The financial condition, results of operations and cash flows discussed in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" are those of Astec Industries, Inc. and its consolidated subsidiaries, collectively, the "Company," "Astec," "we," "our" or "us." The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and related notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025. The financial position, results of operations, cash flows and other information included herein are not necessarily indicative of the financial position, results of operations and cash flows that may be expected in future periods. Forward-Looking Statements This Quarterly Report on Form 10-Q, particularly the following discussion and analysis of our results of operations, financial condition and liquidity in this "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the United States and global economies. Statements in this Quarterly Report on Form 10-Q that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "forecast," "management is of the opinion," or use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors described under the caption Item 1A. Risk Factors in Part II of this Report, elsewhere herein and in other documents filed by the Company with the Securities and Exchange Commission, including Part I, Item 1A. Risk Factors of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law. Executive Summary Highlights of our financial results for the three months ended June 30, 2026 as compared to the same period of the prior year include the following: •Net sales were $408.1 million, an increase of 23.6% •Gross profit was $106.8 million, an increase of 21.0% •Income from operations was $20.4 million, a decrease of 4.7% •Net income attributable to Astec was $10.5 million, a decrease of 37.1% •Diluted income per share was $0.45, a decrease of 37.5% •Backlog was $601.1 million, an increase of 57.9% Recent Developments and Business Conditions CWMF Acquisition – On January 1, 2026, we completed our acquisition of CWMF, LLC ("CWMF"), a manufacturer of portable and stationary asphalt plant equipment and parts. The acquisition increases production capacity in our Infrastructure Solutions segment. Strategic Transformation Program – Our strategic transformation program includes the ongoing multi-year phased implementation of a standardized ERP system, which is replacing much of our existing disparate core financial systems. To date, we have launched the human capital resources module worldwide and converted the operations of three manufacturing sites along with Corporate. We expect the project to conclude in 2028 or 2029 with total approximate implementation costs anticipated to range from $180 to $200 million. Through the second quarter of 2026, we have incurred total implementation costs of approximately $158 million. See Note 11, Strategic Transformation, Restructuring Charges and Other Operating Gains, net of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional discussion of the costs related to these strategic initiatives. Economic Conditions – We monitor macroeconomic and other factors that may affect our business such as steel and oil prices and geopolitical conflicts, among others. 20 INDEX Steel is a major component of our equipment. Increased steel demand in certain markets and elevated freight and energy costs have driven increased steel prices in the first half of 2026. We anticipate that steel prices will remain elevated during the remainder of 2026. Additionally, significant portions of our revenues from the Infrastructure Solutions segment relate to the sale of equipment involved in the production, handling, recycling or application of asphalt mix. Liquid asphalt is a by-product of oil refining, and changes in the price of oil impact the cost of asphalt, which is in turn likely to alter demand for asphalt and therefore affect demand for certain of our products. Oil prices have routinely fluctuated in recent years and have experienced a significant rise in the first half of 2026 due to the conflict in the Middle East. We anticipate that these high prices will persist in the short term. New or ongoing geopolitical conflicts may cause a downturn in the construction industries in which we operate, cause an increase in oil prices, damage a significant portion of our inventory or materially impair our ability to distribute our products to customers. We monitor, adjust and potentially cease our operations in affected jurisdictions to ensure compliance with any governmental actions made in response to such conflicts. Whenever possible, we attempt to cover increased costs of production by adjusting the prices of our products. The markets we serve are competitive in nature, and competition limits our ability to pass through cost increases in many cases. Results of Operations Net Sales Net sales for the second quarter of 2026 were $408.1 million compared to $330.3 million for the second quarter of 2025, an increase of $77.8 million, or 23.6%. The increase in net sales was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $42.6 million and parts and service revenues of $35.0 million. Included in the net increase is $48.6 million of incremental net sales from acquired businesses. Sales reported by our foreign subsidiaries in U.S. dollars for the second quarter of 2026 would have been $4.0 million lower had second quarter 2026 foreign exchange rates been the same as second quarter 2025 rates. Net sales for the first six months of 2026 were $804.4 million compared to $659.7 million for the first six months of 2025, an increase of $144.7 million, or 21.9%. The increase in net sales was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $85.9 million and parts and service revenues of $59.0 million. Included in the net increase is $98.1 million of incremental net sales from acquired businesses. Sales reported by our foreign subsidiaries in U.S. dollars for the first six months of 2026 would have been $8.5 million lower had the first six months of 2026 foreign exchange rates been the same as the first six months of 2025 rates. Domestic sales for the second quarter of 2026 were $332.6 million, or 81.5% of consolidated net sales, compared to $262.0 million, or 79.3% of consolidated net sales, for the second quarter of 2025, an increase of $70.6 million, or 26.9%. Domestic sales increased primarily due to higher equipment sales of $44.3 million and parts and service revenues of $26.1 million. Included in the net increase is $37.0 million of incremental net sales from acquired businesses. Domestic sales for the first six months of 2026 were $651.6 million, or 81.0% of consolidated net sales, compared to $535.8 million, or 81.2% of consolidated net sales, for the first six months of 2025, an increase of $115.8 million, or 21.6%. Domestic sales increased primarily due to higher equipment sales of $69.5 million and parts and service revenues of $46.7 million. Included in the net increase is $79.0 million of incremental net sales from acquired businesses. International sales for the second quarter of 2026 were $75.5 million, or 18.5% of consolidated net sales, compared to $68.3 million, or 20.7% of consolidated net sales, for the second quarter of 2025, an increase of $7.2 million, or 10.5%. International sales increased primarily due to higher parts and service revenues of $8.9 million partially offset by lower equipment sales of $1.7 million. Included in the net increase is $11.6 million of incremental net sales from acquired businesses. International sales for the first six months of 2026 were $152.8 million, or 19.0% of consolidated net sales, compared to $123.9 million, or 18.8% of consolidated net sales, for the first six months of 2025, an increase of $28.9 million, or 23.3%. International sales increased primarily due to higher equipment sales of $16.4 million and parts and service revenues of $12.3 million. Included in the net increase is $19.1 million of incremental net sales from acquired businesses. Gross Profit Gross profit for the second quarter of 2026 was $106.8 million, or 26.2% of net sales, as compared to $88.3 million, or 26.7% of net sales, for the second quarter of 2025, an increase of $18.5 million, or 21.0%. The increase in gross profit was primarily driven by the impact of net favorable volume and mix coupled with favorable pricing of $41.0 million and lower warranty program costs of $1.0 million. This increase was partially offset by (i) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $8.6 million, (ii) the impact of inflation on materials, labor and overhead of $8.4 million and (iii) net unfavorable inventory adjustments of $6.4 million. 21 INDEX Gross profit for the first six months of 2026 was $205.9 million, or 25.6% of net sales, as compared to $180.7 million, or 27.4% of net sales, for the first six months of 2025, an increase of $25.2 million, or 13.9%. The increase in gross profit was primarily driven by the impact of net favorable volume and mix coupled with favorable pricing of $66.4 million and lower warranty program costs of $4.2 million. This increase was partially offset by (i) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $24.8 million, (ii) the impact of inflation on materials, labor and overhead of $14.6 million and (iii) net unfavorable inventory adjustments of $4.8 million. Selling, General and Administrative Expenses Selling, general and administrative expenses were $85.5 million or 21.0% of net sales, for the second quarter of 2026, compared to $67.0 million, or 20.3% of net sales, for the second quarter of 2025, an increase of $18.5 million, or 27.6%, primarily due to (i) increased intangible asset amortization expense of $7.2 million, (ii) increased personnel-related costs of $5.3 