Q1 2026 Earnings Call Q1 2026 Earnings Presentation

GAAP Net Loss

($235.0)

Plus: Pro Forma impact of Husky Holdings (1/1-1/11)

($18.0)

Pro Forma Net Loss

($253.0)

Plus: Loss on extinguishment and refinancing of debt

106.8

Plus: Husky transaction costs

98.0

Plus: Depreciation and amortization

63.7

Plus: Net interest expense

36.7

Plus: Other items

29.9

Pro Forma Adjusted EBITDA

$82.1

Jan: +7% y/y

Pipeline +4% y/y +4% y/y

Feb: +6% y/y

• Pipeline healthy, but conversion to orders began extending in mid-March with oil price shock

• April pipeline up ~8% y/y with May trending similar1

Jan: +32% y/y

Orders -16% y/y +8% y/y

Feb: +22% y/y

• As oil / resin prices spiked in March, customers delayed orders

  - this trend continued in April

• April orders up ~2% y/y1

Jan: -4% y/y

Backlog -5% y/y -5% y/y

Feb: +1% y/y

• Backlog recovered year-over-year in February offset by decline in March, consistent with order activity

• April backlog down ~5% y/y1

Aftermarket Orders = Jan: +11% y/y

Embedded Resiliency Feb: +26% y/y -11% y/y +6% y/y

• March declines consistent with customer demand uncertainty given market conditions; 1Q26 aftermarket tooling, spare parts, and services orders all increased over prior year levels

22%

2%

-16%

Product Line

1H26

FY26

Key Drivers

New Systems

• Customers deferring orders due to resin price volatility, resin supply shortages, tariff related uncertainty,

  and elevated financing costs

• Weakness to continue in second half if the idiosyncratic headwinds persist

Aftermarket Tooling

• Orders were impacted by tariffs in 4Q25 which weighed on 1Q26 sales

• Similar to new system sales, orders are being deferred in the near-term, but we expect the segment to return to growth in 2H26 as customers invest in tooling for existing machines

Hot Runners & Controllers

• Strong revenue growth in hot runners to date in most regions

• Continued market uncertainty weighing on the outlook in the near term

Parts &

Services

• Services demand was impacted at the end of 1Q and beginning of 2Q due to market ambiguity and tariff

  noise

• We expect growth in 2H26 as customers focus on productivity for existing machines

Region

FY26

Key Drivers

North

America

• Decline in PET systems partly offset by growth in tooling, parts, and services

• Near-term order deferrals due to resin price volatility and changes in Section 232 tariffs

• Oldest Husky install base - refresh cycle is overdue

• rPET and virgin PET prices converging; lightweighting initiatives are gaining momentum

Europe, Middle East, Africa

• Growth in PET systems in Middle East and Africa driven by favorable demographics and macroeconomics,

  including consumption growth, partly offset by near-term geopolitical disruptions

• Aftermarket tooling growth in Europe driven by lightweighting and sustainability regulations

• Growth in hot runners driven by growth in medical applications

Latin America

• Decline in CSD consumption driven by sugar tax, affecting growth in PET systems

• Aftermarket tooling continued growth driven by lightweighting and package optimization

Asia Pacific

• Growth in PET systems driven by favorable demographics and macroeconomics, including consumption growth

• Growth in hot runners driven by food packaging and medical applications

Guidance Metrics

2Q26

FY261

Pro Forma Adjusted Net Sales2

$425 - $475 (-9% y/y)

$1,950 - $2,100 (+0% y/y)2

Pro Forma Adjusted EBITDA2,3

$105 - $120 (-14% y/y)

$550 - $610 (+7% y/y)

Pro Forma Adjusted EBITDA Margin2,3

24.7% - 25.3% (-140bps)

28.2% - 29.0% (+180bps)

Pro Forma Adjusted Free Cash Flow4

$275 - $325

As of March 31, 2026

Cash Balance

$122

Total Debt Outstanding1

$2,175

Net Debt

$2,053

LTM Net Debt / Pro Forma Adjusted EBITDA2

3.7x

Revolver Capacity3

$322

Total Liquidity

$444

Net sales

-

-

$407.8

$13.4

$421.2

Cost of sales

-

-

252.2

12.3

264.5

Gross profit

Operating expenses:

