0 7 . 2 3 . 2 6
2nd Quarter 2026
Earnings Release Supplemental Information
Second Quarter Results
Revenue
($M)
166.8
145.9
+ 14.3%
2Q 2025
2Q 2026
Non-GAAP Diluted EPS*
($)
0.33
0.24
+37.5%
2Q 2025
2Q 2026
Net Cash Provided by
Operating Activities
($M)
36.4
28.2
-22.5%
2Q 2025
2Q 2026
Revenue growth was driven by strong product demand in Precision Devices.
Non-GAAP Diluted EPS growth was driven by higher volume, margin expansion and lower interest expense.
Cash generated by operating activities is lower year over year due to an increase in working capital as we build inventory to support expected demand for our Precision Devices products in the back half of the year.
* For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation 3
SEGMENT PERFORMANCE
MedTech & Specialty Audio
Revenue
($)
67.4
68.5
+1.6%
2Q 2025
2Q 2026
Adjusted EBITDA Margin*
(%)
42.0
43.4
+140
bps
2Q 2025
2Q 2026
Second quarter revenue growth was driven by higher volumes in hearing health shipments.
Factory productivity gains drove adjusted EBITDA margin growth.
* For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation 4
SEGMENT PERFORMANCE
Precision Devices
Revenue
($)
98.3
78.5
+25.2%
2Q 2025
2Q 2026
Adjusted EBITDA Margin*
(%)
23.9
20.8
+310
bps
2Q 2025
2Q 2026
Revenue growth in the second quarter was driven by increased demand for our products across all of our end markets - Medtech, Defense, Industrial and Electrification.
Adjusted EBITDA margin increase was driven by increased production volume and factory capacity utilization as we delivered on strong demand across all markets and products.
* For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation 5
Third Quarter 2026 Outlook
GAAP | Adjustments | Non-GAAP | |
Revenues from continuing operations | $167 to $177 million | $- | $167 to $177 million |
Diluted earnings per share from | $0.22 to $0.26 | $0.12 | $0.34 to $0.38 |
continuing operations | |||
Net cash provided by operating activities | $35 to $45 million | $- | $35 to $45 million |
Q3 2026 GAAP Results from continuing operations are expected to include approximately $0.06 per share in stock based compensation expense, $0.04 per share in intangibles amortization expense, and $0.02 per share for differences related to the GAAP effective tax rate. These items are excluded from non-GAAP results. | |||
6
Appendix
7
Quarter Ended June 30,
(continuing operations, in millions, except per share amounts) 2026 2025
Revenues $ 166.8 $ 145.9 Gross profit $ 74.6 $ 60.6Gross profit margin 44.7 % 41.5 %
Stock-based compensation expense 0.4 0.3
Impairment charges - 3.6
Restructuring charges 0.1 -
Production transfer costs (1) 0.8 0.2
Transition services credit (2) (0.2) (0.2)
Other (3) - -
Non-GAAP gross profit $ 75.7 $ 64.5Non-GAAP gross profit margin 45.4 % 44.2 %
Operating expenses $ 49.9 $ 45.9Stock-based compensation expense (5.8) (6.0)
Intangibles amortization expense (4.0) (4.1)
Restructuring charges (0.1) -
Acquisition-related costs (4) - (0.2)
Transition services credit (2) 0.1 0.3
Other (3) - 0.3
Non-GAAP operating expenses $ 40.1 $ 36.2Non-GAAP operating expenses margin 24.0 % 24.8 %
Net earnings $ 18.4 $ 7.8 Interest expense, net 1.7 2.5 Provision for income taxes 4.2 3.5 Earnings before interest and income taxes 24.3 13.8Earnings before interest and income taxes margin 14.6 % 9.5 %
Stock-based compensation expense 6.2 6.3
Intangibles amortization expense 4.0 4.1
Impairment charges - 3.6
Restructuring charges 0.2 -
Production transfer costs (1) 0.8 0.2
Acquisition-related costs (4) - 0.2
Transition services credit (2) (0.3) (0.5)
Other (3) 0.9 -
Adjusted earnings before interest and income taxes $ 36.1 $ 27.7Adjusted earnings before interest and income taxes margin 21.6 % 19.0 %
Notes
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON- GAAP FINANCIAL MEASURES
Production transfer costs represent duplicate costs incurred to migrate manufacturing to existing facilities.
Transition services represent amounts charged to Syntiant in connection with post-closing transition and separation costs.
Other expenses for the three months ended June 30, 2025 include foreign currency exchange rate impacts on restructuring balances. Other expenses for the three months ended June 30, 2026 include foreign currency exchange rate adjustments related to certain balances retained subsequent to the disposal of CMM; these adjustments were not deemed material for 2025.
