by operations, funds available under the Credit Agreement, and cash on hand will be adequate to meet our liquidity needs, including working capital, capital expenditures, and debt payment obligations. As of June 27, 2026, we had $1.4 billion of cash on hand and $72.5 million available to be drawn under the Credit Agreement. Our current ratio was 4.8 to 1. We have significant environmental remediation obligations which we expect to pay over future years. Cash used for environmental remediation activities was approximately $1.8 million during the first half of 2026. We expect to spend approximately $3.4 million over the next twelve months for ongoing environmental remediation activities. The Company declared a quarterly cash dividend of 17.5 cents per common share during the first and second quarters of 2026 and 12.5 cents per common share during the first and second quarters of 2025, respectively. Payment of dividends in the future is dependent upon our financial condition, cash flows, capital requirements, earnings, and other factors. Long-Term Debt As of June 27, 2026, the Company’s total debt was $5.2 million or 0.1 percent of its total capitalization. The Company’s Credit Agreement provides for an unsecured $100.0 million revolving credit facility, which matures March 27, 2031. There were no borrowings outstanding under the Credit Agreement as of June 27, 2026. The Credit Agreement backed approximately $27.5 million in letters of credit at the end of the second quarter of 2026. Covenants contained in the Company’s financing obligations require, among other things, the maintenance of minimum levels of tangible net worth and the satisfaction of certain minimum financial ratios. As of June 27, 2026, the Company was in compliance with all of its debt covenants. Share Repurchase Program The Board of Directors has extended, until July 2026, the authorization to repurchase up to 80 million shares of the Company’s common stock through open market transactions or through privately negotiated transactions. We may cancel, suspend, or extend the time period for the repurchase of shares at any time. Any repurchases will be funded primarily through existing cash and cash from operations. We may hold any shares repurchased in treasury or use a portion of the repurchased shares for our stock-based compensation plans, as well as for other corporate purposes. From its initial authorization in 1999 through June 27, 2026, the Company has repurchased approximately 39.2 million shares under this authorization. See Part II., Item 2. below for information about the Company’s share repurchases during the quarter ended June 27, 2026. Contractual Cash Obligations There have been no significant changes in our contractual cash obligations reported at December 27, 2025.