-

-

155.6

1.1

156.7

Research and development

-

-

8.4

-

8.4

Selling, general and administrative expenses

55.6

-

162.8

13.9

232.3

Foreign currency losses (gains)

-

-

(1.2)

(1.9)

(3.1)

Income from operations

(55.6)

-

(14.4)

(10.9)

(80.9)

Other (expense) income:

Revaluation of warrant liability

-

-

-

-

-

Revaluation of earnout consideration liability

-

-

-

-

-

Change in fair value of derivative liability

-

-

-

-

-

Loss on remeasurement of TRA liability

(21.9)

-

-

-

(21.9)

Interest expense

-

-

(29.4)

(7.1)

(36.5)

Interest income

0.2

-

0.2

-

0.4

Loss on extinguishment of debt

-

-

(106.8)

-

(106.8)

Amortization of deferred financing costs

-

-

(0.5)

-

(0.5)

Loss of sale of assets

-

-

-

-

-

Total other income (expense), net

(21.7)

-

(136.5)

(7.1)

(165.3)

Income (loss) before income taxes

(77.3)

-

(150.9)

(18.0)

(246.2)

Income tax expense

(3.6)

-

(3.2)

-

(6.8)

Earnings in GPGI Holdings L.L.C equity method investment

(154.1)

154.1

-

-

-

Net Income (Loss)

($235.0)

$154.1

($154.1)

($18.0)

($253.0)

Add:

Depreciation and amortization

63.7

Income tax expense (benefit)

6.8

Interest expense, net (1)

36.7

Stock-based compensation

5.2

Husky transaction cost

98.0

Loss on extinguishment and refinancing of debts

106.8

Loss on remeasurement of TRA liability

21.9

Loss on sale of assets

0.6

FX (gain) loss

(4.2)

Severance costs

0.6

Incremental pro forma Management Fee

(1.0)

Pro Forma Adjusted EBITDA $82.1

Three Months Ended

March 31, 2025

GAAP

Equity Method Adjustments

Non-GAAP

Net sales

$59.8

-

$44.1

$103.9

Cost of sales

31.1

-

18.3

49.4

Gross profit

Operating expenses:

28.7

-

25.8

54.5

Selling, general and administrative expenses

22.7

-

10.1

32.8

Income from operations

6.0

-

15.7

21.7

Other (expense) income:

Revaluation of warrant liability

17.9

-

-

17.9

Revaluation of earnout consideration liability

11.2

-

-

11.2

Interest expense

(1.6)

-

(1.7)

(3.3)

Interest income

0.2

-

0.9

1.1

Amortization of deferred financing costs

-

-

(0.1)

(0.1)

Total other income (expense), net

27.7

-

(0.9)

26.8

Income before income taxes

33.7

-

14.8

48.5

Income tax (expense) benefit

(27.0)

-

-

(27.0)

Earnings in CompoSecure Holdings L.L.C equity method investment

14.8

(14.8)

-

-

Net Income (Loss)

$21.5

($14.8)

$14.8

$21.5

Add:

Depreciation and amortization (3)

2.3

Income tax expense (benefit)

27.0

Interest expense, net (1) (3)

2.4

Stock-based compensation

5.7

Mark-to-market adjustments (2)

(29.2)

Resolute spin-off costs

5.0

Add back actual 1Q25 Management Fee for one month

1.1

Add back expenses incurred on behalf of Resolute Holdings prior to Spin-Off

1.0

Pro forma full quarter Management Fee

(3.2)

Pro Forma Adjusted EBITDA

$33.7

2026

2026

CASH FLOWS FROM OPERATING ACTIVITIES:

GAAP

Non-GAAP

Net income (loss)

($235.0)

($253.0)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities

Depreciation and amortization

-

63.8

Stock-based compensation expense

2.0

5.3

Earnings in equity method investment

154.1

-

Amortization of deferred financing costs Non-cash operating lease expense Revaluation of earnout consideration liability Revaluation of warrant liability