These expenses include ongoing costs to facilitate integration of the Cornell Dubilier acquisition by the Precision Devices segment.
8
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON- GAAP FINANCIAL MEASURES
Quarter Ended June 30,
(continuing operations, in millions, except per share amounts)
2026
2025
Net earnings
$
18.4
$
7.8
Interest expense, net
1.7
2.5
Provision for income taxes
4.2
3.5
Earnings before interest and income taxes
$
24.3
$
13.8
Non-GAAP reconciling adjustments (5)
11.8
13.9
Depreciation expense
5.7
5.0
Adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA")
$
41.8
$
32.7
Adjusted EBITDA margin
25.1 %
22.4 %
Notes
The non-GAAP reconciling adjustments include stock-based compensation expense, intangibles amortization expense, impairment charges, restructuring charges, production transfer costs, acquisition-related costs, and other expenses, partially offset by a credit to transition services.
Income tax effects of non-GAAP reconciling adjustments are calculated using the applicable tax rates in the jurisdictions of the underlying adjustments.
Net earnings
$
18.4
$
7.8
Non-GAAP reconciling adjustments (5)
11.8
13.9
Income tax effects of non-GAAP reconciling adjustments (6)
1.6
0.5
8.
Non-GAAP net earnings
$
28.6
$
21.2
Diluted earnings per share
$
0.21
$
0.09
Earnings per share non-GAAP reconciling adjustment (5) (6) (7)
0.12
0.15
Non-GAAP diluted earnings per share (7)
$
0.33
$
0.24
Diluted average shares outstanding
87.9
87.6
Non-GAAP adjustment (7) (8)
(0.4)
1.3
Non-GAAP diluted average shares outstanding (7) (8)
87.5
88.9
In the third quarter of 2025, the Company modified its calculation method of non-GAAP diluted average shares outstanding to exclude the potential dilution impact from performance share units ("PSUs") as these equity awards have not yet been earned. Our PSUs are market-based awards and fluctuate based on the Company's total shareholder return performance relative to the Russell 2000 during the measurement period. The calculation methodology change in non-GAAP diluted average shares outstanding had no impact on non-GAAP diluted earnings per share for the historical period presented.
The number of shares used in the diluted average shares outstanding calculations on a non-GAAP basis excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. Non-GAAP diluted average shares outstanding also excludes the impact of certain equity awards that are not yet earned.
9
H I S T O R I C A L S E G M E N T D A T A
PRECISION DEVICES | MEDTECH & SPECIALTY AUDIO | ||||||||
Quarter Ended | Quarter Ended | ||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | March 31, | December 31, | September 30, | June 30, |
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2026 | 2025 | 2025 | 2025 |
$ 98.3 | $ 85.1 | $ 89.7 | $ 88.2 | $ 78.5 | $ 68.5 | $ 68.0 | $ 72.5 | $ 64.7 | $ 67.4 |
$ 38.2 | $ 31.9 | $ 35.0 | $ 35.7 | $ 30.0 | $ 36.3 | $ 36.2 | $ 37.4 | $ 34.1 | $ 30.4 |
38.9% | 37.5% | 39.0% | 40.5% | 38.2% | 53.0 % | 53.2 % | 51.6% | 52.7% | 45.1% |
0.3 | 0.3 | 0.2 | 0.1 | 0.2 | 0.1 | 0.2 | 0.2 | 0.2 | 0.1 |
- | - | - | - | - | - | - | - | - | 3.6 |
0.1 | 0.3 | 0.1 | 0.2 | - | - | - | - | - | - |
0.8 | 0.9 | 0.7 | 0.6 | 0.2 | - | - | - | - | - |
$ 39.4 | $ 33.4 | $ 36.0 | $ 36.6 | $ 30.4 | $ 36.4 | $ 36.4 | $ 37.6 | $ 34.3 | $ 34.1 |