million, (iii) increased technology support costs of $1.8 million, (iv) increased costs related to our strategic transformation program of $1.2 million, (v) increased professional service costs of $1.1 million and (vi) increased dealer commissions of $0.9 million. Selling, general and administrative expenses were $175.7 million, or 21.8% of net sales, for the first six months of 2026, compared to $138.9 million, or 21.1% of net sales, for the first six months of 2025, an increase of $36.8 million, or 26.5%, primarily due to (i) increased intangible asset amortization expense of $14.4 million, (ii) increased personnel-related costs of $13.1 million, (iii) increased exhibit and promotional costs of $3.6 million primarily due to the ConExpo industry trade show held once every three years, (iv) increased technology support costs of $1.8 million and (v) increased dealer commissions of $1.7 million. These increases were partially offset by lower costs related to our strategic transformation program of $1.9 million. Interest Expense Interest expense of $7.1 million and $14.5 million was incurred in the three and six months ended June 30, 2026, respectively, as compared to $2.1 million and $4.1 million in the three and six months ended June 30, 2025, respectively, primarily related to higher average outstanding borrowings coupled with higher interest rates on the 2025 Credit Facility as compared to our previous credit facility. Income Tax Our income tax expense for the second quarter of 2026 was $4.5 million compared to $5.8 million for the second quarter of 2025. Our effective income tax rate was 30.0% for the second quarter of 2026 compared to 25.7% for the second quarter of 2025. The income tax expense for the three months ended June 30, 2026 was lower compared to the same period in 2025 primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss. Our income tax expense for the first six months of 2026 was $6.0 million compared to $11.2 million for the first six months of 2025. Our effective tax rate was 33.7% for the first six months of 2026 compared to 26.5% for the first six months of 2025. The income tax expense for the six months ended June 30, 2026 was lower compared to the same period in 2025 primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss. Backlog June 30, (in millions, except percentage data) 2026 2025 $ Change % Change Infrastructure Solutions $ 288.6 $ 256.1 $ 32.5 12.7 % Materials Solutions 312.5 124.7 187.8 150.6 % Domestic Backlog 501.4 308.1 193.3 62.7 % International Backlog 99.7 72.7 27.0 37.1 % The backlog of orders as of June 30, 2026 was $601.1 million compared to $380.8 million as of June 30, 2025, an increase of $220.3 million, or 57.9%. The increases in backlog are driven by organic growth due to increased demand in the aggregates business, partially attributable to large data center projects, and inorganic contributions. Uncertainty driven by macroeconomic factors, such as changing interest rates, global tariff policies and geopolitical conflicts, as well as seasonality, have historically had an impact on our backlog. 22 INDEX Segment Net Sales – Three Months Ended: Three Months Ended June 30, $ Change % Change (in millions, except percentage data) 2026 2025 Infrastructure Solutions $ 228.3 $ 204.6 $ 23.7 11.6 % Materials Solutions 179.8 125.7 54.1 43.0 % Infrastructure Solutions Sales in this segment were $228.3 million for the second quarter of 2026 compared to $204.6 million for the same period in 2025, an increase of $23.7 million, or 11.6%. The increase was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $20.6 million and parts and service revenues of $2.9 million. Included in the net increase is $8.0 million of incremental net sales from the acquired CWMF business. Domestic sales for the Infrastructure Solutions segment increased $29.6 million, or 15.9%, for the second quarter of 2026 compared to the same period in 2025 primarily due to higher equipment sales of $25.9 million and parts and service revenues of $3.5 million. Included in the net increase is $8.0 million of incremental net sales from the acquired CWMF business. International sales for the Infrastructure Solutions segment decreased $5.9 million, or 32.6%, for the second quarter of 2026 compared to the same period in 2025 primarily due to lower equipment sales of $5.3 million. Materials Solutions Sales in this segment were $179.8 million for the second quarter of 2026 compared to $125.7 million for the same period in 2025, an increase of $54.1 million, or 43.0%. The increase was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in parts and service revenues of $32.1 million and equipment sales of $22.0 million. Included in the net increase is $40.6 million of incremental net sales from the acquired TerraSource business. Domestic sales for the Materials Solutions segment increased by $41.0 million, or 54.3%, for the