Cash receipts from Holdings

-

-

-

-

-

1.0

-

-

-

-

Loss on remeasurement of TRA Liability

21.9

21.9

Loss on extinguishment of debt

Non-cash interest on operating lease expense

Loss/ (gain) on dispositions of property, plant and equipment and intangible assets Other

Change in fair value of derivative liability

-

-

-

-

-

66.3

-

-

2.4

-

Deferred tax expense (benefit)

13.7

4.0

Changes in assets and liabilities

(9.3)

(65.5)

Net cash (used in) provided by operating activities

($52.6)

($153.8)

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment in GPGI Holdings

(2,016.8)

-

Cash used for acquisition

-

(762.2)

Purchase of property and equipment

-

(8.9)

Proceeds from sale of property and equipment and intangible assets

-

0.2

Acquisition of a business, net of cash and cash equivalents acquired

-

-

Maturities of short-term investments

-

41.1

Capitalized software expenditures

-

(4.3)

Resolute Holdings cash deconsolidated as a result of the Spin-Off

GPGI Holdings cash deconsolidated as a result of the CompoSecure Management Agreement

-

-

-

-

Net cash used in investing activities

($2,016.8)

($734.1)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of preference share capital Contributions from GPGI Inc

Proceeds from employee stock purchase plan and exercise of options

Payments for taxes related to net share settlement of equity awards

-

-

-

-

(457.4)

-

-(26.6)

Debt issuance costs

Payment of term loan

-

-

(37.5)

-

Proceeds from Revolver

-

50.0

Proceeds from issuance of common stock

1,962.0

1,962.0

Payment of debt, net of associated fees

-

(3,309.2)

Proceeds from issuance of long-term debt - net of discounts

-

2,523.5

Dividend to Class A shareholders Net cash obtained from PIPE

Proceeds from the exercise of warrants

(0.7)

-

-

(0.7)

-

-

Net cash used in financing activities

$1,961.3

$704.1

Effect of exchange rate changes on cash and cash equivalents

-

(2.3)

Net increase (decrease) in cash and cash equivalents

(108.1)

(186.1)

Cash and cash equivalents, beginning of period

114.6

307.7

Cash and cash equivalents, end of period

$6.5

$121.6

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$6.5

$121.6

$114.6

$271.6

Short-term investments

-

-

-

41.1

Accounts receivable

-

328.1

-

44.2

Inventories, net

-

411.1

-

44.2

Prepaid expenses and other current assets

16.4

38.0

5.5

8.6

Total Current Assets

$22.9

$898.8

$120.1

$409.7

Property and equipment, net and right of use asset

-

$557.9

-

$30.7

Deferred tax asset

258.0

261.8

271.7

271.7

Intangible assets, net

-

1,624.1

-

-

Goodwill

-

3,041.9

-

-

Other assets

-

48.1

-

4.0

Equity method investment

3,133.2

-

125.5

-

Total Assets

$3,414.1

$6,432.6

$517.3

$716.1

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable

$1.4

$101.8

$0.8

$12.7

Accrued expenses

3.1

269.6

1.9

48.7

Deferred revenues

-

164.8

-

-

Current portion of tax receivable agreement liability

20.4

20.4

16.2

16.2

Current portion of long-term debt

-

9.0

-

15.0

Other current liabilities

-

56.3

-

5.8

Total Current Liabilities

$24.9

$621.9

$18.9

$98.4

Long-term debt, net of deferred finance costs

-

2,138.3

-

170.0

Deferred tax liability

-

303.2

-

-

Tax receivable agreement liability

272.9

272.9

255.2

255.2

Other liabilities

-

62.7

-

7.3

Total Liabilities

$297.8

$3,399.0

$274.1

$530.9

Stockholder's equity / (deficit)

3,116.3

3,033.6

243.2

185.2

Total Liabilities and Stockholder's Equity / (Deficit)

$3,414.1

$6,432.6

$517.3

$716.1

Adjusted net income before tax

$43.0

$29.9

Income tax expense (2)

10.3

1.6