40.1% | 39.2% | 40.1% | 41.5% | 38.7% | 53.1 % | 53.5 % | 51.9% | 53.0% | 50.6% |
$ 5.3 | $ 6.1 | $ 5.1 | $ 5.1 | $ 5.0 | $ 5.3 | $ 5.6 | $ 5.4 | $ 5.0 | $ 5.1 |
5.4% | 7.2% | 5.7% | 5.8% | 6.4% | 7.7 % | 8.2 % | 7.4% | 7.7% | 7.6% |
(0.1) | (0.9) | (0.2) | (0.3) | (0.3) | (0.5) | (0.6) | (0.5) | (0.4) | (0.5) |
(0.6) | (0.6) | (0.7) | (0.6) | (0.7) | - | - | - | - | - |
$ 4.6 | $ 4.6 | $ 4.2 | $ 4.2 | $ 4.0 | $ 4.8 | $ 5.0 | $ 4.9 | $ 4.6 | $ 4.6 |
4.7% | 5.4% | 4.7% | 4.8% | 5.1% | 7.0 % | 7.4 % | 6.8% | 7.1% | 6.8% |
$ 18.8 | $ 18.1 | $ 17.6 | $ 16.0 | $ 16.6 | $ 4.8 | $ 4.6 | $ 4.5 | $ 4.1 | $ 4.4 |
19.1% | 21.3% | 19.6% | 18.1% | 21.1% | 7.0 % | 6.8 % | 6.2% | 6.3% | 6.5% |
(1.0) | (1.0) | (0.7) | (0.7) | (0.7) | (0.7) | (0.9) | (0.6) | (0.6) | (0.9) |
(3.4) | (3.4) | (3.4) | (3.4) | (3.4) | - | - | - | - | - |
- | - | (0.2) | 0.1 | (0.2) | - | - | - | - | - |
$ 14.4 | $ 13.7 | $ 13.3 | $ 12.0 | $ 12.3 | $ 4.1 | $ 3.7 | $ 3.9 | $ 3.5 | $ 3.5 |
14.6% | 16.1% | 14.8% | 13.6% | 15.7% | 6.0 % | 5.4 % | 5.4% | 5.4% | 5.2% |
$ 24.2 | $ 24.3 | $ 23.1 | $ 21.2 | $ 21.6 | $ 10.1 | $ 10.2 | $ 10.0 | $ 9.1 | $ 9.5 |
24.6% | 28.6% | 25.8% | 24.0% | 27.5% | 14.7 % | 15.0 % | 13.8% | 14.1% | 14.1% |
(1.1) | (1.9) | (0.9) | (1.0) | (1.0) | (1.2) | (1.5) | (1.1) | (1.0) | (1.4) |
(4.0) | (4.0) | (4.1) | (4.0) | (4.1) | - | - | - | - | - |
(0.1) | (0.1) | (0.4) | (0.1) | - | - | - | (0.1) | - | - |
- | - | (0.2) | 0.1 | (0.2) | - | - | - | - | - |
$ 19.0 | $ 18.3 | $ 17.5 | $ 16.2 | $ 16.3 | $ 8.9 | $ 8.7 | $ 8.8 | $ 8.1 | $ 8.1 |
19.3% | 21.5% | 19.5% | 18.4% | 20.8% | 13.0 % | 12.8 % | 12.1% | 12.5% | 12.0% |
(continuing operations, in millions)
Revenues Gross profitGross profit margin
Stock-based compensation expense Impairment charges
Restructuring charges Production transfer costs
Non-GAAP gross profitNon-GAAP gross profit margin
Research and development expensesResearch and development expenses margin Stock-based compensation expense Intangibles amortization expense
Non-GAAP research and development expensesNon-GAAP research and development expenses margin
Selling and administrative expensesSelling and administrative expenses margin Stock-based compensation expense Intangibles amortization expense Acquisition-related costs
Non-GAAP selling and administrative expensesNon-GAAP selling and administrative expenses margin
Operating expensesOperating expenses margin
Stock-based compensation expense Intangibles amortization expense Restructuring charges
Acquisition-related costs
Non-GAAP operating expensesNon-GAAP operating expenses margin
10
H I S T O R I C A L S E G M E N T D A T A
PRECISION DEVICES | MEDTECH & SPECIALTY AUDIO | ||||||||
Quarter Ended | Quarter Ended | ||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | March 31, | December 31, | September 30, | June 30, |
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2026 | 2025 | 2025 | 2025 |
$ 98.3 | $ 85.1 | $ 89.7 | $ 88.2 | $ 78.5 | $ 68.5 | $ 68.0 | $ 72.5 | $ 64.7 | $ 67.4 |
$ 14.0 | $ 7.6 | $ 11.9 | $ 14.5 | $ 8.4 | $ 26.2 | $ 26.0 | $ 27.4 | $ 25.0 | $ 20.9 |
0.1 | - | - | 0.2 | 0.2 | (0.1) | - | - | - | (0.1) |
$ 13.9 | $ 7.6 | $ 11.9 | $ 14.3 | $ 8.2 | $ 26.3 | $ 26.0 | $ 27.4 | $ 25.0 | $ 21.0 |
14.1% | 8.9% | 13.3% | 16.2% | 10.4% | 38.4 % | 38.2 % | 37.8% | 38.6% | 31.2% |
1.4 | 2.2 | 1.1 | 1.1 | 1.2 | 1.3 | 1.7 | 1.3 | 1.2 | 1.5 |