second quarter of 2026 compared to the same period in 2025, primarily due to higher parts and service revenues of $22.6 million and equipment sales of $18.4 million. Included in the net increase is $29.0 million of incremental net sales from the acquired TerraSource business. International sales for the Materials Solutions segment increased $13.1 million, or 26.1%, for the second quarter of 2026 compared to the same period in 2025 primarily due to higher parts and service revenues of $9.5 million and equipment sales of $3.6 million. Included in the net increase is $11.6 million of incremental net sales from the acquired TerraSource business. Segment Net Sales – Six Months Ended: Six Months Ended June 30, $ Change % Change (in millions, except percentage data) 2026 2025 Infrastructure Solutions $ 465.3 $ 440.6 $ 24.7 5.6 % Materials Solutions 339.1 219.1 120.0 54.8 % Infrastructure Solutions Sales in this segment were $465.3 million for the first six months of 2026 compared to $440.6 million for the same period in 2025, an increase of $24.7 million, or 5.6%. The increase was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $21.1 million and parts and service revenues of $4.4 million. Included in the net increase is $25.9 million of incremental net sales from the acquired CWMF business. Domestic sales for the Infrastructure Solutions segment increased $28.4 million, or 7.0%, for the first six months of 2026 compared to the same period in 2025 primarily due to higher equipment sales of $23.3 million and parts and service revenues of $5.8 million. Included in the net increase is $25.9 million of incremental net sales from the acquired CWMF business. International sales for the Infrastructure Solutions segment decreased $3.7 million, or 11.4%, for the first six months of 2026 compared to the same period in 2025 primarily due to lower equipment sales of $2.2 million and parts and service revenues of $1.4 million. Materials Solutions Sales in this segment were $339.1 million for the first six months of 2026 compared to $219.1 million for the same period in 2025, an increase of $120.0 million, or 54.8%. The increase was primarily driven by net favorable volume and mix coupled with 23 INDEX favorable pricing that generated increases in equipment sales of $64.8 million and parts and service revenues of $54.6 million. Included in the net increase is $72.2 million of incremental net sales from the acquired TerraSource business. Domestic sales for the Materials Solutions segment increased by $87.4 million, or 68.5%, for the first six months of 2026 compared to the same period in 2025, primarily due to higher equipment sales of $46.2 million and parts and service revenues of $40.9 million. Included in the net increase is $53.1 million of incremental net sales from the acquired TerraSource business. International sales for the Materials Solutions segment increased $32.6 million, or 35.6%, for the first six months of 2026 compared to the same period in 2025 primarily due to higher equipment sales of $18.6 million and parts and service revenues of $13.7 million. Included in the net increase is $19.1 million of incremental net sales from the acquired TerraSource business. Segment Operating Adjusted EBITDA Segment Operating Adjusted EBITDA is the measure of segment profit or loss used by our CEO, who is the CODM, to evaluate performance and allocate resources to the reportable segments. Segment Operating Adjusted EBITDA is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered by the CODM in the evaluation of ongoing operating performance. See Note 10, Operations by Industry Segment and Geographic Area, of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a reconciliation of Segment Operating Adjusted EBITDA to total consolidated income before taxes. Segment Operating Adjusted EBITDA – Three Months Ended: Three Months Ended June 30, $ Change % Change (in millions, except percentage data) 2026 2025 Infrastructure Solutions $ 32.9 $ 32.2 $ 0.7 2.2 % Materials Solutions 22.1 14.3 7.8 54.5 % Infrastructure Solutions Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $32.9 million for the second quarter of 2026 compared to $32.2 million for the same period in 2025, an increase of $0.7 million, or 2.2%. The increase in Segment Operating Adjusted EBITDA was primarily driven by the sales impact of net favorable pricing, volume and mix that generated higher gross profit of $10.3 million and lower quality-related expenses of $2.8 million. These increases were partially offset by (i) the impact of inflation on materials, labor and overhead of $5.9 million, (ii) unfavorable inventory adjustments of $5.4 million and (iii) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $1.3 million. Materials Solutions Segment Operating Adjusted EBITDA for the Materials Solutions segment was $22.1 million for the second quarter of 2026 compared to $14.3 million for the same period in 2025, an increase of $7.8 million, or 54.5%. The increase in Segment Operating Adjusted EBITDA was primarily driven by the sales impact of net favorable volume and mix coupled with favorable pricing that generated higher gross profit of $30.7 million. These increases were partially offset by (i) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $7.0 million, (ii) higher personnel-related costs of $6.2 million, (iii) the impact of inflation on materials, labor and overhead of $2.5 million, (iv) net foreign currency transaction gains of $2.1 million in the prior year, (v) net unfavorable inventory adjustments of $1.0 million, (vi) increased dealer commissions of $0.9 million and (vii) higher quality-related expenses of $0.8 million. 24 INDEX Segment Operating Adjusted EBITDA – Six Months Ended: Six Months Ended June 30, $ Change % Change (in millions, except percentage data) 2026 2025 Infrastructure Solutions $ 67.7 $ 75.1 $ (7.4) (9.9) % Materials Solutions 31.0 19.5 11.5 59.0 % Infrastructure Solutions Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $67.7 million for the first six months of 2026 compared to $75.1 million for the same period in 2025, a decrease of $7.4 million, or 9.9%. The decrease in Segment Operating Adjusted EBITDA was primarily driven by (i) the impact of inflation on materials, labor and overhead of $10.4 million, (ii) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $8.0 million, (iii) net unfavorable inventory adjustments of $4.7 million and (iv) higher exhibit and promotional costs of $1.9 million. These decreases were partially offset by the sales impact of net favorable pricing, volume and mix of $13.1 million and lower quality-related expenses of $4.6 million. Materials Solutions Segment Operating Adjusted EBITDA for the Materials Solutions segment was $31.0 million for the first six months of 2026 compared to $19.5 million for the same period in 2025, an increase of $11.5 million, or 59.0%. The increase in Segment Operating Adjusted EBITDA was primarily driven by the sales impact of net favorable volume and mix coupled with favorable pricing that generated higher gross profit of $53.3 million. These increases were partially offset by (i) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $16.1 million, (ii) higher personnel-related costs of $12.7 million, (iii) the impact of inflation on materials, labor and overhead of $4.2 million, (iv) increased dealer commissions of $1.7 million, (v) net foreign currency transaction gains of $1.9 million in the prior year and (vi) net unfavorable impact of the exhibit and promotion expense of $1.4 million. Corporate and Other Operations Corporate and Other operations, which are not an operating segment or included in one of the other reportable segments, had net expenses of $12.4 million for the second quarter of 2026 compared to $12.7 million for the same period in 2025, a decrease of $0.3 million, or 2.4%. Corporate and Other operations had net expenses of $25.8 million for the first six months of 2026 compared to $25.6 million for the first six months of 2025, an increase of $0.2 million, or 0.8%. Liquidity and Capital Resources Our primary sources of liquidity and capital resources are cash and cash equivalents on hand, borrowing capacity under our 2025 Credit Facilities and cash flows from operations. As of June 30, 2026, our total liquidity was $265.8 million, consisting of $75.7 million of cash and cash equivalents available for operating purposes and $190.1 million available for additional borrowings under the 2025 Revolving Credit Facility, to the extent our compliance with financial covenants permits such borrowings. Our foreign subsidiaries held $36.5 million of cash and cash equivalents available for operating purposes, which is considered to be indefinitely invested in those jurisdictions. Our future cash requirements primarily include working capital needs, debt service obligations, capital expenditures, vendor-hosted software arrangements including the related implementation costs, unrecognized tax benefits and operating lease payments. In addition, our variable cash uses may include transformation initiatives, strategic acquisitions, dividend payments and share repurchases under our share repurchase authorization. We believe that our current working capital, cash flows generated from future operations and available capacity under the 2025 Revolving Credit Facility will be sufficient to meet working capital and capital expenditure requirements for our existing business for at least the next 12 months. On July 1, 2025, we entered into the 2025 Credit Agreement that provides for (i) the 2025 Revolving Credit Facility, a term loan facility, a swingline facility and a letter of credit facility, in an initial aggregate amount of up to $600.0 million and (ii) an incremental facilities limit in