Corporate and other The following table presents corporate and other results (in millions):
Year Ended December 31,
2025
2024
Change
% Change
Net sales
$
104.3 $
100.0 $
4.3
4.3%
Cost of sales Gross income
111.5
98.1
13.4
13.7%
(7.2)
1.9
(9.1)
-478.9% -9.4% -27.9% -89.0% -22.9%
Selling, general and administrative Amortization of purchased intangibles
171.4
189.2
(17.8)
3.1 5.7
4.3
(1.2)
Intangible asset impairments
51.6
(45.9)
Operating loss
$
(187.4) $
(243.2) $
55.8
Net operating costs for corporate and other decreased primarily due to lower intangible asset impairments ($46 million) at the Company's Pratt Miller business unit and lower incentive compensation accruals ($17 million). 2024 COMPARED WITH 2023 The comparison of the year ended December 31, 2024 results with the year ended December 31, 2023 results can be found in the “Management’s Discussion and Analysis” section in the Company’s 2024 Annual Report on Form 10-K. LIQUIDITY AND CAPITAL RESOURCES The Company generates significant capital resources from operating activities, which is the expected primary source of funding for the Company. The Company expects cash flow from operations to be between $750 million and $850 million in 2026. In addition to cash generated from operations, the Company had other sources of liquidity available at December 31, 2025, including $479.8 million of cash and cash equivalents and $1.51 billion of unused available capacity under the Revolving Credit Facility (as defined in “Liquidity”). Borrowings under the Revolving Credit Facility could, as discussed below, be limited by a financial covenant contained in the Credit Agreement (as defined in “Liquidity”). The Company was in compliance as of December 31, 2025 and expects to remain in compliance with the financial covenants contained in the Credit Agreement. The Company continues to actively monitor its liquidity position and working capital needs and prioritizes capital expenditures related to capacity and strategic investments. The Company remains in a stable overall capital resources and liquidity position that the Company believes is adequate to meet its projected needs. In March 2025, to provide additional liquidity, the Company entered into a credit agreement with various lenders to borrow funds under a $500 million unsecured term loan, which matures in March 2027. The Company used the proceeds from the term loan to repay a portion of the borrowings that were outstanding under the Revolving Credit Facility. Financial Condition at December 31, 2025 The Company’s cash and cash equivalents and capitalization were as follows (in millions): December 31, 2025 2024 Cash and cash equivalents $ 479.8 $ 204.9 Total debt 1,100.9 961.8 Total shareholders’ equity 4,530.5 4,152.1 Total capitalization (debt plus equity) 5,631.4 5,113.9 Debt to total capitalization 19.5% 18.8% The Company’s ratio of debt to total capitalization of 19.5% at December 31, 2025 remained within its targeted range.
35
Made with FlippingBook Digital Proposal Creator