4.0 | 4.0 | 4.1 | 4.0 | 4.1 | - | - | - | - | - |
- | - | - | - | - | - | - | - | - | 3.6 |
0.2 | 0.4 | 0.5 | 0.3 | - | - | - | 0.1 | - | - |
0.8 | 0.9 | 0.7 | 0.6 | 0.2 | - | - | - | - | - |
- | - | 0.2 | (0.1) | 0.2 | - | - | - | - | - |
$ 20.3 | $ 15.1 | $ 18.5 | $ 20.2 | $ 13.9 | $ 27.6 | $ 27.7 | $ 28.8 | $ 26.2 | $ 26.1 |
20.7% | 17.7% | 20.6% | 22.9% | 17.7% | 40.3 % | 40.7 % | 39.7% | 40.5% | 38.7% |
$ 14.0 | $ 7.6 | $ 11.9 | $ 14.5 | $ 8.4 | $ 26.2 | $ 26.0 | $ 27.4 | $ 25.0 | $ 20.9 |
0.1 | - | - | 0.2 | 0.2 | (0.1) | - | - | - | (0.1) |
$ 13.9 | $ 7.6 | $ 11.9 | $ 14.3 | $ 8.2 | $ 26.3 | $ 26.0 | $ 27.4 | $ 25.0 | $ 21.0 |
6.4 | 7.5 | 6.6 | 5.9 | 5.7 | 1.3 | 1.7 | 1.4 | 1.2 | 5.1 |
3.2 | 2.6 | 2.5 | 2.5 | 2.4 | 2.1 | 2.2 | 2.1 | 2.1 | 2.2 |
$ 23.5 | $ 17.7 | $ 21.0 | $ 22.7 | $ 16.3 | $ 29.7 | $ 29.9 | $ 30.9 | $ 28.3 | $ 28.3 |
23.9% | 20.8% | 23.4% | 25.7% | 20.8% | 43.4 % | 44.0 % | 42.6% | 43.7% | 42.0% |
(continuing operations, in millions)
Revenues Operating earnings Other expense (income), net Earnings before interest and income taxesEarnings before interest and income taxes margin Stock-based compensation expense Intangibles amortization expense Impairment charges
Restructuring charges Production transfer costs Acquisition-related costs
Adjusted earnings before interest and income taxesAdjusted earnings before interest and income taxes margin
Operating earnings Other expense (income), net Earnings before interest and income taxes Non-GAAP reconciling adjustments Depreciation expense Adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA")Adjusted EBITDA margin
11
R E C O N C I L I A T I O N O F N E T E A R N I N G S T O A D J U S T E D E B I T D A
Quarter Ended
(continuing operations, in millions) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | Trailing 12-months | ||||
Net earnings | $ 18.4 $ | 11.3 | $ 25.5 | $ 18.0 | $ 73.2 | ||||
Interest expense, net | 1.7 | 1.5 | 1.8 | 2.3 | 7.3 | ||||
Provision for (benefit from) income taxes | 4.2 | (0.3) | 4.1 | 4.3 | 12.3 | ||||
Earnings before interest and income taxes | 24.3 | 12.5 | 31.4 | 24.6 | 92.8 | ||||
Stock-based compensation expense | 6.2 | 10.4 | 6.0 | 5.9 | 28.5 | ||||
Intangibles amortization expense | 4.0 | 4.0 | 4.1 | 4.0 | 16.1 | ||||
Restructuring charges | 0.2 | 0.2 | 0.6 | 0.3 | 1.3 | ||||
Production transfer costs | 0.8 | 0.9 | 0.7 | 0.6 | 3.0 | ||||
Acquisition-related costs | - | - | 0.2 | (0.1) | 0.1 | ||||
Transition services credit | (0.3) | (0.5) | (0.3) | (0.5) | (1.6) | ||||
Dividend income | - | - | (6.2) | - | (6.2) | ||||
Other | 0.9 | 2.6 | (0.3) | (0.3) | 2.9 | ||||
Non-GAAP reconciling adjustments | 11.8 | 17.6 | 4.8 | 9.9 | 44.1 | ||||
Depreciation expense | 5.7 | 5.2 | 5.1 | 5.0 | 21.0 | ||||
Adjusted earnings before interest, income taxes, depreciation, and amortization ("Adjusted EBITDA") | $ | 41.8 $ | 35.3 | $ | 41.3 | $ | 39.5 | $ | 157.9 |
12
(in millions) | June 30, 2026 | |
Current maturities of long-term debt Long-term debt | $ | - 131.0 |
Total debt | 131.0 | |
Less: Cash and cash equivalents | (49.6) | |
Net debt | $ | 81.4 |
Net debt | $ | 81.4 |
Trailing 12 Month Adjusted EBITDA Net debt leverage ratio | $ | 157.9 0.5 x |
R E C O N C I L I A T I O N O F N E T D E B T
13
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