an aggregate amount not to exceed $150.0 million. We had outstanding principal indebtedness on the term loan facility of $332.5 million and $54.0 million outstanding borrowings under the 2025 Revolving Credit Facility as of June 30, 2026. Our outstanding letters of credit totaling $5.9 million decreased borrowing availability to $190.1 million under the 2025 Revolving Credit Facility as of June 30, 2026. Certain of our international subsidiaries in Australia, Brazil, Canada, South Africa and the United Kingdom each have separate credit facilities with local financial institutions primarily to finance short-term working capital needs, as well as to cover foreign exchange contracts, performance letters of credit, advance payment and retention guarantees. The outstanding borrowings under such credit facilities of the international subsidiaries are recorded in "Short-term debt" in our Consolidated Balance Sheets. 25 INDEX Each of these credit facilities is generally guaranteed by Astec Industries, Inc. and/or secured with certain assets of the local subsidiary. We regularly enter into agreements, primarily to purchase inventory, in the ordinary course of business. As of June 30, 2026, open purchase obligations totaled $196.0 million, of which $179.4 million are expected to be fulfilled within the remainder of 2026. We estimate that our capital expenditures will be between $35.0 million and $45.0 million for the year ending December 31, 2026, which may be impacted by general economic, financial or operational changes and competitive, legislative and regulatory factors, among other considerations. Cash Flows The following table summarizes cash flows during the six months ended June 30, 2026 and 2025, respectively: Six Months Ended June 30, (in millions) 2026 2025 Net cash provided by operating activities $ 52.8 $ 33.4 Net cash used in investing activities (83.7) (7.7) Net cash provided by (used in) financing activities 36.2 (29.2) Effect of exchange rates on cash (0.5) 1.4 Increase (decrease) in cash, cash equivalents and restricted cash 4.8 (2.1) Cash, cash equivalents and restricted cash, end of period $ 76.8 $ 88.7 Net cash provided by operating activities Our operating activities provided net cash of $52.8 million for the six months ended June 30, 2026 as compared to $33.4 million for the six months ended June 30, 2025. This increase is primarily due to net cash provided by our operating assets and liabilities of $22.6 million partially offset by decreased cash inflows from net income reduced by non-cash charges of $3.6 million. The net cash provided by our operating assets and liabilities was mainly driven by fluctuations in inventories of $37.9 million and prepaid and refundable income taxes of $5.2 million. The net cash provided was partially offset by fluctuations in (i) customer deposits of $13.2 million, (ii) trade and other receivables of $7.9 million and (iii) higher employee-related payments of $6.4 million. Net cash used in investing activities Net cash used in investing activities was $83.7 million during the six months ended June 30, 2026 as compared to $7.7 million during the six months ended June 30, 2025, primarily due to the CWMF acquisition and increased capital expenditures of $7.7 million. Net cash provided by (used in) financing activities Net cash provided by financing activities was $36.2 million during the six months ended June 30, 2026 as compared to a net use of $29.2 million during the six months ended June 30, 2025, primarily due to higher net debt borrowings in 2026 as compared to net repayments in 2025. Dividends We paid quarterly dividends of $0.13 per common share to shareholders in the second quarter of both 2026 and 2025. Financial Condition Our total current assets decreased to $816.4 million as of June 30, 2026 from $816.6 million as of December 31, 2025, a decrease of $0.2 million. Decreases in inventories and prepaid and other assets of $5.7 million and $1.8 million, respectively, were offset by increases in cash, cash equivalents and restricted cash and prepaid and refundable income taxes of $4.8 million and $2.4 million, respectively. Our total current liabilities decreased to $324.4 million as of June 30, 2026 from $328.0 million as of December 31, 2025, a decrease of $3.6 million, or 1.1%, due primarily to decreases in (i) customer deposits of $10.5 million, (ii) accrued employee-related liabilities of $6.4 million and (iii) accrued product warranties of $3.2 million. These decreases were partially offset by increases in accounts payable and other current liabilities of $14.1 million and $2.7 million, respectively. 26 INDEX Critical Accounting Estimates Our critical accounting estimates are described in Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to our critical accounting estimates since our Annual Report on Form 10-K for the year ended December 31, 2025 was filed.